The idea of passive income is quite exciting. After all, who doesn’t want to enjoy a source of income that doesn’t require them to work? It sounds too good to be true.
However, it is true. Passive income can help improve your lifestyle and allow you to enjoy the luxuries of life. Back in the day, it was hard to think of a regular income source without having to work additional hours, but today it’s possible and people are earning thousands in passive income. In this article, we’ll look at 33 passive income ideas for Canadians and explain the benefits of each.
1. Open a high-interest savings account
This is the safest and easiest way to save money. For starters, you don’t need a lot of money to open a savings account. In most cases, there’s no minimum balance requirement, you can start as low as $1. However, the interest rate you get might depend on how much you deposit.
Many accounts have tiered interest rates, which means the more money you deposit, the higher your interest rate. Other high-interest savings accounts might offer the same rate across the board, regardless of how much money there is in your account. Still, the more you save, the more passive income you'll earn.
You only need to find a bank that offers good interest rates. Stop looking at traditional banks as they don’t offer good returns. You should look at online banks because they often offer better returns and some additional features as well. You can use Hardbacon’s savings account comparison tool to help you find the best account for you. Here are some of the best options:
EQ Bank offers a standard rate of 2.50% on eligible deposits, which is about 250x higher then that rate on standard savings accounts at a traditional bank. You can access your money quickly and earn 0.5% cash back by requesting a free EQ Bank card.
Neo Financial offers a standard 2.25% interest rate on deposits. You can also request a free Neo Money Card to easily access your money and earn an average of 5% cash back when you spend money at Neo partner merchants.
Make sure to read the fine print before opening a savings account because they usually come with specific conditions like limited withdrawals or steep transaction fees. Interest rates are expressed as an annual rate and the amount you earn can be paid out monthly, quarterly, half-yearly, or yearly. Both residents and citizens can open a bank account in Canada. You can do it online or by visiting your nearest branch.
The interest rate is high compared to regular accounts. On the plus side, this passive income idea is secure since banks are less likely to shut down. Plus, in most cases, your eligible deposits will be protected by CDIC insurance.
2. Invest with a robo-advisor
A robo-advisor is a digital portfolio manager that uses smart technology called an algorithm to create and manage your investments while keeping costs low. It's easy to use, all you have to do is answer a few questions about your financial goals and risk tolerance, and the robo-advisor with build a personalized portfolio and automatically invest your contributions. The robo-advisor market is worth a trillion dollars and can offer great returns compared to more traditional investment accounts thanks to much lower fees.
While you can choose to manage your own portfolio, it can be hard for someone with no investment knowledge or little time. Robo-advisors are a great option for anyone who is new to investing or wants a hands-off way to grow their wealth.
Compare different options and pick one that aligns well with your goals. You will have to pay a small fee for their services but it’s usually worth the money as it costs less than working with traditional mutual fund managers. However, on the downside, returns are not guaranteed and the market can be very unstable.
Here are two of the most popular robo-advisor platforms in Canada:
Investing made easy. Expertly crafted portfolios with reduced fees to accelerate your financial success.
- Zero opening fees
- Zero annual account fees for RRSP or TFSA
- Commission-free purchase of ETFs
- Free account transfers
Questrade is an online brokerage that offers robo-advisor portfolios. There are no annual account fees for RRSPs and TFSAs, and you can buy ETFs without paying any commission fees. It's free to open an account there is no cost to transfer an existing account. Management fees start at just 0.25% and drop to 0.20% if your account exceeds $100K.
Wealthsimple is also an online brokerage that offers robo-advisor portfolios built to your specific goals and risk tolerance. You can purchase both stocks and ETFs commission-free, and management fees can be as low as 0.4%. They'll even automatically rebalance and reinvest your dividends. You also get access to expert advice from real-life financial advisors if you want some extra help or insight.
3. Invest in dividend stocks
There are several ways to earn passive income from stocks. They don’t just gain value but also pay handsome dividends, i.e.: a share in company profits. This is a great source of passive income in Canada since you don’t have to do anything to earn money.
