Passive Income Business Ideas are on the rise in the U.S. They've become incredibly popular not only because they bring in some extra cash, but because they're an excellent jumping-off point for aspiring entrepreneurs who dream of running their own businesses full-time. In this guide we make creating a passive income business easy.
Best Passive Income Business Ideas
We’ve broken down our top passive income business ideas into seven categories and ranked their startup costs, required skill level, and earning potential to help you decide which side-hustle is right for you.
1. ECOMMERCE STORE
If you are looking for a way to provide people with goods and services they need, an eCommerce store may be the right business for you. eCommerce stores make a real difference in people’s lives by creating access to a variety of goods and services at low prices. You should have some knowledge of web design, marketing, internet security, and computer programming to get things started, and you’ll need a moderate amount of seed money to cover your website, servers, any employees, marketing, and other business services.
However, with online shopping growing more popular by the day, there are few limits to the growth potential of an eCommerce business if you find the right product or niche.
Learn how to start an eCommerce store.
2. ETSY STORE
Anyone who enjoys making handmade goods or finding vintage items may enjoy running an Etsy business. This is an excellent outlet for artists looking to sell their work, or anyone who’s passionate about producing and selling well-crafted goods. Sellers must have the skills required to find or create the products they sell, basic computer skills, and experience with marketing and/or advertising to help promote their products.
These basic skills plus a strong entrepreneurial spirit can convert your hobby into a lucrative business opportunity. While you may opt for a limited part-time gig, earning potential is real, with some sellers bringing in six figures. Etsy even offers a program to help sellers launch an independent website as their business outgrows the platform.
Learn how to start an Etsy store.
3. EBAY STORE
This job is great for motivated self-starters who want a flexible schedule and are already familiar with eBay. Knowing what sells well, how to best price products, and how to get your listings noticed will promote success in this business. It’s also a business you can build around your personal interests and experience, making it both fun and lucrative.
Growth potential is limited only by the time and scope of the seller. Finding a specialty or niche area selling popular products you’re passionate about is a great strategy for success. With low startup and maintenance costs, there is virtually no limit to your earning potential once you get things rolling.
Learn how to start an Ebay store.
4. MUSIC LESSONS BUSINESS
People who are passionate about music and can play at least one instrument may be interested in starting a business giving music lessons. Music teachers and band members are great candidates, but must have enough time to dedicate to their lessons. You will need to be highly skilled at playing the instrument you choose to teach and able to market yourself effectively to bring in clients.
Getting started, however, requires little more than an instrument and a place to hold lessons. Many instructors teach right out of their homes, making startup and maintenance costs extremely low. You may choose to remain small or expand to include several instructors specializing in various instruments. In this case, the potential to grow your business locally, and even nationally, is great.
Learn how to start a music lessons business.
5. ART LESSONS BUSINESS
Teaching art lessons is an excellent business venture for artists of all kinds looking to share their talent with others. Art instructors should also ideally have some teaching experience and enjoy working closely and connecting with people. While formal education isn’t a requirement, a degree in an art-related field can be helpful for finding clients.
Startup and maintenance costs will vary depending on where you teach and what materials are necessary, but generally, costs are low. The art industry is expected to grow slowly but steadily over the next decade, making art instruction a fairly stable business choice. Because instructors can charge fairly high hourly rates to share their expertise, there’s the potential to make significant profits, with some instructors earning six figures annually.
Learn how to start an art lessons business.
6. FASHION CONSULTING BUSINESS
Fashion consulting is a great opportunity for anyone with an eye for fashion and a desire to share their passion with others. Many clients are simply looking to shake up their wardrobe or stay on trend. However, it’s possible to market to a variety of people from job applicants looking to dress to impress to those simply hoping for more likes on Instagram. This is a great fit for those with previous fashion retail experience.
While not required, a degree in fashion can also be helpful. This business offers modest growth and good earning potential as the fashion industry continues to experience steady growth. The average fashion consultant brings in $53,000 per year, with the opportunity for much more depending on your client base.
Learn how to start a fashion consulting business.
7. RELATIONSHIP COACHING BUSINESS
Relationship coaching is another business that’s great for the extroverted people-person who enjoys working with others. Good listening skills and an empathetic manner are essential for succeeding in this business. Former coaching experience and formal education in a related field, such as psychology, are generally required. With the national divorce rate around 50%, relationship coaching is a high growth industry.
