Earning money while you sleep has become the ultimate financial goal for most people. Though a bit oversold at times, the concept is still valid since that’s the principle passive income is built on. You create revenue streams requiring little to no daily effort once set up.
Contrary to popular belief, you don’t need to be already rich or a financial expert to earn passive income. You just need to start small and grow over time. So, no, passive income ideas might not make you a millionaire overnight. However, after the initial investment, your idea can generate passive income for years to come, helping you steadily build wealth.
Looking for a reliable guide on how to make money passively? This article will explore 13 passive income ideas to help you make money without having to clock in extra hours at work in 2025.
Why is passive income earning becoming more important?
The concept of earning passive income has gained significant traction in recent years for several reasons.
- Job insecurity: Gone are the days when a single 9-to-5 job guaranteed financial security, and you could stay employed until retirement. Today, technological disruptions like automation and AI are rendering some jobs obsolete, resulting in massive layoffs.
Passive income offers an additional revenue stream that cushions you in case you lose your monthly income.
- Technological advancement: Even with its cons, technology has made passive income opportunities more accessible than ever. Ecommerce websites, affiliate marketing, and digital content creation allow individuals to set up revenue streams with relatively low initial investment. Automation has also reduced the need for active involvement in your passive income investments.
- Cost of living: Economic fluctuations and uncertainties have become the norm, often making it difficult to handle all your financial obligations comfortably. In fact, 67% of employed adults in the US are worried their compensation has not kept up with inflation.
Learning how to create passive income will give you steady cash flow even during tough economic times to ensure you always meet your financial obligations.
- Work-life balance: More people are consciously trying to break the live-to-work cycle to enjoy a full life. Earning passive income gives you more control over your time. Instead of spending most of your time at work to make more money, you can pursue hobbies, travel, or spend quality time with loved ones while still earning.
- Tax benefits: One of the biggest advantages of earning passive income in the U.S. is the tax benefits provided by the Internal Revenue Service (IRS). For instance, some forms of passive income, like qualified dividends and profits from selling assets held for over a year, are taxed at the lower capital gains tax rates. These rates are generally lower than the ordinary income tax rates.
- Retirement planning: Social security benefits and traditional pension plans are becoming less reliable due to factors like job insecurity and inflation. Fortunately, passive income is helping supplement retirement savings, allowing you to maintain your desired lifestyle even after retirement.
The essence of embracing passive income is diversifying your income streams so that you can handle financial uncertainty, gain financial freedom, and ultimately build wealth.
13 Ideas to generate passive online and offline income in 2025
Here are 13 great passive income ideas you can venture into to earn passive income both online and offline in 2025. Some require an upfront investment of time or money, while others only require minimal resources.
1. Invest in the stock market
Investing in the stock market is one of the most reliable ways to generate passive income. You buy shares of a company, which makes you a partial owner. As the company grows and gains more profits, the value of your shares increases.
You can consider various stock investment strategies:
- Dividend stocks: Dividend stocks are shares in companies that pay out regular dividends (a portion of the company’s profits) to shareholders. When you invest in dividend stocks, you earn a steady income stream and also enjoy the capital appreciation that comes with the increase in stock prices.
The best dividend-paying stocks are those from dividend aristocrats since they have a proven record of consistent growth. The list features high-quality companies like Coca-Cola, Johnson & Johnson, Caterpillar Inc., and Procter & Gamble, whose dividend stocks typically perform well even during market downturns.
- Dividend Reinvestment Plan (DRIP): A Dividend Reinvestment Plan (DRIP) allows you to automatically reinvest the stock dividends you receive back into more shares of the company’s stock. This is a fantastic way to grow your investment over time since your dividends buy you more shares, which then earn their own dividends.
- Growth stocks: Growth stocks are shares in companies expected to grow at an above-average rate compared to other companies. These companies often reinvest their profits back into the business to fuel further growth.
This means you won’t get regular payouts but could see significant increases in stock value over time. It’s a great idea if you’re looking for capital appreciation.
- Value investing: With value investing, you find stocks that are undervalued by the market. These are companies that you believe are worth more than their current stock price indicates. Over time, as the market realizes the true value of the company, the stock price will increase, boosting your profits.
