20 Side Hustles That Can Turn Into Passive Income

In today’s fast-paced world, many are seeking ways to supplement their income or build financial security through side hustles. But what if you could create a side hustle that not only brings in extra money but can also turn into a source of passive income? Passive income allows you to earn money while you sleep, giving you the flexibility to focus on other things, like your career or personal interests.

The good news is that there are numerous side hustles that, with time and effort, can turn into passive income streams. In this article, we will explore 20 side hustles that have the potential to become sources of passive income in under a year.

1. Blogging

Blogging is one of the most popular ways to earn passive income. While it requires effort in the beginning to create high-quality content, once your blog starts ranking in search engines and attracting traffic, you can monetize it through ads, affiliate marketing, and sponsored posts. Over time, as your blog grows, the income can become more passive, especially with evergreen content that continues to generate traffic.

How to make it passive:

Create evergreen blog posts that attract traffic over time.
Set up affiliate links in your content.
Monetize with Google AdSense or other ad networks.
Write guest posts or offer online courses.

2. YouTube Channel

If you’re comfortable in front of a camera, starting a YouTube channel could be a great way to earn passive income. By creating valuable video content on a topic you’re passionate about, you can build an audience that generates ad revenue, affiliate income, and sponsorships. Once your videos start gaining views, they can continue to generate income without much additional effort.

How to make it passive:

Optimize video titles and descriptions for search engines.
Create content that remains relevant and discoverable over time.
Use affiliate links in video descriptions.

3. Digital Products (E-books, Courses, Templates)

Creating digital products like e-books, online courses, or printable templates can turn into a lucrative passive income stream. Once created, these products can be sold repeatedly without much effort, especially when promoted through automated systems like email marketing or sales funnels.

How to make it passive:

Create a product once and sell it on platforms like Etsy, Gumroad, or Teachable.
Automate the sales and marketing process.
Use email marketing to promote your digital products to a wider audience.

4. Affiliate Marketing

Affiliate marketing involves promoting products or services through unique affiliate links and earning a commission when someone makes a purchase. You can integrate affiliate links into your blog, YouTube videos, podcasts, and social media posts. Once your content starts ranking, affiliate marketing can generate consistent passive income.

How to make it passive:

Create in-depth product reviews or comparison guides.
Use email marketing to send affiliate offers.
Build a blog or website that attracts organic traffic.

5. Print on Demand

Print on demand (POD) is a popular e-commerce model where you design products like t-shirts, mugs, or phone cases, and a third-party service prints and ships them when someone makes a purchase. With POD, you don’t need to keep inventory or handle shipping, and once your designs are uploaded, the income becomes passive.

How to make it passive:

Create a collection of designs that cater to specific niches.
Use platforms like Shopify, Redbubble, or Printful to handle orders and fulfillment.
Promote your designs through social media and SEO to drive organic sales.

6. Real Estate Investment (REITs)

Real estate can be an excellent passive income stream, but it often requires significant capital to get started. However, if you’re not ready to buy physical properties, you can invest in Real Estate Investment Trusts (REITs). REITs are companies that own and manage real estate, and they often pay out dividends to investors.

How to make it passive:

Invest in REITs through online platforms like Fundrise or RealtyMogul.
Reinvest dividends to compound returns.
Hold your investment long-term for consistent income.

7. Dropshipping

Dropshipping allows you to sell physical products without handling inventory or shipping. You create an online store, market products, and when a customer places an order, the product is shipped directly from the supplier. Once your store is set up, the process can run on autopilot.

How to make it passive:

Automate your online store with Shopify or WooCommerce.
Use paid ads to drive traffic to your store.
Work with reliable suppliers to ensure smooth order fulfillment.

8. Dividend Stocks

Investing in dividend stocks can provide a steady stream of passive income. Many established companies pay out regular dividends to shareholders, which can be reinvested or used as income. This is a great way to earn money without actively working.

How to make it passive:

Invest in stocks that pay reliable and high dividends.
Reinvest dividends to grow your portfolio.
Use a robo-advisor for automated investing.

9. Mobile App Development

If you have a knack for coding, creating mobile apps can be a lucrative passive income stream. Whether it’s a game, productivity tool, or educational app, once developed, apps can earn revenue through ads, in-app purchases, or paid downloads.

