Imagine having an income system that runs on autopilot. Profits get deposited to your bank account automatically every month once you’ve gone past the first hurdle of getting the business up and running.
Sound a lot like a dream, we get it — but there exists a number of viable business ideas that allow you to make money during your sleep.
All you’re required to do is to put in the upfront work, and then sit back and relax as your income continues to pile up on you on a daily, weekly or monthly basis — and even more as the business peeks.
Read on for list of business ideas that you could implement today and start earning residual income:
One of the most common ways to start earning passive income is to consider setting up a rental property. You have the option to construct or buy a building that you can rent out and start making a decent sum of money every month in the form of rent.
This business model requires a huge sum of cash to acquire the property, but the rewards that follow are almost guaranteed and totally worth it.
As the landlord, you have the option to boost up your earning by doing away with the services of a property manager so you can start handling the repairs on your own. But by taking this approach, the income the property generates ceases to be passive, consider you have to be committed to the property.
Meaning, instead of sitting back and waiting for the end of the month to collect rent, you’ll be working on maintaining the property, part of which requires that you mow the lawn and tune up the boiler. You may also be required to be on call all days of the week just in case of an emergency.
So yes, save yourself the trouble by hiring a property manager unless you’ve got the time and energy for it.
Another approach to take is to consider renting out some of the rooms in your house to vacationers on a temporary basis. All you have to do is sign up with any house sharing platform such as HomeAway and Airbnb and list the room you wish to rent out. You could even rent your entire house when traveling away.
It’s however important that you check with your government first to find out if it’s actually legal to rent a property on a temporary basis.
If you’re talented, then you could hit the studio and record a song — and if by any chance that song goes viral, then you may live the rest of your life off the proceeds you get from that one song. Same goes with starring in a successful movie or writing a best-selling book.
This comes with NO guaranty. But in the off-chance that things fall in place, then the proceed you get from that one song, movie or book could tide you over for the rest of your life.
One thing to note is that there’s a huge difference between what’s actually possible and what’s likely. Success isn’t going to find you simply because you released a song or wrote a book, you have to be willing to work hard for it by marketing your creative work with the seriousness it deserves.
Forget about the misleading idea that internet hucksters perpetrate. Sitting back and waiting for things to magically fall in place isn’t the way to go.
If your plan is to make money off your music, book sales, or any other piece of creative work, then it’s important that you take your time to understand the trade and how everything works — and at the same time, be willing to put in the hours to hit your goals.
When it finally pays off, you can be sure of driving an insane amount of residual income that will be trickling in to tide you over for a greater chunk of your life ahead, unless otherwise.
Crowdfunded Real Estate
Real estate is another surefire way to generate a residual income stream. The only hindrance being the cost of purchasing a new home is on the extreme end. It could take you a lifetime to save for one or a loan that you’ll be spending your entire life paying.
It’s for this reason that you might want to look into the possibility of using a crowdfunded platform to fund your real estate investment.
What real estate crowdfund does is that it makes it a cinch and so much affordable for you to invest in an income-generating real estate business, where you can be sure of start earning almost immediately.
You have quite a good number of real-estate crowdfunding companies to consider, including a company such as Fundrise. With such a company, you may become a real estate investor for as little as $500.
What happens with Fundrise is that it allows you to invest in an upward of 48 real estate products via real estate trust funds.
Another company worth considering is Rich Uncles, which goes a step further to allow you to invest in real estate for as little as $5. Although in their promotions they have a starting investment option of $500, once you sign up with them — for free of course — you’ll come to find out that they also feature a Student Housing REIT that you can actually invest in for as little as $5.
The whole point of real estate crowdfunding is to make real estate investment affordable to all. You don’t have to wait until you’re rich enough to pursue a career as a real estate investor.
With crowdfunding, you can collect the little you have and sign up on one of the real estate crowdfunding platforms you know and watch as your money earns you residual income from almost immediately.
Dividend income is an all-encompassing term for the money companies pays stock shareholders directly to their bank accounts. This comes as an enticing opportunity for investors that want to start making a passive income after investing in stocks.
There’s nothing complicated about this income model — you simply invest in a dividend-paying stock with a particular company, and with the end of each quarter, you receive your payouts in form if cash, directly to your bank account.
You can take a cue from Warren Buffet who has been so vocal about being a huge proponent of dividend-paying stocks. He considers it one of his favorite sources of income, and which has played a huge part in growing his wealth, he admits.
But first, before you even think of taking this path, it’s important that you dedicate an ample amount of your valuable time to educating yourself about stocks and how they operate. You want to be sure that the stock you’re picking will be earning you a decent income stream in the coming years.
Start by finding a stock investment company to invest with. You have options aplenty, but consider checking out Ally Invest which allows you to invest in stocks for as little as $3.95.
This is an extremely low amount considering most of the brokers you know will be charging you about $10 for every stock trade.
Affiliate marketing is another viable source of residual income. Works even better if you already have a niche specific website.
As a matter of fact, there are a number of people that are making more than $50, 000 per month through affiliate marketing.
A good example is Michelle Schroeder whose blog is about teaching people how to make money online. In which case, all she does is include different affiliate links that will be directing people on where to acquire certain resources, and once a visitor clicks through a link and decide to proceed with a purchase, Michelle pockets a commission.
You need a website, but no need to fret or over-think it in case you don’t own one. Thanks to CMS platforms such as WordPress or Joomla, it’s possible to create one for as low as $50.
