Would you like to earn money in your sleep? Or would you like to earn money while you are busy or on the go during your free time? If yes, then you want to earn passive income. Passive income is basically the opposite of active income—in short, earning income without spending time on it to earn. Passive income is the kind of income where it’s effortless to make money once it’s established. Here are the 25 best passive income ideas in the Philippines to get you started on the path to financial freedom to allow your dreams to come true. All of them are applicable for Pinoys and easy to do whether you’re a student or a young professional needing additional earnings—accessibility is key.
1. Real estate investment
Real estate is one of the most sought-after passive income opportunities. For example, many people in the Philippines participate in renting out their homes or commercial properties to turn a profit. Given the constantly rising population and vast amounts of residential and commercial options, anyone who makes this investment will have people constantly generating income for them via rental payments.
How to Do It:
- Buy property—You can buy your primary residence or a secondary investment property.
- Rent your space—You can rent your apartment on rental apps or rent to family and friends.
- Get paid—Rental payments are monthly and will be deposited into your bank account with no other work required from you.
While real estate investment requires a substantial initial investment, it often pays off for future returns.
2. Dividend Stocks
One of the easiest ways to earn passive income is to invest in stocks that pay dividends. In the Philippines, many publicly listed local companies pay dividends. This means that a portion of the profit of the publicly listed company is reinvested back into the company, and a portion is given back to its investors. Therefore, investing in such companies generates passive income in the form of dividends.
How to Get Started:
- Research: Learn about stock trading and find companies that have paid dividends consistently in the past.
- Create a brokerage account: Find a reputable brokerage firm in the Philippines and set up an account.
- Invest: Buy stocks in companies that pay dividends.
- Earn: Generate income without initial effort once you’ve put in your time. Many dividend stocks pay dividends on a schedule— quarterly or annually.
The benefit of investing in dividend stocks is that you receive cash flow—money you can spend and then, if you reinvest your dividends into other stocks, optional diversification.
3. Create an Online Course or E-book
If you possess some specialized knowledge to offer, creating an online course or e-book is another wonderful product that allows for passive income from people who pay you and learn from you. This is passive because very little work goes into continuously earning from the product when it is finished and sold online.
How to Start:
- Identify a niche: Determine a topic that you’re an expert on and that people would be interested in learning.
- Create the products: Have a course in mind? Film the lessons. Write the e-book. Design downloadable (or accessible) materials.
- Sell and profit: Launch your course on Teachable or Udemy. Publish your e-book on Amazon Kindle Direct Publishing.
Once your products are launched, you’ll have cash flow while you dream as courses and e-books get purchased.
4. Affiliate Marketing
Affiliate marketing involves earning a commission for marketing someone else’s product. You create an affiliate link for a product/service, share it on your site, blog, or social media, and earn a percentage of the sale when someone makes a purchase through your link.
How to get started:
- Choose a platform: Start a blog, YouTube channel, or social media account through which you can market various products.
- Join affiliate programs: Become an affiliate through programs like Amazon Associates, Lazada Affiliate Program, or Shopee Affiliate.
- Promote products: Share your affiliate links for products relevant to your niche.
- Revenue: Get paid for products sold through your links.
Affiliate marketing is considered passive income because what you do now can pay you later.
5. Vending Machines
A vending machine business is easy to start with low overhead—and you can make passive income with vending machines. Purchase a few and set them up in locations with a lot of foot traffic and you’re on your way to vending chips, soda, and more. Each time someone accesses your vending machine to purchase something, you earn revenue.
How to Start:
- Buy vending machines: Purchase the machines that stock the most popular products.
- Find placement sites: Common vending machine locations include schools, office buildings, and malls.
- Restock: You’re going to need to restock the machines often and clean them.
- Revenue: Once set up and once employees/customers warm up to it, your machine will generate income for you.
Your investments will continue to generate revenue for you after installation and operation.
6. Peer-to-Peer Lending (P2P Lending)
Do you want to be a loan shark to strangers and earn money while doing it? Become a P2P lender and start your own side micro-enterprise. Sites like SeedIn or Lendico let you loan money to people and companies in the Philippines, and you’ll earn interest during repayments as passive income.
How to Get Started:
- Register: Create an account with a P2P lending site.
- Select loans: Browse the site for loans that individuals are trying to get and fund the loans you want to aid.
- Loan funds: Select how much you want to lend (usually minimums are quite low).
- Receive payment: Get paid back with interest as individuals/companies pay you back.
P2P lending can be a phenomenal source of passive income, provided you’re lending a diversified amount to each borrower to offset risk.
7. Create a Mobile App
If you’re tech-savvy or know someone who is a developer, creating a mobile app is a great way to earn passive income. Mobile apps can make money through in-app ads and/or purchases along with subscription-based paywalls.
How to Get Started:
- Find a niche: Create an app that fulfills a need or is a good distraction.