How to make it passive:

Develop apps that fulfill a common need or interest.
Monetize your app through ads or premium features.
Market your app through app stores and social media.

10. Renting Out Your Car

If you have a car you don’t use regularly, consider renting it out through platforms like Turo. You can earn money whenever someone rents your car, and it requires minimal effort to maintain.

How to make it passive:

List your car on Turo or similar platforms.
Maintain your car to ensure it’s in good condition.
Set up an automated rental schedule.

11. Create an Online Course

If you have expertise in a particular field, you can create an online course and sell it on platforms like Udemy, Skillshare, or Teachable. Once the course is live, you can earn money each time someone enrolls.

How to make it passive:

Create a comprehensive course on a niche topic.
Use automation tools for course promotion.
Continuously update the course to maintain its relevance.

12. Create a Niche Website

Building a niche website around a specific topic can be an excellent way to generate passive income. Once you’ve built traffic through SEO or content marketing, you can monetize your website with affiliate marketing, ads, or sponsored content.

How to make it passive:

Focus on a specific niche with a targeted audience.
Optimize your website for search engines.
Monetize with affiliate links or display ads.

13. Sell Stock Photos

If you’re a talented photographer, selling stock photos on platforms like Shutterstock, Adobe Stock, or iStock can create a passive income stream. Once your photos are uploaded, you can earn royalties each time they’re downloaded.

How to make it passive:

Take high-quality photos that cater to in-demand niches.
Upload your photos to multiple stock photography websites.
Continue to upload new images regularly.

14. Create a Mobile Game

Developing mobile games has become a profitable side hustle for many people. Once your game is available on app stores, it can generate income through ads, in-app purchases, or paid downloads.

How to make it passive:

Focus on creating engaging games that attract users.
Monetize with in-app ads or purchase options.
Promote your game through app store optimization and marketing.

15. License Your Music

If you’re a musician or composer, licensing your music to films, TV shows, or online platforms like YouTube can provide passive income. You can also use platforms like Epidemic Sound or AudioJungle to sell your music and earn royalties.

How to make it passive:

Upload your music to royalty-free platforms.
License your music for commercial use.
Collect royalties whenever your music is used.

16. Automated Affiliate Websites

Creating an affiliate website that uses automation tools to generate traffic and income can be an effective passive income strategy. Once set up, you can drive traffic through SEO, social media, or paid ads while earning commissions from affiliate links.

How to make it passive:

Build a content-rich website optimized for SEO.
Use affiliate links and ads for monetization.
Automate content publishing with scheduling tools.

17. Vending Machines

Investing in vending machines can be a low-maintenance way to earn passive income. By placing machines in strategic locations, you can earn money each time someone buys a snack or drink.

How to make it passive:

Invest in vending machines and place them in high-traffic areas.
Keep the machines stocked and maintained.
Collect earnings regularly.

18. Sell Online Courses on Skillshare or Udemy

If you are skilled in a particular area and want to teach others, consider creating a course and uploading it to platforms like Skillshare or Udemy. Once your course is live, you can earn passive income each time someone enrolls.

How to make it passive:

Create comprehensive, high-quality courses.
Market your courses to attract students.
Continuously update courses to keep them relevant.

19. Invest in Peer-to-Peer Lending

Peer-to-peer (P2P) lending platforms like LendingClub or Prosper allow you to lend money to individuals or businesses in exchange for interest payments. This can become a source of passive income once your loans start generating returns.

How to make it passive:

Invest in P2P lending platforms.
Diversify your investments across multiple loans.
Let the interest payments accumulate over time.

20. Automated Dropshipping with Subscription Boxes

Building a dropshipping business centered around subscription boxes can provide recurring passive income. Once the subscription service is set up and promoted, customers will automatically receive regular shipments of products, generating steady income for you.

How to make it passive:

Use subscription box platforms like Cratejoy.
Automate the order fulfillment process.
Create a marketing system that runs on autopilot.

Conclusion

Building passive income requires dedication and hard work in the beginning, but with time, many side hustles can turn into sources of consistent, automated income. By leveraging strategies like blogging, affiliate marketing, real estate investments, and digital products, you can begin earning money without continuously trading time for dollars. Whether you’re looking to build a sustainable financial future or just earn extra cash on the side, these 20 side hustles can help you achieve your goals in under a year.