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Passive Income: 17 Examples + Tips for More Money

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Many employees and self-employed dream of it: Passive income that fills their own account every month in addition to their salary. Passive income promises ongoing income without having to invest time and work in the long term.

Especially when the job is stressful and overtime is getting longer and longer, passive income is an attractive addition and alternative. But is the idea that passive income allows for a better financial situation without having to work more is correct?

Unfortunately, the reality is not that simple. Passive income doesn't mean that you just watch your account balance go up. But there are still different ways to generate passive income. We present numerous possibilities for passive income, give you tips for the implementation and show you what you should pay attention to ...

➠ Content: This is what awaits you

➠ Content: This is what awaits you

What is passive income?

Active income is the type of job that most people do. The idea is simple: you make your labor available - in the form of time, mental or physical abilities - and receive an appropriately negotiated payment for it. This applies both to employees who receive a corresponding salary for the number of hours specified in the employment contract and also to self-employed who receive a fee from the client for their work.

Passive income works differently, there is no direct consideration required from you to make money. Regardless of whether you are currently traveling, doing your main job or doing sports: Passive income generates itself even if you do absolutely nothing.

Passive income is earned even when you are not working on it. You don't have to invest time and effort on an ongoing basis to generate passive income.

Unsurprisingly, passive income is what many people dream of. Earn more money at work without stress, without annoying colleagues, exhausting customers or complaining bosses - and at the end of the month still enough money in the account to pay all the bills and even put something aside. The seemingly perfect life, money without work and as much free time as you want every day.

Sounds too good to be true - and unfortunately it is in this extreme form. It is difficult if not impossible to earn a living entirely without a job from passive income. After all, you first have to build something that will then generate regular income and the way to get there is long, strenuous and usually involves a lot of work.

There is also the problem of maintaining passive income. Your idea, your project or even your company, with which you generate passive income, may still regularly generate some money in the beginning, but most sources of income dry up quickly as soon as you are no longer paid any attention.

The more realistic approach is therefore to view passive income as a source of income that initially requires at least as much work as a normal active income job. Afterwards, the workload can be reduced, but those who just lie on the lazy skin are most likely indulging in an illusion.

Create passive income

So you won't be able to generate passive income by sitting back and waiting. It takes motivation and the necessary initiative to even get to the point where an idea or a product generates money - and then this must be suitable for generating passive income even without your further work.

The good news: There are a number of ways you can create passive income.

We have listed many examples and opportunities for passive income that show you various options to earn money as long as possible without having to keep investing new work. Please remember, however, that although these can work, they are in no way a guarantee that you will be able to earn a living solely from passive income.

1. Websites

The point here is not to create the largest page on the World Wide Web, but rather to operate many small websites, each of which relates to a very special topic. If you always land on the top Google rankings for various search terms and earn money from advertising on every page, all you need to do in the long term is to maintain good search engine performance.

Information pages on specific topics are particularly suitable for this purpose. These should be correspondingly extensive and good in order to be found, but later have a smaller amount of work, which only consists of updates and SEO optimizations. Of course, it is also important that a corresponding search volume is available in order to get readers to your own pages at all.

2. Affiliate Marketing

Affiliate marketing is a type of distribution where you can generate passive income through commissions. In practice it works like this, for example: You operate a website on which you test technology and new devices. You present the test winner and lead to the manufacturer's shop with a so-called affiliate link.

If your readers now use the link to buy the device in the shop, you will get part of the turnover back as commission and earn money with it. So the greater your reach and credibility, the better your chances of generating residual income with affiliate marketing.

3. Amazon FBA

The abbreviation stands for “Fulfillment by Amazon” and can be seen as a way of generating passive income. If you want to sell a product, you can do so via Amazon FBA - you outsource the entire process of logistics to online retail. In plain language: you list your product on Amazon, send the goods to a logistics center and the online giant takes care of the rest.

You no longer need to worry about shipping or returns. Once you have manufactured a product in large numbers, you can look forward to a corresponding passive income.

4. E-learning

The advantage of digital work and products is that they are almost infinitely scalable. They can offer the best advice or tuition in an area or skill, as long as you do it yourself, your income is always active and limited to the time you can invest.

If, on the other hand, you manage to get your advice in the form or your lessons digitally in the form of videos or e-learning, you can not only serve hundreds of customers at the same time, but only have to take care of marketing and video shooting yourself.

5. Books

Writing a good book that deals with an exciting topic and encourages readers to buy is far from being child's play, but once done, you can generate passive income. With every copy sold you earn more money and the possibilities are almost unlimited, not only in terms of topics, but also in terms of design and marketing.

6. E-books

In the digital age, e-books can be a very good alternative to traditional paper-sized books. Regardless of whether it is advice and tips on a topic or specific information about an area in which you are an expert - high-quality e-books that you offer for download at comparatively low prices generate passive income.

7. Apps

Everyone walks around the world with a smartphone, constantly looks at the display and has all kinds of apps installed. If you manage to develop a successful app, you can not only benefit from passive income, but you can also make a whole lot of money. But it doesn't have to be the next Instagram or Pokemon Go, even smaller apps without hundreds of millions of users can bring money.

