The world we live in today is highly competitive and tough. Traditional 9-5 jobs are often not sufficient to finance our basic needs, not to mention our wants. To ensure our financial stability, we must be resourceful. We must have the creativity and courage to get out of the comfort zone of our full-time job and add something new to the table. Here are passive income ideas for you to try as your next financial venture. These are guaranteed low-risk business ideas that can help you pump up your bank account.
What is Passive Income?
Passive income is money you earn in a way that requires little to no daily effort to maintain. It differs from a traditional business set up in the sense that the latter always requires continuous and meticulous supervision and management. Next, we have to understand what 'sharing economy' means. It simply refers to the socio-economic system that is rooted in the idea of sharing – be it material resources or intellectual ones. The sharing economy is also known as a peer-to-peer transaction or crowd economy. It is a sustainable business model since it requires only the provision or production of goods and services that are actually needed and have an existing demand.
Passive Income Ideas from the Sharing Economy
While it may sound like an impossible dream, there are plenty of ways that you can start earning passive income. In fact, we’re going to talk about 31 in this article, so that you can start earning easy money today!
Passive Income Idea #1: Share a room or home
The world is getting smaller and smaller by the minute. Fifty years ago, it was a rare sight to see tourists flying out for vacation and leisure. Due to the advancement in air navigation and the opening of cost-friendly airlines, more people can now afford to travel. But for those who only have enough money for a plane ticket and cheap accommodation, staying in hotels may be a disadvantage. Nowadays, it is pretty common to hear a tourist renting a house or room. Airbnb, as a matter of fact, built its own business model to cater to such needs. One way to earn residual income is to open your house for rent. If you have an empty and unused room or a vacation house, you can list them on Airbnb, Booking.com, or Traveloka, among others.
Learn how you can declutter your home to create that income-generating space by reading our blog post.
Passive Income Idea #2: Carpool to work
More and more people are becoming aware of the environmental impacts of gas emissions created by using cars. People nowadays are conscious of their carbon footprints and like to keep them at a minimum as much as possible. You can help them, while earning on the side, by giving them a ride to work. You can charge a minimal fee to encourage them to join your carpool – an amount enough to cover the extra gas needed and a little extra for you to keep.
Passive Income Idea #3: Unleash your inner Picasso and sell your art
Do you have artwork that lies at the back of your stock room? Or a painting up on the wall untouched for years? Why not sell them? The art community, while a relatively smaller niche, is still a niche! Make a copy of your artwork, have it reprinted and framed, and put it up for sale. You can create an Etsy account, and post your artwork there.
Passive Income Idea #4: Declutter and sell your preloved clothes and jewelry
There has been a growing movement in the fashion industry called sustainable fashion. Due to recent events involving environmental issues and labor standards, some now prefer to buy second-hand or pre-loved items. If you have clothes or jewelry that are in good condition and are not being used, it is the perfect time to sell them. Host a garage sale or create an online profile on eBay or Facebook Marketplace where you can post your clothes and accessories for sale.
Passive Income Idea #5: Sell your photos
If photography is your hobby, then this might be the one for you. You can sell your photos by uploading them on platforms such as IStock, Getty Images, or Shutterstock. The idea is capturing pictures that may be bought by different users for their own use. Your target market here is basically everyone who is into design and advertising, which is a pretty big market.
Passive Income Idea #6: Publish an ebook
In a recent study, Murdoch University Australia’s Margaret Merga discussed that Australian adolescents are more inclined to read an e-book than a paper book. If you are the type who loves to write and has quite a talent with words, you may publish your books online so that people can buy them. It is surely an advantage for you if you do not have the resources to publish hard copies. Ideas could range anywhere from recipes, to fitness guides, to self-care books, but don't be afraid to think outside the box.
Passive Income Idea #7: Design images, backgrounds, fonts
Another way to earn money is to create images, backgrounds, and fonts, which different brands or persons can purchase for further editing. Similar to stock photos, designers and photo editors usually search for these types of material for their photo manipulation needs. You can use platforms such as RedBubble and Creative Market to sell your unique creations.
