How To Make Passive Income Online: Ultimate Guide

How To Make Passive Income Online: Ultimate Guide

Want to know how to make passive income online? Passive income is a very sought after way of making money. In order to generate a passive income stream from the internet, you have to make an upfront investment in all of the methods I will tell you about in this article.

The advantage of building a passive income is that once the passive income stream has established and you put the hard work in, this kind of income stream should be able to maintain themselves and bring you some money.

The problem with this method is that many people misunderstand this kind of making online money. So please don’t make the same mistakes as everybody else is making. In this article, I will tell you the best methods on how to make passive income online and how to start off with them!

What a passive income requires

Before I start telling you about the methods one thing should be made clear. The term ‘passive’ is most of the time misunderstood by many people. You could think that a passive income doesn’t require any work from you. This is not true at all! According to, passive income can be split into two different categories.

  1. Requires an upfront monetary investment
  2. Requires an upfront time investment

And this is true. The following methods that I will show you in this article are in either one of these categories. I will split the article into two sections, one with the ones where a monetary investment is needed and the other one is about methods where an upfront time investment is needed. So let’s tell you about various methods on how to make passive income online.


requires an upfront monetary investment

These methods require an upfront monetary investment. Feel free to skip this part and go straight to the part with methods that require an upfront time investment

1. Peer to peer lending

Peer to peer lending often called P2P is a method where you lend money to people who normally wouldn’t be accepted for a regular loan. You, the lender can choose who you want to lend your money and how much you are going to lend them maximum.

Peer to peer lending comes with its risks though. In order to minimize the risk of getting not paid by your peers, I recommend taking a look at Lending Club. When I was doing research about this topic I came across a good review from about Lending Club.

The best thing about Lending Club is that the investor, who are you, is going to get around 4-6% return! And this is all passive income. The only thing required from you is spending some money upfront.

2. invest in a business

Another but risky way of making a passive income is investing in different businesses. Investing always comes with its risks, but with risks comes a chance of getting more in return.

You might have heard about the company Uber. A couple of years ago, Uber was looking for private investors to invest in their company. Uber is now worth billions. The point I’m trying to make is that you have to look for small companies that have high potential like Uber and start investing in them.

So if you are ready to take a risk this can be a very good way to make some passive income. But if you don’t feel like taking a large risk investing in a business can still be relevant for you!

Fortunately, today there are companies like StreetShares and Worthy for you to explore. These companies allow investing in various businesses for as little as $10!

Check out Worthy

Check out StreetShares

3. Rent your properties

This method requires a lot more money than many of the other options. But when you start doing it, it won’t be a disappointment. Renting your properties to other people can be a very profitable method of generating passive income.

As said, a disadvantage of this method is that you need money to buy one or more properties. Depending on the location you live in this can vary a lot. You can buy for example houses, apartments, or even a couple of garage boxes to rent to people. After you bought the property and have found a renter to work with, all you need to do is make sure they pay you the agreed money. From that point all you earn is passive.

It can take a couple of months to years before you earn back the initial investment, but after that, it all is passive profit.

4. list your place on Airbnb

Talking about renting properties, another way of making money through properties is listing your house on Airbnb. It is almost the same as the third method, but now you are listing your place on the platform  Airbnb, which is a good platform to list your place. This is because they have a huge amount of visitors. So the chance is there that someone will view your place!


5. vending machines

Do you already have a vending machine? You can probably make some money with them! You can place your vending machine on any location you are competent to place them. This can almost be anywhere.

6. Invest in stocks using a bot

If you don’t want to invest in stocks yourself, you can always use a bot to do it automatically for you! A bot that invests automatically in stocks is called a Robo-advisor.

This is pretty straight forward. The only thing you have to do is setup the robo-advisor. This can be done by answering a couple of questions.

There are many great and popular robo-advisors out there on the internet. I came across a very good list from, where they have stated the 12 best robo-advisors. Here are the top 3 of them:


(Click on the image if you want to visit them)

Personally I would recommend for you to try them out for a while and see which one works the best for you!

requires an upfront time investment

The following methods for making passive income online are ones where you need an upfront time investment. This means that you have to put in some time and effort in order to start a passive income stream.

1. create an app

Have you had an idea for an app recently? This idea can make you money if you are willing to create the app and publish it. Once you have developed the app of your dreams, you can publish it on the Google Playstore and Apple Appstore. You will be able to make money from in-app purchases people do when using your app.

The only downside of this method is that you need an understanding of a programming language. For an iOS app, this can be Swift or Objective-c. On the other hand, if you think your app is so brilliant that it will generate so much money. You can always hire someone to do the coding for you.

2. affiliate marketing

Affiliate marketing is a very popular way of making an online income these days. In order to start making income with affiliate marketing, you need a website or anywhere else to write content. In this content, you will put so-called ‘affiliate links’, which will make you money once someone clicks on them and buy the promoted product.

If you’d like to learn many more about affiliate marketing you can look at a couple of blog posts of mine. They will show more in-depth information about this topic.

Affiliate Marketing blog posts 

affiliate marketing offer!

Are you interested in learning everything about affiliate marketing? Check out the best affiliate marketing course at the moment. This course will teach you everything, and you will become an expert in affiliate marketing

If you are interested you can check it out here

Or take a look at my blog post about it here

3. design t-shirts

If you like to be creative and want to earn some passive income, this method might be for you! There are many sites out there where you are able to design your own shirt from the internet. An example website is Cafe Press.

Another example of a website is Amazon Merch. At Amazon Merch, you design your t-shirt and Amazon will take care of the rest.

Check out Cafe Press

Check out Amazon Merch

4. Sell digital products

You can start selling any digital product. Even today! Selling digital products is a very broad way of making money online. You can decide what you’d like to start selling, as long as it is a digital product that can be downloaded from the internet.

A couple of examples are digital art, music, or ebooks. A popular platform to sell your digital products is Etsy.

Check out Etsy 


Now you know a couple of methods on how to make passive income online you can start right now! There are many methods that I’m sure there must be one out there for you. Good luck with your journey to a passive income!

When doing research about this topic I came across many ways to make a passive income. I have chosen to choose the best ones out there for you! That’s why this isn’t a list of 100+ ways to make a passive income. Again, this is because I have chosen to only list ones that are worth it in my opinion.

If you have any questions or suggestions don’t hesitate to ask them either via the comment section below, via the contact form, or directly via!

I hope this article gave you a good vision about how to make a passive income online and you are able to go further in your journey to a passive income! Good luck

Thanks for reading!




1 thought on “How To Make Passive Income Online: Ultimate Guide

Leave a Reply

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