Running a business is hard work! You dedicate most of your waking life to it, and 80% of the time, it fails. Why do so many talented people fail? It's because they don't use the power of passive income to build wealth by working smarter instead of harder. We’ve made your search for the perfect passive income stream easy by narrowing the list to the top 41 ideas. We’ve even got lesser-known passive income ideas (who knew you could create and sell Alexa skills?) and work-from-home options that’ll bring in $10K+ a month (just by creating digital files!).   We’ll also map out a plan for getting your business started so you can start earning passive income right away.  [su_note note_color="#dbeafc"] Get ready to find out:

1. What is passive income?
2. How to earn passive income
3. Passive income ideas that can make millions
4. How to create a passive income stream
5. How to generate passive income: a case study

Click any of the above text to jump to that section of the article. [/su_note] Let's dive in!

What is Passive Income?

The Internal Revenue Service (IRS) defines passive income as income that meets two standards:

1. You don't actively work to earn the revenue.
2. You are paid regularly.

Remember to read IRS Publication 925 to learn about the tax treatment when you earn passive income.

How to Earn Passive Income

According to Graham Cochrane, whose blogs and courses are raking in more than $1M each year, the process for earning passive income is quite simple. Here are the steps to succeed:

1. Explore passive income stream ideas
2. Perform market research
3. Create a customer avatar
4. Build the system
5. Create content or ads
6. Gather emails
7. Convert followers to customers

We'll look at steps 2-7 a bit later. First, let's check out 41 great passive income ideas!

Passive Income Stream Ideas

There are a lot of ways to generate passive income, but here’s Graham’s method: [su_quote]Find the intersection of what you love and can make money on. It will never dry up.[/su_quote] He also explained that automation plays a huge role in generating passive income, so you'll want to consider that in your decision-making process. In addition, you might want to consider whether you have the starting capital to create a passive income stream. Don't worry if you don't have a lot of money left over from your active income. You can start generating passive income with an initial investment of $50 or less.

What do passive income ideas require?

As you consider each idea, you'll want to weigh the following factors:

• Upfront time investment
• Upfront investment funds
• Potential for income

Keep reading for 41 passive income ideas. WARNING: The passive income investments mentioned in this blog are meant to be ideas only. We are not financial advisors, nor are we providing financial advice. Always make sure to consult with a licensed financial advisor and do your own research before making any monetary investment.

#1: Single-Family Rental Properties

[su_note note_color="#dbeafc"] Upfront time investment: Medium to High Upfront financial investment: $100,000+ if investing independently Passive income potential: High ($10K+ per month) [/su_note] Real estate investing is a great source of cash flow and wealth building. It is the number one source of wealth building in the United States according to the Census Bureau. Find out how Mike Andes approaches rental properties in our interview below. [su_youtube url="https://youtu.be/AXeqIxPVn6A"] Emma Powell has turned real estate investing into a 100% passive income stream, and shared her advice on getting started in an UpFlip podcast interview. You'll need to hire a property management team if you want cash flow without managing the property. Make sure you aim for 10%+ annual returns on investment. Pros:

• Builds long-term wealth along with short-term rental income
• Very high-income potential if you invest in multiple properties
• Potential for a 100% passive income once your business is established

Cons:

• Large initial investment if you’re buying properties
• You need employees from the start to make it truly passive

#2: Dividend Stocks

[su_note note_color="#dbeafc"] Upfront time investment: Low Upfront financial investment: Your choice Passive income potential: 10%-15% of investment [/su_note] Many publicly held companies pay dividends on a quarterly, monthly, or annual basis. These dividend stocks can create passive income that increases the longer you hold them. If you use a brokerage account that offers a dividend reinvestment plan (DRIP), you can increase your:

• Passive Income: Through routine payouts
• Asset Value: If the stock price goes up, your net worth goes up. Historically, the stock market has increased by 10% per year. That means stocks tend to double in value every seven years.
• Number of Shares: Every time you get a dividend, a DRIP reinvests that income into the dividend stocks, which earns you more passive income.

You can set these on autopilot by scheduling recurring payments to help you grow wealth much faster. I use TD Ameritrade, but there are plenty of other brokerage services. More than 1,000 dividend stocks are paying more than 5% in annual returns. I'd stay away from the ones paying 50% or more because they are high risk. Pros:

• You don’t need tons of money to start
• 100% passive using a brokerage service
• Low risk compared to other investment options

Cons:

• Long-term investment that won’t bring immediate returns

#3: Real Estate Investment Trusts (REITs)

[su_note note_color="#dbeafc"] Upfront time investment: Low Upfront financial investment: $1,000-$25,000 Passive income potential: 10%-15% of investment [/su_note] You can buy real estate investment trusts to generate passive income. REITs invest in real estate and earn money from rental income. They then pass the gains on to the investors. You can buy REITs as stocks or use private equity. Publicly available stocks tend to pay investors less but have the advantage of being more liquid than private equity investments. We filtered the available TD Ameritrade dividend stocks down to monthly dividends because this is the easiest way to identify REITs in their system. Here are the top monthly dividends on TD Ameritrade: Pros:

• More liquid than other real estate investments
• Completely passive income with a low up-front time commitment
• Affordable way to get into real estate investing

Cons:

• Your investment could be affected by real estate market trends and interest rate changes
• Can take a long time to see significant returns

#4: Custom-Designed Products

[su_note note_color="#dbeafc"] Upfront time investment: High Upfront financial investment: $500-$50,000 Passive income potential: High ($50K+ per month) [/su_note] You can start an e-commerce store with dropshipping or print-on-demand options to earn passive income. The initial investment is essentially free, but you need to have the money for advertising, the initial cost of the products, and the monthly software costs. Find out how to get started in ecommerce. Custom apparel is a popular niche for print-on-demand passive income businesses, and one with a high revenue potential. 1-800-Tshirts, for example, brings in $500K every month. You can hear how founder Tom Rauen started and his advice for growing a t-shirt printing business in this interview.  Kerry Egeler founded Shirt School as a resource for online t-shirt printing business owners, so that’s a great site to check out if you want to explore this option (hear our interview with Kerry). Etsy is a popular store platform for custom designed products. That’s where Vlad Kuksenko sells his custom pet tags and collars. Hear advice on how to get started on Etsy in Vlad’s podcast and YouTube interviews.  Heather Johnson chose Etsy for her print-on-demand business, too, which she started as a side hustle in 2020 and has grown to revenue of $15,000+ a month (listen to our interview with Heather). Pros:

• High income potential
• Start earning income as soon as your store opens
• Excellent option for creative entrepreneurs and designers

Cons:

• Building a customer base can require a high initial time commitment

#5: Bonds and Bond Index Funds

[su_note note_color="#dbeafc"] Upfront time investment: Low Upfront financial investment: $25-$10,000 Passive income potential: 4%-7% of investment [/su_note] Bonds are a way to lend money. A company or government asks for an upfront investment and agrees to pay you back more than you lent them. The payment terms will vary based on the amount borrowed, the duration, and the borrower's creditworthiness. The gold standard of bonds are purchased from U.S. Treasury Direct. Pros:

• Very low risk investment
• Funds can be reinvested to increase earnings over time
• 100% passive

Cons:

• You don’t see any earnings until the bond matures
• Interest rates are locked at the rate from when you bought the bond (even if they go up later)

#6: High-Yield Savings Accounts and Money Market Funds

[su_note note_color="#dbeafc"] Upfront time investment: Low Upfront financial investment: Your choice Passive income potential: 0.15%-5% of investment [/su_note] These accounts are offered by legacy and online banks and give customers higher interest rates than you would normally receive. (None of the earning rates beat inflation, though. The best current high-yield savings account earns 3.5% APY, which means you're still losing money after calculating inflation.) Money market accounts are currently earning 4.45% annually. You can find them by unchecking the savings account box in the link above. While these are highly liquid, they don’t generate enough passive income to satisfy my expectations of growing wealth. Pros:

• Minimal risk
• Easy to set up and manage
• Low minimum investment with few to no fees
• Wide variety of online banking options to choose from

Cons:

• Lower return than other investment options

#7: Peer-To-Peer (P2P) Lending

[su_note note_color="#dbeafc"] Upfront time investment: Low Upfront financial investment: $25 minimum Passive income potential: 6.46%-17.74% of investment [/su_note] If you just want to earn some passive income on your existing cash, peer-to-peer lending can give you great returns. The lending agreements you fund at Lending Club provide interest rates of up to 17.74%. Take note that higher earnings come with higher risks (borrowers with lower credit scores), so it might not be the best idea to go straight for the 17.74% interest rates because Lending Club takes 30% of the loan for themselves if they have to pursue collection. Pros:

• Easy to invest through a P2P platform
• Low ongoing time commitment
• Borrowers are vetted through the platform

Cons:

• Higher interest rates carry more risk
• No collateral on loans

#8: Create an Online Course

[su_note note_color="#dbeafc"] Upfront time investment: High Upfront financial investment: Low ($150-$300/month) Passive income potential: Medium-High ($500-$10K+ per month) [/su_note] An online course is one of the most profitable and popular passive income ideas. When Graham Cochrane lost his job, he expected to make money mixing music, but he quickly found that people were more interested in learning how to do it themselves and were willing to pay to learn those skills. Graham created a course that made over a million dollars—without ever updating it.  Jacques Hopkins of Piano in 21 Days saw similar success with his online course, starting off with a budget of around $150 a month and growing to a $40,000 a month revenue, about 50% of which is profit (listen to our interview with Jacques to hear more of his advice and story). Today's environment is more competitive, but it's still one of the best ways to make passive income in 2024. Pros:

• Easy to publish and market your course through an online course platform
• 100% passive income once the course is published
• Income is scalable with high profit margins

Cons:

• High initial time commitment if you’re writing the course yourself
• Course platforms charge fees that can cut into your profits

#9: Student Income-Share Agreements (ISAS)

[su_note note_color="#dbeafc"] Upfront time investment: Low Upfront financial investment: $5,000 minimum Passive income potential: 12% of investment [/su_note] If you are an accredited investor, you can invest in the future by helping promising students go to college. Loan them money, wait a year, then earn interest by getting a percentage of their future income. You can use sites like these to get started:

• Edly
• Meratas (Form your own ISAS)

Pros:

• 100% passive once you’ve invested
• Get monthly payouts after the first year
• Shorter duration than other investment options

Cons:

• Can lose your investment if the borrower defaults
• Fees are relatively high (up to 4% on investment plus 5% of cash flows)

#10: Invest in Digital Assets (Crypto/NFTs)

[su_note note_color="#dbeafc"] Upfront time investment: Low Upfront financial investment: Your choice Passive income potential: up to 20% of investment [/su_note] This section is solely the opinion of the author and does not represent the beliefs of UpFlip, its owners, or any other members of the team. Personally, I enjoy the crypto and NFT markets for high liquidity and income generation. They are highly volatile, which means you can trade them for quick 20% gains, but you can also hold them or provide the resources to operate the network. The safest of these investments to invest in are BTC and ETH, but both have been known to skyrocket or plummet more than 20% in a day.  If you invest in any crypto, understand that you do so at your own risk. These investments are unregulated, and you are effectively going into private equity without the regulatory environment that protects accredited investors. That said, my personal favorite projects are:

• Presearch: This privacy search engine is beta testing ChatGPT, has more than 75,000 independent node operators, and acts as a search engine aggregator (It’s my secret weapon for blogs). They also offer advertising opportunities that cost as little as $6 per month. The returns vary based on the pricing, but my assets have quadrupled since 2021.
• Vaporfi: The team at VaporFi has a loyalty rewards program called Stratosphere that partners with crypto projects and business owners to provide members rewards for interacting with their partners. They also run a decentralized exchange and a residual income project, and they have a lot of other cool projects in the pipeline. I currently hold 50 times the assets within their products compared to when I started and have gotten residual income greater than my initial investment.
• Avalanche: VaporFi operates on the Avalanche network which has deals with AWS and Alibaba to launch validators. The validators process the transactions on the Avalanche network. The staking rewards are currently 8.54% per year.

