Looking to generate passive income? It is a brilliant way to supplement your earnings, and you don’t need thousands to get started. In fact, with less than £100, you can begin building income streams that grow over time.
Here are ten practical ideas to explore, plus top tips and common pitfalls to avoid.
1. Sell Digital Products
Create downloadable items like planners, templates, or eBooks and sell them on platforms such as Etsy or Gumroad.
Top Tip: Use free tools like Canva to design your products and focus on evergreen content.
Avoid: Overcomplicating your product—simple and useful sells best.
2. Print-on-Demand Merchandise
Design T-shirts, mugs, or tote bags using services like Redbubble or Teemill. They handle production and shipping.
Top Tip: Niche designs (e.g., local humour or pet breeds) often perform well.
Avoid: Copying popular designs—originality is key.
3. Invest in Dividend Stocks via Fractional Shares
Apps like Trading 212 or Freetrade allow you to invest in fractional shares of dividend-paying companies.
Top Tip: Reinvest dividends to maximise long-term growth.
Avoid: Speculative stocks—stick to established companies.
4. Buy a Domain Name
Purchase a unique domain name for under £10 and hold it for future resale.
Top Tip: Look for short, brandable names with commercial appeal.
Avoid: Using trademarked terms—they can lead to legal issues.
5. Create a Niche Blog
Start a blog using a low-cost hosting service and monetise through affiliate links, ads or sponsored content.
Top Tip: Choose a niche you’re passionate about and can write consistently on.
Avoid: Ignoring SEO—optimisation helps drive traffic.
6. License Your Photography
Upload your photos to stock image sites like Shutterstock or Adobe Stock. This can be done with little to no budget if you already have decent photography equipment.
Top Tip: Focus on high-demand themes like business, lifestyle, or travel.
Avoid: Poor image quality—ensure your photos are sharp and well-lit.
7. Rent Out Household Items
List tools, camping gear, children’s toys or electronics on local rental platforms or Facebook Marketplace.
Top Tip: Offer delivery or pick-up options to increase appeal.
Avoid: Renting without a deposit or written agreement.
8. Create an Audiobook or Podcast
Use free recording software to produce content and distribute your audiobook or podcast via Spotify or Audible.
Top Tip: Monetise through sponsorships or listener donations.
Avoid: Inconsistent posting—regular uploads build audience loyalty.
9. Affiliate Marketing
Join affiliate programmes like Amazon Associates or Awin and promote products via social media or blogs.
Top Tip: Review products you genuinely use and trust.
Avoid: Spamming links—focus on quality content.
10. Buy and Flip Items
Use your £100 to buy undervalued items at car boot sales or charity shops and resell them online.
Top Tip: Research trending items before buying.
Avoid: Overpaying—always check resale value first.
Final Thoughts
While none of these methods will make you rich overnight, they’re excellent starting points to help you generate passive income. The key is consistency, creativity, and a willingness to learn. Start small, test ideas and scale what works.
