Starting a journey to earn passive income from a side hustle can feel both exciting and daunting. The good news is that if teenagers can earn thousands online, so can you. However, it will take discipline to execute practical steps daily until you reach your goal.
You’ll first need to set financial goals and remain self-aware about your interests and skills. Next, you’ll choose passive income ideas that you’re most interested in. Where can you find quality passive income side hustle ideas? We’ve got you covered. Here, we list side hustle ideas that have the potential to generate passive income. Let’s dive in.
1. Identify Your Skills and Interests
Before you fall for any hype on the internet, take the time to evaluate your interests. Do you enjoy talking about Star Wars? Do you have a passion for managing your budget? These interests seem unrelated to passive income but will be important later.
Once you’ve narrowed down your interests, move on to the next step. If you’re having trouble finding your interests, pay attention to what shows you watch or where you spend your money. These are indicators of things you’re interested in.
2. Research Passive Income Ideas
First, let’s demystify what passive income is. Yes, passive income is passive, but not for most side hustle ideas. Most jobs aren’t passive—unless you’re investing in the stock market, and even then, you’ll have to do some research to ensure you’re investing your money properly.
Now that you have a general idea of passive income, choose how you’ll earn money. This shouldn’t be too challenging since you’ve already narrowed down your interests. You can opt for real estate investing, dividend stocks, or building a brand around your passion.
3. Market Research
Market research doesn’t have to take long or require complex analysis. Instead, see what’s already out there. It’s easy to see real estate investing as a viable side hustle since many people own rental properties. Places like BiggerPockets confirm this and may guide you in making your first real estate purchase.
If you’re passionate about Star Wars, see what podcasts are out there. If you see similar competitors on social media, this is a good sign that there’s some demand for your interest.
4. Develop a Business Plan
Like the previous step, you don’t have to make your business plan complex. Simply choose how you’ll launch your side hustle. If you’re investing in real estate, determine how you’ll save enough money to purchase your first property.
Similarly, if you launch a side hustle around your passion, determine how you’ll create content for your brand. Will you write a blog, start a podcast, or create videos?
5. Set Realistic Goals
It’s easy to fall in love with the idea of making lots of money online after reading about others who are successful. However, the reality is that this won’t be the case for you. It can, but it’s similar to hoping to win the NBA championship as a rookie player.
The opportunity to be successful with your side hustle is there, but you’ll need to practice and learn new skills. A great first goal is to get started. Seriously, many people quit before they even begin. It’s exciting to talk about a new side hustle idea, but it quickly fizzles out when people realize it takes hard work.
6. Start Small
Instead of aiming to publish one article a day, start with one per week. Even one per month is better than nothing. You’ll have 12 articles at the end of the year instead of zero. The goal with any side hustle should be consistency.
By starting small, you’ll increase your odds of success and won’t create a burden on your current work schedule.
7. Automate Processes
There’s a lot of hype around automation. Many large and small companies are adopting artificial intelligence and software to help them automate processes. However, you can do the same without overcomplicating this.
Instead of wasting time on repetitive tasks, figure out if you can leverage tools like Zappier or Trello to automate them. Trello allows you to automatically tag cards or send emails if a particular action takes place. Don’t Google for things to automate. Instead, repeatedly note what you currently do and determine if automation is a good fit.
8. Create Quality Content
Creating content is hard and will continue to get more challenging as more people create content online. Instead of being intimidated by this, know that you have the potential to create quality content. This is why being aware of topics you’re interested in is important.
Creating content on things you know well or have a passion for is easier. Additionally, choosing the right medium is important. This may be the best way to create content if you’re a decent writer. If you have no clue, try all three mediums: writing, voice, and video. Try each one for a few months and see which one you enjoy the most.
9. Establish an Online Presence
If you’re creating content daily, you’ll start to build authority. If you don’t, you’ll be irrelevant in today’s digital world. Instead of creating selfish content with the goal for people to purchase your service or product, focus on delivering value.
If you’re good at finding jobs, teach others how to polish their resumes and land high-paying careers. If you do, you’ll build trust and can eventually sell a product and service or onboard paying sponsors.
10. Don’t Optimize for SEO
Whether you use Google or other search engines, apply best practices for search engine optimization (SEO) but don’t optimize for SEO. Here’s what I mean: Create content that isn’t dependent on SEO. Even if you spend all that time and effort to rank first place, one day, you might lose your #1 spot.
This is more common than you think. Instead, create content that offers value to others and helps you generate attention on social media. You’ll build a following, which is better than manipulating your content to work for search engines.
11. Outsource Non-Core Tasks
At first, you’ll do everything, and this is okay. If you’re starting a podcast, you will record, edit, and publish each episode. It might take you longer at first, but eventually, you’ll pick up the pace and understand your end-to-end process well.
When you earn money, consider outsourcing tasks you don’t enjoy. You can outsource tasks like editing if you enjoy interviewing guests more. This way, you’ll have more time to do the things you enjoy the most.
12. Network and Partner
No matter which type of passive income you decide to pursue, you’ll most likely face challenges along the way. Instead of facing these challenges alone, build a strong support system. You don’t need a large network, but it should be reliable.
Your network may vary with people chasing similar goals or people you get along with due to other interests. However, if you have people to help you stay motivated, your odds of success increase.
13. Monitor and Adjust
Insanity is doing the same thing and expecting different results, at least according to Albert Einstein. Instead of blindly chasing passive income, take a moment to learn from your mistakes. It’s okay if your podcast or blog fails.
However, your next passive income idea will be much better if you learn from your mistakes. Try different angles and test different tactics. Eventually, you’ll figure out ways to earn some form of passive income.
14. Manage Finances Wisely
It doesn’t matter how much money you earn if you spend most of it poorly. This is why having a budget and sticking to it is crucial. If you set goals, you’ll be more likely to succeed because you’ll be motivated to achieve them.
Saving for a trip to Italy sounds much more enticing than saving for the sake of doing so. Eliminate any unnecessary expenses by reviewing your budget at least once a month.
15. Scale Gradually
Scaling isn’t always necessary, nor does it need to happen quickly. If you figure out how to earn a few hundred or thousand dollars passively, scaling will depend on your financial goals. If you’re making enough money, spending more money to scale your side hustle isn’t necessary.
If you scale too quickly, you’ll spend more effort and money than necessary. For example, it’s not wise to outsource podcast editing if you’re just starting off. You don’t know if you’ll stick with podcasting long-term and still don’t understand how it works. How will you know a process is working as intended if you barely understand it? Over time, you’ll gain a better understanding of your new side hustle and be able to make it work for you.