Z.com Philippines logo represents the brand identity.
May 17, 2023
18 min Read

33+ BEST Passive Income Ideas Philippines for 2023

Passive income is a constant income stream you get from doing something. It’s an income that doesn't require much work after you set it up, but it can be very lucrative if done right. This article presents 33 plus top passive income ideas for 2023 in the Philippines. It is a comprehensive guide for beginners and experienced investors to generate steady income with minimal effort. The ideas range from renting a room in your house to other lucrative options that can provide a constant flow of income once set up.

1. Retail product flipping

Utilize online marketplaces such as eBay or Amazon to sell products you purchase at discounted prices from other sources. You can make a profit by taking advantage of the difference between the cost and the selling price. This can attract customers who are looking for great deals and special offers. By sourcing products at lower prices, you can offer your customers a better deal than they would find elsewhere. This is a particularly good strategy if you have access to exclusive deals or sources of discounted merchandise that others don't have. You may also be able to find hidden treasures that others have missed. Although online sales can happen at any time, making this strategy passive, finding a consistent source of products may require effort. Additionally, you'll need to invest money upfront in your products until they sell, so you'll need solid financial backing. It's crucial to have a good understanding of the market to avoid buying products at prices that are too high, or you could end up with unsold items or have to reduce prices dramatically to sell them.  

2. Invest in real estate

Investing in real estate can be an intelligent way to generate passive income. The key is to start small, learn about the market, and make informed investments. Choose your first investment property wisely, opting for one you understand and feel confident about. Once you have gained experience, focus on properties with good appreciation and rental income potential. Additionally, consider professional help to manage your investments, ensuring that all details are taken care of, even during busy times like tax season or holidays. Even if you're not technically qualified, you may still be able to contribute to managing your investments with some training.

3. Start a business

To start a successful business, identify what people need or want and find a way to provide that service or product at the right price. However, starting a business can also come with challenges. Here are some common mistakes to avoid:
  • Lack of organization - Ensure that essential documents are well-kept and not easily lost by having a clear plan for day-to-day activities.
  • Over/Under-estimating the market - The business idea should be feasible, with a good customer base, and not be overwhelmed by too many competitors offering similar products at lower prices. Overpricing your product may also not be viable if customers opt for cheaper, better-quality alternatives.

4. Start dropshipping

Dropshipping is a profitable e-commerce business model where you sell products without holding any inventory. With low startup costs and access to free or low-cost platforms, such as Oberlo, anyone can start a dropshipping business from anywhere in the world. Oberlo provides wholesale prices on over 1 million items from China, making it easy to create an online store without needing physical storage. Dropshipping is a low-risk way to start a business, and you can even try selling digital products like ebooks or online courses without needing physical inventory. To get started, sign up with Oberlo and use their easy-to-use app to create your store and add products from their vast catalog in minutes. Oberlo even offers new users $10 in free credit to help get them started.

5. Start a blog and promote affiliate links

To start a successful blog, the first step is creating engaging content. Ensure that your blog features high-quality images and videos and informative and relevant information about the topic you're writing about. Next, building an email list is essential after setting up your website with all the necessary features, like domain name registration. This way, you can send subscribers updates about new posts and other related content that may drive traffic to your site via social media platforms like Facebook and Instagram. Keeping your subscribers engaged makes them more likely to return and interact with your blog.

6. Earn money selling advertising space

Consider starting a blog for a hands-off passive income source that's simple to establish. Keep in mind that success with a blog takes patience and dedication. You must cultivate a following for your site to attract advertisers and become profitable. If executed correctly, blogging can be a highly lucrative venture. However, mistakes can occur and hinder your progress without a clear understanding of the tasks and time required.

7. Sell digital products online like e-books, photos, or music

If you're seeking a source of effortless passive income to launch, consider selling digital products like e-books, images, or music online. The great thing about digital products is that they eliminate the need for shipping, making them more convenient to sell. You have the option to sell your digital products both online and offline. For a wider reach, platforms like Amazon, eBay, or Etsy can help expand your customer base globally. However, if you prefer to cater to a local market, Shopify might be a better option, as it is designed explicitly for in-person sales.

8. Use your car for ad placements

Turn your car into a source of income by partnering with a specialized advertising agency. The agency will assess your driving habits, including your driving routes and miles, to match you with a suitable advertiser. If you're a good fit, the agency will wrap your car with the ads at no cost to you. Agencies typically prefer newer cars and drivers with clean driving records. You can earn extra money simply by driving your car, and if you're already putting in the mileage, this is an easy way to earn a few hundred dollars each month with minimal effort or expense. You can be paid based on the number of miles you drive. When considering this opportunity, be cautious and take steps to find a reputable advertising agency. Unfortunately, there are scams in this space that aim to trick drivers out of thousands of dollars. Be vigilant and protect yourself by thoroughly researching the agency before entering any agreement.  

