5 Easy Passive Income Ideas for 2024

Hello, this is Taylor! Today, we’re going to dive into a fascinating topic—five ways to generate passive income. For each method, we’ll discuss how difficult it is to get started, how challenging it is to earn $100 per week, and how hard it is to maintain once it’s up and running. You’ll see that these factors vary across the different methods, so let’s jump right in!

First, what is passive income? Simply put, it’s money that isn’t directly tied to the amount of time you put in. It involves making an initial investment of time or money, after which it can generate income without needing much further effort from you. A great example would be writing a cookbook. Once you’ve written it, you can sell it over and over without having to rewrite it each time.

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Now, it’s essential to clear up some misconceptions. Passive income is not a magical “get-rich-quick” scheme. You still need to provide value to earn any kind of income, even passive. Often, we associate passive income with hustle culture—starting multiple businesses like Gary Vee or David Goggins—but I see it differently. For me, passive income is about diversification, which allows you to focus on other aspects of your life without relying on just one income stream. As with any form of income, passive or otherwise, there is always an initial investment of time or money to get it going.

With that clarified, let’s get started with one of the most popular passive income streams—investing, particularly in dividend stocks. This is one of the most straightforward ways to generate passive income, and I’m excited to break it down. For those who aren’t familiar, dividends are a portion of a company’s profits that are paid out to shareholders on a regular basis, typically quarterly. This money is paid to you without you having to sell your stocks, which is what makes it a truly passive income source.

However, as with any investment, making money requires choosing the right stocks. To get started, I recommend looking into companies known as “dividend kings.” These are companies that have increased their dividend payouts for 50 or more consecutive years. Even during economic downturns like the Great Recession or COVID-19, these companies remained committed to their investors by continuing to increase their dividends. That’s a sign of solid cash flow management and a company’s ability to withstand tough economic cycles.

After dividend kings, there are also “dividend aristocrats,” which have increased their payouts for at least 25 consecutive years. While high dividend payouts from newer companies may be tempting, I’d advise caution because they don’t have the same track record of consistency.

So, how difficult is it to get started with investing? I’d rate it 1 out of 5 in terms of difficulty. All you need to do is download an investment app, deposit some money, and buy stocks. I started investing at 14 with small amounts of birthday money, and over time, I’ve grown my investments. Whether you’re young or old, the saying holds: the best time to start investing was yesterday, but the second-best time is today.

Now, how hard is it to make $100 per week through dividend investing? This is where it gets interesting. Dividend yields are calculated annually. For example, if you want to earn $5,200 a year (or $100 per week) through dividends, and Target’s dividend yield is 3.05%, you’d need to invest around $171,749. So, I’d give this 5 out of 5 in terms of difficulty due to the large capital investment required. But any money earned from dividends is still better than none, and like a tree, it grows steadily over time. As for maintaining dividend stocks, it’s very passive once you’ve made your investments, requiring minimal ongoing effort.

Let’s move on to our second passive income stream—print-on-demand. This method is much more creative and fun. Print-on-demand allows you to sell custom merchandise like T-shirts, mugs, and posters without needing to hold inventory. The products are printed and shipped after the customer places an order, which minimizes risk. I’ve always wanted to create merch, but finding a good production partner and lacking storage space in my NYC apartment made it difficult—until print-on-demand came along.

Platforms like Gelato make the process simple by connecting you with over 140 production hubs worldwide. Whether your customer is in Australia or the U.S., Gelato will find the nearest print partner to produce and ship locally. It’s quick and efficient, making it a great option for passive income.

So, how difficult is it to start? I’d rate it 2 out of 5 because you need to create designs and set up your shop, but it’s relatively low-risk with minimal upfront investment. Difficulty in making $100 per week? It’s definitely achievable with good designs and a bit of effort, so I’d give this 2.5 out of 5. Finally, in terms of maintenance, it’s pretty passive once your designs are up, though you might want to add new products over time.

Next up is creating digital products. Whether it’s an ebook, a budgeting template, or an online course, digital products are fantastic because they involve low overhead and can be sold globally with virtually no additional cost after creation. They’re easy to update, and the profit margins can be high. The key to success here is providing value—whether that’s your expertise or a helpful tool.

Digital products can take some time and effort to create, but once they’re up, they can generate income indefinitely. If you have specialized knowledge or a unique skill set, creating a digital product is a fantastic way to share that value and earn passive income.

In summary, whether you’re investing in dividend stocks, selling custom merchandise, or creating digital products, there are many ways to generate passive income. Each method has its own challenges, but with the right approach, you can set yourself up for long-term success!

Transforming something that you are exceptionally good at into a tool that someone else can use is a powerful way to generate passive income. The difficulty to start this process is relatively low—I would give it one and a half Willies. Almost anyone with a phone or a laptop can do this, thanks to the digital nature of the process. The beauty of it being digital is that the initial barrier is minimal. However, the challenging part comes after you’ve created the tool: actually making something that’s worth buying and generating sales.

Without focusing on the $100 metric for a moment, let’s discuss the broader difficulty of making any money at all through digital products. For you to be successful, your digital product must be genuinely excellent because the market is highly competitive, with many products available, many of which are free. Your product needs to stand out in some way to attract buyers. When thinking about market entry, I usually consider whether your product is first, different, or better. These categories are not mutually exclusive. If your digital product is the first of its kind in the market, you have a first-mover advantage. If it’s different, perhaps by adding a personal spin or unique features, that sets it apart. Third, if it’s better—offering more value than existing products—that’s another way to stand out.

