47 Best Passive Income Side Hustles
Looking for the best passive income side hustles?
It’s the dream right, making money passively. That cha-ching of the cash machine while you’re watching TV, reading a book… sleeping… making money without having to put a ton of work into it.
You know, making money passively.
I’m sad to say you can’t just “passively” make a ton of money without doing ANYTHING, but there are a few forms of less active income that could work for anyone’s budget and time.
If you’re ready to find the best passive income for you, these are my top picks:
ALL of the income amounts listed are estimates, there is no guarantee that you will make any specific amount of money doing any of the listed side hustles. While all of them have the potential to earn money, we simply can’t estimate how much YOU could make.
Best Passive Income Side Hustles
These side hustles are mostly passive – meaning not only are they referred to as “passive” but they’re the most hands-off you’ll likely find. They require minimal ongoing effort after the initial set up, though most require a more significant financial investment to get started:
1. Dividend Stocks
Dividend stocks are shares of companies that regularly distribute a portion of their earnings to shareholders. They’re a great choice for generating passive income as they provide potential for both income through dividends and capital appreciation.
You’ll need to open a brokerage account to get started. It’s important to research companies with a strong history of dividend payments, and focus on those stocks for long-term investment purposes.
For a MORE passive experience, many recommend opting for dividend reinvestment plans (DRIPs) to automatically reinvest the dividends into additional shares. Not only does this enhance the compounding effect, but it also reduces active management needs.
2. Real Estate Investment Trusts (REITs)
REITs allow investors to own or finance properties as part of a portfolio that’s managed by a company. Investing in REITs is beneficial because it offers exposure to real estate markets without the need to directly manage properties, and it often provides high dividend yields.
You can start in this passive income side hustle by purchasing REIT shares through a brokerage account. Some great advice I’ve heard before is to choose publicly traded REITs for better liquidity and diversify across different sectors (like residential, commercial, and healthcare). I’m NOT an investment expert, but I hear this reduces risk.
3. High-Yield Savings Accounts
High-yield savings accounts offer higher interest rates than standard savings accounts, making them an excellent option for safely growing your funds passively. For this to be MOST effective, you want to find a bank that offers the best interest account. Then you can automate your savings with regular transfers from your checking account to ensure consistent growth without regular manual deposits.
4. Certificate of Deposit Laddering
Certificate of Deposit (CD) laddering involves staggering the maturity dates of multiple CDs to balance between higher yields and liquidity.
This strategy is great as it provides a steady, predictable income and access to some of your funds without significant penalties. You’ll need to start by opening CDs with varying terms at a bank offering competitive rates.
To make this EVEN more passive, automate the renewal process to continue the ladder without having to manually reinvest each time a CD matures.
5. Annuities
An annuity is a financial product that you purchase, which then pays you a steady income, typically after retirement. They can be a strong choice for long-term financial security because they provide predictable income.
Annuities can be purchased through an insurance company. It’s often recommended that you opt for automatic escalation in your annuity payouts to combat inflation and increase passivity by choosing direct deposit for the payments.
6. Bonds
Bonds are debt securities where you loan money to an entity (corporate or governmental) that borrows the funds for a defined period at a fixed interest rate. They are appealing due to their relative safety and steady income stream.
To get started with bonds, you’ll need to purchase them through a brokerage or directly from the issuer. It’s often recommended that you use a bond ladder strategy to have staggered maturities, ensuring regular income and re-investment opportunities.
7. Royalties from Intellectual Property
Earning royalties involves receiving payments for allowing others to use your intellectual property, like patents or copyrights. This is an attractive passive income source because it leverages creative or innovative work continuously.
The catch is, you need to create something that’s worthy of royalties first.
So, to get started you’ll need to create content (like publishing a book or song) or inventions, and legally protect them before THEN licensing out the rights. You’ll likely want to use a rights management agency to handle licensing negotiations and collections to minimize your involvement.
