What are some effective passive income ideas to start in 2023?

**Real Estate Investment Trusts (REITs)**: By pooling capital from multiple investors, publicly traded REITs allow individuals to invest in income-producing real estate without purchasing properties directly, providing an accessible entry point for passive income.

**Peer-to-Peer Lending**: This involves lending money to individuals or small businesses through online platforms, allowing investors to earn interest on their loans, akin to earning interest from a bank but potentially at a higher rate.

**Dividend Stocks**: Investments in dividend-paying stocks provide income through regular dividend payments, which can compound over time, fundamentally leveraging the power of compounding interest.

**Create Digital Products**: Developing e-books, online courses, or stock photography can lead to passive income streams that generate sales over time without physical inventory, utilizing the internet as a distribution platform.

**Affiliate Marketing**: By promoting products or services through unique links, individuals can earn commissions on sales without holding inventory, leveraging web analytics to optimize marketing efforts.

**Automated Dropshipping**: Setting up an e-commerce store with a dropshipping model allows entrepreneurs to sell products without carrying any inventory, relying on suppliers to fulfill orders directly to customers.

**High-Yield Savings Accounts**: While conservatively offering lower returns than stocks, these accounts often provide a higher interest rate than standard savings accounts, allowing for growth over time with minimal risk.

**Vending Machines**: Strategically placed vending machines can generate income with minimal maintenance, utilizing a proven business model that requires upfront investment for machines and inventory.

**Create an App**: Developing a mobile application can yield passive income through sales or in-app purchases, though it involves upfront costs and programming knowledge.

**Selling Print-on-Demand Products**: By utilizing print-on-demand services, individuals can sell custom-designed products without holding inventory, only producing items after an order is placed.

**Investing in Bonds**: Fixed-income investments like government or corporate bonds pay regular interest, often less volatile than stocks, making them a stable source of passive income.

**Rental Property**: Owning rental property can generate ongoing cash flow through rent, and while it requires management, property management companies can handle the day-to-day operations.

**Sell Subscription Boxes**: Curating products for subscription boxes can facilitate a recurring revenue model, appealing to consumers through tailored experiences and convenience.

**Royalties from Intellectual Property**: Creators can earn royalties through licensing decisions for their music, art, or patents, providing ongoing passive income based on their original work.

**Blogging**: Establishing a blog allows for ad revenue and affiliate marketing opportunities, with the potential for compounded traffic growth leading to increased earnings.

**Index Fund Investing**: Investing in index funds can provide broad market exposure with lower fees while benefiting from compounding returns over time, often viewed as one of the simplest investment strategies.

**Crowdfunded Real Estate Platforms**: These platforms allow individuals to invest in real estate projects with lower minimums than traditional real estate investing, making property investment more accessible.

**License Your Photography**: Photographers can earn passive income by licensing their work to stock photo websites, allowing their images to be used in a variety of contexts while earning royalties.

**Create a YouTube Channel**: Once established, channels can earn ad revenue and sponsorships, generating passive income from views without direct effort on each individual video once created.