If you prefer a more diversified and hands-off approach, exchange-traded funds (ETFs) and index funds are great options. These mutual funds pool money from multiple investors to buy a broad range of stocks, reducing the risk of investing in individual companies.
A popular choice is an S&P 500 ETF like Vanguard’s VOO. This fund invests in the top 500 companies in the U.S., giving investors exposure to some of the best-performing businesses.
While investing in stock markets, conduct thorough research and diversify your investments to minimize the risks of market fluctuations and losing money. Also, adopt a long-term perspective since long-term stock investments typically yield more positive returns.
2. Invest in bond funds
Investing in fixed-income securities like bonds is a solid option if you’re looking for a low-risk way to earn passive income.
Bonds allow you to lend money to governments, corporations, or municipalities in exchange for periodic interest payments. Unlike stocks or money market accounts, which can be volatile, bonds are stable and provide predictable returns. This makes them a great choice for more conservative investors.
Government bonds, like U.S. Treasury bonds, are the safest because they are backed by the government. But if you’re comfortable with a bit more risk in exchange for higher returns, corporate bonds from well-established companies can offer better interest rates than government bonds.
In addition, you can invest in bond funds through bond ETFs. These exchange-traded funds invest in a diverse portfolio of bonds, from government to corporate bonds. This comes with the benefit of lower transaction costs and better returns compared to when you invest in individual bonds.
3. Open a high-yielding current or savings account
Opening high-yield current or saving accounts is another great way to earn passive income with minimal risk.
These accounts pay a significantly higher annual percentage yield (APY) than traditional savings accounts. The interest on your deposited funds is compounded monthly, quarterly, or annually and added to your account balance. This means the more you save or deposit, the more you earn.
Banks and credit unions offer high-yield accounts, both online and brick-and-mortar. However, online banks, such as Marcus by Goldman Sachs and Ally, offer significantly higher interest rates than traditional institutions.
One of the biggest advantages of high-yield accounts is liquidity. Unlike stock markets or real estate investing, your money remains easily accessible while still generating returns.
Additionally, these accounts are typically insured by the FDIC (for banks) or the NCUA (for credit unions), which guarantees your principal’s safety.
To ensure higher returns on your high-yield savings accounts, set up automatic money transfers to your high-yield savings account to grow your balance consistently.
Also, consult a financial advisor, go for long-term payout schedules, and choose accounts with no monthly maintenance fees or minimum balance requirements.
4. Rent out your spare home, room, or car parking
The rise of online platforms has made it easier than ever to connect with potential renters and make the most of your unused spaces.
For instance, you can list your extra space on platforms like Airbnb, Vrbo, and Booking.com to quickly connect with people looking for short-term stays.
This is a particularly great way to earn passive income if you own a second property or have an extra room in a high-demand area. Most travelers today prefer staying in cozy, private spaces rather than expensive hotels. This has made short-term rentals a lucrative business opportunity.
Even if you only rent it out a few times a month, the rental income can help you cover mortgage payments and other expenses.
You don’t even have to deal with guest management. A platform like Vrbo can match you with a property manager who will handle bookings and cleanings. This will make renting your spare home or room a fully passive income stream.
If you live near a busy area, airport, or stadium, you can use your unused parking space to make some extra money. Apps like SpotHero, JustPark, and Parkopedia allow you to rent out your parking spot for a daily, weekly, or monthly fee.
This is one of the easiest ways to make money passively since it requires zero maintenance. Once you list the space, all you’re left to do is collect payments.
5. Create and sell an online course
Online learning is booming, mainly because most people are willing to pay for valuable knowledge that helps them improve their skills, careers, or hobbies.
Our research on the online education market showed that 93% of course creators earn income from their online courses.
This means creating and selling an online course is a fantastic and highly profitable way to earn passive income. The best part? Once you create the course, it can generate revenue for years as long as you keep it relevant and updated.
All you need to do is choose a profitable online course topic, plan your course content, and market your course effectively to boost your earnings. GetResponse offers a built-in course creator that lets you design, market, and sell your online courses all from one place.
