Passive income ideas are a no-brainer when it comes to achieving long-term financial freedom. Getting started, however, can feel intimidating to new professionals.
The truth is, it’s easy to start earning passive income. Today, we’re covering 17 passive income ideas that are perfect for beginners. They’re easy to launch, require little to no specialized knowledge, and are wide-open to those willing to give them a shot.
These easy passive income ideas are small steps that can take you far, with plenty of options to scale and diversify as you gain experience. Let’s dive in!
What is Passive Income?
Passive income sources allow you to earn money with little to no ongoing effort. In other words, you set up a system once so that you can continue earning repeatedly.
These earnings can supplement your existing income, helping you pay off bills, save for early retirement, add to a school fund, or give you more spending power.
With that said, not all passive income strategies are equal:
- Truly passive income: Requires very little effort to get started, and minimal (or no) ongoing effort after initial setup. Examples include opening a high-interest savings account, using cashback apps, or REITs.
- Semi-passive income: While largely passive, these ideas will require regular maintenance or customer service. Examples include short-term rentals, vending machine businesses, and affiliate marketing.
- Long-term passive income: Requires significant upfront effort, becoming more passive over time. Examples include writing ebooks, building an app, or investing in real estate.
17 Passive Income Ideas for Beginners
There are endless types of passive income for you to try. Here are 17 of the most beginner-friendly ideas to explore.
1. Affiliate Marketing
Affiliate marketing is one of the best passive income ideas for beginners. It’s easy to learn, and there are tons of online platforms that support this side hustle.
If you’ve never heard of affiliates before, you’ve likely clicked on one in the past. Essentially, users will receive a percentage of each sale made through their affiliate link. Some programs will even pay you per click.
You can add affiliate links to your blog, post them on social media stories, or promote them through email marketing; the more diverse the distribution, the greater the earning potential.
Affiliate programs for you to try:
- Amazon Affiliates: A well-known and easy-to-use platform. To join, you must have at least 500 followers via social media or a minimum of 10 high-quality blog posts.
- FlexOffers: Partners with top companies, offering affiliate links through text messages, banner ads, templates, and more.
- ShareASale: Over 3,900 merchants looking to connect with bloggers and publishers. You must have a website for this program.
- CJ Affiliate: A third-party platform that connects bloggers with advertisers. This platform comes with affiliate managers who offer tips and troubleshooting.
- Skimlinks: Automated and passive affiliate links placed on your site. Note that you don’t have control over these links.
2. Write an Ebook
When writing ebooks for passive income, you need to play the long game. While it requires a significant time investment up-front, it can be a fabulous passive income source for years to come.
Once your written work is ready for distribution, consider self-publishing with Kindle Direct Publishing. This will give your book a huge platform, making it available through the Kindle Store and Amazon.
Set your own prices and earn up to 70% commission on each sale.
3. Short-term Rentals
If you’ve ever considered investing in a rental property, you might consider starting with short-term rentals like Airbnb.
These rentals do require some maintenance and customer service, though the rest is quite passive. These tasks can also be outsourced to management companies if you find success in the venture.
Note that not all residences allow business activities, so keep this in mind when looking at real estate investments.
4. Long-term Rentals
Transform your basement, coach house, or investment property into a long-term passive income source. Beyond occasional maintenance, rental income is almost entirely passive.
5. Stock Photography
Are you a talented photographer looking for extra income? Consider selling stock photos to businesses and individuals.
The process is simple:
- Upload high-quality photos to a stock photo site.
- Earn a commission on each photo sold.
- Receive passive income as photos are sold repeatedly.
Top platforms include Shutterstock, Adobe Stock, Unsplash, and Stocksy.
6. Parking Space Rentals
One of the more unique passive income streams is to rent out a parking space.
Many apartment buildings are constructed without enough parking available. If you have a spot that you’re not using, you can rent it out to a resident in need. Simply advertise your space through a building community board and watch for interest!
You can even rent out stalls day by day if you live in a high-traffic area, like by a stadium or amusement park.
7. Ad Revenue
If you have an existing platform, you should be running ads for passive income. This method is great for bloggers or anyone who runs a YouTube channel. You’ll earn a percentage based on your website or video traffic.
Google AdSense is a good platform to start with, as it lets you filter the types of ads you feature.
8. Cashback + Shopping Rewards
Cashback is my favorite low-maintenance side hustle because, really, it doesn’t require extra effort (or spending) on your end.
Simply complete your daily purchases as usual, and earn cashback or gift card rewards in return. Some programs, like Fetch or Receipt Hog, will have you scan receipts to earn points. These points can then be redeemed for cash rewards.
Other programs like Honey or Rakuten simply require you to shop through their app or browser extension to earn the same kind of rewards.
Finally, you can sign up for a cashback credit card for total ease-of-use.
9. Investments
Anyone can invest, no matter their income or financial literacy. Here are a few beginner-friendly options:
- Real Estate Investment Trust (REIT): Investing in income-producing real estate like rental homes, shopping centres, hotels, etc.
- Bonds: Fixed-interest loans to companies or the government
- Individual Stocks / Dividend Stocks: Shareholder in a company, earning based on the company’s performance
- Index Funds / ETFs / Mutual Funds: Pooled investments, actively or passively managed
All investments come with some risk, so please do your research.
10. Create a Course
Online courses can be great for passive income. You create them once and then continue to earn for each new sign-up.
Share your expertise with the world on topics ranging anywhere from coding to watercolors.
11. Digital Printables
Creatives can make earnings by creating and selling digital printables. This is along the same line as selling prints, although it’s less expensive to produce, as all of your materials are digital!
Some ideas include:
Etsy is a huge (and easy-to-use) market for printables as it’s full of users looking for creative decor, crafts, and more. If you already have an established website, you can skip the Etsy fees and sell directly through your blog via Square.
12. Print-on-demand
Print-on-demand is another way to earn passive income without dealing with any shipping or inventory. Upload your unique designs to platforms like Redbubble or Spring, then earn a percentage of each purchase made using your artwork.
These platforms offer custom printed objects, including:
- Mugs
- Stationary
- Home decor
- T-shirts
- Stickers
- And more!
13. Open a High-interest Savings Account
One of the easiest passive income ideas for beginners is to open a high-yield savings account. If your savings are currently sitting in a chequing account, you’re losing money!
Instead, you could be earning through a high-interest savings account. Be aware that these accounts allow for minimal yearly transfers, so they’re best for long-term savings.
14. Rent Unused Items
If you have rarely used items you’re not ready to sell, why not rent them? Try renting tools, outdoor gear, or even baby equipment. Platforms like Hygglo make it easy.
And when you’re ready to sell, use a platform like eBay for a bit of extra income.
Related: 22 Unique Things You Can Rent for Money Online
15. License Music
Musicians can build a creative passive income stream by creating musical works and letting others use them for a fee or through royalties.
Platforms like Envato Market or EpidemicSound come with built-in audiences searching for licensed music; they can help your work get discovered and pay you a percentage of each sale.
16. Rent Storage Space
Have space? Rent it out!
Anyone with a spare garage, basement, shed, or even a backyard can rent out their space for a monthly storage fee. This is an easy passive income idea, requiring minimal maintenance on your end.
17. Vending Machine Business
A vending machine business is easily scalable, from a side hustle all the way to a full-time job. It’s beginner-friendly and quite passive once your machine is stocked.
Read this post for more on small machines that make money.
Final Thoughts: Passive Income Ideas for Beginners
These easy passive income ideas are a great start for achieving financial independence. With multiple revenue sources and a bit of entrepreneurial grit, you can start earning more while working less – talk about a win-win.