- Build the app: Use a developer or build the app yourself via app building sites like Appy Pie or Thunkable.
- Monetize: Use ads or permit in-app purchases and allow for subscription paywalls.
- Advertise: Market your app so people download it.
Your app will continue to earn revenue while you move on to your next project.
8. Rent out your unused equipment
Do you have equipment that you need for other projects—cameras, musical instruments, tools? You can rent them out to those who need them for the limited time they need them. Renting out your unused equipment is guaranteed money without doing any extra work aside from expanding your personal inventory.
How to do it:
- Post your equipment: Use Facebook Marketplace or Carousell or a nearby rental shop to advertise your items.
- Set a rental price: Scope out the marketplace to see what others charge to price your rental reasonably.
- Rent it out: Meet with your renters to discuss and deliver equipment, signing rental agreements.
- Get paid: Earn money every time the equipment is used.
It’s a simple side hustle to start and get paid from quickly.
9. Sell Stock Photos or Videos
If you are a photographer/videographer and have some outtakes laying around, this can be an effortless side hustle as stock image sites will pay you each time someone purchases the rights to your image.
The most used sites are Shutterstock, Adobe Stock, and iStock.
How to Start:
- Create quality photos or videos: See what’s selling—business-related endeavors/images, images of nature, etc.
- How to Start: Create an account on these sites.
- How to Make Money: You earn royalties based on the number of downloads of your work.
This is excellent for passive income!
10. Niche Blog with Ad Revenue
Even better! If you can create a blog that generates traffic, you can make a WordPress blog and forgo creating all your content from other niche blogs that get enough traffic to generate ad revenue.
How to do so:
- Find a niche that is popular: Something you are knowledgeable about that has a following.
- Create and monetize the content: Write your own articles, make your own videos, and share on your blog.
- monetize: When you start getting traffic, you can apply for Google AdSense and other advertising networks and make money on impressions and clicks.
- profit: If people who come to your site for you get clicks through links and ads, you profit.
This is the kind of blog that can generate revenue all on its own once established without needing daily upkeep.
11. Automated Dropshipping
Dropshipping is an ecommerce process in which you sell products without ever actually owning the inventory. Automated dropshipping means that you work with vendors who even ship the products to your clients while you only need to worry about marketing and customer service.
Where to Start:
- Create an online store: Use sites like Shopify or WooCommerce to create your store.
- Find suppliers: You can find vendors on such dropshipping sites as AliExpress or SaleHoo.
- Fulfill orders: With automated order fulfillment services like Oberlo or Spocket.
- Earn profit: Your profit will be the markup between what you charge your customers and what you owe on the supplier end.
Once your automated dropshipping business is up and running, you can make money with barely anything on your part!
12. Sell Digital Products
Another way to create passive income is by selling digital products. From printables to plug-in templates and design assets, you can create these and set them up for sale, allowing customers to download and purchase your digital goods without any additional effort on your part for passive income gained.
How to Earn Passive Income Online:
- Digital Products: Generate digital products that others are searching for, from planners to spreadsheets to templates.
- Where to Sell: Etsy, Creative Market, your own website.
- Where to Promote: Social Media.
- Where does the Income come from: Sale of the products.
The longer your product is live and people buy it, the more passive income you’ll generate because you’ll earn every time someone wants to buy. (just be sure you can deliver!).
13. Create a Subscription Service
If you have a service or product that people would pay for repeatedly, creating a subscription service is a great way to make passive income. Exclusive content, exclusive boxes, exclusive discounts—people are always willing to pay for something of which they will reliably receive.
How to Get It Done:
- Offer a product/service: Give people what they want and what they are going to want again and again.
- Create a subscription service: Use sites like Patreon, Substack, and Cratejoy for the subscription part.
- Advertise it: Let others know.
- Receive it: Access regular transfers to your checking.
Subscription services also ensure consistent earnings and cash flow for months after.
14. Crowdfunded Investments (Real Estate Crowdfunding)
Crowdfunded investments in real estate mean you’re raising funds with other investors for different real estate projects. Investors can earn passive income from rental properties or appreciation without ever needing to own real estate.
How to Start:
- Register with a crowdfunding site: Fundrise and Reitly are two reputable crowdfunding websites that let you invest in real estate projects from P5,000 onward.
- Choose what you want to invest in: The crowdfunding site will give you different options.
- Make your investment: After you choose, add your funds to the project and wait for your return.
- Receive payment: At the end, you’ll get your share of the proceeds from rentals or the final sale of the property.
Real estate crowdfunding enables you to participate in property investment without the traditional costs associated.
15. Create a mobile game
Are you more on the techy side? Creating a mobile game can provide passive income through in-app ads and purchases. A mobile game can go universal and create revenue for years.
If you possess the skills (or a group) to create a game, you have an endless realm of programming and gameplay. Once your game is developed and others play it, it will generate passive income for you over time.
How to do it:
- Create a Game: Use programs like Unity or Unreal Engine to create your game.
