Best Passive Income Ideas That Can Help You Earn Money And Build Real Wealth

Have you heard of the so-called “4-hour Work Week” and how it’s possible to be free from work by simply thinking outside the box? Well, I’m here to tell you that it is possible. In this article, I am going to show you some of the best ways to create passive income that will allow you to work at your own pace and be your own boss!

I’m sure you have already heard of the term ‘passive income’ – it’s a popular buzzword in the financial world these days. But what does it mean exactly?

What Is Passive Income?

Passive income is any recurring source of income that requires very little maintenance and attention on your part to achieve. That means you can set your business up, get it running, and then focus on other aspects of your life while the money keeps flowing into your bank account.

If your goal for starting a business was to get rich quick then you may be disappointed; but if you want the freedom and flexibility to do what you want and when you want, then following passive income streams may be for you. But before that let’s quickly look at the main differences between an active income and passive income.

Active Income Vs Passive Income – What’s The Difference?

It’s a question that’s been asked time and time again. Some people believe that the only way to earn money is to go out and get a job, some people think that their money can grow on trees. The truth is somewhere in the middle. Here are some of the fundamental differences between active income and passive income.

One of the main differences between active income and passive income is that active income is money you earn from doing work, like a salary or wages. Passive income is money that you earn while you’re not working.

If you want to earn active income, you have to put in the time and effort which needs to be consistent. But in case of passive income, you only need to work when setting the system up. Once that’s done, you can relax the fruits of your labor over and over again.

Another important difference between active and passive income is that with passive income, you have to put in a lot of work upfront to make it work, and you usually have to wait to get paid. With active income, you can get paid for the work you do upfront, and the money you make comes in a steady flow over time.

Which One Is Actually Better?

There is no definite answer here.

Passive income is highly desirable because it requires very little maintenance and it can provide you with a substantial income if you have a large enough audience.

However, it’s far more difficult to attain than active income. There are a lot of options for you when it comes to active income. You can simply get a job. Also, getting paid is easier than passive methods.

However, we are only going to focus on different passive income ideas here, for the benefit of people who are just getting started. The discussion about active income methods can be continued some other day.

passive income ideas

Best Passive Income Ideas for Beginners

The amount of money you make from passive income streams is directly related to the amount of work you put in initially. The more passive income streams you have, the more money you can make.


Blogging is our most favourite passive income idea. You can set it up once and then let it run and collect money while you work on other projects. We have many blogs in different niches that earn us money through advertising, especially from Google AdSense and affiliate marketing. We try to put out new content on these blogs at least once a week.

If you are not aware of this already, a blog is one of the most powerful tools you can use to build an audience online. It’s a powerful way to build a community, tell stories, educate, and convert people into customers.

A lot of bloggers make money by selling advertising space on their blogs and monetizing their audience. But, as a starting point, you can simply monetize your blog through affiliate marketing. You can read this article if you want to learn more about earning passive income from blogging.

Real Estate

Investing in real estate is a great way to build passive income. By investing in real estate, you can build wealth over time and have it work for you. But please remember that it’s a long-term investment, which means it’s a slow burn. It’s not something that’s going to get you rich quick.

You can make passive income from real estate by buying a property and renting it out. The rent you get from tenants will cover your monthly mortgage payments, and you’ll get your money back when the tenant moves out.

You can also do fix and flips. Fix and flips are when you purchase a property that needs to be renovated and then sell it for more than you paid for it. You can also invest in REITs, or Real Estate Investment Trusts, which are companies that hold large portfolios of properties.

Dividend Paying Stocks

Dividend-paying stocks are a great way to create passive income. Most people don’t like stocks because they’re afraid of the risk, but by concentrating on dividend-paying stocks, you’re able to get a regular stream of passive income from the stock market.

Dividend paying stocks are shares of companies that pay out a portion of their profits to shareholders. When looking at dividend paying stocks, you should look at the company’s fundamentals and make sure that the company is financially healthy before investing.

But please remember that if you’re looking for quick passive income from dividend stocks to replace your job, you’re probably going to be disappointed. The truth is that most dividend stocks will only provide a small amount of income.

Having said that, I also want you to know that it is possible to become rich with dividend paying stocks. In fact, it is possible to become rich with any investment. The trick is to make sure you have a long term investment strategy and that you choose the right stocks.

Choose stocks that are in strong industries and have a long history of paying dividends. The phrase ‘long term’ is the key here.