Our AI-powered course creator lets you build your online course in minutes. It can also structure your course content into different modules, including audio, PDFs, in-house webinars, videos, external resources, and interactive quizzes.
Once your learners finish your course, you can share certificates of completion as tangible proof of their achievements.
Besides that, you will have access to marketing tools like marketing automation, webinars, course websites & landing page builders, popups, and forms to help you boost your earnings.
The GetResponse online course platform also supports PayPal and Stripe integrations. You can also use this platform to create premium newsletters and membership sites where you can monetize and sell your knowledge.
6. Sell your photos or music online
Are you a photographer, musician, producer, or sound designer? You can turn your skill and creativity into a passive income stream.
Stock photography websites allow you to upload and sell your images to businesses, bloggers, and content creators worldwide. Each time someone purchases your photo, you earn a royalty payment. Popular platforms include Shutterstock, iStock, Alamy, and Adobe Stock.
Focus on high-demand topics such as business, travel, nature, and lifestyle photography to maximize your stock photography earnings. The main advantage, however, is that you can get recurring passive income from a single image.
For music, you can sell your tracks, beats, or sound effects on platforms like AudioJungle, Pond5, Bandcamp, and Epidemic Sound. These platforms allow video creators, marketers, and businesses to purchase licenses to use the music in their projects. The musician or producer then earns a one-time licensing fee for each sale.
Like photos, royalty-free music can be sold to multiple customers without additional costs. This means the same track can generate income from numerous sales, providing a steady revenue stream.
7. Try affiliate marketing
Affiliate marketing is an excellent way for freelancers, bloggers, influencers, and marketing experts to earn passive income.
You promote other companies’ products and earn a commission whenever someone makes a purchase through your unique affiliate referral link. If done right, affiliate marketing will generate passive income consistently for months or even years.
To get higher affiliate commissions, choose high-ticket affiliate programs you are passionate and knowledgeable about. Then, produce high-quality content and promote the affiliate products within your content.
If you’re looking for a reliable affiliate program with high earning potential, check out the GetResponse Affiliate Programs. GetResponse is a leading email marketing, automation, and content monetization platform that businesses, bloggers, creators, and entrepreneurs use to grow their audience.
We offer two key affiliate programs: the GetResponse Affiliate Recurring and Bounty programs. You can sign up for either one or both.
The recurring program offers a continuous default of 33% monthly commission on every referral as long as the referrals continue using the platform. You can also earn up to 50% monthly commissions if you make over 50 sales in six months.
With the Affiliate Bounty Program, you get an upfront commission for every sale: $100 for our email marketing products and $150 for our content monetization ones.
We offer special discounts on GetResponse plans to boost our affiliates’ sales. Our exclusive affiliate marketing platform is also equipped with all the tools, content, and selling guides you need to create successful affiliate campaigns.
8. Consider Peer-to-peer lending
Peer-to-peer (P2P) lending is a modern way to earn passive income by lending money directly to individuals or small businesses through an online platform like Prosper.
Such platforms connect borrowers with investors like you who lend them money. The borrowers then repay their loans, based on the agreed terms, and you earn monthly interest payments, which you reinvest back in the platform for steady passive income.
P2P lending is riskier than putting your money in a high-yield savings account since there’s always a chance a borrower might default on their loans. However, you are more likely to earn more interest.
Diversify your investment by lending smaller amounts to multiple borrowers to minimize the value of potential losses. Also, vet your potential borrowers’ borrowing and payment history carefully. Ensure you only choose loan requests that align with your risk tolerance and investment goals.
9. Invest in a vending machine
Investing in a vending machine is a smart and low-maintenance way to earn passive income, especially if you place it in a location with high foot traffic. Ideal locations include offices, schools, malls, hospitals, and gyms.
What you stock will also determine your vending machine’s success, so ensure you cater to different target customers.
For instance, healthy snacks are likely to do well in gyms, while energy drinks and coffee are great for office buildings. Monitor your sales data to identify high-demand items and adjust your inventory to maximize profits.
10. Start a YouTube channel and monetize it
With over 2.7 billion global monthly users, YouTube presents a great opportunity to generate passive income.
