Important Note: The information provided in this article is for general informational purposes only and does not constitute financial advice. Friendly Finance is a resource hub designed to help Australians make informed decisions, but we are not licensed financial advisors. Always do your own research or speak with a qualified professional before making financial decisions.
Making money while you sleep sounds like a dream — but with the right setup, it can become a reality. More Australians than ever are exploring passive income streams as a way to supplement their salaries, build wealth, or even achieve financial independence. Thanks to the internet, starting a side income no longer requires huge investments or complicated strategies.
In this guide, we’ll walk you through seven practical ways to earn passive income online in Australia — whether you’re just starting out or looking to diversify your income.
1. Affiliate Marketing
Affiliate marketing allows you to earn commissions by promoting other people's products or services. When someone clicks your affiliate link and makes a purchase (or takes a specific action), you get paid. It’s a favourite among bloggers, content creators, and influencers for its scalability.
One niche within affiliate marketing that’s gaining serious traction in Australia is forex trading. If you're interested in learning how to be the best forex affiliate in Australia, it starts with choosing a reputable partner. AVAPartner offers one of the most competitive forex affiliate programs globally, complete with high payouts, advanced tracking tools, and localised support for Australian affiliates. Whether you run a finance blog, a YouTube channel, or just have a niche audience, it’s a compelling option for generating recurring income.
2. Print-on-Demand Stores
Print-on-demand is a business model where you design custom products like t-shirts, mugs, or tote bags, and a third-party service handles production and shipping. Services like Redbubble, Teespring, or Printify make it easy to get started with minimal upfront investment.
Once your store is up and running, you can earn passive income from each sale without having to manage inventory or fulfilment.
3. Creating and Selling Online Courses
If you have expertise in a subject — whether it’s photography, cooking, or coding — you can create an online course and sell it through platforms like Udemy, Teachable, or Kajabi. After the initial time investment to build the course, it can continue generating revenue with little effort.
Online education is booming, and Aussies are increasingly turning to digital learning, making this a prime opportunity for passive income.
4. Investing in Dividend Stocks or ETFs
Investing in dividend-paying stocks or ETFs (Exchange-Traded Funds) can provide consistent income over time. Many Australian companies pay dividends quarterly or biannually and reinvesting these earnings can compound your wealth.
Apps like Raiz, Pearler, and SelfWealth make it easier than ever for beginners to start investing with small amounts. While it’s not 100% passive — you’ll want to monitor your portfolio — it’s one of the more stable long-term income strategies.
5. Renting Out Assets
If you own something of value — like a car, camera gear, or even tools — you can rent it out for passive income. Platforms like Car Next Door (now Uber Carshare) or Fat Llama allow you to connect with people who need short-term access to those items.
This is a great way to monetise underused belongings with little ongoing effort.
6. Dropshipping
Dropshipping involves running an online store without holding inventory. When someone makes a purchase, the order is fulfilled directly by a supplier — you simply manage the storefront and customer experience.
Using tools like Shopify and Oberlo, you can set up a store selling niche products and automate much of the process. While marketing does take some upfront work, many dropshipping businesses generate ongoing revenue with minimal day-to-day input.
7. Earning Interest Through High-Interest Savings or Crypto Platforms
Digital banks and fintech platforms now offer high-interest savings accounts that pay you for simply holding your money. Some Aussies also explore decentralised finance (DeFi) platforms to earn returns on crypto assets — though these come with higher risk.
If you’re considering exploring forex or global market trading, it’s essential to stay informed. This ForexLive article offers a helpful breakdown of how currency fluctuations affect the Australian Stock Exchange (ASX), particularly the SPI 200 index.
Passive income isn’t just a buzzword — it’s a smart way to increase your financial resilience and unlock more freedom in your life. Whether it’s through affiliate marketing, digital products, or traditional investing, there’s never been a better time to explore your options online.
Start small, test different strategies, and don’t forget to treat your time and attention as valuable assets. Over time, your passive income streams could grow into something significant.