However, this path requires appropriate knowledge or a partner who takes care of the technical side while you take on another part.

8. Advertising space

There are several ways to generate passive income with advertising space. You can do this on a blog or your website, but you can also make money off of advertising offline.

For example, you can offer your car as advertising space. There are portals on the Internet where you can specify the price for which you want to advertise a company on your car and interested parties can contact you directly.

9. Designs

Whether on T-shirts, coffee mugs or as a framed picture for the wall: There are many platforms on the Internet where you can use your own designs to generate passive income. With the necessary creativity and a little talent, you will meet the taste of as many customers as possible and make all the more money.

10. Youtube

The stars of the scene show that it can be a million dollar business, but even with fewer followers you can build up a passive income via YouTube. Whether it's informative videos, funny content or something completely different: As long as the number of clicks on your videos is sufficient, you will continue to make money with the advertising, even if you have long since turned to something else.

11. Rental Income

Rental income is also a classic form of passive income. By renting out a property, you earn a fixed monthly amount without having to work for it. However, sometimes there are administrative tasks that you need to take care of.

The prerequisite is, of course, that you have a property - this variant for a passive income is therefore not feasible for everyone.

12. Investment Income

The same applies to investment income: by investing in shares, you create passive income that you can regularly look forward to. The disadvantage here, too, is that you first need start-up capital in order to be able to invest it.

Passive Income Tips

Now, you know many different ways that you can create passive income. In addition, we have put together a few tips that will help you with the implementation:

  • Find a business idea
    There is no silver bullet to passive income. Everyone has to find out for themselves what works for them and what suits their individual situation. Do not rush into a project carelessly, but think about the idea with which you can create the best possible passive income for yourself.
  • Focus instead of mass
    Passive income is not always a fortune, but often an additional income. In order to maximize profit, some people come up with the idea of ​​combining as many variants of passive income as possible. This is seldom crowned with success. It is better if you concentrate on a few forms of passive income, but optimize them for it.
  • Easy duplication
    Products that can be easily duplicated and distributed are suitable for passive income. After all, you want to put as little work into it as possible and still have income. This is especially true for digital products, which is why they are preferred for passive income.
  • Sustained demand
    Short-term passive income is nice, but it is really worthwhile for months or even years. Sustained demand ensures you passive income over a long period of time on which you can continue to build.
  • Control passive income
    In order to successfully build passive income, you have to check again and again whether the income is growing or at least staying constant - and if necessary intervene to achieve this. Passive income just doesn't work without your help.

Everyone who wants to create passive income should heed the last tip: As nice as it would be to earn money by doing nothing, the reality is usually different. Those who do not contribute will hardly generate passive income - unless they already have the necessary change to make financial investments and benefit from them.

Is passive income possible without start-up capital?

"Without the necessary start-up capital, I can't build up a passive income anyway ..." This criticism and concern is widespread and so many people do not even pursue the desire for a passive source of income. But does it really need a lot of start-up capital to generate passive income?

The clear answer is: No, it doesn't need to be! There are numerous ways and means of generating passive income that do not require any upfront investment or start-up capital.

Exceptions here are financial investments, for example in the form of stocks, real estate or personal loans, which you can grant for passive income. Such investments are considered to be one of the purest types of passive income, since, for example, with a stock portfolio, there really is almost no further effort.

However, it actually requires a certain amount of start-up capital in order to be able to draw passive income in a significant amount. Those who start with only 100 euros cannot expect to achieve a large financial plus in the foreseeable future.

If you do not have high start-up capital, there are still enough options and alternatives with which you can get a passive income.

Beware of black sheep with passive income

The dream of passive income is big. Unfortunately, many black sheep who do mischief on the Internet also know this.

Whether on Facebook, in pop-up advertising windows or on your own homepage: There are countless offers on the Internet that almost all make the same promise: Never work again, earn a fortune through passive income and the whole thing is super easy and guaranteed foolproof, because absolutely nothing can go wrong. The calls are then garnished with pictures of expensive cars, huge villas or dreamy landscapes.

The message is clear: "Join in and you will soon be living in luxury" - only through passive income. The big secret of how this is supposed to work is then sold for a fee or offered as a subscription right away. A scam that unfortunately falls for far too many people who hope for income without any effort.

Always remember: With these offers, only one person makes money in the end - the provider himself, who collects thousands of people in good faith. Admonish yourself. If it were that easy, everyone would do it and no one would have to have a job. And if it sounds way too good to be true, it usually isn't.

Tax passive income

You have to pay part of the income that you passively earn to the state. Because: You also have to pay tax on passive income. These are treated like other income and profits from a tax point of view.

For you, if you tax passive income: As a self-employed person or freelancer, you pay income tax on your passive income. Income from capital transactions must also be taxed.

Ignorance does not protect against punishment. You have to pay tax on your passive income, otherwise you commit tax fraud.

The best books on "Passive Income" and "Financial Freedom"

Note d. Ed .: The books and recommendations presented here represent a subjective selection by the editorial team. Behind them are affiliate links to Amazon. That means: We receive a small commission when buying the book via this link. The commission had no influence on the selection of the books.

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