In today’s world, having multiple streams of income is essential. Side hustles can be a great way to supplement your income and create a passive stream of revenue. However, not all side hustles are created equal. The key to success is identifying your skill set and finding side hustles that leverage them.

In this guide, we’re going over the 47 best side hustles to generate passive income.

47 Hustles for Passive Income

These side hustles vary in terms of required initial investment, time commitment, and potential returns. In today’s high-inflation economy, more and more people are looking for ways to diversify their income. One report found that 44% of Americans at the end of last year had a side hustle. Take a look at some of the most popular ways to generate passive income.

1. Rental Property Investment

Investing in real estate and renting out properties can provide a steady stream of passive income through rental payments. It is a good side hustle because it offers long-term wealth accumulation, potential tax benefits, and property value appreciation.

2. Create and Sell Online Printables 

Starting an online printable store can be a great side hustle for generating passive income. Create and design printable templates, such as planners, calendars, worksheets, coloring pages, or party decorations, and sell them on your website or platforms like Etsy. Once the designs are created and listed, you can earn passive income as customers purchase and download your printables. With proper marketing and optimization, your printables can continue to generate sales even while you focus on other aspects of your life.

3. Dividend Investing

Investing in dividend-paying stocks allows you to earn regular income from the dividends distributed by the companies you invest in. It is a good side hustle because it provides a passive income stream, the potential for capital appreciation, and the opportunity to reinvest dividends for compounding growth.

4. Invest in High-Yield Savings Account

Keeping your money in high-yield savings accounts with competitive interest rates can generate passive income through interest earnings. It is a good side hustle because it requires minimal effort, provides liquidity, and offers a safe place to park your money while earning interest.

5. Create and Sell Online Courses

Sharing your knowledge and expertise by creating and selling online courses can generate passive income. Once the course is created and marketed, it can continue to generate sales without much ongoing effort. It is a good side hustle because it leverages your skills, allows you to reach a global audience, and offers scalability.

6. Affiliate Marketing

Promoting products or services through affiliate links and earning a commission on each sale is a popular passive income stream. It is a good side hustle because you don’t need to create your own products, and you can earn passive income by recommending products or services you believe in.

7. Create and Sell Stock Photos or Graphics

If you have photography or graphic design skills, creating and selling stock photos or graphics can generate passive income. It is a good side hustle because it allows you to monetize your creative skills, earn royalties on each sale, and have the potential for recurring income.

8. Develop and Sell Mobile Apps

Creating and selling mobile apps can provide passive income through app downloads, in-app purchases, or advertising revenue. It is a good side hustle if you have programming skills and can develop useful or entertaining apps that resonate with users.

9. Start a Blog and Monetize It

Building a successful blog and monetizing it through advertising networks or sponsored content can generate passive income. It is a good side hustle because it allows you to share your passion or expertise, build an online audience, and earn income from ad placements or sponsored collaborations.

10. Create and Sell Digital Products (ebooks, templates, music, etc.)

Creating and selling digital products like ebooks, templates, music, or other downloadable content can generate passive income. It is a good side hustle because it leverages your creative skills, has low production costs, and can be sold repeatedly without inventory management.

11. Operate an E-commerce Store

Building and running an e-commerce store, whether through dropshipping or selling your own products, can provide passive income. It is a good side hustle because it allows you to tap into the growing online shopping trend, reach a wide customer base, and automate certain aspects of the business.

12. Buy and Sell Domain Names

Buying and selling domain names, also known as domain flipping, can generate passive income through profitable domain sales. It is a good side hustle if you have knowledge of market trends and can identify valuable domains.

13. Invest in Real Estate Investment Trusts (REITs)

Investing in REITs allows you to earn passive income from rental properties or real estate portfolios without the need for direct property ownership. It is a good side hustle because it provides exposure to the real estate market, offers regular dividends, and eliminates the hassle of property management.

