People are constantly looking for ways to make more money. Buying passive income streams (like monetized blogs & Chatbots, niche sites, podcasts etc.) and passive income businesses (like Laundromats, self-service stores & storages, automatic car wash etc.) seems lucrative.
Whether you are a business or an individual, you can buy passive income streams that are already earning income or streams that will help you save on operational cost while and earn passive income simultaneously.
Can you buy passive income streams? Yes, you can buy passive income streams and still make money consistently over a long time. There are many passive income streams (both online and physical) you can buy and earn money from. Finding the right passive income stream to buy depends on a number of factors like your business, capital, passion, schedule etc.
In this guide, we look at how you can buy passive income streams and how each stream turns into a passive income source.
Like most passive income ideas, running this type of business will require a lot of your patience, good business skills, dedication, and practice.
With these, you can turn your passive income stream into a reliable source of passive income.
Let’s get started.
Automating
You can make passive income by automating some of your business activities. This includes repetitive tasks such as customer support, correspondences, data entry, approvals, enquiries, bank records, payments, and other related services that can take up a lot of your time (source).
There are many ways to break down your tasks for easy automation (source). Automating your services is a great way to reduce your operating costs and enhance the accuracy of the information that is provided to your clients.
Almost all kinds of businesses can benefit from automation (source). Businesses like Laundromats earn passive income through automating laundry services and hiring less staff to run it. For example, automation helps Tim Cowell earn more income from his Colonial Laundromats by keeping them open 24 hours with only one attendant.
“Three of our four Laundromats are located within a college town, and students are notorious for keeping odd hours. Our biggest problem was turning customers away," he says. "Customers would come in late and employees would want to be leaving, so it was easier just to stay open."(source).
You can also automate your business using software and artificial intelligence. Software like RPA helps you analyze data and provide the necessary feedback to your customers faster and conveniently.
AI on Chatbots improves service delivery since customers find these automated computer programs to be engaging, accessible, and convenient. Moreover, you can generate passive income from your Chatbots by running affiliate programs and advertising.
Monetized Chatbots can earn more than $2000 a month and also help you save on costs, generate leads, assist developers, and ensure quick replies to your customers.
How passive is automating?
Automating your business is a very passive means of generating income. You spend less time dealing with most of your repetitive processes, save on operational costs, and ultimately boost productivity.
It is easier for you to keep track of your activities while running other important tasks without worry.
Outsourcing
You can generate a considerable passive income stream by outsourcing some of your work like customer support, accounting tasks, and financial obligations to other people.
Outsourcing can save you a lot of time and money and is ideal for most businesses (from a grocery shop to a major corporation). In his book on Financial Freedom, Gary Sabatier states that one of the best ways to make money over the long term is by hiring other people to work for you.
Outsourcing is one of the best ways to build your business value as you can accomplish much more in a shorter time. Planning within reach lists outsourcing as a very efficient way of handling your business challenges that may affect your earnings.
According to Deloitte, when executed properly, outsourcing delivers competitive advantage through the transformation of business operations, making them more agile, efficient, and effective.
You can outsource customer service support to help you run your business much more efficiently through companies such as Cosupport, influx, and Vend that offer customer support services to other businesses.
How passive is outsourcing?
Outsourcing some of your services is highly passive. You spend less time dealing with the management of your business while you still make money.
It is very suitable for growing your business especially demand rises for some of its services.
Outsourcing is a good way of reaching more people, improving on your business, and making it more profitable.
Hiring
Hiring people to help run your business is a good way to make income passively. You can have them handle most of the operations of your business while you focus on other tasks.
If you are looking to grow your business, hiring is a good way for you to start. You can complete more tasks at a shorter time and still have more time for yourself.
For instance, you can hire staff to help you run a side hustle such as a restaurant, Laundromat, food service truck, 3D printing service, blog, and niche site etc.
Hiring people improves the quality of work as well as creates diversity within your business (source). It will also bring in new ideas that can improve your business.
