The best passive side hustles to make more money in 2024 are:
- Local lead generation
- Rental property investment
- Dividend investing
- Invest in high-yield savings account
- Invest in Real Estate Investment Trusts (REITs)
- Invest in index funds or ETFs
- Invest in cryptocurrency
- Invest in precious metals like gold or silver
- Invest in crowdfunding projects
- Invest in a franchise business
The popularity of side hustles in the US can be attributed to various factors, including the rising cost of living, stagnant wages in some sectors, and a cultural shift towards entrepreneurialism, especially among younger generations. With 39% of working Americans engaged in side hustles, there is a clear sign that side hustles are a popular and viable supplement to regular income, as per The Experian. This number increasing to 50% among millennials suggests a growing trend, especially among younger workers. Also, 43% of Americans do a side hustle for passive income. These statistics show the importance of side hustles for over 80 million of Americans looking for a source of extra income despite having 9-5 jobs.
However, the significant gap between the average ($1,122) and median ($200) monthly income from side hustles shows a wide variance in success. This suggests that while some individuals are doing extremely well, a larger portion of side hustlers are earning relatively little. As noted by Side Hustle Nation, the primary challenges include growing the business, managing limited time, and finding the right idea. These challenges can make it difficult for you to scale your side hustles or balance them with your primary jobs. Additionally, The Hustle's report that starting a side hustle can cost around $16,000 in the first year is a significant barrier. The high initial costs highlight the importance of careful planning and financial management in starting a side hustle. It also raises questions about the sustainability and accessibility of side hustles for individuals with limited capital.
This article will show you the 52 passive side hustle that you can try to make an extra income to cover some of your expenses. We’ve conducted a research to present you each passive side hustle with statistics about the opportunity, potential income and even each disadvantage. Also, we will reveal to you the 8 awesome tips in starting side hustle for passive income. At the end, we will show you the best passive side hustle out there.
What Are Passive Side Hustles?
Passive side hustles are ways to earn money outside a regular job without continuous, active work. It involves setting up a source of income that requires minimal ongoing effort. Examples include renting out a property, earning from stock dividends, writing a book, creating an online course, monetizing a blog or YouTube channel, or starting a lead gen biz.
52 Passive Side Hustles
Side Hustles For Passive Income Investment
1. Rental Property Investment
Investing in rental property is a famous passive side hustle because of its unique combination of steady income and long-term capital appreciation. Unlike many other investments, real estate not only provides regular rental income but also increases in value. It offers a dual avenue for financial growth. You can hire management companies to handle everything from tenant screening to maintenance, transforming what could be an active business into a more hands-off investment. The opportunity for rental property investment is underscored by robust market trends. For instance, Zillow reported that the average monthly rent crossed the $2,000 threshold in June 2022. This surge in rental rates reflects a growing demand for rental properties.
For potential income, rental property investment can be quite rewarding. According to The Motley Fool, investors can expect to earn between $27,500 and $121,000 annually. However, these figures hinge on the investor's commitment, the number of deals managed yearly, and the time devoted to this venture. This income potential, balanced with the right approach, can make rental property a profitable passive side hustle. Despite its advantages, rental property investment isn't without its challenges. One major drawback is the lack of liquidity; real estate is not a quickly convertible asset like stocks or bonds. Additionally, ongoing expenses such as maintenance costs and the possibility of facing difficult tenants or a decline in neighborhood appeal can affect the profitability and management ease of rental properties.
2. Dividend Investing
Dividend investing is an excellent passive side hustle because it offers a steady income stream with minimal active involvement. This form of investing is passive because once you invest in dividend-paying stocks, the companies do the heavy lifting. They generate profits and share a portion of these as dividends with you. This means your money is working for you. It yields returns as regular dividend payments. According to the Janus Henderson Global Dividend Index, global dividends reached a remarkable $568 billion in the second quarter of 2023, growing by 6.3%. This indicates a robust and expanding market.
Dividend investing can be lucrative. As per Yahoo Finance, while building a portfolio that generates significant monthly dividends requires effort, the result can be a substantial and consistent income stream. For example, assembling a portfolio yielding $1,000 monthly in dividends is achievable, but demands strategic planning and investment. However, Wealthy Education highlighted the double taxation on dividends. You receive dividends after the company has already paid taxes on its profits, and these dividends are then subject to personal income tax. Additionally, dividend investing isn't entirely passive; it requires initial research to select the right stocks and ongoing monitoring to ensure continued profitability.
3. Invest In High-Yield Savings Account
Investing in high-yield savings accounts is a smart passive side hustle because of its simplicity and safety. These accounts provide a higher interest rate compared to traditional savings accounts, making them an attractive option for earning passive income. The process becomes passive once you deposit your money; the account accrues interest over time without requiring active management or additional effort from you. There is a significant opportunity in high-yield savings accounts. According to Fortune, as of March 2023, while the national average savings rate stands at a modest 0.37%, high-yield savings accounts offer interest rates between 4% to 5% or even higher. This substantial difference shows the potential of these accounts as a more profitable alternative to conventional savings options.
In terms of potential income, high-yield savings accounts can generate notable returns. Bankrate shows that an investment of $100,000 in an account with a 4.85% interest rate can yield approximately $4,850 in a year, amounting to $104,850. This example illustrates the earning potential of these accounts. It makes them a viable option for those looking to grow their savings passively. However, there are disadvantages to consider. High-yield savings accounts may have variable interest rates, meaning the rate can change based on market conditions or the financial institution's policies.
4. Invest In Real Estate Investment Trusts (REITs)
Investing in Real Estate Investment Trusts (REITs) is a good passive side hustle because it allows you to engage in real estate without the need to buy, manage, or finance properties directly. The opportunity to invest in REITs is noteworthy. As Cohen & Steers' research shows, over a 15-year period, actively managed REITs have shown an impressive annualized return of 10.6%. This performance highlights the long-term growth potential of REITs.
In terms of potential income, investing in REITs can yield significant returns. An analysis by a Quora user suggests that a good annual yield from REITs is around 6%. Translating this into monthly income, an investment of $5,000 in REITs might generate around $25 per month. However, it's important to consider the disadvantages. The value of REITs can be affected by economic and market conditions, including changes in interest rates. As with any investment tied to the real estate market, REITs can experience fluctuations in value, potentially affecting returns.
5. Invest In Index Funds or ETFs
Investing in index funds or Exchange-Traded Funds (ETFs) is a great passive side hustle because once you invest in an index fund or ETF, it automatically adjusts to mirror the changes in the index it tracks. The Market Hustle reports that investors can expect an average annualized return of 7-10% over a ten-year period from ETFs. This steady growth potential makes them an attractive option for long-term passive income.
The returns in index funds or ETFs can be substantial. Investopedia notes that a $10,000 investment in an S&P 500 ETF at the beginning of 2001 would have grown to approximately $45,227 by the end of 2022. This example highlights the power of compounding returns over time, making index funds and ETFs a viable strategy for growing wealth passively. However, not all ETFs are passively managed; some are actively managed, involving a fund manager aiming to outperform the market. These actively managed funds often come with higher fees because of the need for professional management.
6. Invest In Cryptocurrency
Investing in cryptocurrency is a known passive side hustle because of its high growth potential and the ease of entry into the market. Cryptocurrencies offer a unique opportunity for passive income as they can appreciate in value over time, and you can benefit from this appreciation without actively managing their investments. Also, the opportunity in the cryptocurrency market is huge. Statista projects that revenue in the cryptocurrencies market will reach approximately US$18.0 billion in 2023. This projection highlights the growing interest and potential profitability in the cryptocurrency space, making it a promising area for investment for you.
