10 Passive Income Ideas

How can you earn money without doing anything? Sounds too good to be true, but with passive income ideas, you can make money while you sleep! Here are 10 different ways to earn passive income from your online business or side hustle.

#1: Amazon FBA

You might already know that online retail giant Amazon offers a program called Fulfillment by Amazon, or FBA. Essentially, as an FBA seller, you store your inventory in Amazon’s fulfillment centers and pay them a per-item fee to maintain and ship your products when orders come in.

This alone can cost you more than it makes sense to deal with in terms of overhead, but luckily it’s only one piece of what may be one of your best avenues for generating passive income.

#2: Dropshipping

Some of my favorite passive income ideas are based on dropshipping

Dropshipping is basically when you sell items online that a manufacturer or wholesaler has already created and shipped. For example, I recently started selling pet supplies to pet owners and it’s been so easy!

You simply find your suppliers, create a listing (there are many different marketplaces where you can do so), sell the product, and then take your profit once they’ve ordered it.

Poshmark allows me to sell those products through their site, link them directly to my Facebook page or Instagram account and when someone purchases one it’s automatically delivered to their door. I don’t have to touch any products myself.

#3: Affiliate Marketing

Affiliate marketing is a great way to create a passive income because you only have to sell one product or service. This is the one I have been doing the longest with the most success.

As long as you can effectively promote your company through online sales and social media, then you should be able to generate enough leads and sales every month.

You must use a marketing funnel to help guide your visitors from becoming sales leads, all of them in different stages of an AIDA (Attention-Interest-Desire-Action) Funnel.

Make sure that it is really easy for your leads to purchase your product or service by using affiliate links and pay-per-click advertising. You want as many people as possible to visit your website because more page views mean more ad revenue.

#4: Freelancing on Upwork

If you have a skill that’s in demand, freelancing is an excellent way to make money online. Sites like Upwork and Fiverr connect businesses and independent contractors all over the world.

This makes it possible to find work doing everything from marketing, design, and web development to writing, translation, and more. Compensation on these sites can be fairly low, but if you’re looking for a little extra money on your journey toward financial independence it’s not such a bad option.

#5: CPA Networks

One of my favorite ways to earn passive income online is with CPA networks. These are basically just networks that facilitate multi-party transactions between advertisers and affiliates. I personally use MaxBounty.

Advertisers pay affiliates directly to get referrals, so a great way to make money as an affiliate is to sign up for as many CPA networks as possible. Once you’ve got a solid base of advertisers you like working with, you can provide them with additional services (like link building) for a fee.

#6: Investing in Cryptocurrencies

Investing in cryptocurrencies can be a lucrative way to grow your passive income stream. There are many different strategies to make money investing in crypto.

Investing in cryptocurrencies

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The first step is choosing which coins you will invest in. Once you have narrowed down your choices and chosen which coin(s) you want to invest in, it’s time to find an exchange where you will be able to purchase them.

You may choose whichever exchange fits your preferences best; for example, if privacy is important, look for an exchange that does not require identification when purchasing cryptocurrency with fiat currency.

#7: Investing in Property in Your Home Country

Investing in a second home abroad is an increasingly popular way for US citizens to make money from their real estate, and there are plenty of ways to do it.

It’s important to keep in mind that you can’t just buy a place across town or a condo down the street. You have to make sure you understand all local laws, rules, and regulations before investing.

#8: Getting Paid to Test Products

Paid product testing is an easy way to make money online. If you’re willing to give products a try and tell people what you think, thousands of websites will pay for your opinion.

Websites like InboxDollars, TestSwag, and ProductTestingPanel offer product testing opportunities to consumers around the world.

Work one at a time or sign up for all three! As a member of each site, you’ll be sent products regularly to test out and keep. Your mission is to provide honest feedback about your experiences using any products that are assigned to you.

For each product review that you complete, which could be as simple as answering some questions about how something works or performing a certain task, you get paid!

#9: Teaching Online Courses on Skillshare or Udemy

This has become more popular since the start of the pandemic. If you have expertise in a specific area, such as web design or social media marketing, there are hundreds of thousands of people willing to pay for your guidance.

Teaching online courses

Photo by Chris Montgomery on Unsplash

Skillshare and Udemy are two sites that will connect you with enthusiasts who want more out of life and are willing to pay for it.

Do a quick search on either site and you’ll find dozens of classes on any given topic. The best part? You set your own price. Once you build up an audience, through successful courses and smart marketing, you can make some extra money in no time at all.

#10: Monetizing a Niche Website

If you’re a writer or blogger, you can monetize your work by promoting affiliate offers. No matter what niche you’re in, there are probably affiliate programs related to it.

I personally make money from my blogs from AdSense and affiliate offers from Clickbabk, JvZoo and WarriorPlus.

You simply become an affiliate for products and services related to your content. Then, whenever someone buys something through one of your links, whether it’s an Amazon product or a pair of shoes from Zappos, you earn a small commission.