Passive income business is an attractive concept to many, but it can be hard to know where to start. After all, with modern technology, the potential to create multiple streams of income has never been greater.
In this blog post, we’ll explore 15 illustrative examples of Passive income business to help you form an idea of how you can start creating your own passive income streams.
From real estate investments to automated online services, you’ll find a range of ideas to help you get started.
Passive income can be a great way to supplement your regular income and give you greater financial freedom.
Whether you’re looking to monetize a side business or to reduce your reliance on your day job, Passive income business can be a great tool for achieving your financial goals.
So, let’s take a look at 15 illustrative examples of passive income.
What is Passive Income?
I’m not telling you anything if I tell you that passive income is the key to financial independence. This information is known to everyone who has ever typed “How to get rich?” on Google. What few of them know, however, is what passive income really is.
Forget immediately the idea of earning money by pressing a simple button from your deckchair under the coconut trees and the fantasy of pocketing millions with only 4 hours of work per week. A Passive income business is simply a system that is able to produce income without you having to intervene in it once it has been built.
For example, when you have bought an apartment and found a tenant, you will receive rent each month without having to do anything in particular. The counterpart of the almost automatic nature of this type of income is that it requires a lot of work at the beginning to put the system in place. So you have to be prepared to roll up your sleeves.
The examples of Passive income business presented in this article have proven themselves. Some are accessible without initial investment, others require a larger down payment. They are classified by ease of access, so that you can find the one that best suits your profile.
1- The sale of e-books
A first idea of passive income is simply to write e-books to put them on sale via an online bookstore. Among the giants of the sector we can mention Amazon KDP, or Google Books, but they are far from being the only ones.
To be successful, you don’t need to be a master of writing. The best-selling genre is non-fiction. All you have to do is write several short guides on a concrete theme that you master. All you have to do is adopt a nice layout, have an attractive cover made and possibly some illustrations.
Once your e-books are online, all you must be done is wait for the sales. A well-thought-out promotional campaign via social networks and your entourage can, without a doubt, help them take off.
2- Sponsorship
Sponsorship is a little-used and often-mocked passive income idea. However, it can become extremely effective, provided you choose the right sector. It is certain that it is not your referrals for whom you will receive 5 cents on a pay to click site that will make you rich. On the other hand, other sponsorship opportunities are much more profitable.
Online banks, for example, offer attractive bonuses, as do some cashback sites that pay you every time your referral makes a purchase. These are just two examples of the many offers available.
If the search for new people to sponsor is not passive, then you can enjoy the earnings related to their activity for a long time. Take care to choose programs where each new participant will earn you multiple times. Thus, you will not have to prospect constantly to maintain your gains.
3- Image banks
For amateur photographers and videographers, image banks are an interesting source of automatic income. They allow you to offer your photos for sale to illustrate the content of companies.
Their application is quite easy. Simply register for an account and upload your work to get started. You just have to wait for a customer to buy an image. You will then receive a percentage of the sale price. Everything you need to do is enrich your gallery content from time to time to increase your chances.
4- Advertising revenue
Advertising still has a very important source of passive income. Formerly reserved for large companies, it is now accessible to everyone via the web. To take advantage of its financial benefits, you are spoiled for choice. You can start a blog, start a YouTube channel, do sponsored podcasts, or use social media.
When a user clicks on a banner on the sidelines of your content, or buys via a sponsored link, you get some money. If this way of doing things often gets bad press, there is nothing illegal about it. The most important thing is to make sure that the overabundance of inserts does not interfere with the user experience.
However, it is important to clarify that successfully raising significant capital in this way takes a long time. Your site must first make itself known to generate sufficient traffic and be authoritative on its theme. A long-term job that can end up paying off accordingly.
5- Sale by subscription
If having an online store is not a method of passive income, contrary to what many e-commerce gurus say, there are two exceptions to this rule. The first is subscription sales when applied to digital products.
Sending monthly courses created in advance, authorizing the use of an application that you have developed, or giving access to an online service such as a dating site are all avenues you can follow to use this business model.