A report from Medium suggests that a cryptocurrency trader in the United States can earn about $113,000 annually. This figure illustrates the potential earnings from actively trading cryptocurrencies, although it's important to note that such income depends on market conditions and the trader's expertise. Additionally, one major concern is the security issues related to storing cryptocurrencies off-chain, where they may be susceptible to theft or loss. Additionally, cryptocurrency markets are known for their extreme volatility. The prices of digital currencies can fluctuate wildly, leading to potential losses and gains.
7. Invest In Precious Metals Like Gold or Silver
Investing in precious metals like gold or silver is an awesome passive side because it is tangible assets that hold value. The passive aspect comes from the buy-and-hold strategy, as once you acquire these metals, they require minimal ongoing management. Juerg Kiener, managing director, and chief investment officer of Swiss Asia Capital, suggests that gold prices could surge to $4,000 an ounce in 2023, especially in times of economic uncertainty. This projection highlights the potential for significant price appreciation in precious metals.
Precious metals have historically shown consistent returns. According to Unbound Investor, over the past 100 years, these metals have averaged yearly returns of 3-4%, with periods of higher returns reaching 15-20% over a decade. While the returns may not be as flashy as some other investments, their reliability makes them a sensible choice for passive income seekers. However, there are disadvantages to consider. Precious metals, unlike bonds and stocks, do not generate interest or dividend payments. This means they may not be suitable for investors who require immediate income from their investments.
8. Invest In Crowdfunding Projects
Investing in crowdfunding projects is a nice passive side hustle because it offers opportunities for both diversification and potential financial growth. Crowdfunding enables you to take part in various projects and ventures with no active involvement in their day-to-day operations. Statista reports that there were 6,455,080 worldwide crowdfunding campaigns in the previous year. This indicates the growing popularity and availability of investment opportunities in crowdfunding. It makes it a viable option for passive investors seeking diversity in their portfolios.
Successful crowdfunding campaigns can yield attractive returns. Statista reveals that the average successful crowdfunding campaign raised approximately $28,656. This shows the income potential for you who choose the right projects to support. However, crowdfunding projects carry risks, such as the potential for project failure, which can cause the loss of invested funds. Additionally, not all crowdfunding platforms are well-regulated, which may expose investors to fraudulent schemes or projects with insufficient due diligence.
9. Invest In A Franchise Business
Investing in a franchise business is a perfect passive side hustle because of its ability to capitalize on an existing brand and operational framework. Franchisors provide comprehensive training, support, and guidance, allowing franchisees to step into a proven system. According to Neighborly Franchising, veterans account for about 14% of all franchisees. As of 2021, veterans own 66,000 franchises, contributing $41 billion to the GDP. This statistic highlights the inclusivity of franchising as a passive income opportunity.
In terms of potential income, franchise owners can earn substantial returns. A survey by Franchise Business Review shows that the average annual income of franchise owners is approximately $80,000. While individual income may vary based on factors such as the franchise brand and location. However, there are notable disadvantages to consider. Franchise startup costs can vary significantly, ranging from as low as $10,000 to as high as $5 million, with most falling between $100,000 and $300,000, as reported by ADP. The actual investment required depends on the industry, location, and type of franchise.
10. Invest In Agriculture Or Farmland
Investing in agriculture or farmland is another option for passive side hustles because of the relatively stable nature of the agricultural sector. Unlike other industries that can be significantly affected by technological shifts or fashion trends, the demand for food and agricultural products is more consistent and less susceptible to such fluctuations. This stability offers a level of security for investors. Also, Francisco Scott and Ty Kreitman have pointed out that despite a less than optimistic general outlook, they noted that 30% of bankers still expected land values to rise in 2023, with a majority expecting no significant change.
You can check out platforms like Farm Fundr. With a minimum investment of $10,000, Farm Fundr offers equity investments in farmland and agricultural facilities, with advertised annual returns between 13% and 15%. These returns are generated partly from crop sales and partly from the eventual sale of the property. However, agriculture and farmland investments are not entirely passive.It require a level of oversight and understanding of the agricultural market. Moreover, these investments can be subject to environmental risks, such as extreme weather or pests, which can affect yields and, consequently, investment returns.
11. Invest In Renewable Energy Projects
Investing in renewable energy projects is a unique passive side hustle because of global shifts toward sustainability and the increasing demand for clean energy. As the world moves away from fossil fuels, renewable energy sources like solar, wind, and hydro are gaining prominence. This trend not only supports environmental sustainability but also presents a growing market opportunity for you. The opportunity in this sector is significant. According to Statista, total new investment in renewable energy reached approximately 495 billion U.S. dollars worldwide in 2022, marking a 17% increase from the previous year. This substantial investment shows strong confidence in the sector's growth and profitability.
In terms of potential income, the returns can be quite attractive. Bloomberg reported that a global portfolio of renewable power companies yielded an average annual return of 18% in the decade leading up to December 2020. This significantly outperformed the 4.7% return from fossil-fuel stocks during the same period. These statistics underline the lucrative nature of investing in renewable energy, especially when compared to more traditional energy investments. However, the initial cost of investment can be high, and the return on investment might be long-term. It requires patience and a tolerance for potential market fluctuations.
12. Invest In Art Or Collectibles
Investing in art or collectibles is a great passive side hustle because it differs significantly from more traditional investments, like stocks or real estate. Unlike stocks or bonds, the value of art and collectibles is not directly tied to financial markets. After the initial purchase, the art or collectible item requires little to no active management.Your role is primarily to wait as the item potentially increases in value. DollarSprout notes that art has consistently delivered average returns of 7.6%. Its stability, being unaffected by financial market fluctuations, makes it a more predictable investment compared to more volatile assets.
The potential for income in this field can be quite significant. A striking example reported by CNBC highlights an individual from Indiana who purchased a painting for just 50 cents at a garage sale, only to discover over a decade later that it was worth $10,000. Such stories, while not the norm, illustrate the potential for high returns on investment in this side hustle. However, Investopedia points out that the market for art and collectibles can be highly volatile at some point. Values fluctuate significantly, and there is no guarantee of appreciation. Additionally, these investments rarely generate income until sold. There is also the risk of buying counterfeit items, which can render an investment worthless.
Work From Home Side Hustles Passive Income Ideas
13. Create And Sell Online Printables
Creating and selling online printables is a creative passive side hustle because it allows you to generate income from your design skills and ideas. The digital nature of printables–ranging from planners and worksheets to art and educational materials–means they can be created once and sold repeatedly with no physical inventory or shipping. This side hustle becomes passive after the initial creation phase. Once you design and upload your printable product to an online platform like Etsy, it can be sold multiple times without further intervention. LinkedIn highlights that selling printables online has become a popular and lucrative way for creative individuals to earn money from home in recent years. The rise of digital marketplaces and ease of online distribution has opened up this field to a broad audience.
In terms of potential income, the earnings can vary but are often promising. According to Gelato, selling printables on Etsy can be profitable as beginners can make upwards of $400 per month. For those with an established presence, monthly earnings can exceed $4,000. This shows the potential for substantial income, especially as one's online store gains more visibility and popularity. However, one of the major drawbacks is the competition. With over 7.47 million sellers, standing out in the market can be tough. Additionally, to maintain and grow your business, you'll need to keep designing new printables to satisfy customer demand and stay relevant. This ongoing need for new content means that, while the income is passive to some extent, it still requires a degree of active involvement and creativity.
