Is it possible to make money even while you are sleeping? Well, in the age of the internet, the answer is YES. It is possible to make money even when you are not working while you are busy. Spending quality time with family or friends or even when you are sleeping. Assume you are living in Asia, and most of your audience is in the United States. If most of the activity on your website and a lot of purchases happen literally while you are sleeping. Anyway, I am telling you all of this because a lot of people don't believe that passive income is even possible. And I am here sharing "Top 7 Passive Income Ideas to Make Good Money".
Now, you might be here because you just recently left your day job and your dream of working from home. Or, you still have a 9 am to 5 pm job, but you are also looking for a side hustle that can eventually become your primary source of income. Well, I am here to give some ideas on how you can make passive income online! Yes, you can be in the comfort of your own home wearing pyjamas and earning money!
What is Passive Income, how it is different from Active Income?
What you earn from your day job is called Active Income. This type of income requires you to do some kind of work or basically trade your time for money. Active income stops the moment you stop doing your work or putting your time and effort onto your job. On the other hand, Passive Income means that you are earning regular income without continually putting effort into it! With active income, you have to consistently work and sacrifice time, while passive income usually requires you to do most of the work at the beginning. You will only have to invest a significant amount of time and effort during the initial setup.
After that, it will be a breeze. Sounds like a dream, right?
I just want to make a side note here. I will not talk about any passive income idea, which requires an initial financial investment.
How can you make a $1000 a month or more in passive income?
Again, remember that if you want a consistent and efficient stream of passive income, then you have to do some high-quality work first. And because you are doing this online and the Internet never rests, you can make money even while you sleep!
So here is my Top Seven Passive Income Ideas for this year!
Top Passive Income Ideas
1. Making Youtube Videos
Have you ever noticed that almost everyone seems to be on Youtube nowadays? It's not just celebrities and game streamers like it used to be a few years back. Now it's everyone! Your mom and your grandpa, dogs and cats, your classmates… and, of course, lots of businesses starting their Youtube channels. Because... well that's where we all spend hours and hours of watch time! But did you know that if you switch the roles from a viewer to a content creator, you can make a high passive income from Youtube?
When we talk about Passive Income Ideas, Youtube is the first thing that comes in our mind. So here is how it works. With Youtube you can earn by two ways:
Youtube shows ads in your videos, and you get paid for it. How much you will get paid often depends on the NICHE you chose. The type of audience you attract to your channel. If you are targeting teenagers, for example, and a global audience, your average CPM (cost per thousand of impressions in your videos) will be lower than if you are targeting some other demographics. And you probably understand why you will get paid differently.
When the audience has a stronger purchasing power, advertisers are willing to pay more for showing ads on your videos. So, becoming a Youtuber is one of the strategies where you have to invest time and effort into creating a video. But once it's published, it will keep bringing you ad dollars for as long as you keep your video on the platform. Of course, you will have to consistently work on your channel uploading new videos if you want it to keep it growing.
Youtube Affiliate Marketing
There is another way a Youtube channel can also work for you except ads – you could have, for example, a channel with product reviews. If you become very persuasive about the benefits of some products, you can make an excellent income as an affiliate of those products. Everyone, or at least most of us are checking product review videos on Youtube before we buy anything these days.
When I talk about a blog, I don’t mean to be honest a page on Instagram or other social media. I mean an actual website with some useful content your audience might be looking for. And the content of a blog typically includes texts, photos, videos, animated GIFs, sometimes illustrations and infographics! Blogging is one sure and most effective way of earning online passive income. Even as a beginner, you can make money with display ads on your site. You can easily apply to Google Adsense or Media.net to start showing ads even if your blog is new. But when you have enough traffic, you will be able to use for higher-paying display advertising networks.
If you have reached 25,000+ monthly sessions on your blog, you can apply for MediaVine Publisher Network. These networks pays 5 or even 10 times better than Google Adsense for the same amount of traffic. The good thing about display ads is that they are always on your site. Whenever users visit your blog and see the advertisements, you make money passively!
If you are a foodie, traveler, or have any other passion on which you can write articles, then blogging is a good option for you. You can refer to my other section "Things to Consider Before Starting A Blog” for more information on blogging.
3. Online Course Sales
Online Course Sales comes third in our list of passive income ideas. If you have the expertise or broad knowledge in a particular field or subject, you can create your own online course. The trend of online education will become even stronger this year. It’s not going away because that’s the direction the world is moving to. Depending on preference, an online course can be either a video or text-based. But the trend these days is that video courses are usually sold at a higher price range. This means you can make more passive income. You can teach any topic or subject as long as you know what you are talking about. It can range from Science to Business, Fitness, Yoga, to even Arts and Crafts.
Seeing where things are going, online education will become even more in demand soon. Hence, it's a huge opportunity, and it would be a pity to miss it. Especially if you've already been teaching and training people offline. So you have the teaching skills, you have the expertise, you just need to learn a few online platforms to help you deliver your content to the customers. And well... learn how to market your courses as well.
Become a Pro with these valuable skills. Start Your Course Today. You can use platforms like Udemy and connect with over 50 Million People who are learning Online at Udemy! There are many more such platforms where you can start.
