6 Passive Income Strategies Mark Cuban Recommends
Mark Cuban isn’t exactly the sit-back-and-let-it-happen type. But that doesn’t mean he’s against earning money while catching a Mavericks game. His take on passive income is less about napping on cash piles and more about smart leverage: setting things up so money flows in while you focus on bigger moves.
Below are five passive income strategies Cuban himself has endorsed, followed by a few more that, while not directly backed by him, definitely align with his business philosophy and sharp eye for opportunity.
Dividend-Paying Stocks Deliver Real Cash
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Cuban favors dividend-paying stocks because they generate actual payouts, not just paper gains. Unlike speculative bets, these stocks deposit cash regularly and create a steady income stream even when the market underperforms.
S&P 500 Index Funds Offer Long-Term Stability
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Don’t want to think about markets every morning? Cuban’s got you. S&P 500 index funds are like the slow-cooker of investing—set it, forget it, and come back years later to a rich, savory portfolio. The decades of consistent returns make it a stress-free way to let capitalism do its thing while you focus on, well, literally anything else.
AI Stocks Reflect Where Business Is Headed
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Forget robots taking over; they’re already here, running supply chains and writing ad copy. Cuban is watching where the train tracks are being laid. Investing in AI-centric companies, even if they don’t offer dividends (yet), is about staying ahead of the curve. If tech is the future, AI is its engine.
Crypto—High Risk, But Not Without Purpose
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Though Cuban warns that crypto should only be a small portion of one’s portfolio, he’s not ignoring its true potential. He focuses on coins tied to useful real-world utility, especially those built on smart contracts. It’s a high-risk poker game where knowing the rules might actually matter.
Tokenized Assets With Built-in Income
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Ever wanted to own a piece of a song? Or a building? Cuban’s watching tokenized assets—digital slices of real-world things. Platforms are popping up where you can buy a fraction of music royalties, rental income, or even art. It’s in its early days, but if this catches on, you might just earn mailbox money from a beat you didn’t write.
Investing in Yourself
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One of the sure-fire methods of earning passive income is to invest in yourself. Learning a high-value skill—like coding, digital marketing, or even writing—is the launchpad for creating future passive income. Bonus: You don’t need to go broke doing it. Community college, YouTube, or affordable online classes can take you surprisingly far.
REITs and Rental Properties
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Real estate investing isn’t just about flipping houses or managing rental properties. One popular approach is using REITs—Real Estate Investment Trusts—which let you invest in property markets without buying buildings or dealing with tenants. REITs typically pay dividends, so you can earn like a landlord without the late-night maintenance calls or hands-on hassle.
Business Royalties as a Revenue Stream
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One lesser-known investment avenue is business royalties. Investors can tap into this niche through platforms that offer royalty-share purchases tied to consumer products, patents, or intellectual property. When structured well, these deals let you earn a share of the revenue as others market and sell the product, essentially collecting income without running the business yourself.
Licensing Intellectual Property
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If you’ve ever created something cool—an app, design, or even a catchy phrase—there might be a licensing opportunity hiding in it. All you need is a little startup know-how to champion monetizing intellectual property. Get the rights in place, and you could earn recurring payments without ever clocking in again.
AI-Powered ETFs for a Tech Edge
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Beyond picking individual AI stocks, some investors look to ETFs that focus on AI-driven sectors. These funds offer exposure to a range of companies in the industry and help spread risk while staying tied to a fast-evolving field. They handle the research and diversification for you.
Peer-to-Peer Lending with Caution
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These platforms make it easy to loan out funds and earn interest, but it’s all about how well you read the room—or in this case, borrower credit scores. Done right, you become a miniature bank.
Franchise Investment Without Operations
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Not everyone wants to run a burger joint, but what if you could still earn from one? Some investors act as silent partners in franchise operations by backing the business without managing the staff or mopping the floors. It’s not common, but for those with capital, it’s a good, behind-the-scenes moneymaker.
Digital Assets With Embedded Revenue Models
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Some blockchain projects reward token holders with a share of platform revenue. Cuban backs digital platforms where tokenomics reward long-term holders. It’s still experimental, but potentially lucrative if the platform gains traction.
Structured Notes for Predictable Returns
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Structured notes might not get headlines, but they are appreciated for offering more predictability than a squirrel on caffeine. They’re designed to deliver steady outcomes, even if the market zigzags.
Preferred Stock for Higher Yield
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Preferred shares sit in the comfy zone between bonds and regular equities. The positive factor is that they provide fixed dividends and get first dibs on payouts. They don’t move much in price, but that’s the point—they provide consistent returns while requiring no daily attention.