How To Make Passive Income

Passive Income for Beginners


How To Make Passive Income

Nothing’s better than knowing that you’ll wake up every day with an influx of cash entering your bank account without doing that much work. This might sound “too good to be true” for some people. And it is, if you’re not willing to put in the work to create these income streams. 

But if you are determined and hard-working, you can create passive income that will deliver money to you for a long time coming. Before reading further, you may want to check out this article first to familiarize yourself with the ins and outs of passive income. 

Here are some of the best ways to create passive income:

1. Dividend Investing

Whenever you invest your money through a fund or a company directly, there is a possibility that you will receive dividends. Dividends refer to an amount of money distributed to stockholders each quarter generated from a portion of a company’s profit. This is a way for the company to reward the loyalty of a shareholder. 

According to Brett Owens, Forbes contributor, dividend investors have the potential to earn an annual return between 15% to 25%. Start by looking for dividend producing stocks and making those the central focus of your investment portfolio.  

You may check out Merrill or TD Ameritrade if you want to open your own brokerage account. These two are the ones perfect for beginners. 

2. Real Estate Investing

Real Estate Investing For Beginners: A Review

Real Estate Investment Trust or REIT is a company that produces income from real estate businesses. Basically, it’s a mutual fund for real estate investing. All you have to do is to invest in real estate by buying stocks the same way you put your money in other industries. This is a perfect way to invest in real estate without undergoing the stress and hassle of owning a property. 

Check out this article for a beginner’s guide in rental real estate investing.

3. Rent Your Property

If you are not that into investing your money on the money market, then why not make the most out of your properties? For example, you may start by renting out your extra bedroom at your home. It might be a little weird having a visitor at your house regularly. However, you really have to sacrifice that tinge of privacy to be able to earn a few extra hundred bucks per month. 

Once you have mastered the art of renting, you may try upgrading your services. If you have a land, no matter how small it is, you may opt to rent out that space. Just make sure that you do not violate any code or law in your city.

4. Peer-to-Peer Lending

Peer-to-peer lending

Peer-to-peer lending refers to a situation where an individual loans money to other people who do not qualify for traditional financing. The best strategy here is to look for a company that has a decent return and a lower risk option. 

Check out Worthy since they offer a $10 bond with a 5$ return. What makes them stand out is that your money is liquid. They allow you to take out your money anytime, anywhere. 

Start Earning At Worthy

5. Affiliate Marketing

Affiliate Marketing is becoming more and more rampant because of the rise of the digital world. This passive income idea requires you to have a social media platform or website where you promote other companies or “affiliates.” You get paid whenever one of your visitors uses your affiliate link to sign up for a service or purchase a product. 

Take note that you don’t have to start a blog necessarily! Other avenues to do this include podcasts, Facebook, and Youtube. 

Affiliate Marketing by Kevin Ulaner is a great starter book for beginners who want to enter the world of affiliate marketing.

Affiliate Marketing

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6. Create An Online Course

Online courses

If you are a professional of a particular topic or you’re familiar with some how-to’s, then you can create a guide or course for it. Some websites can promote and sell your guide as an ebook. 

Making a course has an entirely different approach, however. You have to take a video of yourself, edit it to make it more effective, and upload on a host website — some places where you can turn to include Udemy and Teachable. Once users buy your course, you will get a commission out of it. 

Start An Online Course Now

7. Rent Your Car

Renting out your other car (or if you don’t use your car that much) can also be a source of passive income. GetAround and Turo are only some of the biggest names in this kind of service. Take note, however, that you also have to take into consideration the additional repair bills that come with it. It will be a higher amount because your car will wear more because of its more frequent use. 

Rent Your Car Now

8. Use Display Ads

Do you know that you can make approximately $1000 per month passively just by using display ads? Think of it as billboards. These are the promotions that you find on the sides of the websites. If you have a blog, you can ask advertisers to pay you so you can promote their products and services there. 

To know more about how this initiative works, read Display Advertising: An Hour A Day by David Booth.

Display Advertising: An Hour a Day

Buy a copy now from AMAZON.COM


9. Set Up An E-Commerce Business

online shopping cart

Believe it or not, you may also sell some things you don’t use anymore. One platform that will enable you to build an online store easily is Shopify. All you have to do is sign up on their website and choose a ready-made template that fits your theme.

They also provide you with unique tools. These include creating promotional materials, handle returns, process payments, and promoting your store in social media.  If you don’t want the hassle of having to pick, pack and ship your products, look at Amazon FBA as an option or even dropshipping.  

