NovaXyon Affiliate Marketing 25 Passive Source of revenue Concepts to Make Cash & Construct Wealth in 2023

25 Passive Source of revenue Concepts to Make Cash & Construct Wealth in 2023



[ad_1]

In this article, we discuss 25 passive income ideas to make money & build wealth in 2023. You can skip our detailed analysis of passive income and its benefits in today’s world, and go directly to read 5 Passive Income Ideas to Make Money & Build Wealth in 2023

The concept of passive income is becoming increasingly popular as more people are leaning towards side jobs. A survey by Zapier from May 2022 found that 36% of Gen Xers have a side job, while 59% of Gen Zers and 61% of millennials have one. Gen Zers, in particular, make around $9,537 annually from their side gigs. These side hustles can be a very good way to supplement income, though they are not typically considered passive income sources. However, some side hustles may become more passive over time as people streamline operations, delegate tasks, or automate processes. Earlier this year, CNBC did a report on Jasmine McCall, a 31-year-old entrepreneur who makes $105,000 a month in passive income from her side hustle.

Passive income typically comes from investments, assets, or activities that require minimal ongoing effort once set up. Last year’s inflation increased the appeal of passive investing in stocks, particularly dividend-paying stocks. Passive equity funds, which are primarily designed for long-term capital appreciation and wealth accumulation, are about to achieve a significant milestone. Their total assets worldwide are soon going to surpass the assets of actively managed funds, a trend that has been developing for over a decade, as reported by Societe Generale. According to James Seyffart of Bloomberg Intelligence, passive investing has been growing consistently in the US. Currently, passive mutual funds or passive ETFs own about 19% of the shares of the typical publicly traded U.S. stock. This ownership has tripled since 2013.

AI and Passive Income

In a recent survey conducted by GOBankingRates, people were asked about their thoughts on using artificial intelligence (AI) to generate passive income. The results were positive, with 45% of respondents expressing their interest in using AI for passive income, and an extra 8% mentioned they had already done so.

AI-focused companies like Meta Platforms, Inc. (NASDAQ:META) can potentially help people earn passive income. The company with its expansive digital ecosystem, offers opportunities for passive income through advertising revenue for content creators on platforms like Facebook and Instagram. Similarly, Amazon.com, Inc. (NASDAQ:AMZN) utilizes AI in various aspects of its business, including its e-commerce and cloud services. Earning passive income through the company can be achieved through various avenues, primarily by participating in its affiliate program, publishing ebooks on Kindle Direct Publishing (KDP), or utilizing Amazon’s print-on-demand services.

All these strategies mentioned above can help generate passive income, but investing in dividend-paying stocks is also a dependable way to make money passively. Companies like The Coca-Cola Company (NYSE:KO), The Procter & Gamble Company (NYSE:PG), and PepsiCo, Inc. (NASDAQ:PEP) are some well-known companies that have raised their dividends for decades, providing a regular stream of income to investors.

Earning passive income can be a good idea when it aligns with one’s financial goals, risk tolerance, and available resources. Diversifying income sources and planning for the long term can enhance financial well-being. In this article, we will discuss 25 best passive income ideas to build wealth in 2023.

Passive Income Ideas to Make Money & Build Wealth in 2023

Passive Income Ideas to Make Money & Build Wealth in 2023

Photo by Sharon McCutcheon on Unsplash

Our Methodology:

For this list, we scoured through several credible and expert sources, including Forbes, Reddit, CNBC, Barron’s, and Business Insider, renowned for their insights and expertise in the field of finance and passive income. By aggregating information from these reputable outlets, we aimed to identify common threads and consensus recommendations regarding strategies for generating passive income. Our goal was to offer a curated selection of passive income ideas that have garnered recognition and success among individuals pursuing passive income.

25. Music and Photo Licensing

A music license is permission granted to use copyrighted music. It’s commonly used in movies, TV shows, commercials, online videos, and any visual content that wants to use a song legally. It is one of the best passive income ideas as the process involves creating high-quality content, registering copyrights, and uploading work to licensing platforms like Shutterstock, Inc. (NYSE:SSTK), Adobe Stock, or music libraries. Shutterstock remained popular among elite funds in Insider Monkey’s database, as 31 hedge funds owned stakes in the company at the end of Q2 2023, up from 25 in the previous quarter.

