Having an extra source of income is beneficial as it helps meet financial obligations, such as paying off bills, buying a house, or contributing towards goals like financial freedom. Passive income can also provide security during times of unemployment or inflation. But building a passive income source requires careful planning and action. And exploring the top online avenues to earn this money is the first step toward building a reliable passive source of income.
1) Build a Print-on-Demand Shop
This online passive income idea is great for those with creative talents. There’s a pool of providers that let users start a print-on-demand shop. The process requires uploading a file—design or artwork, selecting for-sale products, and advertising them on the online store. Original designs can be printed on different items, such as hats, mugs, posters, and shirts. The best part about this passive income stream is that there is no inventory management. Also, it encourages the creation of original products.
2) Start Financial Investments
An easy way to earn passive income online is through financial investments. Mutual funds, bonds, stocks, and REITs are some investment avenues to explore. Remember, some investment options offer high growth with time and require minimal maintenance effort. But they may not provide access to funds until the term is complete. Furthermore, they may be subject to taxes. Consider hiring a financial advisor to determine the best investment options.
3) Indulge in Photography
Another simple online passive income opportunity is to sell photography online. Various online platforms allow users to post original pictures for sale. These pictures can be of different genres, including wildlife, fashion, sports, and portrait photography. Once approved by the platform, license the photos so that interested buyers can easily download and use them. The platform will pay the owner whenever someone downloads or uses the photo.
4) Make an App
Designing apps is a great way to make money online passively over time. If an app’s design is accepted by a wide range of online users, it can be used to drive sales. For instance, the app can include advertisements or charge a subscription fee to users. The app could be a game or something that helps users perform complex functions. After the app is public, users will download it, which helps the owner generate income with each download. Also, if the app gains popularity or receives feedback, it is imperative to address the issues and improve its functionality and features to retain the user base.
5) Start a Video Channel
Many video-sharing platforms enable users to create a channel and upload content for diverse audiences. Leveraging this could be an easy way to earn money passively online. The channel could feature multiple genres or focus on a single niche, including travel, e-sports, dance, or singing. Start by building a deck of content to attract the audience. If it is engaging enough, and once the channel is monetized, it will serve as a steady online income stream. In addition to earning money from content, creators with an exceptional subscriber base can also earn from product promotions when brands approach them for partnerships. This could help earn passive income over time.
6) Try Affiliate Marketing
Social media influencers, bloggers, and other types of creators can use affiliate marketing to promote third-party products and earn money online. The brand provides a link to its product that can be included on the website or social media account. When a visitor clicks on the link and purchases from a third-party affiliate, the creator earns a commission, which can range between 3 to 7 percent or higher, depending on audience reach.
7) Make an Online Course
An online course with audio and video-aided recorded lessons is one of the best passive income opportunities. The course materials can focus on a single area of focus, like Digital Marketing, Information Technology, or English. Once the course is ready, upload it to an online learning platform and wait for users to sign up for and download the course materials, which will then generate passive income. Even creating a free course with basics can build a steady user base, following which the owner can charge more money for a complete version, thereby maintaining a stable revenue stream.
8) Rent Out Household Items
Renting out household items via a third-party website or personal platform is an easy way to make extra income. The items can include power tools, party supplies, kitchen appliances, cleaning equipment, gaming systems, and more. In addition to earning a passing income, renting out the items will help others save money by giving them a cheaper alternative to buying something new. Moreover, renting out such items helps reduce clutter and waste, positively impacting the environment.
9) Run a Dropshipping Business
This is one of the top methods to earn passive income online. To get started, simply select a niche and find a supplier. After this, set up the online store using a dropshipping platform. For instance, selling clothing items like t-shirts or jeans online will require creating an e-commerce fashion store. Follow this by marketing the store and products on social media. Then, when a customer places an order, the supplier ships the product directly. Given that a supplier handles inventory and shipping, the ongoing work required is minimal.