14. Create And Sell Online Courses
Creating and selling online courses is a valuable passive side hustle because of the ever-increasing demand for online learning. People are continually seeking to improve their skills or learn new ones, and online courses offer a convenient and accessible way to do so. According to Statista, the global e-learning market is expected to reach a staggering $375 billion by 2026. Once the course is created and uploaded to an online platform like Udemy, Coursera, Teachable, and Skillshare.The primary work involves planning the course structure, creating content like videos or written materials, and setting up assessments if applicable. After this initial setup, the course can sell repeatedly without further input, making it a potentially lucrative source of passive income.
As for potential income, the earnings can be quite variable. For instance, in Udemy, some instructors earn a few hundred dollars monthly, while top instructors can make significant income, sometimes in the tens of thousands of dollars. The key is to create high-quality, engaging content and to market your course effectively. However, there are challenges to this side hustle. The online learning market is highly competitive. To stand out, you must not only develop high-quality content but also continuously update their courses to keep them relevant and engaging. This need for ongoing updates and possibly creating new courses means that while the income can be passive, it requires continuous effort and engagement.
15. Create And Sell Digital Products (ebooks, templates, music, etc.)
Creating and selling digital products, such as ebooks, templates, and music, is highly regarded as passive side hustle because of the broad scope and diverse range of products you can create. From instructional ebooks to artistic templates and original music, the possibilities are vast. Additionally, digital products have low overhead costs since there's no need for physical materials or storage. This venture becomes a passive side hustle as it primarily requires effort upfront during the creation and initial marketing phase. Once your digital product is created and listed on a suitable platform like Etsy or Amazon, it can be sold multiple times with no reproduction.
The opportunity in this sector is significant. As reported by Statista, eBook sales in the US alone amounted to 1.1 billion dollars in 2021, illustrating the growing market for digital products. This upward trend shows a promising market for new creators like you looking to introduce your digital products. The potential income from selling digital products can vary. While it's possible to earn substantial amounts, it's not guaranteed. You can check platforms like Amazon for ebooks, Etsy for templates, and Bandcamp for music. However, SamCart reveals that selling digital products has the risk of piracy. There's a possibility that others might duplicate your product and sell it, which can affect your sales and profitability.
16. Develop And Sell Mobile Apps
Developing and selling mobile apps is a fantastic passive side hustle because of the ever-growing reliance on smartphones and the continuous demand for new and innovative apps. With the widespread use of mobile devices, there is a constant need for apps that entertain, simplify tasks, or provide unique services. This demand creates an expansive market for app developers. The US Bureau of Labor Statistics expects that the demand for developers will increase by 17% to 24% by 2026. The surge in demand for innovative apps across Android and iOS platforms underscores the growing need for skilled developers.
In terms of potential income, the earnings from mobile app development can be quite substantial. According to BuildFire, 16% of Android app developers and 25% of iOS app developers earn over $5,000 per month from their apps. These figures show the lucrative potential of a successful app in the market. Platforms such as Google Play Store and Apple's App Store are the primary channels for selling and distributing these apps. However, developing an app can be costly and time-consuming. It requires significant upfront investment in terms of time, skill, and sometimes capital. Moreover, mobile apps require ongoing maintenance, including updates for new content and technological improvements, to stay relevant and functional. This ongoing need for maintenance and updates means that this side hustle is not entirely hands-off.
17. Operate an E-commerce Store
Operating an e-commerce store is increasingly popular as a passive side hustle because of the growing trend of online shopping. With the internet becoming more accessible, consumers are turning to online stores for convenience and variety. According to Tidio, a large percentage of Americans shop online. In 2022, there were 268 million digital buyers in the United States, a number projected to rise to 285 million by 2025. This growth shows a robust market for e-commerce businesses. This side hustle involves setting up an online store, sourcing products, and establishing a system for order fulfillment and customer service. Once these elements are in place, the store can generate sales with relatively little day-to-day involvement, especially if you use dropshipping or third-party fulfillment services. Platforms like Shopify, WooCommerce, and Amazon offer tools and infrastructure to set up and manage your e-commerce store efficiently.
ZipRecruiter reports that the average hourly pay for an e-commerce business in the United States is around $55.04. However, this figure can vary widely based on factors like the type of products sold, the scale of the operation, and the effectiveness of your marketing and sales strategies.However, there is an intense competition in the e-commerce space. Standing out among many online stores requires extra effort in marketing and audience engagement. Additionally, keeping up with consumer trends, managing inventory, and ensuring customer satisfaction are ongoing tasks that make this hustle less than fully passive.
18. Create And Sell WordPress Themes Or Plugins
Creating and selling WordPress themes or plugins is a highly regarded passive side hustle, mainly because of the extensive use of WordPress as a content management system. WordPress powers a significant portion of websites globally, creating a substantial market for themes and plugins that enhance functionality and design. According to Ecwid, the United States alone has 3.8 million WordPress users, showing a large potential customer base for themes and plugins. This widespread usage underscores the significant market for WordPress-related products.
You'll need to develop a theme or plugin, which involves programming and design skills. Once the product is created and tested, it can be sold on platforms like ThemeForest or the WordPress Plugin Directory. After the initial development and launch, these products can generate income with minimal ongoing work, especially if they don't require frequent updates or support. As for potential income, it can be quite lucrative. Medium suggests that a well-designed plugin can generate about $1,000 monthly. However, knowledge in programming languages, such as PHP (not Python, as WordPress is primarily based on PHP), is essential. Additionally, one of the key challenges is marketing your product. Getting your theme or plugin noticed among the thousands available requires strategic marketing efforts, which can demand ongoing time and resources.
19. Create And Sell Online Memberships Or Subscription Services
Creating and selling online memberships or subscription services is gaining popularity as a passive side hustle because of the growing preference of consumers for subscription-based models. CNBC reports that a significant number of American consumers underestimate their subscription spending by $100 to $199 each month. This model's appeal lies in its ability to provide a steady, recurring income stream. By offering exclusive content, services, or products on a subscription basis, you can build a loyal customer base that generates consistent revenue.
To make this venture passive, you need to set up a system that automates the subscription process, including sign-ups, renewals, and payments. Tools like Patreon, MemberPress, or Substack can manage memberships and subscriptions efficiently. Once the system is in place, it can generate revenue with limited ongoing maintenance, though content creation and customer interaction may require attention.
As for potential income, according to an Online Membership Industry Report, subscription rates vary widely. About 22% of sites charge between $15 and $24 per month, 23% charge between $50 and $99, and 44% charge between $25 and $44. These figures show that with the right product or service, there's potential for substantial monthly earnings. However, one major issue is market saturation. Subscription Economy Billing notes that, by 2018, there were around 7,000 subscription box companies globally, with a significant portion in the United States. Finding and sustaining a unique value proposition is vital because of intense competition. Additionally, you may need to update or refresh your offerings regularly to ensure continued success, which can make this side hustle less than fully passive.
20. Buy And Sell Stocks Or Options
Buying and selling stocks or options is passive side hustle because of the potential for substantial returns and the flexibility it offers. Stocks represent ownership in a company, while options are contracts that give the right, but not the obligation, to buy or sell a stock at a specified price within a certain period. For long-term investments, you buy stocks or options and hold them. You expect their value will increase. Automated trading can involve using robo-advisors or setting up stop-loss and take-profit orders. It reduces the need for constant market monitoring. Platforms like E*TRADE, Robinhood, or TD Ameritrade provide user-friendly interfaces for both beginners and experienced traders.
According to Statista, as of 2023, the stock markets in the United States make up nearly 60 percent of global stocks, showing the vastness and liquidity of the market. This size and diversity provide many opportunities for investment. Regarding potential income, the earnings from trading stocks or options can vary widely. Investing Journal notes that a moderately successful options trader might earn between $10,000 to $20,000 annually. However, this income is not guaranteed and depends on market conditions, investment strategies, and the individual’s trading skills.