Create Your Online Store Now

10. Product Referrals

If you have countless friends who believe you, then you can maximize this by joining referral programs. Start this initiative by signing up in a product referral company such as Once you have your account set up, you can now get a link that you can send out to your social media followers and friends. You will receive your commission if they use this on their purchase. 

11. Write A Book

It will take a lot of time, effort, and hard work to create a book. Once you have finished it, however, your money will start coming in – with an effective promotion plan, of course. Most companies give out a minimum of 10% royalty for every book they sell. This will go on and on as long as someone buys your creation. 

Check out Book Marketing is Dead by Derek Murphy if you want to know the best promotion secrets before publishing your book. 

Book Marketing is Dead

Buy a copy now from AMAZON.COM


12. YouTube Ads

YouTube on laptop

If you make your content on YouTube, why not add some flavor into it by posting ads for additional revenue? Check out this article, so you’ll see the nitty-gritty part on how to earn extra cash. 

13. Produce An Audiobook

Making your own audiobook is almost the same as creating an ebook. The only difference between these two is that you will be recording the piece and uploading it on a platform. Don’t worry. You don’t need to have specialized equipment to push through with this. You can outsource it to another individual like Guru and Upwork. AudioBook Creation Exchange also enables you to create and sell your audiobook. 

Visit AudioBook Creation Exchange

14. Invest In A Vending Machine Business

vending machine

A lot of people won’t be able to think of this initiative. However, a vending machine business can be a great source of passive income, given that you install it in the right places. To avoid the hassle, you may also hire another person to stock the machines for you. 

15. Online Eating Apps

Believe it or not, you can get paid by just going out to eat. Seated is an online application where you can book a restaurant for reservations. Once you complete a visit using that same reservation, you will receive a gift code worth $20 to $50 from Starbucks, Uber, or Amazon! 

Download Seated Now

16. License Your Photos

One of the easiest ways to gain money is to license your picture. All you have to do is take your best shots using a camera, upload it in a photography site, and get paid for royalty. You will be able to get the royalty money every time a client downloads your photograph. Shutterstock is an example of a website you can turn to. 

If you want to turn this into a serious income stream, you may read the Digital Photography Complete Course by DK. The book will teach you everything you need to know about the field in 20 weeks. 

Digital Photography Complete Course

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17. Rent A Storage Facility

storage facility

A lot of people have a lot of unused things in their houses. What most look for is a storage space where they can place all of this stuff they have no use for but often renting out a unit for $100 per month doesn’t make sense.

You could rent a unit that can be shared across multiple customers. As the owner, it won’t take too much of your time to set this up since there’s little to no maintenance. Think of it as a rental property, as well. 

18. Create A Mobile Application

If you love games and are a bit techie, then you can maximize this skill by creating a mobile application. You also have the option to improve an existing app instead of producing one from scratch. Every time a user downloads your app, you will be getting a commission from the online store. 

Check out App Secrets: How To Create A Million Dollar App by Sean Casto to learn more about how to develop your own. 

APP SECRETS: How To Create A Million Dollar App

Buy a copy now from AMAZON.COM


19. Invest In High-Yield Savings Accounts

Investing in savings accounts is the most boring yet safest strategy in the list. If you have extra money, you can just let it sleep in a bank and earn 2 percent per year on average. Take note that different banks have their own rates. Therefore, make sure to scout first the banks around you to be able to choose the one with the highest yield.

20. Sell Your Designs


If you are an artsy and creative person, then you may opt to sell your designs. These art materials will be used by customers to create various kinds of printed merchandise. One platform you can use for this initiative is Redbubble. Check out this article to know you can earn money on the said website.

21. Buy A Blog

Some people do not have enough patience to set up their own blogs. Do not worry if you are one of them. You can still make money by buying an existing website or blog that is already earning money from affiliate marketing. Make sure that you purchase one that has at least 10,000 visits per month and is at least a year old.

If you’re unsure how to buy a business or a blog, try using a buyer broker such as Madx Capital.

22. Rent Your Car For Advertisement Space

Various companies pay for people to place ads on their car windows. The catch is, these individuals have to achieve a certain distance to ensure that these promotional materials will have a broad reach. Visit Wrapify to check how you can earn some money by wrapping your car with a promotional ad. 

Visit Wrapify Now

23. Flip Domain Names

Remember, domain names cannot be replicated. If a particular user wants to register a domain name, but it has already been taken, their recourse is to approach the owner to discuss its purchase. The best strategy here is to think about what name will be trendy in the next years and buy it. Once your forecast happens, you may now be able to sell it at a higher price. 

