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Extra income is good. Extra income without having to lift a finger is even better.
Passive income is money that goes into your bank account without you having to do much — or any — active work. Residual streams of income can be a great way to accumulate wealth, particularly if your earning potential is stunted at your day job. But the most popular passive income streams, such as dividends, investment interest, and rental income, usually require a lot of money upfront to get started.
Fortunately, it’s also possible to engineer a passive income stream from scratch. If you know you want extra money in a hands-off way, you can reverse-engineer a side hustle or small business idea accordingly to ensure it pays you while you sleep.
Here are 5 passive income ideas to consider in 2023.
5 Passive Income Ideas to Make You Money in 2023
- Publish a book on Kindle.
- Become a creator.
- Leverage affiliate links.
- Build a membership site.
- Create an online course.
No. 1: Publish a Book on Kindle
Writing and publishing an ebook can make you passive income online, and platforms like Amazon’s Kindle Direct Publishing (KDP) and Medium’s Partner Program make it easy for authors and writers to make residual income or royalties from their content.
“It took me 3 days and less than $500 to get everything set up to launch my first e-book on KDP,” says Mark LaCoursiere, who packaged and published his project management expertise into an e-book. LaCoursiere put his e-book up for sale on Amazon in November 2022, and makes an average of $1.50 a day in royalties currently.
No. 2: Become a Creator
If you know how to get attention, or love to produce informational or entertaining content, the creator economy is booming these days. Creating your content won’t be passive, but the money you make on the backend will be residual and require minimal maintenance to sustain.
Monetization tools like the YouTube Partner Program, Google AdSense, and Podbean’s PodAds will give you a cut of the ad revenue they generate once your channel or podcast has achieved traction and built an audience. Nick Loper, the founder of Side Hustle Nation, a podcast that talks about people making money with side hustles, says his YouTube channel has been doing pretty well, earning a steady $500 to $800 a month passively for years.