22 best passive income ideas you should start in 2021


Earning passive income is the ultimate goal for any prospective hustler.

Warren Buffet one of the richest men of our times once said “If you don’t learn how to make money while you sleep, you will have to work till you die”

Earning 100K a month with a 9-5 job is wonderful. But you truly can’t ensure financial freedom and live a life of independence if you don’t learn how to create passive income.

What is passive income?

This is quite a controversial topic.

With all the hype behind terms like “leaving the rat race” and “quitting the worker’s mentality”, passive income has become quite the buzzword.

Among everything I believe that the people have been extremely misguided

There’s no true passive income source (other than rental income from property).

So is passive income just another pipe dream fake digital gurus use to bait you into buying their thousand $ courses?

Not quite

passive income ideas

Passive income exists but you need to put a ridiculous amount of work into it if you wish to earn something significant.

In order to achieve financial success, you need to be willing to invest yourself in the process.

So, what really is passive income?

For me, passive income is any income that isn’t directly proportional to your time. Unlike a job or gig, the income that you earn isn’t directly dependant on the amount of time that you put into it.

So in today’s comprehensive article, I’ll highlight so of the best ways to earn money online passively. I’ll explain how you can set each up and what advantages and disadvantages each of these possess.

So these are the 22 best passive income ideas that you can implement in the year 2021. I’ve specifically chosen these since they have proved to bring massive results for people in recent years. Keep in mind that in order to achieve these results you must be ready to put in consistent effort.

So let’s get started

30 passive income ideas for 2021:

1. Drop-servicing:

Drop-servicing is an extremely lucrative online business model that allows you to earn money by reselling services.

Here’s an illustration by Dropservicing Academy about how the drop-servicing business model works.

22 best passive income ideas you should start in 2021
Source: https://medium.com/@dropservicingacademy/how-to-find-your-niche-and-dominate-when-starting-your-dropservicing-business-37c470f2103f

Basically, the middleman (Yourself) has to squeeze an order with high ticket clients and outsource the heavy lifting to lower level freelancers. The reward for you is that you get to keep the split difference from the transaction.

The only real problem with this method is that it requires constant surveillance and moderation but after a certain amount of effort you can reap the rewards

These are some of the best websites to use for drop servicing:

  1. Fiverr
  2. Upwork
  3. PeoplePerHour
  4. Freelancer

2. Start a blog:

22 best passive income ideas you should start in 2021

Blogging is extremely profitable and rewarding even though it is one of the toughest fields to get successful in.

Though the idea of starting a blog might seem like a mammoth task, if you are willing to put in the work you will reap the rewards.

Also, don’t worry about choosing a topic to write about(As long as there are 5 billion people actively browsing the web) you will never lack an audience.

If you want to start a blog consider checking out this tutorial on how to start a blog in 2021.

  1. Extremely scalabe and rewarding in the long run
  2. Best passive income sources in recent years
  3. Makes money on autopilot after a certain point
  4. Works as a promotional source for future endevours
  1. It’s extremely hard to get noticed as a beginner blogger
  2. Extremely tough competition (Depends on niche)
  3. You can’t get organic traffic without having a strong profile
  4. Steep learning curve

3. Instagram Sponsored Posts

Instagram has 1 billion monthly active users.

500 million of those users are engaging daily on the platform. This makes Instagram a hub of potential for advertisement.

You can monetize your Instagram following to gain a ton of money passively.

How much money can we earn with sponsored posts exactly?

According to athomewithashley this is the pay rate you can charge according to the like engagement you can generate:

Instagram Post engagementThe rate for 1 Instagram post
0-100 likes125$
100-500 likes200$
500-1000 likes350$
1000-1500 likes500$
1500-2000 likes700$
2000-2500 likes850$
2500-3000 likes1000$
Source: https://athomewithashley.com/instagram-sponsored-post-cost/

You can easily distinguish an Instagram sponsored post by checking for the “Paid Partnership” Mark above the image.

22 best passive income ideas you should start in 2021

4. Start a patreon account:

22 best passive income ideas you should start in 2021

Patreon is a membership-based website that allows users to sign-up for paid memberships in return for access to exclusive content.

Popular YouTubers, social media influencers, and independent content creators use Patreon in order to earn a stable and recurring income. Memberships can start from 1$ per month, you can also create multiple tiers of memberships for different price points.

Jeff Wittek a popular YouTuber earns more than 100,000$ per month through Patreon earnings alone.

If you wish to garner a lot of Patreon supporters you need to create content first and then bait potential Patreons with exclusive member-only content.

5. Start an only fans:

22 best passive income ideas you should start in 2021

Now I know you might be looking at me with their eyebrows raised. But hear me out for a second. Onlyfans can be used for productive purposes despite the bad rep that it gets.

Content creators and Social media influencers alike can start an Onlyfans and avail themselves of a reliable and recurring source of income.

6. Promote affiliate products:

affiliate marketing

Especially the affiliate products that provide recurring commissions. These products will bring you commissions until your referral remains an active paying customer.

