Passive income part 2 – 11 new ideas

A few months ago I wrote about how to generate passive income. How to make money with a business that does not need to be actively managed. The post became one of most read articles that I have done.

Last time I presented 10 ideas. In this post, I will introduce 11 new ideas to inspire and make use.  This time, I don’t define what passive income is or other aspects involved, those you can read from my earlier post. Let’s start.

Vending machines

Vending machines are a way to sell things without selling them directly yourself. In vending machine business owner is more like an operator. You have to maintain machines and keep articles in stock. There are all kind vending machines available for different purposes: Candy, soda, snacks, toys.

vending machine photo
Photo by JeepersMedia

One important aspect is the place. If the location has a lot of people and traffic, business is more likely to succeed. Another thing is surrounding. If your vending machine is the only provider of service, it’s more likely that people use it.

Peer to peer lending

Peer to peer or P2P lending is a way to lend money to individuals or businesses, much in the same way as a bank. Usually, lending is done through an online service that connects the lender and borrower together. Service provider checks the credibility of the borrower and arranges the transfer of the assets. The lender obtains returns as the borrower pays back the loan and interest.

You have to evaluate the risk and returns involved. Although the borrower’s credentials are checked, there is still a risk of bad debt. For safety is best to distribute the loan into multiple borrowers so that if one fails to pay back you don’t lose all your money. The ideal used interest rate is high enough to cover the possible bad debts.

Ad space business

If you own land or a building near a busy street or road you can start your own billboard business. Billboards are a way to sell space for advertisements for businesses.billboard

One option is to get a digital billboard or signage that can change ads making possible to sell even more advertisements.

There might be some regulations concerning the billboard location, size or function so that there wouldn’t be harm to traffic safety.

Make an online bot

The Bot is a computer program that works like a robot. Bots are used to automate computer tasks such as stock trading, poker, auctions and web shops.

It’s only matter of programming skills and ideas what can be achieved through automation. Harnessing automation means that you make a program with a set of rules that it can operate on and make work for you. To make a working trading or Texas Holdem bot is not an easy task and involves programming, but it’s possible. One option is to make highly automated selling process where the system operates independently through the process from checkout, billing, dispatch to maintaining items in stock. The warehouse, picking, and product delivery could be outsourced to the third-party that would manage the shipping to the end customer.

Franchise Bussiness

In franchise business the idea is not to make a business but a business model that is multiplied and scaled to a chain of businesses with independent entrepreneurs running them. Franchising is best known from the restaurant business where someone makes a brand and a business model how the business operates and looks. After a working model, the business model is sold to private entrepreneurs that run their own businesses, but use common brand and principles defined by the owner of the franchise. Businesses pay royalties for the franchise from their returns.

The franchise could be started by making a working business and after that selling the idea, education, brand and know-how to other entrepreneurs to help them start their own businesses and after that benefit from returns collected from the chain of businesses.

Make an online guide

Almost everyone has knowledge or expertise from some area of life. To harness this knowledge you can start your own guide business. The idea is to comprehensively collect everything to one website and make it an ultimate root of knowledge. The guide could be almost about anything: If you travel a lot you could write a travel guide if you know more about plants and farming you could write the guide about that. The main idea is to provide knowledge that is comprehensive, helpful and useful. To make money your online guide needs to get traffic. After enough traffic, you can earn by advertisement and sponsors.

Certificate business

The World is full of business certificates. The Idea of a certificate is to prove that companies are following standards and norms so that they fill certain criteria. There are already all kinds of certificates from the quality to the sustainability and ethics.

You can start your own certificate business by making a standard. For example, if you make “best e-commerce” certificate you need rules, a certain code that you can make a standard. After making certificate you can sell it to e-commerce businesses. By using your certificate business can communicate to its customers that it has a certain level of trust and credential.

Sell software licenses

Software license gives user permissions to use the software. When buying a software you often don’t buy anything concrete, instead you buy a license that gives you the right to use the product, the CD or DVD is only a distribution channel.

There is software sold in a form of license. For example, antivirus and online security products that users can download and try for free. The license is needed after the evaluation period if the user decides to continue using the software. This part is where you come in and sell the license for the customer.

Build an online community

Common interest connects people. If you have an interest in something, let say like photography, sports or some gadget you can make your own online community around the subject. The main thing is the niche, the subject should be focused on some activity and connect people who have a common interest. If you can make your online community large enough, you can start making income through advertisement.

Tools for building online community are free. CMS solutions like WordPress with a plugin like BuddyPress could be a good option or you can use Drupal Commons.

Make a mobile application

For the mobile application, you need to have good, unique idea. There is an abundance of application for every possible task. The application needs to stand out to make a profit. The benefit of mobile applications is the sheer number of devices and users, the easy and effective distribution channels made possible by app stores like Google Play Store and IPhones App store.app photo

To start making a mobile application you need programming skills and the correct tools, which are free. For Google Android, there is Android Studio and for Apple IOS Xcode.

Build a discount coupon and code online service

Do you remember when you cut out paper coupons with scissors to get a discount? Paper coupons are gone and now people are searching for deals online. Coupon service is a site where consumers and businesses connect. The retailers, restaurants and stores want to lure customers with deals and customers want to find deals. There are big services like Groupon and Retailmenot, but what if you could do a coupon service that could have some new idea or practice? You could specialize in local businesses or a narrow field of services or products.discount photo

Remember to read also my earlier post about passive income. Do you have ideas for passive income streams? Share your thoughts.

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