A Range Of Business Ideas To Generate Passive Income

man thinking about starting a business

Passive income is money earned from building different enterprises that can virtually run themselves. And here’s the thing: It’s easier to generate passive income now than ever before!

Through various low-risk initiatives, many entrepreneurs seek new and sustainable ways to boost income, financial security, and savings. 

While it’s everyone’s dream to earn money while they sleep, it can take time to generate a passive income that’s enough to support a family. Any passive income earner will tell you that it's a long-term commitment that requires planning and taking calculated risks.

This article outlines the top business ideas you should consider to make passive income.

Passive income business ideas

1. Crowdfunding for real estate

Everyone knows one of the best ways to make passive income is through real estate. The biggest problem is, it requires a lot of money upfront.

If you've always wanted to make passive income off real estate but lack the financial resources, crowdfunding property could be the way to go. 

There are different platforms available. You can even invest as little as $5 to buy commercial or residential real estate! This can be used to build hotels, medical facilities, apartments, or to flip houses.

Aside from the possibility of high returns, the advantage of crowdfunding is that you don't have to worry about any property maintenance. 

But, bear in mind that there are other costs involved, and some platforms require you to be an authorized investor with a particular level of income or net worth before you can invest.

2. Vending machines

three vending machines side by side

People can get so busy during the day that they forget to eat any sort of food. Vending machines are the perfect partner for busy people to consume food while they're on the go. 

The need for food on the go is strong everywhere, from hospitals to universities to office buildings. 

Thanks to the advancement in technology, vendors can easily scale their vending machine business to generate passive income. It’s even possible to remotely connect vending machines to monitor inventory levels and purchase trends.

To generate positive income from this business idea, the first thing you'll need to do is find a suitable location.

The next step is to secure the necessary licensing and permits. And finally, supply the vending machine with products that will satisfy your customers' needs. 

Profits made will heavily depend on product margins, foot traffic, and other factors, making each step mentioned above a pivotal one. 

3. Affiliate marketing

Affiliate marketing is another business idea to easily create passive income, and it continues to grow!

Company spending on affiliate marketing increased from $5.4 billion in 2017 to $8.2 billion in 2022.

It’s a marketing scheme wherein different businesses pay to have their brand shown on your website or social media. 

It doesn’t take much to set up this business idea. In fact, any business with a solid online presence and website that appeals to a specific demographic or target audience can earn substantial income from this idea. 

It can be from inserting links to their products in one of your blog posts, sharing one of their posts to your social media accounts, or creating videos. These examples can be effective ways to earn a portion of a merchant's advertising dollar. 

For every sale or click made from your website, you get paid a commission through a specially coded link to their website. 

You can pursue connections with specific businesses or join one of several well-known networks that act as matchmakers. Effectively, they bring affiliates and advertisers together based on detailed filters, niches, and criteria.

4. Online courses

One of the best ideas to create passive income is by sharing your knowledge and expertise with others. You can create courses about digital marketing, graphic design, fitness regimen, and more. In fact, anything you’re an expert in!

To earn income from online courses, ensure that you create a series of courses based on your career achievement or passion. Present it in such a way that the course outline contains all of the essential elements for your target students to learn the subject at their own pace.

Once that’s sorted out, and you publish your course on different e-learning sites. All you have to do then is sit back and enjoy the sales your online course produces.

5. Property rentals

a married couple holding a wooden house

Things you take for granted may have the most potential to increase your passive income. It can be your car, home, or other items that you don’t use regularly. 

These assets may no longer have any value to you, but to others, they can be extremely valuable, especially in times of need. 

A good rental property strategy, especially when it’s your home, can have a lot of benefits. You get tax benefits, reduced mortgage costs, and combat inflation. 

6. Dropshipping

The beauty of dropshipping is that it allows you to create an online store with a selection of products without worrying about stocking inventory, packing, or shipping to customers. 

To be an effective dropshipper, start by researching what's trending in the e-commerce scene. 

Much of your success in this industry is contingent on the reliability of your partner suppliers. Once you've identified where the greatest potential for success exists, be selective about each operational element that will impact your business and reputation. 

This will ensure you maintain a certain level of control and consistency.

7. Downloadable digital art

There's a big market for printable art, whether for home and office decor, party supplies, or graphics for an online or social media post. Art-on-demand may be a terrific way to earn income by letting your creativity flow to create aesthetically pleasing visuals.  

You can make and sell art prints, stickers, party invites, patterns, journal pages, and more without having to print, stock, or ship your products. All you’ll need is in-depth knowledge of good graphic design tools. 

8. Storage services or facilities

storage facility

If you have extra space inside your home, why not use it as a storage facility for others to use? 

It’s a passive income idea that requires limited maintenance and one that can make a substantial income by simply charging 30% to 50% less than a standard storage unit.

Aside from indoor space, you can use your driveway as a space for others to safely park their car or  RV while they go on a business trip or vacation.

Bottom line

Whether your goal is to generate passive income as one of your top income revenue streams or just want to make extra money as you work, the ideas mentioned in this article are a good jumping-off point. 

Growing wealth through passive income may also appeal to you if you're concerned about having enough money saved for your retirement. It provides you with additional financial security and requires minimal effort. 

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