The Best Ideas for Passive Income Streams in the UK

Peggy Bacon in mid-air backflip, Bondi Beach, Sydney, 6/2/1937 / by Ted Hood

During the past few years I have spent hundreds of hours researching both online and offline to find ideas for passive income generating businesses.

During the time I kept a list of some of my favourites and the list is provided below. It's rare that you will find a list as comprehensive as the online below available online. In fact, I believe this list contain the best ideas for passive income streams in the UK!

What's your favourite? Let me know in the comments. Firstly, what is Passive Income?

What is Passive Income?

It might not be what you want to hear but before you can sit back and sip your Pimms and Lemonade in peace, you're going to have to put in the hard work to set up your passive income generating business.

The process of creating this passive income business could be creating assets (such as an ebook) or purchasing assets (like a buy-to-let rental property). Take a look at the following list and you'll see which idea falls into which category.

Passive Income Ideas UK

Create a blog and use affiliate links

This is probably the most common approach to online passive income stream but it's also one of the easiest and most effective.

The idea is simple, you create a website, fill it with quality content and then use the hits your content will receive to direct your visitors towards products (often created by others). 

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Create and sell an ebook

This is an approach with is almost as popular as the website and affiliate sales link outlined above and for good reason!

I can absolutely guarantee that you're expert enough in one field or another that you could produce 60-80 pages of content on a niche you know well. Bundle this content into a single ebook to sell online and you could soon to bringing in at least £250 a month by networking online through sites such as LinkedIn or Twitter, through publishing guest blog posts on sites in your niche or by utilising easy to learn SEO skills.  

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Create a portfolio of income accumlating index funds

Don't ignore this one just because it involves the financial industry!

This is one of the oldest approaches to passive income known to man and is especially useful if you already have an amount of money sitting in a low-interest paying current account. 

The idea is this. Once your emergency fund is taken care of, begin making automated monthly payments into income accumlating index funds through a broker such as Hargreaves Lansdown. You'll want to look at their range of index funds from Vanguard, Legal & General and BlackRock, amongst others. 

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Earn Income by Peer-to-Peer Lending

This one is an interesting one and like investing in index funds, shouldn't be ignored just become it isn't as immediately exciting as some other methods of generating passive income.

Peer-to-peer lending or P2P is the method of using online services such as Zopa to lend money to other users of the service who are looking to receive loans without going such traditional establishments such as a high street bank. 

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Earn Income by Creating a Site and Deploying Targeted Adverts

This idea is going to require you to get creative.

It involves creating a focused site within your targeted niche (such as road bicycles reviews) and then contacting bike websites such as Wiggle to offer them the opportunity to purchase space on your site for them to advertise their company and products. 

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Create the Next MoneySupermarket.com!

This idea is going to require you to get creative.

It involves creating a focused site within your targeted niche (such as road bicycles reviews) and then contacting bike websites such as Wiggle to offer them the opportunity to purchase space on your site for them to advertise their company and products. 

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So there you have it, my list of the best ideas for passive income streams in the UK. I'll be updating this list regularly as new ideas come to me, so make sure you bookmark this page and use it as a reference next time you are looking for your next passive income project!