There are many online businesses with passive income you can start and generate a passive income. Online businesses with passive income require a lot of nurturing at the beginning, but once set up, you can make money without actively working on them. With time, these online businesses are able to maintain themselves while earning you some income without continuously being involved in them. Passive income sources can be a part-time job, while you continue working on your full-time job.
In this article, we are going to provide you with some of the best online business passive income ideas you can consider.
What is Passive Income?
A passive income is a money you earn without a lot of continuous active work. It requires a lot of upfront work, but once the business is set up, you just need to put in less effort along the way. For instance, if you create a blog, at first you will need to put in a lot of effort into creating content. Once you have created content, you only need to keep on updating it. To start earning a passive income, it requires:
- Upfront time investment
- Upfront monetary investment
Best Online Business for Passive Income
The following are some of the online businesses you can start that can help you generate a passive income.
1. Dropshipping Business
A dropshipping business is an excellent online business with passive income. A dropshipping business is a kind of business where you sell products without managing inventory. It is easy since you don’t manage stock. You sell products while they are in the supplier's store.
You need to find trending products you can sell online to customers. You can set your own prices for your products. Once you have found customers, the supplier will package the products and ship them. You can start dropshipping business on eCommerce marketplaces like Shopify. Once you have set up your online store, you can generate a passive income without actively working on it.
2. Start a Blog
A blog is also one of the best online business passive income ideas. You can generate a passive income from a blog through affiliate links, sponsored posts, selling products, and advertisements. To start a blog, you need a domain name, web hosting service, and quality content.
It takes some time and effort to set up a blog. You need to create quality content and drive organic traffic and social media traffic to your blog. But once you have traffic, you only need to keep updating your content and adding newer content from time to time. Find a niche that you are experienced or passionate about you can blog about.
Read more: How to make money blogging.
3. Create a Print on Demand Store
If you are an artist, print on demand store is a good online business passive income idea. You can sell your creativity and make good money out of it. You work with suppliers to customize labels on T-shirts, posters, and business cards and then sell them.
You can generate a passive income from a print-on-demand store by creating products and then putting them up for sale. You can automate marketing and sales processes so that you don’t have to be actively involved. You can sell on print demand products and services through companies like Printful.
4. Affiliate Marketing
Affiliate marketing allows website owners and social media influencers to generate a passive income online. Affiliate marketing involves promoting third-party products using affiliate links. You need to find a product niche and also best affiliate programs like Amazon, or ShareASale.
To make it through affiliate marketing, you can start a blog and add affiliate links or post affiliate links on your social media platforms. When a customer clicks your affiliate link and makes a purchase, the site owner earns a commission. You need a large audience on your social media platforms and good organic traffic to your blog.
5. Start a YouTube Channel
A YouTube channel is also a good online business with passive income. You can start a YouTube channel and share your ideas, experiences, knowledge, or even share humor. To start a YouTube channel, you first need to find some good YouTube channel ideas that you can share with your audience.
They provide content for your audience and drive traffic to your YouTube channel. Ask your friends and social media followers to subscribe to your YouTube channel and watch your videos. You can monetize your YouTube channel through advertisements, affiliate marketing, or brand endorsements.
6. Write an eBook
An eBook can help you generate a passive income online. Many people love reading ebooks on their gadgets like phones, tablets, and laptops as opposed to reading hardcopies. For instance, you can write how-to ebooks and start promoting them online. You will find many people who will want to buy them.
You can publish and sell your eBooks on platforms like Amazon Kindle Publishing. You can sell ebooks on auto-pilot; without being actively involved. You only need to put aside a few hours every week to fine tune your marketing and sales processes.
7. Peer to Peer Lending
You can lend money to your peers online and earn some interest income. There are many online peer-to-peer lending platforms like LendingClub that connect borrowers with lenders. The interest rates range between 5% and 10%. However, you need to be careful to avoid lending money to people who can end up defaulting. Make sure to sign up on reputable peer-to-peer lending platforms to mitigate such risks.
8. Teach Online Courses
Teaching online courses is also a good business with passive income. You can sign up on platforms like Udemy and create videos of the subjects you want to teach online. Udemy users can then purchase your online courses. To make it in this online business, you need to be highly qualified in the subject matter you are coaching online. Once you have created your online courses and uploaded them, you can start earning a passive income when users purchase them.
9. List your House on Airbnb
If you are a frequent traveler, or have a house you don't occupy, you can list it on Airbnb. When visitors or tourists visit your locality, they can rent your room for a few days, thereby giving a passive income. You need to make sure that the room is cleaned up after guests.
10. Sell Photography
The other online business with passive income is selling photography. The demand for photos is high since they are needed by businesses for marketing. You can take photos and sell them on platforms like Shutterstock or sell them to eCommerce businesses. You need to have a high-quality camera and have photo editing skills to produce high quality photos.
Summary of Online Businesses with Passive Income
The above are some online businesses that can help you generate a passive income. Setting up streams of passive income requires monetary investment and time investment. It requires a lot of work when starting an online business, but once it is set up, you can earn a passive income without continually being involved with it.