19 Proven Passive Income Ideas That Will Make You Money While You Sleep 

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The internet has opened up a whole new world of opportunities for people who are looking to make money. One way to make money online is through passive income. In this post, I am going to share 19 proven passive income ideas, along with my top 5 picks, so you can find the one that suits you best.

Making money while you sleep sounds like a dream, right?

Unfortunately, it’s not as easy as it sounds, and many people end up with schemes that don’t pan out.

That’s why I’ve put together this comprehensive guide to passive income ideas—so that you can get started on the right track and make money while you sleep (safely) in no time at all.

What Is Passive Income?

Passive income is the money you earn from sources other than your day job.

It is an income that comes from a source that does not require work. It is a form of investment, but the work is done upfront.

The best thing about passive incomes is that they are easy to set up and maintain, and they can be very lucrative in the long run.

Enough said, let’s cut to the chase and get right down into the nitty gritty.

19 Proven Passive Income Ideas

1. Start a Blog

I believe you’ve heard or read about this passive income idea so many times that it might seem a bit worn out to you. 

There’s a reason why some people would rather speak about starting a blog over and over again.

It’s because starting a blog is totally a proven passive income that could earn you money while you were sleeping.

But…

I am not going to lie.

Starting a blog can be challenging in the initial stages, but the passive income it generates makes up for it.

If you’re still debating on which passive income ideas to pursue, I highly recommend that you start a blog.

Note: From as low as $2.95/month through this special link, BlueHost can help you start your personal blog. Plus, you will receive a FREE domain name when you subscribe to their 36-month deal. It’s a special perk for my readers.

2. Start an Etsy Shop

Arts and crafts are a pretty popular market on Etsy. But, to make it successful, you need to make sure you have some of the best designs.

It is also important to note that you need skills and talent in order to produce high-quality arts and crafts products.

This is why aspiring entrepreneurs have found a second method of passive income when comes to Etsy: digital product selling.

Here are some digital products to sell on Etsy:

• Thank you cards
• Digital planners
• Social media templates
• Wedding printables
• Children learning materials
• Workbooks

3. Print on Demand (POD)

Print on Demand is a great way to start, with the potential to create passive income.

One of the best options is Redbubble, which is one of the most popular PoD platforms. This website allows you to design and upload your own products for sale.

This beginner-friendly step-by-step guide on how to sell on Redbubble can help you get started.

Print on Demand is a good choice for beginners because it’s easy to set up and you don’t have to worry about storage or shipping costs.

You also don’t need any outstanding artistic skills to make it work, which makes it great for entrepreneurs who might not have much time to create artwork or who might not have much drawing experience.

4. Create a YouTube Channel

If you love being in front of the camera and have something that other people would like to learn from, then YouTube could be just the place for you.

You could create educational content on a wide variety of subjects and offer it free or sell monthly memberships to people who want to interact with you on a more personal level.

Other people might be interested in learning how to sew, knit, cook, do yoga, etc. So if you are one of those people then why not monetize your knowledge and share it with others through YouTube?

But what if you’re an introvert who still wants to consider this passive income idea? And being on camera isn’t your thing?

Starting a Youtube automation channel is the solution for you. It is a method on the rise with a lot of potentials.

Related Topic: How I Made $100 on YouTube as a Beginner

5. Place Ads on Your Website

Advertising revenue is one of the oldest and most reliable ways to earn passive income.

How does this method work? When a reader sees an ad on your blog, you earn advertising revenue.

The majority of advertising networks use a revenue per thousand impressions (RPM) or revenue per thousand sessions (RPS) model.

Obviously, to succeed with this passive income strategy, you will need a fair amount of traffic.

Among the ad networks that you can consider for this method:

• Google Adsense
• Ezoic
• Mediavine
• Thrive
• Media.net
• AdThrive

6. Rent Your Extra Space

If you own your home and have some extra space in the garage or basement, then this might be the opportunity you’ve been looking for.

You should take advantage of all of that extra space that you have because renting it out could be the chance at life-changing income.

It is very passive which will give you the financial stability to continue on with your other personal ventures.

7. Sell eBooks

In today’s digital age, creating and selling an eBook is a great way to earn passive income.

You don’t need to spend time and money on editing or formatting the content.

You simply write it and publish it to Kindle Direct Publishing or other platforms where your customers can buy it conveniently through your stores.

If you’re having trouble to do create the ebook on your own, then you can always get a freelancer to help- they’re qualified and can definitely finish the ebook within a short time.

It’s easy, fast, and cheap to do.

8. Sell Online Courses on Udemy

I would recommend starting with something simple like a digital course that can be sold on platforms like Udemy.

These platforms offer what entrepreneurs call “lifetime access” which means that people can purchase your course and get unlimited viewing access without being charged monthly or yearly fees.

9. Sell Sponsorships on Your Podcast

If you’re looking for a new way to make passive income, look no further. Simply start a podcast and sell sponsorships.

