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How to Make Passive Income

Emily Dawson
By: Emily Dawson
Oct 13, 2020 • 7 min read

How to Make Passive Income

Passive income is the key to making money doing very little. Passive income is revenue that comes in without you interacting with it. You create a product or invest in something, and you’ll continue to make money as long as what you have is available. Here are a few ways you can make passive income and start earning big!

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One easy way to make passive income is through writing an e-book. Once you publish your book, whatever it may be about, you will receive money each time you make a sale. As long as people can find your book on the internet, you will always be able to make money off of it. If you publish an e-book through a publishing company, you will receive royalties on the book every year. Royalties are a percentage of the sales profit and are common in both electronic books and physical. Imagine writing multiple e-books; you could be raking in the money only doing the heavy work in the beginning!

Real Estate

One way that people get rich is by renting out their property. If you buy a house, you can rent it out to whoever wants to live there, and they will pay you rent. You can put the money that you make off of renting toward the mortgage on the house. Once you pay it off, that’s when you start making a profit. People also do this with vacation homes; you can have the home available for when you would like to use it and make money off of it when you are not there.

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More on Renting

The one pitfall that comes to owning real estate is maintenance. If something is wrong with the house, that falls on to you to pay for and upkeep. As long as you continue to rent out the property, you will make money to pay off things like new plumbing. You can make a profit quickly if you buy a rundown estate and fix it up. Spend little money on the property itself and more on the renovations. This way, you can make the money from renovating back quickly directly from your renters.

Index Funds

Index funds are an easy, low-risk way to invest in the stock market. What you’ll want to do is open an account with an online broker like Charles Schwab or The Vanguard Group. These companies will take care of investing your money into stocks, making it a hands-off experience. When you buy an index fund, you pick a profile of stocks that your money will be invested in. For example, the S&P 500 is an index of the top 500 stocks in the stock market. There are index funds specified to industries such as technology, which you could invest your money into companies like Microsoft, Apple, and Google. The online broker will make the trades for you within those companies. You can sit back, log into your account, and watch your money grow.

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Social Media Marketing

If you ever see an Instagram post that says, “If you use this code, you can get a 15% off.” That person is promoting a product and making passive income through affiliate links. This means that the person who posted about the product is affiliated with the company and will make money every time their code is used. This is a great idea if you have a large social media following because you reach a wider audience. As long as there isn’t an expiration on your code, you will always make money when used. Some common affiliates are Wix, Shopify, and Honey. If there is a company that you like and would like to be involved with, check to see if they have an affiliate program so that you can start making money.

Blogs and Videos

You can begin a blog, create a website, or upload a YouTube video to make passive income. You’ll have to upload good content to get enough of a following to generate clicks to make money. The internet is forever, and people will always be able to come back to your videos at any time as well as discover you. With YouTube, you have to set up your account to be monetized and enable ads on your videos. The more views you get, the more you will get paid. In terms of blogs, the only ways you can make money are through memberships and ads. You will receive money every time someone becomes a member or clicks on an ad on your site. You can also set up affiliate links on your blog as well.

Stock Photos

Ever wonder where stock photos come from? Well, someone had to take them, and that could be you! Companies are often looking for photos to put on their websites or for their PowerPoint presentations. They go to stock photo websites like or to find what they are looking for. This is a great way to turn your photography hobby into a money-making machine. You can submit your photos to these websites and make a commission every time someone downloads your image. There are some criteria for submitting photos depending on the website but nothing that isn’t doable. Scope out what stock photos are most popular and what seems to be selling, and you’ll be on your way!


Making passive income can be easy once you get past the initial content creation, set up, or purchase. It’s all about having something that will always generate income. Once all the hard work is done, you just have to watch the money start flooding in. It’s a great way to make some extra money and buffer for a job you already have. There are thousands of other ways you can make passive income. What are you waiting for? Go get started!

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