Doesn’t it sound great that there are possibilities to make money while you are sleeping? Totally passive. Luckily there is not only one way to do so, but rather a number of ways. Lean back and explore the best passive income ideas in 2024!
And why?
Go through your own life and think about how you made money previously. Most likely you are one of the roughly 80% to 90% of the US workforce working in a normal job. You are exchanging your time for money.
What will happen in the long-term?
As Warren Buffet once said:
And that’s making sense. You will sacrifice your time to make money until you are retired.
For me, life is too precious to just fill it with work. That’s why I want to share with you my best passive income ideas in 2024!
Table of Contents
Best Passive Income Ideas in 2024
Getting Things Straight
For me it is very important to get things straight, so that you don’t have any wrong expectations here.
Many of the following ways require a lot of commitment, hard work and a lot of time to earn your first money passively.
That’s probably the reason why 70% of people want to be self-employed, yet only 6% are.
And let me be honest: Those numbers are no surprise for me. It is, of course, more comfortable to have a stable working plan allowing you free-time on weekends or having the guarantee to get your regular wage.
However, this should not discourage you to get started and earn money passively. Because once you have overcome this hard starting time, all of your hard work will pay off instantly.
Think about it: You are waking up with $400 just made overnight! Or being multiple times a year on vacation and still making money! That feeling is priceless.
This should rather motivate you to finally get started to make passive income.
Best Passive Income Ideas in 2024
So here are my best passive income ideas in 2024!
Choose methods that meet your personal preferences and needs!
Rent Out Property
Renting out your property is probably the most classic of all ways following.
How does it work?
Well, it is actually as simple as it might sound like: Renting out property involves leasing a residential or commercial space to tenants in exchange for regular rental payments.
At its essence, it is a way to invest your money with the sweet benefit of appreciation and rental income!
When you decide to rent out property, try and follow the advice provided below:
- Conduct market research to determine competitive rental rates
- Screen potential tenants to ensure a reliable and responsible occupancy (without tenants = no money)
- Maintain the property to attract and retain tenants
Weighing Pros and Cons
Pros:
#1 Rental Income (while sleeping)
#2 Potential Property Appreciation
#3 Long-Term Wealth Building
Cons:
#1 Property Management Responsibilities (yes, that’s also part of it…)
#2 Tenant-related task (complaints, property damages, late payments, …)
#3 Property Maintenance Costs
Starting a Blog
If you don’t only want to generate passive income, but also want to establish a personal brand, blogging might be the go to way for you.
Start making money blogging requires knowledge in SEO and a decent amount of monthly visitors. Once you nailed this, you can start monetizing your blog!
In short, you can monetize your blog using the following 6 proven ways:
- Ads displayed on your blog
- Affiliate Marketing
- Selling digital products
- Email Marketing
- Sponsored Content
- Online Courses and Coaching
Especially in the beginning, establishing an own blog is challenging. You have to create high-quality content consistently without earning a single penny for weeks and months.
Therefore, try to choose a niche you are passionate about and really enjoy writing about. This will make it easier for you to motivate yourself to keep going!
But trust me, once you succeed in establishing your blog you will be rewarded with a lot of passive income!
Weighing Pros and Cons
Pros:
#1 Once established, (a LOT of) passive cash flow
#2 Low Start Up Costs
#3 Unlimited Potential (huge scalability)
#4 Creative Outlet (share ideas, thoughts, expertise, …)
Cons:
#1 Time-Intensive (in starting process)
#2 Many Things to Learn (SEO, Content Creation, Marketing Strategies)
#3 Competition (some niches are saturated making it harder to attract people)
Dividend Stocks
To break it down, investing in dividend stocks is a strategy where investors purchase shares of companies that regularly distribute a portion of their earnings (=dividend) to investors. These investors (YOU) are the so-called shareholders.
That means that if you purchase a stock you become a shareholder of this company.
Usually, dividends are paid out quarterly. However, there can be other schedules such as annually.
Investing in dividend stocks is a great choice for people seeking a steady passive income without the responsibility to manage their investment.
The only work you have to put in is taking research on the companies you are planning to invest in. Pay special attention to the following points:
- Dividend History: Growing and consistent dividends?
- Financial Statement: Consistent revenue growth? Strong profitability?
- Industry and Market Trends: How is the industry likely to evolve in the future?
Weighing Pros and Cons
Pros:
#1 Money While Sleeping
#2 Stability
#3 Long-term wealth accumulation
Cons:
#1 Market Fluctuations
#2 Dividend Cuts if company is facing financial challenges
#3 Lower Growth Potential (no reinvesting, but pay-out)
Affiliate Marketing
Doing affiliate marketing is another way to make your money while you are sleeping.
Affiliate marketing refers to promoting other people’s products. For each successful sale made through your unique affiliate link you will get a commission.
Sounds good, right?
To establish a profitable affiliate marketing business it is crucial to get a lot of traffic to your affiliate links.
To do so, one of the first steps on your affiliate marketing journey is to choose the right platform.
As presented above, one platform could be your personal blog. As not everyone is into writing thousands of words, there are a bunch of platforms still left. Choose whatever platform works best for you:
- Blog
- Social Media
- Email Marketing
- YouTube
- Podcasts
- Online Forums
If you look for more guidance consider reading the following posts:
Weighing Pros and Cons:
Pros:
#1 Passive Income
#2 Low Entry Barrier (no upfront costs)
#3 Flexibility (work from where and when ever you want)
#4 Low Risk (no product creation, etc.)
