33 Best passive income ideas and how to get started?

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33 Best passive income ideas and how to get started?

Are you looking for the best passive income ideas to make money while you sleep? In this article you will learn all you need in order to start generating passive income

So what is passive income?

Passive income is the income which you get with minimal efforts; it involves you investing your time or money at first in order to earn passive income in the future

In this article, you will learn to use your brain to create passive income, stop working hard and use your brain

Passive income is not completely passive; it involves putting in hard work to create the income which you want

Note: Most people will fail to generate passive income because they are not willing to read all these passive income ideas up to the end, you need to read and choose the one that fits your needs

So without further ado, let’s look at best 107 passive income ideas and how to start them

  1. Passive income idea  #Get a high paying job

Getting a job is not a passive income idea because your trading your time for money but it is the foundation to generating passive income, once you have got a job that is generating you a regular income, all you need is to use that income to start creating passive income sources

Once you have a regular income, you need to start putting your money into assets that has the potential to generate more income on the side

The truth is that your job won’t make you earn passive income because you’re trading your time for money but you can use the money you earn to create passive income streams

The best investments to make once you start earning money on your day job include rental property, stocks, index funds, crypto currency, farm land, blog, YouTube etc

  • Passive income idea # Become a money lender

Becoming a money lender is one of the best passive income ideas because people have problems and they are constantly looking for money which they will pay back with interest

All you need to do as an individual is to position yourself as a money lender in a busy place, people will keep looking for you to lend them money at a high interest rate

All you need to do is that they should have property to use as collateral security, this will help prevent them from defaulting, if someone defaults, you take his property

By giving you collateral, this will work as an insurance to make the borrower pay back your money

This doesn’t need to take most of your time; you can even do it in your free time as long as you have the money in cash form

People will search for you every time; your money should come with interest

All you need is to make agreements if they fail to pay you; you take their property which is far beyond the money you gave to them

In exchange there is no robbery,

The only downside to this is that you need not to have a lot of mercy, if you’re too merciful, people will default but if you become so strict, they will pay back your money with interest

  • Passive income idea # Leverage your talent

We all have talents; you might be a good comedian, motivational speaker, writer, athletics, foot ball player, musician etc

Most people have these talents but few of them have used them to generate passive income

Your talent can generate passive income more than even your profession

Look at musicians, football players etc, all these people have mansions which someone with a job can’t afford to build

This happens because they use their talents to make passive income

For example writers create eBooks and sell them on Amazon, Lulu, bookbaby etc, they continue to earn royalties even when they die, royalties continue to come as long as people continue to buy your book

Look at musicians, once you produce a hit and upload it on YouTube, spotify, Audible, as long as people continue to watching your music, you will continue to get paid

Look at comedians, their comedy continue to make them money as long people continue to watch your comedy

Look at the mark angel comedy, these Nigerians continue to earn money from the videos which they created over 50 years

  • Passive income idea # Start a business

Starting a business is a great way to make passive income if you build correct team of people to work with

You need to start a business that solves a given a problem affecting your society, look at what problems affecting the society, ask yourself does the problem affect a large number of society? Are the people willing to pay you to solve their problems?

If yes, this is the beginning of a business idea to start

To earn passive income, you need to build a team of experts who will help you perform the work

Once you have started a business, you can decide to sell your business or stay with it; this is your personal decision

Your business can be sold for 20-60 times, the monthly income it is earning now

So once you have you have sold your business, all you need to do is to invest that money into assets that have the potential to generate positive returns in the future

  • Passive income idea # Offer value

Offering value is not a passive income idea but making money or making your money grow comes as a result of offering value to society

You will make money according to the amount of value you offer to the public, the more value you offer, the more money you will make

So what are those skills you have? Is there any way you can help people in your society?

If yes, offer value to society and money will come

  • Passive income idea # Become an innovator or inventor

Becoming an innovator or inventor is a great way to start earning passive income, coming up with new ideas that are not existing is a great way to start making passive income

All you need is to come up with an idea and license it to start earning royalties whenever the company makes profits

  • Passive income idea # Improve what is already existing

Earning passive income is all about you putting in your time or money into something that has the potential of generating to you more money in the future with minimal efforts

So when you look at things that already exist, you need to ask yourself, is there any way I can’t make it better? Can you make any improvement in what already exists?