24. Rent out Your Spare Room

Earning passive income by renting out a spare room in your home can be a lucrative way to make extra money. However, it is always advised to check local laws and regulations regarding room rentals. Some areas may have specific rules, permits, or taxes related to short-term rentals. Airbnb, Inc. (NASDAQ:ABNB) is one of the most well-known platforms for renting out spare rooms and entire homes to travelers. ABNB has delivered a 68.14% return to shareholders since the start of 2023, as of September 16.

23. Record Audiobooks

Recording audiobooks is next on our list of the best passive income ideas. It is important to choose a niche or genre of audiobooks and invest in good recording equipment to create professional-quality audiobooks. Distribution platforms like Audible allow the publishing of these audiobooks and make them available for sale on major audiobooks retailers such as iTunes and Amazon.com, Inc. (NASDAQ:AMZN).

22. Buy and Sell Websites

Buying and selling websites for passive income can be a profitable online business model. It involves acquiring existing websites, improving them, and then selling them for a profit. It is also important to continuously monitor the website’s performance, make necessary adjustments, and track key metrics like traffic, revenue, and profitability.

21. Develop a Niche Job Board

Developing a niche job board refers to creating an online platform or website that specializes in listing job opportunities within a specific industry, profession, or category. Unlike general job search websites like Indeed or LinkedIn, which cover a wide range of job types and industries, a niche job board focuses on a particular niche or sector. After setting up the job board, making money by charging companies for posting job listings is a good way to earn passive income. Indeed, SimplyHired, and CareerBuilder are some of the most prominent websites that operate niche job boards.

20. Sell Your Notes

Selling notes typically involves creating and selling study or course materials, lecture notes, or educational content to students or learners. Well-researched, organized, and easy-to-understand notes provide real value to the target audience and are and are priced competitively. Teachers Pay Teachers (TPT) is one of the largest online marketplaces for educational resources. It allows teachers and educators to sell their lesson plans, worksheets, and other educational materials.

19. Run an Affiliate Marketing Business

Running an affiliate marketing business is next on our list of the best passive income ideas. It involves promoting other companies’ products or services and earning commissions for driving sales or leads to those businesses. Consistent, quality content and effective SEO can help maintain a steady flow of commissions, making it a potentially lucrative source of passive income over the long term. Amazon.com, Inc. (NASDAQ:AMZN)’s affiliates program is one of the largest and most popular. Users can promote a wide range of products on the Amazon platform and earn commissions on sales generated through your affiliate links.

18. Create a Mobile App

Creating a mobile app can be a potential source of passive income. People should either create the app themselves if they have the skills or hire a developer. It is important to make sure that the app is user-friendly, well-designed, and functions smoothly. The monetization strategy works best when earning passive income.

17. Purchase ATMs

Purchasing ATMs involves a specific business model and understanding of the ATM industry but it can be a very reliable way to earn passive income. When someone uses the ATM to withdraw cash, they are charged a fee for convenience, a part of which goes to the ATM owner.

16. Start an E-Commerce Store

Starting an e-commerce store is one of the most popular passive income ideas today. The pandemic of 2020 has boosted online shopping and income seekers are trying to make the most of this trend. According to a report on digital shopping, more than 265 million consumers in the US are expected to be shopping online in 2023. People can earn passive income by setting up an online retail business that operates with minimal day-to-day involvement once it’s established. E-commerce platforms like Shopify Inc. (NYSE:SHOP) can help build and host an online store. In the second quarter of 2023, Shopify generated nearly $1.7 billion in revenues, which showed a 31% growth from the same period last year.

15. Peer-to-Peer Car Rentals

Peer-to-peer car rental is a practice where individuals rent their private vehicles to others on a short-term basis, usually through an online platform or app. It is a profitable venture, especially if the vehicles are underutilized. However, it’s crucial to provide excellent customer service, maintain your vehicles, and understand the terms and conditions of the platform you choose. Getaround, Inc. (NYSE:GETR) offers peer-to-peer car sharing in various cities in the US. Car owners can list their vehicles for rent, and renters can book them for short-term use. The company was a part of 15 hedge fund portfolios in our database at the end of Q2 2023.