Warren Buffet is a great example of this. He says he’ll only invest in companies that can pay an annual dividend of at least 2%. He’s a great example of someone who has become very wealthy by investing in dividend paying stocks.

Affiliate Marketing

If you have an audience of people that trust you and like what you do, that means you have a built-in audience that will consume the information that you promote. If that’s the case, affiliate marketing is a great way to earn passive income because you can promote products and services from other companies through your own site or social media channels.

I am sure you already know what affiliate marketing is. For those of you who haven’t heard about affiliate marketing, it is the practice of earning a commission by referring customers to a seller’s website. The person who owns the product often called the merchant pays a certain percentage of the sale for every person who bought the product based on the affiliate marketer’s recommendation.

Affiliates market these websites to their audiences by sharing links on social media, blogs, and through email. If you have a popular blog, you can earn income by placing affiliate links in your articles.

There are lots of options out there when it comes to affiliate marketing. It’s important to find a niche that you’re really passionate about so that you can market products to people who will really benefit from them.

Can you earn a life-changing income with affiliate marketing?

The short answer is yes, you can earn a life changing income with affiliate marketing. The longer answer is “yes, but…”. It’s not easy and it’s not for everyone. You’ll have to be willing to learn new skills, tackle new challenges and work hard for it.

If you work hard, set goals for yourself, and be consistent, you can definitely earn good income with affiliate marketing.

Peer-to-peer lending

In simple words, Peer to peer lending can be described as the practice of lending money to individuals or businesses through an online service that matches lenders directly with borrowers.

The term “peer-to-peer” describes the structure of the lending process, where personal loans and mortgages are funded by individual lenders, as opposed to a traditional financial institution.

Peer-to-peer lending can be a great way of earning passive income. It’s also a good way of funding small businesses. It’s not a get rich quick scheme so you need to take a long term view. You can invest in a diversified portfolio of loans and earn more interest than if you put your money in a traditional savings account.

dividend stock passive income

Cash Back Websites

Cashback websites are a great platform for passive income. They work by paying you a percentage of the amount of money your referrals spend on their credit cards. There are many cashback websites out there including Ebates, TopCashBack and Mr Rebates.

If you’re looking to make money through online shopping, cash back websites are a great way to do it. By signing up for cash back websites, you can earn cash back on your online shopping purchases. In a lot of cases, you can get a percentage of your purchase back in cash.

Here’s how they work.

Let’s take the example of Ebates.Ebates is a website and a browser extension that lets you earn cash back on purchases you make online.

For instance, if you shop at Amazon, you can go to Ebates and search for the store you want to shop at, then click on the link that Ebates gives you to go to that store. Whenever you make a purchase you are entitled for a cash back.

Ebates will give you a percentage back on the money you spend on the internet. For example, if you spend $100 at a retailer, Ebates may give you $5 back in the form of a gift certificate.

Selling Online Courses

Selling online courses is another popular passive income idea at present.

If you have a lot of knowledge about a particular subject, you can build an online course that teaches people about your area of expertise. You can sell that course on platforms like Skillshare, Udemy, and Teachable and earn money.

When it comes to selling an online course, there are three things that you should consider: the product, the audience, and the sales page. The product is obviously the course. The audience is the people that you’re selling the course to and then there is the sales page.

Here are some things to keep in mind if you want to successfully sell your online course and earn passive income from it.

  • Be specific and clear about what you’re offering.
  • Use copy that’s geared towards your target audience.
  • Show people what your course is going to help them achieve.
  • Offer a free taster to anyone who’s interested in your course.
  • Offer multiple payment options.
  • Make sure your course is easy to navigate, especially if you’re planning to create a series of courses. You don’t want to overwhelm people with information.

Renting Your Car

The automotive industry is in a bit of a slump, but the good news is that there are still opportunities to make money. If you have extra space available and a car that isn’t being driven, you can rent it to people who need it.

You can earn some extra cash by renting it out on platforms such as Turo or GetAround, which allows people to rent your car when it’s not in use. Turo (formerly RelayRides) is a peer-to-peer car sharing marketplace that turns your car into a money-making machine.

You can make anywhere from $200 a month to over $5,000 a month depending on the type of car you have. You’ll earn 60% – 85% of the trip price, depending on the vehicle protection plan you choose. Please remember that you are going to need your own vehicle insurance.

