Manage Money

Best Online Passive Income Streams

Are there any passive income streams out there? 

Which is the most popular passive income idea?

Is passive income a dream?

How do you make a living with passive income?

Do these seem familiar? Are you asking these questions a lot?

If you still think passive income is a dream, or that it’s impossible to make a comfortable living out of it, you’re going to love this article!

We don’t just tell you some of the best and legit ways to generate a passive income, but also tell you how they work. Remember, these are battle-tested ways to create an income, sometimes without any investment whatsoever! If these have worked for others, why won’t these work for you? 

Without further ado, let’s read on.

What is passive income?

Passive income is income you get through work already done and through investments made. Such an income stream continues to make money for you, even when you sleep.

In comparison, active income is something you earn by working continuously. Passive income does not require ongoing work. 

However, to generate passive income, you still have to put in the effort and give in considerable time. It can take a lot of effort up-front. If you do it right, though, you will reach a point after which you’ll need to give little to no effort and time to keep generating income.

What are the best passive income generating ideas in 2021?

There are many ways to generate an income online. If you’re someone who wants to be location-independent, a passive income stream, or several of them, can work wonders for you!  All you need is a computer and a good internet connection.


Dropshipping is the action of managing an online retail store to sell items, and using a third-party supplier and perhaps even a dedicated delivery agent to fulfil orders. The difference with Dropshipping and managing your real life store is that you do not need to keep physical inventory. So how do you fulfil orders? You buy inventory as needed from wholesalers or manufacturers. 

The benefit with this model is that you do not need a lot of capital to get started. You don’t need to purchase products yourself. In practice, you are merely connecting the manufacturer or wholesaler and the customers. You get a big percentage of the transaction. There is no need to stock inventory and do other administrative functions. You don’t need to know how to create a website, nor do you have to code. All of these you can hire people for. Better yet, you can save a lot by getting ready-made e-commerce websites from sites like


If you have a hobby you want to write about, or have a hobby, you can start a blog and make good money out of it. A blog is short for web blog. It is an informational website or even an online journal showing the info you put in. The latest posts appear near the top of your websites, and the older ones below. Even better, readers can comment on your posts. You follow up with such comments, keep on giving fantastic posts, create a strong following, and make money in due time. 

As to how your blog can generate money, it can do so in several ways. You can do affiliate marketing, display advertisements, and even sell your own digital products. If you want to go the display ads road, you’ll have to have strong SEO skills yourself, or hire one who does. Once related companies see that your blog is getting traffic consistently, they may come to partner with you.

Once related companies see that your blog is getting traffic consistently, they may come to partner with you.

To start a blog, you need to think about a niche, a blogging platform, a domain name, a hosting service and minimal to no design skills. 

Digital courses

You can make serious money out of this one. We all have considerable knowledge about something or the other. It can be how to play a sport, how to do coding, how to do business, how to be happy in old age, and so on. You may not know it, but people are actually looking to get help in these things, and they’re willing to give good money in return. This is where you come in. If you can give them digital courses or online training on the things they want to know more of, or to get better at, you can earn a lot. And this is passive income. Make the training once, and watch it earn you money on autopilot. However, this can be expensive upfront since you have to record and develop the course. 


These can earn you passive income too. If you are skilled in something, let’s say in personal finance, your advice can matter to a lot of people who’ll pay good money for it. And once you start getting positive reviews on your ebook, you can start charging even more!

Digital downloads

These are pretty useful as they offer a quick solution to a problem your target audience is having. This is not an e-book, but is a separate product which can still add value to your customers. These can be as simple as something as an excel sheet to develop a budget plan, printable checklist on SEOB and content best practices, social media templates and much more. To make this type of product, you’ll need to do a lot of market research. Only when you know what the customer is looking for and at what price, can you give them that. 

Affiliate marketing

You can earn a lot from affiliate marketing when you do it right. Remember this is not a quick solution if you need money fast. It takes time, but can earn you serious money, even on autopilot much like blogging. In affiliate marketing, you promote a product or service. These can be your own, or others, in which case you’ll get a nice commission each time there’s a sale. There are places where you can promote affiliate links like social media, YouTube, blog, podcast, email marketing, and more. You’ll also need to pick a good affiliate marketing platform. Authenticity and trust matters a lot in this business. Selling bad quality things can spoil your reputation, and no one will buy from you. But create a reputation of selling high quality things, and people will come to you themselves in time.

Real estate investing

It costs a lot, and takes considerable time and investment, but it can give you a passive income greater than all the rest combined. However, you also need to know a lot about the real estate world, and your local real estate as well. Remember, there are many types of properties in which you can invest. 

Investing in the stock market

This is one of the easiest options since you don’t need to do anything, but you do need to have a sound knowledge about the stock market itself. You earn from capital gains, compound interest and dividends over time.


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