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10 Passive Income Ideas for 2023

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10 Passive Income Ideas for 2023

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  • Popular passive income ideas include online courses, as well as renting out property, tools, and equipment to others.
  • Payout amounts for passive income streams like royalties can vary depending on the medium.
  • Even though the goal is passive income, there may be a bit of active work required at the start.

Passive income isn’t exactly money for nothing. But it can be a great way to increase your earnings outside of a regular job.

The idea behind passive income streams is that you can collect money from something you own — be it a rental property, dividend-paying stock, or even your automobile — without a lot of sustained effort. However, many passive income ideas may require a significant upfront investment of time and labor to generate profits later.

“All passive income projects involve some form of time, energy, or financial commitment on the onset,” says Tiffany Grant, a financial literacy evangelist and host of the Money Talk With Tiff podcast. “Sometimes people will give up before it has a chance to truly take root and grow.”

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With the hundreds of possible passive income streams available, which ones are the best for 2023? Here are 10 of the best ideas:

10 of the best passive income ideas for 2023 

1. Dividend stocks

Dividend stocks pay out a portion of a company’s earnings to shareholders on a regular basis, usually quarterly. Generally, companies that pay dividends have been around for a while and moved from the growth phase of their business and into maturity. For example, companies like Coca-Cola, IBM, and McDonald’s have paid increasing dividends for more than 20 consecutive years.

Generating income from dividend stocks is fairly easy, as dividend payment amounts can be found on most brokerage apps as well as the company’s investor relations pages. The catch is the amount of money required to generate a substantial income.

See Insider’s picks for the best online brokerages >>

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For example, in 2022 Coca-Cola (KO) paid a quarterly dividend of $0.44 per share, providing $1.76 for each share investors owned throughout the year. Let’s say shares of Coca-Cola were selling for $60, you would need to buy nearly $410,000 worth to make $12,000 in dividends for the year.

2. Bonds and bond funds

Investing with bonds or bond funds can be another way of generating passive income. Bonds are loan obligations issued by companies and governments to raise money from investors. When you purchase a bond, you are essentially lending money to the issuer for a set period of time, usually one year or longer. In exchange for the loan, the issuer promises to make interest payments throughout the life of the bond and return your initial investment. A bond fund is a pool of bonds managed by an investment professional. 

Here is an example of how a bond would work: You purchase a five-year $1,000 bond from Company X with a 2% interest rate. Each year, Company X will pay you $20 and at the end of year five, you will receive your principle of $1,000.

There are different types of bonds and bond funds with different levels of risk and interest rates. Government bonds issued by the US Treasury are recognized as one of the safest investments available but generally pay much less than comparatively riskier options like corporate bonds. Also note that the face value of a bond can fluctuate based on market conditions, if you hold the bond to maturity you will receive the principle, but if you sell the bond before the maturity date the value could be higher or lower.

3. Peer-to-peer lending

Peer-to-peer lending, also known as P2P lending, is a financial transaction in which individuals borrow and lend money to one another without the use of a traditional bank. Peer-to-peer lending allows individuals to act as a bank, providing money (generally between $1,000 and $25,000) to borrowers and receiving interest in return. This is accomplished typically online through a digital platform or marketplace that connects lenders with borrowers. 

4. Rent out your property or portions of it

Renting out a property or a portion of a property can be an excellent way to generate passive income or offset the cost of owning the property. Airbnb and Vrbo are some of the most common platforms used to list your property’s availability to potential guests. Before you rent, whether through an online market or on your own, you may want to familiarize yourself with any rules and regulations in your area.

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There can be parts of the rental process however that may not be passive. This is the case if there is a maintenance issue on the property and could require you to hire someone to attend to the issue or fix on your own. These potential costs should be factored in as you approach this idea.

5. Royalties

Royalties are payments made to individuals or businesses for the ongoing use of their intellectual property, such as music, books, patents, and trademarks. These payments are typically a percentage of total sales generated by using the copyrighted material.

The amount that can be made through royalties will depend on the type of product you produce as well as the frequency in which it is used. If you self publish a book, you have the ability to change the price and have greater control on your income potential. But royalties on music can be different. For example, on some music streaming platforms it could take 250 plays for you just to make a single dollar. Keep in mind that notoriety and marketing can play a major factor in how much money can be made. 