If you want to learn more about crypto, I suggest starting at Coin Market Cap’s Crypto Glossary. Pros:

• Can potentially see high returns very quickly
• High long-term growth potential 
• Low time commitment to make and manage your investment

Cons:

• High volatility means higher risk of losses

#11: Sell Stock Photos

[su_note note_color="#dbeafc"] Upfront time investment: Medium Upfront financial investment: Low to none Passive income potential: 15%-45% of sales ($.05-$.25 per image per month on average) [/su_note] If you love photography but want to avoid taking on clients, stock photos might be your answer. Stock photos are used by businesses for marketing purposes. You take pictures of in-demand products and post them on the site with keywords that describe them. Then companies pay to use them. There are a variety of sites that you can use to earn a passive income stream, but Getty Images is the leader in this market. You can earn up to 45% on each image used, which converts to $.015 and up. Other stock photo websites have different rates, but Getty sells approximately $1 billion of stock photos, graphics, and videos each year. Pros:

• Excellent way for creative entrepreneurs to make money with their passion
• 100% passive after images are taken and uploaded
• Easy to scale your income by adding more photos
• No need to find or communicate with clients directly

Cons:

• Images need a lot of downloads to earn higher royalty rates
• Earnings are low if images don’t sell

#12: Write an E-Book

[su_note note_color="#dbeafc"] Upfront time investment: High Upfront financial investment: $0 Passive income potential: 35%-70% royalties [/su_note] E-books are another great way you can make a passive income from your upfront time investment. Publishing has always been challenging, but now tools like AI copywriters and Audible make it where you can get in front of billions of potential customers without printing a single page. Graham told us: [su_quote]I wrote a book called How to Get Paid for What You Know.[/su_quote] Download it on Audible for more advice on how to earn a passive income from e-books and online courses. Pros:

• Faster and easier than traditional book publishing
• Requires no financial investment
• Establishes you as a thought leader and helps to build a personal brand

Cons:

• Significant upfront time commitment
• May need to invest lots of time in marketing if you don’t already have a following

#13: Create an Affiliate Marketing Business

[su_note note_color="#dbeafc"] Upfront time investment: Medium Upfront financial investment: Low ($50-$500) Passive income potential: $1,000-$100K+ per month [/su_note] Another way to create a passive income is to create an affiliate marketing business. You can easily get links for most software companies and start adding passive income streams by reviewing the software you use everyday.You'll be adding value for the people following you while you gain passive income.  Many affiliate programs can make thousands or millions from a few hours of work. Check out some of the best affiliate programs of 2024 or listen to our interview with Matt Diggity to learn more about affiliate marketing. Pros:

• Completely passive once you’re set up
• Wide variety of affiliate programs to choose from
• Make money recommending products and services you use and enjoy
• Low to no initial financial investment required

Cons:

• Need a website with high traffic to earn reliable income

#14: Music Licensing

[su_note note_color="#dbeafc"] Upfront time investment: High Upfront financial investment: $0 Passive income potential: 40%-60% of streaming revenue [/su_note] If you're a musician or want to help musicians earn a living, you can earn a passive income from licensing your music to movies, streaming services, and businesses. You get paid every time someone plays the song. You can find out how to make passive income online through different streaming platforms. Pros:

• Steady long-term source of passive income
• Build a following and gain exposure while earning royalties
• Variety of streaming platforms to choose from
• No financial investment required to get started

Cons:

• Risk of your songs being pirated or copied

#15: Create a Blog or YouTube Channel

[su_note note_color="#dbeafc"] Upfront time investment: High Upfront financial investment: $0 Passive income potential: $800-$1,400 per month [/su_note] Blogging and YouTube channels are passive income ideas that require similar skill sets. You'll need to provide useful information, optimize it for search results, and share it. Sure, the equipment is different, but either option can make you a ton of extra money. It’s quite easy to create a YouTube channel. Pros:

• Easy to monetize by integrating ads and affiliate links
• Fun way to profit from your areas of expertise
• Doesn’t take any money to get started

Cons:

• Creating the content can be time-consuming
• It will likely take some time to grow your following before you see significant income

#16: Rent Out Useful Household Items

[su_note note_color="#dbeafc"] Upfront time investment: Low Upfront financial investment: $0 Passive income potential: Medium (up to $4,000 per month) [/su_note] If you have tools or other useful household items, you can rent them out to other people using a variety of sites. Check out sidehusl’s blog for a list of sites to rent specific items. Pros:

• Make money from items you already own
• Easy to get started through one of the many online platforms
• Very low ongoing time commitment

Cons:

• Some risk of your items being damaged or stolen

#17: Buy and Sell Websites

[su_note note_color="#dbeafc"] Upfront time investment: Low Upfront financial investment: $10-$200+ per site Passive income potential: High [/su_note] Did you know that buying a website and selling it could make you up to $90 million? That's how much Vegas.com paid to purchase LasVegas.com. If you find a website that you can imagine being a desired domain name, buy it and save it until a company is willing to pay way more for it. You can monetize those websites while you own them, too. Rob Stefanski currently owns seven websites that generate about $30,000 every month in revenue. You can listen to his podcast interview to hear his insights on how to buy, grow, and scale revenue for a website. Pros:

• 100% passive
• Can earn short-term income while waiting to sell
• Potential returns are high if you buy the right websites
• No limit to the number of domains you can buy

Cons:

• Return on investment isn’t guaranteed
• May need to sit on a site for a while before you find a buyer

#18: Invest in Vending Machines

[su_note note_color="#dbeafc"] Upfront time investment: Medium Upfront financial investment: $2,000-$120,000 Passive income potential: High ($10K+ per month) [/su_note] Vending machines are another source of income. For those wondering how to create passive income from vending machines, check out our vending machine business course taught by Adam Hill, who turned an investment of $120K into $600K of annual revenue. Insert sign up for the Vending Machine Boot camp. Pros:

• Fairly easy to earn enough to replace a full-time job
• Variable time commitment and startup costs
• No specialized skills, knowledge, or training required

Cons:

• Ongoing time commitment unless you have employees (not completely passive)
• Potentially high initial investment if you want to purchase an entire vending route

#19: Advertise on Your Car

[su_note note_color="#dbeafc"] Upfront time investment: Low Upfront financial investment: $0 Passive income potential: $100-$900 per month [/su_note] Your car can be a source of multiple streams of income. You can advertise your own businesses or earn easy passive income by advertising other brands. Some providers to check out include:

• Wrapify: Earn $180 to $500 per month to wrap your car in advertising.
• Carvertize: Earn up to $300 per month per campaign for car wrapping.
• FireFly: Earn up to $300 per month to have a lighted billboard on the top of your car. You must be a rideshare or taxi driver and drive over 40 hours per week.
• Play Octopus: Make an extra $100 per month plus $25 per referral by letting rideshare passengers play games on a tablet.
• Vugo: Earn Up to $300 per month from the oldest name in rideshare advertising.

Pros:

• Excellent add-on revenue stream for delivery and rideshare drivers
• No ongoing time commitment once the advertising is in place
• You choose what types of ads you display and how much of your car they cover
• No permanent changes to your vehicle

Cons:

• Relatively low stand-alone income source
• Won’t make much if you drive infrequently or in low-traffic areas 

#20: Invest with Robo-Advisors

[su_note note_color="#dbeafc"] Upfront time investment: Low Upfront financial investment: Your choice Passive income potential: 2.91%-6.1% of investment [/su_note] Robo-advisors are apps that automatically pick investments and manage your portfolio. All you do is answer a few questions about your risk tolerance and investment goals, and their algorithms take care of the rest. Credit Donkey’s list of the best robo advisors is a great place to start if you’re looking for more information.  Pros:

• No investing skills or knowledge required 
• Doesn’t take much time to set up or manage
• You can invest as much or as little as you want

Cons:

• Little control or customization of what you invest in
• Need to invest a lot to see significant returns

#21: Flip Items with an Online Store

[su_note note_color="#dbeafc"] Upfront time investment: Medium Upfront financial investment: up to $1,000 for initial inventory Passive income potential: High ($30K+ per month) [/su_note] The old adage that one man’s trash is another man’s treasure is true and can be a great way to earn income if you have a sharp eye for products that will sell.  Mike Wilson’s story is a prime example. He started an eBay store to resell items after retiring from his career as a furniture store owner. After investing $1,000 into his initial inventory, he now makes around $30,000 every month with his eBay store. Hear more about how Mike built his online store in his podcast interview.   You can find items to resell for cheap at thrift stores, garage sales, or storage unit auctions. Sites like Craigslist and Facebook’s marketplace sometimes even have free items available, or you could sell unused items from around your home. While you will need to invest some time into acquiring your inventory, it’ll be on your schedule, and the income is still primarily passive.   Pros:

• Don’t need much money to get started
• No specialized skills or knowledge required
• High potential income that’s easy to scale

Cons:

• Some ongoing time commitment to stock and manage the store
• You’ll be stuck with items you don’t need if they don’t sell

#22: Certificates of Deposit (CD) Ladders

[su_note note_color="#dbeafc"] Upfront time investment: Low Upfront financial investment: Your choice Passive income potential: .15%-5% of investment [/su_note] A Certificate of Deposit (CD) is a savings product sold by banks, credit unions, and other financial institutions. The main difference between CDs and savings accounts is that CDs have a fixed term and interest rate.  CD laddering is an approach to maintain your liquidity while investing in CDs. Basically, you invest in a few different CDs with varying terms. As each matures, you can choose whether to keep that money or reinvest it into a new CD. These investments are insured by the FDIC so your principal is protected, a key advantage over more volatile forms of investment.  Pros:

• Full control over how much and where you invest
• Low risk with guaranteed returns
• A laddering approach maintains your liquidity

Cons:

• Can’t access your money until the CD matures
• Interest rates are locked in until the CD matures, even if they go up after your purchase

#23: Crowdfund Small Business Inventory

[su_note note_color="#dbeafc"] Upfront time investment: Low Upfront financial investment: $20 minimum Passive income potential: 15% of investment [/su_note] KickFurther.com is a unique concept in crowdsourced small business financing. Business owners sign up for funding, and investors provide those funds by essentially buying their inventory and selling it through them on consignment. Your profit is earned once the products sell. Kickfurther sellers also get their own store on the site where you can help sell the inventory you purchased and get an extra 5% commission on any items sold through it. Pros:

• Help small businesses while you earn a profit
• Generate your own cash flow through the store
• Potential to be completely passive with no ongoing time commitment once you invest

Cons:

• You won’t make money if the products don’t sell
• Limited support for buyers on the platform

#24: Rent Out Your Car

[su_note note_color="#dbeafc"] Upfront time investment: Low Upfront financial investment: $0 Passive income potential: $850-$7,500+ per month [/su_note] The website Turo uses a similar model to vacation rental sites like Airbnb, but with cars instead of homes. Hosts list their cars on the site and travelers who need a vehicle reserve them for a fee. You can host one car or several, making it a scalable passive income source for those who want something they can grow to replace a full-time job. While there is some risk of your car being damaged while someone’s using it, Turo provides liability insurance coverage up to $750,000, so you won’t be on the hook for repairs if they do. There are other places you can rent out your car, too:

• HyreCar: A site where you can rent your car to rideshare drivers.
• TravelCar: For people who travel often, this is a way to rent your car out while you’re gone, and all you have to do is park it at one of the qualifying airports. 