Look for reliable companies that pay dividends, buy shares, and enjoy dividends. You can choose an online broker to trade online or go the traditional way.
Dividends are usually paid quarterly, semi-annually, or annually. However, remember that not all companies pay dividends, and some years you may have to do without dividends since they’re only paid when the company is making good returns.
It might be a good idea to do a bit of research and find companies that have a proven track record of paying dividends. Some of the best dividend stocks include Fortis, Canadian Utilities, and TC Energy.
Also, remember that you will have to pay taxes on dividend income. The gross-up rate for non-eligible dividends is 15%, and for eligible dividends is 38%.
4. Invest in REITs
REIT, short for real estate investment trust, is an investment body that owns, operates, and/or finances income-generating real estate. REITs are considered safe as they’re operated by experienced investors who understand the market and can protect your savings.
REITs pay handsome dividends and can offer up to double-digit returns. However, like most investment options, returns are not guaranteed. Compare different REIT options and pick what fits you the best.
Remember that REITs work well during booms and suffer when the market is down. On the positive side, you will not have to worry about anything like buying and maintaining a property since it will be the job of the governing body. You will receive your earnings in a pre-decided manner.
Investors looking for high liquidity should consider REITs as they are easy to buy and sell. They are said to be suitable for all kinds of investors since you don’t need a lot of money to start. Most companies have low minimum requirements starting at just $1,000.
5. Invest in dividend ETFs
Interested in dividends but don't want to carry the risk of stock picking? Consider dividend-paying exchange-traded funds (ETFs). They're favoured by income-seeking investors and can be a great way to diversify your portfolios.
Dividend ETFs can be in taxable or tax-exempt accounts – like RRSPs and TFSAs. Choose a liquid dividend ETF that offers good yields and isn't very costly to manage. Some dividend ETFs in Canada go above 3%.
Many people choose this investment strategy as it’s less risky and very transparent. You can make money in two ways: price appreciation and dividend income. However, returns are not guaranteed.
6. Invest in GICs & Bonds
Those looking for guaranteed and fixed returns can turn to Guaranteed Investment Certificates (GICs) or bonds. A GIC is entered into with an insurance company that guarantees to pay a fixed amount of money on depositing a specific amount of money for a certain period of time.
This is said to be an excellent option for investors who do not want to take risks and wish to enjoy a specific amount of return every month or quarter. The rate of return isn’t fixed and some companies are even willing to negotiate it. In most cases, you will enjoy a higher rate than what savings accounts offer with some companies going as high as 3 percent.
On the downside, this isn’t the most liquid option and turning your GICs into cash can take a while. The same goes for bonds. These can be defined as promissory notes issued by governments and financial institutions. A bond is essentially a debt instrument that can even be traded.
Bonds offer stable returns and aren’t as risky as stocks or other investment options. You can buy bonds by contacting a broker or financial advisor. Some banks may also offer bonds. Since there are many types of bonds on the market, it is important to know all about bonds and compare different options so you can pick the right one.
7. Start a niche blog
The internet has opened new avenues for people who want to make money online. Blogging can be a great way to make money. Many bloggers even earn six-digit incomes through their blogs but not everyone finds success as it takes a lot of time and effort to make a mark in this industry.
Think of a topic and start a blog. We suggest that you stick to a niche that you know about so that you don’t have to look around for ideas. Some people who fell in love with the Financial Independence, Retire Early (FIRE) movement started blogging about it. These FIRE bloggers have created really successful sites that talk about their own FIRE experiences or just doling out advice.
Next, register your domain and get your blog up and running. You can get a free WordPress blog or invest in a professional domain and hosting platform, which will cost you about $20 per month.
Give a unique theme to your blog and design it according to your target audience. You can do it on your own as there are many site builders. Or you can hire a professional who will charge you between $50 and $500 based on the features that you need.
Brainstorm some ideas and start posting content ranging from written blogs to vlogs. This Udemy course on How to Start a Blog can be a great resource. Once up and running, you will have to keep an eye on the numbers and see what works and what doesn’t. You will be able to earn money through your blog once you start to get a decent number of hits. Top blogs receive more than 100,000 users a month. You will need at least 1,000 per month to make a profit.