6. Renting out your car

Similar to renting out a home or a room, you can also rent your car as well. Platforms such as Turo enable people to list their cars for rental. Rental payments may depend on the type of car, its condition, availability, and mileage.

There may be some upfront costs in terms of cleaning and maintaining the car, but once listed you can begin generating an income. Keep in mind that some rental markets are better than others and that the type of car you list could be more attractive to certain buyers than others.

7. High-yield savings and CDs

In most years, putting money into a savings account or certificate of deposit (CD) doesn’t yield enough returns to be considered a passive income stream. But things have changed with the Federal Reserve raising interest rates. Both high-yield savings and CDs were paying between 3-5% in early 2023. Both come with the added benefit of FDIC protection and without the worry of market volatility. This means that a depositor can earn a predictable return on the money added to the account.

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It is important to note that CDs have a maturity date and if withdrawn before maturity, you could incur an early withdrawal penalty depending on the bank. Additionally, most high-yield savings accounts have a limit on the amount of transfers and withdrawals each month.

8. Affiliate Marketing

Affiliate marketing is an online business model that allows an individual to earn a commission from sales through referrals. Through this method, affiliates use their website or social media accounts to promote products or services for other companies. When a visitor clicks on a link and makes a purchase, the affiliate earns a commission.

“I love that I can get paid for promoting products and services that I know and love,” Grant says. Keep in mind that if you’re using affiliate referral programs, you should disclose this to those you’re marketing to.

The potential income through affiliate marketing can vary by industry as well as the brand. For example, some companies may pay between $5-25 for every person that signs up through your link, while others may pay $75 or more.

9. Online Course and Products

According to a McKinsey & Co. study, demand for online courses increased from 300,000 online learners to 220 million between 2011 and 2021. If you have a skill worth teaching to others, there is likely a market of participants.

“Although it takes some time, money, and energy upfront, once it is created, it’s done and can make money in perpetuity,” Grant says. That upfront energy could include synthesizing the information, recording, and editing videos and course materials. 

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Course platforms like Thinkific and Teachable allow course creators to offer payment plans to prospective buyers, which can provide a more stable cash flow over time. You could also opt for an affiliate model in which others can market your course and receive a share of the revenue.

If you’re unsure about what topics to teach, consider using your professional background as inspiration. “Since I already knew how to create guides, infographics and templates for my students in the classroom, I implemented the same strategy to monetize my ebooks, newsletters, and other forms of digital assets,” says Melissa Jean-Baptiste, a former educator and founder of the Millennial In Debt financial literacy blog. “I didn’t have to go learn all new skills or take an expensive certification. Instead I leaned, yet again, into my education skills and used that to make money passively with zero to very little overhead,” she adds.

Additionally, it’s important to remember that course creators will need to continue to promote and update the course materials in order to keep up with industry changes and ensure relevance.

10. Rent Your Tools and Equipment

If you have tools at home, you can rent them out to generate passive income. Similar to peer-to-peer lending or renting out your car, you can rent out repair tools like saws, drills, and ladders for an hourly rate. Online marketplaces like ShareGrid is a marketplace for renting camera equipment and marketplaces like Sparetoolz and FriendWithA allow users to list their tools. For a much broader range of items to rent out, Rentle may be a good place to begin your search as items from baby strollers to bikes are regularly listed.

You may want to take into account any maintenance cost for the equipment and have insurance when appropriate. With the right rental market and demand, there may be opportunities to scale and expand your earning potential.

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AI Will Transform the Workplace. Here’s How HR Can Prepare for It.

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AI Will Transform the Workplace. Here's How HR Can Prepare for It.

Opinions expressed by Entrepreneur contributors are their own.

Our workplaces are about to undergo an unprecedented level of transformation, and HR will take center stage. Artificial intelligence will dramatically reshape HR in a way that goes beyond recruiting, hiring and talent management. Leadership teams at all levels need to embrace this change to transform and lead their organizations forward.

It’s the people, and not the technology, that makes AI initiatives a success. Intrapreneurs, in particular, are the driving force behind it. As I shared in Fearless Innovation, I noticed this when I was working on the innovation agenda for the Great Places to Work study — the most innovative companies were those that had a leadership team that was embracing intrapreneurship and were open to change.

HR is the beating heart of any organization, and as such, it needs to take center stage in both adopting and leading ethical and innovative AI transformation across the organization.

