“If you don't find a way to make money while you sleep, you will work until you die.”
- Warren Buffet
As much as that statement may sting, it’s true.
The key to being financially free is to detach your hours from your income – or in other words, you need to create a passive income for yourself.
That said, passive incomes aren’t 100% passive. You don’t generate money automatically just by sitting and doing nothing! It either takes your mental or physical expertise (and sometimes both).
But the world is evolving fast. New tools, new opportunities, new trends. What should you even do?
In today’s article, we will explore 10 practical passive income ideas that can help you generate a steady stream of income and achieve financial freedom in 2024. ✅
Let’s get going. 🚀
1. Short-Form Content Creation
Starting a short-form content service is a great way to generate passive income, especially for Gen Z entrepreneurs. Short-form content is in high demand, and businesses and influencers are always looking for high-quality content creators.
To kick off your service, first identify your medium. What kind of short-form content are you best at creating? TikTok videos? Instagram Reels? Short blog posts? Once you know that, select your niche which you consume the most content for. This could be lifestyle, personal development, sports, anything. Pick that niche and you can start to target businesses and influencers that would be interested in your services.
You can generate passive income by becoming an affiliate content creator for these influencers or businesses for their products, services, and receive regular commissions or royalties based on the sales you get them. If you create evergreen content (content that never gets outdated), that benefits you even more! 💪
2. Invest in Dividend Stocks
One of the most popular ways to earn passive income is by investing in dividend stocks.
Dividend stocks are shares of companies that distribute a portion of their profits to shareholders in the form of dividends. By investing in dividend stocks, you can earn a regular income without having to actively work for it.
When choosing dividend stocks, look for companies with a history of consistent dividend payments and a high dividend yield. Diversify your portfolio to minimize risk and consider using a reliable online brokerage platform like M1 Finance or Robinhood to manage your investments.
3. Student Templates and Cheatsheets with AI
Another great way for Gen Z entrepreneurs to generate passive income is to create and sell student templates and cheatsheets using AI tools and platforms like ChatGPT and Notion AI.
To get started, first identify what subject or topic is your specialty. When you do that, try to ask yourself what students struggle with in that topic the most and what kind of templates and cheatsheets would be most helpful to them.
Once you have identified your target audience and topics, you can start using AI tools to create high-quality templates and cheatsheets. ChatGPT can be used to generate text content, while Notion AI can be used to create interactive templates and checklists.
Put them all together and you have created your templates and cheatsheets. Now you can sell them online through your own website through ads, or on marketplaces like Etsy. You can also promote your templates and cheatsheets through social media and other online channels!
4. Create and Sell an Online Course
If you have expertise in a particular subject, consider creating and selling an online course. Platforms like Udemy and Teachable make it easy to create and market your own courses to a global audience.
To create a successful online course, choose a topic that you are knowledgeable and passionate about. Break down the course into modules or lessons and use multimedia elements like videos, quizzes, and downloadable resources to enhance the learning experience.
If you’re looking to play the long game, make sure to promote your course through social media content, email marketing, and partnerships with influencers in your niche. This would ensure you get maximum traction and sales for your products.
5. Write and Self-Publish an eBook
Writing and self-publishing an eBook can be a great way to earn passive income. Platforms like Amazon Kindle Direct Publishing (KDP) allow you to publish and sell your eBook to a global audience.
To write a successful eBook, choose a topic that is in demand and aligns with your expertise. Conduct thorough research, organize your content, and write in a clear and engaging manner. Once your eBook is published, market it through your website, social media, and email marketing to attract readers and generate sales.
6. Create and Monetize a YouTube Channel
If you enjoy creating videos and have a passion for a particular niche, consider starting a YouTube channel. YouTube allows you to monetize your videos through advertising, sponsorships, and merchandise sales.
To create a successful YouTube channel, choose a niche that you are knowledgeable and passionate about. Plan your content, create high-quality videos, and optimize them for search engine visibility. Engage with your audience through comments and social media, and continuously improve your content to attract more views and subscribers.
Note: To get decent results from YouTube, you need to be extremely patient. It would take you months (or even years) to get noticeable results. The good news? If you do hit big, it creates a domino effect, and all your previous videos get bigger numbers too. ⭐
7. Start a Dropshipping Business
Dropshipping is a business model that allows you to sell products online without having to handle inventory or shipping.
With dropshipping, you simply create an online store, market products from suppliers, and when a customer makes a purchase, the supplier handles the fulfillment process.
To start a successful dropshipping business, choose a profitable niche and find reliable suppliers. Create an attractive and user-friendly online store using platforms like Shopify or WooCommerce, and market your products through social media advertising, search engine optimization, and influencer partnerships.
The biggest catch here is to find a sellable product. For this, make sure to visit the Meta Ads library and research some products that are getting the most visibility. Chances are that those products are getting some nice sales – try listing all these products down in a spreadsheet and test them one by one!
8. Create and Sell Stock Photos
If you are passionate about photography, consider creating and selling stock photos.
Stock photography websites like Shutterstock and Adobe Stock allow you to upload and sell your photos to businesses, marketers, and designers.
To create and sell stock photos, you don’t need to invest in a high-quality camera, but you need to learn the principles of photography and composition.
Make sure to research popular trends and concepts in stock photography and capture images that align with those trends. Then, upload your photos to multiple stock photography websites such as Getty Images, Shutterstock, or any similar websites.
The more pictures you take and upload, the better!
9. Develop and Sell Mobile Apps
Consider developing and selling mobile apps if you have programming skills or a great app idea. With the growing demand for mobile apps, there is a lot of potential to earn passive income through app sales and in-app purchases.
To develop a successful mobile app, conduct market research to identify a problem or need that your app can solve. Plan the functionality and design of your app, and hire a developer if you don't have coding skills. Market your app through app stores, social media, and online communities to attract users and generate revenue.
You can take advantage of no-code AI tools to test different ideas out. No need to outsource/hire a full-time engineer, or learn coding from scratch to validate your product. Find some no-code tools online that can help get your idea into a functioning reality (i.e. getting to the MVP stage). Once you do that, you can find business forums or investors who can purchase your software/application and you can earn royalties off of it.
10. Create and Monetize a Blog
Starting a blog can be a great way to earn passive income through advertising, sponsored content, and affiliate marketing. Choose a niche that you are knowledgeable and passionate about, and create valuable and engaging content for your readers.
To monetize your blog, sign up for advertising networks like Google AdSense to display ads on your site. Collaborate with brands for sponsored content or join affiliate marketing programs to earn commissions from products or services recommended on your blog.
Then, promote your blog through social media, SEO, and email marketing to attract a loyal audience and create a long-term sustainable income. 🔝
Conclusion
Overall, there are numerous passive income ideas that can help you achieve financial independence in 2024.
Whether you choose to invest in dividend stocks, rental properties, or start an online business, the key is to put in the initial effort and nurture your income streams for long-term success.
Remember, no passive income is FULLY passive. It requires dedication and persistence, but the rewards can be exponentially great if you play your cards right. 😉
Good luck! 💸