Pros:

• Earn extra revenue from vehicles you already own when they’re not in use
• Full insurance coverage for your car while others are driving it
• Complete control over who rents your car and when (no penalty for turning down a rental request)

Cons:

• Risk that your vehicle will be damaged
• Can only list newer cars in good condition

#25: Rent Out Space in Your Home

[su_note note_color="#dbeafc"] Upfront time investment: Low to Medium Upfront financial investment: $0 Passive income potential: $50-$1,500+ per month [/su_note] There are a few different ways you can go about this. If you have an unused vacation home, extra rooms in your main home, or under-utilized spaces like a garage or pool house you can turn into a micro-apartment, you can rent it out to travelers on sites like Airbnb or Vrbo.  Travelers aren’t the only people who need to rent space, either. On Neighbor, you can rent out space storage space, whether that’s interior storage for people’s possessions or business inventory, or an outdoor lot where people can park cars, boats, RVs, and trailers. This is a great option for homeowners who have extra space in an attic, garage, basement, or unused room but don’t want to worry about preparing that space for other people to inhabit.  Pros:

• Complete control over who uses the space when
• Easy and free to get started
• No fees unless someone is using your space
• Fast way to monetize unused space

Cons:

• Some ongoing time commitment to prepare a home or room for guests
• Sharing your personal space with strangers

#26: Rent Out a Parking Space

[su_note note_color="#dbeafc"] Upfront time investment: Low Upfront financial investment: $0 Passive income potential: $50-$300 per month [/su_note] If you live in an urban area, especially close to a place where people congregate like a sports venue, fairground, or other event space, you can monetize your parking space for a bit of extra income. Apps like Pavemint and CurbFlip make this easy. All you have to do is list your space and drivers reserve and pay for it right through the app.  Pros:

• Fast and free to set up
• High demand in busy and urban areas
• Complete control over when you rent your space and to whom

Cons:

• Relatively low earning potential
• Earnings vary widely depending on your location

#27: Open a Coin-Operated Laundromat

[su_note note_color="#dbeafc"] Upfront time investment: Medium-High Upfront financial investment: $200,000+ Passive income potential: High ($24K+ per month) [/su_note] Everyone needs to do their laundry, and not everyone has a machine to do it at home. Everything in a coin-op laundromat is automated, and it’s common for them to operate without employees on-site to supervise. If you hire someone to clean and maintain the machines it’s a completely passive business, and that won’t be much of a time commitment if you handle it yourself.  Like any brick-and-mortar business, a laundromat can be a big investment. Brian Riseland invested $1 million to open Laundry Genius (watch his YouTube interview). [su_youtube url="https://www.youtube.com/watch?v=0aEcWTxnLUI"] Note that his space is larger than most, which means higher revenue potential. While you don’t necessarily need to make a 7-figure investment, it’s common for turnkey laundromat operations to cost between $200,000 and $500,000. If you’re interested in opening a laundromat, the how-to guide on the UpFlip blog is a great place to get more info.  Pros:

• Consistently high demand in well-populated areas
• High revenue potential 
• Fully-automated processes give it a low ongoing time commitment

Cons:

• Needs employees to be completely passive
• High initial investment

#28: Ecommerce Dropshipping

[su_note note_color="#dbeafc"] Upfront time investment: Medium Upfront financial investment: $100-$1,000 Passive income potential: $1,000-$50K+ per month [/su_note] Dropshipping is basically like being a professional middleman. You take orders from customers, then send them along to a wholesaler, manufacturer, or other retailer who sends the ordered item to the customer.  The big advantage of dropshipping is that you never have to worry about inventory. All you have to do is list the items in your store and market to potential customers. There are software and tools you can use to automate many of these tasks. Amazon and Shopify are the two largest platforms for dropshipping businesses. Multi-million dollar Amazon seller Ryan Hogue started his Ryan’s Method Passive Income School based on his success with a dropshipping eCommerce business, and you can hear his advice on how to start in our podcast interview.  Pros:

• Highly scalable with the potential to earn a high income
• Relatively low ongoing time commitment
• Low start-up costs and overhead

Cons:

• Lots of competition means you need strong marketing skills to earn a high income

#29: Create Alexa Skills

[su_note note_color="#dbeafc"] Upfront time investment: High Upfront financial investment: $0 Passive income potential: $100-$10K+ per month [/su_note] Devices that use Alexa voice control have “skills” that allow them to perform different tasks, like playing music or turning connected devices off and on. Anyone can create the skills and get paid for them. While you will need some software development skills to do so, Amazon has partnered with Codeacademy to create free courses that will teach you the basics. Payment for skills is based on user engagement. The more popular the skill, the more you can earn from it. Skills can also be monetized by adding in-skill purchases.  Pros:

• Easy way for developers to make passive income 
• Completely free to get started
• You don’t need to do anything once the skill is developed

Cons:

• It’s up to Amazon which skills get paid, and how much
• Large upfront time investment with no guarantee of a return

#30: Create Mobile Apps

[su_note note_color="#dbeafc"] Upfront time investment: High Upfront financial investment: $100-$5,000 Passive income potential: $100-$500 per app per month on average [/su_note] Everyone who has a smartphone is a potential customer for mobile apps. If you can solve a problem or make an entertaining game it can quickly get thousands of downloads, even if it’s targeted to a very specific niche. You don’t need to be a programmer to write an app, either, thanks to low-code and no-code platforms. NeoITO has a list of the best free platforms for non-coders to develop apps if this is something that interests you. Pros:

• Low time commitment once it’s approved by the app store
• Easily scalable with the potential for high income
• In-app purchases can create income sources beyond the initial purchase

Cons:

• Large initial time investment with no guarantee of a return

#31: Build or Buy a Newsletter

[su_note note_color="#dbeafc"] Upfront time investment: High Upfront financial investment: $0 Passive income potential: $5-$10 per subscriber per month [/su_note] Subscription-based newsletters can be very lucrative if they provide readers with consistent value. You can also monetize your newsletter by including affiliate links or selling advertising space once you have an established audience.  Like other content-based income streams, it can take a lot of time and hard work to create valuable newsletters and build a subscriber base. If you don’t want to start from scratch, you can buy a newsletter from a marketplace like Duuce. Pros:

• Recurring monthly income from your subscriber base
• Scalable with multiple ways to monetize the content
• Can use your newsletter to promote other passive income streams like a blog, YouTube channel, or online course

Cons:

• Can take a lot of time to create valuable content

#32: Invest in Startups

[su_note note_color="#dbeafc"] Upfront time investment: Low Upfront financial investment: $50-$500 minimum investment Passive income potential: 10%-25% of investment [/su_note] Lack of capital is one of the biggest challenges many entrepreneurs face when starting a business. Equity crowdfunding is one way for them to access the funds they need, and you don’t need to be an accredited investor to get in on the action. There are a variety of equity crowdfunding platforms where you can become an angel investor with just a few hundred dollars in capital:

• StartEngine: One of the largest venture crowdfunding platforms, you’ll find everything from coffee shops and clothing stores to wind turbine companies seeking funding on StartEngine. You can also invest in or trade rare collectibles on their site.
• WeFunder: A low minimum investment of $100 makes WeFunder one of the most accessible ways to become an angel investor.
• Republic: Another low-capital option, you can start with as little as $50 on Republic. Their curated list is focused on opportunities with high growth potential.
• MainVest: Focused specifically on small businesses, MainVest lets you support local entrepreneurs while you earn passive income.

Pros:

• Support small businesses you believe in and earn income for doing it
• 100% passive once you’ve invested
• Potentially high long-term returns if the business takes off

Cons:

• You lose your investment if the startup fails
• May take a long time to see a return on your investment

#33: Create Digital Files

[su_note note_color="#dbeafc"] Upfront time investment: Medium-High Upfront financial investment: $0 Passive income potential: $50-$10K+ per month [/su_note] You’ve likely seen the online marketplaces of fonts, website and store themes, and other graphics and illustrations. These are often made by independent artists and designers who can make extra income selling their digital files through a platform like Creative Market.  This isn’t just an option for artists. You can also sell spreadsheet templates, patterns for crafts, PDFs, or templates for business cards, invitations, or greeting cards. If it’s something people need and will search for online, you can sell it for extra income. Some other sites to check out if this seems like something you want to do:

• Easy Digital Downloads: One of the most popular digital download marketplaces, boasting nearly 4 million downloads from their platform. They also have a wide range of third-party integrations and analytic tools helpful for creators. 
• Gumroad: The easy sign-up process and knowledge resources on Gumroad make it ideal for new digital creators, and you can sell just about anything through their platform.
• SamCart: An all-purpose site for courses, membership subscriptions, or digital products, SamCart also has helpful resources and analytic tools. The downside is there is a membership fee to sell through their platform.

Pros:

• Easy way to monetize your unique skills and knowledge
• Little to no up-front financial investment with a low overhead
• Income potential scales as you create more items to sell

Cons:

• Need to sell a lot of files to make a significant income
• Risk of your content being copied or shared illegally

#34: Become a Social Media Influencer

[su_note note_color="#dbeafc"] Upfront time investment: High Upfront financial investment: $0 Passive income potential: $10 (<1,000 followers)-$10K (>500,000 followers) per post [/su_note] If you’re already active with a large following on social media, you can leverage that following into passive income by becoming an influencer. Influencers are paid to promote products, services, and companies through their social media channels using reviews, promotional posts, or ads inserted into their posts, blogs, and videos.  Sites like Heepsy and Upfluence connect influencers with people who need their services and can help you build your reputation as an influencer. While the highest-paid influencers have 100,000 followers or more, you can become a micro-influencer with as few as 1,000 followers. Pros:

• Easy way to monetize a large social media following
• Try new products or services in your niche for free
• Works well in tandem with other passive income sources like courses, blogs, and YouTube channels

Cons:

• Not completely passive since you’ll need to actively post engaging content
• Need a large social media following to attract advertisers and sponsors

#35: Generate Leads

[su_note note_color="#dbeafc"] Upfront time investment: Medium-High Upfront financial investment: Low Passive income potential: $.50-$30 per lead [/su_note] A lead is a potential customer or sales contact. Companies get leads through their website, online ads, and ranking high on search results. Larger companies often have teams devoted to lead generation and management, but smaller businesses don’t have those resources, and instead pay third-party freelancers or agencies to do it for them.  If you have a strong understanding of digital marketing, SEO, and web development, you can use those to gather leads and sell them to businesses. The industries that pay the most for these are home services, insurance, and lending companies, so it can be beneficial to have expertise in those areas.  Pros:

• Can use software and tools to automate lead sourcing and make it more passive
• No need to create and sell your own products or services
• High revenue potential once you’ve established your reputation

Cons:

• Requires a specific skill set 
• Can take a while to grow your reputation and increase earning potential

#36: Use Passive Income Apps

[su_note note_color="#dbeafc"] Upfront time investment: Low-Medium Upfront financial investment: $0 Passive income potential: $10-$100 per month [/su_note] Do you want to get paid for doing things you already enjoy? There are a plethora of apps that let you do just that. While many of the apps you’ll find on passive income earning lists are investment platforms, there are other options. Some of the most popular include:

• Mistplay: A loyalty program for mobile gamers, Mistplay pays users to play promoted games. Earn points for playing and turn them in for gift cards to Amazon and other online sellers.
• Swagbucks: Earn gift cards for doing a variety of online activities, like watching videos, taking surveys, or playing games. 
• InboxDollars: A way to get paid for things you already do online, like shopping, searching the web, or even watching TV.