14. Create and Sell Software or Plugins

Developing and selling software or plugins can generate passive income through sales or subscriptions. It is a good side hustle if you have programming skills because it allows you to create digital products that address specific needs or enhance existing software.

15. Invest in Index Funds or ETFs

Investing in index funds or exchange-traded funds (ETFs) provides a diversified portfolio and passive income through capital appreciation and dividends. It is a good side hustle because it offers broad market exposure, low fees, and requires minimal effort in managing the investments.

16. Create a Podcast

Creating and monetizing a podcast through sponsorships, advertising, or listener donations can generate passive income. It is a good side hustle if you have knowledge or expertise in a specific niche, enjoy audio storytelling, and can consistently produce engaging content.

17. Build and Sell Niche Websites

Creating and selling niche websites that generate income through advertising, affiliate marketing, or product sales can provide passive income. It is a good side hustle because it leverages your knowledge or interest in a particular niche, allows you to build multiple income-generating websites, and offers the potential for recurring revenue.

18. Participate in Affiliate Programs

Joining affiliate programs and promoting products or services can earn you passive income through commissions on sales. It is a good side hustle because you can choose products that align with your interests or expertise, leverage your online presence, and earn income by recommending products to your audience.

19. Invest in Cryptocurrency

Investing in cryptocurrencies like Bitcoin or Ethereum can generate passive income through price appreciation or staking rewards. It is a good side hustle if you have an understanding of the cryptocurrency market, are willing to take risks, and can stay updated with market trends and developments.

20. Start a YouTube Channel

Creating and growing a YouTube channel can generate passive income through ad revenue or sponsorships. It is a good side hustle if you enjoy creating video content, have the expertise or a unique perspective to share, and can consistently produce engaging videos to attract viewers.

21. Develop and Sell WordPress Themes or Plugins

If you have web development skills, creating and selling WordPress themes or plugins can generate passive income. It is a good side hustle because it taps into the widespread use of WordPress, allows you to cater to specific website needs, and provides recurring income through sales or subscriptions.

22. Create and Sell Print-on-Demand Products

Designing and selling print-on-demand products like t-shirts, mugs, or home decor items can generate passive income. It is a good side hustle because it requires minimal upfront investment, eliminates the need for inventory management, and allows you to leverage online platforms for printing and fulfillment.

23. Write and Publish an Ebook

Writing and self-publishing an ebook allows you to earn passive income from book sales. It is a good side hustle if you have knowledge or expertise in a specific subject, enjoy writing, and can market your book effectively to reach a wide audience.

24. Create and Sell Online Memberships or Subscription Services

Building an online membership or subscription-based service can generate passive income through recurring payments. It is a good side hustle because it provides a steady income stream, allows you to create a community around your expertise, and offers scalability as you grow your membership base.

25. Start a Dropshipping Business

Starting a dropshipping business involves selling products online without holding inventory. It is a good side hustle because you can leverage existing suppliers, eliminate the need for inventory management, and focus on marketing and customer service to generate sales and earn a profit.

26. Invest in Precious Metals like Gold or Silver

Investing in precious metals can serve as a hedge against inflation and provide potential long-term appreciation. It is a good side hustle because it offers diversification in your investment portfolio, acts as a store of value, and can provide passive income through capital appreciation or dividends from related stocks or funds.

27. Create and Sell Handmade Crafts or Products

If you have crafting skills, creating and selling handmade crafts or products on platforms like Etsy can generate passive income. It is a good side hustle because it allows you to monetize your creativity, reach a global customer base, and build a brand around your unique products.

28. Invest in Crowdfunding Projects

Investing in crowdfunding projects through platforms like Kickstarter or Indiegogo can provide passive income through equity ownership or project returns. It is a good side hustle if you have an interest in supporting innovative projects, enjoy exploring new opportunities, and can carefully assess the risks and potential rewards of each investment.

29. Buy and Sell Stocks or Options

Buying and selling stocks or options in the stock market can generate passive income through capital gains or dividends. It is a good side hustle if you have knowledge of the stock market, can analyze companies and market trends, and are comfortable with the risks associated with stock trading.

