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How To Generate Shopify Passive Income: Ideas & Tips
Earning passive income is not an uncommon thing to do in this society, especially among young adults. These incomes can be auto-generated even without your presence or active management. One of the most simple and requires little effort to earn passive income is through Shopify.
So, if you want to learn how, refer to this article, as we will recommend the most simple Shopify passive income. Ready? Here comes the money!
What Is Shopify Passive Income?
Passive income means earning money that requires minimal effort, while active income usually comes from your full-time job, where you have to commit and work constantly to earn.
Nowadays, these earning types are popular investments for young adults as they usually come from selling digital products, commissions from online sellers, affiliates from eCommerce platforms, a prerecorded eCourse, etc. Simply put, passive income is like ongoing earnings from something you’ve previously created.
Shopify passive income is no different, except it is specifically generated on Shopify.
Once you create your Shopify online store and optimize it successfully to make consistent revenue, you can manage it whenever and wherever you want without having to actively monitor 24/7 and setting up like the initial phase.
As for who should consider creating passive income streams:
- Content Creators: commissions or earning affiliates through their videos.
- Artists and Creators: selling digital prints or licensing their work for ongoing royalties.
- Coaches and Consultants: creating online courses or e-books that are accessible anytime.
- Developers and App Creators: making apps or plugins that people keep purchasing or subscribing to.
However, Shopify passive income really is for anyone to start with, even without an online reputation.
The idea is that anyone with a skill, knowledge, or product can potentially turn it into a passive stream. It's about creating something once that continues to provide value and generate income consistently.
Remember, though, that "passive" doesn't mean "no work at all." There's usually significant effort upfront and some ongoing maintenance required. But the goal is to create a system that can earn money without your constant daily involvement.
Shopify passive income requires minimal effort and a low budget to start. Source: Yahoo Finance
The Benefits Of Passive Income
You know that these passive income ideas are mainly for increasing earning. But is that it?
No, having this source of income is actually more beneficial than that, such as:
- Automation and Scalability: Once you set up your passive income stream, many tasks can be automated. This is like having a robot helper who can do work and grow your business, even without your presence.
- Global Market Access: The internet lets you reach customers all over the world. You're not limited to selling to people in your town or country. So, turns out your potential customer base is huge!
- Recurring Revenue Opportunities: These incomes are consistently generated, which means you have customers purchasing from your store regularly, as long as you maintain high-quality products or services over time.
- Low Start-Up Costs: Many passive income ideas don't need a lot of money to get started. You might be able to begin with just a computer and a good WiFi speed.
- Flexible Business Models: Passive income ideas to increase earning are diverse. You have options to showcase your expertise through a physical or digital product (eCourses, digital products, or renting out property).
- Ongoing Income: Once set up, a passive income stream can keep making money even when you're not actively working. It's like planting a tree that keeps giving fruit.
- Hands-Free Fulfillment: For many digital products or services, you don't have to personally package or ship anything. The customer gets what they paid for automatically, without you having to do anything for each sale.
8 Shopify Passive Income Ideas
1. Dropshipping
As an eCommerce expert or even a starter, you’ve probably heard about dropshipping, right?
To simply explain, dropshipping is a retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product using the dropshipping model, it purchases the item from a third party and has it shipped directly to the customer. As a result, the seller doesn't have to handle the product directly.
The process of dropshipping. Source: Shopify
See how this process requires minimal effort and a low budget to start on? Because all you need is to find a reliable third-party to partner with.
Fortunately, Shopify is particularly the best platform for this method on how to make more money in 2024. Dropshipping on Shopify requires:
- Minimal upfront investment: You don't need to purchase inventory in advance.
- Low overhead: No need for warehouse space or to manage shipping logistics.
- Flexibility: You can run the business from anywhere with an internet connection.
- Scalability: Easy to add new products or expand into new niches without significant additional costs.
Pro tip: Start dropshipping on Shopify is the most effective way because there are thousands of apps to support your business, from Dropshipping Apps to payment methods. Also, there are many Shopify dropshipping stores for you to learn from.
2. Print-On-Demand
Similar eCommerce investments for young adults, like dropshipping, are called ‘print-on-demand.’
However, unlike dropshipping, where anyone can get started, print-on-demand is more particular for artists, designers, or entrepreneurs. It is a business model where you sell white-label products, usually t-shirts, posters, or backpacks, that are produced based on buyers’ customized designs and are only available when they place an order.
The process, after that, runs like dropshipping: once you've set up your store and designs, the supplier handles production and shipping, and you don't pay for products until they're sold. In the end, this concept continues to generate consistent sales, even more so when you know how to market them efficiently.
Print-on-demand is a popular Shopify passive income to increase earnings. Source: Shopify
3. Online Courses (eCourses)
Discussing efficient yet consistent passive income ideas to increase earnings, selling online courses or eCourses is ideal, especially if you are confident with your knowledge in a particular field and want to showcase it.
Although compared to dropshipping or print-on-demand, eCourses require little to no budget at all. Yet, it needs you to invest time and knowledge to prepare educational lessons and turn them into engaging lectures, record them, and create assets like templates for practice.
Yes, it might take hard work in the initial phase, but trust us! These materials can be sold repeatedly and generate auto sales for you in the long run.
4. Digital Products
In case you don’t feel like sharing your expertise through eCourses, there are various alternative digital options.
These digital products are things you can sell online that customers can download or use on their computers or phones, usually kits, ebooks, design templates, music files, or whatever useful things that many people are looking for online.
how to cake it is the Shopify website sells e-version cookbooks. Source: how to cake it
Similar to eCourse, these Shopify passive income ideas are effortless to do. How?