Consider investing in SEO and other marketing techniques to spread the word. This will cost you money as SEO agencies can be a little expensive to work with. Similarly, you may need content writers and virtual assistants to manage the site. Expect to spend around $500 and $1,000 per month on it.
Once you start to receive traffic, you can start making money by working with a company like Google Adsense and placing ads on your website. Based on the quality of your traffic, you can earn about $10 per 10,000 visitors. It might also be a good idea to start selling merchandise through your blog and make a profit. Some people also swear by affiliate marketing as it makes it possible to earn good money.
Another option is to continue to build your presence and be an influencer. This will allow you to charge companies for advertising through your platform. Once your website is big enough, you can work with an SEO agency and charge money to place links on your site. This will pay you between $10 and $1000 per link based on the quality and niche of your website. Similarly, you can help others generate leads through your site and earn money for every lead.
8. Launch a dropshipping eCommerce business
The global dropshipping market is expected to hit the $557.9 billion mark by 2025 making it one of the fastest-growing industries with an average yearly growth rate of 28.8%. It can be a great way to earn passive income.
All you have to do is start your own eCommerce store and start selling online. You don’t have to worry about producing any goods since you can sell goods produced by others.
It’s an order fulfillment method where the seller doesn’t have to stock goods. Once you receive an order, simply purchase from a third-party seller and get it sent to the buyer without having to handle the goods. Canadians can use service providers like Alibaba, AliExpress, and ChinaBrands. They cater to Canadian consumers and will deliver in 10-15 days based on the product selected.
Some buyers may even choose to put your label on the package to protect your interest. Dropshipping has grown by leaps and bounds in the last few years and involves all kinds of products including clothing, online courses, jewellery, baby products, home decor, consumer electronics, books, and more.
More and more buyers are choosing to shop online and they don’t always care who manufactures the goods as long as they’re reliable, durable, and delivered in a timely manner. This is a great source of passive income as you will not have to worry about production or shipping.
With dropshipping, your only concern will be to manage your store and products will be taken care of by the seller. Shopify is the go-to option for people in this business as the platform makes it easy to set up online stores and manage payments.
9. Invest in a rental property
This is an obvious option but not everyone knows how to earn a passive income from a rental property. First of all, you need to have a decent amount of money to invest since real estate in Canada is not cheap.
Toronto is among the most expensive regions where the average house costs around $750,000. Fredericton is among the cheapest where the average house costs under $200,000.
The average amount of rent charges is around 1% of the property value. However, you may also earn through price appreciation since property in Canada appreciates at a good rate up to 11% YoY.
The process is simple:
- Calculate your budget.
- Find a house and seal the deal.
- Put it up for rent and find a tenant.
- Start receiving rent payments.
You will only need to make a down payment to own a house. Rental income can be used to cover mortgage payments and property taxes. Find a sweet spot to ensure you walk away with a profit after making loan payments. This mortgage calculator can help know if you can afford a property. Since not all companies offer the same rate and terms, it might be a good idea to compare mortgage companies.
The most important thing is to find a house that’s appropriately priced. The Gross Rental Multiplier (GRM) approach can be used to value real estate. It values a rental property based on the amount of rent it can earn you every year.
Let’s say a house in the neighbourhood recently sold for $500,000. It generates a yearly rental income of $90,000. The GRM for this house will be 5.56 (500,000 divided by 90,000). You can multiply this figure (5.56) by the rental income of other properties to find their true value.
For example, if a house in the neighbourhood generates $50,000 in rental income, it will be worth $278,000 (50,000 x 5.56). For as long as the house is under this value, it’s said to be profitable. While this approach works, it might not always be correct.
You may have to hire the services of an agent to help you find the right rental property, find its real value, and ensure it stays occupied. Some developers sell managed properties where you get to earn a guaranteed rental income without having to worry about maintenance costs that can run into hundreds per month.
10. Lend on peer-to-peer lending platforms
Peer-to-peer lending has become quite famous in the last few years thanks to online platforms that make it easier to get loans. The process is simple – find someone looking for a loan, seal the deal, and enjoy returns.