Couples are always looking for ways to work through their problems to save their relationship, and a successful relationship coach can grow their business exponentially by establishing a good reputation and earning word of mouth referrals. Earning potential is also high, with hourly rates ranging anywhere from $50-$300 per hour depending on your experience, services, and geographic region.
Learn how to start a relationship coaching business.
8. LIFE COACHING BUSINESS
Any motivated and people-oriented person who has found effective ways to achieve their goals can make a good life coach. The success of a life coaching business depends entirely upon the business owner’s ability to connect with and assist other people, so experience working with a broad range of people is important. Obtaining relevant certifications can also help establish credibility and expertise.
Many life coaches start their businesses by working part-time during non-business hours while staying employed part- or full-time. They may then transition to coaching more as the business grows. Because you are your brand, the growth potential is somewhat limited. It’s common to garner a reputation within a geographic region or an industry, which will ultimately define how large a business can become.
Learn how to start a life coaching business.
9. TUTORING BUSINESS
This business is ideal for current and former teachers looking for part-time or full-time work, but anyone who enjoys working with people and has knowledge or skills to share can succeed as a tutor. Tutors should be skilled and experienced in the field they choose and have the ability to effectively market themselves to find clients.
While tutoring side hustles are limited in their growth potential, depending on your field of specialization, experience, and skill level, you can bring in respectable profits with minimal ongoing expenses. Depending on your hourly rate and number of clients, you can expect to bring in between $40,000-$60,000 annually.
Learn how to start a tutoring business.
10. PERSONAL TRAINING BUSINESS
Personal training businesses are an excellent opportunity for people who are passionate about fitness. Being able to work with a diverse clientele at various places on their fitness journey is essential. Compassion, understanding, and the ability to tailor workouts to your specific clients can make a personal trainer stand out among the rest. Startup and maintenance costs are manageable.
Trainers will need to receive certification, purchase liability insurance, and advertise their services. If you’re training people at their health clubs, you’ll need to pay any monthly membership fees required, though this cost can easily be built into your hourly rate. The growth and earning potential are good for personal training side hustles, as fitness continues to become a higher priority. Trainers bring in an average of $50,000, with room for much more based on availability, services, and geographic area.
Learn how to start a personal training business.
11. GRANT WRITING BUSINESS
Grant writing can be a rewarding business venture for skilled business writers with experience in the nonprofit world. You’ll need strong attention to detail and the ability to be flexible and creative to write successful proposals. There is a great deal of competition for grant money, so those who can make a name for themselves as particularly effective will be best positioned to win new business.
For those able to earn a positive reputation and build a solid client base, there are significant opportunities for growth and respectable earning potential. The average annual income for grant writers is $45,000.
Learn how to start a grant writing business.
12. TECHNICAL WRITING
Anyone with technical knowledge and writing skills may consider starting a technical writing business. It’s not an especially competitive market, so those with the necessary skills should be able to break into the field fairly easily. While formal education isn’t required, those with degrees in relevant fields will have a greater chance of earning clients.
More important though, is experience in technical writing. Building a solid portfolio of quality work is the key to success in this field. Someone who loves to write and can easily adapt and conform to a company’s style has a potential for growth limited only by their own schedule and workload capacity. Once you’ve established yourself in the business, there’s the potential to average around $70,000 per year with enough work and the right clients.
Learn how to start a technical writing business.
13. DATA ENTRY BUSINESS
Data entry businesses are great for detail-oriented people looking for a stable business venture with the potential to expand. Whether you hire employees or go it alone, you should be extremely comfortable using a variety of popular spreadsheet and word processing programs.
A small business with just one or two people will typically take on a handful of clients and establish a relationship with them that lasts for years. Many businesses remain small like this forever, while others can grow into highly profitable global ventures.
Learn how to start a data entry business.
14. PROOFREADING BUSINESS
For the grammar lovers among us, a proofreading business can prove both satisfying and lucrative. As a proofreader, you are concerned not with what your clients are trying to communicate, but rather how accurately they convey it in terms of spelling, punctuation, typographical errors, and word usage.
