Building streams of passive income is a dream a lot of people would love to have.
Imagine sitting at home, sleeping, going out all day, and doing everything you love all day while earning money in the back.
Unfortunately, the world's perception of passive income is flawed - most 'passive income' ideas are not really passive.
How does this make sense?
A passive stream of income, by definition, is a source of revenue that can operate completely without your intervention.
A lot of the ideas you may read about on other blogs or find on YouTube require some level of intervention.
There are only a few *real* passive income streams one can use to generate wealth without needing your intervention.
In this article, we're talking about the 11 best passive income ideas to generate $1000 or more per month and build long-term wealth.
A lot of these ideas will require upfront work, however, I'm going to explain how a little effort can turn these into completely automated engines of passive income.
Create Digital products
The first, and one of the most popular sources of passive income, is selling digital products.
Digital products can take any form. These can be IOS or Android icon stickers, backgrounds, fonts, and pretty much anything else that is digitally distributed.
Digital products are great for various reasons:
- Many channels to sell them
There are a ton of channels one can use to sell digital products.
- High profit margins
Creating digital products is usually very simple.
All you need to create them is something like Canva - I've previously attempted to make IOS icons and managed to create all of them on Canva.
I used free icon templates from sites like Icons8, and so margins usually remain high.
- Fast to create
Most digital products can be created within a day or a few days at the top.
- No inventory
Since these products are digital, the difference in cost to sell 100 compared to selling 10 is virtually 0.
This makes it extremely profitable on your end because you don't need to worry about ordering inventory.
In order to turn a digital product side hustle into a passive income stream, you can start by creating the icons and selling them on the platforms mentioned above for free.
This is a great way to get some reviews through the gate which will then be effective for when you raise your prices.
A YouTuber by the name of Oliur manages to earn upwards of $30,000 per month by creating and selling digital products, so I recommend you check out his channel if you're interested in learning more.
Create online courses
If you're someone who's skilled at something, hopefully, more than a lot of others, this might be for you.
You're able to create a course on almost anything that you're good at - marketing, cooking, sleeping, meditation, exercise, gaming, and so much more.
There's always someone out there looking to learn something you might know - it's the reason I started my blog!
Similar to creating digital products, online courses are almost the exact same.
There are a ton of different places you can create and sell courses.
The market for course creation is massive - The worldwide e-learning market is projected to be worth $325 Billion in 2025, making it a very lucrative market to enter.
A course can be created once and viewed by a ton of people, so it's an easy hustle to scale into a profitable passive income stream.
Reviews are one of the biggest drivers of success when it comes to courses.
Share your courses with people for free - ideally influencers who have an audience full of your ideal customers.
From here, you can start building awareness, getting reviews, and letting the algorithm do the rest (fingers crossed).
Start an affiliate business
Maybe you're not so skilled at one specific thing.
Maybe you're more of a generalist at a lot of things, or maybe you just can't think of a skill right now.
Not to worry - you're still able to make money through someone else's courses!
How, you might be asking?
It's simple - through affiliate marketing.
Affiliate marketing is extremely popular in the entrepreneurship space. Most new entrepreneurs tend to lean towards affiliate marketing for its simplicity and the way it's advertised online.
See, a lot of people might tell you that you're able to make 100s of thousands per month from affiliate marketing.
And you can... probably not right now, though.
To make money from affiliate marketing, you simply advertise other people's products and get a commission when someone buys from you
So how is this a passive income stream if you need to advertise?
However, you're still able to run Facebook ads to your product page which then leads to sales if your product page is well optimized.
Learn about creating funnels, and you'll eventually be able to automate, or even delegate the whole process!
Start a YouTube channel
Wait! Don't click off yet.
I know what you're thinking - "This guy's nuts! YouTube? How is YouTube even nearly passive?!"
There are a few different ways to use YouTube to make money.
The first, as you might have guessed, is by creating and uploading your own YouTube videos.
Maybe you're good at gaming, or you like to talk about something like finance - starting a channel can eventually become a lucrative side hustle.
However, if you're looking to make passive income, there's another way to use YouTube.
These are 'faceless channels' or 'automated channels.'
Have you ever seen videos called 'Top 10 Scariest Animals of all time,' or something along those lines?
These videos are usually run by a small team of freelancers who are paid by the channel owner.
They're tasked with creating a weekly YouTube video which, by the time your channel is eligible for monetization, makes a massive return.
Ideally, you could create the videos yourself and only automate the channel once you're eligible for monetization.
However, you can use what we've spoken about previously and promote products as an affiliate that might be related to your channel.
This way, you can monetize your audience before hitting the requirements.
Write up ebooks
A while ago, I wrote an article talking about how I managed to write a 30,000-word book within a week or less.
Within the space of 7 days, I managed to write out a 30,000-word book that is ready to be sold online if I wanted to.
The online ebook market is massive and full of opportunities.
With the help of Amazon, a ton of people are building completely passive income streams by creating online ebooks and selling them as audiobooks too.
The whole process can be automated, from writing to listing on Amazon, for no more than $1000.
This means that you don't need to write a single word or speak a single sentence into a microphone.
You can easily pay people to do it all for you.
Over the past year or so, it's exploded in popularity.
From there, it's important you focus on getting all the reviews you can.
Reviews matter a lot, like they do with everything else on this list.
Simply running some Amazon PPC adverts can kickstart your sales engine.
From there, you can carry on creating more and more books, each one building up the passive income snowball.
Invest in stocks
This wouldn't be a 'passive income' article without at least a mention of investing in stocks.
Stocks are a very reliable way to grow your income and build long-term wealth.
Investors like Warren Buffet have managed to build unthinkable wealth simply by investing in businesses on the stock market.
Unlike other forms of investment, like Cryptocurrency, stocks are a lot more stable.