However, P2P lending comes with risks as there are usually no guarantees and you may not receive your money back if the other party defaults or goes bankrupt. There’s no specific rate of return as the interest depends on the risk factor. The higher the risk, the more money you’ll make. There are several P2P lending marketplaces in Canada including GoPeer and Lending Loop.
There are all kinds of borrowers including individuals and institutions with loans varying from $25 to $250,000 and higher with rates starting at 5% and going as high as 20%.
11. Write books
If you are creative with an interest in writing then consider being an author and publishing your own book or eBook. This is the era of eBooks where you don’t have to worry about finding an agent and getting your book published as tools like Amazon Kindle make it easy to self-print books.
All you need is a book with a neat cover and Kindle formatting. There’s no minimum word count for Kindle but most experts agree that a book should be at least 2,500 words. You can publish all kinds of books including children’s novels, biographies, factual books, and adult fiction.
Amazon doesn’t charge publishers upfront for publishing books and the company pays up to a 70% royalty on each sale. Royalties will continue to arrive for as long as you keep making sales. Those who don’t wish to try Kindle can post on other platforms including their own eCommerce store.
The best thing about Kindle is that it is an international platform with buyers from around the world. You will be able to reach millions of people with your book on the platform. You will, however, have to pay a small fee for each sale based on the price of your book.
If you’re lucky, you might even attract the interest of Hollywood producers. Many Kindle eBooks have been adapted into movies including some popular titles like Fifty Shades of Grey and Serena.
12. Rent your home on Airbnb
Do you have a big house with an empty room? Convert it into a money-making machine by putting it up on Airbnb. The average host in Canada made about $11,308 in 2020 through the platform, a little down from $13,225 in 2019 thanks to the pandemic. With travel coming back to normal, expect to earn even more in the future.
The trick is simple. Sign up for a free account and list your property. You don’t need a commercial property to make money with Airbnb. Airbnb charges a flat fee of 3% of the booking subtotal.
Houses located in touristy places tend to earn more. Plus, places that offer amenities such as a pool, balcony, or pretty view tend to earn more. Consider writing interesting descriptions and posting up-to-date and attractive photos to find more short-term renters. However, make sure that your insurance covers you for any damage!
13. Rent your car on Turo
Just like your home, you can rent out your vehicle as well. Turo makes it possible to share your vehicle with others. Sign up for a free account and list your vehicle for free. Turo charges a small fee between 15% and 40%, but you could make up to $700 or more per month through the app.
Almost all kinds of vehicles qualify including older vehicles but your car should be in perfect condition. Here are the requirements:
- The model year must be within the last 12 years
- It shouldn’t have crossed 130,000 lifetime miles
- The car should be worth under $150,000
- It shouldn’t have a branded or salvage title
- Vehicles designed for off-road use aren’t eligible
- Cargo vans and passenger vans aren’t eligible
- Financed vehicles are eligible
The company offers liability insurance of up to $2 million and excellent customer support. You’ll receive payments in only 5 days via PayPal or direct deposits. Having said that, make sure that you have the right insurance for Turo.
14. Sell online courses
If you’re skilled with an interest in helping others then consider creating online courses to sell. This will not only help you make passive money but also allow you to build a new identity as a mentor or teacher.
You can build your own site and sell courses to your visitors or join a platform like Udemy or Teachable where thousands of learners come to find courses in different fields. Another great option is Thinkific, a Canadian online course platform that went public on the TSX in 2021.
All options have their own pros and cons. You will get to keep a larger share of the sale when you sell through your own site, but you will have fewer visitors, especially in the beginning.
On the other hand, you will either have to pay a fee or share earnings with these platforms but you may earn more in net profit since these platforms are popular and will provide access to a larger number of buyers.
Udemy allows instructors to create and host for free. You will receive 97% of the revenue when users purchase a course using your referral link or coupon. It goes down to 37% for courses purchased without instruction links or coupons.
