Making money while you sleep means you are finding ways to continue generating income, even when you are not actively working. And that type of income also refers to passive income, another term that represents the little effort it takes to earn and maintain some money. With a bit of work and following the steps below, you’d be surprised at the income you can generate while snoozing or relaxing.
1. Stock Market
One of the most common (and more obvious) places to make money while you sleep is via the stock market. Although it’s true the stock market hours in the U.S. do not run at night, it is a way to make passive income without doing much. Whether you are investing in index funds, ETFs, or individual stocks and bonds — by simply investing in them you can earn dividends and capital gains.
2. High-Yield Savings
And another common and simple way is through a high yield savings account. While there is less risk than say the stock market, your earning potential is also not as large as other outlets. But it still should be included in this list because the interest on your money can start to add up, just by simply saving money. It’s a super-easy way to make money while you sleep and helps you build your savings.
Typically traditional banks or credit unions won’t offer great interest (likely less than 1%). However, some are stepping it up. Personally, the online banks that are out there are doing a much better job and can afford to apply higher interest to your savings.
3. Real Estate
Investing in real estate is one of the most talked-about ways to make money passively. It’s also one that can be intimidating for many and a bit confusing too. And while it can make you money while you sleep, there still can be plenty of work and some risk involved.
A popular choice among wealthy investors is rental properties. Buying properties that are then rented to others, which helps pay down any mortgage and starts earning money. Once you own the property outright, the monthly cash flow starts to really add up. Plus, you now own an asset that you can sell later on for profit.
4. Affiliate Marketing
Affiliate marketing simply means you are placing a tracked link to a product or service that when someone clicks and takes some action, you get paid a particular commission. These commissions will vary based on company, but some can be a few bucks up to a few hundred dollars! And as you build a strategy and viewership, affiliate marketing can earn you big bucks, 24 hours a day.
5. Digital Products
Think of digital products as electronic files you buy for consumption. So these are any goods that are stored digitally as well as delivered and used electronically. This means you can create something that a user buys and they’ll receive that via email or as a product download. There are quite a few examples of digital products you could sell like: eBooks, Music Files, Digital images, Software, Videos, etc.
6. Online Courses
There are plenty of great courses that do offer a ton of value. Plus, it’s nice to have everything organized and the info you must have in one central location.
Just like many things on this list, if you want to make money while you sleep, you’ll put in many sleepless nights prior to that happening first. But later on, your course sales are a lucrative way to engage your audience, teach them, and make some good revenue. You can make courses via platforms like Teachable, Podia, Kajabi, Udemy, and more.
7. Dropshipping
You can start by launching an e-commerce website (you can do this through Shopify). Next, add products to your website that come from certain manufacturers.
You do not have any inventory. When someone buys a product, the manufacturer ships it to them directly. You will pay for the products, but will make more on the sale because of the mark-up.
8. Amazon FBA
In a way, Amazon FBA is similar to the dropshipping model but slightly different. However, this way to make money is also growing in popularity too. So FBA stands for Fulfillment by Amazon.
It’s a service from Amazon where you find products you would like to sell, have those items delivered to Amazon shipping warehouse, and when someone buys that product on Amazon, it’s shipped from their warehouse.
Once you find your products and strategy, you can really turn this into a passive income machine. If you are looking for more, this in-depth guide to selling on Amazon FBA will be a great resource.