This is one of many great side business ideas for those with writing and editing experience, both academically and professionally. While a degree can help, it’s not required. Professional proofreading has picked up with the advent of self-publishing since independent authors cannot rely on their publishers for this service. With extremely low startup costs, those able to carve out the right niche and client base can build a successful career in this field.
Learn how to start a proofreading business.
15. FREELANCE WRITING BUSINESS
Freelance writing is a great business venture for both established writers and those hoping to break into the field. Self-starters with the time, skills, and motivation to seek out clients and meet tight deadlines will thrive. The vast number of online publications means that no matter your writing style or area of expertise, you are likely to find clients who can use your services.
There are also still plenty of opportunities for freelancers looking to write for more traditional offline publications like newspapers, magazines, and journals. Beyond the cost of your computer, wifi, and advertising the startup and maintenance costs are almost nonexistent. With low costs and great growth potential for those able to find constant or long-term clients, earning potential is good. Established freelance writers can bring in an average of $30,000-$50,000 annually.
Learn how to start a freelance writing business.
16. TRANSCRIPTION BUSINESS
This side hustle is great for those who like to work at their own schedule and pace. While certain transcription services, such as court reporter, may require stricter scheduling requirements, most of the work involves transcribing audio or video that has been provided to you. The job is also ideal for those who type fast, have strong attention to detail, and are comfortable using computers and other related software and technology.
The growth potential for a transcription business can vary significantly by industry. Medical transcription, for example, has boomed in the past decade. But, no matter the subject matter, if you provide fast, accurate work you can build a successful transcription business. Your speed and accuracy will also largely determine your earning potential since many transcription projects are billed by the project. The faster you work, the more you can earn.
Learn how to start a transcription business.
Start a Passive Income Business in Your State
17. SOCIAL MEDIA MARKETING BUSINESS
Social media is almost certainly here to stay, and those with marketing experience and the savvy to understand and navigate multiple platforms are great candidates for a social media marketing business. This venture requires more than just an enthusiasm for social media. Successful social media marketers have a deep understanding of people, how and when they interact with various platforms, how to reach specific demographics, what type of content works best where, and how various platforms evolve over time.
Startup costs are low, and most can begin with their computer and a small advertising budget. With social media ever on the rise, the opportunities to grow your business and make a solid profit are great. The average social media marketer brings in $50,000 per year, with the highest earners reaching up to six figures.
Learn how to start a social media marketing business.
18. LIVE-STREAMING BUSINESS
For many gaming enthusiasts, earning extra money while playing video games is living the dream. For the most enthusiastic and driven among them, it can become a reality. To do so, gamers should register with a major streaming service, such as Twitch.TV, and be prepared to spend several hours each day streaming their gameplay and working on building followers. Those who acquire enough followers to become partners (500+ on Twitch, for example) will begin earning money for the traffic they generate.
Earning and keeping a sufficient following requires very strong gaming skills. You will also need to be adept at navigating social media to promote yourself, respond to comments, and build a broad online presence. Those who stream full-time and succeed in becoming partners on their streaming sites can average $3,000-$5,000 per month. Most also earn a portion of the ad revenue they bring it, increasing their earning potential. Some of the best streamers out there are able to earn up to $300,000 annually, but when it comes to this type of business, the sky's the limit.
Learn how to start a live-streaming business.
19. NANNY SERVICE (BABYSITTING BUSINESS)
Babysitting is a $5 billion a year industry, making it an excellent bet for responsible people who love children. It can be difficult for parents to find trustworthy and reliable childcare options. When they do, they’re likely to hold onto this valuable resource and tell their friends. While most side hustles will remain small, one-person ventures, it’s also entirely possible to build a regional or national service that matches clients with well-vetted babysitters in their area.
Startup and maintenance costs are minimal, which helps to maximize profits. While individual babysitters can bring in a maximum of around $2700 per month, growth and earning potential increase as you build a larger business with additional people.
Learn how to start a babysitting business.
20. HOUSE-SITTING BUSINESS
Running a house-sitting business is a great opportunity for any responsible person looking to lend a hand to others while making some extra money. It can also be a beneficial venture for those looking to travel on a budget. House-sitters should be comfortable taking care of a variety of pets. The success of your house-sitting business will rely largely on the reputation you’re able to build and subsequent word of mouth recommendations, but the growth potential is good.