All of this said, you can actually purchase an asset that has royalty payments (like a song), and there are non-intellectual property related royalties like land royalties that can pay off – worth mentioning, but NOT what we’re talking about here.
8. Vending Machines
Starting a vending machine business sounds very mob-esque to me, but I promise you can do it even if you don’t want to be a good ole’ boy (you should actually avoid that particular part of it). It’s a straightforward way to earn money as vending machines sell products automatically.
Vending machines can be a truly awesome passive income business idea because it requires minimal interaction. You’ll want to start by purchasing or leasing a machine and securing a location with high foot traffic.
In today’s market, you’ll probably go further with machines that accept electronic payment. Not only does this reduce the need for physical money handling on your behalf, your customers can still buy even if they don’t have cash. Likewise, you’ll want to choose reliable locations where machines are likely to require less maintenance.
9. ATM Ownership
Like vending machines, owning ATMs can be a great passive income investment.
ATM ownership involves installing ATMs and earning fees from transactions. This passive income source is beneficial due to the steady demand for cash access. You’ll need to start by purchasing an ATM, then secure a location with high traffic.
To make this side hustle even more passive, partner with a service company to handle maintenance and cash replenishment to reduce your active involvement.
10. Music Licensing
Music licensing allows you to earn money each time someone uses your music in media like films, ads, or games. This method is great for musicians looking for ongoing income without continual effort.
To start, create quality music, and register with a music licensing agency. You’ll want to utilize multiple platforms to license your music and consider exclusive deals for higher earnings.
Somewhat Passive Income Ideas
While still considered passive income ideas, these side hustles do require some regular maintenance to keep them up and running, and earning. While they’re not 9-to-5 jobs, you won’t be able to be totally passive.
11. Stock Photography
Selling stock photography involves uploading your photos to websites where people can purchase the rights to use them. It’s a lucrative passive income because photos can be sold repeatedly.
Begin by taking high-quality, unique photographs and uploading them to stock photo platforms. Focus on niche subjects or in-demand topics to increase the likelihood of sales and use metadata effectively to boost discoverability.
12. Domain Flipping
Domain flipping involves buying domain names at a low price and selling them at a higher price. It’s a great choice due to the potential for significant profit margins.
To start, research trending keywords, purchase domains through registrar websites, and list them for sale on marketplaces. To make this a bit more passive, automate alerts for expiring domains and consider using a broker for high-value sales to increase passivity.
13. Cryptocurrency Staking
Cryptocurrency staking means locking crypto coins to support network operations and earning rewards in return. It’s beneficial as it provides a way to earn income from crypto holdings without selling them.
Begin by purchasing stakeable cryptocurrencies and use a staking platform or wallet that supports it. Choose cryptocurrencies with a stable history and automate the staking process through platforms that reinvest rewards.
14.Automated Car Wash
An automated car wash provides passive income through self-service mechanisms. It’s a solid choice because it requires little daily management and has a steady customer base.
Start by purchasing or leasing car wash equipment and secure a high-traffic location. Use technology for remote monitoring and payment options to minimize on-site management.
15. Billboard Renting
Billboard renting involves leasing out space for advertisements. It’s an excellent passive income source because once the billboard is set up, it can generate income continuously.
To start, own a billboard or lease space in high-visibility areas, then partner with advertising companies. Utilize digital billboards for easier content management and higher rental rates.
16. Storage Unit Rentals
Renting out storage units offers a consistent revenue stream as people need space to store belongings. Begin by purchasing or building storage units in a high-demand area. Tip: Implement automated booking and payment systems and use surveillance technology to reduce the need for onsite management.
17. Private Label Rights (PLR) Content
One of my semi-passive sources of income is PLR products and content.
This is essentially creating something – a spreadsheet, printable, or even digital planner – that your buyer can purchase then sell to their audience. Buyers are able to modify, brand, and resell PLR products as their own, allowing them to make money off your creations.
