Tired of trading time for money? It’s time to make your money (or skills) work for you. I know that sounds too good to be true, but there are millions of people out there who have mastered this trick. Why can’t we? Passive income is not just a buzzword when it actually works. In practical terms, passive income is a generated income that requires upfront effort but minimal maintenance.
You won’t get rich quick with these passive income ideas for entrepreneurs. In fact, it will probably take a little time to start generating any money from passive income. But it is possible. And these 10 passive income ideas still work in 2025.
Why Entrepreneurs Need Passive Income Streams
Here’s the sad truth: business income isn’t always consistent. You can have a fantastic month of sales and the very next falls off. This is where passive income creates stability. You may not rely fully on your passive income (although many are able to!), but you can develop a diverse portfolio of income streams that help boost your bank account.
If you haven’t heard before, here’s a fact you need to know: diversification = financial resilience. It can be impossible to predict how a single income stream will perform in the future. You might lose your job, the product you sell could become irrelevant, or any other number of factors could impact your bank account.
With passive income streams, entrepreneurs are more capable of preparing for the future. A passive income stream could fund growth, pay for a sabbatical, or even counterbalance the slow seasons. Passive income streams can’t be seen as a buzzword if you’re serious about financial security.
10 Proven Passive Income Ideas That Still Work in 2025
There are many passive income ideas out there today. In fact, if you’ve researched this before, you have probably seen some of these before. In this list, I want to give you the straight-up truth. You won’t get inflated numbers, and I won’t lie to you and say it’s easy. You still have to do the work to create and sell these things.
Let’s dig in and see which one sparks your interest.
1. Create and Sell a Digital Product (eBook, Template, Course)
Listen – or, read, closely. Too many people think that they can make it big in selling ebooks with the ease of access to AI. Here’s the problem with that thought: AI doesn’t have the personality to create well-written books. Unless you know how to program your AI to write like a real, life-experienced human being, you are better off writing this on your own.
I read almost half of a book the other day that I could not get through because it was so obviously AI – and it was so boring. There were no real-life anecdotes, no personal touches, nothing. I kept thinking, this cannot be a human being! So, I checked the author’s other books and discovered about 12 that have been released in 2025. It’s only May. To release a dozen 200+ page books in less than 5 months is a huge indicator.
If you’re putting AI books out with your name on them and not making them worth the effort, you’re risking your name for some crappy books. Don’t do it.
Do it right. Write the ebook. Create the template. Do the course from start to finish. If you want to use AI, I get it! But don’t use AI for 100% of your work.
Your digital product can generate thousands of dollars when you do it right and learn how to sell it.
2. Monetize a Blog with Affiliate Marketing
Full disclosure: I have a failed blog or two under my belt, so trust me when I say this one can be pretty challenging. However, if you can nail down SEO within your niche, you can build up some long-term traffic that keeps visitors coming to your site.
With more visitors comes more opportunities to earn. You could be an affiliate marketer with Amazon or ShareASale. Or, you can push your own digital products for increased sales for your first passive income idea.
I took an SEO course called Stupid Simple SEO. I’ve also read books on the topic. So, while I haven’t completely mastered it, I have a pretty good understanding of the process. One thing I learned is that you can’t typically expect a brand-new website to garner high levels of traffic. It can take a year or more, so be realistic in this expectation.
Blogs can become real cash cows if you’re patient and do the work to learn effective SEO.
3. Start a Print-on-Demand Business
There are a number of platforms that don’t charge you until purchases have been made. Sounds ideal, right? It is! Just be sure that you’re ready to market your products to make those sales. Set up your items on Printful or Gelato – you can design your own t-shirts, coffee mugs, hats, and more.
The most significant benefit is that there’s no inventory and a minimal startup cost.
If you want to thrive with a print-on-demand business in 2025, go for products that have lifestyle quotes, niche humor, or are faith-based. With the right marketing, you could do well with this passive income.
4. License Your Content, Photos, or Art
Your content, photos, and art can be licensed for others to use. This might be stock photos (like those on Unsplash or Adobe Stock), music, videos, or even designs. If you license your content, you can earn royalties on your products long after uploading! It’s like the gift that keeps on giving.
