Top 20 Ways To Make Money Online in Japan | Income Potential, Focus Areas, Best Tools

The top ways to make money online in Japan include:

1. Acquiring leads for local businesses
2. Teaching English online
3. Live Streaming
4. Offering language translation services
5. Being a professional gamer
6. Answering branded surveys online
7. Providing freelance writing and proofreading services
8. Developing mobile applications

These methods stand out for their low startup costs and high demand. For example, starting a local lead generation business costs between ¥76.8K and ¥153.6K. You can then earn between ¥76.8K to ¥307K monthly from each site. Teaching English online is also popular as Japanese professionals want to be competitive in the job market. TEFL says ESLs can earn between ¥1.5K and ¥6.1K per hour, depending on their experience.

Online businesses in Japan can be very profitable as it requires less overhead. For example, the Japanese value quality and convenience, making it the third-largest e-commerce market in the world. Foreigners can make money online in Japan if they get into the right business and follow the right laws. According to Statista, retail property rent in major cities in Japan costs ¥35.8K per tsubo (35.58 square feet). Many of the methods I'll discuss here can be done from home, so you won't need to rent office spaces or hire employees.

While online businesses have great potential and opportunities, it also comes with challenges. Factors like language barriers, culture, and reputation can affect your online business. For example, targeting the B2B sector can take longer to produce results. In Japan, companies follow ringisho and nemawashi. In short, various levels of the organization must be aware of and discuss plans to reach a consensus together. This decision-making process can hinder your ability to scale. Another example is the rising popularity of C2C platforms like Mercari. These online flea markets compete with B2Cs as the younger generation is shying away from brand-new items.

I've been making money online for 10+ years. I understand how hard it is to find the right way that fits your interests and skills. In this article, I'll cover the top ways to make money online in Japan. I'll also discuss their potential income, profitable niches, usable tools, and other ways of making money online.

1. Acquiring Leads for Local Businesses

Finding leads for local businesses in Japan is a great way to make money online. In this method, you'll create niche sites that rank in search engines like Google and Yahoo! Japan. Once they generate traffic and leads, you then sell the leads or rent out the site to clients. Each of these sites can earn between ¥76.8K to ¥307K monthly.

The potential for this business is high as many business owners in Japan are old and lack the skills to gain traffic online. Teikoku Databank says the average age of service-based business owners in Japan is 60.3. OECD's survey found that 1 in 5 Japanese adults have little or no experience with computers. And DataReportal says 4 in 5 Japanese use the internet to search for information. This shows a high potential for local lead generation to bridge the gap between your clients and their potential customers.

Doing local SEO is a major component of local lead generation. You may encounter difficulty with keyword optimization for kanji, hiragana, and katakana. You can hire someone to help you bridge this language barrier and dominate the SERPs. Here's a quick overview of local lead generation:

2. Teaching English Online

Teaching English online to Japanese speakers is a great way to make money online due to its high demand. Students and professionals use services like these to improve their language skills. This practice also fits into the kaizen philosophy, which encourages continuous improvement.

Demand for this service is high as people in Japan want to enhance their English skills. Parents enroll their children in private ESL tutoring, and so do adults. Many corporations make taking English lessons mandatory for some positions. This shows a solid service demand from a wide age demographic.

Teaching English in Japan is lucrative, but it has downsides. For example, Zuri Africa moved to Japan to teach English to toddlers at an ELC. In that position, she earns double her previous salary at ¥689K monthly. The higher pay, lower cost of living, and employee benefits make her job attractive. However, she quit when she gave birth and couldn't find a work-life balance that aligns with her goals. For example, she had to take a 3-hour commute daily to get to her school.

Teaching online mitigates the commute and lets you set the amount of students you take in. Platforms like GaijinPot and RareJob are great for finding online English teaching jobs. Additionally, you won't be as restricted and can teach how you see fit. For example, this Reddit commenter says they use video games in their JHS lessons.

3. Live Streaming

Live streaming on platforms like YouTube and Twitch is a great way to make money in Japan. This form of entertainment is growing fast. StreamCharts estimates that the watch hours for live streaming in Japan will increase by 39.4% in 2024. Additionally, the Japanese streaming platform, Mildom has recently shut down. This further funnels more traffic into YouTube and Twitch.

Live streaming in Japan is profitable as its audience base is growing and loyal to streamers they like. The most popular content types in Japan are gaming (39.5%), IRL streaming (36.9%), Vtubers (19.9%), and IRL Vtubers (3.7%). This means you have various ways to enter this market. However, the Japanese audience is very discerning; you must be good at what you do.

You must be mindful of the cultural norms in Japan. The Japanese people are very private individuals. For example, if you're IRL streaming, you must ask permission from stores you plan to stream in. You must be careful of getting people in your shots without their permission. Additionally, when out in public, you need to be mindful of the loudness of your voice.