Earning potential depends on the number of clients and consistency of work. While house sitting is in demand year-round, there will be seasonal booms in the summer and around the holidays. If you’re able to secure a number of reliable clients, you can make a good living.
Learn how to start a house-sitting business.
21. PET-SITTING BUSINESS
Pet-sitting is an excellent business idea for responsible animal lovers looking to make money doing something they love. Pet-sitters can offer a variety of services like walks, drop by feeding, or longer-term care as an alternative to kenneling. Costs are low as most pet-sitting businesses are run out of the home.
Liability insurance is one of the only costs required to get started. While many pet-sitting businesses remain small, others become national ventures, employing people across the country to take care of pets. With such low costs, the earning potential for pet-sitters is good, with independent business owners earning as much as $57,000 per year.
Learn how to start a pet-sitting business.
22. DOG-WALKING BUSINESS
If you’re an animal lover looking for a flexible job doing something you love, starting a dog-walking business can be an excellent option. Whether your goal is to supplement your income or set a new career path entirely, dog walking is a rewarding and dynamic profession.
Consistently strong customer service and effective advertising will both be crucial to your success. Pet owners are an enormous market, making the growth and earning potential of your side hustle business limited only by the number of dogs you’re able to walk each day. Full-time dog walkers can see impressive profits as high as $80,000 per year.
Learn how to start a dog-walking business.
23. PERSONAL CONCIERGE BUSINESS
Personal concierges, or personal assistants, perform a wide range of activities depending on their clients. No matter what work is needed, though, a personal concierge must have excellent people skills, be highly organized, and be willing to be on call for their client(s) whenever they’re needed. If you are a detail oriented person with a great deal of energy, this can be an excellent business venture.
Since this is largely a luxury service, the success of personal concierge services can ebb and flow with the economy. As long as the local economy stays fairly strong, there’s an opportunity for growth. The salary for a personal concierge ranges from around $20,000-$40,000 annually, but independent business owners have the opportunity to bring in even more than that.
Learn how to start a personal concierge business.
24. VIRTUAL ASSISTANT BUSINESS
People who are organized, attentive, and responsible will do well in this position. It can be an excellent opportunity for anyone with administrative or personal assistant experience looking for reliable remote work. As businesses look to cut costs, more and more are opting for virtual assistants, making this a growing industry that may reach $8 billion by 2020. The landscape is very competitive, though, with many businesses opting for lower-wage overseas assistants.
To stand out, those hoping to make a living as a virtual assistant must be flexible, offer a wide range of services, and put a great deal of effort into marketing themselves. Earning potential can vary widely depending on the nature of your clients, hours worked, and payment structure. While there are certainly some who many well into the six figures, most virtual assistants should expect to earn between $30,000 and $50,000 per year.
Learn how to start a virtual assistant business.
25. PROFESSIONAL ORGANIZING BUSINESS
If you love to organize or have perfected the minimalist lifestyle, sharing your talent with others as a professional organizer can be a profitable and personally satisfying business venture. You’ll need to be a compassionate, understanding people-person who others will feel comfortable welcoming into their messy or disorganized homes. A professional organizing business offers flexible hours, but owners will need to be able to stick to project deadlines.
The growth potential for this type of business is very good due to people’s increasingly busy schedules that make cleaning and organizing more difficult. Since this is a fairly new industry, there are still excellent opportunities to grow in the market. As a fairly specialized, luxury service, professional organizers can charge a decent hourly rate, making as much as $115,000 per year with very little overhead.
Learn how to start a professional organizing business.
26. WEDDING PLANNING BUSINESS
If you love planning great events, a wedding planning business may be the best side hustle idea for you. Much of the planning business is visual, so those with a flair for style and design will do well in this field. Previous event planning experience is a big plus, but a solid reputation built on continuous customer satisfaction will be your biggest marketing asset.
The wedding industry is enormous, and with over 6,000 weddings taking place each day, a well-marketed and reliable wedding planning business has a great chance for success. What you can charge for your services will vary widely based on geographic area and even time of year, with peak wedding season (spring-summer) justifying higher rates. Most established wedding planners can charge anywhere from $2,000 to $5,000 per wedding, making the earning potential substantial.