According to statistics, 30% of the global workforce consists of people actively looking for a job, so finding someone qualified for your business should not be difficult.
Finding the right employee depends on a number of factors that include qualification, personality, knowledge, and other additional skills.
Studies show that hiring wrongly can affect your business. For example, monster states that 24% of businesses have made losses from poor hiring practices. You should make sure you get the right person for the job.
How passive is hiring?
The hiring process is not very passive. You will have to be actively involved in recruiting your prospects and finding out how they can add value to your business. Big companies have well set up departments such as HR that can handle most of the job for you.
If your business has just kicked off, this task may fall on you. After you successfully hire your team, you can expect to generate income much more passively.
Hiring may cost you money from wages and employee benefits but you can be assured of making much more and meeting most of your business targets within the required time.
Rental Properties
On average, 27% of the residents in the US rent out their homes (source). Many people consider investing in rental properties as a very easy way of making passive income. It is also a much cheaper alternative to purchasing a home.
Online platforms such as Airbnb allow you to rent your home to guests at a reasonable price. This includes a 3% commission on all bookings and about 10% from payments (source). You can make up to $2500 passive income every month by taking part in this venture.
To attract many people to your rental service, you should first ensure that your rental space is fit for use by your guests. This can include proper beddings, parking, internet, power, water etc.
We also suggest that you conduct a proper screening of your customers to prevent misunderstandings with your neighbors or authorities.
You can also rent out other things like cars, bikes, and other personal equipment at a fee and earn money while still working another job.
How passive is renting out properties?
Renting out properties can be highly passive. Using online platforms such as Airbnb to look for prospective short-term tenants will require a short time to get you started.
All you have to do is to register your home on the platform, fill out a few personal details such as your contact information, and coordinate with the authorities for any levies, taxes that they may require.
You can make extra money passively by taking advantage of your extra living space.
Flipping Properties
Flipping is a popular way to make money passively. You can flip items from real estate, furniture, niche sites, domains on online platforms to earn passive income.
It involves buying properties and holding them until you find a buyer. You can then sell the product at a higher price to make profits.
A survey by ATTOM Data Solutions shows that 49,000 homes in the US were flipped within the first quarter of the year. This represents about 8% of all homes sold during the period.
Flipping has become a popular option for people who are looking to make some extra income.
For instance, you can make up to $3000 passive income from flipping cars online. Some online platforms such as craigslist and eBay can allow you to sell some of your flipped products to others.
You can also flip software such as domain names and niche sites online and still make money passively.
For instance, you can buy unregistered domains for close to $1 and then sell them later at a much higher price. Some people have made close to $5000 a month from flipping domain names alone (source).
To be successful, try to look for products that can sell easily such as wooden furniture, antiques, collectables, appliances, and motorized items. One user made $5000 from flipping mattresses, bikes, televisions, and cleaners on eBay (source).
All you need is a little capital to buy the products and some basic business skills. We recommend that you first do your research on what your consumers may want to buy. You can find such information on platforms such as Google trends.
How Passive is flipping?
Flipping as a means of generating income is moderately passive. You have to be actively involved in sourcing for products as well as taking part in customer interactions.
This can take up a lot of your time and attention, but if you are looking to become more passive you can always delegate some of the work to others.
Flipping items on online platforms does have its risks, as some products may take too long before finding a buyer. Do not give up!
Flipping will require a lot of your patience, commitment, and dedication. It will also require constant research as you try to keep in touch with what your customers want. Once you master the trade, you will find it easier with time.
Our Verdict
By now, it is obvious that you can buy passive income streams and businesses like Laundromats, blogging, running niche sites, YouTube channels, selling stock photos, self-service storage facilities, self-service stores, eCommerce etc. You can also earn passive income through automation, hiring, and outsourcing.
Buying passive income streams may not be as cheap as we would like to think. Some of these passive income methods will require a considerable amount of time and money investment.
We recommend that you have a good idea of what you are looking for if you want to be successful in your business. Some of these streams may take time before they mature and start earning passively.
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