5 Beginner Friendly Passive Income UK Ideas
The idea of making money while you sleep is not just a dream; it’s a reality for many. Passive income is highly sought after but sometimes misunderstood and often ignored altogether. I love passive income and we’ve created a few over our journey as it helps to boost our income. In this blog we’ll share the income streams we’ve created and walk you through the process of creating them. There’s a huge list of passive income streams available to you so you can always check out these and many others. However, today we’re focusing on selling digital products, affiliate marketing, outsourced services, blogging, and selling Private Label Rights (PLR). We’ll break down how to create these passive income uk, along with some useful resources.
What Is Passive Income?
Active Income, is what most people are used to, it’s earned through direct involvement and effort, such as a salary from a remote job or wages from freelance work. It requires continuous work and time investment, meaning you exchange your time and skills for money.
For example, you get paid by your employer as long as you physically turn up to work and complete your required tasks. If you were to suddenly decide you no longer want to work and stop showing up, your boss would eventually fire you and you would stop earning money.
Passive Income is money earned with minimal effort or active involvement after the initial setup. It typically involves investments or business ventures that generate revenue over time, such as rental properties, dividends, or royalties from creative work. The key aim of passive income is that it continues to flow continuously into your bank account with little or no ongoing work so you quite literally could be making money while you sleep. I like to call it ‘sleep coin’.
For example, I create several Excel spreadsheets and list them on Etsy for £5-20 each, they sell every day and are automatically sent to the customer so I have nothing else to do but watch the money drop in my bank account. True story. Even just selling 1 a day can result in an extra £150-600 while sleeping. Not bad going at all right?
The primary difference between the two is the level of ongoing effort required: while passive income needs time and effort to create, it allows for ongoing earnings with less day-to-day involvement, while active income demands consistent work to maintain earnings.
Okay, so let’s breakdown our 5 current passive income streams and how you can get started with them.
1. Selling Digital Products
What Are Digital Products?
Digital products are intangible assets or pieces of media that can be sold and distributed online without the need for physical inventory. Examples include e-books, templates, online courses, software, music, and stock photos.
How to Make It Passive
Once created, digital products can be sold repeatedly without additional work. The key to making this income stream passive is automation through learning how to drive traffic to your products with SEO or paid ads. Use platforms like your own website, Shopify, Gumroad, or Etsy to handle sales, payments, and delivery automatically.
How we currently make passive income selling digital products:
I’ve been selling finance spreadsheets, life planners and templates on Etsy since 2018 and currently have over 3500 sales on my Etsy shop. Some of the items I created in 2020 are still selling almost every day, 5 years later and I haven’t lifted a finger, it just keeps selling. It’s without a doubt my current favourite income stream.
How You Can Get Started
- Identify Your Niche: Choose a subject you are knowledgeable about or passionate about.
- Create the Product: Use tools like Canva for design, Teachable for courses, or Scrivener for writing e-books.
- Set Up a Sales Platform: Use platforms like WordPress, Etsy or Gumroad to list your product.
- Market Your Product: Use social media, email marketing, and SEO to drive traffic to your sales page.
If you’d like a step-by-step guide on getting started with digital courses then you can watch the replay of my webinar below.
2. Affiliate Marketing
What Is Affiliate Marketing?
Affiliate marketing involves promoting other people’s products and earning a commission for every sale made through your referral link. It’s a popular way to earn passive income because it usually requires minimal upfront investment.
How to Make It Passive
To make affiliate marketing passive, focus on creating evergreen content that continues to attract traffic over time. This could be blog posts, YouTube videos, or social media content.
How we currently make passive income with affiliate marketing:
Most of my blog posts and documents I share on this website contain at least one affiliate link. I’m able to generate £100s each month because I share from our personal experience of what has worked for us and helped us on our journey. This income is technically semi-passive because I do regularly share my blogs on various platforms on the internet.
How to Get Started
- Choose a Niche: Select a niche that you have used and genuinely interests you.
- Join Affiliate Programs: Sign up for programs like Amazon Associates, ShareASale, or ClickBank.
- Create Content: Develop content that naturally incorporates your affiliate links.
- Drive Traffic: Use SEO, social media, and email marketing to attract visitors to your content.
3. Outsourced Services
What Are Outsourced Services?
