One of the economic hallmarks of President Trump’s previous term was the explosive growth of entrepreneurism and new businesses creation. The current tax cuts being proposed, along with major investment for new manufacturing and other businesses, looks likely to…
One of the economic hallmarks of President Trump’s previous term was the explosive growth of entrepreneurism and new businesses creation. The current tax cuts being proposed, along with major investment for new manufacturing and other businesses, looks likely to spark another wave of small business growth as well.
Small businesses and side hustles can be an excellent way to generate supplemental income. However, there is a difference between those that are active, as opposed to ones that are passive. Active small businesses or side hustles involve one to actively be involved in that activity on a regular basis. Some examples would include:
Multi-level marketing product sales
Dog-walking and/or pet care services
Buying and Selling collectibles (trading cards, comic books, musical instruments, sneakers, et al.) via eBay or other outlets, including physical sales.
Passive small businesses, on the other hand, usually require an initial investment of money and effort to establish the business platform. Once this is accomplished, minimal to zero follow up work is required, apart from maintenance and monitoring, or adding items for growing the platform. The following are passive income ideas that might appeal to different individuals depending on their resources, interests, and demographics. The time it takes to set up these businesses can take a matter of minutes online to days or weeks, depending on the individual’s knowledge and preparation abilities.
High Yield Savings Accounts
24/7 Wall Street has posted numerous articles about High Yield Savings Accounts (HYSA). Operating similarly to normal savings and checking accounts, High Yield Savings Accounts are FDIC insured for up to $250,000 and offer yields of between 3.50%-4.70% APY at the time of this writing. This is 10X the average US financial institution APY rate of 0.41%.
Blogging
For those who enjoy writing and can articulate their opinions and viewpoints in written form, blogging is an activity that can create income. Selling subscriptions once sufficient readership numbers can warrant it, is one avenue; selling ad space for online marketing to Google AdSense, Amazon Associates, Sponsored Ads, and other advertising is another.
Creating Templates
People who have developed skills working on particular software can create templates for specific applications that make it easier and more efficient for others with less experience or who don’t want to expend the time to create their own. These are especially prevalent in specialized industries, such as in video editing, music production, engineering, etc.
Creating Worksheets
DIY businesses, such as those on Etsy, eBay, and others, often need worksheets in both digital and printed form for inventory management, invoicing, labeling, and other functions. People who have created applicable worksheets for these and other types of businesses can make them available for download sales on numerous sites.
On-Demand Merchandise Printing
Graphic designers who create logos and other original images for both their proprietary brand as well as on an on-demand customization basis, can make them available on merchandising without the need to keep inventory. Digital technology now allows one to have their designs printed by third parties on T-shirts, baseball caps, mugs, tote bags, and other merchandise on a per order basis.
Creating a Digital App
For those with programming skills, creating apps can be a very lucrative passive income activity. Developers who are able to create apps for a wide variety of tasks can sell them on Google Play or the Apple App Store.
YouTube Channel
Creative video producers can develop sizable followings via YouTube. Many popular podcasts, such as “The Joe Rogan Show” were launched with video content on YouTube before migrating to Spotify, Amazon Prime, and other platforms. Additionally, the hit Netflix series, “Cobra Kai”, which was a spin-off from The Karate Kid movie franchise, got its start on YouTube as a proof of concept. YouTube’s payouts to content creators is admittedly small and takes hundreds of thousands of views to generate sizable income, but options like the YouTube Partner Program can access ad revenues, merchandising, and other opportunities through YouTube.
Selling Stock Photos
For those with an eye for photography, selling their best shots as stock photos to Shutterstock, Getty Images, Pexels, and other stock image companies can be not only a passive income revenue avenue, but accompanying photo credit would market their names as photographers that can establish a reputation if specializing on a particular subject.
Online Shopping Rewards
If one has seen any of the recent humorous Kevin Hart ads for Chase Bank on its cash back awards, this is a minimal form of passive income based on preferential use of a particular account for online purchases. With rewards based on activity, it is essentially an incentivization plan. However, if one is planning to spend anyway, the cash back award amounts to a net discount on each purchase.
Car Advertising
Car owners who don’t mind transforming their vehicles into mobile billboards can generate passive income for placing ads on their cars. Called “car wrapping”, companies such as Carvertise and Nickelytics may pay car owners anywhere from $100 to $500 per month just for driving around.
Online Courses
People who have unique skills or who have experience teaching can publish an online course. The upfront work can be intensive, and video lessons, which involve camera work and editing, are the types that are most popular. That said, online courses can be quite lucrative, and depending on the subject, can even create celebrities. For example, previously obscure guitarists like Rick Beato and Greg Koch have become celebrities from their online courses, which have led to spin off podcasts, and other passive income opportunities. YouTube can be a good way to promote the online course, as well as cross market additional courses, books, merchandise, and other affiliated items.
Amazon Hub Lockers
The popularity of Amazon Prime has soared, in no small part, to its mastery over logistics. Amazon Prime members receive excellent delivery service for their orders, and Amazon even hires its own local delivery personnel and warehousing hubs to facilitate efficient and swift package drop offs. However, there are substantial Amazon Prime members who prefer picking up packages at a pickup depot out of fears of unmonitored premises theft or other reasons. People who already own a business in a physical space, be it for retail, repair services, or other activities, can earn extra income by establishing an Amazon Hub Space in their business locations for package pick ups. Amazon supplies lockers and their delivery people distribute the packages to the lockers, while Amazon Prime emails the recipients when and where their packages can be picked up. The added plus is that it can amount to free advertising for the business hosting the Amazon Hub, since package recipients may previously be unaware of the business or its services and products when they visit.
Passive income, when exceeding $2,500 in 2025, falls over the threshold trigger for required reporting to the Internal Revenue Service. That said, since passive income is generally lumped into 1099 income, any associated tax deductions that qualify for a side business that might generate the extra income can be justified. That’s a helpful entrepreneurial tip to bear in mind.
After 15 years on Wall Street with 7 of them as Director of Corporate and Municipal Bond Trading for a NYSE member firm, I started my own project and corporate finance consultancy. Much of the work involves writing business plans, presentations, white papers and marketing materials for companies seeking budgetary allocations for spinoffs and new initiatives or for raising capital for expansion or startup companies and entrepreneurs. On financial topics, I have been published under my own byline at The Motley Fool, 247wallst.com, DealFlow Events’ Healthcare Services Investment Newsletter and The Microcap Newsletter, among others. Additionally, I have done freelance ghostwriting writing and editing for several financial websites, such as Seeking Alpha and Shmoop Financial. I have also written and been published on a variety of other topics from music, audiophile sound and film to musical instrument history, martial arts, and current events. Publications include Copper Magazine, Fidelity (Germany), Blasting News, Inside Kung-Fu, and other periodicals.
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