First you need a domain name, which will be costing you about $10 every year. The second thing you’ll need is some hosting space, which you can get for as little as $20 per year with web hosting companies such as namecheap.
And lastly, you need a premium WordPress theme, which will be costing you anywhere between $20 and $50 depending on the theme you choose. As for setting it up, you can follow some online tutorials and work your way around it.
Affiliate marketing makes it a breeze to make money directly from the comfort of your home, with only a computer, an internet connection, and a website.
We get it, you’re strapped for choices when it comes to the affiliate program to go with. Well, look no further than hempworx, the highest-paying affiliate program you’ll ever come across.
With this program, you get to earn up to 85% of the amount customers pays for the products the company sells.
In other words, you’ll be making more than what the company makes by simply promoting their products and nothing else.
Lead Generation Website
Another way you can be sure of making passive income is by creating a lead generation website, where you’ll be giving referrals to local businesses.
Here’s a good example — you create a lead generation website that specializes in real estate. In the site, you dedicate yourself to dishing out different real estate tips and primers, educating local people on the various aspects of home ownership and how to go about buying a new home.
Another approach would be to teach them how to invest in real estate. Then somewhere in the articles you post or at a strategic point on your site, you include links that the people can use to contact you to learn more about real estate.
When they do make a point to contact you, you refer them to a professional real estate agent within your locality.
But before this, you have to strike a deal with the agent so they can pay you for every lead you send their way. Just make sure the bulk of the leads you send are warm leads, NOT cold lead. Otherwise, most of the professionals you direct the leads to won’t be willing to pay you.
Another way to make money is by sending leads to professionals within your locality is through advertisements. What happens is that the professionals pay you to advertise their products and services on your site.
It’s however important that you work on getting your site ranked atop in most of the keywords users query into search engines. Securing prime ranking means you’ll be driving huge traffic to your site and at the same time be able to establish some sort of authority.
Consider Opening a High Yield Savings Account
This is a low risk way of making passive income with little amount of effort on your part. As a matter of fact, you don’t get to do anything at all apart from opening a bank account and depositing your savings.
In which case, you get to earn from the annual interest the amount you’ve saved attracts. Try looking at your local banks and compare the interest rates you’ll be earning by depositing your cash with them.
Look at all the option you have. Starting with traditional banks and the interest rates they pay up per month. Another option is to consider saving your cash with a trusted online bank such as Aspiration Bank, which actually pays up to 19 times more compared to traditional banks.
Besides the interest rates, also consider looking at the minimal amount required to open an account with the bank you choose. What are their monthly service fees? Speaking of which, a good bank to work with should have zero monthly fees regardless of the amount you’re saving with them.
This approach is certainly NOT going to get you filthy rich. But it’s a much safer way to ensure that you have a consistent flow of passive income while doing absolutely nothing on your part.
Plus you can relax and have a peace of mind considering you have a near zero possibility of losing your hard-earned cash since most of these banks are FDIC-insured.
Simple, come up with a list of products you can sell online. Of course, you need an e-commerce site to enable it, but that’s pretty much like it.
Even better than selling a product you made yourself is reselling an already existing one. Either way, e-commerce platforms have made tremendous strides that have made it much easier for you to make good money selling a broad range of products online.
A classic example of such a platform is Shopify, which generally makes it really easy for you to either sell some of the items you make or resell the existing ones.
As a matter of fact, all you have to do is pick a template from a long list of existing ones and follow a few guidelines to set up a functional website that doubles as your marketplace.
Goes without mentioning that the platform features a couple of tools that you’ll be using to create coupons, launch a series of promotions, process payments, share your store on eBay, Facebook, Google shipping, and several other price comparison sites such as Bizrate, PriceGrabber, and Nextag to name a few, and even handle returns when a situation calls for it.
Works even better if you’re a drop shipper and are looking for the most fitting platform to sell your products.
List Your Apartment on Airbnb
This will certainly NOT get you rich, but it can be a good source of passive income if your house is big enough for it.
Do you have a house, an apartment, a spare room or a backyard that you don’t use? Well, why NOT list it with AirBNB and start making money almost immediately when someone books for it.
Just head to the AirBNB website and sign up before you can proceed to list up your property with them. And once someone books the place, you start earning almost immediately.
This is a great source of making passive money as you’ll be renting up a space you already own. Just a few preparations up and there just to get the place ready with some little bit of cleaning up and you’re good to go.
Network marketing companies have been receiving a bad rap lately, but that doesn’t rule them out as a viable source of passive income.
Networking companies such as Avon, Young Living Oils, AdvoCare and Pampered chef to name a few can be a great source of income if you can understand your way around them.
While many people would be quick to lump them up with Ponzi or pyramid schemes, some multi-level companies such as the one on the list are actually legit and a surefire way to earn you money.
What happens is that you sign up with one and you immediately start earning every time someone signs under you. The whole point is to keep growing the team under you, and once it grows to be big enough, you start earning a commission every time someone beneath you makes a sale.
Here’s the Wrap Up
It’s a common problem among investors — you go through a list of ideas that make sense to you and you’re suddenly undecided on what to go with. For this case, we encourage you to pick only one idea you’re completely comfortable with and run with it.
Give yourself time to grow and focus on getting your business up first before you can go ahead and expect it to start making you some serious money.
Check out our favorite way to produce residual income online.
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