In 2014, I was earning $85,000 a year as a full-time web developer. While I made enough to cover my living expenses, I felt like I was putting too much of my time into the job.
I knew that there were opportunities to make passive income in e-commerce. So in 2016, after experimenting with "dropshipping" (a business model in which sellers don't need to keep any products in stock), I came across a Reddit post that inspired me to start a print-on-demand side hustle.
Print-on-demand allows me to sell T-shirts while outsourcing the printing, packaging and shipping to a third-party vendor. By 2020, I made enough money to quit my job and focus on taking my side hustle full-time.
Today, at 33, I make an average of $14,600 a month in passive income from my print-on-demand business. The best part is that I work on it just one hour a day.
How I got started without a design background
My first T-shirt design was a poorly-drawn Loch Ness monster. I started out using Adobe Photoshop, but found it too difficult to navigate without any formal training.
Now I use All Sunsets, Creative Fabrica and Vexels to create my designs. These sites are great for print-on-demand sellers who don't have a lot of graphic design experience because you can download commercial-use illustrations, instead of making them on your own.
Membership prices for All Sunsets start at $59 a year, Creative Fabrica at $4 a month, and Vexels at $22 a month.
When coming up with designs, I research what keywords are popular among customers using the DS Amazon Quick View and PrettyMerch Chrome extensions. Sometimes I make shirts inspired by pop culture moments and upcoming events.
When coming up with designs, Ryan researches what keywords are popular among customers using the DS Amazon Quick View and PrettyMerch Chrome extensions.
Photo: Ryan Hogue
How I make passive income through print-on-demand
About 50% of my passive income comes from Amazon Merch on Demand, where I sell the most items. I like this platform because you don't have to pay money upfront for inventory.
The process is simple:
- Create a T-shirt design and save it as a PNG file (a high-quality graphic file format).
- Upload your artwork onto Amazon Merch on Demand.
- Choose the product type and add a description.
- Amazon then creates a 3D rendering of what the shirt would look like in real life.
- Amazon creates a product listing on Amazon.com, making the design available to buy.
- Each time a customer makes a purchase, Amazon handles production, shipping and customer service.
Amazon Merch sellers earn a royalty fee between 13% and 37%, depending on the product type and listing price. Amazon has predetermined listing prices that sellers can choose from.
My best-selling product is a standard T-shirt. I charge $19.99 per shirt and makea 26% royalty fee per sale, equaling $5.23 in profit. Amazon keeps the rest.
In addition to T-shirts, I sell my designs on hoodies, sweatshirts, mugs, hats and other accessories like stickers and phone cases. I always list my products to make at least a $5 profit per sale, but I sell larger items like sweatshirt at a $10 profit.
Another platform I use is Printful, which is similar to Amazon Merch on Demand and is an inexpensive way to get my products in front of more people. It prints, packages and ships designs that I list on eBay and Etsy. It costs $0 to list a design on eBay, and $0.20 to list a design on Etsy.
A little creativity and a lot of drive will take you far
During the hours that I'm working, I'm mostly creating new designs, listing products, and learning tools that will help me further automate my business.
I also started a YouTube channel and created online courses to share my knowledge. I want people to know that they don't need a degree in graphic design to succeed in the print-on-demand business. They just need a little bit of creativity and a lot of drive.
Ryan Hogue is a former web developer and adjunct professor who quit both jobs to run his e-commerce business. His YouTube channel teaches people how to earn passive income using "Ryan's Method."
Don't miss:
- A 28-year-old who made $100,000 in passive income ‘in just one day’ shares 5 books that helped her get started
- ‘I made $245,000 in a month’: This 29-year-old got rejected from 15 medical schools—now he runs a $1.5 million business
- ‘I work just 2 hours a day’: A 24-year-old who makes $8,000 a month in passive income shares her best business advice
Want to earn more and work less?Register for the free CNBC Make It: Your Money virtual eventon Dec. 13 at 12 p.m. ET to learn from money masters such as Kevin O'Leary how you can increase your earning power.
VIDEO8:0508:05
I quit my $35K job to grow my side hustle — now it brings in $141 million a year
In 2014, I was earning $85,000 a year as a full-time web developer, and my journey toward financial independence took a turn when I discovered the potential of passive income in e-commerce. The turning point was in 2016, when I delved into "dropshipping" but later found a more lucrative opportunity through a Reddit post that led me to start a print-on-demand side hustle.
Fast forward to 2020, I successfully transitioned from my web development job to focus on my print-on-demand business full-time, generating an average of $14,600 a month in passive income at the age of 33. The key to my success lies in the print-on-demand model, where I sell T-shirts without handling the printing, packaging, and shipping—outsourcing these tasks to a third-party vendor.
My journey began without a design background, and my initial attempts with Adobe Photoshop proved challenging without formal training. However, I adapted and now use platforms like All Sunsets, Creative Fabrica, and Vexels to create designs. These sites are especially valuable for print-on-demand sellers without extensive graphic design experience. Membership prices for these platforms vary, with All Sunsets starting at $59 a year, Creative Fabrica at $4 a month, and Vexels at $22 a month.
To come up with compelling designs, I leverage tools like DS Amazon Quick View and PrettyMerch Chrome extensions to research popular keywords among customers. This approach allows me to tap into trending topics, pop culture moments, and upcoming events for inspiration.
About 50% of my passive income comes from Amazon Merch on Demand, where I've found success by eliminating the need for upfront inventory investment. The process is straightforward: create a T-shirt design, upload it to Amazon Merch on Demand, choose the product type, add a description, and let Amazon handle the rest—production, shipping, and customer service. Royalty fees range from 13% to 37% depending on the product type and listing price.
Aside from Amazon Merch, I also utilize Printful, a platform similar to Amazon Merch on Demand. Printful helps me expand my reach by printing, packaging, and shipping designs listed on eBay and Etsy. Listing a design on eBay is free, while Etsy charges $0.20 per listing.
In addition to T-shirts, I offer my designs on various products like hoodies, sweatshirts, mugs, hats, stickers, and phone cases. I always aim for a minimum $5 profit per sale, but for larger items like sweatshirts, I set a $10 profit target.
To further diversify my income streams and share my knowledge, I've started a YouTube channel and created online courses under the brand "Ryan's Method." My goal is to inspire others, emphasizing that success in the print-on-demand business doesn't require a degree in graphic design—just a bit of creativity and a strong drive.
In conclusion, my firsthand experience in transitioning from a web developer to a successful print-on-demand entrepreneur provides insights into the tools, platforms, and strategies that have propelled my journey to financial independence. The print-on-demand business model, coupled with strategic use of online platforms and tools, has allowed me to achieve a sustainable and profitable passive income stream while working just one hour a day.
