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The old promise that hard work leads to success is losing its grip. Among the MZ generation in the United States, earning steady income with minimal effort — so-called "passive income" — is emerging as the new American dream.

The Wall Street Journal reported June 24, local time, that as more Americans feel a regular salary is no longer enough to meet their financial goals, a growing number are turning to social media and AI to build passive income streams.

Greg Kio, a mechanical engineer in Austin, Texas, grew tired of his commute and office life and began looking for a new source of income. He designed a large lint roller himself and started selling it on Amazon, where it found unexpected popularity.

He now spends an average of about two hours a month on the venture while earning an annual net profit of roughly $50,000 to $115,000. "The biggest reward isn't the money — it's having control over my time," he said.

A survey conducted last year by investment platform Dub found that more than half of Americans — and 60 percent of Generation Z — said they could not achieve their financial goals on a full-time salary alone.

A Bankrate survey found that one in four Americans holds a side job outside their primary occupation. A separate survey by financial platform Cash App found that 44 percent of adults between 18 and 28 had an income source beyond their full-time job or part-time work.

The methods people use to generate passive income are also diversifying. Beyond renting out properties on Airbnb, individuals are increasingly monetizing personal assets through the car-sharing platform Turo, as well as renting out boats, RVs, swimming pools and storage space.

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AI is now accelerating the trend. Users are asking chatbots for money-making ideas and using AI to create and sell e-books, videos, online courses and PDF materials.

Mikael Tremblay of Canada sells AI-generated PDF study guides on the online marketplace Etsy, earning hundreds of dollars a month from materials he produces in minutes. He said targeting niche demand identified by AI makes it possible to turn a profit even in low-competition markets.

Matt Abso has registered his voice with AI voice platform ElevenLabs and licenses it for use in audiobooks and video narration. Running multiple AI voice models, he earns around $3,000 a month.

The AI voice market is growing rapidly. ElevenLabs said it began licensing users' voices in 2024 and has paid out a total of $22 million to more than 10,000 creators to date.

Not every story ends in success, however. The US Federal Trade Commission has taken action in recent years against several online business models that lured consumers with promises of effortless earnings. Some operators were found to have caused millions of dollars in losses to consumers through fake reviews and misleading advertising.

In practice, many people have invested thousands of dollars in online courses and consulting services that promise high returns, only to fall well short of expectations, the Wall Street Journal reported.

Anna Rohrman, who is battling cancer, tried a range of side ventures — making soap, beekeeping and publishing a newsletter — and even produced Spanish-language educational materials on AI's recommendation, but earned only $250 over the course of a year. AI had projected she would make $7,000 in her first year; reality fell far short.

Experts said the more profitable an idea appears, the faster competition intensifies, and that courses selling "how to make money" are often more lucrative than the underlying businesses themselves. They also advised caution toward advertisements and online courses that promise easy earnings.


mokiya@heraldcorp.com