Money from passive income continuously flows even if you’re sleeping, so it’s a wise investment if properly planned the first time. With the internet and digital technology, it’s now possible to venture in online businesses for passive income, and you don’t even have to leave the comforts of your home or rent a space to start an online business you just need time, motivation and skills. As Journal Review founder Ippei states: Before starting your own business, you need to develop high-income skills. Once this is done it’s then time to work out which online business is right for you. Here are the top online business ideas you can choose from to earn a passive income:
1. Lead Generation Business
Creating a lead generation website is another excellent way to make passive income, which aims to provide referrals or clients to local businesses. A lead generation website is a helpful source for people who have questions or concerns about a particular product or service. In return, you make recommendations to your readers so your partner businesses can earn.
Here’s how it works:
- Educate your readers about a particular product or service, like real estate investing.
- Create links within your lead generation website so online visitors can contact you to find out more.
- When a visitor contacts you, refer the person to a real estate professional.
- In return, the real estate business will pay you for the lead.
- Also, you can make money by welcoming advertisers, so you need to learn more about SEO and lead generation.
2. Crowdfunding Real Estate
Real estate investment is not just for the rich. Crowdfunding real estate websites provide a great way to earn money while you sleep, with as low as $500 as a starting capital. Purchasing a rental property costs much, and without experience managing one, you might end up losing more money. That’s why investing in a crowdfunding platform makes a more practical and affordable option.
Here are some tips when investing in a crowdfunding real estate business:
- Choose a trusted and reputable company, such as Fundrise, for a low-cost and easy way to invest in crowdfunding real estate.
- Determine the number of real estate products a company offers so you can choose the best that fits your budget and your financial goals.
- Visit the website of the company and learn more about the mission, vision, and what clients have to say about the management, customer service, and investment rates.
3. Dropshipping Business
It’s possible to sell products on Amazon, eBay, or Shopify without you worrying about logistics. That’s what dropshipping is all about. You can make as much as six figures a year selling your products online.
- Choose a niche or product that is in-demand, appealing, and not locally available.
- Secure a trusted and reputable supplier like Alibaba.
- Create and build an e-commerce website, such as through Shopify.
- Create an impressive business plan using social media channels like Facebook, Instagram, YouTube, and different digital marketing platforms.
4. Peer-to-Peer Lending
Many people do not qualify for bank or traditional financing, and that’s when Peer-to-Peer Lending or P2P Lending can help. The investment return you can get varies from 3% to 8%, which provides you a higher income result as compared to a money market or savings account.
Here are some of the P2P Lending platforms you can choose from:
- Worthy: Pays 5% return of investment and offers $10 bonds
- Upstart: Earn between 5.6% to 9.2% and doesn’t charge for investor fees
- Prosper: Minimum investment of $25 and charges 1% investor annual fee
- Lending Club: Requires $1,000 minimum investment and charges 1% investor annual fee
Note: There could be minimum net worth required by a particular Peer-to-Peer Lending company. Check the terms and conditions accordingly.
4. Write and Sell Ebooks
Self-publishing books have dramatically evolved in recent years because of digital media. If you have a passion for writing, you can write and sell eBooks through Amazon Kindle Direct Publishing. It is a great way to earn passive income online for as much as 35% to 75% royalty rates.
Here’s how it works:
- Sign-up or create an account with Amazon KDP.
- Fill-up the appropriate eBook required information, such as the title, series, publishing rights, categories, and release date.
- Upload the book file with your desired format.
- Upload the eBook cover and the International Standard Book Number or ISBN.
- Choose publishing territories.
- Select the pricing and determine the royalty rates.
It’s essential to equip yourself with the latest information about online business trends and demands. You can create a website, invest in crowdfunding platforms, or sell digital products like eBooks to earn passive income online. If you know where and how to start an online business, you can earn a satisfying amount of passive income.