14. Invest in Vending Machines

Vending machines are popular among people because of their convenience and ability to provide a wide range of products and services to consumers without the need for human intervention. According to a market report, the worldwide retail vending machine market was worth about $51.91 billion in 2021 and is projected to keep growing at an annual rate of about 10.7% from 2022 to 2030. Income seekers can earn passive income through vending machines by purchasing and strategically placing these machines in high-traffic areas. After initial setup, the machines can generate income with minimal ongoing effort. It is one of the best passive income ideas on our list as effective management and product selection are key to maximizing returns.

13. Royalties from Intellectual Properties

This idea refers to payments or fees earned by the owner or creator of intellectual property (IP) for allowing others to use, license, or distribute their intellectual assets. Income seekers should ensure that their intellectual property is legally protected through copyrights, patents, trademarks, or other applicable forms of intellectual property rights.

12. Sell Designs Online

Earning passive income by selling designs online is a creative venture. Many online marketplaces allow users to develop unique and high-quality designs that cater to a specific niche or market. This can include graphic designs, illustrations, digital art, t-shirt designs, printables, or any other creative works. Some of the most prominent platforms include Etsy, Inc. (NYSE:ETSY) and Shutterstock, Inc. (NYSE:SSTK).

11. Investing in Bonds

Earning passive income by investing in bonds can be a relatively low-risk way to generate regular income. To invest in bonds, income seekers can buy them directly from the issuer or in the secondary market through a brokerage account. The secondary market allows you to buy and sell bonds from other investors. Holding bonds until they mature ensures that investors receive the full face value of the bond, provided the issuer remains solvent. This approach minimizes interest rate risk. Investors will receive regular interest payments until maturity. They can also choose to reinvest the interest income they receive, compounding the returns over time. Alternatively, investors can use the interest payments as a source of passive income.

10. Offer Software as a Service (SaaS) Business

SaaS business is a model where software applications are delivered over the internet on a subscription basis. Instead of purchasing and installing software on individual computers or servers, users can access and use SaaS applications through web browsers. Income seekers can earn passively after developing a valuable software product, setting up a subscription-based pricing model, and continuously attracting and retaining customers. Salesforce, Inc. (NYSE:CRM) is one of the top SaaS companies. The company’s revenue for Q2 2023 came in at $8.6 billion, which showed an 11.4% growth from the same period last year.

9. High-Yield Savings Accounts

A high-yield savings account is a type of savings account offered by banks and financial institutions that typically provides a higher interest rate compared to traditional savings accounts. The account with competitive interest rates allows the power of compound interest to work for income seekers. With compounding, the interest gets added to the principal balance, allowing the savings to grow over time.

8. Start a Blog or YouTube Channel

Starting a blog or YouTube channel is next on our list of the best passive income ideas. Income seekers can create content according to their own interests or expertise and monetize it through methods like display ads, affiliate marketing, and selling digital products or courses. The passive aspect comes into play once the created content gains traction by attracting viewers and readers over time.

7. Create a Subscription Box Service

This strategy involves curating and delivering a selection of products or experiences to subscribers on a recurring basis, typically monthly. Profit seekers should select a niche or theme that resonates with their target audience and establish relationships with suppliers to create high-quality themed boxes. Effective marketing strategies are key to attracting subscribers, and once a substantial customer base comes into play, the income becomes passive as subscribers renew their subscriptions automatically.

6. Automated Dropshipping

Automated dropshipping is a business model in e-commerce where an online retailer (the dropshipper) sells products to customers without physically handling the inventory. Instead, the drop shipper partners with a supplier or manufacturer who handles the storage, packaging, and shipping of products directly to the customers. The primary role of income seekers revolves around marketing, customer service, and optimizing their e-commerce store. As the store gains traction, it can generate passive income through product sales and repeat customers.

 

Click to continue reading and see 5 Passive Income Ideas to Make Money & Build Wealth in 2023.

 

Suggested articles:

Disclosure. None. 25 Passive Income Ideas to Make Money & Build Wealth in 2023 is originally published on Insider Monkey.

[ad_2]

Leave a Reply

Your email address will not be published. Required fields are marked *