Related: How Artificial Intelligence Is Reinventing Human Resources

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4 tectonic shifts AI will drive in HR

1. A new wave of massive reskilling

As AI becomes more prominent across business functions, the need for new skills will only grow. Forty percent of enterprise leaders believe that their workforce would need to reskill as a result of AI and machine learning. In fact, research shows almost a third of all hours worked in the U.S. could be automated by 2030.

All of us need to reskill to some extent to be relevant in the AI era. Not only would people need to re-train, but generative AI is introducing a whole host of professions that have been non-existent until recently, from AI ethicists to human-AI interaction designers. Some of these roles might sound futuristic, yet they are becoming increasingly relevant as technology advances.

2. The great restructure

As automation takes center stage across more business functions, there will be the inevitable need for organizations to restructure and rethink how they work. This transition will not only involve the integration of new technologies but also introduce a shift in the workforce dynamics. Intrapreneurs will need to identify gaps both in skills and operational processes and forge brand-new roles for themselves and those they manage. HR must play a key role in enabling a smooth and easy transition in this regard. The transition will not be smooth or easy, and it’s only HR that has the capability to make it impactful.

3. Arrival of “digital humans”

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“Digital human” may sound like an oxymoron, but that’s the term that’s starting to appear in business and operational plans. More roles, regardless of industry, are becoming digitally enhanced where some form of AI assistance is embedded in their everyday work. A real-life example is the introduction of the digital nurse — AI-powered healthcare agents which have already been proven to outperform human nurses in certain tasks.

Imagine the impact these digital roles will have on the workforce the more sophisticated and prevalent they become. Eventually, HR will need to create policies and systems in place that account for this new type of “staff augmentation.”

4. Regulating the robot

The threat of AI bias and misuse is serious. Not only can the technology put many jobs at peril, but potential improper implementation can expose organizations to serious liability and negatively affect the workforce. From avoiding bias to inclusivity, HR teams play a critical role in the ethical deployment and management of AI technologies.

HR professionals will be tasked with navigating the delicate balance between leveraging AI for efficiency and ensuring that its application upholds fairness, privacy and non-discrimination.

Related: How to Successfully Implement AI into Your Business — Overcoming Challenges and Building a Future-Ready Team

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What HR intrapreneurs must do to embrace AI the right way

The future of work is being shaped by AI adoption, and its success hinges on the right approach from the outset. My experience shows that for successful organizations, one universal trait stands out: the presence of change agents. Every organization, regardless of size, benefits from intrapreneurs who are open to change and committed to spearheading transformation efforts. These intrapreneurs are pivotal in driving the future of work, as they help orchestrate the integration of new technologies into their business models.

HR and talent leaders should harness this dynamic, encouraging a symbiotic relationship with intrapreneurs to develop customized solutions for AI adoption, ensuring that they are not just keeping pace with technological advances but are actively shaping their trajectory.

Securing a seat at the table:

HR should take a proactive stance in the adoption of AI, even if it is still in its early stages within your organization. By securing a position at the forefront of the AI initiative, HR can and should facilitate and guide the entire organization in embracing this significant change.

As AI has the potential to impact every facet of the organization, it is imperative for HR to not only understand and advocate for this technology but also lead its integration across all departments. HR should encourage and support intrapreneurs and all employees to leverage AI in their daily tasks, demonstrating its value not just for operational efficiency but for personal and professional growth as well.

Master the technology:

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To effectively navigate and regulate AI, HR must first understand it thoroughly. Grasping the full potential of this technology is crucial for reaping its extensive benefits. HR plays a vital role in identifying the necessary tools and skills that employees must acquire and then integrating these learnings into daily work practices.

Before implementing AI more broadly, HR should initiate comprehensive training programs that not only educate but also reassure employees about AI’s role in the future of the business. By leading these educational initiatives, HR can shape the structure and effectiveness of these programs, ensuring they meet the needs of the organization and its workforce.

Related: 3 Ways to Prepare Your Business For an AI Future

Looking ahead

Generative AI has the transformative potential to redefine the business landscape, but realizing this vast potential hinges on more than just the adoption of technology. It critically depends on the talent within the workforce, driven by HR and bold intrapreneurs. These visionary leaders don’t just implement new tools; they exemplify their use, demonstrating the profound impact of AI across every level of the organization.