Pros:

• Get paid to shop or play online games
• Make passive income from things you already do
• Easy to set up with no specific skills or knowledge required

Cons:

• Relatively low income potential

#37: Take Paid Surveys

[su_note note_color="#dbeafc"] Upfront time investment: Low Upfront financial investment: $0 Passive income potential: $.50-$5 per survey [/su_note] Companies need feedback from users and customers to improve their products and services, and they’re willing to pay for that information. Taking online surveys doesn’t generate a ton of money, but if you enjoy doing them, it’s a way to make a bit of extra cash just by sharing your opinions.  The Swagbucks and InboxDollars apps listed above are two places you can do this. Some other popular and reputable survey-for-cash sites include Survey Junkie, Pinecone Research, and MyPoints. Pros:

• Easy and free
• Earn money in your spare time while doing other things
• Provide feedback to improve the products and services you use

Cons:

• You’ll only get paid for surveys you qualify for
• Can take a while to earn a significant amount

#38: Use a Credit Card with Cashback Rewards

[su_note note_color="#dbeafc"] Upfront time investment: Low Upfront financial investment: $0 Passive income potential: 1%-10% of what you spend [/su_note] Getting money back for the things you buy is one of the easiest forms of passive income. The only caveat here is that you’ll need to make sure you only buy what you can pay off right away, before you’re hit with interest that wipes out those savings. Look for a card with no annual fees. Many also offer a sign-up bonus of $200-$300. Nerdwallet’s list of cashback credit cards is a great way to compare your options. Pros:

• No extra effort or investment required
• Many offer bonus savings on specific categories of goods and services
• Improves your credit score while earning cash back

Cons:

• Can get hit with high interest if you don’t pay your balance in full

#39: Get Cashback for Shopping or Dining

[su_note note_color="#dbeafc"] Upfront time investment: Low Upfront financial investment: $0 Passive income potential: 1%-30% of what you spend [/su_note] Another way to get paid for the things you already buy is through discount and reward websites and apps. Like with cashback credit cards, you want to be careful you’re not overspending in your quest for rewards. For the things you already buy, though, you can access them through an app or website to get as much as 20% of your purchase back, which translates to more money in your pocket. Some of the most popular sites for this:

• Rakuten: Shop through the app to get discounts, cash back, and rewards for buying things you already need and use. 
• Earny: This site tracks prices and gives you a refund if it drops after your purchase. You can also win prizes and get other rewards for shopping, and adding the Chrome extension makes the whole process automatic.
• Seated: Book reservations at local restaurants and get up to 30% back in gift card rewards.

Pros:

• Earn money back for the things you already buy
• Easy and free to get started
• Can earn additional bonuses and rewards

Cons:

• Can take some time to accumulate enough rewards to cash out

#40: Buy a Parking Lot, RV Park, or Mobile Home Park

[su_note note_color="#dbeafc"] Upfront time investment: Medium Upfront financial investment: $10,000-$100,000 Passive income potential: High ($10K+ per month) [/su_note] People with vehicles need a place to park them, and the larger the vehicle, the more limited their options. Undeveloped lots are cheaper than commercial property with structures, giving this a lower financial barrier to entry than other brick-and-mortar options on this list. Once you have the lot set up, you can automate the space booking process or hire a few employees to supervise and maintain the space to make it a fully-passive income stream.  Pros:

• In-demand service with a consistent customer base
• Can make a profit from otherwise unusable and undeveloped space
• High long-term revenue potential

Cons:

• Will need employees to make it fully passive
• Requires some initial capital investment

Create a Passive Income Stream

Let's review Graham's simple steps for developing your passive income idea into a thriving source of income: [su_note note_color="#dbeafc"]

1. Explore passive income stream ideas
2. Perform market research
3. Create a customer avatar
4. Build the system
5. Create content or ads
6. Gather emails
7. Convert followers to customers

[/su_note]

Perform Market Research

Once you've chosen a couple of the best passive income ideas that you'd like to investigate, it's time to do some market research. You'll want to understand:

• Industry revenue and profit benchmarks
• The major players and how they make their money
• Trends in the industry
• Gaps in the current offerings

After you understand all this and have decided to enter the industry, it's time to create a customer avatar.

Create a Customer Avatar

Create your own avatar profile with this template. To earn passive income, you'll want to have a customer avatar. There are two ways you can create the customer avatar depending on what kind of passive income streams you pursue:

1. Avatar of your future self
2. Avatar of your future client

Let's look at each.

Avatar of Your Future Self

If you plan to earn passive income from dividend stocks, real estate investment trusts, exchange-traded funds, or other income-producing securities, you may want to create a customer avatar of what your life looks like in the future. You'll want to include aspects like:

• The year
• Where you live
• Your monthly income
• Your family scenario
• Your work schedule

This is just defining what financial freedom looks like to you. With a picture of where you're going, it's easier to commit to the upfront time investment and monthly payments necessary to reach financial independence.

Avatar of Your Future Client

If your passive income streams involve selling a product or service to generate income, you'll want to define your ideal client. You want to know everything you can about them, including:

• How they make money
• Where you can reach them online
• What is important to them
• Your pathway of interactions once you start interacting with them
• How they communicate

The more you know about your client, the better you can prepare a passive income strategy.

Build the System

This is where those who shine at running business ventures or creating passive income differentiate themselves from those who fail. You need a system in place. Otherwise you'll burn out. Graham started his first passive income stream with the following tech stack:

• Cheap WordPress site
• MailChimp
• eJunkie

He told us: [su_quote]I started with $50 using free software as much as possible. Today I use Kajabi because it has everything I need and costs under $200 per month.[/su_quote] Kajabi offers a 30 day free trial.

Create Content or Ads

The next step is to create the content or ads to get your passive income ideas in front of your target market. If you’re creating content, you’ll want to share regularly with your audience. You can use your customer avatar to create ad accounts on the appropriate social media platforms. Graham explained how he spends just five hours each week to earn passive income: [su_quote]I create content for YouTube or the podcast, record a class and Q&A, then check in with my community and answer questions.[/su_quote] You can use programs like Canva to make content generation easy, but Kajabi also has design tools built in.

Gather Emails

You'll want to collect email addresses to communicate with your followers. Kajabi has built-in email collection and is really intuitive. You can even take the Kajabi Academy List Building Course to learn the best ways to build an email list using their platform. If you prefer MailChimp, they also offer educational resources on using their platform. Here are the main things you need to know about any email list:

1. You need real emails. If you have too high a spam rate, you'll be flagged by email operators. If the email addresses don't look real, they probably aren't.
2. Disclose how email addresses will be used before you collect them. People are hesitant to give out their emails to unknown companies.
3. Comply with the strictest laws you fall under. In most cases, this is the GDPR, Europe's privacy regulations.

Convert Followers to Customers

The final step in earning a passive income is converting followers into customers. This requires an automated email funnel. Kajabi has a free training that I linked to earlier. There are a ton of places you can get free or low-cost email templates and edit them to suit your niche. If you wish, you can also use paid ads with retargeting as long as you have the proper tracking codes on your site. Next, we'll answer some commonly asked questions about the best passive income investments.

Passive Income Success: A Case Study

We mentioned him above, but it’d be a shame not to highlight him once more before we wrap this article. Graham Cochrane is a prime example of a wildly successful passive income plan.  He's made $1.6 million dollars this year and only works 5 hours a week. Yes, you read that right. Graham got laid off from his job four months after moving his family to Florida during the Great Recession. He told us: [su_quote]My back was against the wall.[/su_quote] He had some experience recording and mixing for bands, which he thought he'd start doing as a side gig. So he started marketing the business: [su_quote]I started a blog, and [I thought] maybe people would see my blogs, and it would bring in more clients. I didn’t know about passive income and course materials...but within three years I made over a million dollars![/su_quote] Want to know his secrets? Get all the info in our interview.

Passive Income FAQs

People ask a lot of questions about the best ways to invest passively. While I am not in wealth management, nor am I a certified financial planner, I have experience investing and am happy to share my opinions. Make sure to consult with a professional who actively handles wealth management before pursuing any types of income that require an investment.

Passive Income vs Unearned Income Streams

Passive income is from an investment of time or money, while an unearned income comes from sources like gambling, alimony, lotteries, or social security.

How to Generate Passive Income with No Initial Funds

Many of the top streams of passive income are online. In addition, most software offers a free trial. You just have to be willing to trade an upfront time investment for future income. If you are low on cash, consider getting into: [su_note note_color="#dbeafc"]

• Custom products
• Online courses
• E-books
• Stock photos
• Affiliate marketing
• Blogging
• Youtube
• Podcasts

[/su_note]

How to Make Your Money Work for You

To make your money work for you, invest it in passive income ideas that are strictly financial instruments. You can invest money in the following money making ideas:

• Dividend Stocks: Earn dividend income on a monthly, quarterly, or annual basis by playing the stock market.
• Mutual Funds: A fund that holds multiple types of stocks that requires a minimum investment. Mutual fund focused on income will pay out similarly to dividend stocks.
• Retirement Accounts: You’ll pay taxes on either the front end or the back end but not both. If you work with a company with a matching 401K, that is an automatic gain right from the start.
• Peer-to-Peer Lending: These financial instruments lend money to people and businesses in exchange for the repayment of principal and interest payments. You may be required to be an accredited investor on some platforms.
• Real Estate Investment Trust: Make money off real estate investing without buying a property and managing it.

A high-yield savings account or money market fund is another option, but I would recommend going for something that beats inflation. Savings accounts and money market funds normally have horrible interest rates.

How Can I Make Passive Income with Real Estate?

Passive income options in real estate include:

• Buying a rental property: Buying real estate to earn rental income is one of the ways many people earn passive income in 2024.
• Investing in real estate investment trusts: Make money on real estate without owning real estate or managing a rental property. These are some of the highest-yielding stocks.

Have You Figured Out How to Get Rich in 2024?

At this point, you've learned:

1. The passive income definition
2. How to earn passive income
3. How to build passive income using Graham's strategies
4. Some of the best passive income ideas in 2024

Now you just have to put in the upfront time investment or money investment. As you bring in more money, make sure to keep reinvesting it in a mutual fund or other ways to create passive income dividends. Just as a reminder, don’t consider this blog as investment advice. We’re just business owners who are passionate about helping others succeed. Any investment decisions should be made in consultation with a licensed financial advisor. What passive income strategy has made you the most money?

• Real estate
• Online passive income
• Stocks
• Crypto

Working will earn you an income, but if you want to make a great living, you’ll probably want to pursue some strategies that let you earn a passive income. We’ll show you how to start dropshipping. Ryan Hogue started his dropshipping business while working two jobs. He’s since become a multi-millionaire through dropshipping on Amazon and other marketplaces. He’ll share his strategies to start a dropshipping business model and how to grow your drop shipping business ideas into passive income. [su_note note_color="#dbeafc"] We’ll discuss the subjects below. Click on any link to jump straight to that section about starting a dropshipping business.

• What is Drop Shipping?
• How Does Dropshipping Work?
• Is Dropshipping Worth It?
• Is Dropshipping Legal?
• How to Start Dropshipping with No Money
• How to Start a Dropshipping Business
  • Step 1. Research Dropshipping Ideas
  • Step 2. Choose a Dropshipping Opportunity
  • Step 3. Write A Business Plan
  • Step 4. Choose A Business Structure
  • Step 5. Select a Dropshipping Supplier
  • Step 6. Open an Online Store (Optional)
  • Step 7. Market Your Online Business
• Never Make These Dropshipping Mistakes
• Make The Dropshipping Business Model Work For You!

[/su_note]

What is Drop Shipping?

People might also ask: what is dropshipping? Either way you spell it, dropshipping is a logistics strategy that ships products from the manufacturer to the final consumer. This strategy allows both the manufacturer and the dropshipper to make more money by cutting out a distribution center. Ryan told us:  [su_quote]I hired a coach to help me launch my own FBA product. I realized I could do Amazon Merch on Demand and have another form of passive income.[/su_quote] Check out our interview with him about opening a dropshipping store below. Then apply for Amazon Merch on Demand.