Check out The Domain Game by David Kesmodel to see how other people got rich from this practice. 

The Domain Game

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24. Buy An Existing Online Business

The perk of owning an online business is that you have the freedom to run it anywhere. However, creating one from scratch might be too much of a hassle for anyone. What other people do to make their lives easier is to buy an existing online business that is already earning a decent amount of money. 

Websites like Biz Buy Sell list hundreds of online businesses you can purchase. Make sure to buy one that is in line with your hobbies or passion. 

Visit Biz Buy Sell

25. Set Up A Car Wash Business

car wash

Believe it or not, a car wash is considered a cash flow machine in the business world. All you have to do is buy the equipment, hire a couple of employees to manage the day-to-day operations, and wait for the cars to come to you. This type of business does not require a lot of maintenance work, as well. 

26. Rent Your Stuff

Hundreds of people in your neighborhood are looking for a variety of items every single day. If you are a hoarder of random stuff, then you can enter this business scenery. You can rent out products such as the following: 

  • Snowmobiles
  • Books
  • Tables and chairs
  • Utility trailers
  • Extension ladders
  • Bags
  • Sports equipment

Advertise Your Items For Rent In Craigslist Now

27. Credit Card Rewards

Credit card and bill in the pocket

Some people might not consider credit card rewards as a source of passive income. If you think about it, however, is that you earn more money from spending money that you usually do. You may also take advantage of sign-up bonuses by banks for new credit cards. Overall, you will have a 20 to 40 percent cash back once you do so. 

28. Earn Royalties From Videos

You don’t only earn royalties from photographs, books, and music. Video content creators, like digital advertisers and filmmakers, can also join the pack. Every time a particular agency uses one of your video footage, you will be receiving a commission for lending it. Pond5 is the best platform for beginners. 

Avail The Services Of Pond5

29. Invest In Growing E-Commerce Companies

A lot of investors hesitate to put their money into e-commerce companies. The primary reason why they do not engage in this kind of business is that the industry is still immature and the growth and profitability of these businesses is not guaranteed. The industry is still going through a lot of consolidation and it makes many investors nervous. 

However, because of this uncertainty there are profits to be made and it can be a great way to diversify your portfolio. To draft your strategy, you may read How To Invest in E-Commerce Stocks by Bill Burnham. 

How to Invest in E-Commerce Stocks

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30. Certificates Of Deposit

Just like opening a savings account, Certificates of Deposit (CDs) are also a safe way to grow your money. You start by buying a CD for a fixed term – usually lasts for 1 to 5 years – and earn a fixed interest rate per year, depending on your deposited amount. The average rate you can make from these companies lie around 2.25%. As a starter, you may first try the services of Capital One before exploring the offerings by other banks. 

Start Your CDs Now

31. Invest In Veteran-Run Businesses

Investing in a veteran-run business through StreetShares allows you to support veteran-run enterprises while assured of getting a fixed 5% return. It’s almost the same as putting your money in bonds. This particular product is referred to as the Veteran Business Bond. As an investor, your primary task is to put out a $25 minimum contribution to be able to get the said return. 

You can access your profit and base money anytime for a 1 percent fee. However, the organization will waive the cost if you reach a year of investment. 

Visit StreetShares Now

32. Create An Email Course

Businessman pointing an email icon

An email course is almost the same as building your Udemy class. The goal of this initiative is to come up with your own email lectures that you are most credible in. Once you have created these streaks of emails, then you can now upload it in Highbrow, where you will be paid a certain amount of money every time a user signs up for your class. You may even use this strategy to promote some of your websites and blogs. 

Create An Email Course Now

33. Voice Over Royalties

If you have a pleasant and soothing voice, you can use this to become an audiobook narrator. Your role is to find a producer that will be in charge of drafting the script and editing the audiobook, and you will be paid to read the lines. Just like in other royalty products, you will get paid every time a customer buys the said audiobook. 

If you want to explore this field more, you may check out Krystal Wascher’s book called Audiobook Narration: A Beginner’s Guide to Recording Audiobooks In Audacity. 

Audiobook Narration

Buy a copy now from AMAZON.COM


34. License A Product Idea

Are you creative enough to come up with business ideas but do not have the patience to implement it? Don’t worry. You can literally have your ideas pay you money, without a drop of sweat. Product licensing is a great way to earn passive income from your ideas by enabling someone else to do the work. 