30. Rent Out a Room or Property on Airbnb

Renting out a room or property on Airbnb allows you to earn passive income from short-term rentals. It is a good side hustle if you have available space, live in a desirable location, and can provide a positive guest experience through hospitality and property management.

31. Start a Consulting or Coaching Business

Starting a consulting or coaching business based on your expertise can generate passive income through offering services, online courses, or group coaching programs. It is a good side hustle because it allows you to leverage your knowledge and experience, provide value to clients, and earn income by helping others achieve their goals.

32. Invest in High-Quality Bonds or Bond Funds

Investing in high-quality bonds or bond funds can provide passive income through regular interest payments. It is a good side hustle because it offers stability, diversification, and predictable income, especially if you have a lower risk tolerance and prefer a more conservative investment approach.

33. Create and Sell Online Templates

Creating and selling online templates or design assets, such as website templates, graphics, or presentation templates, can generate passive income. It is a good side hustle if you have design skills, can meet the demand for visual content, and market your products effectively to attract customers.

34. Invest in a Franchise Business

Investing in a franchise business allows you to benefit from an established brand and proven business model. It is a good side hustle if you prefer a more hands-on approach, have the capital to invest, and can follow the guidelines and support provided by the franchisor to generate passive income from the franchise’s success.

35. Develop and Sell Software-as-a-Service (SaaS)

Developing and selling software-as-a-service allows you to create a scalable business model with recurring revenue. It is a good side hustle if you have programming and software development skills, can identify a market need, and can provide a solution through a cloud-based software product.

36. Rent Out Equipment or Gear

Renting out equipment or gear can generate passive income by allowing others to use your assets for a fee. It is a good side hustle if you have equipment that is in demand, can effectively market your rental services, and can ensure proper maintenance and insurance coverage for the rented items.

37. Create and Sell a Subscription Box Service

Creating and selling a subscription box service involves curating and delivering themed packages regularly. It is a good side hustle if you can identify a niche or target market, source unique and high-quality products, and provide a delightful unboxing experience for subscribers.

38. Invest in Agriculture or Farmland

Investing in agriculture or farmland can provide passive income through crop yields, land appreciation, or leasing agreements with farmers. It is a good side hustle if you have an interest in agriculture, understand the risks and opportunities in the industry, and can actively manage your investments or work with a reputable agricultural management company.

39. Become a Silent Partner in a Business

Becoming a silent partner in a business allows you to invest capital in a business without active involvement in its day-to-day operations. It is a good side hustle if you have the capital to invest, can identify promising businesses or entrepreneurs, and are comfortable with the risks associated with the specific industry or venture.

40. Invest in Renewable Energy Projects

Investing in renewable energy projects, such as solar or wind farms, can generate passive income through long-term power purchase agreements or government incentives. It is a good side hustle if you have an interest in sustainable energy, believe in the potential of renewable technologies, and can identify reputable projects or funds to invest in.

41. Rent Out Storage Space or Parking Spots

Renting out storage space or parking spots can provide passive income by utilizing the unused or underutilized property. It is a good side hustle if you have available space in desirable locations, can ensure the security and accessibility of the rented space, and can effectively market your storage or parking services.

42. Create and Sell Merchandise or Branded Products

Creating and selling merchandise or branded products allows you to monetize your brand or creative ideas. It is a good side hustle if you have a unique brand or design concept, can produce or source high-quality products, and can reach your target audience through e-commerce platforms, social media, or physical stores.

43. Invest in Art or Collectibles

Investing in art or collectibles can provide passive income through appreciation in value or potential resale. It is a good side hustle if you have knowledge and passion for art or specific collectible items, can carefully assess the market and authenticity of the pieces, and have a long-term investment mindset.

