What are Passive Income Streams? Passive income streams are sources of income that enable a person to make a regular, sustainable income without having to trade time for money. Although the income you earn is passive, it takes time, money, effort and skill to initially build, and then run a passive income stream to keep it profitable.
Passive income streams can consist of online, or peer-to-peer endeavors, side hustles, businesses or investments. In this article, we will look at the different types of passive income streams and how you can earn income from them. Whether you choose to buy existing streams (learn more in our guide here) or build your own from scratch, passive income streams require effort, dedication, money, skill, and time to become passive and profitable. Let’s dive right in.
Online Passive Income Streams
The internet offers countless opportunities for you to earn passive income and supplement your day job or eventually even quit it. Whether your intention is to make fast cash or regular, sustainable, and long-term income, there are many available options online. The best part? Making money online is not as difficult as many people think.
Online passive income streams differ. Some streams can provide quick results (ex. side hustles), while others potentially revolutionize your finances in the long term (ex. blogging). Most online ideas start at the foundation of having monetized content, generating traffic, and growing your audience. Although it is not an easy task, it is totally worth it in the end. Online/web-based passive income streams include Monetized Blogs, Affiliate Marketing, eCommerce, Influencer Marketing, Niche Sites, and more (click on the links to see full guides on our site).
You can choose to start and build your own passive income stream (e.g. a niche site) or buy a niche site that already earns passive income. Both ideas require investment and it takes time, effort, and money for you to break even and start earning a passive income. You can combine two or more online income streams that are already earning passive income. For example, you run a monetized blog, YouTube channel, niche site, eCommerce site etc. Obviously, the more successful streams you have, the more money you earn passively. For more details about online ideas that you can turn into passive income streams, please check out our online passive income guides.
Peer-to-Peer Passive Income Streams
Nowadays, it is easy to buy, sell, rent, and trade goods or services, thanks to peer-to-peer marketplaces. They are mostly online-based (through peer-to-peer platforms) or apps that allow buyers and sellers to work directly with each other. These ideas are fairly easier to carry out because you trade goods or services you already have or own with people who need them for compensation. Compare blogging or podcasting with advertising on your car or renting your personal belongings. Peer-to-peer passive income ideas usually demand a lower financial investment since you already have the items. Some of these ideas can also provide income quicker income since you just need to list your items and get requests to get started. Renting your parking spot is extremely easy and passive for example since you just need to list it and wait for rental requests.
For example, let’s say you have a car you do not use, and an empty room in your house. You can rent your car on platforms like Turo, and the spare room on Airbnb. You can also advertise with your car and rent out your home to film crews. Most peer-to-peer ideas can be combined to help you earn more – the reason why they are popular passive income streams. Some peer-to-peer passive income ideas and streams include flipping properties, advertising with your car, renting your (things, cars, space, bikes etc.) ride-sharing apps etc. For more details about each peer-to-peer passive income ideas that can help you create a passive income stream, check out our peer-to-peer passive income guides.
Passive Income Side Hustles
If you have a passion, talent, skill, or knowledge that others can benefit from, you can cash in on it with a side hustle. Side hustles are not very passive since they require you to trade your time for money, but they are a great place to get started! And there are ways you can turn side hustles into a passive income stream and earn money doing something you are good at or passionate about. For example, you might be passionate about dogs. You can earn passive income by offering pet and house sitting services and creating and selling eBooks about dogs. It all depends on what you love and are able to do or learn.
You can make side hustles more passive by outsourcing or automating (learn more about how to in our guide here). Side hustles that can help you create viable passive income streams and include ideas like charging scooters, food delivery services, 3D printing and more. For more details about passive income side hustles that can help you create a passive income stream, see our side hustle guides.
Passive Income Business Streams
Currently, many businesses can help you create passive income streams by outsourcing or automating. Building a successful business venture is an active endeavor that takes time and can demand a lot of capital. Getting your business off the ground, automating, and outsourcing to turn it into a passive income stream requires a huge investment (both time and money). Like online and peer-to-peer passive income streams, passive income businesses can be combined to earn more passive income but this may require even more time and money.
For example, you may want to create a passive laundromat. You can earn passive income by automating the service or employing an attendant to run it for you. If you have space, you can diversify your passive income streams by putting an ATM or vending machine, opening a shop, selling coffee and more. You can also buy an existing car wash, automate it or outsource services and turn it into a passive income stream. For details on how to make a business more passive, please view our 6-step guide. Popular passive income businesses include automatic car wash, laundromat, food truck, game machines, and ATMs. For more details about passive income businesses that can help you create a passive income stream, check out our passive income business guides.
Passive Income Investments
Of course, there are also passive investments such as stocks, bonds, peer-to-peer lending, real estate and more. We do not focus on these ideas as much on Beginners Passive Income. You can check out some passive income investment ideas here.
Whether you choose to start and build your own passive income stream or buy an existing one, it might take time for you to start earning passive income from it. You may be very actively involved for months or years until you can make your idea more passive. Remember you will need to invest time and money to turn an idea into a passive income stream or buy an existing stream, break-even, and start earning passive profits.
Can you buy passive income streams? Yes you can purchase existing passive income streams. There are many passive income streams (both online and physical) and you can buy and earn money from. Your ideal passive income stream depends on factors like the initial time investment you are willing to put in, your business skills, risk tolerance, centers of interest, capital. Learn more here.
Can you combine passive income streams? You can combine two or more passive income streams and make more income passively. It all depends on your financial capability and what you are willing and able to do. For example, you can run a monetized blog, YouTube channel, and eCommerce site and earn passive income from each source.