7 Passive Income You Can Build While Still An Employee

In this article, I'll go over seven passive income ideas even if you are an employee. 

Whether you're seeking additional passive income opportunities while in your 9 to 5, or simply looking to diversify your income streams, this article can offer you various ideas to consider.

Idea #1: Content Creator

Idea number one is becoming a Content Creator. 

It's crucial to understand that to turn this into a passive income stream, you must approach content creation as an entrepreneur. 

There's a middle ground here that often goes untapped. 

On one side, you may enjoy creating content, but if you don't treat it as a business, it remains just a hobby. 

Conversely, focusing solely on the business aspect may lead to burnout before achieving passive income. 

The key is to merge both aspects. 

For platforms like YouTube, getting started is accessible to anyone—you only need a phone and an internet connection. 

However, the challenge lies in sustaining it long enough to see returns. 

This is where the entrepreneurial mindset comes into play: setting up processes, outsourcing tasks, and focusing on producing quality content consistently.

For instance, it took me four months of not earning anything on YouTube to qualify for the partnership program and start earning through YouTube AdSense. 

Most of this income is passive, generated from older videos. 

Another example is Ali Abdaal, who earned $4.6 million from YouTube last year while dedicating only a few hours per week to it. 

He offers a YouTube course detailing how he built his channel and the systems he implemented.

The toughest aspect of this income stream is investing the time and maintaining consistency. 

However, if you can overcome the initial challenges, YouTube can become a lucrative passive income stream. 

It's one of the best options in my opinion.

Idea #2: Dropshipping

When people discover drop shipping, they often express excitement, thinking,

Hold on, I don't need to manage inventory or create my own products?

I can simply have a supplier in China ship products directly to my customers, and all I have to do is run a few Facebook ads?

That means I can earn money from anywhere in the world!

Count me in.

If only it were that straightforward.

Drop shipping often involves shipping from overseas, resulting in lengthy delivery times. 

A few years ago, waiting a week and a half for orders was acceptable for me, but now, speedy delivery is the expectation. 

We've become accustomed to next-day delivery options, so it's uncertain how many people will tolerate long wait times. 

This could lead to numerous chargebacks as customers become increasingly frustrated. 

Additionally, one of the major challenges with drop shipping is the inconsistency in product quality. 

Sellers have limited control over quality control, which can result in dissatisfied customers. 

However, it's not impossible to succeed as a drop shipper.

You can address shipping issues by using a local warehouse and consider implementing white label strategies, where you put your own brand on the products you sell. 

This can help you differentiate yourself in a highly competitive market. 

White label drop shipping can be a valuable side hustle with low risk and is an excellent way to test ideas before committing to large orders. 

Nonetheless, quality issues persist as you lack control over the manufacturing and fulfillment process.

Idea #3: Real Estate (2 Ways)

The third idea to generate passive income is through real estate, which actually has 2 options for you to choose from. 

Buy & Rent Properties

The first involves purchasing physical properties and earning income through rental payments. 

However, this method comes with high barriers to entry, such as: 

• needing a sizable down payment, 
• a strong credit score, 
• and the task of sourcing properties 
• and finding suitable tenants. 

Starting out with this approach is moderately challenging, and the level of involvement in property management can vary based on personal preference. 

Managing properties yourself requires time, while hiring a property manager incurs additional costs. 

Real Estate Investment Trust (REIT)

Alternatively, the second way you can earn rental income without the need for a significant deposit or direct property management is by investing in a Real Estate Investment Trust (REIT). 

A REIT is a company that invests in various types of properties, such as:

• hotels, 
• warehouses, 
• and shopping centers, 

leasing them out and distributing at least 90% of the rental income as dividends to shareholders. 

Investing in REITs is relatively simpler and can be done through a brokerage account like any other stock. 

With this method, you avoid the hassles of direct property ownership, but achieving a decent return requires a substantial investment since leverage isn't involved. 

For instance, Realty Income, a REIT investing in properties across the US, UK, and Spain, offers a 5.9% return. 

To earn approximately $245 per month, you would need to invest $50,000 of your own money. 

However, REITs typically secure long leases with blue-chip tenants, making the rental income relatively reliable even in various market conditions.

Idea #4: Service-based Business (Low Skilled)

Low-skilled service-based businesses are often touted as popular side hustles in top 10 side hustle videos on platforms like YouTube. 

You've likely heard about earning money by completing online surveys or writing video captions. 

However, the reality is that in such businesses, your value is solely based on the quality of service you offer, regardless of your background or experience. 

Traditional barriers like age and expertise become irrelevant in this field. 

With just an internet connection, anyone, anywhere in the world can become your competitor. 