44. Rent Out a Vehicle or RV

Renting out a vehicle or recreational vehicle (RV) can generate passive income by allowing others to use your vehicle for a fee. It is a good side hustle if you have an extra vehicle or RV, can ensure proper insurance coverage and maintenance, and attract customers through online platforms or rental agencies.

45. Create and Sell Online Masterclasses or Workshops

Creating and selling online masterclasses or workshops allows you to share your expertise and knowledge with a wide audience. It is a good side hustle if you have specialized skills or knowledge in a particular field, can create engaging and informative course content, and can effectively market your courses through online platforms or your website.

46. Invest in a Vending Machine Business

Investing in a vending machine business involves purchasing and placing vending machines in strategic locations to generate passive income from the sales of snacks, beverages, or other products. It is a good side hustle if you can identify high-traffic areas with a demand for vending services, have the capital to invest in machines and inventory, and can provide regular maintenance and restocking.

47. Rent Out Billboard Space

Renting out billboard space involves leasing advertising space on billboards to businesses or advertisers. It is a good side hustle if you own a billboard property or have access to suitable locations, can effectively market and lease the advertising space, and maintain and update the billboards to attract potential advertisers. Rental income is generated from advertising contracts, thus providing a passive income stream.

7 Tips for Starting a Side Hustle for Passive Income

A side hustle can help you to achieve your financial goals quicker and provide some additional financial security in uncertain times. Passive income streams are a great way to supplement your existing income and can be generated through various means. However, starting and maintaining a successful side hustle takes hard work, dedication, and careful planning. Here are a few tips for starting a side hustle business to generate passive income.

1. Consider your passions and skills

As an entrepreneur, it is important to be passionate about what you are doing, as this will keep you motivated even when the going gets tough. It’s also important to be realistic about what you can achieve and to set achievable goals that you can work towards.

2. Consider your availability

It’s important to think about the resources and time you have available to invest in your side hustle. If you already have a full-time job, you may need to make some sacrifices in your free time to make your side hustle a success.

3. Research your market niche

Look for gaps or needs in the market that you could fill with your products or services. To be successful, it’s important to understand your target audience’s needs, wants, and preferences. Conduct market research and engage with potential customers through social media and other channels to get to know their pain points and how your side hustle could solve them. Once you’ve identified a gap in the market, try to create a unique selling point that differentiates you from competitors and adds value for your customers.

4. Identify your goals

Before diving into any side hustle, you need to figure out what your primary objectives are. Do you want to earn an extra $500 a month, or are you in it for the long haul to replace your full-time job? Knowing your end goal will help guide your decisions and keep you on track. 

5. Develop a business plan

Treat your side hustle like a real business by creating a detailed plan that outlines your goals, target market, pricing, marketing strategies, and financial projections. Having a solid plan in place will help you stay organized and focused on your objectives.

6. Build a portfolio

If you’re starting a side hustle in a creative industry like photography or web design, it’s crucial to have a portfolio that showcases your work. This will help establish your credibility, attract new clients, and win over their trust in your abilities. 

7. Leverage social media

Social media is a powerful tool for building your brand and reaching potential customers. Utilize platforms like Instagram, Facebook, and Twitter to promote your business, share your work, and connect with others in your industry.

Launch an LLC for Your Passive Income Side Hustle

If you’re starting a side hustle or small business, one of the first decisions you’ll need to make is how to structure your company. One option is to create a Limited Liability Company (LLC), which provides a number of benefits for entrepreneurs looking to protect their personal assets and minimize their liability.

An LLC is a type of business structure that allows owners to separate their personal assets from those of the company. This means that if your business gets sued or runs into any financial trouble, your personal assets, such as your home or personal savings, are generally protected. Additionally, the LLC structure offers flexibility in terms of taxation, as owners can choose to be taxed as a sole proprietor, a partnership, or even a corporation.

You can register your new LLC in just a few simple steps with doola – the leading platform for small business resources. Use doola to incorporate your company and access a host of tools for business banking, bookkeeping, taxation, and more.

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