9. Freelance on Fiverr or Upwork

Sell your skills online and turn them into a business with platforms like Fiverr or Upwork. Utilize your expertise in web design, graphic design, content writing, voice-over, or other skills that people are willing to pay for. There's always a demand for these services, and you don't need any initial capital. With abundant resources available online, like YouTube tutorials and easy-to-use website builders like WordPress, anyone can learn new skills and earn money from home.

10. Sell your physical products on Amazon or eBay with FBA

If you are a well-established brand in the Philippines and looking to expand your reach globally, selling on Amazon can be a great option. With a quick and easy setup process, you can have your store up and running in no time. However, ensuring that your products are eligible for international shipping is essential. Not all products can be shipped outside the US due to customs regulations, particularly food items from Asia.

11. Use your social media accounts for affiliate marketing

Affiliate marketing offers an excellent opportunity for generating passive income, both online and offline. By promoting products through your website or social media channels, such as Facebook and Instagram, you can earn a commission when someone clicks on an ad related to those products. ClickBank, Amazon Associates, and Rakuten Marketing are the most widely-used affiliate networks. With no prior experience required, simply sign up with one of these networks, and create your website or social media platform to showcase the products and earn money.  

12. Starting an online business

To start building a website, you need to decide what type of site you want to create. Options include a blog, an e-commerce site, or a membership site where users pay a monthly fee for exclusive access.   Next, you must create the site and ensure it is optimized for search engines like Google. This will help potential customers find your site easily when searching for related keywords. You can hire someone to handle the optimization if you need more skills or time.   Finally, it's crucial to drive traffic to your site. You can build an email list, establish a presence on social media, and promote your site through these channels to increase visibility and potentially generate sales.

13. Start a Print-on-Demand business

If you're an artist, designer, or entrepreneur, print-on-demand can be a great way to monetize your creativity and generate passive income. The concept involves partnering with suppliers to customize and sell white-label products, such as t-shirts, posters, backpacks, or books, on a per-order basis.   Just like dropshipping, you'll only pay for the product after you've sold it, eliminating the need for bulk purchases or inventory management. Print-on-demand stores offer several advantages as a passive income stream, including:  
  • The ability to quickly create and sell products in a matter of minutes
  • Hassle-free shipping and fulfillment handled by your supplier
  • The potential to automate marketing and sales processes once your store is set up
  Overall, print-on-demand is a low-risk, straightforward business idea that can be up and running in no time.

14. Earn passive income as an Instagram influencer

Dwayne “The Rock” Johnson reportedly earns $1 million per Instagram post, but you don’t have to have rock-hard abs or millions of followers to make money as an influencer on the platform.   To become an Instagram influencer and influence your followers' purchasing decisions, you need to establish a community that shares your interests. Start by consistently posting about your passion and building an engaged audience, whether it’s comics, sports, scuba diving, home decor, or anything else.   As your following grows, you can monetize it by partnering with businesses of all sizes to promote their products or by selling your own merchandise. Just like Alex Lange, who runs sponsored posts for brands like Tinder, the opportunities for passive income are endless.  

15. Utilize cashback reward websites

Utilizing cashback reward sites is an easy way to earn extra cash while doing your regular online shopping. By simply signing up and using their links, you can receive cashback on your purchases from participating retailers.   Be mindful of your spending habits, and don't let the potential rewards lead you to overspend or damage your credit. Also, be sure to read the terms and conditions of each cashback site to fully understand their process and any restrictions that may apply.

16. Creating and selling an online course

Utilize your talents and skills to earn passive income by sharing them with others through the power of the internet.   With the popularity of online learning, creating a course on a platform like Udemy or Teachable can open up a world of earning potential. Alternatively, you can sell your course through your website and affiliate programs such as Commission Junction or ClickBank.   Turn your passions into profit by creating an online course and sharing your expertise with others in the Philippines.

17. Investing in a real estate investment trust (REIT)

Investing in a Real Estate Investment Trust (REIT) is a convenient way to earn passive income through real estate. REITs own or manage a collection of real estate assets and offer shares to investors who can invest through mutual funds or other investment vehicles. By investing in a REIT, you can benefit from real estate returns without the hassle of direct property management, avoiding tasks such as tenant management, maintenance, and repairs.  

