Passive Income Side Hustles: 9 Ways to Earn Money While You Sleep

Let me tell you about the biggest lie on the internet: "passive income."

You know those ads where some 22-year-old is sipping a margarita on a beach, claiming he makes $50K a month while doing absolutely nothing? Yeah, that's complete horseshit. I fell for that crap when I was first trying to make money online, and it cost me months of wasted time chasing shiny objects.

But here's the thing—while most "passive income" advice is garbage, there actually are ways to make money that don't require you to show up and clock in every single day. It's just not as passive as people pretend, and it definitely doesn't happen overnight.

I discovered this through difficult experiences. Spent my first year online jumping from one "passive income" idea to another, making maybe $50 total. Then I got serious about it. I picked one thing, stuck with it for an entire year even when it felt like nothing was happening, and slowly built it up.

Now? I make about $1,100 a month from stuff I'm not actively working on. It took me two and a half years to get here, and some months I wanted to quit because progress felt so damn slow. But last month I made $340 from a course I created eight months ago, $280 from affiliate stuff I set up over a year ago, and $480 from other things that just... run themselves.

While it may not be a quick way to get rich, it significantly outperforms the long-term practice of trading hours for dollars.

Want to combine passive and active income? Our complete side hustle guide shows you how to build both.

Why Most Passive Income Advice Sucks

Before I get into what actually works, let me save you from the mistakes I made by believing the internet's version of passive income.

The beach laptop myth: Nobody successful is running their business from a hammock. The people making real passive income put in serious work upfront, often for months without seeing a dime.

The "set it and forget it" lie: Even my most passive income streams need attention sometimes. We handle updates, maintenance, and customer questions. It's way less work than a regular job, but it's not zero work.

The overnight success fantasy: I see people quit after six weeks because they haven't made $10,000 yet. Real passive income builds slowly, like compound interest.

The no-money-needed scam: While you don't need thousands to start, most passive income requires either time investment or small amounts of money for tools and platforms.

What passive income actually is: money you earn from work you did weeks, months, or years ago. It's not magic—it's delayed gratification.

9 Passive Income Ideas That Actually Work (From Someone Who's Done Them)

Alright, let me break down the stuff that's actually working for me and people I know. This is not theory—these are real results from real people.

The "Create Once, Sell Forever" Category

1. Online Courses (My Main Thing)

If you know something others want to learn, this is where I make most of my passive income.

I created a course teaching freelance writers how to find better clients. The project required approximately 60 hours over a period of three months. Now it brings in $300-600 every month with maybe two hours of work per month answering student questions.

What actually sells:

• Practical skills people need for work
• Solutions to common problems
• Hobbies people are passionate about
• Anything that saves people time or makes them money

Platforms I've used:

• Teachable (easiest to start)
• Udemy attracts the traffic, allowing you to benefit from lower prices.
• Thinkific (more control, but more work)

Reality check: Most courses make $0-200/month, not thousands. But even $200/month passive is pretty sweet.

Getting started: Select a skill you are already proficient in, create a straightforward 2-3 hour course, set the price between $50 and $150, and observe the results.

2. Digital Templates and Printables

My friend Amanda makes about $400 a month selling budget trackers and meal planning templates on Etsy. She created maybe 30 different templates over six months; now they just sell while she's dealing with her toddler.

What people actually buy:

• Planners and organizers
• Business templates (invoices, presentations)
• Resume templates
• Budget trackers
• Kids' activity sheets

Where to sell: Etsy is easiest. Your website works, too, if you want to keep all the profits.

Time investment: Maybe 3–6 hours per template using Canva.

Why it works: People are lazy (myself included) and would rather pay $5 for a template than spend two hours making one themselves.

3. Stock Photos (If You Like Taking Pictures)

My neighbor earns approximately $150 per month by uploading photos to Shutterstock and Adobe Stock. She takes lifestyle photos of her family and random stuff around town.

What sells: Business settings, lifestyle moments, food, technology, and people working.