If yes, you can earn passive income by making few changes into something and recruiting a team of people to help you

Once people love what you’re offering, they will continue to offer you money as long as the solution you offer solves a given problem

Earning money is through solving problems, introducing something new or improving what already exists

  • Passive income idea # Inherit wealth

If you were luck and born in a wealthy family, inheriting wealth is a great way to start generating passive income by investing the wealth you inherited into assets that will generate passive income while you sleep

The best investments to put in your inherited money to make it grow include rental property, business houses apartments, rental offices, etc

Most times people who inherit wealth tend to fail to learn how to manage money and make it grow, so by reading this blog, you will learn all you need to know in order for you to build wealth and make your money grow

Investing is the only way to make your money grow and create passive income streams

  • Passive income idea # Become a scammer

Does scamming people a passive income idea? No but you can use the money you get and create passive income streams so that you can stop scamming

Scammers scam people for a living but once you have got good deals, you need to stop it, start investing that money into assets that have the potential for your money to grow

The best assets to buy include single family homes, rental houses, hotels, bar and lodges etc

I don’t support scamming, but it has also been proven there are some people who are ignorant that it does exist, it is illegal but most Nigerians are proven to earn money by scamming at an international level

  1. Passive income idea # Become an actor

Yes, people love entertainment, you and I love it, becoming an actor is a great way to generate passive income

All you need is to create educative and entertaining clips and upload them to YouTube or put them on CDs for people to buy

You can also license your clips and get royalties whenever someone purchases them

These clips can be produced within your free time, in the evening after work

If you do it consistently over time, your clips will start to generate passive income from time to time

  1. Passive income idea # Become a musician

Most people wonder how musicians earn passive income but the truth is that these people don’t tell you

Musicians make passive income by uploading their music on YouTube, Licensing their music on spotify and itunes, selling their music offline, sponsorships and brand deals

This is why these people have the potential to build mansions and bunglers because they have money that is constantly flowing to their bank account

They continue to earn royalties whenever people watch, download or listen to their music without even them having to put in extra efforts

So if you’re a musician and you haven’t embraced online music streaming, you’re leaving a lot of money on the table

Do you know even you can license the beat of your music so that whenever someone wants to use it in his music clips, he or she has to pay you money?

Use your brain, stop working hard

  1. Passive income idea # Become a film star

The film industry has provided many jobs to Nigerians, Pakistanis’, Indians and Americans

One you have acted in a film and you become a star, this is the foundation for you to start earning passive income

Once the film you have acted in goes viral for a long time, you will continue to earn royalties as long as people are buying that film

This also depends on the terms and conditions you agreed on while you were signing a contract, most people get paid a fixed amount to participate while others agree to receive royalties

It all comes to what you want

But becoming a film star is a great way to start generating passive income; all you need is to build a royal following

Once this is done on YouTube, you can monetize it as we will discuss below:

  1. Passive income idea # Invest in individual stocks

Investing in individual stocks is one of the best passive income business ideas

It where you purchase shares in a single company so as to receive profits when the company starts to make profits, by purchasing shares you become part of the owners of the company and your entitled to receive dividends on a quarterly or yearly basis

Individual stocks are somehow risky, all you need to do is to invest money in companies that have the potential to grow in the future

So you need to look at past financial statements of companies where you want to invest your money into

So you need to invest in companies that are undervalued not companies that have reached at their boom

The best platform to get started with stock investing include robinhood, public and webull

  1. Passive income ideas # Flip houses

 Is house flipping really passive? It depends on how you do it; you can free your houses during evenings or free time

House flipping is all about buying undervalued houses and selling them at a higher price

All you need to do is to position yourself in an area that has the potential of bring to you clients looking for houses and those interested in selling

Once you have set an office, you can hire a secretary to help you with office work so that you only concentrate on deals that come to you

You just need to hire someone who is an expert in valuing houses, then you only come in to confirm the payments

  1. Passive income idea # Become a car, land and house broker

Does this appear to you as being a passive income idea? People are interested in buying and selling cars, land and houses