Passive Income Idea #8: Engage in peer to peer lending
This is a rather traditional idea, but it still works. You can lend your friends money for an interest rate that is usually lower than bank rates. You can set your own terms, which will allow borrowers to settle their obligations in a more lenient way than with regular lending institutions.
Passive Income Idea #9: Be an online advertiser
Almost all products and services rely on advertisement for the proliferation of sales. It is how people get to know the brands and items. If you have a platform on social media that generates continuous traffic, it is an excellent idea to allocate space in your interface that is totally dedicated to advertisements. This is perfect for promoting other people’s products for a fee.
Passive Income Idea #10: Create a mobile app
The trend of going digital has no way to go but forward with the use of phones and computers. Knowing how to code is a big bonus nowadays. Users are constantly looking for applications to improve their daily lives. If you have a knack for coding, you can try your luck in building an app for Android or iOS devices. It does not stop, however, in the creation of an app. There are bugs to be fixed, and maintenance is a must. As such, you can sell your apps to software companies or develop and maintain them on your own.
Passive Income Idea #11: Edit Videos
If you've got a knack for video editing with software like Final Cut Pro, this is a great skill to leverage to make some extra dollars. With the rise in success of video content on social media, both from brands and content creators, it's becoming ever more needed for people to edit videos efficiently and effectively. Try posting your skills on sites like Fiver and UpWork and watch the gigs roll in.
Passive Income Idea #12: Create academic material
The need for educational materials is endless. Since students frequent Google more than the library, the usage of online academic materials increases. Aside from intellectually benefitting from writing your own case digests and course reviewers, you can also benefit from them financially. More popular websites such as Scribd or Academia allow users to download materials by paying a subscription fee. You earn through commissions for works downloaded by users.
Passive Income Idea #13: Be a Youtuber!
Are you the type who loves to sing, dance, or do anything entertaining as a hobby? Start a Youtube channel! Upload high-quality videos doing dance tutorials, song covers, and more. Once you have a solid group of subscribers and a large viewing audience, Youtube may even get you as a Youtube partner. It is said that for 1,000 views, you can earn up to approximately $2 to $4. While it might not still be that much, if you take a closer look into Youtubers who really stepped up their games, you will see that they have millions of viewers and a lot of earnings through brand sponsorships too.
Passive Income Idea #14: Open a savings account or term deposit
There are definitely some savings accounts that are better than others, and you can make money by choosing the one with the best interest rate. If your money is just going to sit there, you might as well make some passive income from it. Term deposits are kind of like savings accounts, but you can make more money from them. The drawback is that with term deposits, you don’t have free access to that money. Only once the term is up can you get your money plus the interest that you made.
Passive Income Idea #15: Rent out your car when you aren't using it
You can offset the cost of owning your car and even make some money on top when you rent out your car with a service like Car Next Door. Borrowers book your car with an app and get the keys from a lockbox, so your car can be earning you money even while you sleep.
Passive Income Idea #16: House sit!
Have some time to spare? Look for homeowners who are about to leave their houses for a period of time and offer to house sit. House-sitting is usually a mutual agreement where the house sitter can live free of rent, and the house owner benefits thru the free maintenance of their homes. Besides living rent-free, the house sitter can charge a minimum fee for the service he or she provides.
Passive Income Idea #17: Buy and sell in bulk!
Do you have a source where you can buy items cheaply and in bulk? Then, this may be for you. You can post the products on websites such as Amazon or eBay and ship them in bulk to other resellers. In this type of transaction, you will be the one to dictate the markup of the price of your products. It is best, however, to ensure that the prices are competitive and within the legally allowed mark-up rates.
Passive Income Idea #18: Write book reviews
This is the perfect way to passively earn income for book worms out there. There are companies that pay people to write book reviews, such as Oncewritten, Online Book Club, and US Review of Books. The usual range is 5-50 USD, but it can vary depending on the number of words or type of book you are writing a review of or on the quality of the review.