How Does Dropshipping Work?

Dropshipping follows a simple process: [su_note note_color="#dbeafc"]

1. Customer orders a product from an online store.
2. Online store takes their profit and sends the order and payment for product and shipping to the supplier.
3. Supplier prepares the order and ships to customer.

[/su_note] Ryan told us: [su_quote]There’s a learning curve, but soon you set it up and forget it.[/su_quote]

Is Dropshipping Worth It?

The dropshipping business model can be extraordinarily profitable. Just to give you an idea, Amazon spent $288 million paying out vendors for the online business earnings, according to page 35 of their annual report. This accounts for about 20% of the dropshipping business in the U.S., which means dropshipping is making over a billion each year. Profits are typically around 6%, but when you start a dropshipping business on Amazon you can mostly add your products and they do all the work. Ryan told us: [su_quote]In July 2022, I made $32,000 revenue in a month just from Amazon Merch. $6,700 of that was profit. I spent $150 on ad spend, and the largest cost was currency conversions.[/su_quote] I’d say getting into the dropshipping business is worth it.

Is Dropshipping Legal?

Yes, you can legally dropship products. You’re required to follow local, national, and international laws about selling merchandise in both the place you live and the buyer’s location. The business model is low risk as long as you pay sales tax and comply with the laws. You can start by checking your state laws then use software like Avalara to simplify compliance.

How to Start Dropshipping 

Dropshipping is a fairly easy process to start. Ryan told us there are basically 5 steps.

1. Sign up on the platform
2. Get a supplier
3. Create designs
4. Create website (if needed)
5. Do marketing

Ryan’s advice is really beneficial if you want to know how to start a dropshipping business on Amazon. We'll add a couple more steps to the process below so you're prepared for other marketplaces as well. 

How Much Does It Cost to Start a Dropshipping Business?

You can get into the dropshipping business for almost free. Most blogs say you need less than $100, but I would say you need to have at least enough money to cover the first couple of purchases depending on how your own dropshipping business is set up. Ryan told us: [su_quote]My initial startup cost was zero for Amazon Merch on Demand. It’s a simplified process of selling on Amazon.  Apply, Add your designs, then you get a royalty once a month.[/su_quote] He also let us in on how to start dropshipping for free.

How to Start Dropshipping with No Money

Ryan explained that dropshipping suppliers allow you to start for free. In addition to Amazon Merch, he had these ideas for where and what to sell: [su_note note_color="#dbeafc"]

• Ebay: Anything you sell on Amazon Merch
• Etsy: Design files sell well on Etsy
• Amazon Central: Sell the same designs or your own dropshipping products
• Amazon KDP: Apply the dropshipping business model to books
• Red Bubble: This is an Australian dropshipping supplier that Ryan has had success with

[/su_note] Ryan emphasized: [su_quote]Go to redbubble.com. It is the absolute easiest to get started.[/su_quote] Jump into the dropshipping business with Red Bubble!

How to Start a Dropshipping Business

You can start a dropshipping business in just seven steps:

1. Research Dropshipping Ideas
2. Choose a Dropshipping Opportunity
3. Write A Business Plan
4. Choose A Business Structure
5. Select a Dropshipping Supplier
6. Open an Online Store
7. Market Your Dropshipping Store

Next, we’ll show you how to dropship.

Step 1. Research Dropshipping Ideas

There are a ton of ways to drop ship depending on what dropshipping niche you want to get into. Ryan suggests: [su_quote]T-shirts, mugs, or books through Amazon dropshipping are the easiest. Then you can sell the same design files through Etsy.[/su_quote] He also suggests looking through whatever site you are on to figure out what is trending. Ryan told us: [su_quote]If you can sell a couple shirts immediately and then another 1-2 per year, it will start to add up.[/su_quote] Check out our blogs on business ideas to get more great online business ideas.

Step 2. Choose a Dropshipping Opportunity

In this step, you’ll want to choose a dropshipping business idea and dig deeper into what it requires to set up. Remember, Ryan told us he’d suggest starting on Amazon Merch. He told us you might want to overstate your credentials. [su_quote]I wasn’t accepted on my first attempt. You might have to create a new email and lie a little saying you’re an experienced graphic designer with a successful online business—but a human isn’t checking it. It’s just a machine.[/su_quote] He also told us that Amazon can take a while to approve your dropshipping business ideas. Learn how to evaluate business opportunities.

Step 3. Write A Business Plan

It’s always helpful to write a dropshipping business plan. When starting a dropshipping business, it might be as simple as stating what your target revenue and profits are, the channels and countries you’ll sell in, and the products you’ll sell. If you want to expand like Ryan has, you might want to plan for additional costs like development, design, and creating YouTube videos. For those who want to dig deep into a dropshipping business plan, check out our blog about business plans or watch the video below. [su_youtube url="https://www.youtube.com/watch?v=Seac5PbUZXk"] Next, let’s look at forming your dropshipping business.

Step 4. Choose A Business Structure

Dropshipping businesses will need to comply with local laws. Every state has different requirements, but most states require every online retailer that makes over $600 in their state to pay sales tax. That means the ecommerce store will need:

• Limited Liability Company: Offers personal liability protection and protects personal assets under most scenarios if you keep your personal and business finances separate. Apply with your state’s Secretary of State
• Business License: These are required in many states to operate a business. You may also need local or county licenses.
• Sales Tax Permit: To collect sales tax, you will need a tax permit, which may also be called a tax ID. You’ll also need to pay the sales tax office after you collect the taxes. Each state handles these differently so just search “Sales Tax Permit” in Google.

You may also need a tax exemption document to avoid paying sales tax on every purchase from your dropshipping supplier, or some states will allow a dropshipping store to count that as your taxes. Consult an attorney before your dropshipping business counts the taxes from the dropshipper as satisfying the online stores taxes.

Step 5. Select a Dropshipping Supplier

When you start a dropshipping business, there are a ton of dropshipping suppliers to choose from. We’ll discuss some of the more popular drop shipping companies and wholesale suppliers.  You should always check the dropshipping website’s reviews and note where they are located. Drop shipping companies in the U.S.A dropship much faster to U.S. addresses than dropshipping companies in Asia or other countries.

Wholesale Central

This site offers third party tools to help store owners find companies selling products. The two most relevant categories for a successful dropshipping store are:

• Amazon FBA Suppliers
• Wholesale Dropshipping Suppliers

Any companies listed as wholesale dropshipping accounts should be capable of meeting the dropshipping prices, but make sure to understand how their wholesale price and dropshipping process works.

Amazon Drop Shipping

You have a ton of options for a dropshipping store on Amazon. Your dropshipping business can use:

• Fulfillment By Amazon: Have Amazon fulfill orders for your ecommerce store. Find out how to sell products using this business model.
• Amazon Merch: Make between $1.93 and $9.32 royalty per t-shirt sold with Amazon Merch online store.
• Amazon Kindle Direct Publishing (KDP): Start a dropshipping business selling books on Amazon KDP.

In addition, you can use most print-on-demand or external dropshipping ecommerce businesses in conjunction with Amazon, but your dropshipping business won’t qualify for Amazon Prime shipping.

Alibaba Dropshipping

If a dropshipping business wants products that are sourced in China without a minimum order quantity, you can order from Alibaba. Dropshipping from China takes a while longer to reach the customer after you sell products, but you’ll have higher profit margins on all your customer purchases.  If you use this method, make sure your ecommerce website explains that using this dropshipping business model reduces waste and prices, but takes 10 to 14 business days for products to arrive. People appreciate knowing what to expect.

AliExpress Dropshipping Center

AliExpress sells products in wholesale quantities. This makes it easy to start a successful dropshipping business if you order products from their ecommerce platform, then ship to a fulfillment center. This makes selling on online stores like Amazon and Shopify more efficient.

Shopify Dropshipping

The dropshipping model thrives on Shopify. There are a ton of dropshipping suppliers with plug-ins for selling products on the Shopify website. The following are some of the best ones to consider when starting a drop shipping website.

• DSers: Connect AliExpress to your website and pull in the information from the AliExpress website with this dropshipping Shopify app. There are free and paid plans as low as $19.90 per month.
• Spocket: Find dropshipping suppliers. USA, Canada, Europe, Australia, Brazil, and China are all places you can connect your ecommerce business to with a free plan. A small business can upgrade for $24.99/month.
• Modalyst: Sync AliExpress to your own site on Shopify. Starting a dropshipping business is easier with this app because it provides branded dropshipping lists to make your marketing easier. It isn’t free, though. You’ll be paying $35 per month.
• Print-on-Demand: Companies like Printful and Gelato are great for branded dropshipping. A customer makes a purchase, then the company prints the product and then mails it directly to them.

Find more great apps on the Shopify App store.

Step 6. Open an Online Store (Optional)

When you start a dropshipping business, you may want to open your own online store. A dropshipping business store will normally have lower transaction fees than selling on other ecommerce platforms once you reach enough volume to cover the monthly fees. The online store also makes the customer data yours instead of it belonging to the ecommerce platforms. Popular ecommerce platforms where you get to keep the customer data include Wordpress and Shopify. Learn about building a website.

Step 7. Market Your Online Business

After you’ve narrowed down your business ideas, chosen reliable suppliers, and have an online site, it’s time to turn your dropshipping store into a profitable business model. That means you’ll need to start a marketing strategy to sell products.  There are a lot of ways to market your business concept when you start a dropshipping business. You’ll want to:

1. Create a Marketing Strategy
2. Register with Search Engines
3. Create Content
4. Collect Data
5. Automate Email Marketing

Let’s look at how to create your own brand for a dropshipping business.

Define Your Marketing Strategies

The dropshipping business is a low-risk business model, but you’ll still need to get your dropshipping business ideas in front of people to sell products. How are you going to get your dropshipping business ideas to be seen by your niche market? [su_note note_color="#dbeafc"]

• Define what online tools you’ll use.
• Choose how you’ll communicate with your target market.
• Specify the kind of content you’ll post.
• Be consistent with how often you post. 

[/su_note] These next sections will focus on essential aspects of a successful marketing strategy.

Register with Search Engines

Every small business needs to be paying attention to Search Engine Optimization (SEO). SEO is focused on using the keywords that people use to find the products you sell. You’ll want to make sure you show up in Google search and other search engines (Amazon and YouTube are search engines too). When you want to start a dropshipping business, you’ll want to make sure to add your business info to sites like Amazon, Google Search Console, and other major search engines. Check out this list of 120 online business directories. Ryan told us: [su_quote]Gradually increase your setup. Occupy as much online real estate as possible.[/su_quote]

Create Content

You’ll want to create new content for your own brand as often as possible. You can use a free tool like Google Trends to find trending keywords, then add designs that match them. This helps get your small business seen on Google search results easier.  You can also use SEO tools like ahrefs and SurferSEO. We use both of these for our content on UpFlip. Every platform has different algorithms, so the content you  create will need to be based on best practices for that platform. Ryan told us he prefers to create dropshipping business content for the following platforms: [su_quote]I use Facebook Communities and YouTube. I post daily content on YT. I also respond to my audience. On Facebook, I create different groups and interact with people on there.[/su_quote]

Collect Customer Data

While a dropshipping business has low startup costs, a business owner will find that they can improve their profit margins if they collect customer data. Information like customers’ names, email addresses, phone numbers, and products purchased can make it easier for you to personalize marketing for your own dropshipping business. Hubspot has some useful courses on how and where to personalize customer interactions on an ecommerce platform.