HR plays a pivotal role in fostering this environment, enabling intrapreneurs to guide and inspire every individual they touch. Together, they turn each employee into a catalyst for change, igniting a widespread passion for innovation that deeply resonates and sustains long-term success.

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Samsung: 6-Day Workweek For Execs, Company in Emergency Mode

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Samsung: 6-Day Workweek For Execs, Company in Emergency Mode

Four-day workweeks might have all the buzz, but one major tech company is going in the opposite direction.

Samsung is implementing a six-day workweek for all executives after some of the firm’s core businesses delivered lower-than-expected financial results last year.

A Samsung Group executive told a Korean news outlet that “considering that performance of our major units, including Samsung Electronics Co., fell short of expectations in 2023, we are introducing the six-day work week for executives to inject a sense of crisis and make all-out efforts to overcome this crisis.”

Lower performance combined with other economic uncertainties like high borrowing costs have pushed the South Korean company to enter “emergency mode,” per The Korea Economic Daily.

Related: Apple Is No Longer the Top Phonemaker in the World as AI Pressure and Competition Intensifies

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Executives at all Samsung Group divisions will be affected, including those in sales and manufacturing, according to the report.

Samsung had its worst financial year in over a decade in 2023, with the Wall Street Journal reporting that net profit fell 73% in Q4. It also lost its top spot on the global smartphone market to Apple in the same quarter, though it reclaimed it this year.

Though employees below the executive level aren’t yet mandated to clock in on weekends, some might follow the unwritten example of their bosses. After all, The Korea Economic Daily reports that executives across some Samsung divisions have been voluntarily working six days a week since January, before the company decided to implement the six-day workweek policy.

Entrepreneur has reached out to Samsung’s U.S. newsroom to ask if this news includes executives situated globally, including in the U.S., or if it only affects employees in Korea. Samsung did not immediately respond.

Research on the relationship between hours worked and output shows that working more does not necessarily increase productivity.

A Stanford project, for example, found that overwork leads to decreased total output. Average productivity decreases due to stress, sleep deprivation, and other factors “to the extent that the additional hours [worked] provide no benefit (and, in fact, are detrimental),” the study said.

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Related: Samsung’s Newest Galaxy Gadget Aims ‘To See How Productive You Can Be’

Longer hours can also mean long-term health effects. The World Health Organization found that working more than 55 hours a week decreases life expectancy and increases the risk of stroke by 35%.

The same 55-hour workweek leads to a 17% higher risk of heart disease, per the same study.

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John Deere Hiring CTO ‘Chief Tractor Officer,’ TikTok Creator

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John Deere Hiring CTO 'Chief Tractor Officer,' TikTok Creator

This article originally appeared on Business Insider.

Agriculture equipment company John Deere is on the hunt for a different kind of CTO.

The brand on Tuesday announced a two-week search to find a “Chief Tractor Officer” who would create social media content to reach younger consumers.

One winning applicant will receive up to $192,300 to traverse the country over the next several months showcasing the way John Deere products are used by workers, from Yellowstone National Park to Chicago’s Wrigley Field and beyond.

“No matter what you do — whether it’s your coffee, getting dressed in the morning, driving to work, the building you go into — it’s all been touched by a construction worker, a farmer, or a lawn care maintenance group,” Jen Hartmann, John Deere’s global director of strategic public relations, told AdAge.

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To kick off the search, John Deere tapped NFL quarterback Brock Purdy (who will presumably be a bit busy this Fall to take the job himself) to star in a clip in which he attempts to set out on a road trip in an industrial tractor.

Suited up in the obligatory vest, work boots, and John Deere hat, Purdy’s progress is interrupted by teammate Colton McKivitz hopping into the cab while a string of messages floods in from other athletes and influencers expressing interest in the job.

The clip also represents the first time that the 187-year-old company has used celebrities to promote itself, Hartmann told AdAge.

According to the contest rules, entrants have until April 29 at midnight to submit a single 60-second video making their pitch for why they should be the face and voice of the company.

In addition, entrants must live in the 48 contiguous states or DC — sorry Hawaii and Alaska residents. Interestingly, any AI-generated submissions are prohibited, too.

Videos will be judged against four categories — originally, creativity, quality, and brand knowledge — after which five finalists will be chosen and notified after May 17.

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