Turo takes financial responsibility for potential damage to your vehicle during a trip. It also handles all the other expenses, including operational costs to run the platform, as well as marketing and advertising costs to help drive demand and promote hosts’ cars.


For many people, the dream of passive income is to be able to make money without having to actually work, and drop shipping allows you to do just that. The idea is that you set up a store that sells a product, but you don’t actually keep any of that product.


Here’s how drop shipping works.

“Drop shipping” is a retail fulfilment method where the retailer does not keep products in stock but instead transfers customer orders and shipment information to either the manufacturer, another retailer, or a wholesaler, who then ships the product directly to the customer.

Here’s one such wholesaler.

Drop shipping is a great way to test the market and see if there’s a demand for your product before you invest time and money.

Although Drop shipping is a great passive income idea there are certain drawbacks which you will need to overcome.

One of the biggest disadvantages of dropshipping is the fact that you’ll be shipping products that you haven’t seen or touched. Since you won’t be able to touch or feel the products before they’re shipped out, it can be hard to guarantee that the products are of good quality.

drop shipping

Selling eBooks can be a Great Passive Income Idea

E-books are a great way to earn passive income. The key is to find a topic that people are interested in and then put together an e-book and sell it on platforms like Amazon. The great thing about e-books is that once you create them, you can sell them over and over again even if you stop working on them.

You can put the eBook up for sale on Amazon Kindle, Barnes & Noble Nook, Apple iBookstore and dozens of other eBook stores. The cool thing about eBooks is that there are always people who are interested in what you have to say.

There are a number of software programs that allow you to easily create e-books. Some of the more popular applications include Microsoft Word, Apple Pages, Adobe InDesign and Adobe Acrobat, to name a few.

Here’s a popular eBook creator we recommend for beginners.

Stock Photos

If you have a good eye for photography, why not try your hand at selling stock photos? You can make money by selling images of people, landscapes, or anything else you can think of.

You can sell your images on sites like Shutterstock and iStockPhoto and get anywhere from 50 cents to several hundred dollars per image (rates may vary). The more unique, high quality photos you have, the more money you’ll make selling them.

When you’re selling stock photos, it’s important to connect with the right people. You’ll want to identify the websites and publishers who are looking for the kind of photos you’re selling.

The rule of thumb in this line of work is that the more photos you have in your portfolio, the better.

The reason for this is that when a customer is looking for a photographer, they’re going to look for someone with a large body of work.

Also, stock photography can be a great way to build your portfolio to show off to future employers.

Creating Apps

If you’re still not satisfied with our list and looking for more passive income ideas, consider making mobile apps. It’s a great way to make money without having to chase down clients to pay you. Many people create apps as a hobby, and then people find out about the app and start to pay for it.

You can create your own apps and sell them on the app store. You can also create apps for other companies and sell them.

apps passive income idea

If you have the ability to create an app and you have an idea for a really great one, there’s a good chance that it will be accepted by the Apple or Google app stores. If it gets accepted, then you’ll be able to make money off of advertising, in-app purchases or subscriptions.

The best way to build an app is to start with a plan, even if it’s just a simple outline of what you hope to accomplish. That way you’ll have a much better idea of what you need to do in terms of writing code, designing your app, and launching it.

If you have an idea for an app, but don’t know anything about coding there are a few different ways you can make it happen. One way is to hire a developer to code it, but this can get expensive.

The second way is to find an app building platform.

You can use tools like Appy Pie, which lets you build an app in hours, not months. There is also AppSheet which is a simple, no-code platform for creating apps. AppSheet also makes it easy to create forms, surveys, quizzes, calculators, and more.

Advertising On Your Car

If you have a car and want to earn some passive income, you can make some money by advertising on your car. There are companies that will pay you to drive around with advertisements on your bumper, for example.

If you have an old car that you don’t use anymore, you can turn it into a mobile billboard by getting an ad company to stick a vinyl wrap on the side. Another way to do this is to paint your car with an advertisement, like a McDonald’s ad or a huge Nike logo.


We have a lot more passive income ideas than the ones mentioned above. But we advise you to stick to one or two passive income methods when just getting started. Doing too much can lead to you spreading yourself too thin and being a jack or jill of all trades, but master of none.

Passive income is great because it gives you money coming in while you’re doing other things. If you’ve got the right kind of passive income, it can really help you accelerate your financial goals.

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