Cons:
#1 Income Variability (depends on costumer behavior, popularity and season)
#2 Competition (some niches are oversaturated)
#3 No Control over pricing or quality
Create and Sell Digital Products
Whether an ebook, online course or coaching. Selling your won digital products is one of the most profitable things to do in 2024!
Whereas creating this products might be the easier part, selling it is when it becomes challenging.
To be successful it is essential to have an audience who are willing to pay for your expertise.
Establishing this audience is usually a long process that requires endurance and consistency.
Similarly to affiliate marketing you can build this audience using several platforms. Remember: solid traffic is key!
Great platforms are for instance:
- Personal Blog
- Social Media (e.g. Instagram and TikTok)
- YouTube Channel
- Email Marketing
Online Courses and Coaching:
#1 Once created, passive cash flow
#2 Scalability
#3 Low Overhead Costs (higher profit margins that physical products)
#4 Control (set your own prices)
Cons:
#1 Time Investment
#2 Continuous Updates (to stay relevant and competitive
#3 Technical Challenges (in the creating process)
Purchase a Vending Machine
If you’re on a tight schedule during your office break, rushing through an airport layover, or simply in need of a quick snack in a public space, that’s when vending machines become your go-to lifesaver. Everyone knows them!
And let me say you this: Located at the right spot, vending machines can make you a lot of money passively!
The most important step is to look for the best location for your vending machine. Here are some examples:
- Office Buildings
- Schools and Universities
- Airports
- Gym and Fitness Centers
- Shopping Malls
- Public Transit Stations
Weighing Pros and Cons
Pros:
#1 Passive Income (if placed properly)
#2 Low Maintenance
#3 Scalability (not a single one, but two, three, four, …)
Cons:
#1 High Upfront Costs (vending machines can be expensive)
#2 Location Risks (success depends on location)
#3 Vandalism (leading to financial losses)
Create a Podcast
Creating a podcast is a great choice for those who don’t want to write endless-seeming blog posts or record YouTube videos.
Similarly to a blog or YouTube channel, podcasting is another opportunity to build a brand.
Usually, podcasts are in an audio format, but can be virtually as well. In most cases, in podcasts the host (potentially you) interviews guests and talks with them about controversial topics.
If you can imagine yourself doing this, try and record your first podcast any time soon.
And how can you make passive income with podcasting?
If you manage to attract a number of purple regularly, you can start thinking of monetizing your podcast.
That works quite similar to blogging or YouTube. The best ways are:
- Affiliate Marketing
- Sponsorships and advertisment
- Courses and Coaching
- Merchandise
- Memberships and Premium Content
Which of these ways works best for you depends on your niche and your personal needs.
Weighing Pros and Cons
Pros:
#1 Passive Income
#2 Scalability (with growing audience)
#3 Diverse Monetization Ways
Cons:
#1 Initial Time Investment
#2 Competitive Landscape (challenging to attract people)
#3 Equipment and Software Costs (e.g. microphone)
Buy Crowdfunded Real Estate
This is quite similar to buying and renting out real estates. However, crowdfunded real estates come with the sweet benefit of not having to deal with the annoying things.
What things are annoying?
Just think of tenants not paying rent, or repairs and management tasks. Annoying right?
With this method you use crowdfunding platforms to invest in properties. An experienced team then suggests suitable real estates and will take care of all the annoying stuff.
There is still more: You can start by even investing a few hundred dollars instead of hundreds of thousands!
For this service you usually pay an annual fee.
Weighing Pros and Cons
Pros:
#1 Passive Income
#2 Diversification (you can invest small amounts in various real estates)
#3 Low Entry Investments
#4 Reduced Risk Exposure
Cons:
#1 Lack of Control
#2 Lower Income (compared to high-risk, high-return investments)
#3 Fees and Charges
The Takeaway
At the end of each of my posts I provide a short takeaway. Just to make sure you remember the most important things you learned today! 🙂
Generate passive income through rental properties.
Ideal for those willing to invest in real estate and manage rental properties.
Consistently produce valuable content on a blog to attract and engage an audience.
Well-suited for those passionate about a niche or topic.
Invest in stocks that pay regular dividends.
Suited for those interested in stock market investments and seeking a source of consistent income.
Leverage your online presence to promote products or services and earn commissions on sales.
Ideal for those with a strong online following or content creators.
Connectable with blogging, podcasting, email marketing, your YouTube channel, … .
Share your expertise by creating and selling online courses.
Suitable for individuals with in-depth knowledge in a particular subject.
Buy vending machines to earn passive income through snack and beverage sales.
Great for those who search for a low maintenance and scalable business model.
Create a podcast to share your insights, interviews, or stories.
Monetize through affiliate marketing, sponsorships, ads and premium content.
Ideal for those who enjoy audio content creation and building a loyal audience.
Pool resources with others to invest in real estate projects.
Offers diversification and professional management, suitable for those seeking passive real estate income without the annoying things 😉
Final Thoughts
After all, earning money passively should be the goal of each and every one of you! The freedom this brings is immeasurable.
I can just dearly recommend to start.
At least you have got an overview about the best passive income ideas in 2024 now!