Top 20 Passive Income Ideas

. 7 min read
Top 20 Passive Income Ideas

Passive income is money that can be easily earned over time with the right push in the starting. It doesn't require active work every day to earn money. For example, if you make an online course, you just need to update the content every once to stay with new trends, policies and regulations. It will generate money for itself as people will purchase the course. The phrase "make money while you sleep" fits perfectly in the case of passive income.

Passive income generates money when you are not working. Stocks and bonds are considered passive income as they generate dividends and interest over time.

Top 20 Passive Income Ideas for 2021

1. Drop-shipping Store

Drop-shipping is the most profitable passive income idea. It helps an individual to sell trendy products from the marketplace to customers around the world. You can sell any type of products, from fashion to technology and home décor to beauty products.

2. Create a blog

It is easier to start a blog than before. It requires very little investment to start a blog page. A blog is a great passive income idea to make money from blog posts, advertisements, sell products, etc. The key is to focus on building an audience and sell products that your audience will buy and love. It can help to increase the revenue but not right away.

3. Instagram sponsored Posts

Instagram is a great way to increase income by posting more and more pictures. It will help to create a fanbase. Fan pages help to lift the brand and increase followers that lead to brand promotion and extra income. The key to earning money from Instagram is consistency.

4. Create an App

The demand for Applications is skyrocketing. Creating stuff leads to passive income. If you are interested in computer science and web development, you can create an app as a passive income stream and sell it altogether.  

5. Invest in Stocks

Investing in stocks is a good old way to earn extra income. The richest people still invest in stocks because stocks tend to increase their net worth over time. The investment in stocks generates passive income but the process to find good stocks is active.

6. Rent a place

Consider renting that place out if you have an extra condo or room that you don’t use anymore. It leads to passive income every month. It is a good way to earn extra cash.

7. Buy property

Real estate can be a good way to make passive income. You can buy the property and rent it to families and earn extra income. Once the prices of real estate hype, you can sell it for a good price.

People working on website and Characters doing various tasks, teamwork

8. Build a website

Building a website is a reliable source of passive income. You can create a website and sell it digitally to make extra money.

9. Affiliate Marketing

Affiliate marketing is a process to earn a commission by promoting somebody else's products and services. It requires no up-front investment and is considered a good source of passive income. It helps to increase the reach of a brand. It is commission-based marketing that involves promoting eBooks, membership sites, beauty products, video series, etc. These types of affiliate marketing can earn up to 50% or more as commission.

10. Create a course

Creating an education course can help to increase passive income. It doesn't require any up-front investment. An individual can make a course from anywhere and can sell online or upload it on websites like LinkedIn for better reach. Some various successful entrepreneurs and individuals can share their knowledge using an educational course.

11. Start a YouTube channel

Starting a YouTube channel is a good source of passive income. Videos are in high demand and are popular. From Instagram Reels to Snapchat Stories, videos are tremendously circulating information and entertainment. YouTube is no exception. You can start a YouTube channel to share your knowledge and style with others. It can help you create a fanbase and will increase your income. You can also start a channel by recording videos with your smartphone with quality lenses.

12. Sell your photography

Selling your professional pictures is another way to make passive income. It is good for college students, travellers, and those who have a knack for taking high-quality photographs.

13. Write an eBook

Writing a book is a good way to start an online business to generate passive income. People are fond of reading digital copies of books. It is a great opportunity to write a book and publish it online. Writing a book doesn’t require any investment. With the help of Amazon, you can self-publish a book easily. If you sell a hundred copies in a week, Amazon will take over and promote the book for you, and you can earn money at the later stage of your life without doing anything.

14. Sell clothes online

You can sell your unused clothes online for people to buy. It will make some extra cash and can contribute to your passive income stream. We all have clothes that we don’t wear anymore or clothes that don’t fit, consider putting them on sale.

15. Design T-shirts

Designing T-shirts on demand is a new way to make passive income. It is high in demand and can be considered as a good passive income stream.

young woman taking a photo of her most recent painting to share it and sell it online

16. Sell art online

Selling art online is a great way to generate passive income and make extra money with no investment. There are several online platforms where people can put their art or pictures for sale. If you're a musician, painter, photographer, you can also sell the work by creating your website.

17. Host Airbnb

You can rent your place or list it on Airbnb online. It will contribute to your passive income stream.

18. Sell your videos

People are obsessed with video content and can pay a handsome price for good quality videos. It can lead to extra income at hand.

19. Sell Digital products

If you are good at making tech products, consider selling them online. It can lead to profitable passive income.

20. Company Stocks

Your traditional 9 to 5 job can become a passive income stream by investing in a company's stocks. It requires a little investment, but the company's investment makes it worth it.  

Also read:

1) What Are the Business Ideas I Can Look at If I Am an MBA Graduate?
2) 20 Business Ideas for Stay-At-Home Parents
3) 21 Successful Small Business Ideas for New Entrepreneurs in India
4) What are Some of the Best Online Businesses?

5) OkCredit: All you need to know about OkCredit & how it works.


Q. Can I make a living off passive income?

Ans. Passive income is long-term success and depends on how many passive income streams you have. More the risk, the more the passive income. If you invest Rs 500 in a venture, it will probably make Rs 20-30 a month or more, depending on the venture you had invested in. Passive income compounds every year and makes more money than you had invested initially. You can live off passive income if you have more than 2 passive income streams.

Q. How much money do I need to invest in making Rs 5000 a month?

Ans. To get Rs 5,000, you would need to invest around Rs 1,00,000 in a good investment project. If the business is doing well online, you can easily invest more than Rs 5000 a month. Good investment projects make more passive income as compared to others.

Q. How can a beginner make passive income?

Ans. Beginners can make passive income by investing a small amount every month in investment projects, like investing in stocks, start YouTube channels, create a blog, create on-demand T-shirts, sell art online, sell photography, rent an extra room, write an eBook, Instagram sponsored posts, create an app, sell videos, sell digital products, etc.

Q. What are the three types of Income?

Ans. The three types of income are as follows:

  • Active income or earned income is earned by doing contractual or commission-based work or full-time jobs like working as an hourly employee, working as a contractor, working as a salaried employee, etc.
  • Portfolio income or capital Gain income is the income generated when you sell stock more than you paid for it.
  • Passive Income is the income generated from other sources like starting a YouTube channel, selling clothes online, renting a place, investing in stocks, etc.