21. Develop An Alexa Skill
Developing an Alexa skill is a promising passive side hustle because of the widespread use and growing popularity of Amazon's Alexa. With Alexa available on 60,000 devices and a presence in 100 million devices globally, the platform offers vast outreach. In the U.S., Alexa holds about 66% market share, and 25% of U.S. households own at least one Alexa device.
Additionally, the potential income for developing Alexa skills is significant. Alexa skill developers in the U.S. can earn an average of $50.40 per hour. This rate shows a lucrative opportunity for those with the skills to create and offer Alexa-enabled functionalities. However, it requires specific technical skills, including programming and an understanding of user experience design. Moreover, maintaining and updating the skill to ensure it remains relevant and functional demands ongoing effort.
22. Develop And Sell Software-as-a-Service (SaaS)
Developing and selling Software-as-a-Service (SaaS) is a good passive side hustle because the global SaaS market is on a significant growth trajectory. According to LinkedIn, in 2022, it was valued at $157 billion, and it's projected to reach $307 billion by 2026. This growth is driven by the increasing demand for cloud-based software solutions that enhance business efficiency and productivity. This expanding market offers ample opportunities for you.
This industry serves businesses of all sizes and industries. It provides a broad customer base for SaaS products. As for potential income, Cleart suggests that even starting small with a SaaS business charging $10/month per user, acquiring 1,000 users can generate $10,000 per month. You can use several platforms and tools are available to help develop and launching your SaaS product, such as Amazon Web Services (AWS) or Google Cloud. However, you need to know that developing and maintaining SaaS software often requires ongoing updates, bug fixes, and improvements to remain competitive.
23. Start A Consulting Or Coaching Business
Starting a consulting or coaching business is an exciting passive side hustle because it leverages the high demand for coaching services. According to iPEC, there are 1.5 million monthly searches for life coaches, business coaches, and executive coaches. This shows a significant opportunity for you to tap into a growing market for coaching expertise. As for potential extra income, data from Foundr shows that in 2023, consultants make an average of $7,091 per month, which equates to $85,092 annually.
You can start your consulting or coaching business on platforms like LinkedIn, or use website builders like WordPress or Wix to create your online presence. Offer valuable content through blog posts, webinars, or online courses to attract potential clients. Automate scheduling and payments with tools like Calendly or PayPal. However, it may not be entirely passive. While you can automate many aspects of your business, coaching and consulting often require active engagement with clients. You'll need to schedule sessions, provide personalized guidance, and address client needs promptly.
24. Create and Sell Merchandise or Branded Products
Creating and selling merchandise or branded products is an excellent passive side hustle because it appeals to wide entrepreneurs like bloggers, coffee-shop owners, artists, and game production companies, as stated by Merch38. Whether you have a dedicated following or a unique brand, selling merchandise allows you to monetize your influence or creativity. You can utilize print-on-demand services like Printful or Printify to handle production and shipping. Build an online store through platforms such as Shopify or WooCommerce to showcase and sell your products.
Brands, influencers, and content creators have found significant revenue streams through merchandise sales. According to NetCredit, some top earners, like Harry Styles, have generated millions in revenue from merchandise sales. The top 10 highest earners on platforms like Shopify have collectively made nearly $145 million from merchandise sales. However, it requires ongoing marketing and brand management to sustain sales. While the production and shipping processes can be automated, maintaining customer engagement and driving traffic to your store require active effort.
25. Peer-to-Peer Lending
Peer-to-peer (P2P) lending is a notable passive side hustle because it allows you to lend money online without needing large amounts of capital. Once you invest, the returns from interest payments can provide a steady cash flow with minimal effort. The opportunity for P2P lending is significant. As of 2020, over 126 million Americans were using P2P lending apps, and LendingTree's research shows that 84% of consumers have tried P2P lending, with 44% using it weekly.
In terms of potential income, FinModelsLab reports that P2P lending business owners in the U.S. can earn between $50,000 and $150,000 annually. You can check popular platforms for P2P lending, including Lending Club and Prosper. However, P2P lending is not without disadvantages. It's not entirely passive, as it requires initial research and ongoing monitoring. Additionally, there's the risk of borrower default, and the returns might not be as consistent as other investments.
26. Self-Publish Books On Amazon
Self-publishing books on Amazon is an appealing passive side hustle because of its accessibility and scalability. Unlike traditional publishing, Amazon Kindle provides a platform for anyone to publish their books with ease. This democratization of publishing allows individuals to tap into the vast e-reader market and potentially reach millions of readers. Statista indicates that Amazon Kindle has over 30 million active users in the United States alone. It is 72% of the e-reader market. Amazon's extensive reach means your books have the potential to reach a broad audience, both nationally and internationally. With Amazon's reputation and user base, this platform offers significant exposure for you.
According to Self Publishing, self-published authors have the potential to earn $10,000 or more per month by publishing their books on Amazon. However, while it offers a passive income stream, writing, editing, and marketing your books can be time-consuming and challenging. Statistics from Medium reveal that while over 82% of Americans aspire to write a book, fewer than 1% finish and publish one. Additionally, the sheer volume of books on Amazon, with over 48.5 million listings, including 12 million Kindle eBooks, highlights the intense competition and the challenge of standing out.
Beginner Passive Income Side Hustles
27. Affiliate Marketing
Affiliate marketing is a well-known passive side hustle because of its scalability and low entry barriers. This marketing strategy involves promoting products or services and earning a commission for each sale or lead generated through your referral. The appeal lies in the ability to earn money by leveraging existing online platforms and audiences without the need to produce or stock products. The opportunity in affiliate marketing is substantial. According to Authority Hacker, 20% of brand marketers consider affiliate marketing their most successful channel. To make affiliate marketing a passive side hustle, you'll need to establish a platform, like a blog, YouTube channel, or social media account, where you can share affiliate links. By creating content that drives traffic to these links, you can earn commissions passively.
Over time, as your content continues to attract viewers or readers, it can generate a steady stream of income with minimal additional effort. In terms of potential income, affiliate marketing can be quite lucrative. LinkedIn notes that top affiliate marketers might earn between $10,000 and $100,000 per month or more. Authority Hacker adds that the average affiliate marketer earns around $8,038 per month. This income varies depending on factors such as the niche, the quality and reach of your platform, and the commission structures of the affiliate programs. You can check Amazon Associates, ShareASale, and Commission Junction to start in affiliate marketing. However, there are disadvantages to consider. The affiliate marketing model has a high failure rate, with 90%-95% of people failing in this endeavor.
28. Create And Sell Stock Photos Or Graphics
Creating and selling stock photos or graphics is a viable passive side hustle, especially in today's content-driven digital landscape. The primary reason for its effectiveness is the constant demand for high-quality visual content. Hubspot reports that 50% of marketers use video in their strategies, closely followed by images at 47%. Venngage's survey reveals that original graphics and stock photos are the most used types of visual content in marketing. With the rise of digital marketing, businesses and content creators continuously seek engaging images and graphics to enhance their online presence.
Once your content is uploaded to platforms like Shutterstock, Getty Images, or Canva, it can be sold multiple times. It can generate income with no additional effort on each sale. This makes it an ideal passive income stream for photographers and graphic designers. In terms of potential income, it can vary widely based on factors like the uniqueness of your work and its demand. For instance, Diana Mironenko earns between USD 20 to USD 700 per photo by contributing travel and fashion photos to various websites. However, there are disadvantages to consider. Starting a stock photography business can be costly. According to Arina Photography, initial costs range from around $5,000 to $12,000, depending on factors like the quality of the camera and other equipment. This investment can be higher for those aiming for top-tier quality.