Platforms: Shutterstock, Adobe Stock, Getty Images.

The catch: You need Many photos to make decent money. But once they're uploaded, they can earn for years.

Content That Keeps Earning

4. YouTube Channel (Long Game, But Worth It)

My friend Jake makes videos about personal finance. His older videos still bring in $200–$400 per month in ad revenue, plus whatever he makes from affiliate links in the descriptions.

Topics that work: How-to stuff, reviews, educational content, and entertainment.

Revenue sources: YouTube ads, affiliate marketing, sponsorships, and promoting your products.

Timeline: Plan for 6-12 months of making videos before seeing real money. Most people quit too early.

Why it's worth it: Once you have a library of videos, they work for you forever. Jake's video about budgeting for college students from two years ago still makes him $50—$80 every month.

5. Blog with Affiliate Marketing

I started a blog about freelance writing tools and productivity apps. The affiliate commissions from articles I wrote 6-18 months ago earn me about $280 a month.

What works: Product reviews, "best of" lists, and how-to guides that recommend specific tools.

High-paying affiliates: Software (especially subscription services), online courses, and business tools.

Time to see results: 6-12 months for search traffic to build up.

Real example: My article about the best invoicing software for freelancers makes me $40-80 every month from people clicking my affiliate links.

Investment Stuff (If You Have Money to Start)

6. Dividend Stocks and ETFs

This is the most straightforward option, but it requires an initial investment to generate significant income.

How it works: Buy stocks that pay dividends, collect quarterly payments, and reinvest to compound.

What I invest in: Mostly boring dividend ETFs like VYM and SCHD. Additionally, some individual stocks, such as Coca-Cola and Johnson & Johnson, are included.

Reality: $10,000 invested at a 4% dividend yield gets you about $400 per year. You need serious money to generate serious income.

My approach: I invest $500-800 monthly from my active income into dividend-paying investments. It's not a significant sum of money at the moment, but it will accumulate over time.

7. REITs (Real Estate Without the Headaches)

Real Estate Investment Trusts let you invest in real estate without buying actual property. They usually pay higher dividends than regular stocks.

What I own: Mostly REIT ETFs like VNQ, plus some individual REITs like Realty Income.

Dividends: Usually 4–7% annually, paid quarterly.

Why I like them: Higher yields than most stocks, and I don't have to deal with tenants or toilets.

Business Model Passive Income

8. Print-on-Demand Products

My friend creates designs for dog lovers and uploads them to Redbubble. She earns approximately $200-350 per month from the designs she has created over the past year.

How it works: Create designs, upload to platforms, and earn profit when people buy products with your designs.

The platforms available for use are Redbubble (the easiest), Printful in conjunction with Etsy, and Teespring.

What sells: Funny sayings, niche hobbies, seasonal stuff, and motivational quotes.

Time investment: 2-4 hours per design using Canva.

The grind: You need many designs to make decent money. But once they're uploaded, they can sell for years.

9. Automated Affiliate Marketing

I am currently focused on building the next project. I am setting up email sequences and social media posts that promote affiliate products automatically.

How it works:

• Build an email list with free content.
• Create email sequences that provide value and recommend products.
• Schedule social media posts with affiliate links.
• Set up Pinterest pins that link to affiliate products.

Why it can be passive: Once the sequences are written and posts are scheduled, they run automatically.

Current results: I'm making about $180/month from affiliate emails I set up four months ago.

Getting started: Please select products you genuinely use, develop informative content about them, and establish automated systems to promote them.

What Building Passive Income Actually Looks Like

Let me be real about the timeline and effort, because most people have completely unrealistic expectations.

Months 1-3: You're working a lot and making almost nothing. This is the phase where most people quit. I made maybe $30 total in my first three months.

Months 4-8: Things start happening slowly. You might make $50-200 some months. It's encouraging but still feels like you're moving through molasses.

Months 9-18: This is when it clicks. Your earlier work starts paying off. I hit my first $500 month around month 11.