For example, Nate Dallas and his brother received a $300,000 royalty from the card game Pictionary. Instead of designing and producing it, they pitched their idea to Mattel, and the company was the one who executed it. It is recommended to get your ideas patented in order to protect them from being used without compensation. 

Grab a copy of How To License Your Million Dollar Idea by Harvey Reese to know the technicalities of doing this strategy.

How to License Your Million Dollar Idea

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35. Rent Your Boat

Some individuals rent out their cars, but others rent out their boats. It is not every day that you use yours to get out on the water, right? Chances are, you are only using this whenever you have your friends and family over or if you want to relax and contemplate on the sea. 

On the days that it has no use to you, you can rent your boat to some landlocked peers. You may price it between the rates of $220 to $950 per day – depending on the size of your boat. You can fish out customers by promoting your services on your social media accounts or through the website Boatsetter. 

Rent Your Boat At Boatsetter

36. Record A Song

record a song

Do you ever find yourself come up with a song that you think is the next big thing in the music industry? If you feel that your composition will be a hit, then you can submit it in sites where musicians can license it. Customers have the option to release it on a CD or even use it as background music in commercials, websites, and apps. Visit ProductionTrax to submit your piece. 

Submit Your Composition Now

37. Join Rewards Programs

Rewards programs enable you to earn passive income with activities that you usually do every day. For example, some websites give you points just by searching the internet, taking surveys, and watching short videos. You can then transform these points into cash or gift cards. The most popular site which offers this service is Swagbucks. 

Sign Up In Swagbucks Now

38. Rent Out Your Lock Screen


An app called Slidejoy uses your phone to place ad placements on your lock screens. Advertisers get the services of the said app to be able to display different kinds of promotional materials there. It might be a little annoying for the users. However, a lot of users earn around $10 to $20 per month just by downloading the app. 

Aside from cashing out your earnings using Paypal, you also have the option to donate the money to the beneficiaries of the organization. 

Take note that Slidejoy is only available for Android users only. 

Download Slidejoy Now

39. Share Your Data Activity

Instead of manually taking surveys, some companies opt to get information about the market by studying their browsing habits. Mobilexpression pays its users for them to share the data information on their mobile phones. What they do is that it works in the background while recording your browsing activity in real-time. Participating here will enable you to earn weekly credits that can be used to redeem gift cards of popular retailers. 

Download Mobilexpression Now

40. Be An UpVoice Panelist

The goal of UpVoice is to use the data by social media users to assist top companies in making better marketing decisions. Here’s where you come in: 

  1. Sign up on the UpVoice website using your Facebook account. 
  2. Upon approval, the organization will send you a link that will directly install the UpVoice Chrome extension.
  3. As you scroll facebook, the extension will collect the list of ads that you will see upon scrolling social media sites like Facebook, YouTube, Instagram, and Amazon. You will receive daily tokens from this. 

On average, users earn $75 per month just by being an UpVoice panelist. 

Sign Up At UpVoice

41. Self-Publishing


If you want to write a book but do not wish to undergo the hassle of dealing with publishers, then why not make some effort on it? You can deviate from this traditional route and self-publish your book on Amazon. Visit the Getting Started Page of Kindle Direct Publishing to get an overview of how the system works. 

42. Rent Out Your Parking Spot

Some cities are congested; hence, there is a huge possibility that a lot of people with a car has difficulty finding a parking spot. You may utilize your unused spaces on your land to make it a parking space that other individuals can rent. Take note that many will pay a lot for safety and convenience. So, really think about how much you’re going to price your service. 

43. Buy Royalties

It is a common misconception that those who create their own music are the only ones who can receive royalties. This is not the case in reality, however. Believe it or not, you can purchase music royalties that you had no part in creating. Once you own the rights, you will receive money each time the song is played on the radio, used in marketing, or performed on stage. 

Check out Donald Passman’s All You Need to Know About The Music Business: Ninth Edition to give you an idea of how you can run this unique endeavor. 

All You Need to Know About the Music Business

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The Bottomline

Remember, passive income does not mean that you will just sit around and wait for the money to come to you. It still requires a bit of time and effort in the beginning. Once you have established your income stream, then that will be the time that you can relax and reap the benefits easily. 

If you want to learn more about how passive income works, you may check this article to know the best books in this field that you can read. You may also enroll in this Udemy course entitled Passive Income: 7 Ways to Make Passive Income Online.



C. James

C. James is the managing editor at Wealth Gang. He has a degree in finance and a passion for creating passive income streams and wealth management.