An infamous example is the nuisance streamer Johnny Somali. His brand of IRL streaming involves provoking locals in the countries he visits. He went to Japan in 2023 and got arrested for trespassing, resulting in deportation. In 2024, his antics in South Korea caused a massive public outrage. This resulted in him being assaulted 3 times by people and getting a travel ban, which prevents him from leaving the country. He's currently under investigation which could result in jail time. 

4. Offering Language Translation Services

Offering language translation services in Japan is a great way to make money online. Japan has the third-strongest economy and is one of the top exporters and importers in the world. This means many Japanese businesses will need experts who can ease communication.

Japan's economic strength and position in international trade fuel demand for this service. Payscale says translators in Japan make between ¥32K and ¥6.2M, depending on experience. You must be fluent in Japanese and your client's target language. While not necessary, it's recommended to get certifications for your Japanese fluency.

While this service is very profitable, it does have challenges. This Reddit comment says translators are now working as contractors. They add that non-native speakers of either Nihonggo or English have lower chances of getting hired. They recommend entering niches like real-time interpretation as an alternative for non-native speakers.

5. Being a Professional Gamer

Being a professional gamer is a great way to make money online in Japan for its gaming culture. Japan is the birthplace of competitive fighting games like Tekken and Street Fighter. Notable examples like Tokido, Daigo Umehara, and Chikurin have left their mark in Japan and abroad. Even today, they still compete in the pro scene and earn money from their skills.

The profitability of being a professional gamer in Japan is high. You'll have many potential income streams like sponsorships, competition prizes, and streaming. For example, Riot Games' Valorant is one of the most viewed competitive games in Japan. Their 2023 tournament has a ¥35M prize pool. Notable examples include Kakinuma Hidema, who earned ¥187M from winning in a Shadowverse tournament.

Despite its profitability, being a pro gamer has many challenges. You'll have to get good, compete in local tournaments, and build your reputation. Research Gate's data says professional gamers spend 32 hours per week practicing for 8 weeks before a tournament. Additionally, when you're still starting out, you may not earn enough from gaming. You can supplement this by streaming, as the Japanese audience is fond of spectating highly skilled players.

6. Answering Branded Surveys Online

Answering branded surveys online can be a great way to earn pocket money in Japan. It's easy to start and accessible. You need to be above 14 years old, have a smartphone or PC, and have a stable internet connection.

The process is simple. Find reputable platforms, sign up, fill out your profile, and start taking surveys. Companies then use your feedback to improve their products and services. You can earn between ¥38 and ¥1.5K per survey. You can sign up for many platforms to increase your income potential.

Despite the ease of earning from surveys, this method has challenges. Surveys may not always be available, and you may not qualify for them. This severely limits your income potential. Keep checking platforms and applying for various surveys like focus groups to find opportunities.

7. Providing Freelance Writing and Proofreading Services

Freelance writing and proofreading services in Japan are in high demand. It's a great way to make money online, as many companies and industries need written content. Your expertise can bridge the language gap between clients and their target audience.

Japan's economic strength and importance in international trade fuel service demand. Businesses and academics need experts to translate their writing into the target language. ERI says professional proofreaders in Japan can earn 1.9K per hour.

While demand is high, this method can present challenges. This Reddit commenter says salaries for translating copy can vary. If you take on odd jobs where accuracy is not important, you may get paid less.

8. Developing Mobile Applications

Developing mobile apps in Japan is in high demand, as 85% of the population uses smartphones. Statista predicts this will rise to 94% by 2027. To begin, you'll need to learn programming languages like Swift or Kotlin. Then, create apps that solve problems or entertain users. You can sell your apps on app stores or develop custom apps for businesses.

The sheer size of the Japanese mobile user market fuels service demand. As such, app downloads have risen across the board. Spocket says mobile app development in Japan will grow 7.5% yearly through 2028. This healthy market also results in high wages for skilled mobile app developers. TokyoDev says the average salary for mobile app developers is ¥6.1M.

This method comes with challenges like language barriers and competition. You have to compete with many others who want the same job. Additionally, the Japanese are more willing to hire people who have a good mastery of Nihongo.

9. Doing Game Localization Testing

Doing game localization testing in Japan is a great way to make money online. This involves ensuring the media resonates with the target audience. Glassdoor says localization experts make between ¥367K and ¥398K monthly. You'll use language mastery and cultural knowledge to make sure your client's product has the same impact on the target audience.

Japan is the third-largest gaming market in the world. Its sheer market size pushes demand from native and international publishers for localization. For example, FromSoftware's Elden Ring is one of the most anticipated releases of 2022. It's popular for its difficulty and lore using inspiration from different cultures. It's localized in 14 languages. Statista says it sold 25 million copies as of June 2024. 2 weeks after release, it sold 12 million globally and 1 million in Japan.