Teachable uses a different model where you have to pay a monthly fee starting as low as $39 per month and going as high as $119 per month. In addition, the company charges a 5% fee on every sale.
Lastly, Thinkific has both paid and free options. The free option can be good if you are new to the industry. Paid plans start as low as $49 per month and go as high as $499.
Don’t let these fees intimidate you as these platforms are worth a try. They’ll take the burden off your shoulder as you will not have to worry about creating or maintaining a website.
You will receive a passive income for as long as your courses continue to sell. Consider creating evergreen courses or releasing new courses so that you continue to make money.
15. Maximize your credit card rewards
Technically speaking, this isn't considered passive income but it can be a great way to save money. Credit cards offer a variety of rewards including free coupons, cash back offers, and discount codes. The key lies in maximizing these rewards and saving as much as you can.
Always compare credit cards and pick one that offers the most rewards. It might be a good idea to sign up for multiple cards, especially if they offer good sign-up bonuses. But, don’t go wild with your cards and know which card to use and when as some cards offer higher rewards when used under certain conditions.
Issuers are known to come up with new offers and discounts. Keep checking the official website for the latest offering including limited-time offers so that you don’t miss out on any. Also, check if you have the option to combine points where possible so you can get bigger rewards.
Lastly, always pay your bill in full and by the deadline so that you don’t get into financial trouble. Remember that different cards offer different rewards and you choose cards that offer rewards that align with your goals like cash back if you want money to spend anywhere or travel points if you want to save on travel expenses.
16. Invest in farmland
Farmland is a tangible asset that you can buy and sell easily, making it a good choice to earn passive income. Demand for agricultural goods is on a constant rise and prices of farmland in Canada has been increasing at the rate of 10% per year.
This makes farmland a more attractive option than stocks that offer a return of 7% per year on average. In addition to this, you can earn money from farmland by renting it out. Companies like Area One Farms and AGInbvest Canada can help you find good investment opportunities. These companies even make it possible to invest in partnerships.
Some landowners choose to grow crops and enjoy passive income by having a team manage it. This might not sound like a passive income but it can do the trick since there are a number of management firms that can oversee your land and pay you a specific amount of money every year.
17. Invest in cryptocurrencies
Before we start, let’s be clear that cryptocurrencies are not for everyone since this investment option is very risky with no guarantees. Crypto has given us many millionaires but it has also caused people to lose a large chunk of their income, so proceed with caution and invest only what you're willing to lose.
Just like stocks, you will need to compare crypto exchanges to find the right one for your needs and comfort level. There are many coins to choose from including Bitcoin, Ethereum, and Litecoin.
The world’s first digital coin, Bitcoin, is usually the first choice for most people but it’s among the most expensive options trading at $37,000 at the time of this writing, around 60% below its high of $92,000 in November 2021. You will also find some affordable options in the top 10 list on CoinMarketCap trading under a $1.
There are two ways to earn money through cryptocurrency:
- Sell when prices rise
- Stake your crypto and earn up to 4% interest
You can start as low as $5 with no upper limit but make sure to play it safe. Canada has some of the best crypto exchanges, and many are regulated to protect you from unnecessary risk.
18. Mine cryptocurrencies
Those who do not wish to buy cryptocurrencies can choose to mine them instead. The process refers to the creation of new digital currencies. You will have to invest in your own mining rig to mine digital coins like Bitcoin or Ethereum. These rigs start as low as $3,000 and can run into the millions.
The best thing is that you don’t need own any cryto to get started. Start by getting a powerful mining computer or rig, create a wallet for digital coins. Next, you join a mining pool like Braiins Pool, which has a server installed in Canada.
These pools bring together miners and combine their resources to get more output. Coins generated through the venture are divided among users. This is considered passive income as you will not have to do anything to earn money, your device will do it on your behalf. All kinds of coins can be mined but bigger or more expensive coins will take a lot of time to mine, which is why it is best that you stick to smaller coins.
19. Use cash back websites & apps
There are a number of cash back apps and websites offering free money. The concept is simple: make a purchase and receive a percentage of the purchase price back. You will find cash back deals on almost all kinds of products and services including restaurant food, clothing, and toys. Tools like Honey and Rakuten offer up to 30% cash back on some sales. Most are free to join and will offer cash back within 24-48 hours.
