7 Types of Profitable Passive Income Businesses You Can Try – Before we discuss this topic further, I’m sure you have been invited by your friends to join the MLM business. One of their characteristics is persuasive promotional techniques or stunning speaking skills. They will give you dreams about success and living comfortably without having to work.
Because if you join them, the money will rotate by itself if there is an initial effort to find downlines. Even though they have various kinds of controversies, I have to admit that from them I also learned a lot of marketing techniques. I myself have never really joined any MLM business. Even so, there are many things I can learn.
In their marketing techniques, they offer a profitable business without the need to be tired of working, this is what is called a passive income business. Then they also display the testimonials of their successful customers.
It’s true that MLM itself is also part of a passive income business that offers a myriad of dreams and wishes. But no matter how great the business is, it will not produce results if there is no effort.
Not only MLM but there are also many types of passive income type businesses. There are at least 7 types of this type of business that I understand. But before entering the world of passive income business, make sure we have invested in the knowledge first.
We can invest knowledge with money, such as attending seminars, buying books, attending workshops, paying for consultants or investing through networking, gathering with people who we consider successful in investing, or investing with time, for example working in the field concerned with investment, or take the time to explore and collect information that is spread on the internet.
7 Types of Passive Income business
Investment is an act of investing resources or capital, with the hope of getting more profits in the future. The act of investing is with securities. For example, such as deposits, bonds, stocks, and others.
Simply put, you provide capital to a business system or company. Then the company develops and your capital also flowers. So that without the need to work later you will benefit from the interest on the capital you invest. The risk, you will also suffer losses if the company goes bankrupt. And also a pattern like this requires you to have a large enough capital.
2. Create/Purchase a System
If the method above is too heavy, you can try to build a running system. This means you build a business, and also create a system that runs A-Z. This means that there will be someone who regulates income, production, stock, recording, and so on.
Example: You are developing a system for an electronics store. You start to build a way for marketing, a system for purchasing goods, a system for payments, a system for employees, and other systems.
The downside is that it requires high competence, is supported by a team, costs are quite expensive, and takes a relatively long time. And also have to spend most of the funds to pay employees. The simplest way is to buy a system. But this also requires large funds.
3. Property/Lease Business
The property business is a business that can be said to have nothing to lose. For example, if you build or buy a building, be it a house, shophouse, building, and so on, then you rent it out, and every month or year you will get paid a rental fee. The downside is that this requires careful consideration as well as large capital.
The cheapest way is to rent small items, such as a car rental business. as long as the asset in the form of a car can still operate, the income will continue to come in line with the high public demand for this object.
4. Franchise/Franchise Business
Franchising is a type of passive income business that is purchased. This means that we buy a package of business systems that are already running because the franchise companies are already able to build their own running systems. Example: If you buy a burger food franchise, you already have the cart, seasonings, recipes, materials, tools, uniforms, employee training, and applications to monitor business developments.
The advantage of buying a system is that the time is relatively short, it is clear from A to Z. The weakness is that we don’t have the flexibility to change the existing system and also the costs are high.
5. Royalty Investment
When you own the copyright to a work, you are entitled to get royalties for the use of your work. One of the professions that are paid royalties is the profession of book writing. Book authors get paid in the form of royalties for the books they write.
Not only book writers, professions such as musicians (songwriters) are also examples of good professions is usually paid royalties. When we create a song, then the song is used for the soundtrack of a television show, played on the radio/in public spaces, then we are entitled to royalties.
These royalties will continue to be paid while our work is still being purchased/used by others. So, it is from this royalty payment that we can get income even though we are not actively working.
Another example of royalties is the patenting of ideas we invent. B.J Habibi owns 46 patents in Aeronautics and he lives on the benefits of the royalties he gets. If Thomas Alva Edison applied for a patent for his lamp invention, he would be the richest man in the world because of the royalties he invented.
6. Networking (MLM)
Apart from franchising, MLM is a passive income business that is purchased. When you simply join them, you are given a system, look for downlines and you will earn passively. Even so, the weaknesses of this business are also many. One is that you can’t change the system that’s been set up and you’ll never be the boss. Apart from that, there are several things that conflict with Shari’a law that make this type of business at a critical point (haram).
Not that there is no Shari’ah-compliant MLM. The point is you have to be more careful and understand a lot about fiqh muamalah so you don’t fall into things that are unlawful or doubtful.
7. Content Publishers/Content Creators
Of the types of business above, this is the most favorite business. This is because this type is cheap and easy to process. Your only capital is the internet, with perseverance and confidence you can get passive income with profits of up to hundreds of millions of rupiah.
The profit is obtained from the content that we share on the internet. Whether it’s in the form of writing, audio, video, plugins, templates, applications, games, and much more. That is, as long as the content you create is still posted on the internet, as long as that is how long you will benefit (that’s roughly how it is). Although later there will also be stages such as upgrading, evaluating, moderating, and repairing it so that updates are according to trends and times and so on.
There are those who make money by opening independent advertising services, PPC ads, PPA ads, Adsense, Admob, product placements, paid promotions, affiliates, and even royalties. Many have been successful in this type of business. For example, Eka Lesmana with his blog, or Mas Yadi, who can earn 200 million from the games he makes. I myself had earned as much as 800 dollars from just Youtube.
But in describing the passive income business prospects of this type it is very broad and branched. Therefore, for in-depth discussion, we will discuss it in subsequent posts.
The things you can do with this business include:
- Create youtube content
- Online courses
- Google Developers
- Monthly/year paid internet service
- Make paid software
- Selling photography works
- Sell video footage
From the various options above you can choose, if you want fast and big results you can try to invest. If you are worried about the loss, you can build your own system. If building the system is complicated, you can buy the system with franchises and MLM.
Or a simpler way is to create a royalty. If the last method is not qualified, you can try to become a content publisher and content creator. Apart from being cheap and suitable for those of you who are just starting from scratch, this method also offers a variety of business models that you can choose as you please.