Year 2+: Multiple income streams start compounding. New projects build on the audience you've already created.

My actual progression:

• Months 1-6: Made about $150 total
• Months 7-12: Averaged $120/month
• Months 13-18: Averaged $380/month
• Months 19-24: Averaged $650/month
• Now (month 30): Averaging $1,100/month

Time investment: I'd estimate I've put in about 400 hours total building passive income over 2.5 years. That works out to earning about $2.75 per hour I've invested, forever.

How to Pick Your First Passive Income Stream

Don't try to do everything at once. Please choose one focus and commit to it for a minimum of six months.

If you have knowledge to share: Online courses If you're creative: Digital templates or print-on-demand If you like writing: Blog with affiliate marketing If you enjoy videos, YouTube channel If you have money to invest: Dividend stocks or REITs If you want quick setup:Affiliate marketing

My recommendation: Start with whatever matches your existing skills. Don't try to learn video editing, course creation, and blogging all at once.

Mistakes That Waste Years (I Made All of These)

I am jumping from idea to idea. I spent six months starting blogs, courses, and print-on-demand shops without finishing any of them. Please select one task and follow it through to completion.

We are expecting swift results. Passive income is like planting trees. You don't see fruit for months or years, but then you eat for decades.

I am not promoting your stuff. Creating something doesn't automatically generate sales. I learned this when my first course sold exactly zero copies because I was too embarrassed to tell anyone about it.

Perfectionism paralysis. My first course was terrible, but it taught me what people actually wanted. Done is beyond perfect.

Giving up right before a breakthrough is a common mistake. Most people quit around months 4–6, right before their work starts paying off.

Not reinvesting. When you start making passive income, reinvest some of it in tools, advertising, or new projects.

The Tools I Actually Use

Course creation: Teachable, Loom for screen recording, Canva for graphics, and my phone for videos.

Digital products: Canva for design, Etsy for selling, and Pinterest for promotion.

Blogging: WordPress, ConvertKit for email, Google Analytics, and Pretty Links for affiliate tracking.

Investing: Fidelity for stocks and ETFs, Personal Capital for tracking.

Print-on-demand: Canva for designs, Redbubble for selling.

Total monthly cost: About $150 for all tools combined. Started with free versions of everything.

Building Multiple Streams (Eventually)

Once you have one stream making $200+ consistently, you can think about adding others.

My current mix:

How I built it: Started with just the course. Once that was making $400/month consistently, I added affiliate marketing. Then templates. Then investing. Took about two years to build all streams.

Strategy: Each new stream should leverage what you've already built. My affiliate marketing works because I already have an audience from my course.

Your Next 30 Days

Stop researching and start building:

Week 1: Pick ONE passive income idea. Research 3-5 successful examples.

Week 2: Create your first piece of content or make your first investment.

Week 3: Set up the basic systems and platforms you need.

Week 4: Promote what you've created and start building an audience.

30-day goal: Have your first passive income stream launched, even if it's not perfect.

Real Talk About Passive Income

Building passive income is harder than most people want it to be, takes longer than seems fair, and requires more upfront work than feels reasonable.

But it's also one of the only ways to break free from trading time for money forever.

The people making serious passive income didn't get there quickly or easily. They put in months or years of work that felt like it wasn't paying off, until suddenly it was.

You don't need to quit your job or bet everything on one idea. Start small, be patient, and build something while you're still earning active income.

Your homework:

1. Pick one idea from this list.
2. Spend 10 hours this week working on it.
3. Commit to sticking with it for six months minimum.
4. Track your progress weekly.

Don't wait for motivation. Don't wait for the perfect idea. Don't wait until you feel ready.

Just pick something and start building. Your future self will thank you for starting today instead of waiting for tomorrow.

The best time to plant a tree was 20 years ago. The second-best time is right now.

Need to build active income while your passive streams grow? Check out our guides on making $1,000+ monthly and online side hustles for beginners.