This can be a lucrative source of passive income as the content only needs to be created once. Start by creating or acquiring content, then sell it through your website or PLR platforms. Automate sales with an e-commerce setup (I use PayHip because it’s free!) and focus on popular niches to increase sales volume.
18. Fractional Ownership Investments
Investing in fractional ownerships of high-value assets like art or cars offers a share of the profits from their use or appreciation. This is appealing as it opens investment in otherwise inaccessible markets.
Get started through platforms that offer fractional investment opportunities. You’ll want to choose assets with a history of appreciation and use automated platforms for easier management and trading.
19. Digital Products
Selling digital products like ebooks, courses, or software, provides income with little ongoing cost. It’s appealing because products are created once and sold many times.
Start by creating high-quality digital content and use online platforms for distribution. You can automate marketing using email autoresponders and sales funnels to boost passive sales.
20. Robo-Advisors
Robo-advisors use algorithms to manage investments automatically. This is beneficial for earning passive income through optimized investment strategies with minimal effort.
Start by selecting a robo-advisor platform, setting your investment goals, and depositing funds. To see the most success, you’ll likely want to opt for platforms that automatically rebalance your portfolio to keep it aligned with your risk tolerance.
21. Silent Business Partnerships
A silent business partnership involves investing in a business without taking part in day-to-day operations. It’s great for those who want to invest in businesses without the time commitment of running them.
Begin by identifying profitable businesses looking for investors. Draft a clear agreement that defines your role and returns to minimize involvement and ensure predictable income.
22. E-Commerce Automation
E-commerce automation involves using software to handle various aspects of an online store, such as inventory management, customer service, and order processing.
This reduces the manual work needed and can significantly increase scalability. Start by setting up an online store and integrating automation tools. You could further utilize dropshipping to eliminate inventory handling and use AI-driven customer service tools.
23. Solar Panel Leasing
Solar panel leasing involves renting out your property’s roof space for solar installations, earning rental income. It’s excellent because it contributes to green energy while providing earnings.
To start, partner with a solar company that installs and maintains the panels. You’ll want to make sure your contracts include maintenance and insurance to avoid unexpected costs and efforts.
24. Peer-to-Peer Lending
Peer-to-peer lending involves loaning money to individuals or businesses through online platforms, bypassing traditional financial institutions. This hustle is advantageous because it can offer higher returns compared to traditional savings and investment methods.
Start by signing up with a reputable peer-to-peer lending platform, setting your investment criteria, and funding your account. Automate your investment choices based on predefined criteria to minimize active management and diversify your loans to spread risk.
25. Affiliate Marketing
Affiliate marketing is promoting others’ products and earning a commission for sales made through your referral. It’s a preferred passive income avenue for MANY content creators (like bloggers) due to its low entry barrier and potential high returns.
Start by choosing a niche, partnering with affiliates, and promoting their products through your blog, website, or social media channels. You can further use automated marketing tools to schedule and manage posts and track the performance of your affiliate links to optimize strategies.
26. Ad Revenue
Earning ad revenue involves monetizing your blog or YouTube channel by allowing ads to be displayed. This method is excellent for those who can produce compelling content that attracts viewers.
Begin by consistently creating quality content, growing your audience, and signing up with advertising networks like Google AdSense, Mediavine or Raptive (pending you meet the requirements).
You can further automate the content creation and posting using scheduling tools and hire freelancers for content production to maintain a consistent posting schedule with less personal time invested. That said, you still want to prioritize quality over quantity.
27. Subscription Services
Subscription services involve offering exclusive content or products on a recurring basis to subscribers. This model is beneficial because it generates a predictable and steady income stream.
Start by identifying a niche market, creating valuable content or curating products, and setting up a subscription mechanism on your platform. You can leverage automated billing and subscription management tools to handle subscriber payments and renewals effortlessly.
