7 Passive Income Ideas to Make Money While You Sleep

If someone were to tell you that you could make money while you sleep what would you think?

Maybe you already know this is possible. Maybe you already know someone else that does this.

With the advent of the Internet, passive income is now a reality for everybody. Before, passive income was relegated to the people that could afford to invest money in the stock market or real estate.


Now the Internet offers you so many different ways to make a passive income that it makes sense for everybody to get involved.

What Is Passive Income?

passive income ideas

This is an important question to answer because people have misconceptions about what passive income is all about.

Some people believe the passive really means passive as in you don’t do anything at all.

This isn’t correct.

The idea behind passive income is that you actively do work upfront so that later you can make money when you aren’t doing anything at all.

Therefore it is possible to make money in your sleep ONLY if you’ve put in the work to make that happen.

Sorry to tell you there aren’t any magic formulas here where you get to make money without doing anything.

With that in mind don’t let that discourage you. Working towards passive income is great because once you have the systems in place, you can focus on enjoying life while still making money.

Picture yourself out on vacation and you aren’t worrying about money because you are still making money every single day. This is especially great if you work for yourself because many times when you work for yourself and you aren’t doing any work, then you aren’t making any money.

Having a passive income stream ensures that the money machine is churning out bills 24/7.

Having Multiple Streams of Revenue

Another awesome thing about passive income is that once you have a solid system in place you begin to look at other streams of passive income. If you end up creating a system where you are only spending a couple hours a week or month maintaining then that gives you time to look at other ways to make passive income.

As a blogger, this means that if you’ve written an ebook and have a nice sales funnel set up, then you can turn your focus towards creating an online course.

Have an ebook and online course? Time to look at starting a membership site.

Once you have a single stream of passive income it becomes possible to continue to build on top of that. That way if one stream dies out (it happens) then you have others to keep you supported.

7 Passive Income Ideas to Make Money While You Sleep

Just a reminder, none of these methods are hands-off. You will have to put some work in to make them successful.

1. Selling eBooks

You might think that you aren’t a writer so you can’t write an ebook but anybody can write one just as easy as anyone can sell one.

Amazon’s Kindle Direct Publishing platform makes it extremely easy for anyone to get a book up in front of millions of people.

One of the hardest parts about selling an ebook is finding an audience. With Amazon, you are working with a marketplace that already has a built-in audience.

The only downside to using Amazon is that the market expects books to be within a certain price range. If you want to sell a $29 ebook, then doing it on Amazon is going to be harder than doing it on your own site.

Both options are extremely viable, you just have to consider which direction you want to go.

The initial work, of course, comes from writing the book. If you really don’t feel like writing a book but you still want to sell ebooks then you can contract a ghostwriter to handle all of the writing for you.

Freelance marketplaces like Upwork provide you with a ton of options in finding the right person to write your next masterpiece.

2. Affiliate Marketing

One of the easiest methods of making money online to implement.

Affiliate marketing is when you promote another company’s products and get a commission when the user makes a purchase.

For example, the largest affiliate program in the world is Amazon’s Associates Program. You can link to any product on Amazon and if you’re readers click the link and then make a purchase, you get a percentage.

As you can imagine this method of passive income appeals to a lot of people because you don’t have to worry about product creation or customer service. You just have to push people towards a product and hope the seller does a good job of converting them.

3. Online Courses

Online courses are big money makers but as you can imagine there is a lot of upfront work in creating the course.

However, once you’ve done a great job you can just focus on letting people know about the course.

When it comes to options for hosting your course you have more than a couple.

If you want to go the Amazon route where you have an audience already set for you then take a look at Udemy.

However, if you want most of the money to go back into your wallet then check out Teachable. With Teachable you will have to work on building up your own audience so keep that in mind.

4. Online Advertising

It’s still possible to make pretty good money through online ads.

The only downside to this method is that if you want to make more than a $1,000 a month then you probably need to get your site to over 100,000 pageviews a month.

That is no easy feat but it’s certainly possible if you use the right methods.

The way most online advertising works is that you get paid based on how many times an ad has been shown.

Usually, this is done using a metric called CPM which translates into cost per thousand views.

So if your ads are paying you a rate of $5 CPM then that means for every 1,000 pageviews (assuming you have ads on each page) you are going to make $5.

If you run a blog that is doing over 100,000 pageviews a month then take a look at an ad network like AdThrive to get the most out of your traffic.

5. Create YouTube Videos

Similar to online advertising with written content, you can make money with YouTube videos that have ads on them.

You’d be amazed at the money some channels are making every year with YouTube.

Did you know there are families making millions from recording their kids opening toys? Seriously.

In fact, there are adults opening toys and making millions.

It’s pretty crazy to see the niches that are built around YouTube videos.

6. License Your Photos

There are a number of stock photography websites that would love to take a look at your photos and offer them to their customers.

iStockPhoto is one website and since everyone has a camera in their pocket now, there is always an opportunity to make some passive income on the side.

7. Start a Drop Shipping Business

What is drop shipping?

Imagine you have an online store that sells a product. However, you don’t keep the product in a warehouse and you don’t even make the product yourself.

Instead, what you do is contact a manufacturer to make the product and ship it to the customer for you.

All you do is manage the website that pulls in the customers.

Sounds pretty awesome, right?

More and more people are getting into drop shipping because of the different types of products that one can offer.