15+ Passive Income Ideas That’ll Make You Rich in 2022
If you are looking to create another stream of income, here are 15+ passive income ideas that can help you out with this. Choose the idea that fits best for you and start earning some extra cash.
The standard retirement age in most countries is 60. Anyone who starts out on their career plan to work till retirement, some people even work beyond the retirement age!
This thought process, and approach to retirement, has changed by leaps and bounds lately. People do not want to work till 60 anymore. They want to retire early so that they can get to all the things they missed while working actively and saving money.
But, if you want to retire early, how much money should you have saved?
Rachel Richards, author of the book “Passive Income, Aggressive Retirement: The Secret to Freedom, Flexibility, and Financial Independence” says that you should have saved at least 2 Million dollars in order to retire at 40.
As easy as it may sound, saving a whopping 2 million dollars is impossible even if you worked 6 days a week and saved every penny that you earned until you turned 40.
This is where the concept of passive income comes to your rescue.
Content Index
What is Passive Income? 
Passive income is the money that you earn with very less to no active efforts or participation from your end.
While a major part of your income comes from your business or a 9 to 5 job, it directly results from your active participation. This income will keep coming as long as you put in your energy, time and efforts into the job.
Passive income, on the other hand, does not take up as much of your time or energy once it is set up. You will keep earning even when you are travelling, having a fun time with your family or even when you are asleep!
How exciting does it sound to earn money even while you are asleep, right?
Advantages of having a passive income
The key to financial freedom and great wealth is a person’s ability to convert earned income into passive and/or portfolio income.Robert T. Kiyosaki (Rich Dad, Poor Dad)Having financial freedom can account for a lot in our lives. However, is it the only advantage of having a passive income?
Absolutely not!
Here are some advantages of having a passive income:
- You need to create space in your house for your at-home business. You might need to turn spare bedrooms into an office or warehouse and should be ready to deal with the change of working from home permanently.
- You will still need to be compliant with all the regulations related to your business. Just because you’re working from home, it does not mean that you can turn a blind eye to rules and regulations.
- Sometimes, at-home businesses can make you feel lonely and overwhelmed to do everything on your own from home.
Even if none of these advantages speak to you, having a passive income stream is the most exciting thing you can do in your life.
Having taught all our lives that money comes through hard work alone, having an income stream that does not really need a lot of active effort is really exciting and motivating enough!
Now that we have looked at what passive income is and its advantages, the obvious next step is to analyse a range of passive income ideas.
15+ Passive Income Ideas That Actually Work
No money comes easily, and that is true for passive income too. While setting up your passive income stream, it takes a lot of hard work and time.
But once it is all set up, and the income starts flowing in, it requires very less interference from your end.
Here are some of the best passive income ideas and all the details you need to know about each one of them so that you can make a well-informed choice.
1. Start affiliate marketing
Since online shopping cuts down on the experience of physically judging a product before buying, people are more dependent on product reviews and ratings.
A survey by Brightlocal showed that over 75% of people trust online reviews as much as they would trust a personal recommendation.
This has driven brands to hire people to try out their products and give their reviews on social media platforms like YouTube, Instagram, etc. and pay a commission to the reviewers on every sale made through them.
Here is everything you need to know about Affiliate Marketing.
Pros- Easy to start.
- Fame and loyalty.
- Very Low investment.
- Takes time to build following.
- Low margin.
- High competition.
Get Inspired – Pat Flynn is a blogger and affiliate marketer since 2008 and currently he earns about $50,000 Per month through his blog.2. Become a blogger
It takes some time to find your niche and drive traffic to your blog once you have set it up. But once you have a regular following, you can add affiliate links in your posts, or sell your own products on your blog.
You can also earn through AdSense, but that is possible only when you have a high traffic inflow to your blog on a daily basis.
Pros- Easy to start.
- Build a loyal following.
- Constant income.
- Takes time to build your following.
- High competition.
- Takes time and effort.
Get Inspired – Tim Sykes who runs the blog timothysykes.com is one of the highest paid bloggers in the world. He is estimated to earn around $1 million per month!3. Become a YouTuber
Starting your own YouTube channel works similar to starting a blog. Instead of written content, you will create video content and upload it on your channel.
YouTubers earn majorly through AdSense, but they also earn through brand promotions, affiliate marketing, etc.
Once you have created a following for your videos, even if you stop posting any new content, your videos will get viewed and the AdSense revenue will keep coming in!
Pros- Easy to start.
- Continuous income through AdSense.
- Fame and loyal following.
- High competition.
- Need to be consistent.
- Takes time to build your following.
Get Inspired – YouTuber Jimmy Donaldson who runs the channel, Mr. Beast, is currently the top paid youtuber. He is estimated to earn $45 million per year.4. Become an Instagram influencer
Instagram may have started out as a photo sharing social media platform. However, today, businesses use Instagram to sell their products and attract a following. They often use Influencers to promote their products and services too.