28. Print on Demand
Print on demand allows you to sell your custom designs on products like t-shirts, mugs, and books, without holding inventory. This hustle is appealing because the supplier handles the production, shipping, and inventory.
Begin by creating designs, setting up a store on a print-on-demand platform, and integrating it with your sales channels. Automate the marketing and customer service processes using online tools to reduce the workload.
29. Crowdfunded Real Estate Investing
Crowdfunded real estate investing allows you to pool funds with other investors to buy properties, sharing the profits. It’s attractive because it lowers the barriers to entering real estate investment.
Get started by joining a real estate crowdfunding platform, choosing your investments, and contributing funds. You’ll likely want to go for platforms that manage properties and tenant relations to minimize your active involvement.
30. Niche Subscription Boxes
Niche subscription boxes involve curating and delivering specialized products to subscribers on a regular schedule. This model works well due to its tailored approach and recurring revenue.
Begin by selecting a niche, sourcing products, and setting up a subscription system. For a considerably more passive experience, use fulfillment services to handle the packaging and shipping of boxes – this will reduce your operational duties.
31. Sponsored Social Media Posts
Earning from sponsored social media posts means posting content sponsored by brands to your followers. This is effective for those with a significant online following and engagement.
Start by building a strong, active social media presence and then partner with brands. You can automate post scheduling and use templates for proposals to streamline negotiations with sponsors.
32. Online Advertising Arbitrage
This involves buying advertising space at a lower price and selling it at a higher price or earning through clicks or conversions. It’s a good choice for those skilled in online marketing and analytics.
Start by understanding online advertising platforms, creating campaigns, and optimizing them for higher returns. You can use automated bidding and optimization tools to manage and refine ad campaigns more efficiently.
Less Passive Income Sources
I realize this post is about passive income sources and I’m including “less” passive stuff – however, these methods COULD be more passive than other money-making methods and side hustles. These will require more active management than those in the other two sections on our list.
33. Website Flipping
Website flipping involves buying, improving, and selling websites for a profit. It’s a great choice due to the potential for high ROI. Start by purchasing undervalued websites, optimizing their content and SEO, and then selling them at a higher price.
34. Rental Properties
Owning rental properties involves purchasing real estate to rent out to tenants, generating monthly rental income. This is a great choice because it can provide steady cash flow and potential property value appreciation.
To start, research the market, secure financing, and purchase a property that promises good returns. If you want to make this a serious passive contender, use a property management company to handle tenant sourcing, maintenance, and rent collection to make the process more passive.
35. Airbnb Hosting
Airbnb hosting entails renting out a room or entire property to travelers via the Airbnb platform. It’s an attractive option due to potentially higher yields compared to traditional renting and flexibility in hosting terms.
Get started by preparing your space, creating an appealing listing on Airbnb, and setting competitive prices. You can automate guest communications and check-ins using smart locks and property management software to reduce day-to-day involvement.
Or you can go full-on passive and hire a management agency – though you will make a smaller profit if you’re getting paid help.
36. Create an Online Course
Creating an online course involves developing educational material that users can purchase and access at any time.
This side hustle is great because it has the potential for significant income from one course over time. Begin by identifying a demand in your area of expertise, developing the course content, and using a platform like Teachable or Udemy to host and sell it.
Outsource the course creation or updates to freelancers to keep the course relevant and high-quality without constant personal involvement.
37. Write an eBook
Writing an eBook allows you to create and sell a digital book. It’s a good passive income stream as eBooks require no ongoing production costs and can reach a global audience.
Start by choosing a profitable niche, writing the eBook, and publishing it through platforms like Amazon Kindle Direct Publishing. Optimize your eBook for search within platforms and use automated marketing strategies like email campaigns to promote it continuously.
38. Create a Mobile App
Developing a mobile app involves creating software for mobile devices that users can download from app stores. This hustle is beneficial due to the massive reach and scalability potential.