29. Start A Blog and Monetize It
Starting a blog and monetizing is a smart passive side hustle because it has the potential to generate income through various channels, like advertisements, affiliate marketing, subscriptions, and sponsored content. You need to create valuable and evergreen content. This content should continue to attract readers and generate income long after it's published. By strategically using affiliate links and ad networks, you can earn money as your audience grows and interacts with the content.
According to Ryan Robinson, the average blogger makes approximately $51,971 per year. However, it's important to note that this income may vary widely depending on factors like niche, audience size, and monetization strategies. Some successful bloggers earn significantly more. But, you are competing with over 32 million bloggers in the United States alone, according to DemandSage. This saturation means that standing out and gaining a substantial audience can be challenging.
30. Buy And Sell Domain Names
Buying and selling domain names is a unique passive side hustle because you can tap on the constant demand for it. Every day, Siteefy reveals that a staggering 252,000 new websites emerge. Industry leaders like GoDaddy, Namecheap, and Tucows Domains dominate the domain registrar space, showing the vast market share and potential for profit. According to Hostinger, beginners can expect to earn between $100 to $10,000 by flipping domains. You can consider platforms like Sedo, Flippa, or GoDaddy auctions to start your journey.
However, domain flipping is not risk-free. It may involve holding onto domains for extended periods without guaranteed returns. The domain market can be speculative, and prices can fluctuate, affecting your profit margins.
31. Create a Podcast
Creating a podcast is an interesting passive side hustle because it has seen consistent growth. According to Exploding Topics, the number of US podcast listeners has been increasing since 2013, with about 140 million listeners. This figure is projected to reach 163 million in 2023. It showcases a continuously expanding audience base. You can record episodes in advance and schedule them for release, giving you control over your workload. You can have various revenue streams, including advertising, sponsorships, merchandise sales, and listener donations.
This diversity in income sources provides stability and potential for growth. According to What To Become, podcasters can earn anywhere from around $700 a month to $13,000 or even several million dollars. Earnings depend on factors such as the number of downloads and the type of revenue streams chosen. For example, a podcaster with 10,000 downloads per episode may generate an average of $500 to $900 monthly. To start your podcasting journey, you can use platforms like Spotify, Podbean, or YouTube for hosting and distribution. While podcasting can be passive in the sense that episodes can be pre-recorded, it still requires time for planning, recording, editing, and promotion.
32. Start A YouTube Channel
Starting a YouTube channel is a creative passive side hustle because of the vast audience potential. The United States has approximately 239 million YouTube viewers, making it the second-largest user base globally. This broad reach can translate into significant viewership for your content. Unlike live streams or social media posts, YouTube videos are evergreen. Once uploaded, they can continue to attract views and generate income over time. It allows for a passive income stream.
YouTube offers various ways to monetize your channel, including ad revenue, sponsored content, affiliate marketing, and merchandise sales. These income streams provide diversity and stability. According to ZipRecruiter, the average annual salary for a YouTuber in the United States is approximately $60,004 per year. On an hourly basis, this translates to around $29.05 per hour or well over $100 per day for a 40-hour work week. The income potential can vary widely depending on your niche and audience size.
To get started, you can use platforms like YouTube's Creator Studio or consider joining affiliate programs relevant to your content. However, with over 51 million YouTube channels, the platform is highly competitive.Also, maintaining a successful channel causes a consistent content release schedule. While videos can continue to generate views over time, achieving initial success may require significant effort and time investment.
33. Create And Sell Print-On-Demand Products
Creating and selling print-on-demand products is a passive side hustle that offers unique advantages like low initial investment and automated fulfillment. Unlike traditional retail businesses, starting a print-on-demand venture requires minimal upfront costs. You can create custom designs and sell products with no inventory or large capital investments. Additionally, print-on-demand platforms like Printful and Printify handle the production, packaging, and shipping of products. This automation reduces the time and effort required, making it a potentially passive income stream.
According to market research by Grand View Research, the print-on-demand industry in the United States was valued at $1.89 billion in 2022. This indicates a substantial market share and growth potential for those entering this space. An example of the income potential is showed by Ryan Hogue, who began his print-on-demand side hustle in 2016 and now earns $14,000 per month in passive income. However, according to Printful, print-on-demand companies collaborate with various suppliers to source products and materials, such as fabric. This complex supply chain can lead to occasional product unavailability or out-of-stock items, potentially affecting your business model and customer satisfaction.
34. Write And Publish An Ebook
Writing and publishing an ebook is a passive side hustle because of residual income and flexible schedule. Unlike traditional employment, once you publish an ebook, it continues to earn royalties over time without requiring constant effort. You can write and publish at your own pace, allowing you to maintain other commitments while earning from your ebook sales. After writing and publishing your ebook on platforms like Amazon Kindle Direct Publishing (KDP) or Smashwords, it's available for purchase by readers. You earn royalties on each sale, and the platform handles the distribution and payment processes, making it a hands-off endeavor once published.
Additionally, according to Pew Research, 75% of US citizens read at least one book in the last year, regardless of the format. This indicates a significant and enduring market for ebooks. In terms of earning potential, ReedsyBlog says that some authors who use Amazon KDP to publish their ebooks might earn $1000 or more per month. However, according to Toner Buzz, 191 million ebooks were sold in the United States in 2020. While this shows a sizable market, it also implies significant competition. Achieving visibility and sales for your ebook may require active marketing efforts, which can be time-consuming.
35. Start A Dropshipping Business
Starting a dropshipping business can be a passive side hustle because it requires relatively low upfront investment compared to other businesses. You don't need to buy and store inventory, which saves you money and space. Als , it can be managed from anywhere with an internet connection which provides flexibility and convenience. To start dropshipping business, choose a niche or product category to focus on. Next, find reliable suppliers who offer dropshipping services. You need to create an online store or use e-commerce platforms like Shopify or WooCommerce to set up your store. Then, market your products through digital marketing channels like social media, email marketing, and search engine optimization (SEO). As orders come in, your suppliers will ship the products directly to your customers.
You'll earn a profit from the price difference between what you charge and the supplier's cost. The opportunity for dropshipping is significant, even though the success rate hovers around 10 to 20%, according to Top Dropshippers. In terms of potential income, successful dropshipping businesses can make anywhere between $50 to $5,000 in daily profit, as reported by Bluecart. The income varies depending on the niche, product selection, marketing strategy, and the size of your customer base. It's crucial to choose the right products and continually optimize your marketing efforts to maximize your income potential. Popular platforms like AliExpress, SaleHoo, and Oberlo can help you find profitable products to dropship. However, OneCommerce reveals that only 10% of dropshippers are profitable, while others struggle to compete, often reducing their profit margins to stay afloat.
36. Create And Sell Handmade Crafts Or Products (Etsy)
Creating and selling handmade crafts or products on Etsy can be a passive side hustle because it allows you to tap into a market that values uniqueness. According to Ask Your Target Market, 81% of buyers choose handmade items because they appreciate the truly unique nature of the products. Additionally, 51% of customers like that buying handmade items supports small businesses, and 38% prioritize the quality behind handmade products. These factors make Etsy an attractive platform for passive income.
The statistics show that there is a demand for unique, high-quality handmade products. While the exact income can vary, according to Moosend, a successful seller on Etsy can make between $43,000 and $46,000 per year on average. This income can be achieved through careful product selection, effective marketing, and a dedication to delivering quality craftsmanship. However, what makes it not entirely passive is the need to create handmade crafts once customers place orders. This means you'll have to invest time and effort in crafting and fulfilling orders.
