According to 2023 Census Bureau data, 20{c87e2df4b343d0515d304e127afe4653a549475791ab451641a18e09bd64e760} of US household members earn passive income. In a 2022 survey conducted in Australia, more than 50{c87e2df4b343d0515d304e127afe4653a549475791ab451641a18e09bd64e760} of millennials and respondents from Generation Z were earning some sort of passive income.
Most recently, results of a 2024 survey show that 46{c87e2df4b343d0515d304e127afe4653a549475791ab451641a18e09bd64e760} of US respondents started a side hustle to generate passive income.
Here are some services you can offer to earn passive income online. Some of them might not have occurred to you at all!
Create a course
Creating an audio or video course in a subject you’re an expert on is a popular strategy for passive income. You can distribute and sell courses through Coursera or Udemy.
Alternatively, you might consider the so-called “freemium” – acquiring followers through free content and then charging for more detailed, higher-value content. Keep in mind that in 2024, the typical freemium conversion rate is 4{c87e2df4b343d0515d304e127afe4653a549475791ab451641a18e09bd64e760} on average. 8{c87e2df4b343d0515d304e127afe4653a549475791ab451641a18e09bd64e760} is an outstanding conversion rate.
A course can generate a good income stream, and it can turn into a source of passive income relatively easily. However, you must market your products aggressively and plan for more if you want to be successful. Unless you’re lucky, one product is not a business.
Resell web hosting
Reseller hosting is another great source of passive income. It’s a rewarding, low-risk opportunity that doesn’t require any technical knowledge or prior experience. All you need is to choose a reliable web hosting provider and to be able to market and sell the service.
As a reseller, you’re offering customers a quality product at a fraction of the price a major provider would charge. It’s a great source of passive income because once you acquire a number of customers, you don’t need to do anything more.
Different providers of parent hosting offer different packages, so ask about the prices and features of each one. Popular marketing strategies to promote reseller services include SEO, PPC, and social media.
Affiliate marketing
Bloggers or website owners use affiliate marketing to promote a third-party product. They add a link to the product on their social media or website. The best-known affiliate partner is Amazon, but you can also choose eBay or Awin. TikTok and Instagram have become huge affiliate marketing platforms.
Another option is to curate an email list to attract attention to your website or otherwise direct potential customers to services and products they might want.
You earn a commission when a visitor clicks on a link and buys something from a third-party affiliate. The amount of the commission is normally 3-7{c87e2df4b343d0515d304e127afe4653a549475791ab451641a18e09bd64e760}, so generating a high income will take significant traffic to your site. The potential for passive income is high if you have a lucrative niche like financial services or if you can grow your following.
Launch a YouTube channel
You can create and upload videos on YouTube. Content can range from product reviews to entertainment and educational tutorials. Successful service providers can monetize their channels through sponsorship and ad revenue.
You get started by setting up a channel via a Google account. Customize it with a unique channel description, banner, and profile picture.
Ideally, your content should be a mix of evergreen and trending niche topics. Invest in a good microphone, camera, and lighting to enhance your video quality.
Use free video editing software like DaVinci or Shotcut to create well-edited videos. If you have the money, consider Adobe Premiere Pro.
Upload videos consistently to build a loyal audience. Uploading regularly helps improve your channel’s engagement and visibility.
You can apply for the YouTube Partner Program to monetize your videos as long as you meet YouTube’s advertising eligibility criteria. Additional sources of passive income include merchandise, sponsorships, and affiliate marketing.