Passive income in an online business refers to income that continues to come in as long as the business remains open. Passive income is not made from active management and can be more predictable than income from active management. Let’s look into 7 passive income online business ideas you can start with today.
Income from passive management could be generated with one-time fees or simple processes such as online advertising.
What is Passive Income?
Passive income is the money you make from sources other than your day job or daily active intent. Passive income can come from a variety of places. It might come from interest earned on your savings, stock dividends, rental income, royalties, or from any other source.
It is important to note that not all types of passive income are profitable and some may be riskier than others.
It’s also worth mentioning that everyone can have their own idea on what is passive or not for them. For some, passive may only refer to income generated without any actual efforts, for instance, such as interest or earnings from a savings account or investments into stocks or cryptocurrency.
For others, passive income may be long-term earnings that are a result of short-term efforts made upfront, such as purchasing and trading time to secure placements for vending machines today in order to gain profits tomorrow.
Only you can determine where “the line” is between passive and non-passive income for yourself and your business, this should be kept in mind while browsing the list below.
Generating Passive Income
Generating passive income is a challenge for many. Fortunately, there are some great ways to earn passive income online these days. For example, you can put up a website that features ads. Or, you can try blogging.
Other ideas include selling a product or service or doing freelance work. Regardless of which business idea you go with, you’ll need to set aside time each day to monitor and make changes as needed with your plan.
7 Passive Income Online Business Ideas
Here is a list of passive income online business ideas we like for their ease of entry and proven track records. This is by no means an exhaustive list, there are hundreds, even thousands of other ideas that could be added to it, we’ve simply culled it down to the easiest and most secure methods we believe anyone can have success with.
1. Passive Income from Selling Handmade Goods
This one almost didn’t make the list because it requires the constant production of handmade goods, however, for some people creating things is a hobby they’re going to do anyway, so selling those things that you create is a great way to earn a bit of side-cash for yourself.
The passive side of it is with platforms like Etsy or Ebay, you don’t have to actively engage in marketing and sales efforts, just list your handmade goods for sale, make them as you normally do, and fill orders when they come in.
2. Passive Income from Investments
Passive income from investments can come in many forms, from investing in stocks and cryptocurrency to investing in rental properties. The idea is that you’re able to invest your money, then sit back and reap the rewards from the investments. It may take some time before you see a return on your investment, but as long as you’re patient, you’ll be able to earn passive income without doing much–if any–continual work.
3. Passive Income from Vending Machines
Running a vending machine business can be a great passive income idea because it costs less to start and run than a traditional brick-and-mortar store.
You’ll just need to stock the machine with products, spend time making sure it’s working, and then collect the earnings periodically and refill the machine.
This is definitely a scalable business, however, the more you scale up the more effort and time that’s required for restocking and collecting your earnings.
4. Passive Income from Rentals
Some people are able to generate an income through investing in rental properties or with renting out tools. Rentals, whether it’s space such as property or items like specialty tools and equipment, is a time-tested money maker.
You have a high upfront investment, but over time the profit margins can skyrocket.
5. Passive Income from App and Software Development
Passive income from app and software development is great because it’s relatively low-risk. You have to spend time and money developing an app, but after it’s done, the app generates passive income without needing any more work on your part.
6. Passive Income from Your Creativity
Whether you’re talented or skilled with visual arts, music, creative writing, there are always people out there who will appreciate, and pay for, your works. Simply find the right platform for pairing your creations up with the right audience and earn from your creative passions.
7. Passive Income from Building Assets
App and Software development, as well as written books from #6 above, can fall into this category, however, what we’re really talking about here is websites.
At their core, websites are digital real estate and can be approached from the angle of landlord, merchant, even event planner. The point is that if you build websites that attract visitors, which can be a lot of upfront work, once they’re getting that steady flow of traffic online they can become fairly “hands-off” while maintaining a steady revenue stream for you.
This is our own favorite method of building passive income streams as the upfront costs are next to nothing, even the upfront work isn’t overly demanding and can be done at your own pace, but the long-term payoffs are limited only by what you put into it.
Passive Income Online Business Ideas Wrap-up
So, there are 7 ideas to inspire you. Perhaps you’ll use one or more of them, or maybe they’ll spark other ideas that are more attractive or exciting for you.