Building a Passive Income Business?
I my view, a simple definition of passive income would be as follows: passive income consists of earnings or revenue generated in an "evergreen" fashion (ie, it continues without much additional effort). Royalties paid on songs are an example of this; earings will continue to accrue for the songwriter long after any recording of the song.
Bearing that in mind, it's easy to understand why so many people are interested in earning passive income - especially on the internet. From joining an affiliate network to article-writing to creating YouTube videos, everyone wants to explore how much passive income they can earn. (For those interested, several online methods are listed at Resources for Generating Passive Income.)
Moreover, it's worth noting that there are also various ways to earn passive and residual income offline. In fact, some of them are fantastic ways of producing income, and have actually been around for quite some time. For your convenience, several of them are listed below.
Using a Laundromat to Produce Passive Income
For quite some time now, laundromats have been powerful generators of passive income. In addition, it's a cash business that tends to weather economic cycles very well since most people generally wash their clothes on a regular basis, regardless of what anything else that is goind on. (You won't do yourself any favors by wearing sullied, foul-smelling attire to a job interview or the workplace.)
You must determine your level of involvement in the business, such as whether you intend to personally take on some of the tasks associated with the enterprise (such as collecting the cash) or if you will hire someone to do it.
Plus, in addition to the expenses that go hand-in-glove with obtaining a location and equipment, you must also determine who you will address maintenance and upkeep.
Basically, this type of enterprise allows for a great deal of passivity in terms of management; you ascertain how much you want to personally take care of and which tasks you prefer to hire someone for. Regardless, it represents a prime opportunity to accrue passive income, although the level of success you experience will likely depend on numerous variables, such as your location, the number of customers you get, and so on.
Use Vending Machines for Passive Income
As mentioned previously in my hub on Earning Passive Income With a Vending Machine Business, vending machines can generate impressive passive income.
The initial costs can be surprisingly affordable - as low as a several hundred dollars to purchase a vending machine - and can provide earnings well into the future. Needless to say, this will require some level of involvement on your part (e.g., vending machines must be refilled on occasion, as well as monitored), but the end result will be well worth the wait.
On average, vending machinesare estimated to earn about $10 - $15 per day. Of course, the amount of cash generated can vary based on location, product selection, and more. Thus, one of the keys for success is undeniably volume. (In brief, you should probably anticipate having more than just single vending machine out there working for you.
Get Great Passive Incom with a Car Wash Business
Having a car wash business presents another chance to earn passive income.
As with laundromats, it is an all-cash business that let's you operate in the manner you deem fit (i.e., you can hire someone to do almost any job you'd prefer not to deal with yourself).
Of course, it goes without saying that location will play a major role i any success you may experience.
Using an ATM Business to Earn Passive Income
ATMs (Automated Teller Machines) are yet another opportunity to generate substantial passive income.
Leasing or owning an ATM can provide you with earnings by attaching a surcharge for each transaction. (You set the amount of the surcharge, although it is usually $1 - $4.)
Typically, it costs roughly $70 - $100 per month to lease an ATM. Purchasing one outright can cost you anywhere from hundreds of dollars for a pre-owned unit to thousands of dollars for one fresh off the assembly line.
Depending on several variables - including the location and applicable surcharge - ATMs ordinarily generate a monthly income of about $200 - $2000. More info on this topic is available at Earning Passive Income With an ATM Business.
Methods of Earning Passive Income
Summary of Passive Income Business Ideas
In brief, there are numerous ways to earn passive income. Moreover, the bulk of them do not appear in this hub (e.g., a self-storage business). What's required, however, is for you to single out one that meshes with your expectations in regards to the business, as well as what you anticipate investing in it and the return on said investment.
Yau on March 09, 2016:
Thanks for the idea ATM as a source of passive income.
Latoya S from Columbia on September 24, 2013:
I never considered an ATM to be a source of passive income either. I'll have to look into that. Thanks!
Maree Michael Martin from Northwest Washington on an Island on January 05, 2013:
Not a bad idea, great hub!
Maree Michael Martin from Northwest Washington on an Island on July 20, 2012:
Useful ideas for passive income, never thought of it like that. Worked at a couple of those ideas for other people, not bad. Great hub! Thanks.
Rhonda on June 28, 2012:
Hmmmm.... I never thought about an ATM as a source of passive income. Good hub.
Angela Brummer from Lincoln, Nebraska on June 25, 2012:
These are great idea's. The informtion also is straight to the point and easy to follow. Thank you!