Begin by conceptualizing a useful or entertaining app, hiring developers or using an app builder to create it, and then marketing it on platforms like the Apple App Store or Google Play.
For added passive income, implement in-app purchases or subscriptions for ongoing revenue and use automated tools for regular updates and customer support.
39. Laundromat Ownership
Owning a laundromat provides income through the operation of coin-operated washing and drying machines. This choice is compelling because it’s a steady demand service with relatively predictable revenue.
To start, find a suitable location, purchase reliable machines, and set up your laundromat. Utilize card-operated machines to reduce cash handling and consider remote monitoring systems to manage operations from afar.
40. Create and Sell Printables
Creating and selling printables involves designing digital files that customers can print out, like planners or worksheets.
This is advantageous as it involves low overhead and products can be sold indefinitely once created. Start by identifying popular printable categories, creating designs, and selling them on platforms like Etsy or your website.
You can automate distribution with digital download tools and use social media or content marketing to drive sales passively.
41. Monetize Videos
Monetizing viral videos involves creating and sharing video content that has the potential to become widely popular, then earning revenue through advertising and sponsorships.
This hustle is great because a single viral video can generate significant income. Start by identifying trending topics, creating engaging content, and optimizing it for platforms like YouTube or TikTok.
You can automate video uploads and scheduling, and use tools for analytics to understand what works, making your content strategy more passive.
42. Drop Servicing
Drop servicing is a business model where you sell services, then outsource the work to subcontractors. This is advantageous because it requires no direct service delivery on your part, focusing instead on customer acquisition and management.
To start, identify profitable services, set up a platform to offer these services, and find reliable subcontractors. This is another area where you can use automated tools for customer relationship management and project tracking to streamline operations and minimize active involvement.
43. Angel Investing
Angel investing involves providing capital to startups in exchange for equity. This choice is great due to the potential for high returns if the startups succeed.
Begin by researching industries you’re knowledgeable about, connecting with startup ecosystems, and carefully selecting ventures to invest in. You can also co-invest with other experienced angels to spread risk and use online platforms to manage and monitor your investments to make it more passive.
44. Peer-to-Peer Car Rentals
Renting out your car on a peer-to-peer platform allows you to earn money when you’re not using it.
This hustle is ideal for generating income from an otherwise idle asset. Get started by registering your car on a platform like Turo or Getaround, setting your availability and pricing.
Opt for a platform that offers automated pricing and demand-based adjustments, and consider using remote unlocking technology to reduce the need for physical check-ins.
45. Start a Blog and Monetize It
Starting and monetizing a blog involves creating content focused on a niche, then earning through ads, affiliate marketing, and sponsored posts. This is a preferred option for its flexibility and potential for significant passive income.
Start by identifying a profitable niche, creating content, and optimizing your blog for SEO. Use scheduling tools for consistent posting and employ automated ad services and affiliate networks to handle revenue generation.
46. Self-Publishing Audiobooks
Creating and selling audiobooks lets you offer spoken audio content which users can purchase and download. This method is appealing as audiobooks are growing in popularity and can provide royalties for years.
Begin by writing content, recording it or hiring a narrator, and publishing through platforms like Audible. Outsource the narration and technical editing to professionals and use automated marketing strategies to continuously promote your audiobooks.
47. Smart Device Apps
Developing apps for smart devices involves creating software that operates on devices like smartphones, tablets, or smartwatches. This hustle is excellent due to the vast market potential and scalability.
Start by identifying a need within the smart device ecosystem, designing an app, and developing it through platforms like Android or iOS. Employ a developer or use a platform that allows for easy updates and integration, and automate user support and updates to reduce ongoing involvement.
Final Thoughts: Best Passive Income Side Hustles
There are PLENTY of passive(ish) side hustle ideas that you can get started with to bring in that income. Now, I would say that NONE of them are 100% passive, you’ll need to do something or HIRE someone to help you out – but they’re definitely less work than a regular ole’ 9-to-5 job.