Automate SMS and Email Marketing

Another way that a dropshipping business markets is by sending customers SMS and email marketing updates when new items have been added to their ecommerce platform. Many dropshipping business ideas will not make a profit on the first sale to a customer because the cost of customer acquisition in 2023 is nearly $22 for consumer goods—and even higher for some types of companies.  One of the key things you will have to learn for your own dropshipping business is how to increase the lifetime customer value. As you sell each customer more products, you will reach a break-even point and eventually a profit margin. A legitimate business entity will find that the best way to get customers to return to their own site is through SMS and email marketing. The more you drop ship to each customer, the more profit you’ll make. 

Example

Let’s say you sell a product on an ecommerce platform for $50, and it costs you $22 in marketing to get a sale. Your dropshipping company would have a scenario that looks like the one below. [su_note note_color="#dbeafc"]

• Sales Price: $50
• Tax: $4.25
• Ecommerce Fees: $7.50
• Processing Fee: $1
• Cost of Product: $34.25
• COGS: $47
• Gross Profit: $3
• Ads: $22
• Net Loss: -$19

[/su_note] In fact, in that scenario, you’d need to sell another seven items before you’d make a profit. (This demonstrates a lot of the reason that many people are turning away from paid advertisements. Most people focus on creating helpful content for social media instead.) Now that you know the basics of how to start a dropshipping business, let’s look more specifically at one method. A lot of the information that Ryan provided is about how to dropship on Amazon, so check out the next section.

Never Make These Dropshipping Mistakes

There are a lot of mistakes you’ll want to avoid while learning how to start a dropshipping business. Some of the biggest mistakes people make include:

Choosing The Wrong Target Market

If you choose a target market that’s saturated, you’ll have a difficult time breaking into the market. Use Google Trends to find new opportunities.

Underestimating the Importance of SEO

As we stated above, SEO is critical for customers to find your products. If you’re building your own site, you need to make it easy to use. That takes a lot of time, but running a shop on Amazon just means adding the new products, titles, and descriptions—and the format is already conducive to be SEO-friendly.

Not Automating Processes

Painstakingly typing each variant of a print-on-demand product could take hours. There are faster methods. Ryan told us: [su_quote]I’ve completely automated my system because I’m familiar with development.[/su_quote] The system Ryan uses is called Automate POD. Check it out below. [su_youtube url="https://www.youtube.com/watch?v=nBXlE7cct0E"]

Negative Customer Experience

One mistake the print-on-demand and dropshippers make is forgetting to disclose the lead time. Most people expect Amazon-like quickness and will not be happy if they pay extra for shipping costs and the product doesn’t arrive before an important date. Solve this problem by disclosing how products are handled. 

Relying Too Much On A Single Supplier

When considering how to start a dropshipping business, you may be tempted to make a deal with a supplier and just work with them. This can be a dangerous mistake because they might run out of products or raise their prices to where you aren’t competitive.  You should always have a backup plan for if something goes wrong. In addition, you’ll want to always have contracts in place. 

Poor Customer Support

Customers like to know the status of their products. Automate emails to send these notifications:

1. Thank you email after they purchase.
2. Shipping email once the order has a tracking number.
3. Delivery email (or text) once the product arrives.
4. Satisfaction questionnaire after they’ve had time to test the product.
5. New product updates they might like periodically.

On top of that, if there’s a problem with a product, don’t argue with the customer. Just solve it. You don’t gain anything from ticking off a customer.

Failing to Build a Brand

There is plenty of competition in dropshipping, meaning you have to provide customers a reason to keep coming back. Everyone has something that makes their business unique. You just have to share it.  You might have low prices, quick shipping, higher quality, a sense of humor, or better customer support. Build your brand, and you’ll build loyal customers.

Accepting Payments for Undeliverable Products

Before accepting a purchase, you need to be sure that the products are available. No customer likes paying for something they expect to get in a few days and finding it is on backorder for months. This will lead to cancellations, and those customers aren’t likely to return.

Marketing Something That’s Then Hard to Find

Have you ever clicked on an ad because you liked something and when you opened it, you couldn’t find it? That’s annoying, right!?!?! Don’t do that. Send the customer directly to the right landing page. Make it easy for them to buy and for you to make money.

Make The Dropshipping Business Model Work For You!

Now you know the basics of how to start dropshipping on Amazon and other platforms. Join the ranks of store owners who spend less time fulfilling orders and more time growing their businesses. What dropshipping websites have you found that make your business easier to run?

Are you looking for business ideas that don’t require a lot of money? We’ve found 27 low-cost small business ideas to inspire entrepreneurs. We’ll help you find the cheapest business to start based on your needs.

You might have to skimp on some of the best practices, like getting an LLC or business insurance, to get started faster, but with online business ideas and home-based business ideas, that isn’t an issue. These business opportunities will help you find something to start earning income quickly.

[su_note note_color="#dbeafc"] Use the links below to find low-cost start-up businesses.

• What Kind of Business Should I Start?
• What is the Cheapest Easiest Business to Start?
• What Business Can I Do with $100?
• What Business Can I Start with $500 Dollars?
• 3 Low-Cost Business Ideas with High Profit Potential
• Top 10 Small Business Ideas from Home That Are Cheap to Start
• 10 Unique Business Ideas You Can Start with No Money
• Which Business Idea Do You Like For Your Own Business?

[/su_note]

What Kind of Business Should I Start?

When you want to start a business with little money, the most important thing to consider is the cost of starting and sustaining the business. To determine the cheapest business to open, consider these factors: 

1. The equipment and the supplies you buy raise the cost.
2. Renting office space increases the cost. Many home business ideas are also good businesses to start with little money.
3. Traveling to job sites means you have additional costs like commercial insurance, general liability insurance, mileage, and travel time.
4. Most people won’t pay for learning.
5. Some businesses you can start without starting an LLC and getting tax IDs.

What is the Cheapest Easiest Business to Start?

A house cleaning business can be started with the supplies in your own home. Plus, you should already know how to do most of the tasks. That’s what makes a cleaning business the cheapest small business to start.

#1. House Cleaning Business

• Average Annual Revenue: $77K
• Average Profit Margins: 10.8%
• Startup Cost: $300-$5K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 2.4%
• Best for: Self-motivated, independent, and detail-oriented entrepreneurs

House cleaning is an easy start up business and can be grown into a lucrative business very quickly. What makes house cleaning such a good business idea is that it’s very versatile and has consistently high demand. You can also add on services like carpet cleaning, move-out cleaning, or AirBnB cleaning to expand your revenue streams. 

If you’re interested in starting your own business cleaning houses, the UpFlip 7-Figure Cleaning Business Blueprint will give you all the knowledge and resources you need. It’s taught by Chris Mondragon, who started Queen Bee Cleaning Services with $5,000 and has grown it to a revenue of $120,000 a month (see our interview with Chris).

[su_youtube url="https://www.youtube.com/watch?v=YcYIYdqegGA"]

House Cleaning Business Pros:

• Can start from home as a solo entrepreneur
• Revenue is scalable as you grow your cleaning team
• Low startup and overhead costs
• Consistently high demand  

House Cleaning Business Cons:

• Work can be stressful and physically demanding 
• Schedule is determined by when customers need cleaning

We’ll provide more easy to start up business ideas throughout this article.

What Business Can I Do with $100?

If you’re looking for good business ideas that you can start for $100 or less, consider some of these great business ideas.

• Social Media Marketing
• Open an Online Store
• Affiliate Marketing

All of these you can start with a computer which puts them on the shortlist for cheapest small business to start.

#2. Digital Marketing/Social Media Marketing

• Average Annual Revenue: $817K
• Average Profit Margins: 6.9%
• Startup Costs: $100-$10K
• Time To Revenue: 1-6 months
• Annual Market Growth Rate: 1.3%
• Best for: Social media experts, writers, and content creators, people with search engine optimization (SEO) expertise

Check out our interview with Jason on how he managed to build a social media marketing agency as a side hustle before it quickly grew into the six-that afigure business it is today.

[su_youtube url="https://www.youtube.com/watch?v=kb1czTEK8f8"]

Social media marketing is one of the best ways to engage with customers online, but many business owners don’t have the time or skills to do it right. A social media consultant helps other businesses get the most value from their social media accounts, either by giving advice or by creating social media posts and other online content that will attract their target customers. 

A social media or digital marketing consulting business is the best low-cost start-up business idea for those with an established online presence. That said, if you don’t already have this proof of your skills, it can be difficult to build trust and get those crucial first clients. 

This blog post has more tips on how to start a social media marketing business if you think you’d thrive as a social media consultant.

Eric Berman started his digital marketing agency, Brandetize, in 2001, and it now makes an average revenue of $400,000 every month (hear UpFlip’s interview with Eric).

Digital Marketing Pros:

• Minimal upfront costs
• Leverage your marketing skills for your own small business
• High profit potential
• Earnings per client increase as your reputation grows  

Digital Marketing Cons: 

• Can be difficult to attract clients when you first start
• Need to stay on top of trends and shifts in the industry

#3. Open an Online Store

• Average Annual Revenue: $60K-$120K
• Average Profit Margins: 5-15%
• Startup Cost: $100-$10K
• Time To Revenue: 30-90 days
• Annual Market Growth Rate: -9.3%
• Best for: Thrifters, collectors, hobbyists, and craftsmen

Opening an online store is among the most popular online business ideas because of its low barrier to entry. This is one of the best small business ideas for crafters, graphic designers, makers, and inventors, who can design and make their own products to sell online. 

That’s what Vlad Kiksenko did when he started TagPup, and his company making custom dog collars has become the #1 pet products store on Etsy (hear Vlad’s tips to start an Etsy shop in the interview below).

[su_youtube url="https://www.youtube.com/watch?v=7dqHBHA4AmU"]

You don’t have to make your own products to open an eCommerce store, either. Online reselling can also be a low-cost business, especially if you buy from thrift shops and garage sales. 

Mike Wilson makes up to $35,000 every month reselling on eBay, and he started off with just $1,000 worth of inventory (Mike shares his story in this podcast interview).

Online Store Pros:

• Easy to start and run from home
• Can make an income from hobbies you already enjoy
• Work where and when you want to
• Low-cost business to both start and run

Online Store Cons: 

• Can be difficult to attract customers, especially in crowded niches
• Will need to store, manage, and ship the items you’re selling 

#4. Affiliate Marketing

• Average Annual Revenue: $60K-$160K
• Average Profit Margins: 8%
• Startup Cost: $100-$2K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 10.5%
• Best for: Bloggers, YouTubers, those with a large social media presence

Instead of selling their own products, affiliate marketers promote products or services on behalf of other businesses. They make money on a commission basis each time a customer buys through them. It’s among the best low-cost business ideas for people with a big online following, especially those who already create popular content like a well-read blog or frequently watched YouTube channel. 

The flip side of this is that it can be difficult to make a living with affiliate marketing if you don’t have a way to promote products or services to a lot of people. 

For those who do have marketing skills or a big online presence, affiliate marketing can be very profitable. Matt Diggity used his SEO skills to grow his business to $400,000 a month in revenue (hear his story and tips in this podcast interview).

Affiliate Marketing Pros:

• Can be a mostly passive income source
• Can choose a niche that matches your interests
• Great way to monetize an existing online presence
• No inventory or space requirements

Affiliate Marketing Cons: 

• Can be difficult to earn trust from visitors
• Need a large online presence or strong marketing skills to be successful

What Business Can I Start with $500 Dollars?

Many businesses on this list you can start with less than $500, but you may have some challenges starting a landscaping business, pressure washing business, photography business, or vending machine business with such low cost. Keep reading for more cheap startup businesses.

3 Low-Cost Business Ideas with High Profit Potential

What is the cheapest, most profitable business? That depends somewhat on the skills and interests you bring to the table, but there are some low-cost businesses that anyone can grow into a highly lucrative venture. Here are three low-cost businesses to start that have a revenue potential of $100,000 a year or more.