Products with recurring commissions are extremely rewarding in the long run. There are several cases of bloggers earning in the excess of 10-20k $ a month just through affiliate commissions.

Here is a list of extremely lucrative affiliate programs that have helped me earn more than 2000$ in commissions.

7. Automated shopify dropshipping:

Shopify dropshipping is quite the rage in today’s time, and with good reason.

It is not every day that we across opportunities for money-making opportunities as lucrative as starting your own e-commerce store.

The Oberlo and Spocket

If you need help setting up a Shopify store consider checking out these freelancers who would help set your very own Shopify brand for an extremely low price:

If you already have a Shopify store and are struggling to get sales then read this article about 7 extremely helpful Shopify apps that help boost sales.

8. Sell digital products:

earn money from your blog

Selling digital products is an incredible way to earn money in 2021.

You can use the Easy digital downloads plugin to create an online digital product marketplace on WordPress. A full guide on how to do the same is available here.

When you sell digital products you do not have to be concerned about shipping, delivery, or inventory management.

You can also start a Hosting Reseller business where you can promote quality hosting companies

9. Rent a room on Airbnb:

Got an apartment or house? Rent it on Airbnb to make an extra thousand.

Airbnb pays much better than normal renting income

Registering on Airbnb is extremely easy

10. Amazon FBA:

If you have a stock of useful products

Amazon takes care of all the heavy lifting

  1. You require an inventory of suitable products
  2. Amazon FBA has a stiff competition

11. Create a course:

In this era of information-technology selling, courses is the new big thing in town.

If you know a skill then you could share it with the world to earn some passive income.

Udemy, Skillshare, Udacity, and Edureka are some amazing websites that where you could list your course on.

Three of Udemy’s top instructors earn as such:

  • Rob Percival’s courses have reached nearly 120,000 students and exceeded $2.8 million in total earnings.
  • Victor Bastos has reached more than 52,000 Udemy students with his courses, which have earned nearly $900,000.
  • Alun Hill’s courses have been accessed by nearly 47,000 Udemy students and have earned about $650,000.

12. Start a Podcast:

Podcasting is all the rage at this point in time.

It’s extremely easy to make quality content as a podcaster. Since most content involves casual conversation.

13. Dividend Stocks:

Dividend stocks are companies that pay out regular dividends. A dividend basically is the amount of money that an investor receives in return for his contribution to the company.

Buying dividend stocks is extremely appealing to investors who want to invest in low-risk.

14. Flip shopify stores:

Like to create Shopify stores? If so, did you know that you could make passive income selling them? 

Because of the popularity that dropshipping has gained over the last few decades well-designed Shopify stores are in huge demand.

A well-coded and aesthetically inclined Shopify design could fetch you Thousands of dollars in the online space.

Though having a well-designed isn’t enough, you would quite possibly need to convert some sales in order to gain traction and end up making a substantial amount of money. If you’re looking for a place to sell your website, you could try out Shopify’s Exchange Marketplace

You could eventually automate this process by hiring a team of designers to create custom designs for you.

15. Write an E-book:

The E-book’s popularity has skyrocketed in recent years. Sure it is an extremely competitive

Publishing an e-book nowadays is more profitable than publishing a physical book. For one, you can save a lot of money that you would otherwise need for printing physical books.

With the advent of Audible

16. Create an audio track:

This one is for the musically inclined ones. If you know how to play instruments and create beats then you can sell these beats to royalty music websites.

These websites sell said tracks to people for

17. Flip business websites

low competition freelance websites

Flipping websites is like flipping houses” that’s what I heard a great man say.

18. Start a BuymeaCoffee

How to add a donation button to your blog

If Patreon is not the platform for you consider leaning to Buymeacoffee which happens to be one of the biggest Patreon alternatives out in the market.

The membership platform charges a much lower commission as compared to Patreon and has been recognized as one of the best membership platforms for online content creators.

You can add

19. Start a service based website

low competition freelance websites

Service-based websites and widely popular across the world. Fiverr and Upwork are valued to be in billions.

Take advantage of this situation to start a service website of your own.

With only 50 recurring customers you can earn in the excess of 2,000$ a month through this business model.

20. License photos through Shutterstcok

If you are a photographer/ cinematographer you can advantage

21. Start a Print on demand business

Websites like Printify make it extremely easy for people to start an online print-on-demand business.

22. Design T-shirt on Teespring

You can design custom t-shirts on tee-spring and in case people decide to purchase a t-shirt with your design


You can all of these techniques should be used in conjunction with each other to get more enhanced results. I like

So those were 30 passive income ideas you should start in 2021 if you liked the suggestions be sure to let us know in the comment section.

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Affiliate Disclosure: This article contains affiliate links, if you make a purchase through any of these links we might earn a small commission at no extra cost to you. Read full disclosure here.

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Phil Joseph
Part-time blogger, freelancer, and student. The go-to guy for any advice related to digital marketing and CMS web design.
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