The Best Beginner-friendly Passive Income Ideas Of 2024
I’m sure you’ve come across hundreds of posts on Instagram or Facebook that want to teach you how to make passive income. Unfortunately, most of these are multi-level marketing schemes that will leave you exhausted, erode your credibility, and earn very little income.
So today, we’ve decided to introduce you to several passive income ideas for 2024 that will make you money in a dependable way. And, no, you don’t have to fill out surveys that earn you 20 cents.
But before we get into these passive income ideas, let me clarify one thing: “passive” doesn’t mean “no work.” Even the most hands-off ideas require some elbow grease.
We’re going to go through these ideas in two categories:
- Fully online passive income ideas
- And Offline easy passive income ideas
Let’s get started.
Digital Passive Income Ideas
1. Sell ebooks
If you are particularly knowledgeable about a certain topic, you can create an ebook and earn recurring passive income. For example, if you have extensive experience growing indoor plants, you can create a detailed ebook and sell it to plant enthusiasts online.
For this idea to work, you must:
- Choose a super interesting topic that people are willing to pay money for.
- Present a relevant or unique idea that is not available anywhere else. Or, at least, take a new angle to pique people’s interest.
- Have a personal brand showing you know what you are talking about regarding a topic.
The pros:
- Relatively easy to create since most ebooks are about 5000-10000 words.
- People love digital products and are willing to buy helpful resources that solve their problems.
The cons:
- Extremely competitive
- People are unwilling to pay much for ebooks, even helpful ones.
2. Create a course about something you’re knowledgeable about
Again, if there’s a problem people are facing and you can solve it, create a course and sell it. The good thing about this is that there’s no limit. You can create a course about anything under the sun.
If you just learned to crochet and are a pro, you can create a 6-hour crash course on crocheting. If you’ve been able to automate your business, there are people out there who would pay top dollar to learn and do the same.
Unlike ebooks, a course will take you more time. However, you’ll earn significantly more with courses. Plus, you can set and forget it, especially if you use a course hosting platform such as Udemy, teachable, etc.
3. Peer-to-Peer Lending
Peer-to-peer (P2P) lending is a modern twist on the age-old concept of lending money. Instead of going through a traditional bank, you can directly lend to individuals or businesses online.
How does it work? You lend money to borrowers on the platform, and in return, you receive interest on your investment.
P2P lending can be a great passive source of income. Once you’ve invested your money, it works for you, earning interest over time. While it’s not a guarantee to make you a millionaire overnight, and there are risks involved, it offers the potential for steady returns.
4. Start a YouTube channel or a Blog
Creating a YouTube channel or blog offers significant passive income potential, though it requires substantial initial effort. The key is choosing a niche and consistently producing engaging, valuable content to build an audience.
Once established, you can monetize through various streams. For YouTube, join the Partner Program to earn 55% of ad revenue. For instance, creator Celine earned $5,500 from nearly a million views with 31,000 subscribers.
Both YouTube and Blogs allow for sponsorships, where brands pay you to promote their products, and affiliate marketing, where you earn commissions from sales through your unique links.
YouTube offers additional options like channel memberships for exclusive content. Bloggers can also utilize display ads for steady income.
Note that this passive income idea requires ongoing content creation and audience engagement, but over time, you’ll earn from content produced months or even years ago.
5. Print on demand
Print on Demand (POD) is a simple way to turn your designs into products and make good money. You create your artwork, upload it to a platform like Printify, and connect it to your online store.
When someone buys your product, it’s printed and shipped directly to them. No need to hold inventory or deal with shipping. However, you have to provide customer support or hire someone to do it for you.
What can you sell? The possibilities are endless! There’s a market for almost anything, from t-shirts and tote bags to personalized planners and phone cases. You can even create low-content books like journals or coloring books.
6. Digital products
Unlike print on demand, you don’t have to ship anything. You’ll just create digital products, and then the customers can download and print the items themselves. This is a great low-budget way to start earning passive income.
You can sell:
- Social media templates
- Wedding invitations
- Thank you notes for small businesses,
- Puzzles, etc.
7. Dropshipping
This business model is booming, with the global market valued at $351.8 billion in 2024.
Here’s how it works: you set up an online store (maybe with Shopify) and list products you love. When someone makes a purchase, the order is sent directly to a supplier (maybe from Alibaba) who ships the product to your customer. That’s it! You handle the marketing and customer service while the supplier takes care of the rest.
Dropshipping can be very profitable, but you’ll need to:
- Source very high-quality products.
- Invest in exceptional customer support.
- Find decent shipping that’s quick/reliable, and affordable for both you and the customer.
- Find products that people are looking for.
Offline Passive Income Ideas
These are worth a look for passive income ideas that are not entirely online.
8. Rentals
Simply go the old-fashioned way of buying and renting a property out to get monthly income. This option can be a steady income stream, but it also comes with responsibilities like finding tenants, dealing with repairs, and managing the property. If you don’t want to handle all that, you can hire a property manager, but that will eat into your profits.
Alternatively, you can invest in Real Estate Investment Trusts (REITs). With REITs, you buy REIT shares and become a part-owner of a portfolio of properties. REITs pay out most of their profits to shareholders as dividends. You’ll get the ‘rent money’ without the ‘landlord headaches’.
9. Rent out Personal Equipment
If you have a lot of useful equipment, you can consider renting it out to those who require them but don’t want to invest in purchasing them. A few good examples would include:
- Power tools such as pressure washers, floor sanders, generators, etc.
- Camping gear
- Camera gear
- Sports equipment
- Kids bounce houses
- Expensive music instruments
- Automotive accessories like bike carriers and roof racks
Consider listing these items on FB marketplaces and local community groups to rent them faster. Once you get steady rental requests, you can pull in a significant low-effort income. But be sure to have systems in place to protect yourself in case of damage or customers failing to return equipment.
10. Vending Machine
Vending machines can also be a lucrative passive income venture. One entrepreneur featured on CNBC’s Make It reported turning a $4,500 investment in vending machines into a business generating $200,000 to $300,000 annually.
To illustrate the potential earnings from a vending machine business, let’s look at an example shared by the entrepreneur on CNBC.
Source: CNBC
While the potential for profit is high, so are the initial costs. Vending machines can range from $1,000 to $10,000, and finding prime locations is essential but a bit troublesome.
Once in place, regular maintenance and restocking will be needed, but you can make it more passive by hiring part-time help.
Final Thoughts on Passive Income Ideas
Making any of these ideas is very possible. However, success demands action. Here’s your roadmap to get started:
- Assess your skills and resources and match them with the ideas that fit best.
- Test one or two strategies before going all-in.
- Set realistic expectations because passive income takes time to build.
- Each idea requires specific knowledge— acquire it.
- Be patient and persistent.
Don’t allow analysis paralysis to hold you back. Choose an idea, make a plan, and take that first step today. Your future self will thank you for the financial freedom you’re about to create.
Related: The Ultimate Guide To Budgeting In Your 20s: Budgeting Basics 101
Now it’s your turn. Which passive income idea are you most excited to try, and in which country do you plan to implement it? Share your thoughts in the comments.
