Evaluating 10 Well-Known Passive Income Concepts with Pat Flynn - Side Hustle Nation

      Side Hustle Nation aims to enhance your personal profitability, and to achieve this, we frequently collaborate with companies that share our vision. If you register or make a purchase via one of our partners' links, we may earn a commission at no additional cost to you. Discover more here. Now, let’s explore 10 common passive income ideas to identify which ones may be suitable for you.

      Assisting me in this endeavor is Mr. Smart Passive Income himself, Pat Flynn from Smart Passive Income. No one has had a more significant impact on the formation and early days of Side Hustle Nation than Pat. It’s always enjoyable to have him back on the show, especially with his new book launching this week: Lean Learning: How to Achieve More by Learning Less. We evaluated each idea individually, rating them from 1 to 10. Some ratings were surprising, and a few concepts may have become outdated.

      Tune in to Episode 675 of the Side Hustle Show to discover:

      - Which passive income ideas are genuinely worth your time (and which ones to avoid)

      - A real-world business idea you can implement quickly

      - The marketing strategy, tool, and book that Pat Flynn is currently utilizing

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      Round 1: Evaluating 10 Popular “Passive Income” Ideas

      1. Book Publishing – Score: 2/10

      I’ve observed this model succeed in various ways. However, from a passive income standpoint, Pat suggests it might not be the best starting point. Writing a book is a lengthy journey; Pat spent two and a half years on his latest one. It requires significant effort, and without an existing audience, book sales alone typically won't be transformative. Nonetheless, a book can serve as a valuable asset if it leads to other opportunities such as speaking engagements, increased credibility, or a foundation for scalable ventures like online courses or coaching programs. Royalties may come in over time (Pat still earns from Will It Fly and Superfans), but for most, the book itself won’t yield substantial income.

      2. Online Courses – Score: 7/10

      Online courses still fulfill many passive income criteria: create once, sell repeatedly. However, the landscape has changed. Initially, packaged information held real value, but today, information is widely available (often for free). If your course is just a compilation of generic material, it will be challenging to sell. Courses that thrive now are either highly specialized for a niche or support a strong personal brand. We’re also witnessing a move from evergreen, self-paced courses to cohort-based formats. These group experiences provide accountability, coaching, and a sense of community, helping students engage and achieve results.

      3. Blogging – Score: 1/10

      This is somewhat disheartening, but we understand. Gaining traction with a traditional blog has become significantly more challenging due to algorithm changes, AI summaries dominating search results, and Reddit's strong presence on Google’s first page. This doesn’t mean blogging is extinct. Many creators are still excelling with text-first content; however, most are now using platforms like newsletters, Substack, Kit, or others that provide more control and effective distribution.

      4. Real Estate – Score: 6/10

      Real estate has always been a popular choice. Yes, there’s potential for cash flow, appreciation, and tax benefits; however, it’s not as hands-off as many think. According to Pat, he’s experimented with single-family rentals and found the associated fees, management challenges, and overall slow pace unsuitable for him. Nonetheless, real estate can indeed be a part of a long-term wealth strategy, particularly if you enjoy the industry and wish to scale. We've showcased some interesting, unconventional rental businesses on the show: bounce houses, photo booths, mobility scooters, even portable hot tubs.

      5. E-commerce – Score: 7/10

      This also falls under “create once, sell repeatedly,” but the level of passivity depends on how you structure it. Pat and his videographer Caleb developed the SwitchPod, a handheld tripod for creators, launching it on Kickstarter in 2019, raising over $400k in the initial 60 days. However, achieving that took substantial time, investment, and trial and error—definitely not a success overnight. Currently, the SwitchPod continues to sell on their website and Amazon, utilizing a third-party logistics company (3PL) for fulfillment, which makes it semi-passive. That said, you don’t have to develop something from scratch; white-labeling existing products, branding them, and targeting a specific niche can be much quicker.

      6. Software & Apps – Score: 9/10

      Once established, the