Outsourced services involve hiring others to perform tasks or services on your behalf. This can include anything from virtual assistants to graphic design. You get paid by taking a finders/agents fee. You kind of act like a middle man connecting the customer to the service provider. You find the customers and ensure the work gets done without actually having to physically perform any tasks.
How to Make It Passive
To make this income stream passive, set up a system where your team handles the day-to-day operations. You focus on acquiring clients and managing the business.
How we currently make passive income with Outsourced Services:
This is one of AJ’s main passive income streams. AJ is a web developer and offers packages to his clients that may include web design, logo creation and SEO services. He no longer does most of the web design for his clients. Instead, he outsources the work to the team he has curated. The client asks for a logo, he creates a payment link for the client to pay. He passes on the work to his Graphic designer, his designer does the work and gets paid for completing it. AJ takes a fee on top of the designer’s costs which he keeps even though the only work he had to do was to initially secure the client. It’s a win-win for all involved.
How to Get Started
- Identify Services to Offer: Choose services that are in demand and can be easily outsourced.
- Build a Team: Use platforms like Upwork or Fiverr to find freelancers.
- Create a Business Model: Decide on pricing, service packages, and how you’ll manage your team.
- Market Your Services: Use online marketing strategies to attract clients.
4. Blogging
What Is Blogging?
Blogging involves creating and maintaining a website where you regularly publish content. It can be a powerful tool for generating passive income through ads, sponsored content, and affiliate marketing.
How to Make It Passive
Once your blog is established, you can earn passive income through ad networks like Google AdSense, affiliate marketing, and selling digital products.
How we currently make passive income blogging:
Blogging is a new income stream for us. I’ve only been doing it for 6 months so I’m still finding my feet with it. It’s this very blog that you’re reading and you probably have noticed that ads throughout the article. Our website was already getting traffic without the blog so I decided to add Google Adsense immediately and it’s already making money. I also add affiliate links and links to my digital products so one of the reasons I love blogging is because you can generate multiple income streams from one source. I create content about moving abroad and making money online and whether someone accesses my blog today or in 2 years time it has the potential to generate content as long as it remains relevant and helpful.
How to Get Started
- Choose a Niche: Pick a topic you are passionate about and that has a potential audience.
- Set Up Your Blog: Use a platform like WordPress to create your blog.
- Create Quality Content: Write engaging and informative posts that attract readers.
- Monetise Your Blog: Use ads, affiliate links, and digital products to generate income.
5. Private Label Rights (PLR)
What Is PLR?
PLR refers to products that you can purchase and then modify, brand, and sell as your own. This can include e-books, articles, and software.
How to Make It Passive
By purchasing PLR products, you can quickly create a library of content to sell or use to drive traffic to your other income streams.
How we currently make passive income with PLR:
This is another recent income stream for us which I combined with my digital products webinar as most of my attendees wanted help with creating a product they could sell. I found a PLR product that including a variety of products that could be used in multiple ways to appeal to most people and then added it as an upsell.
How to Get Started
- Find Quality PLR Products: Decide on what type of products you like to sell and find your supplier.
- Customise the Content: Modify the content to fit your brand and audience.
- Sell or Use the Content: Sell the content directly or use it to enhance your blog or digital products.
In conclusion, creating passive income streams is a viable way to achieve financial freedom and flexibility. By understanding the different methods and taking strategic steps, you can build a sustainable income that works for you. If you’d like even more suggestions on creating making passive income then my Passive Income Sources eBook has over 40 ideas to help you get started. Whether you choose to sell digital products, engage in affiliate marketing, outsource services, start a blog, or leverage PLR, the opportunities are vast and varied. Start small, stay consistent, and watch your passive income grow.
FAQs About Beginner Passive Income UK
How much time does it take to start earning passive income?
The time it takes to start earning passive income varies depending on the method and effort you put in. Some people see results in a few months, while others may take a year or more.
Can I pursue multiple passive income streams at once?
Yes, diversifying your income streams is a smart strategy. However, it’s important to manage your time effectively and not spread yourself too thin.
What are the risks involved?
Like any business venture, passive income streams come with risks. These can include market changes, competition, and the need for ongoing updates and marketing.
Do I need a lot of money to start?
No, many passive income streams require minimal upfront investment. For example, affiliate marketing and blogging can be started with little to no cost.
Is passive income truly “passive”?
While passive income requires less ongoing effort than traditional jobs, it often requires initial work and occasional maintenance to keep the income flowing.