Learn how to start a wedding planning business.
27. COLLEGE PLANNING BUSINESS
Planning for college can be an extremely daunting experience, so anyone who can provide quality insight to make this process even slightly less stressful will be in high demand. Starting a college planning business will require a sizable investment of your time, but the payoff can be great. It will require a commitment to learning and keeping up with admission processes, getting to know a wide range of schools, and building relationships with university administrators. While a background in higher education can be helpful, it’s not required.
Most important will be your ability to personally identify with each client and build a list of potential schools that suit them. Your annual income is largely defined by how many clients you’re able to take on, how many consultants you hire, what your customer’s individual needs are, and your fee structure. Experienced consulting firms report earning $40,000 to $80,000 annually per consultant, with the potential for more as your agency grows in experience and reputation.
Learn how to start a college planning business.
28. AIRBNB BUSINESS
Running an Airbnb is a great way to earn some extra income. You can rent out extra space in your home on a regular basis or open your entire house or apartment when you’re out of town. Some people with an additional property have opted to go the Airbnb route rather creating a traditional rental property.
For those with properties in popular locations, this can be a very profitable venture. Generally speaking, though, the earning potential of an Airbnb varies considerably based on frequency of rental and geographic location.
Learn how to start an Airbnb business.
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29. PORTRAIT PHOTOGRAPHY BUSINESS
A portrait photography business is a great niche market for anyone with photography experience. These businesses can be particularly successful if you’re able to get consistent work through schools and other community organizations that routinely require photography services.
While the growth potential is modest, established portrait photographers can expect a fairly stable income of at least $34,000 per year. This number can grow much higher depending on geographic region and client base.
Learn how to start a portrait photography business.
30. WEDDING PHOTOGRAPHY BUSINESS
Wedding photography is an excellent venture for experienced photographers looking to maximize their exposure and profits. The wedding industry is enormous and continues to grow regardless of economic conditions. Because of the size of the industry, there is also a great deal of competition. Building a successful wedding photography business will rely heavily on your ability start small -- with friends and family -- and build an impressive portfolio that makes you stand out.
As your business grows, you may opt to bring on additional photographers. The earning potential of a wedding photography business is great. Most photographers charge anywhere from $2,500 to $5,000 per wedding, with some going as high as $10,000. If you remain booked consistently throughout wedding season and keep a respectable number of clients during the slower months, a successful wedding photographer can see revenue approaching or reaching six figures.
Learn how to start a wedding photography business.
31. SPORTS PHOTOGRAPHY BUSINESS
If you have photography training and a passion for sports, starting a sports photography business can be a very rewarding career. Your side hustle can range anywhere from a weekend photographer for local youth sports teams all the way to an official event photographer for professional sporting events.
Successful local sports photographers are able to maintain long-term contracts with schools and sports leagues. The average income for a photographer ranges from $45,000 and $62,000 per year.
Learn how to start a sports photography business.
32. PHOTO EDITING BUSINESS
A photo editing business can be a great addition to a photographer’s work, especially during slower seasons, or a stand-alone business for anyone with an eye for great photography and the skills to use a range of editing software.
Growth potential in this area is modest, but a creative person able to market themselves well, especially on social media, can build a good business. With low costs and high flexibility, this can be a lucrative part-time or full-time venture, with the most successful photo editors earning six figures annually.
Learn how to start a photo editing business.
33. ILLUSTRATION BUSINESS
Starting an illustration business can be challenging, but for those with the talent and drive to persevere, it can be an incredibly rewarding career. Illustration opportunities are always expanding, with new media creating more niche fields every day. The options are vast, ranging from cartoons to book jackets to digital storyboards.
When first starting out, it’s a great idea to send your work to a variety of places to see where your style fits best. It’s difficult to gauge the earning potential of an illustration business since the category is so broad. However, the annual salary or fine artists -- which include illustrators -- is $57,000 per year. Those able to find steady work can build a solid career around their talent.
Learn how to start an illustration business.
34. GRAPHIC DESIGN BUSINESS
A graphic design business is an excellent pursuit for creative people with artistic and technological prowess. You should be able to work alone and in a collaborative environment as you grow or work alongside clients. Formal education can boost your credibility, but talented self-taught designers can do just as well.