To monetize your YouTube Channel, you must have 1,000 subscribers and 4,000 valid public watch hours in 12 months. Alternatively, have 1,000 subscribers with 10 million valid public Shorts views in the last 90 days.
This means you must start by building an audience.
Choose a topic you’re passionate about. That could be tech reviews, personal finance, fitness, gaming, or travel. Then, make engaging, informative, or entertaining videos that attract viewers. Use SEO-friendly titles, descriptions, and thumbnails to boost your visibility and get more views.
Once you’ve met YouTube’s monetization requirements, apply for the YouTube Partner Program and start earning money.
Some key ways to earn passive income through YouTube include ad revenue, sponsorships, channel memberships, merchandise sales, and affiliate marketing.
Your uploaded videos will continue to attract views and generate ad revenue over time. But keep in mind that sharing valuable content consistently will get you more views, which will boost your earning potential.
Growing your YouTube channel will take a lot of time and effort upfront, but once your channel and videos gain traction, they can generate passive income for years. Therefore, if you’re willing to put in the work, YouTube can become a highly profitable long-term income stream.
11. Create an app
The rising reliance on mobile devices for nearly all tasks, from budgeting to entertainment, makes creating an app one of the best ways to generate passive income.
The first step to creating an app is to identify a problem your app will solve. The most successful apps address real-world needs through solutions like a productivity tool, a budgeting app, or a fitness tracker. A good app can also serve entertainment purposes, e.g., a mobile game app.
Also, you don’t need coding experience to build an app. You can hire a developer or use no-code platforms like Bubble and Adalo to bring your idea to life.
As of the second quarter of 2024, consumer spending on mobile apps was $36.2 billion. So, how do you tap into this market?
You can adopt a freemium model, where users get a basic version for free but must pay for premium features. Alternatively, you can charge monthly or annual subscriptions or allow in-app purchases. Ad revenue from in-app ads is another lucrative way to monetize your app.
The major downside of developing an app is the significant initial investment of time and resources required. You also need to keep it updated to retain engagement and profitability.
Additionally, the novelty of most apps wears off pretty quickly, which means the passive income stream might dry up faster compared to other ideas.
12. Print on demand
Print-on-demand (POD) is a great way for artists and designers to monetize their creativity and generate passive income. This business model allows you to sell custom-designed products such as T-shirts, mugs, phone cases, and tote bags, but only after an order is placed.
You can use a third-party service like Zazzle to print and sell your products with minimal effort.
Zazzle’s Creators Programme provides you with design tools to create unique products. When a customer makes an order and completes payment for your design, you earn a royalty based on the final sale price. Zazzle handles the manufacturing, inventory, shipping, and customer service.
The startup cost of a print-on-demand business is generally low. The profit margins might also be low due to the high production costs, considering your products are not printed in bulk.
13. Dabble with dropshipping
Dropshipping involves setting up an online store using Shopify, WooCommerce, or BigCommerce, where customers browse and order products. But unlike in traditional retail businesses, you don’t typically hold any inventory with dropshipping. You only focus on marketing, branding, and customer service to attract customers to your online store and boost conversions.
Your reliable third-party supplier, who can be found on AliExpress, Spocket, and SaleHoo, will pack and ship the items on your behalf. This means you never have to worry about warehouse costs or logistics, which makes dropshipping one of the best strategies to generate passive income.
In closing
There are countless ways to build a reliable passive income stream, from investing in stocks and bonds to dropshipping and joining affiliate programs.
Some methods, like stock market investments, real estate investment trusts, and high-yield savings accounts, require an upfront financial commitment and little effort.
Others, like dropshipping, YouTube, online courses, and affiliate marketing, rely more on your expertise and marketing skills. They demand more work upfront, but you can enjoy long-term passive earnings once you’ve built a reliable audience or customer base.
The key to success is staying consistent and choosing the right passive income strategy based on your skills, interests, and financial goals. Also, remember that the more you diversify your passive income streams, the more financial freedom you can achieve.
So, start with one or two income streams, refine your approach, and scale your passive income sources over time.