10. Selling on E-Commerce Platforms

Selling on e-commerce platforms is a great way to make money online. The International Trade Administration says Japan is the 4th largest e-commerce market globally. E-commerce is gaining popularity because of the quality customer service found in physical stores. Additionally, it provides users the convenience of shopping from anywhere.

The sheer size of Japan's e-commerce market and user demand drive competition. The most popular e-commerce in Japan are Amazon Japan and Rakuten Ichiba. To be effective in this market, find your niche and products and use the right platforms when selling. Japan's e-commerce market is made up of B2B, B2C, and C2C sectors. Statista says B2B makes up 40% of all e-commerce transactions in Japan. Meanwhile, B2C makes up 9% of all physical sales in the country. C2C is also rising in popularity as platforms like Mercari give thrifty shoppers options.

While e-commerce has huge potential, it does have challenges. Statista says in Japanese online shopping, 2 out of 3 carts get abandoned before checkout. Over 80% of mobile users look at online stores with no intention of buying anything. Statista's 2023 Q3 data says providing free deliveries and discount coupons motivates 63% of online shoppers in Japan. You must make an effort to create irresistible offers for your customers. This leverages their shopping behavior and turns that high online traffic into sales.

11. Offering Software Programming Services

Offering software programming services in Japan is a great way to make money for its high demand. Japan is the third strongest economy in the world. Japan Dev says the software devs can earn between ¥5M, increasing up to ¥18M with more experience. Many businesses need programming experts who can help improve their offerings to customers.

Japan's economy and aging population create a gap in the talent pool, fueling demand. METI's 2024 data shows a steady increase in market demand, a manpower supply of 1.1M, and a deficit of 350K. This means Japan's IT sector needs 350K professionals to keep up with the demand. The Ministry of Health, Labor, and Welfare says the amount of foreign IT workers grew by 300% from 2008 to 2017. This shows the overwhelming demand and the market's response to the talent gap.

While demand is high, this niche also has challenges. Language mastery and coding experience are factors that affect your success. To mitigate this, learn the language and get certifications to prove your ability to communicate. Get actual experience or contribute to platforms like GitHub to show your expertise. This helps improve your chances of getting hired and gives potential employers a measurable way to see your skills.

12. Starting a YouTube Channel

Starting a YouTube Channel in Japan is great due to the platform's popularity. Humble Bunny says YouTube is the 2nd most popular social media platform in Japan. Japanese users prefer YouTube as a video-sharing platform, even beating Netflix and Disney+. Whether you’re a local or an expat, creating YouTube content in Japan can attract subscribers and ad revenue.

YouTube's popularity in Japan gives creators and advertisers opportunities to make money. Statista's 2023 data says 87.8% of the Japanese population uses YouTube. 91% of people between 13 and 29 use the platform, a prime target for advertisers. YouTube has overtaken traditional TV in advertising value. There are many niches you can enter. The most important aspect is being interesting. Doing this right makes your channel attractive to both audiences and advertisers.

16. Renting Out a Room or Space

Renting a room or space in Japan is great, as it's one of the most wish-listed travel destinations on Airbnb. The Japanese government has also made steps to make buying properties easier. However, this does not include permanent residency rights. This presents opportunities for people who can invest in Japan's real estate.

Tourism and rising land prices push demand for rental properties. Statista says mountains make up 75% of Japan's total landmass, limiting the amount of buildable space. Additionally, the average land price in Japan is ¥217.1K per SQM. Its aging population also contributes to a growing housing supply and vacancy rates. This also made buying akiya properties and refurbishing them before renting them out.

This method has challenges like investment cost, language barriers, and maintenance. Since most people live in cities like Tokyo, land prices range from ¥800K to ¥1.23M per SQM. Running a rental property also means communicating with tenants and many more. You must follow Japan's rental laws and sanitation standards. Doing so ensures smooth operations and positive experiences for both you and your tenants.

17. Doing Affiliate Marketing

Affiliate marketing is a great way to make money online in Japan. This involves promoting products to your audience and earning commissions on item sales. Japanese consumers flock to social media platforms like YouTube, Instagram, and Facebook. They value authenticity and relatability, which gave rise to micro-influencers. This has caused digital advertising spending to increase across the board.

Japan's high smartphone and social media usage rate and ad spending present opportunities. While the Japanese can be susceptible to this marketing, it has downsides. Reputation and quality matters in Japan. As such, they will hold products you advertise to scrutiny. You must show your trustworthiness and relatability to engage audiences. Actions like disclosing affiliations before reviewing products are honorable.

