Updated: Aug 31
If you live in the UK and are looking for a part-time side hustle earning £200-£500 a month get in touch here!
Are you looking towards increasing your earnings and wealth overtime? Generating passive income through multiple streams is one of the ways to build wealth. Passive income can be described as a constant means of earning money without you being actively involved. It is not always easy to start a side hustle that will generate income daily, weekly, or monthly, but with time, and a small capital you will begin to get consistent revenue with less effort.
The concept behind passive income is having diversified side hustles that can build residual income streams to achieve your financial goals. Also, passive income can be a great source of cash flow, especially during an economic recession, job loss, or critical times, such as the imposed lockdown due to the COVID-19 pandemic.
Millionaires are not wealthy through just one source of income. It is because they have at least an average of seven streams of income that generate money simultaneously. There is a huge earning potential when it comes to having side hustles for passive income.
In this post, I will share 13 passive income ideas you can start with for residual income right now. So, read on.
Podcasting has become a passive income niche of producing digital recordings of broadcasts available for downloading. Similar, to having a radio talk show. If you can find a niche and create podcasts people like to listen to, the traffic generated by the thousands of people who listen to your podcasts will draw the attention of big advertising companies and sponsors resulting in a passive income.
You could also use your podcast to sell physical products or services you offer by redirecting your listeners to purchase from your website.
One good advantage is that starting a podcast is easy. All that you need to start podcasting is a laptop, microphone, and free recording and editing software.
To get started consistently recording a short podcast once a week is best. Publish your podcast to iTunes and other platforms. Then, think of advertising your services through promotion for monetisation.
The challenge of having a successful podcast comes with finding the right audience and really niching down your market. It will help if you have a good marketing strategy to deliver your podcast to the right audience.
Investing in the Stock Market
Passive income comes in the form of dividends when you invest in the stock market shares. These are a percentage of a company’s profits paid out to investors over time. The higher the shares you purchase, the higher the dividends that you will be paid.
Presently, the stock market shares are low due to the crash in the market because of the pandemic. This means that buying cost is very cheap, and a great opportunity for those who can afford it aware of the risks.
Investing in the stock market is unpredictable and needs to be a long-term game plan. The market is averaged to give 8% in return over a period of 10-15 years on your investment. Another challenge is that the payment of dividends by a company is not fixed, and they can change the pay-out amount at any time if their profit returns are very low.
Despite the risks involved, you can still make good passive income from the stock market. An excellent place to start with investing in the stock market is opening a Stocks and Shares ISA to benefit from tax relief.
Editing and Proof Reading
With so many services moving online and businesses focusing on online content, editing and proofreading can be a profitable side hustle to consider. Especially, If you have excellent writing and creative skills and don't mind freelancing. Editors and proofreaders work on books, ebooks, magazines, blog posts, email marketing and the list goes on. I have used a few of these services myself and have not been disappointed.
If you'd like to get started with this you could join Fiver or reach out to small business owners and charge a low price to build your reputation and outstanding reviews. This type of side hustle will give you a quick win as all you need is signup to a platform and produce excellent work on time and build your clientele.
The online tutoring industry is growing! With only needing a computer, good broadband, your expertise and a student who wants to learn what you are teaching, no wonder why this industry is on the rise.
Platforms such as Spires, Tutorful and Mytutor, who connect you with students, manage payments becoming an online tutor is something you could get started with straight away. You could even set up an online subscription and market it yourself to mums and dads who want extra tuition for their kids
Virtual Assistant Service
You can be at the comfort of your home or office, working as a virtual assistant, helping individuals and businesses to do various tasks, such as managing contact lists and spreadsheets, replying emails, scheduling meetings, making travel arrangements, and so on.
Working as a virtual assistant does not really require complex or specialized skills and can be done by anyone with basic computer skills, organisational management, and excellent communication.
You can also learn using YouTube how to use specific tools you may not be familiar with. If this sounds like something you will love to do, you can set up your own established virtual assistant company.
Still in 2020 people are making money from blogging. You would think that there are too many blogs already, but in actual fact, the world is hungry for more and relevant content. Blogging is all about content creation.