Many studios are sole proprietors or small partnerships. They operate on their own, hiring project help when needed. However, there’s virtually no limit to growth potential except your sales success. You can hire talent and support staff as your reputation and your business grow. The largest are multinational firms with offices in major cities across the world and clients among Fortune 500 brands.
Learn how to start a graphic design business.
35. MAKEUP ARTIST BUSINESS
Anyone who enjoys working with people and has especially good makeup application skills may enjoy running a makeup artist business. Previous work in a cosmetics field can help, but ultimately your talent will speak for itself as you earn satisfied customers. Making a name for yourself on social media can be extremely helpful.
You may choose to specialize in one niche area like weddings, or offer your services to a broad range of clients. Startup costs are fairly low since most makeup artists work out of their home or travel to their clients. Depending on your workload and client case, a makeup artist can make a sizeable profit, with the most successful even achieving six-figure incomes.
Learn how to start a makeup artist business.
Learn more about starting a business by visting the U.S. Small Business Administration.
36. CUSTOM PRINTS BUSINESS
A custom prints business can accommodate people from a wide variety of backgrounds and skill levels. It can make a great side or full-time business for just about anyone with technological know-how and good customer service skills. There is good growth potential for this business because you can start small and build your way up.
Many start off using third-party services to print their products before eventually acquiring their own equipment. Similarly, a business may start out focusing solely on t-shirts and add additional product lines as they grow. Profits will vary significantly across the industry depending on the size and scope of your business. However, it may be possible to net up to $100,000 annually once fully established.
Learn how to start a custom prints business.
37. FURNITURE UPCYCLING BUSINESS
Creative people with an eye for design may enjoy running a furniture upcycling business. Previous sales experience can also be very helpful in this venture. Furniture upcycling involves finding old or forgotten pieces in thrift stores and elsewhere and converting them into a new and improved item. You’ll need to invest a great deal of time into locating and upgrading each piece individually, which can put a limit on how far your business can grow.
However, this market is appealing to a variety of consumers, from the environmentally conscious to those looking to upgrade their home decor for a reasonable price. Plus, because you’ll be selling one-of-a-kind pieces, earning potential is quite high. Though it may take several years, a successful upcycling business can eventually see six figures.
Learn how to start a furniture upcycling business.
38. CLEANING BUSINESS
Anyone with an eye for detail and a strong work ethic can excel with a cleaning business. You should also ideally be physically fit and comfortable with a good deal of manual labor each day. You’ll be working long hours and interacting with a variety of people, so energy and good customer service skill will be quite useful.
The smallest cleaning businesses are run as one-person shops. Larger operations employ staff or hire subcontractors. Some businesses franchise their model and collect franchise fees. As such, earning potential can range anywhere from $50,000 per year into the millions.
Learn how to start a cleaning business.
39. HANDYMAN BUSINESS
If you are in great physical condition and are ready to take on a career that allows you to set your own hours and be your own boss, starting a handyman business may be the perfect fit. In addition to having the knowledge and skills to repair and replace household items, a passion for helping others is very important.
Many handymen enjoy working alone and choose to keep their business small and local. With the right knowledge, skills, and crew, however, there is significant growth potential in this industry. If you possess a background in business, starting a handyman franchise would be a very lucrative way to grow your business.
Learn how to start a handyman business.
40. ROOF CLEANING BUSINESS
The roof cleaning business is great for any previous roofing contractor, cleaning, or household maintenance worker. It has high profit potential, and it’s great for eco-lovers, explorative types, and hard workers alike. A roof cleaning side hustle can grow quite a bit. That said, local cleaning businesses will likely have to compete against other providers. A cleaning business’ growth potential can be attributed to its credibility, benefits, qualified leads and special deals.
Additionally, you’ll need to have a solid insurance plan. Communities don’t hire companies who aren’t properly insured, and they’ll avoid any company without a solid track record. Luckily, your insurance policy is one of the only startup costs involved, beyond cleaning supplies and advertising. The owner of a roof cleaning business can expect to make an average of $44,000 per year once established.
Learn how to start a roof cleaning service.
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