18. Investing in a food or retail franchise

A food or retail franchise presents a low-risk investment opportunity for aspiring entrepreneurs, as it requires less upfront capital. The low startup and operational costs make it a feasible option, with franchisees only paying a royalty fee, typically 5% to 10% of their sales.   This allows for passive income generation through product and service sales without the hassle of managing a standalone store or restaurant. However, due to the wide range of franchise options available, it's crucial to conduct thorough research before investing in a specific brand or product line.

19. Selling digital products

Selling digital products, such as ebooks, physical goods, and informational products is a cost-effective option for entrepreneurs looking to set up an online store. Unlike selling physical items, digital product sales have fewer setup costs and are easier to scale without having to manage shipping or inventory. This allows for a greater focus on marketing and customer acquisition.

20. Rent out your vehicles

Renting out your vehicles can be a way to earn passive income. This involves leasing your car, truck, or another vehicle to others for a fee, providing a source of regular income without actively using the car yourself. It's essential to consider factors such as the demand for rental cars in your area and the cost of insurance and maintenance before entering this type of passive income stream.

21. Creating and selling an e-book

Writing and selling an e-book is a proven way to earn passive income in today's digital age. There are various channels through which you can sell your e-books, such as your personal website, Amazon, or other platforms like Apple iBooks.   Your e-book can revolve around any subject of your choice - website design, nutritious cooking, cat care, or anything that captivates your imagination. The sky is the limit to your creativity.  

22. Renting out a parking space

If you live in an urban area, you understand the struggle of finding parking. You may be paying for a parking garage or lot with more empty spaces than occupied ones. Consider renting a parking spot to earn extra passive income if you have a driveway or garage.

23. Rent out your spare room

If you have an unused room in your home, you can earn passive income by renting it out. You can partner with a reputable company like Airbnb and earn money immediately.   The demand for Airbnb rentals is high, as they offer a more cost-effective alternative to traditional hotel stays. As an Airbnb host, you can expect your spare room to be in high demand.   For even more income potential, you can consider purchasing properties specifically for the purpose of renting them out on Airbnb. However, remember that getting your rental space ready for guests may require some upfront investment in terms of time and money for furnishing or renovation.

24. Start a photography website and monetize it through ads and affiliate marketing

This low-cost and low-experience business can be started from anywhere in the world with just an internet connection.   Begin by selecting a topic or subject that piques your interest, whether fashion, sports, movies, music or anything else. Then, research the most frequently searched keywords related to your topic using Google or Bing by examining the search engine results pages (SERP) for various keyword combinations. After identifying potential keywords, set up a WordPress account, post your photos, and incorporate keywords.

25. Starting a YouTube channel and monetizing it through ads and sponsorships

By launching a YouTube channel and publishing unique content, you have the opportunity to monetize it through YouTube's advertising platform. You will earn revenue from advertisements displayed before, during, and after your videos.   Additionally, you can collaborate with companies seeking to target your audience by showcasing their products or services on your channel. This strategy is known as affiliate marketing and allows you to earn money from product sales without generating content.

26. Selling handmade or artisanal products through platforms like Etsy

Marketing handmade or artisanal products on platforms like Etsy can lead to a steady source of passive income. Utilizing an Etsy shop can increase sales and revenue while also helping to establish your brand and attract a dedicated customer base, leading to even more growth in the future.

27. Renting out equipment or tools

This passive income idea involves acquiring tools or machinery and leasing them to customers. You can offer rentals for cleaning, construction, gardening, or power tools. This way, you can generate income without utilizing the equipment and earn even more by simultaneously having multiple items available for rent.

28. Creating and selling an app or a software product

Create a simple calculator app and sell it for a fee to generate passive income. You can start with essential calculation functions and gradually add more features as you go. Another option is to purchase an existing app and enhance its functionality to increase its value, then sell the improved version at a higher price. This incredible passive income idea doesn't require special skills or technical knowledge, making it accessible to anyone in the Philippines in 2023.

29. Providing online consulting or coaching services

If you have a talent for assisting others, offering online consulting or coaching services could be a lucrative way to generate passive income.   This type of work is perfect for those who desire to earn extra money from the comfort of their home as it doesn't require extensive specialized training or equipment. The secret is to build proficiency in your domain and offer your services as an online coach or consultant.   You can provide individual sessions with clients over video conferencing software such as Skype, write blog posts about your expertise, or even teach courses through platforms like Udemy or Coursera.

