Ideas

Passive Residual Income Ideas

Ideas for Passive Residual Income Businesses and Investments

With the advent of the internet and the transition of purchasing offline to online there has been a revolution in the way that people work, communicate and operate a business. There are numerous ways to earn a passive income through online residual income businesses which all require initial time (and sometimes financial) investment. Depending on the businesses that you choose to earn a passive income with, there are varying degrees of time, money and risk involved which are all discussed in more detail below.

Passive income is a revenue stream that you receive through online and offline business investments. An example of an offline passive income source would be through a real estate property that you rent out to a tenant and subsequently receive a monthly rent with minimal effort required on your behalf. An example of an online passive income would be through writing an eBook and selling it online. Sales of your eBook will occur regardless if you are on your computer or not. With advancements in online automation and technology there has never been a better time to start earning a passive residual income online.

passive income business

In contrast, active income is defined as income from a source (or sources) for which services have been performed. Simply put, a value is placed on the time that you perform work and when you are not working you do not receive any income. A wage or salary earned from a job is an example of an active income.

So in thinking about what kind of income that you currently earn and what you would like to earn in the future, I would like to remind you of the most precious commodity in the world…your time. Your time is not renewable (unless you believe in reincarnation), you can’t buy, rent, save or borrow time, and as you get older and your health deteriorates, your choices on how you spend your time becomes limited. Interestingly, as you get older your perception of time changes, as time seems to speed up and there seems to be less time in the day. So with an extremely finite resource that is biologically determined, your choice in how you utilise your time becomes an extremely important consideration.

passive income money

So the most pertinent question after learning that your time is finite is what are your goals in life… such a deep question for a website I know, but as we live in a world built on capitalism then it won’t surprise you that most of your goals will be linked to some sort of financial caveat. So I am going to go out on a limb and suggest that your life goals will be intrinsically linked to financial freedom and if I am wrong then you are in a fantastic position in your life and I encourage you to share your experiences with others. If not, then the next logical question is how do you intend to achieve financial freedom? May I suggest the answer to this question is passive residual income!!!

So to get you started, I have developed this table to help you with kick starting your goal of financial freedom with a comprehensive list of passive residual income investments ideas that are explored in more detail below. Each of the passive residual income investments ideas takes into consideration the following elements that may impact on your decision to explore the idea in more detail and I stress that each element is assessed subjectively based on experience and is of course open for debate.

  • Initial financial investment
  • Initial and ongoing time commitment
  • Marketing for customers required
  • Location specific
  • Return on investment expectations
  • Risk assessment based on time and financial investment

The one point that I will stress is that it is important to have multiple streams of passive income. In finance terms this is called diversification or put another way, don’t put all your eggs in one basket. However, if you are just starting out with developing your passive residual income, then I suggest you focus on one passive residual income idea first and developing it into a stream of income before moving on to another idea.

Passive Residual Income Ideas

Tabulated Overview of Ideas
Passive Income SourceInitial Investment ($)Time Commitment (Initial/Ongoing)Customers Required (Marketing)Location SpecificReturn ExpectationsRisk (Time and $)
Write and sell an eBook++++/++++-++
Sell products through your blog-+++/++++-++
Sell a product through your website via affiliates-+++/++++-++
Sell other people’s products (affiliate seller)+++/++++-++
Sell advertising space on your website--/-+-++
Build and sell an App for mobile devices++­­­++++/+++++-+++
Peer to Peer lending (P2P Lending)++++/+--++++
YouTube channel-+++/++++++-++
Resell online products and services (web hosting)-+++/++++++-++
Create your own widget and sell online++++++/+++++-++++
Royalties from your content library items (photos, icons, infographics, music)++++/++++-++
Software development and ongoing resale++++++/+++++-+++
Buy an existing successful online business and manage ongoing operation+++++/+++++-++++
Sell the license for your idea or patent++++++/-+-++++
Create a business system and franchise it out++++++/+++++++++
Utilise a reward/discount/cashback programs++/+-+++
Create and sell an Online Course++++/++++-++
Multi Level Marketing ++++/+++++++++
Rent out a spare room in your house-+/++++++++
Buy an investment property and rent it out+++++/++++++
Investment portfolio – managed funds, shares & dividends+++++/+--+++
Contracts For Difference (CFDs)+++++/++--++++
Car share on your usual commute++/+++++++
Silent business partner or Angel Investor++++/+--++++++
Insurance broker or Mortgage broker+++++/+++++++++++
Pension or Superannuation income++++/+-++++
Signal Trading+++/+--+++++
Interest from a Savings account++++/+--++

Passive Residual Income Ideas

Explore Each of the Ideas by Clicking on them below