In my article on how to get rich overnight, I spoke about investing in penny stocks - which are essentially stocks that just hit the market, and are priced at a dollar, or less.
One of the simplest strategies of investing in stocks is by investing in historically successful stocks.
These might be:
Please do your own research before investing in any currency - there is a chance that you lose a lot more than you make.
However, with a bit of research and dedication, you'll be able to make passive income simply by giving it to companies on the stock market to grow their business.
However, you might not want to put all your eggs in one basket - this is where index funds come in.
Index funds have created many millionaires.
It's not a get-rich-quick scheme or anything, it's simply an alternative way to invest your money.
One of the most popular index funds, the S&P500, brings in average annual returns of around 10.5%, meaning, if you have $10,000 invested, you will be able to earn around $1050 in the first year, $1160.50 in year 2, and so on.
Start a dropshipping business
We talk a lot about dropshipping on this blog.
However, I've never mentioned that it can be built into a passive income stream.
It's a lot easier to build a passive income dropshipping business on Amazon than on Shopify, however, it's definitely possible.
I'm not going to explain how dropshipping works, I've written a few, detailed articles on that already.
For example, if you'd like to learn the entire process from A-Z, I suggest you read this article here.
The product is one of the most important pieces of the puzzle - here is a checklist, a product criterion that will help you choose the right product.
Although product matters a lot, the supplier might be even more important. Choosing the wrong supplier can burn your business before it's even built.
Finally, here's an article on starting an Amazon FBA business from scratch and at home... as I said, we speak about dropshipping quite a lot - and that's not all of 'em.
The amazing thing about using Amazon for dropshipping is that you only need to find a product, find a supplier, send the products to Amazon, then they handle the rest.
It's a very straightforward process when you really get to learn it and put it into action.
Although you might need to kickstart sales by running some sort of paid marketing, or influencer advertising, you'll quickly be able to let the engine run on its own.
From here, it's all about finding a few virtual assistants to help you run the day-to-day of the business such as replying to reviews, managing inventory, and supplier communication.
Stake Cryptocurrency & NFTs
This might be my favorite passive income idea on the list simply because I've found a true passion for NFTs in recent months.
A lot of people know about investing in cryptocurrency.
In fact, a lot of people have money sitting in currencies like Bitcoin or Ethereum without paying much attention to it.
However, one thing a lot of people don't know about is 'staking.'
Staking can be done, not only with Crypto but with NFTs too.
Staking essentially refers to the process of committing to holding your cryptocurrency assets to support the dedicated blockchain network and confirm transactions - this is all done automatically.
In layman's terms, staking is holding your cryptocurrency for the long-term - a process that can net you passive income if the blockchain you're on does well.
For example, if you stake something like Polkadot, you might make a 10% annual yield, however, some currencies can yield insane returns.
A more recent addition has been NFT staking, which essentially refers to holding an NFT to help the collection grow.
One collection that started this is the CyberKongz.
Holding a Genesis CyberKong can yield 10 $BANANA tokens every day.
Today, each token is worth around $25.28, and so holders are earning < $300 per day, about a six-figure annual income.
This means that there are people willing to buy your tokens for over $25.
I suggest joining our NFT's Discord group if this is something you're interested in.
Our roadmap has similar plans coming up.
Invest in a business
Maybe you don't want to start a business for whatever reason.
You might not have the time or interest in taking on all that risk and responsibility.
Instead, you're able to make money from someone else's business.
Although you're not going to end up on the Shark Tank cast, you're still able to invest in smaller companies.
Do you have a friend or family member who owns a business or is looking to start a business?
Speak to them and see if you can strike up a deal - giving them your capital for a percentage of the upside once it's sold can be a great way to grow your wealth over time.
If you don't know anyone in your immediate network, you can start building up a network on LinkedIn.
Connect to startup founders and other investors too.
There will be a lot of people who are either looking for funding, or people looking for investment partners.
Rent out your home
Renting out your home is one of the best ways to earn some passive income.
There are two, main ways of making money by renting out your home.
The first is to simply rent out the entire home to a family or group of people looking to live together.
If you're paying $1500 per month for the home, you might rent it out for $2000, netting you a little lower than $500 per month because there are still some expenses on your end.
The other way to make money from renting your home is through Airbnb.
This is the more profitable method because you're able to charge more for each room.
Imagine the home is a 4 bedroom house.
You're able to rent each room for $30 per night. Let's assume a 75% occupancy rate meaning that your rooms will be filled for 22 days out of a full 30-day month.
With 4 rooms, you're earning $120 per day, multiplied by 22 which totals to $2640.
That is over $1000 in revenue per month.
These numbers might be slightly inflated, however, you could see the potential in this simple passive income idea.
No matter which method of renting out your home you choose, you have the opportunity to make passive income.
If you have multiple properties, you're able to build a small real estate business that nets you passive income each month.
All you need to do is hire property managers who charge a small management fee.
Rent out your car
Similar to renting out your home, you can even choose to rent out your car.
If you're not a regular driver, or you don't use your car as much as you walk, you can easily turn your car into a passive income stream.
There are mobile applications and websites where you can list your car, name a price, and get paid when people use your car.
An example might be Karshare - a result I found at the top of my Google search.
Are you someone who doesn't own a car?
Instead, you might have a car parking space.
Finding parking can be difficult, and there's a market for renting out your car parking space.
The same way there's an app for renting out your car, you can find one for renting out your car parking space.
Although these are not high-yield income streams, they're essentially completely passive, and an overall great way to make some extra income on the side.
You're able to take what you earn and reinvest that income into another passive income idea we spoke about to build long-term wealth.
Those were the 11 best passive income ideas to generate $1000+ per month and build long-term wealth.
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Till next time,