#5. Lawn Care Business/Landscaping Business

• Average Annual Revenue: $272,790
• Average Profit Margins: 8.7%
• Startup Costs: $2K-$10K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 8.1%
• Best for: Designers, gardeners, people who like physical work and working outside

The lawn care industry is valued at more than $100 billion annually. Add in the low startup costs, and that makes a landscape or lawn care company a very accessible and profitable business idea. 

Have a look at how Nick Reed started his lawn care business from scratch, allowing him to bring in $200K in revenue while at the young age of 22.

[su_youtube url="https://www.youtube.com/watch?v=5BGA336bBIY&ab_channel=UpFlip"]

All you need to start a business is some basic equipment and a way to connect with customers, which you can do for free through social media channels. 

The landscaping business is a highly scalable low-cost business idea, whether you just grow a team in your first location or expand through franchising, like Mike Andes did with Augusta Lawn Care (hear his podcast interview).

UpFlip has an entire YouTube playlist of interviews with lawn care business owners if you want more insights. 

Lawn Care Business Pros:

• Low startup costs
• High profitability and scalability 
• Straightforward business model 
• Great for people who like working outdoors

Lawn Care Business Cons: 

• Can be a physically demanding job
• Need to store and transport heavy equipment

#6. Dropshipping Business

• Average Annual Revenue: $36K-$50K
• Average Profit Margins: 5%
• Startup Cost: $150-$500
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 25%
• Best for: Those with marketing and eCommerce skills

For those looking for an online small business idea you can start with just a few hundred dollars, dropshipping is ideal. You only need an internet connection to get started, and overhead costs are lower than other online stores because you don’t need to handle inventory. 

The most successful dropshipping business owners tend to also be great marketers. People who lack social media or marketing expertise can still excel, though they will likely need to budget for higher advertising costs to see the same profit returns. 

Just how much can you make as a dropshipper? Heather Johnson’s print-on-demand dropshipping store makes an average of $15,000 a month, and she started it with just $30 (hear how Heather grew her business in this podcast interview).

Dropshipping Pros:

• Easy business to start with little money
• High profit potential
• Flexible work hours and potential for passive income
• Can be started and run from home  

Dropshipping Cons: 

• No control over the product or delivery
• Need strong marketing skills to attract customers

#7. Pressure Washing Business

• Average Annual Revenue: $64K
• Average Profit Margins: 8.8%
• Startup Cost: $200-$5K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 0.9%
• Best for: Those that like to work outdoors, those that enjoy working with their hands, using machines and tools

If you’re looking for the best cheap business to start today, pressure washing should be on your list. All you need is a high-quality machine and you can start taking jobs. 

Just have a look at how Chase Lille, an 18-year-old who is now the proud owner of a lucrative pressure washing business.

[su_youtube url="https://www.youtube.com/watch?v=MNzuP6V0UhA&ab_channel=UpFlip"]

What makes pressure washing so profitable is that there are lots of niches you can fit into, from driveway cleaning to windows, roofs, and gutters. You can also take on commercial jobs for other local businesses, not just private homes.

Most pressure washing businesses are one-person operations, which makes the high profit potential even more impressive. You can check out this blog post for more info on how to get started or watch one of the video interviews we’ve done with successful pressure washing business owners to decide if this is your best next business idea.

Start with this video featuring Ryan Woods:

[su_youtube url="https://www.youtube.com/watch?v=RlyA0H5Y4G0"]

Then take a look at these other great interviews:

• 18 Year-Old Starts a $144K/Year Pressure Washing Business
• 16 Year-Old Starts a $4,500/Month Pressure Washing Business

If you want to learn more, check out this podcast episode where we talk to Stephen Rogers, owner of NW Softwash, about how he started and grew his pressure washing business. 

Stephen was only 19 when he started the business in 2019, and within the first year had enough employees he could get “off the truck” and focus on strategic growth. Today NW Softwash brings in a revenue of $120K/month. Listen to his interview below:

Pressure Washing Pros:

• Straightforward business model that anyone can start
• Easy to run as a solo entrepreneur
• Low startup costs and overhead
• No specialized skill sets required

Pressure Washing Cons:

• Requires manual labor, sometimes in unpleasant conditions
• Need to store, maintain, and transport heavy equipment

Top 10 Small Business Ideas from Home That Are Cheap to Start

#8. Vending Business

• Average Annual Revenue: $182,100
• Average Profit Margins: 4.3%
• Startup Cost: $2K-$10K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 0.5%
• Best for: Those that like to tinker with machines, mechanics, and those that enjoy driving

Vending is both a low-cost business idea and a great option if you want scheduling flexibility, or to run your own business from home. It’s flexible enough it can be started as a side hustle, which is what Benjamin Smith did when he started Friendship Vending Company (hear how he started in this interview).

Of course, if you do have more money to invest, you can grow your new business faster. Adam Hill bought an existing route for $120,000 and grew it to $50,000 a month in revenue working just 20 hours a month. He shared his insights in an UpFlip blog post and is the instructor of the Vending Bootcamp, which gives other entrepreneurs the knowledge they need to start a business in vending and grow it to its full potential. 

[su_youtube url="https://www.youtube.com/watch?v=-s_Y-O1nosw&ab_channel=UpFlip"]

A vending machine business is a great choice for entrepreneurs who want full control over their work-life balance. In this episode we talk to Adam Hill, owner of Hill Vending, to hear his advice on how to start a vending machine business.

Vending Business Pros:

• Lower time commitment than other small business ideas
• Easy to grow revenue by adding more machines
• Low costs (both startup costs and ongoing)
• Don’t need extensive marketing experience or other specialized skills

Vending Business Cons: 

• Can be difficult to find clients if your market is already saturated 
• Need many machines in good locations to see a high profit

#9. Online Courses

• Average Annual Revenue: $30K-$50K
• Average Profit Margins: 13.10%
• Startup Cost: $100-$1K
• Time To Revenue: 1-6 months
• Annual Market Growth Rate: 8.5%
• Best for: Teachers, professors and educators, those who love to share skills or teach.

Creating online courses lets you make a living sharing your skills and knowledge. And you don’t need to be an expert in anything to excel. Jacques Hopkins played piano as a hobby before he started Piano in 21 Days, and he’s grown that course into a $40,000 a month business (hear how Jacques did it in this interview).

There are many online teaching platforms where you can sell online courses without needing any technical skills or even having your own website (though setting that up can help you reach more students faster). The most popular include Kajabi, Udemy, and Teachable, all of which come with a built-in potential audience and marketing automation tools to help you build your audience. 

Online Course Pros:

• Very low startup costs
• No technical knowledge required 
• Low ongoing time investment once the course is live

Online Course Cons: 

• High upfront time investment before you start making revenue 
• Can be competitive and difficult to attract students to a new course

#10. Delivery Services

• Average Annual Revenue: $131K
• Average Profit Margins: 3.6%
• Startup Cost: $100-$9.5K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 6.7%
• Best for: Drivers, those that like to socialize

Many people today have more on their plate than they have hours in the day. With a delivery business, you can profit from people’s need for convenience by going grocery shopping, picking up restaurant orders, or delivering other day-to-day needs for free. If you have a large vehicle like a truck or van, you can add hard-to-transport furnishings and other items to the list of things you can deliver. 

This is also an excellent way to collaborate with other local businesses by delivering their products to customers. That’s what Adam Haber did when he started Trellus, and they’ve now made more than 35,000 deliveries (hear how Adam got started in this interview).

Delivery Business Pros:

• Low-cost business to start and run
• Can be run easily from home
• No need for inventory, equipment, or specialized skills

Delivery Business Cons: 

• Need a fast and reliable form of transportation
• Work hours are determined by when people need items delivered

#11. Mobile Detailing

• Average Annual Revenue: $73,100
• Average Profit Margins: 16.1%
• Startup Cost: $500-$5K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 1.0%
• Best for: Car enthusiasts, detail-oriented entrepreneurs and those that enjoy working with their hands

A detailing business is the best business idea for car enthusiasts, though anyone who’s good at cleaning can make a high revenue in this industry. Making it a mobile detailing business is convenient for customers and cuts down on upfront costs since you won’t need a commercial garage–you clean customers’ cars at their home or workplace. 

See how Alan, owner of GoDetail, started with just $500 to make some extra money before the business evolved into a profitable business that makes over $900K per year in revenue with 60% profit margins.

[su_youtube url="https://www.youtube.com/watch?v=riTWH_MG6Uc&ab_channel=UpFlip"]

Another entrepreneur, Isaiah Barhoum started Big’s Mobile Detailing with just $500 and he’s now bringing in more than $30,000 a month (find out how he did it in this YouTube interview).

He’s sharing his strategies for scaling a mobile detailing business on this podcast episode.

Mobile Detailing Pros:

• Can be run out of your home since it’s mobile
• No specialized skills or knowledge required
• High demand 
• High profit potential that’s scalable if you grow your team

Mobile Detailing Cons: 

• Work can be physically demanding or tedious
• Often work on weekends or evenings when customer cars aren’t being used 

#12. Software or App Development

• Average Annual Revenue: $400K-$1M+
• Average Profit Margins: 14.5%
• Startup Cost: $100-$50K, depending on size and scope
• Time To Revenue: 3 months to 2 years
• Annual Market Growth Rate: 3.1%
• Best for: Programmers, developers, and software engineers

For those who understand programming languages and the basics of software design, creating and selling your own app or software program is one of the top low-cost business ideas. Pace Ellsworth shared how he built his company, App-to-Exit, to $45,000 a month in revenue in a podcast interview, if you’re looking for more insights.

Software Development Pros:

• Potentially low time investment once the app is launched
• Can be started and run from home
• Revenue potential increases the more programs or apps you release

Software Development Cons: 

• High time investment before you see a return
• Requires programming and developer skills

#13. Handyman Business

• Average Annual Revenue: $204,700
• Average Profit Margins: 5.4%
• Startup Costs: $500-$5K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 0.7%
• Best for: Fixers and repair experts, entrepreneurs who like working with their hands

From clogged gutters to dripping sinks to squeaky or sticky hinges, there are lots of little tasks around the average home, and not everyone has the time or skills to take care of them. If you’re good at fixing things and have some basic tools, a handyman business can be among the most successful small business ideas. Hear how North Seattle Handyman makes $1,000 a day in this YouTube interview. 

[su_youtube url="https://www.youtube.com/watch?v=leUta_q_MPQ&t=3s"]

Handyman Business Pros:

• Tools you’ll need are affordable and easy to transport
• Easy to start and run from your home  
• Can run as a one-person business or scale by building a team

Handyman Business Cons: 

• Often involves physical work and manual labor
• Work hours can be long and unusual

#14. Web Design

• Average Annual Revenue: $239K+
• Average Profit Margins: 5.3%
• Startup Cost: $100-$1K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.4%
• Best for: Designers, programmers, or anyone with website building skills

These days, every small business needs a website. Designing these sites is among the best low-cost business ideas for entrepreneurs with graphic design or web development experience. You don’t even need these skills if you’re experienced with Wordpress or a similar website building platform, though it’ll definitely be a value-add for customers if you can design custom graphics, layouts, or other features for their sites. 

Web Design Pros:

• Easy to start and run from home
• Work at your own pace when you want to
• Lots of customer demand
• Free online learning resources to expand your skills and value

Web Design Cons: 

• Will need a portfolio of sites or online reputation to acquire clients
• Online trends and technology change quickly 

#15. Mobile Photography

• Average Annual Revenue: $44K
• Average Profit Margins: 7.3%
• Startup Cost: $5K-$15K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 0.3%
• Best for: Photographers, artists, designers and those that like to socialize

A mobile photography business isn’t the absolute cheapest business to start up, but the upfront costs are significantly lower than opening a brick-and-mortar studio. Most of those initial costs are equipment, so if you already have a high-quality camera you won’t need to spend much to grow a business around it. 

