How to Make Money Work For You | Top 5 Passive Income Ideas
Discover how to make money work for you with these top 5 passive income ideas. Start your journey to financial freedom today with AWM's expert guide.
Passive income is one of the most attractive ways to make money – even while you sleep. The key is to invest time in building something upfront that will generate income down the road with minimal effort on your part. This is how you can get your assets working for you.
According to data from the US Census Bureau, 20% of American households earn passive income either through dividends, interest, or rental properties. This article is for you if you’re looking for interesting passive income ideas. With the possibility of a recession in 2023, we list some of the most notable passive investing strategies to help you build a stable income.
1. Start an eCommerce Store
According to Statista, revenue from retail eCommerce in the US is estimated at approximately $905 billion in 2022. By 2027, online shopping revenue will exceed $1.7 trillion. This growth rate shows that eCommerce is becoming a profitable option for online retailers.
Interestingly, Google also suggests that despite the recession, consumer tendencies didn’t change during the holiday season. This means now is the right time to start an online eCommerce venture with stable and evergreen products, such as household goods, kitchenware, furniture, etc.
Currently, home and kitchen is the most popular product category for businesses selling on Amazon. In fact, a survey reveals that over 30% of consumers are extremely likely to purchase kitchenware in the next 12 months. So it might be a good idea to explore this product category.
2. Invest in Real Estate
Investing in real estate is one passive income strategy always in demand. You can enjoy predictable and passive cash flow, exceptional returns, tax benefits, and diversification with the right assets.
You can either earn rental income through your investment property or buy shares in real estate investment trusts (REITs) to enjoy the returns without doing any work.
Another option is to explore real estate crowdfunding, which allows pooling your money with other individuals to invest in real estate. Usually, a company is involved that directly owns and manages the real estate and passes along revenues to the investors.
Earlier, real estate investing used to take up a lot of time, personal capital, and expertise. However, that’s no longer the case. Today, you can use many apps that have made it easier to generate passive income through real estate investment. Some of these apps include Fundrise, Roofstock, and RealtyMogul.
However, keeping in mind the state of rate hikes in 2023, we advise real estate ventures for people having sufficient capital to back up their investments. It’s also the best time for them to invest with a possible market correction on the verge. On the other hand, people opting for mortgages might wait a little bit further until the interest rates go back lower.
3. Create Digital Products or Online Courses
Digital products are assets that users cannot touch physically. These include downloadable or streaming files such as templates, e-books, plug-ins, or printable PDFs.
Digital products are great passive income sources as they have high-profit margins. You only have to create the asset once, and you can sell it repeatedly. You don’t need any storage or inventory.
Just like digital products, you can create and sell online courses repeatedly without holding any inventory or stock. The best part is that you can create a course on anything, whether it’s marketing, illustration, entrepreneurship, cooking, or even fishing! On average, successful course creators earn around $1,000 to $10,000 per month, and some of the top course creators can even make 6- to 7-figure incomes per year.
Some eLearning platforms you can use to create and launch online courses are SkillShare, Teachable, and Udemy. According to Skillshare, on average, teachers earn between $200 to $3000 per month, whereas the top-earning teachers earn more than $100,000 per year on the platform.
4. Become an Affiliate Marketer
As an affiliate marketer, you advertise another company’s products or services on your own platform and receive a commission from any sale that comes from your referral (usually through a unique code or link).
It’s a great way to combine side hustles and boost your income. For example, if you are a social media influencer or have an online store, you can get into affiliate marketing and gain some passive income while working on your passions. According to Glassdoor, on average, affiliate marketers in the US earn $78,308 per year, while the top earners make up to $103,000 annually.
Leadpages, ConvertKit, ClickBank, and ShareASale are some affiliate marketplaces where you can find the right products. The Shopify Affiliate Program might be a great side hustle for those already working in the eCommerce niche.
5. Invest in Vending Machines or ATMs
You can buy or rent an ATM and place it at either your own site or someone else's site (but you'll have to share the revenue in this case). You will earn a profit every time a consumer uses the ATM and pays the usage fee.
You can also invest in buying or renting vending machines. You must purchase items in bulk (to reduce cost), stock the vending machines, and place them in high-traffic sites. However, you'll have to share revenue with the site owners just like with ATMs. You can also outsource restocking for more convenience.
Some of the platforms where you can find products in bulk are wholesale sources like Alibaba, cash & carry suppliers, and popular retailers like Walmart, Costco, and more.
Launch Your eCommerce Store with AWM
Although all these passive income ideas are really effective in generating extra income, eCommerce could be your best bet if you’re looking to build a more steady, reliable source of income. With online shopping on the rise, you will have plenty of opportunities to earn money with minimal effort.
Not sure where to start? This is where our eCommerce experts can help. We offer Walmart, Facebook, Shopify, and Amazon automation and consultancy services to help you establish a profitable eCommerce store.
Get in touch to learn more about how we can help you set up an online storefront.