10 Passive Income Ideas for Small Businesses
As a small business owner, managing your time is an important part of your job. When you’re actively engaging in the necessary tasks to keep your business running, finding new ways to turn a profit can be difficult.
One good way to keep money coming in is to begin generating passive income. Passive income allows you to remain focused on your business for the majority of your time, while still earning money from other ventures that don’t require your attention. Here are 10 ideas you can start using today.
1. Refer Customers to Businesses
You know how important getting customers is and more than likely, you also know other business owners that would be happy to get some new people sent their way. You can work out a deal with them to refer customers, or they might send some of theirs your way. Either way, you both stand to gain from looking out for each other.
2. Real Estate Investing
Real Estate is the best way to make a lot of recurring income relatively quickly. If you have any experience with construction, then it makes it all the easier to evaluate which properties you can buy and resell or rent out. Keep in mind that there are numerous laws and fees when dealing with owning properties, so finding this out before starting is important.
3. Market as an Affiliate
There are companies that will pay you to promote them, especially online. Amazon themselves have an affiliate program which will pay you a percentage of what they earn from selling products from visitors who click your link. As an example, you could recommend products you use daily in your business, with links to Amazon. It would be helpful to others and you could earn money in the process.
4. Start a YouTube Channel
Starting a YouTube channel can not only earn you revenue from ads, but also help you land more customers. By speaking from your expertise as a business owner, you can educate potential customers as well as standout in your industry.
5. Earn Book Royalties
Have you ever considered you know a lot about your business? Others might like to learn what you know. Writing a book could earn you royalties, and it’s easier than ever to self-publish online.
6. Buy and Sell Websites
You don’t have to be good with creating websites at all to make money with them. There are marketplaces, like Flippa, which allow you to buy profitable websites and earn money from them. You can earn similar recurring payment from a website as a small rental property, plus you won’t need a lot of management fees.
7. Financial Investing
Are you doing as much as you absolutely can be with the money you and your business have on hand? You can put your unused cash to work by investing it in bonds, annuities, trusts and more. Speaking to a financial advisor could help you find out how to meet goals you might not have thought were possible before.
8. Begin a Franchise Business
If you’ve ever thought of starting another business, it doesn’t have to be an extension of your existing one. You can start a franchise business from an established brand and reap the benefits of having name recognition.
9. Create Mobile Apps
There are numerous ways to make apps without knowing how to program or code. You can build whatever app interests you, as long as it is entertaining or useful. By offering it for free on app stores, every time someone downloads your app, you can earn money from ads when the app is used.
10. Cashback Rewards Programs
If we’re talking about passive income, cash back rewards are the ultimate trend. You’re already shopping, so getting money back from your transactions is an added benefit. There are even a number of business credit cards that have cash back rewards, so take a look at your options.
Passive income can be a real gamechanger for your small business. If you implement some of these ideas into your current plans, you could see a big difference in your earnings over time.
Nick Rojas is a business consultant and writer who lives in Los Angeles. He has consulted small and medium-sized enterprises for over twenty years. He has contributed articles to Visual.ly, Entrepreneur, and TechCrunch. You can follow him on Twitter @NickARojas, or you can reach him via email.