The Easiest Ways to Make Passive Income According to TikTok
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ExpertiseAnouare is a seasoned writer, editor and content strategist who started her career as a lifestyle journalist before stepping into leadership roles at publications such as AskMen and Goalcast. From editorial strategy to content marketing and project-management, she has tackled various challenges in digital media and discovered her passion for mentoring others in the process. She loves a good money mindset book and believes you can create your dream lifestyle by being yourself.
Read full bioAnother day, another get-rich-quick video floating around TikTok. The hashtag #passiveincome has 4.2 billion views on the platform, with personal finance influencers sharing how they set up passive income streams and how you can make easy money too.
So, how do you sift through promises that are too good to be actual revenue-making opportunities? It’s all about understanding what it takes to succeed because easy money is never that easy and does require some legwork – at least upfront. To help you determine the right “easy” side hustle for you, here’s what you need to know about the most popular passive income sources on TikTok.
38.8%
Of Gen Zers learn about personal finance from TikTok, YouTube, or other social media platforms, like Twitter or Instagram, according to a recent survey.
Selling digital products
One of the easiest ways to make passive income is by selling digital products such as eBooks, online courses, or downloadable templates. If you have a skill or specific knowledge to share, other people may want to pay to learn about it. Plus, you’re creating something once that can generate income over and over again over time. That said, you’ll still need ongoing marketing efforts and a large enough client base to sell your digital products successfully.
Affiliate marketing
TikTokers often discuss affiliate marketing as a source of passive income. This involves promoting products or services and earning a commission for every sale made through your referral link. It’s a very passive and easy way to make money – but you do need a big enough audience for it to work and be worth it.
1. Dropshipping
You’ll also hear content creators mention dropshipping – this entails setting up an online store and working with suppliers to fulfill orders. You don’t need to carry actual inventory because the suppliers you work with take care of that for you. That said, dropshipping is not as easy as TikTok would like you to think. It requires careful planning and savvy management.
2. Day trading
Day trading is the practice of buying and selling stocks within a very short timeframe. It’s about making the most of daily fluctuations in price. That said, it’s pretty speculative and high-risk and you have to know what you’re doing to be able to leverage this approach and earn passive income. In other words, don’t embrace this popular TikTok passive income tactic unless you have in-depth knowledge about investments and trading.
3. Short-term rentals
You’ve probably seen viral TikTok videos about people becoming rich off AirBnB properties. Short-term rentals can indeed be a fantastic source of passive income, but setting that revenue stream up is not as simple as it looks on TikTok. It requires careful research, property management, and some capital upfront. You have to look at it like launching an entire business and educate yourself about the legalities involved.
Bottom line
TikTok is filled with advice on making easy money, but it’s not always as easy as influencers make it out to be. You can create passive income through the approaches above, but you’ll need to put in some effort and keep some downsides in mind.