Photography is among the best local business ideas because there are so many niches where you can differentiate yourself. From wedding and event photography to family portraits to working with real estate agents or other small business owners, there’s a wide variety of work available. Mile High Productions turned their love of photography into a $35,000 a month business. Find out how in this YouTube interview. 

[su_youtube url="https://www.youtube.com/watch?v=EUcv1HAAbns"]

Check out our interview with a wedding photographer that makes $2 million per year.

Mobile Photography Pros:

• Wide variety of work available
• Can be a solo business or scaled with a team
• Get to meet a lot of people and help them make memories or grow a business
• Turn your artistic passion into a career

Mobile Photography Cons: 

• Professional photography equipment can be costly 
• Less control over when you work than other home businesses

#16. Data Entry

• Average Annual Revenue: $35K-$50K
• Average Profit Margins: 10.5%
• Startup Cost: $100-$200
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.9%
• Best for: Detail-oriented people, those with administrative, clerical, or similar experience

Most business owners have a lot of data they need to keep track of, but what they don’t have is time to record and analyze it. Instead, they turn to data entry professionals. Data entry may not be the most glamorous or exciting career, but if you’re a fast typer with a sharp eye for detail, you can make a consistent living doing it.

Data Entry Pros:

• Easy work
• Pay depends on accuracy and typing speed

Data Entry Cons: 

• Most data entry is automated
• Most people don’t type faster than 40 words per minute

#17. Virtual Assistant Business

• Average Annual Revenue: $35K-$50K
• Average Profit Margins: 10.5%
• Startup Costs: $100-$200
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.9%
• Best for: Outgoing and social entrepreneurs; those with strong scheduling, time management, and problem-solving skills

Data entry and VA businesses are in the same NAICS code so business owners will see similar profit margins. Being a virtual assistant is a simple business idea that just about anyone can do. 

Virtual assistants handle clerical tasks for clients, like answering emails, managing social media accounts, scheduling meetings, and other day-to-day things. You can start a VA business quickly for free just by signing up for a freelance platform like Upwork, Fiverr, or 24/7 Virtual Assistant.  

Virtual Assistant Pros:

• Most work is fairly easy
• Low barrier of entry
• Highly skilled VAs are invaluable

Virtual Assistant Cons:

• Language barriers
• Effectiveness of Standard Operating Procedures

10 Unique Business Ideas You Can Start with No Money

The absolute cheapest way to start a business is if you don’t have to pay anything at all. That might seem like a pipe dream, but the truth is there are lots of businesses you can start completely free. If you’re looking for the best business to start with no money, the options below are a great place to start. 

#18. Pet Sitting or Dog Walking Business

• Average Annual Revenue: $34,380
• Average Profit Margins: 16%
• Startup Costs: $500-$5K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 1.7%
• Best for: Pet owners, animal lovers, those who like working outdoors

Two-thirds of U.S. households owned at least one pet in 2023. That means millions of dogs, cats, birds, and other animals that need to be cared for, even when the owners are traveling, at work, or otherwise unavailable to do so. This consistent demand is what makes a pet sitting or dog walking business a great option for entrepreneurs who love being around animals.

While some exotic pets have complicated care requirements, you don’t need any special skills to take care of a dog or cat–and if you do know how to care for birds, horses, reptiles, tropical fish, and other unique pets, those can add even more value to your services. 

The best part is, customers want you to come to where their pets are, and they’ll provide all the supplies you’ll need. All you need to do to start is connect with customers. Having your own website can help, and you can also find people who need dog walkers or pet sitters on marketplaces like:

• Rover - The largest network of pet owners looking for pet sitting and care
• Care.com - Marketplace for child and pet care services
• Wag! - Platform that connects pet owners with dog walkers and sitters

Dog Walker Pros:

• Easy to find work
• Work with pets

Dog Walker Cons: 

• Low pay
• Low barrier to entry
• Live animals suffer if you no-show

#19. Personal Training Business

• Average Annual Revenue: $16,867
• Average Profit Margins: 10.9%
• Startup Costs: $500-$5K
• Time To Revenue: 1-6 months
• Annual Market Growth Rate: 0.6%
• Best for: Fitness buffs, exercise experts, people who excel at motivating others

A personal trainer works with individuals one-on-one to help them lose weight, get healthier, or prepare for athletic events and competitions. The main things you need to become a personal trainer are an ability to motivate people and experience with exercise. For athletes and gym rats, it’s the best business to start with little money. 

You don’t need to open your own gym to be a personal trainer. You can start off working with people in their homes, reserve space in a community center, or even teach classes online and work with clients via Zoom.

Personal Trainer Pros:

• Get paid to help others stay healthy
• You control your hours

Personal Trainer Cons: 

• People flake on exercise commitments
• May need expertise in treatment of certain physical conditions

#20. Personal Concierge Business

• Average Annual Revenue: $31,400
• Average Profit Margins: 1.9%
• Startup Cost: $100-$1K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 10.5%
• Best for: Those that like to socialize, plan or organize for others

A personal concierge helps busy people make plans and accomplish tasks they don’t have time to think about. People might ask a personal concierge to plan a trip, make dinner reservations, schedule home repair or maintenance, do their grocery shopping, or a host of other small tasks.

You don’t need any specialized training to become a personal concierge. Instead, you’ll need skills like time management, communication, problem solving, and strong organization. Having a lot of knowledge about your local area can be helpful, too.

Concierging Pros:

• Help people get perks
• Great networking opportunities
• Tips

Concierging Cons: 

• You have to be nice even on bad days
• Sometimes people are rude

#21. Tutoring Business

• Average Annual Revenue: $18,170
• Average Profit Margins: 13.10%
• Startup Cost: $100-$1K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 8.5%
• Best for: Teachers, educators, professors and tutors

Did you do well on tests in school? Any subjects where you’re particularly skilled or have niche, in-depth knowledge? Then tutoring is among the best small business ideas you can start with a minimal upfront investment. 

Unlike school teachers, tutors don’t need to be certified or licensed to work with students (though having this kind of credential can help build trust with potential students). The main things you’ll need are patience, empathy, and strong communication skills, along with knowledge in the subjects you teach.

One great way for tutors to find new students is to go through one of the internet’s many online teaching platforms. Here are some of the most popular:

• Skooli - For tutors who have a Bachelor’s degree or teaching certification in math, English, science, or business
• Wyzant - Platform to connect students with both in-person and online tutoring services
• eTutorWorld - Tutoring and test prep for K-12 students
• TutorMe - Fully-remote 1:1 tutoring 

Tutor Pros:

• Help people learn
• Work with people who are trying to improve

Tutor Cons: 

• Some people are forced to go to tutoring
• Seasonality

#22. Event Planning Business

• Average Annual Revenue: $34,380
• Average Profit Margins: 12.2%
• Startup Costs: $500-$5K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 1%
• Best for: Strong networkers, great party planners, outgoing and social entrepreneurs

Event planners organize large and important events. These could be celebrations like weddings and other personal milestones or professional events like conferences. If you’re an excellent networker, love problem solving, and are highly organized and detail-oriented, an event planning business can be both lucrative and rewarding. 

Event Planner Pros:

• Can be a lucrative service business
• Quick pace
• A smoothly-run event brings a lot of satisfaction

Event Planner Cons: 

• Hectic
• Planners need to make friends with Murphy’s Law

#23. Professional Organizer

• Average Annual Revenue: $168,360
• Average Profit Margins: 10.6%
• Startup Cost: $1K-$100K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.2%
• Best for: Those that like to organize, clean and declutter, those who like to socialize and help people

If you love bringing order to chaos, you’ll thrive as a professional organizer. Organizers go to clients’ homes, so while you’ll need a reliable form of transportation, you won’t need an office space outside your home. Creating your own website or posting success stories on YouTube, Instagram, or Pinterest can help you show your skills and build your client list. 

Organizing Business Pros:

• People appreciate the new space
• Combines creativity and construction

Organizing Business  Cons: 

• Some homes are horribly messy
• Limited demographics can afford the service

#24. Personal Chef

• Average Annual Revenue: $129K
• Average Profit Margins: 51.7%
• Startup Costs: $500-$5K
• Time To Revenue: 1-6 months
• Annual Market Growth Rate: 0.9%
• Best for: Cooks, chefs, bakers, and other culinary experts

This is one of the top business ideas with low upfront costs for chefs, line cooks, and other food service workers who want to start their own venture. Personal chefs cook with the client’s equipment and ingredients, reducing expenses compared to a food truck or restaurant.

The downside is you usually don’t get as much creative freedom over what you’re cooking, but for many that trade-off is worth it for lower costs and fewer hours. You can also add revenue streams like online cooking classes or event catering if you want to grow your brand as a chef.

In-Home Chef Pros:

• Pay is better than many restaurants
• Less chaotic work environment than most restaurants
• More freedom of menu

In-Home Chef Cons: 

• Schedule keeps you away from friends and family dinner events
• Target demographic limited to top 5% of households

#25. Freelance Writing

• Average Annual Revenue: $712K
• Average Profit Margins: 14.6%
• Startup Cost: $100-$200
• Time To Revenue: 1 month to 3 years
• Annual Market Growth Rate: -1.5%
• Best for: Creative entrepreneurs with strong communication skills

A freelance writer can produce all kinds of content. You can be a ghostwriter who writes novels, memoirs, and other book-length works, or write articles for newspapers and magazines. Another option for a freelance writer is to create blog posts, marketing copy, and other text for businesses. 

Whatever your interests or writing style, you can find freelance writing jobs that fit it. The Write Life has a list of job boards and other resources that you can explore to see what kind of work is out there. 

Writer Pros:

• Great alternative for antisocial people who have teacher-like nature
• Low startup costs
• Easy to get into
• Great money

Writer Cons: 

• Learning SEO can be challenging for many
• Clients don’t know what they want (good ones do)
• AI is impacting demand, efficiency, and pricing

#26. Translation Service

• Average Annual Revenue: $75K-$200K
• Average Profit Margins: 12.4%
• Startup Cost: $100-$200
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.2%
• Best for: People who speak more than one language

For those fluent in more than one language, translation is among the best businesses with low startup costs you can start. The most in-demand languages to translate to and from English are Arabic, French, German, Japanese, Mandarin, and Spanish, and you can see even higher revenue if you’re fluent in three or more languages. 

Translator Pros:

• High demand
• Specialized skill set increases job security
• Needed at all levels of government and business

Translator Cons: 

• Mostly in-person due to software like Google translate
• Pay varies based on the type of organization
• Technology may replace the need for translators

#27. Nanny or Babysitting Business

• Average Annual Revenue: $143,110
• Average Profit Margins: 0.9%
• Startup Cost: $0-$1K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 51.7%
• Best for: Those that enjoy childcare and like children

There’s a reason so many teenagers make money babysitting: it’s cheap to get started and lots of people need the service. Many parents today look for sitters through online marketplaces that verify the background and experience of the sitters on their site. Some of the most popular platforms include Sittercity, UrbanSitter, and Helpr. Just register with one or more of those platforms and you can start your babysitting or nanny business. 

Babysitter Pros:

• Great entry-level position
• Kids are hilarious
• Long-term gigs can be highly profitable

Babysitter Cons:

• Kids can be super sneaky
• You’re taking care of the most important thing in your clients’ lives
• Always have to be on your best behavior

Which Business Idea Do You Like For Your Own Business?

If you’re looking to start a business with little to no upfront investment, we’ve given you plenty of ideas. There are gigs that require no experience, ones you can expand to a team endeavor, and even those to which you can devote just a few hours a week and still make a pretty nice profit.

Did one of the above ideas resonate with you? 

What’s your next step? (We suggest you learn how to write a business plan).