18. Becoming a Freelance Virtual Assistant

Becoming a freelance virtual assistant is a great way for those already living in Japan. This involves providing your services to potential domestic or international clients as a kojin jigyo. Freelancing gives you flexibility and lets you scale your income. You can earn more from your time as long as you can give results to clients. This makes it easier to earn more without having to go through immigration hurdles.

Depending on experience and skills, freelancers in Japan earn between ¥3M (bottom 10%) and ¥11.7M (top 10%) yearly. Specializing in niches like business communications and bilingual support can earn higher rates. Additionally, platforms like GaijinPot and Upwork make it easier to find jobs.

Japan's immigration system is strict. This makes it almost impossible to do for those outside Japan or without the right residency. Attempting this with tourist visas, etc, can lead to deportation and getting banned from Japan.

19. Building and Designing Websites

Building and designing websites in Japan is a great way to make money online. The Japanese have a completely different concept of website design. The more information you provide them, the more they trust you. This increases audience trust and acknowledgment, leading to loyalty.

Japan's competitive economy and difficulty creating customer-centric websites present many opportunities. Glassdoor says web designers in Japan make ¥305K monthly. These sites must promote trust and customer loyalty for clients and make grammatical sense. It's not as simple as making your client's sites in English and then using a translator to make them in Japanese. This can result in grammatical errors that won't make sense to readers. To succeed, focus on understanding Japanese design preferences and business needs.

20. Dropshipping

Dropshipping in Japan is great because of the country's well-developed infrastructure. Compared on a global scale, Japan ranks 11th for logistics performance and 8th for average e-commerce spending. Additionally, Japan's products are in demand worldwide, giving you a global customer base.

It's great because it requires little upfront investment. You don't need to keep inventory or handle shipping. Here's how it works: You set up an online store and partner with suppliers. When a customer buys from you, the supplier ships to them. You keep the difference between the wholesale and retail prices. You may encounter challenges like lower profit margins, logistic issues, and competition. With the right strategy and persistence, it can be rewarding.

What To Consider When Making Money Online in Japan

Can Online Business Courses Help You Make More Money Online in Japan?

Yes, online business courses can help you make more money online in Japan if you use them right. These courses give beginners useful skills to better approach your niche. Your chosen courses should provide:

Yes, you can make money online in Japan without experience. However, it will be much harder to get hired or operate without the right knowledge. This Reddit comment says foreigners may be able to find jobs with 0 experience if they teach English. Japanese businesses are more willing to work with natives. They may hire gaijins if they have specific skills they need.

Some example courses you can take include Dan Klein's Job Killing Course. This course teaches you how to attract and generate traffic for small businesses. Dan started this in 2014 and now has over 7,000 students. For business communication, you can try Coto Academy and Shinjuku Nihongo Gakkuo. These are Japanese language schools that offer keigo and business etiquette lessons online.

Is It Easy To Start an Online Business in Japan?

Yes, starting an online business in Japan is easy, as the government has streamlined the process. In Japan, you have access to programs like J-Startup. Eligible businesses receive support from both the government and private businesses. Filing taxes is also easier as the NTA lets you pay them online. Additionally, 84.9% of the population uses the internet, and only 15.1% do not. To get started, follow these steps:

You can make money online in Japan without an investment. You can use free platforms like Upwork and GaijinPot to look for jobs. You can use platforms like Rev to get transcription projects from anywhere in the world.

However, starting an online business in Japan does come with challenges. Language barriers can be a hurdle if you're not fluent in Japanese. Cultural nuances also play a significant role in marketing and customer service. You can always consult a shoko kaigi-sho to ensure you're compliant with local laws.

Why Choose Local Lead Generation To Make Money Online in Japan

Local lead generation is the best way to make money online. In this business model, you're connecting businesses with potential customers. It offers greater advantages over methods like freelancing and streaming. In fact, Word Connection says local searches in Japan have grown by 900% in the last two years. Once you get over the initial setup and leads start coming in, you can earn income with less effort.

Most online money-making methods need constant communication and monitoring. For example, if you plan to export goods from Japan, you'll always need to find the next big thing. And if you plan to work with other businesses, your keigo must always be on point. Local lead gen beats these methods as there's less competition and high potential. Many businesses in Japan are owned by the elderly. As such, they have little to no technical skills to leverage online traffic.

In local lead gen, you'll create niche websites that rank on search engines like Google Japan. Once your site ranks and generates traffic, you can sell those leads or rent the site out to businesses. When done right, each site can earn ¥77K to ¥310K monthly. It's also scalable, meaning you can create more sites in other niches or prefectures.

With the right nemawashi, local lead generation can generate stable income. For example, I have over 50+ lead gen websites, and together they earn me over ¥7.7M monthly. My mentor, Dan Klein, has been refining this business model since 2014, and our group has grown to 7,000 strong. Try out local lead gen today!