As a broker, your work is to mediate these deals, connecting people who have a need

The best way to make this passive is to hire someone to work in your office, someone who has the skills and knowledge on how much something should cost

Once that person is got, you main role will be to come and look at the property and confirm whether it is worth your investment

You look at the costs and potential it has to make you money

As a broker, you will earn commissions whenever a deal is completed, commissions will vary from deal to deal but you can also set your own fixed commission

  1. Passive income # Invest in index funds

Investing in index funds is quite different from individual stocks, index funds is all about investing in the stocks of several companies at the same time

The only advantage of index funds to individual stocks is that you’re spreading the risk, in case the stock of one company fails, you will be compensated by the stock of other companies

The best thing with individual stocks is that they are more risky, so you need to invest in companies that have the potential

  1. Passive income idea # Invest in crypto

Cryptocurrency is a decentralized digital currency that is powered by the blockchain technology

Investing in crypto offers you an opportunity for you money to grow over the long run

The downside to this is that there prices are volatile, they keep fluctuating from time to time

The best cryptocurrencies to invest in include bitcoin, etherium, dogecoin, cardano etc

Investing in crypto is profitable but it is like gambling, you cannot know when prices will rise or fall

So you need to invest in coins when the prices are low and sell when prices are high

  1. Passive income idea # Invest in rental property

Investing in rental property is the best way to earn passive income, all you need to do is to invest in rental property that have the potential to bring to you cash flow on a monthly basis

The best rental property to invest in include single family homes, duplex, condo, rental offices, apartments and other commercial businesses

Most people give excuses for because they have no money but if you can get 20% as down payment, you can borrow 80% of the total cost of rental property

Once you have purchased it, you need to get tenants to reside in and pay you rent which you will use to pay off the mortgage

Once mortgage is paid off, you can make money in three ways such as capital appreciation, cash flow and ownership

Capital appreciation, your property will appreciate in value over time, cash flow, you will continue to earn rent from tenants on a monthly basis and ownership, once mortgage is paid off, you will become the owner of the house

  1. Passive income idea # Start a modern saloon

Can starting a modern salon make you passive income? It depends on whether you work in it full time or get someone to work for you

Most of the modern salons in town hire experts to work in and you pay them on a monthly or weekly wage

All you have to do is to start a salon is a highly populated area, get someone to work on customers and someone who will collect payments after they have completed shaving off the hair or working on women

If you get an opportunity to work with people preparation for wedding ceremonies, you will make a lot of money passively

How it works?

Get an area that is highly populated, start a modern salon, hire people to work on it and someone to collect the money,

  • Passive income idea # Start a phone and computer repair service

Starting a phone and computer service is a great way to earn passive income by hiring experts to work in it and hire experts to work in it

Starting this kind of business in a busy area doesn’t need you to work in it directly

We only have to hire skilled people and someone who will be in charge of collecting the payments on your behalf

The number of people using phones is increasing at a high rate, and they need people who will help them repair screens, fault issues, and buy phones and accessories

This is a great business idea to put your child in

  • Passive income idea # Tutor online

Tutoring online is a great way to earn passive income; all you need is to record videos of yourself teaching others and use those videos to teach the same subject to other people 

Many students and children are interested in learning online, you can get people to pay you over $20 /hour as long as you can teach them solve a particular problem

  • Passive income ideas # Create online courses

Creating online courses is a great way to make passive income online, the good thing with online courses is you create a course once and sell multiple copies to students without incurring more production costs

Once you have a skill which you can teach, all you have to do is to create videos, text, pdf, etc and upload them on course selling sites like skillshare and udemy

Or you can sell these online courses directly on your website using a platform like thinkific

Many course creators are earning over $100,000 from courses and enrolling students across the globe

So what are you waiting for, start creating online courses now

  • Passive income idea # Become a public speaker

Are you a public speaker? Do you have a good voice? Can you encourage someone to take action?