It's worth noting that this includes young individuals and people from less economically developed regions, which can drive down the prices you can charge for your services. 

Moreover, advancements in artificial intelligence (AI) pose a potential threat to certain service-based businesses. 

AI is rapidly evolving and has already started replacing roles such as caption creation. 

It's plausible that AI could disrupt other service industries in the future. 

Despite these challenges, there are opportunities for success in service-based businesses, provided you choose a niche that is not only profitable but also scalable. 

For instance, video editing offers the potential to build an agency-style business model, allowing you to scale beyond manual work. 

Ultimately, it's essential to remember that life is finite, so it's crucial to take control of your time and choose a service-based business that aligns with your goals and aspirations.

Idea #5: Affiliate Marketing

The fifth idea of generating passive income is through affiliate marketing. 

This involves promoting products or services created by others and earning a commission or a small percentage of the sale. 

For instance, the links you see in my YouTube description are affiliate links, and I receive a percentage of the sale when you make a purchase through them. 

Importantly, using these links doesn't incur any additional cost for you, so it’s a win-win.

According to Payscale, the national average income for affiliates is $56,000 per year, but it's crucial to note that this figure represents an average.

Signing up for an affiliate program is straightforward and can be done in just five minutes, making it accessible to anyone.

However, the real challenge lies in driving traffic to your affiliate links.

It took me about a year to build a platform and grow an audience substantial enough to generate some passive income through affiliate marketing.

Therefore, affiliate earnings are often a result of the effort put into building and nurturing your audience.

To scale and make this income truly passive, you need a significant amount of traffic.

You can promote affiliate links on various platforms such as social media, websites, blogs, and Twitter.

The amount you earn depends on how much effort you invest in growing these channels upfront.

In terms of maintenance, affiliate marketing requires ongoing effort to sustain organic traffic and keep income flowing.

Therefore, while starting is relatively straightforward, maintaining and scaling affiliate income involves continuous work to drive and retain traffic.

Idea #6: Day Trading

Picture yourself waking up at 5:00 am, armed with a coffee, ready to dive into the financial market. 

The day begins with a simple idea: 

1. just sit with your laptop, 
2. watch charts, 
3. and voila, you've made a profit. 

This is the fantasy that fake gurus portray on social media, but let me tell you, it's a risky endeavor where your money can vanish in an instant. 

Surprisingly, I've ventured into trading myself, and guess how long I lasted? 

Only 4 months, not even half a year. 

One of my investments tanked because I wasn't online enough to track its progress, resulting in a loss. 

Thankfully, I hadn't invested a significant amount, as I was just testing it out or it could have hit me hard at the time. 

My main issue with online trading is fake gurus selling signals to unsuspecting individuals who lack knowledge. 

They promise riches if you follow their advice, but think about it: 

if they truly knew how to outsmart the market, why would they be making money from selling signals instead of trading? 

To begin trading, you need a decent amount of capital and financial stability to withstand potential losses. 

So, unless you're willing to commit your life to it, I don't see day trading working out. 

Artificial intelligence is becoming increasingly adept at identifying patterns, surpassing human traders. 

Therefore, even the best human traders may have limited success in the future.

Idea #7: Digital Products

The 7th idea for generating passive income involves selling digital products, such as: 

• ebooks, 
• downloadable content, 
• presets, 
• website themes, 
• and more. 

What's appealing about digital products is that they require time to create initially, but the costs are minimal, and the income can be passive afterward. 

A great example of success in this realm is Torrie, the creative mind behind Fox and Hazel, who excels in crafting art tutorials, design assets, and inspiring others to embrace their creativity. 

For example, consider this printable Frida Kahlo coloring sheet available for download online. 

We often believe that we need to invent something groundbreaking to earn substantial income, but sometimes, lucrative ideas stem from our everyday activities. 

Many of us live our daily lives without realizing that our knowledge and skills could be transformed into valuable digital products. 

Getting started in this field is relatively simple; you don't need much capital. 

However, the challenge lies in generating ideas that people are willing to pay for. 

As for maintenance and revenue generation, it can be a bit trickier. 

You can list your products on platforms like Etsy for visibility, or you can invest time in building an audience and creating engaging content to boost sales further. 

Ultimately, the key is to offer something valuable that resonates with your audience and prompts them to make a purchase.

So those are some passive income ideas to spark inspiration. 

If you've tried any of these already, I'm interested to hear about your experience and whether you'd recommend them. 

Alternatively, if you've found success with other passive income streams, I'd love to hear about those too. 

If you enjoyed this article, please consider sharing it with your family and friends. 

Thank you for reading.

Cheers!

- Ivan