20. Invest in startups through equity crowdfunding
A part of the capital markets, equity crowdfunding refers to the process of offering private company securities to individuals for investment. The process is often subject to securities and financial regulation and is fully legal.
This option can be suitable for people with a good understanding of business and technology. It isn’t like traditional crowdfunding where money is usually accumulated to support individual projects and investors don’t always get a share in the company.
Businesses are almost always on the lookout for investors. Sometimes, people have ideas but no money to follow them. A little financial support can help them get started and offer you big rewards if the business becomes a success. Similarly, you may lose all or a part of your investment if the idea fails.
Start by joining a crowdfunding site like FrontFundr, LiquidCrowd, or GoTroo and find projects that you believe in. You’ll be able to start as low as $100 and benefit greatly if the project turns out to be a success. However, remember the risk factor and consider diversifying your portfolio to mitigate risk.
Once you invest, you may begin to receive passive income in the form of a capital gain but don’t expect dividends as most startups will reinvest profits.
21. Buy vending machines
It is possible to earn passive income in Canada by investing in a vending machine. Mainly designed to offer snacks or drinks, traditional machines cost around $2,000 to $10,000 but you will also find some costing above $3000. You will have to find a good location to place the machine.
Crowded places including office canteens can be good options. The process can be lengthy as you will have to work out an agreement with the proprietor. Some may ask for a share in the profit and some will charge a flat monthly fee. You can make about $100 a week with a well-placed machine, minus expenses.
Vending machines offering healthy options tend to do well. However, make sure to invest in a high-quality machine so that you don't have to spend a lot on maintenance. Plus, you'll have to use inventory tracking software to keep an eye on inventory and know when to replenish it. You’ll continue to receive passive income for as long as the machine is operational and in use.
22. Sell stock photos
If you have an artistic eye and a good camera then you can make money by selling photos online. Websites like Adobe Stock and Shutterstock allow you to sell your stock photos. Some platforms offer a one time payment and some offer royalties for every photo sold.
The more photos you sell, the more money you’ll make. You can make between $0.30 and $99.50 per royalty-free sale. A one-time sale can earn you $500 for photos and even higher for some clicks.
This is a great passive income idea because photos don’t easily go dated, especially if you click evergreen pictures. Work on your skills a little so you can easily find buyers.
23. Buy a laundromat
Well-run laundromats in the right location can offer good income. According to a report, about 72.8% of laundromats in Canada are profitable. That's slightly higher than florists at 71.2% and liquor stores at 69.2%.
This is considered a passive income idea because you will not have to do much to make money. Find a good location, install needed equipment, and welcome users. You don’t even need employees to keep one operational. However, you must keep an eye on the equipment and ensure it continues to work well.
It can be hard to tell how much you’ll make in profit as some businesses make as low as $30,000 a year and some as high as $500,000 a year. However, remember that start-up costs for a laundromat in Canada can run from about $150,000 to more than $1,000,000 based on the size and location of the facility.
24. Become a franchisee
This option requires a good amount of starting capital but it can be a very rewarding passive income idea. Big names like KFC and McDonald’s can be hard to qualify for. KFC, for example, requires applicants to have at least $1.5 million in total net worth and over $750,000 in liquid assets. The company is known to charge a hefty franchise fee of $45,000. McDonald’s also has similar requirements.
In both cases, you will have to pay a franchise fee and a monthly service fee of 4% of gross sales. But, don’t worry, there are some smaller businesses as well. For example, Inspiration Learning Center only requires applicants to invest $80,000 to get started.
Find a business that has potential and get a license to operate in your area. LookForaFranchise can be a great place to start. You will receive training in exchange for the investment. Despite a big initial investment, this model is profitable and often more attractive than starting your own business since you will get to enjoy the brand’s goodwill.
If you open a KFC tomorrow, you will not have to market extensively since people already know the brand and what it offers. The company will provide training and even help you attract buyers as it has to maintain standards. The average KFC makes about $1,000,000 per year and the owner takes about $120,000 a year.