So your job is confined to managing new subscribers and troubleshooting any technical issues. It is possible to automate a non-negligible part of these tasks. The rest of the time, your business runs on its own.
6- Print on demand
The second exception to the active nature of online sales is print as needed. If you are a graphic designer you should look into this solution to make ends meet. Start by creating original visuals that can be transferred to clothing or objects. Make sure you have full ownership of your work and don’t use licensed visuals.
You can then create an account on a platform that will take care of adapting your designs to the range of products it offers. Your customers will only have to select the design of their choice on a given item and order. You do not manage logistics or after-sales service. Your only job will be to advertise your brand.
7- Online training
Are you better at transmitting your knowledge than at creating? Online training is an illustration of Passive income business that might be right for you. Already in full expansion before the crisis of the new coronavirus, the current pandemic has further increased the growth of the sector. Distance learning has become as commonplace as going to evening classes.
You can create a training and put it on sale on sites that will take care of its promotion, for a part of the profits. Video is the most popular medium, but you can choose to make audio, cards, or even use an interactive application to make things more fun. The only requirement for success is that your courses are of high quality, otherwise your customers will not fail to share their dissatisfaction with their entire community.
8- Royalties
We are talking here about a source of passive income that requires a little more specific skills. Receiving royalties is, in fact, not given to everyone. This is the sum of money that an author receives for a book, music, or any other work of which he is the creator each time it is used for commercial purposes.
Many platforms allow budding artists to show their work to the general public. To avoid disappointment, however, take the precaution of depositing each of your creations before putting it online. Otherwise, you could no longer claim its paternity, nor the associated financial rights, in the event of theft of work or plagiarism.
9- Patents
Patents are to inventors what royalties are to artists. If you think that one of your discoveries has the power to change the daily life of its users, you can protect it by this means. Thus, you will receive income from the profits of its marketing if it sells well. The patent also prevents other people from appropriating your system without bothering to obtain your agreement.
10- Term accounts
Term accounts are among the more traditional examples of passive income. They require having a starting capital of between a few hundred and a few thousand euros depending on the bank you choose for this investment.
The principle is well known: you block your savings in an account for a time defined in advance (generally between 6 months and several years). In exchange, the bank pays you interest, the amount of which is defined by contract. This is far from being the most profitable solution, but it has the advantage of security.
11- Car rental
If you have a personal car, renting it when you are not using it will allow you to have automatic income. Put your profits aside and you can even develop this business with the acquisition of other vehicles. Many websites allow you to manage your business without even having to go out to carry out the inventory and hand over the keys.
12- Business loan
Have you managed to raise capital on your savings account? Use it to lend to businesses and generate automatic income. Faced with the difficulty of obtaining funds from banks, more and more companies are turning to individuals for financing. Each month you receive interest on the sums advanced. To reduce the risk of loss in the event of payment default, consider investing in several projects.
13- High dividend stocks
High-dividend stocks are stocks that are meant to be held for the long term. Each year the company gives you a share of its profits, which allows you to benefit from automatic income. In addition to the value of your portfolio, you make profits. If you choose the right companies you can amass a nice nest egg through dividends.
14- SCPI units
SCPI shares are a perfect illustration of passive income for those who wish to make a property investment without taking the risk of buying a property. Each security is equivalent to a share of the company which buys and manages its own real estate portfolio. Each member receives a share of the rents in proportion to the total shares he holds.
15- Real estate income
Real estate rental income is the best-known illustration of passive income. Buying a home to rent it and paying the credit with the income generated is a proven technique that has made many fortunes. However, it requires having a solid file and a minimum of contribution. It is therefore reserved for those who have a job s
The 15 examples of passive income cited in this article prove that there are many different ways to earn money and build financial independence. It’s up to you to choose those that best suit your profile and your means to start pocketing your first earnings and changing your life.
Invest in one project at a time to avoid spreading yourself too thin and consider diversifying your cash flow. Share this information with the people you care about and take action!