Everyone talks about passive income like it’s free money while you sleep. Spoiler: It’s not that passive. I tried 3 different “passive income” ideas over 8 months. Only 1 actually made me consistent money. The other 2? Wasted time and some money.
Here’s what worked, what flopped, and what “passive” actually means (hint: it’s not what you think).
What Passive Income Means
Before trying any option for passive income, I thought I understood it.
My previous perceptions: Do something one time and then make money with little to no effort after that.
What it really is: Do a lot of work in the beginning and then make money with little effort over time.
Passive Income Idea #1: Dividend Stocks (WORKED)
Timeline: February 2024 – Present (10 months)
Amount invested: $1,200
Passive income made: $31 (so far)
Final verdict: It works, but is SLOW.
What I did:
I made a brokerage account (Fidelity) and invested in stocks that pay dividends.
Picks:
- $400 in SCHD (Schwab dividend ETF – pays dividends every quarter)
- $400 in VYM (Vanguard dividend ETF – for dividends every quarter)
- $400 in individual dividend stocks (Coca-Cola, Realty Income)
These stocks pay dividends every quarter (every 3 months).
Results after 10 months:
I received $31.47 in dividends and $140 in stock value (for a total of $171.47).
Breakdown:
$31.47 total dividends received after 10 months. $7.23 in Q1 deposits (Feb-Apr). $8.11 in Q2 (May-Jul). $8.45 in Q3 (Aug-Oct) $7.68 in Q4 (Nov) (partial).
Also, my stocks increased in value by about $140, but that’s not “passive income” until I sell.
Why this strategy worked:
- Really passive (just have to buy, and I’m done)
- Money shows up automatically every 60 days
- No active involvement
- Minimal risk (diversified ETFs)
Why this didn’t work:
- Extremely slow (need to put over 10k just to get some serious cash flow)
- 1,200 bucks to get 31 bucks in 10 months (2023 had a 2.6% dividend yield)
- Not life-changing money
Would I recommend it?
Yes, just keep your expectations in check.
After real return in months…
$1,200 invested = ~$40/year
$10,000 invested = ~$330/year
$100,000 invested = ~$3,300/year
It’s a long game.
Passive Income Idea #2: Print-on-Demand (FAILED)
Timeline: April – July 2024 (4 months)
Money invested: $0 (time only)
Passive income made: $18
Final verdict: Not worth the effort
What I did:
Students made some designs so they could sell t-shirts, mugs, and cases on Redbubble and TeePublic.
I made 30 designs in Canva.
Here’s what I did:
- Created designs with sayings like “Budgets Are Sexy”.
- Created designs with motivational sayings.
- Added minimalist graphics.
After 4 months, here are the results:
Sales: 4
Earnings: 17.82
Sales Breakdown:
- 2 shirts sold ($4.50 each)
- 1 mug ($3.20)
- 1 sticker ($5.62)
Reasons I think I failed:
- Huge Competition (millions of designs)
- Not enough unique designs
- NO Marketing = NO SALES
- 30 designs take 20-30 hours
- $0.60/hour return on my time (after making $18 from 30 hours of work)
Would I recommend it?
Only if you’re an actual good designer.
If you’re like I did, where I just used Canva and added text to templates, you’ll get the same results: virtually nothing.
Not worth the time unless you’re actually decent with design or you have an audience ready to buy.
Passive Income Idea #3: Affiliate Marketing (MIXED RESULTS)
Timeline: May 2024 – Present (7 months)
Money invested: $29 (domain + hosting for a simple site)
Passive income made: $0
Final verdict: TBD (too early to tell, but not promising)
What I did:
Created a simple blog about budget apps and signed up for affiliate programs:
- YNAB affiliate (earn $9 per signup)
- Amazon Associates (earn 1-4% on purchases)
- Credit Karma affiliate
Wrote 5 blog posts and linked my affiliate links.
7-month results:
Traffic: ~ 120 visitors total
Clicks on affiliate links: 8
Signups/purchases: 0
Total revenue: $0
What happened:
- Blog visitors (SEO is a great way to get organic traffic, and it is a long game with a 6-12 months wait)
- Blog is not promoted anywhere
- Not a lot of content (5 posts are not enough)
- here was a loss of motivation
Why I’m not done yet:
- SEO is a long game (9-12 months is very likely to start seeing traffic)
- Blog still needs to be promoted
- It needs more content (25 more posts)
Would I recommend it?
Maybe, but you have to be patient.
Understanding Realistic Affiliate Marketing Timeline
Affiliate marketing can work, but not without patience. Patience takes time, and so will the work. It will take:
- 6-12 months for traffic to build
- 1-2 posts a week for consistent content creation
- Knowledge of SEO
- Most importantly, patience
I might look back on this in six months if I actually commit to regular posting.
Understanding “Passive” Income
Here is what I learned:
True passive income is earning money from doing nothing. You do something once (invest money) and money comes in automatically while doing little work. Examples include:
– earning interest from your savings
– rental income
– dividend stocks
Semi-passive income is earning ‘income’ from your affiliate marketing and online courses. It requires:
– A lot of up-front work (months of content creation)
– Ongoing maintenance
– It is not passive
There are so many more ways to not earn passive income, including freelancing and marketing yourself (a full-time job).
My Current “Passive Income” Breakdown
After 8 months of trying, I’ve earned:
Monthly passive income = ~$3-4 (dividends)
Not life-changing. Not even coffee money. But it is growing. I reinvest my dividends and buy more shares every quarter.
With consistent investing, it could be $50-100/month in 5 years. $200-300/month in 10 years… slow, but actually passive.
What I Would Do Differently
1. Start with dividend stocks only.
Skip print-on-demand unless you’re a designer. It’s oversaturated.
2. More aggressive investments in stocks
To make a substantial impact, you need to spend around $5,000 to $10,000. $1,200 is nothing.
3. Give affiliate marketing a real shot
I quit too soon; I should have posted 2 to 3 times a week for at least 6 months straight.
4. Avoid unrealistic expectations
Passive income won’t be able to replace your job for a long time, if at all.
It’s just supplemental income that increases with time.
Conclusion
There is real passive income, but it is:
- SLOW (requires a lot of capital) – dividend stocks, real estate
- DELAYED (requires a lot of time) – affiliate marketing, online courses
- OVERHYPED (these things rarely work) – dropshipping, print-on-demand
I will continue to invest in dividend stocks because, after the initial investment, they are truly passive. Affiliate marketing? I will probably consider it again if I really decide to work on it.
Print on demand? Nope, not doing that. Lower credit card expenses create more room to explore passive income ideas
If you’re just starting, focus on one thing. You’ll need to give it 12 months before you can judge whether it works or not. Passive income is real, but not quick, easy, or effortless.
Feni. Personal Finance Writer & Budgeting Researcher
Feni focuses on practical budgeting systems, debt reduction strategies, and long-term financial stability. Her work combines real-life experience with research-based financial principles to create sustainable money habits rather than quick-fix solutions.
At ThriftVine, she shares structured, accessible guidance to help individuals build stronger financial foundations and make informed financial decisions.
The information shared on this website is for educational purposes only and should not be considered financial advice. Visit the About the Author page for more information.