If yes, starting your public business idea is right for you, all you need to do is to record all your presentations and upload them on YouTube

YouTube will work as your portfolio which will help you get more clients

Once many people watch your videos, you will monetize your work through advertising, sponsorship, affiliate marketing and receiving donations

Public speakers charge a lot of money to give their presentation, over $1,000 an hour, so joining this business can help you generate passive income in a long run

  • Passive income # Become a freelancer

The freelancing business is not a passive income idea but you can turn it into passive if done well

All you need to do at first is to work with clients, as their number increases; you can outsource most of the work from other good freelancers

So by doing this, you will be making commissions from every task you outsource, assuming you get 10 tasks per day outsourced and you make $10 from each, you will make $100 just passively without you having to do the work

  • Passive income idea # Start an electronics shop

Does his sound to be a passive income idea to you? I hope no, but you can turn it to be a passive income idea by starting an electronics shops and getting someone whom you to trust to run it

All you need to do is to take part in the administration and decisions on which electronic equipment to buy

You need to make sure that you employee someone whom you 100% trust that he or she can’t run way with your money

With passive income, we are all about starting an investment today with the possibility of generating income to you without you having to invest most of your time

  • Passive income idea # Start a construction company

Starting a construction company doesn’t mean that you need to be an engineer or have those necessary skills to run it

All you need to do is to start one, have engineers to be part of your team, your work will only resolve on bringing new ideas, getting contracts, hiring engineers and performing the accounting role

Many people who are the founders of these companies are not technical but once you get into this business you will run all you need

Examples of the work you can be contracted for include road construction, house construction, office construction, apartments etc

The rule of thumb is that you need to hire experts who will do all the work

You will only be a shadow person by playing the most crucial role of managing the finances of the company and as the owner you will enjoy the profits the company makes

  • Passive income idea # Become a designer

Becoming an online designer is a great way to get started working online, all you need is graphic skills

You can also do by having a portfolio of your past clients, getting jobs and out sourcing most of the work from fiverr at a low price

To earn passive income with this, you should treat your design as a real business and hire experienced designers to do it on your behalf

You need to outsource most of the work and get your commission on every task or job you refer, you can also earn commission by referring clients to other designers and getting your commission

  • Passive income idea # Affiliate marketing

Affiliate marketing refers to promoting other people’s products to earn a commission whenever a sale is made, with this you don’t need to produce a product, keep he inventory or incur any shipping cost

Your only work is to refer people and all the other work is done by the company you refer people too

There are many affiliate programs for you to promote, all you need is to promote products which you have used and really trust

The best products to promote are the high ticket products which will pay you a high commission

We have a list of over 800 profitable high ticket affiliate programs to promote,

To make a lot of passive income you need to build a audience of people who are interested in your content, this can be done by either starting a YouTube channel or a blog

All you have identified your niche, you need to start creating content, the more the content you create, the more the visibility you will get in the search engine

  • Passive income idea # Start an institute/University

Starting an institute may appear not to be a passive income source but you can turn it into passive income source

All you need to do is to invest money in the construction of structures, hire tutors and administrators

You need to make sure that you trust someone whom you appoint to be the administrator and the person in charge of the finances

Once you have constructed these structures, you need to follow all the legal documents that will allow you to get started

  • Passive income idea # Start a content marketing agency

Content marketing agency is a great idea for you to get started when you’re interested in earning passive income online

There are many agencies you can start in this area and they include:

  • Article writing agency
  • Social media management agency
  • Graphic design agency
  • Web hosting agency
  • Web design agency

Once you have started this agency, you need to hire experts who will be in charge of this

Hire a team of expert who will be in charge of client’s work on a daily basis

  • Passive income idea # Start blog  

Starting a blog requires you to invest in your time at the start and little money; it is the only business you can start with as low as $100

All you need is to choose you niche and create good content which will educate and entertain with your audience

Starting a blog requires you to have a domain name and web hosting which will cost you less than $100 for your first 3 years

Once you have purchased web hosting, you need to start creating content, the more content you create, the more your website will be visible in the search engines

Once you have created content, you need to start sharing it on social media to bring eye balls to your website

So you need to start creating an email list and build a royal audience of people who are interested in your content

With your blog, you will make money in several ways such as affiliate marketing, freelancing, sponsorship, donations and brand deals

All you have to do as an individual as individual,

  • Write eBooks
  • Start a YouTube channel

This marks the end of the best passive income ideas and how to get started, Has it been of value to you? Share your opinion with us in the comments below