This can be a very profitable passive income idea as you will not have to devote time to your franchise. The company will provide training and you can hire managers to keep an eye on the business.
25. Sell stock music
Just like stock photos, you can earn passive income selling stock music. This can be a suitable option for people who understand music and have the tools needed to create something interesting.
Users need royalty-free music to create online content, TV ads, and more. You can put your music on platforms like PremiumBeat and Epidemic Sound. You’ll earn money every time someone pays to download your music.
26. Rent out domain names
Go to a website like GoDaddy and you will see that most good domain names are taken. While some of these ‘taken’ websites are active, some are reserved by people who want to rent these to buyers and make money.
Spend some time online and book domain names that you feel will be in demand tomorrow and look for buyers. You can book domains through platforms like GoDaddy and NameCheap. A site like Domain.com has a special section for premium domain names.
The easiest way to rent out domains is to join a platform like Venture. It lets users post ads with some top names like suits.com going for over $11,000 a month. In addition to this, you can post an ad on your domain informing visitors that it’s up for sale/rent.
You will continue to earn passive income for as long as the brand is rented. All you have to do is maintain ownership and money will continue to flow into your account. While it’s an easy way to make money, remember that there’s a risk since not all domain names will find a buyer.
27. Sell your ideas
There’s nothing more valuable than a good idea. If you play it right, you will be able to earn passive income by selling your ideas. Investors are looking for all types of ideas including concepts for books, TV shows, products, and services. If you have a unique idea, consider working on it, patenting it, or looking for investors. However, it isn’t as simple as that.
You will have to prove that your idea is worth it. There are two ways of doing it, you can sell your idea and earn money or find investors to fund it. In both cases, you will have to prepare feasibility reports and show the potential your idea holds.
Once you are ready, try websites like Hoovers.com to find businesses that may be interested in your idea. It can be hard to sell an idea alone. Consider getting a patent or producing a prototype. It costs between $750 and $1500 to register a patent. You will also have to pay maintenance fees that fall between $50 and $100.
Conversely, a prototype can cost anywhere between $100 and a million based on your idea. If you don’t want to go through the trouble then look at Innocentive and ThinkGeek. These companies offer cash rewards for good ideas going up to $1,000 and even higher in some cases.
Businesses and educational institutions also hold events to attract innovative ideas and offer rewards in return. In most cases, you will be able to choose to receive a one-time payment for your idea, which can run into millions based on the concept, or enjoy royalties. However, be careful since it is common for ideas to get stolen.
Since thinking doesn’t require active presence, the money you earn through your ideas is considered passive income.
28. Buy & sell NFTs
Buying and selling NFTs is a new way to make money. Short for non-fungible tokens, NFTs are digital assets that belong to one person. Examples include digital artwork, tweets, videos, and music. The market is worth $1.3 billion.
It is easy to create NFTs. Think of the blockchain you wish to issue your NFTs on. Available options include Ethereum, EOS, Tron, etc. This is important because each blockchain comes with its own standards and compatible marketplaces with Ethereum being the most popular choice.
Assuming you're going with Ethereum, you will have to choose a wallet that supports its standard (ERC-721). Top options include Coinbase Wallet and MetaMask Deposit about $100 in Ether to your wallet and join a good NFT platform, like Rarible and OpenSea, to upload the file that you wish to turn into an NFT. Once up, go and choose to put the NFT up for sale.
The buying process is similar as well. You will earn money every time you make a sale but that’s not the only way to make money through NFTs. You can also earn passive income by renting out NFTs through reNFT where the daily rate lies between 0.002 and 2 wrapped Ethereum on average. Wrapped Ethereum is the ERC-20 version of Ether.
Another option is to earn royalties whenever your NFT changes hands on the secondary market. These days it is also possible to make passive income by choosing to stake NFTs. It refers to the process of depositing digital assets to generate a yield. Join Only1, NFTX, and other such platforms to earn rewards.
NFTs can go above millions and help you make a lot of money but this is a complicated industry so spend some time knowing about how they work.