Assuming you’ve developed a digital product that is genuinely very good, making $100 per week is very achievable. Creators or those with an existing audience have a tailwind here because they likely already have some followers who would buy the product simply because it’s theirs, which in itself is valuable. For this reason, I would rate this category three and a half Willies. It’s not easy to create a high-quality digital product, but once you do, reaching the $100 per week mark is very doable.

In terms of maintaining the product, there is usually some upkeep involved, such as updating the product or monitoring sales to ensure everything runs smoothly, and perhaps handling some customer service. However, the hardest part—creating the product—is over once it’s out in the world. It then serves as a great passive income stream with little to no additional cost. It is certified passive, though with some light maintenance, so I’d classify it as “passive light” and give it two Willies. Also, if you’re finding this helpful, please give this video a thumbs up.

Next, let’s cover our fourth passive income stream: affiliate marketing. What is affiliate marketing? It’s income you can earn by promoting someone else’s product or service. Every time someone makes a purchase through your referral link, you earn a small commission. This is very passive income because all you need to do is generate the links, place them in descriptions, and the work is done. One of the most popular affiliate programs is Amazon Associates, and practically anyone with a social media account can sign up and start making those links.

I have some top-secret insider info from my YouTuber friends over the years, which we’re going to get into—some of it might be surprising. Starting with the difficulty to start: it’s extremely easy. Just sign up for an affiliate network like Amazon Associates or LTK, so I’d give this a one Willie—it’s really easy.

The difficulty to make $100 per week through affiliate marketing can vary greatly depending on your business model. I have friends who are making over $40,000 per month from affiliate revenue, and I’m sure many creators are making even more. Creators who focus on product reviews, like my friend Shervin who reviews health, fitness, and technology items, which are typically more expensive, can earn significant commissions. Expensive products often have their own affiliate programs, and lower-priced products can still add up through high volume, as seen in popular Instagram Reels or TikTok videos that showcase multiple Amazon finds. Even with a 1% conversion rate, the sheer number of views can lead to a substantial payday.

For creators focused on products, making $100 per week is much easier—so I’d rate this category three and a half Willies. However, if you’re like me and don’t focus on products but still include affiliate links in your descriptions for things you use, making $100 per week is more challenging. It requires either a large audience or high ticket items to make a real dent. For this reason, I’d give affiliate marketing a category of four Willies. Nonetheless, any creator should include affiliate links for products they use, but significant income is unlikely unless you’re product-focused.

Maintaining affiliate marketing is virtually effortless once the links are in place, so I’d rate it half a Willie for maintenance. You might need to update links or add new products over time, but generally, it’s certified passive.

Finally, saving the best for last, the fifth income stream, in my opinion, is starting a YouTube channel. Hear me out—setting aside my personal stake in YouTube, it is a beautiful business model that can generate substantial passive income. You might wonder how an actively running YouTube channel can be passive, and you’d be right to question that. Creating a new video requires effort, but the revenue generation is largely passive. All your videos, including old ones you haven’t touched since posting, will continue to generate ad revenue as long as they get views.

For example, one of my videos has generated over $119,000 from 5.8 million views, which isn’t a lot, but it demonstrates how old videos can provide passive income over time. Starting a YouTube channel is easy—you just need to open an account, film a video with your phone, and publish it. The barrier to entry is extremely low; you don’t need fancy equipment, just a computer or phone and an internet connection. I’d rate starting a YouTube channel two Willies—it’s easy to start.

Making $100 per week in YouTube ad revenue requires reaching certain milestones: you need 1,000 subscribers and 4,000 watch hours to become eligible for monetization. Once monetized, with an average RPM (revenue per thousand views) of around $2, you’d need 50,000 views in one week to make $100. However, if your content has a higher RPM, such as $8 to $10 for niches like personal finance or entrepreneurship, you’d need fewer views to reach the same goal. Using myself as a benchmark, I started making $100 per week when I had about 7,000 subscribers, so it is very doable. Thus, I’d rate making $100 per week through YouTube ad revenue at four and a half Willies due to the initial effort required to grow the channel and maintain high-quality content.

Maintaining a YouTube channel is relatively easier once it’s established. Think of kinetic friction versus static friction in physics: it’s harder to get something moving than to keep it moving. Similarly, once you have a catalog of great videos, they can continue to generate passive income with minimal maintenance—though you still need to hone your craft and upload new videos to keep the channel active. The income from old videos is certified passive, so I’d give maintenance a two Willies, considering you need to keep producing content to sustain the channel.

In summary, these five revenue streams vary in difficulty to start, make money, and maintain. However, they all allow you to diversify your income without trading too much of your time for money. These types of revenue streams are what I personally strive for in my life because they help me lead a more balanced life, which is a significant goal of mine.

Now, a question for you: If you made it this far, first, which of these five revenue streams are you most excited to start? Second, if you could automate one part of your life, what would it be? If you found this helpful, please give it a thumbs up and subscribe for free—it helps the channel a lot, and I really appreciate it. I also have more business and personal finance content coming soon that you won’t want to miss. But until next time, turtle out!

Oh, yo hi! I’m getting a thumbnail—do you like the pants? Yay!