There are many ways to build a passive income. Especially through the Internet, many activities can be done from the comfort of your own home. This is very practical, especially in times of the Corona crisis, as many people have more time to deal with the topic and thus have the opportunity to build up a passive income. In the following we present you 25 possibilities.
1. WRITE A BOOK
Books are one of the most classic ways to build a passive income. They require a lot of work and the use of creativity in the run-up. But once they are finished, they can be resold years later and provide you with a continuous flow of money.
2. WORKBOOKS
Workbooks are workbooks that can be sold as digital and print versions. They are filled with tasks that can be solved by the buyer. For example, they can be used to learn a new language. Like books, workbooks require a lot of effort in advance, but can then be sold to a large target group, depending on the topic.
3. SELLING STOCK PHOTOS
If you like photography and editing images, selling stock photos can be the ideal way to earn money. There are now many platforms on which images are offered for sale and purchase. Here you can upload your pictures and get a profit share for each sold picture. The same applies to stock graphics.
4. INTEREST AND DIVIDENDS
Even though the interest and dividends have been in the basement for ages, there are some ways you can still make money with them. One example is to put the money into a fixed deposit account, because there is higher interest there. You can also build up a passive income by trading securities such as shares, funds and ETFs. Here one should become acquainted however intensively with the topic.
5. NICHE SITES
If you are familiar with a topic, which is not necessarily very popular, you can create a website for it. This could be a blog, for example, where you write about the topic. You can earn passive income with advertising, affiliate links or cooperations.
6. AUDIO FILES
Audio files can be your book as an audio book version, music recordings of your hobby band or special sound effects. All these files can be resold easily and generate a passive income. This is also possible with podcasts if you work together with other companies and promote their products in your podcast episodes.
7. SUBLETTING AN APARTMENT
If you are traveling for a longer period of time or have a room available, you can also earn money with your apartment. This is especially good if you live in a city where large trade fairs are held regularly. At this time of year, all hotels are often fully booked and many people are looking for accommodation. Platforms like AirBnB make it possible to sublet your apartment. However, you must clarify this with your landlord.
8. REAL ESTATE
Only the ownership of real estate does not yet allow you to generate passive income. Real estate only becomes interesting as a source of income when you do not use it yourself but rent it out to others. Regular rental income generates a relatively high income stream. Yields of around five percent are possible. Of course, this assumes that you can afford to invest in real estate.
9. MONETIZE THE BLOG OR WEBSITE
If you have your own website or blog, you should not miss the opportunity to build up a passive income with this. For example, you can place advertising banners or collaborate with other companies and promote their products. Of course, this works best with products that match your website.
10. PERSONAL LOANS
Online there are numerous platforms where users can obtain loans from private individuals. So if you already have a good amount of capital available, such platforms can be very interesting for those who are willing to give money. Because here you can get very attractive interest rates paid out, which are quite profitable in the long run.
11. DEVELOP APPS AND SOFTWARE
Admittedly, this tip is a bit more special. It assumes that you are familiar with programming and developing apps and software. Either because you come into contact with them for business or pleasure. If you then have an idea that adds value to the users and implement it in the form of a program, you can earn good money and build up a passive income.
12. CAR RENTAL
You can rent out not only your apartment to others. You can also give your car to others if you don’t need it often. Providers like getaround make it possible. You simply register on the platform and set how much it should cost the user per hour if he uses your car.
13. CROWDINVESTING & CROWDLENDING
Crowd investing and crowd lending are also ways of generating passive income, but with a certain degree of risk. In crowd investing you become a partner of a company for a certain period of time, in which you invest a certain amount of capital. At the end or during the period you will get paid interest. Crowdlending, on the other hand, means that entrepreneurs or private individuals collect many smaller amounts of money from a mass of people. These are paid back after a certain period of time.
14. AFFILIATE/ COMMISSIONS
If you have your own blog or website, affiliate marketing can be very profitable for you. The principle is simple: You recommend a certain product to your readers and link them to the manufacturer’s site. An example of how affiliate marketing can help you build up passive income is the online merchant Amazon. For each purchase of the product that was purchased through your link, you will receive a commission paid.
15. DIGITAL INFO PRODUCTS, LIKE E-BOOKS
Digital information products, such as eBooks, have the advantage over print products that they do not incur any storage costs. That in turn saves you a lot of money. What’s more, they can be reproduced as often as you like without incurring additional costs. You don’t even necessarily need a publisher to publish e-books, because platforms like Amazon offer you the opportunity to publish the book yourself.
16. YOUTUBE VIDEOS
There is hardly a topic on which a video has not been shot on YouTube. And rightly so, because with YouTube you can also build up very good passive income. For example, if you are talented in handicraft or have another skill with which you want to help others, you can make a video about it and upload it. You can earn money by running ads before the video or by displaying a banner ad during the video.
17. DROPSHIPPING
The drop-shipping principle is a very good way for traders to earn money passively. An online store is opened where products of other dealers are sold. Through automated sales processes, the store runs independently in the long run. Normally products are sent from the wholesaler to the retailer. This step is omitted and the shipping is done by the manufacturer personally.
18. AMAZON FBA
Amazon FBA (Fulfillment by Amazon) offers everyone the opportunity to sell their own products at Amazon. So if you make something, be it t-shirts, posters or keychains, you can resell it so efficiently. Amazon takes care of all the logistics, so you are relieved of a lot of work.
19. CREDIT CARD REFUNDS
Some credit card providers offer a redemption bonus in the range of 1–5 percent. This is a very easy way to save some money since you are going shopping anyway. So you can build up a passive income by simply paying less for the goods you buy.
20. BUY A BLOG
You don’t always have to create a blog yourself. In some cases it can be much more worthwhile to buy a blog with very good traffic. This will then generate a passive income for you through the advertisements and banners played out there. As a rough rule, blogs can be said to be worth 24 times their monthly.
21. INVESTMENT IN REITS
Buying and subletting real estate is one way to generate income. But you can also use real estate in an even more passive way for you. With the help of REITs (Real Estate Investment Trusts), investment funds for real estate, you can earn higher dividends than with shares, for example. Your funds are managed by professionals and you can always sell them again. This is also a good way to build up a passive income.
22. RENTING GARAGES
Besides apartments and houses, garages can also be bought and rented. Especially in big cities like Cologne, Hamburg, Berlin and Munich, parking spaces are very scarce and people’s stress is high when they search for parking spaces forever. In such big cities it is a good idea to buy and rent garages and parking spaces for cars.
23. BECOMING AN INFLUENCER
Becoming an influencer may sound complicated, but it is not. In fact, anyone can become an influencer if they share their knowledge and ideas on a certain topic with other people. If you are very familiar with a topic, you can share your knowledge with others via a blog, Instagram, YouTube or Facebook channel. As soon as you reach many people with your content, you will usually be approached by companies that want to cooperate with you and through which you will earn your income. Affiliate marketing can also be a great way for you as an influencer.
24. ADVERTISING ON YOUR CAR
Your car can also serve as advertising space and generate additional income. On platforms like carexy you can put a picture of your car and set the price, how much you want for the advertising. Interested parties contact you via the platform and your car becomes an advertising object.
25. NETWORK MARKETING
Network marketing is a form of direct sales. Products are sold directly to the consumer. As a distributor you try to find other distributors who also sell these products. This creates a network of partners from whose sales you can profit yourself.
Hope you have an idea now and start action!