Depending on the number of followers, the engagement rate on each post and their influence in general, instagram influencers can make anywhere from 100 dollars to 1 million dollars or more per instagram post.
Pros- Easy to start.
- Easy income.
- Earn through your hobbies or passion.
- Very creative.
- High competition.
- Takes time to build a following.
- Need consistent efforts.
Get Inspired – As of 2021, Cristiano Ronaldo tops the list as the highest paid influencer on instagram. He is estimated to earn over 1.6 million dollars per sponsored post.5. Start a rental property
Renting out your property is one of the sure shot passive income methods that has been around for a long time.
If you have a property or you have saved up some money that you can invest into a property, this passive income idea is the best option for you. It takes very less to no effort and you will receive a constant income every month in the form of rent.
Pros- Constant income.
- Very less effort involved.
- Solid investment.
- High initial investment.
- Prime location needed.
Get Inspired – 93 year old Lee Shau-kee is the world’s richest real estate tycoon whose net worth is estimated to be above 30 Billion U.S. dollars (as of June 2021).6. Start an Airbnb
Much like renting out a property, starting an Airbnb comes with a lot more flexibility in the initial investment. The property you are renting out can be as small as a single room or as big as an entire mansion.
It is also a temporary rental as you will rent out the space to people travelling in from other places or countries. Since a lot of travellers are looking for a safe and home-like place to stay, this could be an easy way to earn a little extra cash.
Pros- High margin.
- Low investment.
- Scale it into a business.
- Opening up your home to strangers.
- Smart and constant marketing required.
Get Inspired – Entrepreneur Chi Ta started his journey with Airbnb in 2017 out of desperation. Today, Ta has over 30 properties listed on Airbnb internationally that generates a revenue of over $2.4 million annually.7. Start a car rental service
Whether it is to save money or to escape consumerism, people are choosing to rent cars rather than buy one. Unlike investing in a property or land, the value of a car only keeps depreciating with time!
So you can make the most out of it by investing in a bunch of cars and renting them out to people. This way, you will receive a constant income with no efforts, really!
Pros- Constant income.
- No effort involved.
- Easy to set up.
- High initial investment.
- Low margin.
- Risks like accidents.
Get Inspired – Greg Moran started Zoomcar, a car rental service in India back in 2013. Currently, the company is estimated to value over $100 million. (as of Dec 2021)8. Write a book
If you have a story to tell people or knowledge that can add value to someone’s life, then you can write a book!
It doesn’t really need to be a physical book for your story to sell. You can create an ebook and it will sell just fine with the right pricing and right marketing.
Pros- Low investment.
- High Margin.
- Constant income.
- Fame and loyalty.
- Discipline to write a book.
- Lots of time and effort.
- Constant marketing required.
Get Inspired – Suzanne Collin, Writer and Author of ‘The Hunger Games’ series of books is the world’s highest paid author. Her net worth is estimated to be over $80 million.9. Compose music
If you are more creative and into music, composing music and licensing it can be the best passive income idea for you. The best kind of passive income is the one that can be made from your passion!
You do not even have to invest in instruments to record your music. You can rent out a studio on an hourly basis to compose your music.
Pros- Low investment.
- Fame and loyalty.
- Earn from your passion.
- Needs the right talent.
- Lots of competition.
- Time and effort.
Get Inspired – Taylor Swift, American singer and songwriter has been constantly featured on the list of Top 10 musicians for years now. Her net worth has been estimated to be over $550 million as of 2021.10. Start a dropshipping business
Dropshipping business model has caught up pretty quickly with those who want to start a business without all the initial investment in the products and delivery services.
In this business model, all you need is a well designed online store where you add product pictures and build a virtual catalogue. You can price the products with a nominal profit margin.
When an order is placed, the manufacturer packs and ships the product. You receive your profit margin with every sale made.
Pros- Low investment.
- No inventory management.
- Start your own business.
- Top notch marketing strategy.
- Constantly add products to the store.
- Maintaining the business.
Get Inspired – Anthony Agyeman started his dropshipping business when he was just 18 years old. Through his marketing skills, he fast tracked to success in the business. Currently he dominates the high-ticket dropshipping industry with a potential to earn $600- $900 per every sale!11. Start print-on-demand T-shirt business
Though T-shirts are a necessity, wearing a plain, out of style T-shirt is not a necessity.
T-shirts can be amped up by printing custom quotes and graphics on them. They also make for an amazing customized gift by printing pictures, dates or dialogues on them.
Print on demand T-shirt business is more of a successful side hustle rather than a passive income because it takes some effort to print the T-shirts per order received. However, you can also hire a personnel to do the printing!
Learn more about starting a T-shirt business here.
Pros- Side hustle.
- Start your own business.
- Scale it into a brand.
- Good Margin.
- Stay on top of trends.
- Marketing and advertising.
- High competition.