Here’s how it works: Podcast listeners are highly engaged and have high levels of trust in the host(s) and their opinions. They’re also more likely to buy any products or services that are endorsed on that podcast.

In addition, podcasts have a long shelf life – people will listen to episodes for months or years after they first hear them, which keeps more money coming your way even if you’ve stopped actively producing podcasts.

10. Vending Machines

One of the most simple ways to make money is by installing a vending machine. You can sell drinks, chocolates, chips, and other items that people usually buy when they get hungry.

You don’t even need a large amount of startup capital because in most cases you can rent a vending machine for about $200-300 per month.

11. Sell Stocks Photos

There are many proven passive income ideas, but one of them is to sell stock photos.

This can be done through sites such as Shutterstock and Getty Images, which offer a royalty-free license for their images.

It doesn’t matter if you don’t have an expensive camera. You can start with your smartphone and then edit the photos with a Lightroom preset.

There are plenty of places you can buy Lightroom preset to quickly get yourself started. For example, there are lots of cheap presets that you can get from Etsy.

12. Advertise Brands With Your Vehicle

If you have an advertising-worthy vehicle, why not make the most of it by using it as a billboard? You would earn passive income with no additional work.

Many people are unaware of this form of advertisement but there are many companies that specialize in designing and marketing these types of ads.

One of them is Wrapify. Sign up with Wrapify and they’ll pay you to wrap your car in advertising and all you have to do is drive like normal. It’s an easy way to earn between $174 and $450 per month, so why not give it a try?

13. Website Flipping

If you’re looking for passive income ideas with less risk but the potential to earn a lot of money, flipping websites could be your answer.

This is a business that anyone can do with little to no previous experience and it’s much less risky than starting a physical store or restaurant.

The way it works is you pick up a website that’s either been neglected or needs some updates and then list it for sale on your own website or using sites like Flippa.

When someone makes an offer, you review their contract and accept the offer if everything looks good.

You may have to make some updates or maintenance repairs before they buy it from you, but if you’ve done all your homework, this shouldn’t be an issue.

Some of the sites where you can flip almost any website:

• Flippa
• Afternic
• Freemarket
• Digital Point Forum
• Trademysite
• Web Hosting Talk

14. Affiliate Marketing

Affiliate Marketing is one of the most popular ways to generate passive income.

You can start an affiliate marketing business and promote products and services from different companies, making money from the commissions you earn from sales your links generate.

Each company will have a different commission rate that you get paid for every purchase made through your link, for example, 10%.

The links will be tracked by the company so you can see exactly how much you are earning at all times.

Related Topic:

• 10 Affiliate Marketing Tips For Beginners
• 20 Best Affiliate Programs For Beginners (No Approval Required)
• How to Make Money with Affiliate Marketing for Beginners

15. Airbnb Your Place

Renting out your house is one of the best ways to earn some extra money and potentially make a passive income stream.

The Airbnb industry has been a boon for people who are looking to make money but don’t have the free time to participate in traditional employment.

Airbnb is a service that allows you to list your personal property for rental to a traveler for a fee.

The host (the owner) sets the pricing, the number of people allowed to stay, and the length of stay. The company does all the marketing and customer service once someone books their property through the Airbnb website.

However, these are the downside of this passive income idea:

• The host has to deal with local regulations and rules
• Issues with unauthorized parties
• Complains from neighbors
• Extra cost to cover missing, broken, or damaged assets

16. Dropshipping

You can also set up an online store to sell someone else’s products or services to make even more money – this would be called a “dropshipping” business model.

You don’t need any inventory, instead, you sell someone else’s product and they ship it directly to the customer themselves – this lessens the hassle for you.

Dropshipping has been around for a while, but this business model has seen some new developments over the years. New dropshipping tools are being created continuously and more shops are starting to get involved in this business model.

17. Rent Your Tools and Equipment

Most often when you’re done renovating your house, you would never need to use the tools and equipment that helped with the job.

An innovative way to make use of tools you may not need at the present moment is renting them.

You can now earn passive income by renting out those tools on sites like RentMyEquipment and SpareToolz.

18. Sell Your Video

When something interesting happens, it’s always a good idea to pull out your smartphone and capture the moment.

Did you know that all of the videos you recorded can be turned into passive income?

How is it possible? Simply by selling your videos to any news site. If they were selected and then published, you can make a handsome recurring income even for years.

Newsflare is one of the most popular video distributors out there. Upload your video today and reach millions of viewers.

19. Monetize Your Instagram Account

Making money from Instagram might be as easy as creating a sponsored post.

Sponsored posts are when you share your Instagram account with a brand and they provide you monetary compensation for every person that interacts with the post.

It’s harder to get noticed on social media these days unless you already have a huge following – but with the existence of Reels, it’s easier than ever.

Some of the sites you can sell this as a service:

• Shoutcart
• The Social Media Hat
• Seoclerk
• Social Pilot

Frequently Asked Questions