Passive income ideas are much sought by most people today. In fact, a single Google search of the term passive income generates more than 127 million results. A search of passive income ideas has more than 84 million results. It’s easy to know why. Who doesn’t like the idea of making money for doing nothing?

Still, passive income is highly misunderstood concept. This is because most people think that passive income is an easy way of making money. They forget the hard work that is required when starting. In this article, we will look at the 10 best passive income ideas you can start using today.

Peer to Peer (P2P) Lending

P2P lending is a concept that allows ordinary people like you to lend your money to other people or to companies. This is done through intermediary companies that provide the technology that powers the marketplaces. The biggest company in the industry is Lending Club. Other companies that are popular in peer-to-peer lending are Upstart and Prosper. To start investing in p2p lending, you need to check whether you qualify. Basically, if you earn above $70k per year you do qualify. After this, you should create your account, deposit funds, select people to loan the funds to, and wait for your payments. Alternatively, these companies have algorithms that can help you create your portfolio.

Here are the tips for succeeding in peer-to-peer lending

  • Diversify your investment across the platforms.
  • Invest only a small portion of your funds in these p2p platforms.
  • Understand the risks involved.
  • Have a strong emergency fund.

Invest in Stocks, Mutual Funds, and ETFs

Investing in the stock market is a good way for you to make passive income. People who invested in a company like Shopify when it went public have more than doubled their returns. Also, people who invested in the main stock indices like S&P after the crisis have doubled their funds. If you are a good stock picker, we recommend that you invest in individual stocks. If you are not, we recommend that you create a good portfolio of low-cost mutual funds and Exchange Traded Funds (ETFs).

Here are a few tips for investing in stocks and mutual funds

  • Do your research before you invest in anything.
  • Create a diversified portfolio.
  • Have proper risk management strategies.
  • Hold the assets for the long-term.
  • Don’t follow the crowd.

Affiliate Marketing

Online marketing has become so popular today. In fact, most companies are selling their products online. To attract more sales, most companies are using influencers and digital marketers. They then pay them a commission that is based on the amount of sales they generate. If you are good at online marketing, you too can do that. If you are interested, create several niche sites that will recommend your products to your audience to the companies you are recommending.

Here are a few tips to be a great affiliate marketer.

  • Focus on unpopular products. It will be difficult for you to compete with other popular influencers if you focus on popular things like smartphones.
  • Create quality websites. These will help you appear like an authority in your industry.
  • Embrace social media. This is the best way for you to become successful.
  • Rank high on Google.


This is a method very similar to affiliate marketing. Dropshipping is a process in which you create an online store that sells things you don’t own. Once a customer buys these items, the seller sends them to them. The advantage of dropshipping is that you don’t own any inventory. Like with affiliate marketing, you should work hard to ensure that your website is ranked high in Google. You should also embrace social media to ensure that most people view your products.

Create a Course

The demand for online courses is on the rise. So many people are turning to the internet to learn new skills. This has created an excellent opportunity for people trainers to make money. One way of doing this is to create your courses and post them on your website. You will then charge people to access your trainings. A better way is to use the existing training platforms like Udemy and Coursera, which have millions of monthly users.

Tips for creating quality online courses

  • Produce courses in an industry you are familiar with.
  • Do your research before you start.
  • Make the courses interesting.
  • Invest in a good sound equipment.

Create a Mobile Game

If you are an experienced mobile developer, you can create a mobile game and post it on Android and iOS. With billions of people using smartphones, the market for a good quality game is enormous. In fact, most well-designed games make their developers millions of dollars every year. If you are not a good developer, you can use the services of a good developer.

Tips for creating a successful mobile game

  • Ensure that it has a good user interface.
  • Make it as simple as possible.
  • Don’t over-monetize it
  • Reply to the user reviews.

Write a Book

If you are an expert in any industry, you could write a book. These days, you don’t need a publisher to be a successful author. Instead, you can write a book and post it in Amazon or sell it on your website. If the book does well, you will be waking up and seeing money on your account.

Here are the tips of writing a good book

  • ­Give it a good-looking cover.
  • Ensure that it is well formatted and edited.
  • Write in an industry you are familiar with.
  • Use social media to market it.

Ride Hailing Services

If you need free money, ride hailing is a good option for you. It is a good thing because it actually costs you nothing. For example, if you drive to work every day, you can easily sign up with Uber and Lyft and carry a passenger on your way to work. You can do the same as you go home in the evening. By doing that continually, you can make a lot of money.

Tips for successful ride hailing

  • Ensure that your car is well-maintained.
  • Offer a good service to your customers.
  • Don’t overdo it.

Use Robo-Advisors

If you are not experienced in investing in stocks and bonds, you can use the popular robo-advisors. These are companies like Betterment, Ellevest, WealthSimple and Wealthfront that offer cheap money management services. These companies invest in various instruments and offer great returns for investors. All you have to do is to create your account, get verified, deposit money, select your risk profile, and the algorithms will do the rest.

Here are a few tips for using robo-advisors

  • Diversify across the various companies.
  • Have a long-term approach.
  • Don’t over-react.

Build or Buy Rental Houses

This is an easy way of making passive income. However, unlike the rest, it requires a lot of initial capital. To build, you need to select a good location, get approvals, hire a contractor, and have the house built. After this, you should hire an agent to advertise and lease your property. If you are buying, do your research, buy good houses, renovate them, and find tenants.

Final Thoughts on the Best Passive Income Ideas

While there are many methods of making passive income, these are the most ideal ones for you. Remember, passive income is never easy. It takes a lot of hard work, dedication, and strategy to succeed.