Get Inspired – Prabhkiran Singh and Siddharth Munot started Bewakoof in 2012. They sell T-shirts with quirky and unique prints. Their current worth is estimated at $150 Thousand.12. Create and sell digital courses
People would rather spend $50 learning useful career skills online than go to university for a few years, leaving with tens of thousands of dollars in debt and no job.Rob Cubbon (Build a Brand Create Products and Earn Passive Income)If you are a professor or a subject matter expert who wants to share your knowledge and skills with people who are willing to learn, you can create a digital course and sell it online.
If you prefer taking online tuition classes from home, here’s how to get started.
Pros- Easy to start.
- Earn from your skills.
- Constant income.
- Time and efforts involved in creating a course that will sell.
Get Inspired – Joseph Michael makes a whopping $100,000 per year or more teaching entrepreneurs how to build online courses that sell.13. Create and sell digital products
Digital products are things that are created digitally and they can be used both online and offline. These include digital art, graphics, editable templates, and so much more.
Creating digital products takes a one time investment of time, energy and money. Once it is ready, it can be sold many times, making it a really profitable passive income idea!
Here are 21+ ideas of digital products that you can make and sell.
Pros- One time investment.
- Easy to start.
- Constant income.
- High competition.
- High risk of theft or piracy.
Get Inspired – If you visit Creative Market, you will see how people make money selling a range of digital products starting from fonts and graphics to website themes and 3D animations!14. Sell stock photos and videos
This is the best way to earn from your passion for photography and videography. Taking stock photos is a particular niche that you have to master.
However, once you get a hang of it, you can upload your photos on your website and create a license for them.
Learn more about starting a photography business before getting started.
Pros- One time investment.
- Easy to start.
- Earn from your passion.
- Constant income.
- Combating piracy and theft.
- High competition.
- Need to be unique.
Get Inspired – Photographer Joseph Sohm is considered king of stock photography, sells over 50,000 images per year and has licensed over 500,000 images in his lifetime! With every download he earns upto $120.15. Start a homemade products business
If you are into arts and crafts, you can start a business out of it and sell your handmade products. Make a profit out of your hobbies!
Find three hobbies you love: One to make you money, one to keep you in shape and one to be creative.AnonymousYou can make and sell from the comfort of your own home. For ideas of things to make and sell, do refer to this article.
Pros- Low investment.
- Easy to start.
- Start your own business.
- Takes time and effort to make things.
- Strong marketing skills needed.
Get Inspired – Lush Cosmetics is a brand well-known for their handmade soaps, bath bombs, and other bath and body products. Started in 2001, their current profit from the UK alone is over 300 million british pounds.16. Start a franchise business
If you want to start your own business but do not really have a winning idea, you can buy a franchise of an already established business.
This requires a huge investment to start with. However, running a franchise business is kind of easy and laid back, provided you have chosen a prime location and a trending brand.
If you want to start an online business, this article can help you.
Pros- Start your own business.
- Be associated with a well-known brand.
- Good ROI.
- High initial investment.
- Good management skills are needed.
- Consistent marketing.
Get Inspired – If you are confused about what business franchise to invest in, here is a list of top 100 profitable franchises in 2021.17. Invest in stocks and bonds
Investing money in stocks and bonds is one of the high yielding passive income methods. However, it requires a lot of research and analysis to invest in the right business.
Once you have learnt to invest in stocks and found the right stocks, the income keeps flowing in, whether it is day or night. However, it is important to remember that investing in stocks is a long-term thing.
Pros- High margin.
- Constant income.
- Very less effort involved.
- Market risks.
- Steep learning curve.
- Long term investment.
Get Inspired – I am sure you have all heard of Warren Buffet, one of the world’s richest people, is known to be an avid investor. He is currently estimated to be making over $3 Billion from just 4 of the stocks he has invested in!How to bring your passive income ideas to life?
Now that you have gone through the passive income ideas, you must have gotten a hang of what kind of business can make for good passive income.
Next, let us look at how to bring your business idea to life in 4 simple steps.
1. Choose an idea that works best for you, your skill set and your budget.
While you choose an idea, make sure that you have done enough market research and have closed in on your ideal customers, too. If you have a product that no one is willing to pay for, you obviously cannot turn it into a business.
2. Invest in the raw materials and start creating your product
Whichever passive business idea you have chosen, it will need some kind of initial investment, maybe as time and effort if not for money.
Invest whatever it takes to create a product that will sell. If you can create a product that addresses a problem or an issue, it will sell much faster!
Of course, we all have to make money. But money has to come second to the desire to help people.Rob Cubbon3. Set up your online store on an eCommerce platform
Once your products are created, you will need a platform where you can display them, price them, and market them to your potential customers.
EasyStore is one eCommerce platform that can support any kind of business that you plan to set up. Be it a dropshipping business or a handmade products business or selling your digital products, you can create an online store on EasyStore.
EasyStore is an easy and safe platform that has been chosen by thousands of business owners and resellers already. Download the app and you will see what we are talking about!
4. Start selling your products. Manage your products, your orders, payment and shipping through your online platform.
Your eCommerce platform should be your one stop shop for managing everything related to your business easily and efficiently. Choosing the best eCommerce platform matters the most in that case.