- Monetize: Through ads and in-app purchases.
- Market: Through social media and game app stores.
- Make Money: Through ad placements and views and in-app purchases.
Your mobile game is making money as soon as it’s created and published!
16. Sell Print-On-Demand Products
You can sell personalized print-on-demand products—t-shirts, mugs, posters, etc.—without ever touching inventory or shipping. Products are made and shipped once purchased.
How to Get Started
- Design your products: Use design software to create your custom images for the different products.
- Choose the marketplace: Use sites like Printful or Teespring to set up an e-commerce store.
- Promote: Use social media and online marketing to spread the word about your designs.
- Profit: Possible rental income from would-be renters.
This is a ridiculously low-cost business endeavor to start, and once it is established and created, you can gain subsequent profits with little to no additional effort on your end.
17. Car Rental (Renting Out Your Car)
Have a car sitting unused? Rent it out! If you’re out of town or away from your car, you can rent it out through sites like Turo; it’s a peer-to-peer short-term rental system for those who need a quick set of wheels.
How to Get Started:
- Rent out your car: Sign up for car rental services like Turo or post in a local Facebook community group to place an ad in your area.
- Tell them when: Let people know when your vehicle will be accessible.
- Get paid: Use your PayPal for accessibility fees or use car rental holds and get paid directly from those who use your vehicle.
Renting vehicles is an effortless way to make passive income on a vehicle that’s going to be out of commission, anyway.
18. Make an Audio Book
Passive income can also be made if you’re a good storyteller or educator—audio books are available for sale on Audible and iTunes.
How to do it:
- Write a book: Assemble what you need to share/teach/entertain in book form.
- Record your book: Use a quality microphone and record yourself reading your book.
- Upload: Upload to Audible or iTunes.
- Profit Potential: You receive royalties based on how often your music is used in film, ads, games, etc.
You created and submitted it, and now you can chill without doing any additional work to generate income from this project.
19. License Your Music
For musicians and composers, you can license your music for rights to project inclusion in a film, commercial, video game, etc. Licensing sites, such as Audiojungle and Epidemic Sound, allow you to upload your music and sell it to gain rights to use it for passive income.
Getting Started:
- Create music: Create songs that are licensable.
- Upload your tracks: Create an account with a licensing site and upload your music.
- Profit potential: Sit back and wait for royalties!
This is how you give— all views and monetization via ads and affiliate links.
20. YouTube Channel (Automated)
Another passive income stream is an automated YouTube channel where you create, upload and benefit from automated ads and affiliate links. Many channels require minimal oversight— learning how to do something, niche information, etc.
How to get started:
- Pick a niche: There are trending topics that people will constantly replay (i.e. tutorials, product reviews).
- Make your videos: Evergreen type content that won’t need updating frequently.
- Passive Assets: AdSense monetization and affiliate links are generated all from the channel.
- Profit: Let the upload stay public so it can be viewed and generate money for you.
After establishing your channel, a set it and forget it, YouTube will generate revenue without you needing to do anything—or very little—to generate.
21. Sell Templates or Digital Assets
Got a design-related niche? Create and sell digital assets for passive income. From website templates to icons and graphics, you can create products and sell them on Envato Market or Creative Market.
How to Get Started:
- Create templates: From business cards to website templates—whatever has value will help.
- Sell your designs: Create an account and upload your work to Envato or Creative Market.
- Get paid: You get a commission every time someone purchases your work.
It’s a seamless way to earn money based on your design skills!
22. Rent Your Parking Space
If you have a parking space you seldom use, rent it out for the day, week, or month. Depending on the area, parking spaces are at a premium!
How to get started:
- Post your space: Use places like Parkopedia or even Facebook Marketplace.
- Determine the rate: Figure out how much you think is reasonable to rent it out.
- Collect rent: Accept payment from those who need to park.
Another great passive income option, especially if you live in a high traffic area with little parking.
23. Crowdsourced Delivery (Parcel Delivery Service)
Is your city a logistics paradise? Crowdsourced delivery of parcels like Lalamove or GrabExpress. You don’t need a car to deliver parcels—you can use your motorbike, your bike, or your own two feet and take public transport.
How to Get Started:
- Sign up for these sites: Offer yourself as a parcel courier on Lalamove or GrabExpress.
- Deliver parcels: If you are the drop-off location when clients need their parcels sent, accept client requests.
- Get paid: Earn a fee every time you successfully deliver a parcel.
This is also a wonderful side gig and one that can grow over time.
Conclusion: Creating passive income in the Philippines means financial independence and stability. There are many ways to earn money in the Philippines, from real estate ventures to digital endeavors and crafty pieces, where minimal effort is required. So explore your interests and expertise and take the necessary steps today to achieve passive income in the Philippines. With diversified income streams and the right resources, you’re sure to have a great start for many years to come.
Last modified: February 24, 2025