29. Rent out your pool
Are you lucky enough to have a pool? Consider putting up for rent to earn passive income. Platforms like Swimply make it possible for homeowners to earn a decent amount of money of up to $100 per hour based on the location and size of the pool and additional features such as pool toys and lounge chairs.
This might sound like a fast and easy way to make a lot of money, but remember that it is very risky. Hosts may risk facing lawsuits if a visitor sustains an injury. In most cases, it’s the homeowner’s responsibility to ensure everything is safe and working.
30. Put advertisements on your car
This passive income idea can generate about $300 per month. All you have to do is join a company like Carvertise and have them place ads on your vehicle.
Almost all kinds of ads qualify but how much you'll make depends on the type of your vehicle, your regular route, and the ad placed on it.
Ads can be placed anywhere from the back of your car to a full wrap. The company will pay for the ad and carwash. These ads are usually in the form of vinyl stickers that don’t damage the car.
31. Start a YouTube channel
This is one of the best ways to earn passive income in Canada. You don’t need any money to start a YouTube channel and it’s free to join. Think of a niche that you are good at. You can do anything, post video reviews of the latest movies, talk about your life, or share reaction videos.
Then sign up for a YouTube channel. You’ll only need a Google account to do that. Provide the required information such as a description and name for your channel. Think of a creative name that goes well with the theme of your channel.
- Start posting content.
- Monetize your channel.
- Make money.
The last three steps are the most crucial. The content that you post must be original and interesting. YouTube is very competitive and you will not be able to enjoy good views if your content isn’t interesting. Also, YouTube takes piracy very seriously and will not allow you to share someone else's content without permission. Doing so could get you blocked.
The next step is to monetize your channel. You will not be able to do it till you meet the minimum requirements, which are:
- Have at least 1,000 subscribers
- Have at least 4,000 watch hours
It can take a while to meet these requirements. Advertise your channel through social media and use neat keywords to attract more audiences. Once monetized, you will be able to make money through your channel. YouTube will display ads on your channel and advertisers will pay you.
It’s believed that 10,000 views can earn you $10 in passive income. This may not sound much but many YouTubers earn millions by posting regularly and building a strong following. This passive income idea will only work, however, if you create compelling content and find the right tools to market it.
32. Start a subscription service
What do Netflix, Hulu, and TheraBox have in common? They’re all subscription-based services that earn money by offering subscription packages. You can do the same by coming up with a digital product people would be interested in paying for. It could be anything, a collection of interesting videos, online courses, investment tips, or an investment tool.
The most important thing is to have a product that’s unique and good enough to pay for. Think of what people would happily pay for and create a model that works for you. Some of the most popular options include teaching subscription services, digital planner subscription services, and even hobby-based subscription services. Websites like Substack even let users offer a subscription-based newsletter and earn money by offering valuable content to readers.
A subscription box business can also be a good idea. It has proven to be a major success in Canada. Subscription boxes are a recurring delivery of niche products. They help market products and receive passive income. CrateJoy can be a great place to start. You can be a member for $39 a month and enjoy features such as inventory management, review management, order management, and data security.
You can make millions with this technique but there’s a time lag. Spend lavishly on marketing and generate interest by posting reviews and testimonials. You may not have much success in the beginning but if your content is good then you’ll start to find subscribers and earn passive income.
Start charging as low as $1 per month and increase as your business grows. This might not sound much but imagine having 10,000 subscribers. You will make $10,000 a month for nothing. Increase the rate to $2 a month and you’ll be making $20,000. The possibilities are endless.
33. Rent your garage or parking Space
This passive income idea works well since parking in Canada is both expensive and hard to find, especially in busy areas. If you live in such an area and have an empty garage or parking space then rent it out to make some money.
You can post an ad on Kijiji or join an app like ParkingForMe. In most cases, you will be allowed to choose your own parking rate and availability. You can earn anywhere between $3 and $15 per hour based on your location.
The best thing about this option is that you don’t have to do anything to earn money. No additional features are needed. However, make sure to let the other party know that they’d be responsible for the security of their vehicle.