30. Licensing your photography or other creative works

Monetize your photography skills by licensing your photos. It's a straightforward process and doesn't require a lot of investment.   Begin by gauging interest in your images. Share your work on social media platforms like Instagram, Facebook, Unsplash, Pexels, or Pixabay, where it can be seen and potentially used for marketing purposes. You can also directly contact businesses through email or phone calls. Ensure you have a professional portfolio showcasing your work, including all relevant copyright information.   You'll be amazed by the numerous opportunities to license your photos as a photographer.

31. Investing in a vending machine business

Vending machines offer a lucrative opportunity as they can be installed in areas with high foot traffic, such as shopping malls or public spaces, or in office buildings and factories where workers may crave snacks during the day.   The vending machines can offer a variety of items like snacks, pens, gum, candy bars, and bottled water. To maximize profit, it's crucial to select a location with high sales potential and sufficient space around the machine for easy accessibility during purchases.

32. Investing in renewable energy projects or renewable energy stocks

Investing in renewable energy projects can be achieved through various means. You can invest directly in a renewable energy producer, such as a solar panel manufacturer, or in companies that offer to finance such projects and earn interest on the loan. It's essential to note that loan interest rates may vary and conduct proper research before investing. Additionally, investing in stocks of companies involved in renewable energy production or sales can be lucrative but also involves risk as the company's performance over time is uncertain.

33. Invest in domain names

Domain name investing involves purchasing and registering a domain name to sell it for a profit in the future. Domain names can be valuable if they are short, catchy, and relevant to a specific niche or industry.   As the demand for specific domain names increases, so does their value, allowing for potential profits when the domain name is sold. However, domain name investing also comes with risk, as there is no guarantee that the domain name will increase in value or that a buyer will be interested in purchasing it. It's essential to research and carefully consider a domain name's potential before investing.

34. Selling designs online

Selling designs online is another way to earn passive income. This can involve creating and selling digital products such as graphics, illustrations, or printables on websites such as Etsy or Creative Market. You can also sell your designs on products such as t-shirts, mugs, or phone cases through print-on-demand platforms.   The key to this venture's success has unique and appealing designs that attract customers. It's also essential to market your designs effectively to reach a wider audience and increase sales. With a little effort and creativity, selling designs online can be a rewarding source of passive income.


What is the highest-earning passive income source?

It's difficult to determine the highest-earning passive income source as it can vary depending on factors such as market conditions, personal investments, and industry. Some popular passive income streams include rental properties, dividend stocks, peer-to-peer lending, and creating digital products. It's important to research and carefully consider any investment's potential risks and returns before proceeding.

What are common passive income strategies employed by wealthy individuals?

Wealthy individuals typically employ a variety of passive income strategies, including:  
  • Diversified investments in stocks, bonds, and real estate
  • Owning rental properties or investing in real estate funds
  • Investing in dividend-paying stocks or mutual funds
  • Starting a business and hiring a management team to run it
  • Investing in peer-to-peer lending platforms
  • Owning and managing a portfolio of websites or online businesses
  It's worth noting that these strategies can also come with risk, and it's important to carefully consider one's personal financial situation and do thorough research before investing.

Can generating passive income lead to massive wealth?

Generating passive income can certainly contribute to wealth, but it is not a guarantee of becoming massively wealthy. It depends on a variety of factors, including the amount of passive income generated, the rate at which it grows, and how it is invested.   Additionally, having multiple sources of passive income and practicing good financial management can increase the likelihood of building wealth. Ultimately, it takes a combination of smart investment strategies, financial discipline, and time to accumulate significant wealth through passive income.


In the Philippines, there are several options to earn passive income. Investing in high-dividend stocks, real estate, or starting a dropshipping business online can generate passive income without requiring a large amount of startup capital, making it accessible to everyone.
Flona / Customer Support Team @GMO

A Boss Level Tech nerd. Her interests range from all things web hosting to swiping food from the pantry. As she says, free food is the best food. You can't out nerd her and your food is definitely not safe when she's around.

.com Domain at PHP360/yr
Free 3 months Starter Hosting with every purchase of .COM domain Search Now

Most Popular

Starter Hosting

Perfect for single website


60% off

Buy Now

Free Domain (1 Year)

1 Website

1GB SSD Storage

Unmetered Bandwidth

.com Domain at PHP360/yr
Free 3 months Starter Hosting with every purchase of .COM domain Search Now

Most Popular

Starter Hosting

Perfect for single website


60% off

Buy Now

Free Domain (1 Year)

1 Website

1GB SSD Storage

Unmetered Bandwidth