5. Invest in Dividend-Paying Stocks or REITs
If the idea of making money while you sleep sounds like a dream, dividend-paying stocks and REITs (Real Estate Investment Trusts) might be your new best friends.
Here’s the deal: some companies share their profits with investors by paying out dividends—small cash payments just for holding their stock. Think of it as a little thank-you for investing in their business. These payouts typically arrive every quarter, and while they might start small, they can really add up over time—especially if you keep reinvesting them.
REITs work a lot like this too, but instead of owning part of a company, you’re investing in real estate—without having to buy a property yourself. REITs own things like apartment buildings, shopping centers, and office spaces, and they pass on a portion of the rental income to investors.
The best part? You don’t need thousands of dollars to get started. With just a small amount and a little consistency, you can begin building a stream of truly passive income that grows with you.
With that in mind, research this before jumping in – risk is involved.
6. Create a YouTube Channel with Evergreen Videos
Monetizing a YouTube channel takes a lot of effort, but once you’ve cracked the code, you can make a pretty penny. The key is to post niche content that drives traffic forever: tutorials, how-tos, and reviews are common videos that generate a lot of views over time. With AdSense generating a portion of the cash, affiliate links can make up some additional cash to add to your pocket.
7. Develop a Mobile App or Tool (Outsource It)
Do you have an idea for an app or a tool? You don’t have to have coding knowledge to create one. There are no code tools, like Bubble or Glide, that make this more accessible. Or, you could pay someone to create it on Fiverr or Upwork. Monetize the app with ads, subscriptions, or licensing; you’ve got a little passive income!
8. Rent Out Something You Own
Do you have things people can use? Maybe you don’t drive your car every day or have an empty bedroom. Maybe you have gear or tools that people could rent from you. While renting out things you own is a semi-passive income idea, it is low effort. Find apps like Turo, Airbnb, or Fat Llama to list your items easily.
9. Write and Publish a Book (or eBook)
Writing a book is no easy feat, especially if you want to put something out there to be proud of. However, after you’ve written the book, you can have passive income that lasts a long time. With modern technology, you don’t even need to find a literary agent or publisher to work with. There are several self-publishing platforms to choose from, including Amazon KDP and Draft2Digital.
Note: Nonfiction works within your niche will sell best. Is there something you’re especially knowledgeable about that can serve others? Maybe you created an effective morning routine or can develop leadership habits well. Find something to share that others want to learn.
10. Build a Membership or Subscription Community
A membership or a subscription community can take some time to build and make profitable, but it can be worth it in the long run. It’s also a bit less passive, as you need to offer something consistently to your subscribers. This might be exclusive content, templates, or group coaching. The most well-known platform for this is Patreon, but there is also Substack and Mighty Networks.
How to Choose the Right Passive Income Stream for You
The best passive income stream involves several factors. The time you have available to work on it, your skills, how much money you plan to spend, and your niche all play into the best passive income option.
If you’re looking for the right passive income ideas for entrepreneurs, you may need to test multiple streams slowly. While one or two might seem ideal, you have to see what works for you. Consider what it would look like to spend a lot of time but only get a small amount of money. Which option would you be able to spend little time on but still garner a lot of money?
The best option is subjective.
Common Myths About Passive Income
- Passive income requires little effort!
- FALSE! Just because you can leave it alone and it will still generate an income doesn’t mean it doesn’t take any work. Passive income can never be completely hands off, because it starts active. All of the work is done early on.
- You need a lot of money to get started.
- FALSE! Passive income can start with little money. Some can even be done with no money. It all depends on which passive income idea you choose and how you go about selling it.
- Everyone can make thousands a month FAST!
- FALSE! While it’s possible, it isn’t common. You must have some selling skills and offer a product that people want. It can require market research and a lot of effort that not everyone is willing to put in.
Conclusion
You want to make money while you sleep. Who doesn’t? The truth is, it is entirely possible. It is also true that it isn’t always easy. These 10 passive income ideas for entrepreneurs work only when done well. Building passive income for entrepreneurs takes time but pays dividends in freedom and flexibility.
Choose one idea to start this month. Just one! Play around with it and see how you do! If you want to chat about it, schedule a FREE consulting call!