4. Affiliate Marketing
If you have a website, then you might want to try it. Simply put, affiliate marketing is when you recommend a product or service to your audience by placing your own special promotional links. Once your readers purchase something using the link you promote, you will get a commissions. You can basically make passive income from this with very little to no effort! For beginners, you can easily apply to Amazon Affiliates, ShareASale, and other affiliate networks. And if you don’t have a website, no need to worry as well because you can still do affiliate marketing on Pinterest and other Social Media platforms!
If you have a good number of followers on Instagram, for example, then you can simply put some products on your stories. Do the “Swipe Up” strategy where your followers will be immediately redirected to a product page. If you have a Facebook page with a lot of following, then you can make a text or a photo post with your affiliate link. And if you have a growing Pinterest account, you can simply create pins and add directs affiliate links to the promoted product pages.
Whenever you think of online income or passive income ideas, you find affiliate marketing is the right choice. You always have visibility of what money you gonna makes by selling different products.
5. Digital Product Sales
Now it all depends on what type of website you have, but I would distinguish between two ways of making affiliate income. One is for sites that have a lot of content and cover a wide range of products within a niche. For example, you could have a DIY or home décor blog and give links to multiple products on Amazon or RewardsStyle. For this method to work, you mostly need to work on your website content and growing traffic to your site.
The second way requires fewer content pages on your site. But more community building, email list building, relationship building with your audience. So they can trust you and purchase something in a higher price-range through your links. Usually, these products are digital courses, online tools that can pay you even on a recurring model. In this case, for every month your referred user keeps paying for the service they purchased, you will keep receiving your commission. For this type of affiliate marketing, your commission is usually much higher. It can range between 30 and 50% of the product or service price because your role is also different. You are not just dropping a random affiliate link in your content, you are educating your audience about these high-priced products.
To start with them, you can quickly sell your ebooks or audiobooks on Amazon. Do a little bit of marketing to promote your products. If you have a website or an Etsy shop, then you can also sell your online products through those platforms. Selling digital products is also another way where you can put effort initially. Once you establish your name as an expert on a specific topic.
6. Subscription Based Service
It’s also called Membership. Often times, this way is preferable for business owners who don’t like making big and stressful launches for their products. They prefer to have a consistent income stream when they can get a smaller fee from each member. But it comes to their bank account every month. Do a subscription-based service, if you don’t know what this means, just imagine a gym membership or even your Netflix account. You pay monthly to get the services they offer, right? That’s what you can do as well. If you are good at art, teaching, or you have some resources that you can share, then you might earn money from it.
What you can do is create the things you will offer in advance and deliver them to those who subscribed for your service in batches once a month. You can even send the information through email if you don't want to invest in a platform for hosting your membership content. Other ways to build your subscription-based service, including creating your own website or landing page or sign up on Patreon or Ko-fi. These two websites I mentioned can also be used as a platform for your fans or audience to “donate” to you for all your hard work.
The typical membership sites charge between $10 and up to $100/mo. In some business-related niches, people even pay a couple of hundred dollars a month. So if we take the lower price range, with a $10 membership site, you’ll need just 100 members to make $1000/mo in passive income. This is really an achievable goal given the fact that once people join, they will usually stick in your membership for many months. So if you keep selling and marketing your business, the number of members will be way above 100.
7. Sponsored Mentions
If you are an Instagram influencer, you probably received those offers before. Companies will reach out to you and ask for a mention in your Instagram Story. Or if you are a Youtuber – even when you have a relatively small following, you will get these opportunities all the time. This is called a micro-influencer and these types of accounts are actually very much in demand these days. Business prefers to pay to a smaller channel or Instagram account which has a very targeted audience than to an account with millions of followers on some entertainment account. It’s a) much more expensive for businesses to work with those big influencers, and b) they finally learned that the conversions and the outcome of those expensive sponsored deals are not high. The audience of those social media accounts is not interested in their products or services.
Even though you need to actively do something to mention the sponsor in your social media channels, I included this in the list of passive income streams. Because, in most cases, you don’t have to do a lot to get paid for these mentions. You need to grow your social following and your audience, but you are doing this anyway if you are building a business online. And then once you reach a certain level of authority in your niche, sponsors will outreach to you, and you don’t have to even search for them. So all your hard work on building the audience starts paying off when sponsors start asking you to accept their money. Trust me your social presence is an Ultimate Side Hustle for you.
And now, basis my experience my advice is that you are only safe if you learn over time how to diversify your passive income ideas stream. Everything has its ups and downs, display ads on my site, for example, are bringing me the most money in the last quarter of each year. It’s when advertisers are traditionally burning their ad budgets before the year ends. It’s also a holiday season when people spend more, so advertisers are spending more on ads as well. In January, I noticed that a lot of people are ready to have a fresh start in their life. To learn something new, start a new website, a new business, etc. It’s a great month when you can sell your digital courses much more comfortable because people are ready to get into a new challenge.
At the same time, in December, especially around Christmas time, people do the opposite. They want to spend time with families, they save money on presents, and they don’t want to start anything new in the last days of the year.
See what I mean? Also, all online platforms regularly change their algorithms. If all your passive income depends only on organic Google traffic, for example, one day, when an algorithm improves in a way that it hurts your traffic. You might lose 50% of your income. It might recover in a few months if you take action, but still, if you diversified your income streams. This drop could be covered with income growth from another source of revenue.
If you found our article "Passive Income Ideas" useful for you, then share it with your friends too. Kindly comment below and share your feedback or any question you have. I would be happy to address the same. Good Day!