37. Start Vending Machine Business
Starting a vending machine business is an awesome passive side hustle because it provides convenience to a vast consumer base. According to the National Automatic Merchandising Association (NAMA), approximately 100 million Americans use vending machines daily. Whether it's a quick snack to satisfy hunger or a late afternoon energy boost, vending machines cater to these needs. This side hustle can become passive through strategic management and location choices. By placing well-stocked machines in safe, high-traffic locations, you can generate consistent income without constant oversight.
With regard to how much money you can make, according to Nerdwallet, the average vending machine earns $35 per week. However, machines placed in high-traffic, well-stocked locations can generate over $400 per month. Lakinya Francis, creator of iKrave Vending, shared that she started vending machines as a hobby. After a year, she converted her side hustle to a whooping $10,000 per month. Despite its passive potential, there are disadvantages to consider. The startup costs for vending machines can range from $10,000 to $30,000, depending on the type of machine and initial stock. Additionally, maintaining a successful vending machine business may require daily monitoring to restock products that have been consumed.
38. Create And Sell Online Templates
Creating and selling online templates is a passive side hustle that taps into a substantial market of active buyers. According to Statista, Etsy had 96.34 million active buyers in 2021, showing a vast potential customer base. Additionally, there is a high demand for various types of templates, making it possible to generate a steady stream of passive income. Templates for Canva are especially popular. You can sell your templates on platforms like Etsy, Creative Market, or your own website.
The data from Etsy Growing Your Craft shows that the average price for a Canva template on Creative Market is $16, while on Etsy, it's $12. If you sell an average of 10 templates per month on Creative Market, you can expect to earn $160 per month. However, while templates can generate recurring income, you may need to update and maintain them periodically to stay competitive. Additionally, the template market can be competitive. It may require you to invest time in marketing and optimizing your listings to attract buyers.
39. Sell On Shopify
Selling on Shopify is a known passive side hustle because Shopify boasts a significant presence in the United States, with approximately 62% of its stores located there. This means you have access to a vast customer base. Furthermore, Shopify merchants are expected to attract over 700 million buyers this year. It shows a substantial opportunity for your sales and revenue. You may begin by setting up your online store and sourcing the products you want to sell. Next, focus on optimizing your website for conversions, ensuring that potential buyers have a seamless shopping experience.
Automation is key to making it passive. You can use Shopify apps and tools to streamline order processing and handle customer service tasks. You can also explore dropshipping, a method where suppliers manage inventory and shipping, reducing your hands-on involvement.On average, a Shopify store can generate a realistic monthly income ranging from $1,000 to $1,500, with profit margins typically between 10% and 20%. However, while automation can handle many tasks, you may still need to monitor your store and address occasional customer inquiries or issues. Therefore, it may not qualify as a fully passive income source, as some ongoing effort is necessary to maintain and grow your business.
40. Download A Passive Income App
Downloading passive income apps has gained popularity as one of the go-to passive side hustles in recent years. Once you've installed and set up the app, it requires very little ongoing effort on your part. For instance, apps like S'Mores Lockscreen, MobileXpression, Earnyh, and Honeygain run in the background of your device. It collects data or displays ads while you go about your daily activities. This means you can earn money without actively dedicating your time.Furthermore, the ease of getting started with passive income apps is a significant advantage. All you need to do is download the app, create an account, and let it do its thing. There's no need for specialized skills or extensive training.
In terms of income potential, passive income apps like S'Mores Lockscreen, MobileXpression, Earnyh, and Honeygain can generate side hustle income ranging from $100 to over $1,000 per month. This income can be a significant boost to your finances. However, not all of them provide cash payments; some, like S'Mores Lockscreen and MobileXpression, only offer gift cards as rewards. This limitation can restrict your ability to use the earnings as you see fit. Additionally, some passive income apps may slow down your device or consume data, which can be inconvenient.
41. Open A Better Checking Account
Opening a better checking account is a promising passive side hustle because it's straightforward that doesn't require substantial ongoing effort once set up. Also, many banks offer lucrative checking account bonuses. For instance, Bank of America offers a $200 bonus, Chase Bank provides bonuses ranging from $100 to $3,000, Citibank offers bonuses between $200 and $2,000, PNC Bank has bonuses ranging from $100 to $400, U.S. Bank provides opportunities for bonuses up to $1,000, and Wells Fargo Bank offers a $300 bonus.
Regarding potential income, it's essential to understand that while these bonuses are attractive, they come with specific terms and conditions. For instance, to receive the $200 bonus from Bank of America, you may need to set up and receive qualifying direct deposits totaling $2,000 or more within 90 days of account opening. Additionally, these offers typically have expiration dates; for Bank of America, the offer expires on January 31, 2024. The primary drawback is that it's not entirely passive. Meeting the requirements for these bonuses often involves specific actions, such as setting up direct deposits or maintaining minimum balances. Additionally, some offers may carry potential risks if not managed carefully, such as incurring fees for not meeting the account requirements.
42. Get Paid To Sleep
Getting paid to sleep is an intriguing passive side hustle because, unlike many side gigs that require active participation, this option allows you to earn money while doing something you naturally do every day—sleeping. The opportunity lies in becoming a bed tester or a product tester for mattress companies. Many mattress firms, such as the 2,419 Mattress Firm stores in the United States, seek individuals to test their products and provide valuable feedback. As a bed tester, you get paid to sleep on different mattresses.
Salary.com reveals that the median annual salary for a bed tester can reach $39,350 in the United States. While specific salaries may vary depending on the job and the company, this figure demonstrates that this side hustle can provide a substantial source of extra income for you.
43. Wrap Your Car
Wrapping your car is a compelling passive side hustle because you can cater to companies to place advertisements on your vehicle. You can transform your car into a mobile advertising platform. This distinct concept leverages your existing asset—the car—and turns it into a source of passive income. Statistics from Elite Tint reveal that vehicle wraps have gained favor among independent and small business owners due to their cost-effectiveness and high-reach potential. On average, a wrapped car can generate between 30,000 to 70,000 daily impressions, making it an attractive advertising medium. This indicates a growing demand for car advertising.
According to Credit Ninja, many companies will pay car owners for wrapping their vehicles. The average monthly payment ranges from $100 to $500, and sometimes, it can go up to $1,000. This side hustle can be an effective way to generate extra cash to cover expenses. However, you may need to ensure your car remains in good condition, as any damage to the advertisement could affect your earnings. Additionally, there might be restrictions on where and how you can drive your wrapped car.
44. Become An Amazon Influencer
Becoming an Amazon Influencer is a smart choice for a passive side hustle because it lets you tap into Amazon's massive user base that provides a ready audience. The process is straightforward: all you need is a minimum of 1,000 followers on Facebook, YouTube, TikTok, or Instagram to be eligible. According to Sell Saas, the general guideline for approval is 1,000 followers, but the number may vary based on the sponsoring company's size. Some usually have thousands, while smaller entities may accept around 500. For the average person, aiming for 2,000 to 3,000 followers increases your chances of approval. To get started, create an Amazon account, read the Influencer Program's terms, and apply. Customize your Amazon storefront, learn how to earn, and find good deals. After that, you can begin sharing quality content, such as product reviews. This side hustle becomes passive as you leverage Amazon's existing traffic. You don't need to build a website or generate traffic; just film reviews of products you own.