- You make it once and sell it many times.
- You don't need to store anything physical.
- Customers can buy and get the product instantly.
- It costs very little to keep selling once you've made the product.
- You can make as many different digital products as you want.
Pro Idea: Create a Shopify web design or landing page template using a simple drag-and-drop tool like GemPages. This is one of the verified popular passive income ideas for increasing earnings in 2024.
5. Affiliate Business
You might be familiar with affiliates - the concept of earning commissions on every referral link clicked that anyone can jump in (through social posts, blogs, videos, etc). This is among the most popular investments for young adults, particularly through Shopify, one of the leading platforms to run an affiliate business.
Here are the “requirements” to start an affiliate business:
- Low startup costs: You don't need to create or stock products.
- Flexibility: You can promote products you believe in.
- Scalability: Your earnings can grow as your audience expands.
- Passive income potential: Once content is created, it can generate income over time.
- No customer service: The product owner handles customer issues.
However, many people misunderstand viral branding or reputation or have to become an influencer to affiliate. That’s actually not true.
Though having audiences can significantly support you in earning affiliates, you can start without branding. One of the suggestions is to participate actively in forums and Q&A sites, offering helpful advice along with links to the recommended service/product.
6. Artwork License
Artists, license your artwork!
It is one of the simplest yet the best ways to showcase how worthy your artwork is. This is how you do it:
- You create artwork (like illustrations, designs, or photographs).
- Someone wants to use your art (maybe for products, websites, or ads).
- You grant them a license to use it, typically for a fee (For a one-time use license, charge 3-5% of the artwork's retail price as a royalty. For unlimited use, increase the royalty to 5-10%).
- Whoever buys can now legally use your art as agreed in the license terms.
If you are wondering whether these passive income ideas for increasing earnings can be done through Shopify, the answer is yes. Create an online Shopify store to showcase your works, then market them efficiently, wait for the recognition, and earn!
Cap: Hatecopy is a Shopify website that sells various artworks with license. Source: Shopify
Besides arts, you can license any of your inventions (music, apps, etc). Ensure they are 100% original and made by you, without any copy from external sources.
7. No-code Apps On Shopify App Store
Hey developers, this Shopify passive income idea is for you!
A no-code app is a software application created without traditional programming. Instead, it uses visual interfaces and drag-and-drop tools, allowing non-technical people to build functional apps. Platforms like Appy Pie, Adalo, and Bubble make this possible. This method is proven to generate auto sales in the long term, especially if you made them specifically on the biggest app stores like App Store by Apple, Google Play for Androids, or Shopify App Store.
You can create complicated apps for advanced purposes. However, no-code apps are more accessible to almost every type of user (even low-tech ones).
Refer to GemPages, a drag-and-drop landing page builder, as an example of a no-code app. Source: GemPages
To begin your no-code app journey, consider these key steps:
- Subscriptions: Offer premium features for a recurring fee
- In-app ads: Generate revenue from advertisers
- Pay to download: Charge a one-time fee for app access
- Marketplace model: Facilitate transactions between users and take a commission
*Tip: Some helpful no-code app ideas for Shopify stores are cross-sell recommenders, Product customizers, loyalty program automation, etc.
8. Existing Shopify Stores
How about exchanging existing Shopify stores? Although this concept is quite new to eCommerce starters, it is a source of passive income for many people. Here is a breakdown:
- Find websites for sale on marketplaces like BizBuySell or Flippa.
- Evaluate potential purchases based on traffic, income, and growth potential.
- Negotiate a price and complete the purchase.
- Take over operations, maintaining or improving the site's performance.
- Optionally, enhance the website to increase its value (the higher the traffic, the better the value).
- When ready, list the improved site for sale at a higher price.
Although this concept might require higher initial investment and effort compared to other passive income ideas to increase earnings, the profit after all is worth considering (can be up to a few hundred thousand dollars depending on the niche and monthly traffic).
Tips To Find The Right Passive Income Ideas To Increase Earning For You
As you have noticed from those Shopify passive income ideas mentioned above, there are numerous ways to obtain another source of income that requires little budget and effort.
However, too many options can bring confusion. So, let’s narrow down some tips to find the right passive income to increase earnings for you:
- Identify Your Strengths and Interests: Choose what aligns with your interests. For example, if you're good with words, consider writing e-books or starting a blog. These ideas not only maximize your potential but will make the process more enjoyable.
- Start Small and Scale: If you are a starter, begin with a single, manageable project. By doing this, you can measure how much effort to invest in this passive income source, then organize your time accordingly to avoid overlapping with your full-time job/school.
- Research Market Demand: Use tools like Google Trends or social media to see what people are searching for. Then, utilize it. For example, if you're thinking about creating an online course, check popular learning platforms to see which topics are in demand.
- Stay Up-to-Date with Trends: Follow industry news, join relevant online communities, and attend webinars or conferences when possible. Being aware of trends helps you spot opportunities early and adapt your passive income strategy accordingly.
Conclusion
The thought of having another source of income is not time-consuming and requires high investment costs, as you imagine, right?
Remember, eCommerce is a growing field, especially for platforms like Shopify. Therefore, Shopify passive income is a worthy investment for young adults and even adults who might need a bit more time to get used to all the technology.
Remember, passive income should come from something that you can earn anywhere, anytime, without having to manage it actively. Be aware that this is ‘passive’ income, so do not overlap it with your full-time work. Otherwise, you will lose its original purpose.
FAQs about Passive income ideas