If you are able to narrow down your niche, write content that people want to read, share and take action on you can make money being a blogger. Bloggers make money from ads, affiliate programme, selling products and service, speaking events and sponsorship. Building a blog is hard work and you must be in it for the long run.
But once you commit, are consistent with creating quality content and establish your authority in your niche you are on your way to receiving passive income all from your blog. All you need to do get started is create a website, learn about SEO, link your social media platforms to your blog, build an email list and create sound content.
Real Estate/Property Wholesaling
Firstly, the good thing here is this does not put your money at risk. Your job is mainly connecting motivated sellers with real estate investors.
Secondly, what you earn as profit is the difference between your negotiated price and the final sales price.
Thirdly, to be successful as a real estate agent, you must ensure to negotiate the price of any property you are interested in at a low-price range comfortable to you.
One main disadvantage of real estate wholesaling is not getting a buyer within the contract time. It takes a lot of attempts to convince your potential buyers to seal a contract, but once you do, you can go on to build a good reputation and client list.
Dropshipping is where you create a website, and you sell products that you have not paid for until someone buys them. You can get the products from eBay and Amazon. Create ads to sell the products, making sure the supplier will ship them, and they are of good quality. You usually get the products for cheap and sell high.
For example, you paid £5, including shipping cost, and then sold for £20-25. This has a very good profit margin once you are selling hundreds or thousands of the item. It is a very lucrative business and can be passive income to earning a 6-7 figure range.
Amazon has created the largest commercial retail platform in the world. It is big enough to accommodate everyone interested in selling. There is a thriving market for eBooks on Amazon; you can get involved with this market. If you are good at writing, you can put up outstanding books that will continue selling for many years to come. This is a guaranteed source of steady income for you.
Affiliate marketing is an income idea that requires you to have a website or platform you can use to promote other companies, or "affiliates." When someone uses your affiliate link to purchase a product or sign up for a service, you get paid.
You can send emails containing your affiliate links to potential clients or start a blog to publish your ads, as well as use free tools on social media platforms to build your affiliate business.
Affiliate marketing has a high-income potential, and it involves almost zero/minimal investment. You only have to promote products that are in demand, you like are of good quality.
However, to beat the competition in the affiliate marketing world, choosing the right product is challenging. It would be helpful to carry out in-depth market research before starting affiliate marketing.
Create an Online Course
Creating an online course is a form of passive income, which could serve you extremely well for many months and years to come. Various online education platforms create connections between students and teachers from all around the globe in different subjects.
You can create your course around a topic you are an expert in, set your tuition rate, and people will come flocking to find out your secrets. If you create an online course or membership, you do the hard work once, and then reap the benefits continually.
Cab companies such as Lyft and Uber allows you to sign up to drive people around. You can do this by yourself after the end of your 9-5 job at evenings, nights and weekends to earn some more cash.
In addition, you can lease your auto for a substantial amount every day, depending on the type of car you possess. The rental fee for high-grade cars is more than that of low-grade cars. The person you leased your vehicle will pay you this sum each day. You can also rent out your car for a year and get a bulk cash amount.
Selling on eBay or Craigslist
Selling new, used, or refurbished products on large marketplaces such as eBay or Craigslist is becoming lucrative. These items can include daily household needs, clothing, digital devices and accessories, household gadgets, and so on.
You can have your used products on the product listings and also do it for others, while you receive a commission on every sale. A very important tip is writing catchy product descriptions and uploading multiple high-quality images for your items to boost your sales.
An advantage of selling on eBay or Craigslist is that you can reach a vast audience, and make sales within a short time. However, some product niches have high competition. So, you must apply marketing strategies to have better deals than your competitors, such as reducing your price, which is considered as a disadvantage.
Hopefully, this post has given you some good insights into profitable side hustles you can do to create passive income. Interestingly, you don't have to quit your current full-time employment before you can do these side hustles. It's important that you also manage your expectations. Although these ideas can make you money quickly, some of these markets are saturated and will require you standing out, narrowing down your niche and putting in the work.
Remember it doesn’t have to be something you are passionate about. It could be that you have a set of skills in a particular area and you could make a decent passive income from it giving you consistent income that guarantees you financial freedom.