In terms of potential income, successful Amazon Influencers like Jeremy Sciarappa earn approximately $16,000 monthly, according to Amanda Perelli on Business Insider. While Sell Saas reveals different estimates of $4-500 per month. To boost earnings, you can consider diversifying content, exploring different product categories, and consistently engaging with your audience.Take note that maximizing your follower count is key to increasing your compensation from Amazon. However, it's crucial to acknowledge that Amazon Influencer is not a 100% passive side hustle. The competition is fierce because of the rise of social media, influencers, and content marketing in the 21st century, leading to a surge in Amazon Influencer applications. Moreover, Amazon's guidelines restrict the use of personal social media accounts for promoting products, limiting some influencers' promotional strategies.
45. Start A Social Media Marketing Agency
Starting a social media marketing agency is a well-regarded passive side hustle because the demand for social media marketing experts is soaring. According to SproutSocial, 80% of business executives aim to increase their investment in social media marketing. This means there's a substantial demand for skilled professionals, creating an opportunity for a lucrative passive side gig. Additionally, social media is a goldmine for finding clients, as highlighted by the Search Engine Journal, stating that 68% of marketing agencies discover new clients through social media. To take advantage of this opportunity, create an interesting online presence. You can utilize LinkedIn to connect with potential clients and showcase your expertise. You may also join relevant groups and take part in discussions to expand your network. Additionally, leverage Twitter and Instagram to showcase your agency's success stories and engage with potential clients.
The potential income in social media marketing agencies is impressive. Agency Analytics reports that these agencies make between $1,500 and $25,000 per month for a single client. To boost your income, focus on acquiring high-paying clients. Offer specialized services, such as advanced analytics or influencer partnerships, to set yourself apart. However, it's crucial to acknowledge the disadvantages. While social media marketing can be lucrative, it's not a 100% passive side hustle. Hootsuite's study reveals that 50% of social media marketing agencies fail within the first year, which emphasizes the need for consistent effort.
Rental Passive Side Hustles
46. Rent Out Your Room Or Property On Airbnb
Renting out your room or property on Airbnb is another passive side hustle because of the increasing preference for renting over buying homes, as reported by The Zebra. With 77% of people in the US favoring renting. This trend creates a robust market for property rental. You can start by listing your property on the Airbnb platform. You can use Airbnb's booking and payment system to streamline the rental process.
As for potential income, according to Morris Invest, a property can generate an annual income of around $12,000. However, it's important to note that you should set aside approximately 40% of your earnings for expenses like taxes, insurance, property management, and dealing with vacancies. Despite its potential as a passive side hustle, renting out your room or property on Airbnb comes with disadvantages. One significant drawback is that it requires daily active involvement. You need to manage bookings, communicate with guests, and ensure the property stays in good condition. Additionally, dealing with tenant turnover and addressing maintenance issues can be time-consuming and may require immediate attention. To make it passive, you can consider hiring a property manager or cleaner to handle guest interactions and property maintenance. But, it can eat your profit.
47. Rent Out Storage Space Or Parking Spot
Renting out your storage space or parking spots can be passive side hustles because it offers a simple way to enter the storage industry without the high costs associated with traditional self-storage facilities. According to Innago, constructing or purchasing such facilities can cost millions of dollars. Renting out storage space or parking spots is a more accessible option. Also, the demand for storage space and parking spots remains steady, ensuring a consistent income stream. As reported by CNBC, there are between 700 million and 2 billion parking spaces in the United States, with a portion available for paid parking.
You can create listings on platforms like Neighbor or SpotHero to reach potential renters. Then, set competitive rates based on your location and the type of space offered. According to Neighbor, you can earn up to $15,000 per year by renting out your extra storage space. However, like renting property or listing on Airbnb, it may require daily involvement for routine maintenance and addressing renter inquiries.
48. Rent Out Your Vehicle Or RV
Renting out your vehicle or RV is a good passive side hustle because it allows you to leverage your existing asset to generate income. If you own a vehicle or RV that sits idle for extended periods, this side hustle can help offset ownership costs. Also, the demand for recreational vehicles and unique travel experiences has grown significantly. Make sure your vehicle or RV is in excellent condition and meets safety standards. List it on peer-to-peer rental platforms like RVshare or Turo. The opportunity in this side hustle is evident from the success of many RV owners. According to RVshare, 75% of owners on its platform reported making more money in 2020 than in 2019, with 50% covering the cost of their RV through rental income.
As for potential income, RV owners can earn substantial amounts by renting their vehicles. According to RVnGO, the average income ranges from $10,000 to $60,000 per year, with $30,000 being the average. Various rental platforms and apps are available to help you get started. However, to make it fully passive, you may need to hire a team to handle maintenance, customer service, and other aspects of rental management. This can add significant operational costs on top of the initial RV purchase. Additionally, there are inherent risks, such as vehicle damage, accidents, or issues with renters, which may require your attention and involvement.
49. Rent Out Billboard Space
Renting out billboard space is a lucrative passive side hustle because billboards provide businesses with a highly visible advertising platform, making them a sought-after medium for marketing. Once you secure billboard space and set up agreements with advertisers, it can become a source of consistent passive income. The opportunity in renting out billboard space lies in the high demand for outdoor advertising.
Businesses are constantly seeking visible platforms to promote their products and services. Billboards, being large and strategically placed, offer an effective way to reach a broad audience. Billboard advertising spending in the United States alone reached approximately $7.6 billion in 2020. It reflects the substantial market opportunity. Regarding potential extra income, the earnings from renting out billboard space can vary widely depending on factors like location, billboard size, and market demand. According to the Outdoor Advertising Association of America (OAAA), billboard space generates an average of $5,000 to $10,000 per month in revenue. However, prime locations in major cities can command significantly higher rates.
50. Rent Out Your Pool
Renting out your pool is a wise passive side hustle because rather than sitting idle, your pool can generate income by allowing others to enjoy it. Swimply, a platform that connects pool owners with renters, boasts over 20,000 pools listed across the United States, Canada, and Australia. Also, they receive approximately 100 additional requests for pool listings each day. This shows a growing demand for pool rentals. It presents an excellent opportunity for you to monetize their pools.
With income potential, Swimply reports that pool owners can earn an average of $5,000 to $10,000 per month. This substantial income stream can significantly affect your finances and provide an attractive return on your investment in a pool. However, there are certain disadvantages to consider. You'll need to manage bookings, ensure the pool is clean and safe, and possibly interact with renters. Additionally, there may be liability concerns if accidents or injuries occur on your property.
51. Rent Your Bandwidth
Renting out your bandwidth is a unique passive side hustle because of its simplicity and low entry barrier. If you have an internet connection with unused bandwidth, you can monetize it with minimal effort. With 42 million Americans lacking broadband access, the demand for internet connectivity is high. Approximately 24% of Americans find it challenging to afford broadband. It highlights a market for affordable alternatives. Apps like Honeygain legitimize the concept of selling unused internet data, offering an extra income source.
Income from renting out your bandwidth can vary. As reported by This Online World, earnings range from $5 to $50 per month, especially if you're in high-demand areas like the United States. Apps like Honeygain or Peer2Profit facilitate this process. It allows you to sell your unused bandwidth easily.
52. Rent Out Your Equipment Or Gear
Renting out your equipment or gear is a practical passive side hustle because you often enjoy high gross margins, typically around 90%, as reported by Sharpsheets. This is because most expenses in this business, such as salaries and marketing, are fixed costs. It allows you to generate income from assets you already own, making it a low-risk investment. Also, you can cater to various needs, from sporting equipment to power tools.