Passive Income Idea #19: Rent out your stuff
This is one of the simplest ways to earn income without too much effort. If you have things lying around in the house, have them rented by people who need them. Bikes, electronics, tents, grills–you name it. The fee may be very minimal, but it is better for these items to earn a little than to simply accumulate dust in your storage.
Passive Income Idea #20: License your smart ideas
The key to successful businesses is the influx of great and innovative ideas. Companies incessantly look for ways to improve their systems and processes. System optimization and process streamlining are very in demand right now. If you have an idea involving these two topics, you can license them and sell them to other companies that need them, too. They can pay royalty fees in exchange for your great ideas.
Passive Income Idea #21: Be a silent partner in a small business
A silent partner is someone whose involvement in a business is merely to provide financial support. In a sharing economy, it is especially important since most players in this field have limited financial assets. You can invest in other individuals or groups that are already in the sharing economy business and get a certain percentage of the profit. Putting your money towards small businesses is not only going to provide you with some passive income, but it’s going to make you feel good. You’ll be able to choose businesses that will improve your local community, which is great for everyone.
Passive Income Idea #22: Rent out your backyard space for events
Got a great backyard or outdoor space? Rent it out for parties!
Passive Income Idea #23: Invest in real estate
This is one of those traditional passive income ideas that can make you some real money if you’re able to do it. You can buy a house or apartment, fix it up or rent it out, and watch your money grow.
Passive Income Idea #24: Crowdfunded real estate
Not everyone has the money to invest in real estate alone, which is where crowdfunding comes in. There are a few online crowdfunding sites (like CrowdfundUP) where you can create a free profile, invest in a real estate project with a number of other investors, and start building your passive income.
Passive Income Idea #25: Make money with money – invest in shares
Buying and selling stocks is a full-time job, but you don’t have to dedicate all of your time to it if you’re just looking for some extra income. Here’s a great guide for beginners looking to buy shares online.
Passive Income Idea #26: Audiobook narration
If you love reading, you can get paid to read for audiobooks. This is another project that will take some time upfront but pay off over time. Just make sure that you get royalties from the downloads.
Passive Income Idea #27: Make your car into an advertisement
Really, who cares if your car looks like a billboard on wheels if it can get you some passive income? Check out sites like Wrappli to get started.
Passive Income Idea #28: Pet Sit or purchase money-making Animals
It might not be a viable choice for everyone, but if you’ve got the space, you should give it a try! There may be a bit more effort in pet sitting than house sitting, but it’s still a pretty good way to make easy money. Animals like chickens require little maintenance and can be profitable in no time through egg sales.
Passive Income Idea #29: Take online surveys
There are apps that will give you points towards cash or gift cards for just a few minutes of your time. This isn’t exactly passive income, but it’s something that you can easily do when you’re waiting in line at the grocery store or in between meetings.
Passive Income Idea #30: Be a paid participant in a sleep study
One of the ways that many people describe passive income is money that you can make in your sleep. Well, with our final passive income idea, you can take that saying quite literally. There are many researchers looking for participants in sleep studies, and all you have to do is show up and go to sleep.
There are lots of other research opportunities for you to make money, too. They may not be as passive as a sleep study, exactly, but pretty low-effort.
Passive Income Idea #31: Rent out unused space
It is undeniable that the value of land increases over time. It is the reason why more people find it hard to purchase additional spaces for their other needs. As such, some of them opt to rent spaces for a certain period of time – for use as parking space or storage. Companies like Spacer address these needs. What people do is enlist their spaces on the website and provide details such as the price, location, size, photos, and features of the area. Through it, renters can search for a space fitted to their needs.
Start making passive income today!
The world is becoming more competitive each day. We must ensure that our assets and talents are fully utilized and that nothing ever goes to waste. Why not make a change by trying any of these ideas out? In the end, you only regret the chances you did not take. You can visit http://www.spacer.com.au to know more about how you can make money by renting out your free spaces. Start earning passive income by signing up today.
Updated October 2020