Businesses and individuals often prefer renting over than buying expensive equipment for short-term needs, creating a steady demand for rental services. As for potential income, Rentrax states that the standard average rate for renting equipment can range from $100 to $150 daily. It depends on location and the type of service offered. You can begin by cataloging and documenting your equipment. Then, create an online platform or use established rental marketplaces like Fat Llama or PeerRenters to list your items. However, the risk of equipment damage upon return. While rental agreements can help mitigate this risk, you may still encounter instances where your gear requires repair or replacement.
Recommendation:
If you are looking for some opportunity to generate side income in real estate industry, you can check my ultimate list of real estate side hustle ideas.
8 Awesome Tips For Starting Side Hustle For Passive Income
1. Consider Your Passions And Skills
When starting a side hustle for passive income, it's essential to consider your passions and skills. It involves choosing a hustle that aligns with what you love and are good at, which can lead to more enjoyment and success. For example, if you're skilled in graphic design, you might start creating digital art to sell online. Vistaprint reports that 27% of full-time workers have turned hobbies into income sources, and 55% wish to do so. Additionally, 42% of side hustlers pursue their hustle to follow their passions or interests. To do this tip, first identify your hobbies or skills, then research to find a market need that matches, and finally, develop a plan to monetize your passion effectively.
2. Consider Your Availability
Considering your availability emphasizes understanding how much time you can realistically dedicate to your side hustle without affecting your main job or personal life. It's about balancing your existing commitments with the new venture to ensure sustainable success. A report by Self Financial reveals that most side hustlers spend 5-10 hours per week on their business, with 32% of respondents falling into this category. Another popular time commitment is 11-20 hours per week, demonstrating that side hustles often require a significant, yet manageable, time investment.
For example, if you're interested in starting a blog as a side hustle, first assess how much time you can allocate weekly. Based on your availability, set a realistic schedule for writing and managing your blog. You can utilize tools like WordPress for website management and Google Analytics to track your audience. It helps you manage your time and resources efficiently. By aligning your side hustle with your available time, you increase the likelihood of its success while maintaining balance in your life.
3. Conduct Market Niches
Conducting market research to find a niche involves identifying a specific area or group of customers that have unique needs not currently being met by existing products or services. The importance of this tip lies in its ability to help you find a less competitive market with a specific target audience. To put this into practice, start by using tools like Google Trends or social media platforms to identify trending topics or needs within a community. Then, explore forums like Reddit or Quora to understand the specific problems or interests of your target market. By carefully researching and targeting a specific niche, your side hustle is more likely to stand out and attract a dedicated customer base.
4. Set Your Goals
Setting goals is defining clear, achievable objectives for your passive side hustles. The importance of goal setting lies in its ability to provide direction and motivation. It helps you focus on specific outcomes, whether it's earning a certain amount of money, reaching a specific number of customers, or developing a particular number of products. Bigger Pockets shows that individuals with goals are ten times more likely to achieve success compared to those without defined goals. Additionally, Dominican University in California concluded that people who write their goals are 42% more likely to succeed than those who don't document their objectives.
For example, if your passive side hustle is creating an online course, your goals might include completing the course content by a certain date, achieving a set number of enrollments within the first month, and generating a specific amount of revenue within six months. Tools like Trello or Asana can help you track your progress towards these goals.
5. Develop A Business Plan
Developing a business plan is a process that involves creating a detailed outline of your business idea, including its goals, strategies, market analysis, and financial planning. It is important because it provides a structured approach to your venture. It helps you to understand the market, set realistic goals, and manage finances effectively. For instance, GoBusinessPlan reports, 71% of fast-growing businesses have written plans they often refer to. Additionally, according to Investopedia, about 70% of businesses that survive for five years follow a strategic business plan, and businesses with a written plan have a 7% higher likelihood of experiencing high growth compared to those without one.
For example, if you're starting a freelance writing business, your plan might detail your niche, target clients, pricing strategy, and marketing approach. Websites like Bplans offer templates and guides to help you develop your business plan step by step. By having a clear plan, you can navigate your side hustle more effectively and increase its chances of becoming a profitable passive income source.
6. Launch An LLC
Launching a Limited Liability Company (LLC) is a key strategy for side hustlers aiming to formalize their business. An LLC offers legal protection, tax benefits, and enhanced credibility. With 45% of working Americans engaged in side hustles, especially among younger generations, an LLC's role in safeguarding personal assets and providing flexible tax options is increasingly vital. An LLC separates your personal and business liabilities, offers tax flexibility, and enhances business credibility. It also simplifies ownership transfer and improves access to funding.
7. Build Your Portfolio
Building a portfolio means creating a collection of your work or projects that showcase your skills and achievements. A well-crafted portfolio can show your expertise and attract potential clients or customers. Having a portfolio is important because it gives people a visual and tangible understanding of what you offer. If you’re seeking passive income streams, a portfolio makes it easier to gain trust and credibility, which are key to long-term success.
According to a 2022 survey by the Freelancers Union, 60% of freelancers who used a portfolio site reported an increase in their income. This highlights the effectiveness of a portfolio in enhancing income potential. As you complete more projects, add them to your portfolio. You can use social media platforms like LinkedIn to showcase your portfolio. Also, consider using online tools such as Canva for creating a visually appealing portfolio, especially if you’re not a designer.
8. Leverage Social Media
Leveraging social media for a side hustle means using platforms like Facebook, Instagram, Twitter, and LinkedIn to promote your skills, services, or products. It's a strategy to reach a broad audience without spending much money. This approach is vital if you are looking to establish a passive income source because social media allows you to connect with potential customers or clients globally. A 2023 survey by the Freelancers Union found that 64% of Gen Z plans to "monetize a project on social media" in the next year. Additionally, in a 2022 survey by GOBankingRates, 15% of Americans used social media to find a side gig.
Conclusion: What Is The Best Passive Income Side Hustles Out There?
Local lead generation is the best passive income side hustle out there because of its low barrier to entry, less market saturation, and the ability to yield ongoing returns with minimal ongoing involvement. With an initial investment as modest as $500, you can start creating a website, which serves as your digital asset. The process involves elevating your website's ranking on search engines. Once a prominent ranking is achieved, your website becomes a lucrative asset that you can lease to local businesses in need of lead generation. It ‌secures you a recurring passive income ranging from $500 to $2,500.
One of the most appealing aspects of local lead generation is the organic growth of your website on search engines like Google and attracting free traffic. This method creates digital real estate, a valuable asset that you own and control. This ownership ensures stability, as clients cannot easily leave you, unlike other side hustle above. Moreover, compared to other passive side hustles, lead generation is more predictable and manageable. Owning these lead generation sites grants you significant control, and the risks of unforeseen issues are considerably lower. The field is less crowded because of the vast array of niches and cities available for targeting. Additionally, once your site achieves a high organic ranking on Google, it maintains its position with little need for maintenance. This stability means that after the initial setup, the site can continuously generate leads from free traffic, allowing you to "set it and forget it." As a result, your lead generation site can consistently provide a source of passive income month after month.
How much time does it take to generate passive income?
The time required to generate passive income through local lead generation can vary, but typically it ranges from 3 to 6 months. This process is often quicker and demands less effort compared to other methods, like blogging or running a YouTube channel. For instance, in order to effectively rank a blog, you might need to create and manage a range of 100 to 200 articles. In contrast, a local lead generation site can start performing well with just 10 to 15 pages of content. Similarly, monetizing a YouTube channel requires a minimum of 1,000 subscribers and accumulating at least 4,000 watch hours over the past 12 months., which can be a more time-consuming process.
I own over 50 websites that help local businesses find customers. Each of these sites earns me between $500 to $2,500 every month. If you want a side job that doesn't need much work and could help you leave your regular job, I suggest starting local lead generation business.
