In the previous article we highlighted the importance of passive income, the different categories of passive income and 7 common ideas of earning passive income in India. If any of those 7 are not suited for you, then here we have listed 7 offbeat/ uncommon/ unheard/ unorthodox/ unconventional ideas of earning passive income and being one step closer to financial independence
More importantly, the ongoing Coronavirus pandemic has probably highlighted the importance of having a secondary source of income. As we crawl back into normalcy from here, take some time off and make sure you invest your knowledge and hard work in developing a passive source of income.
Click here to read part 1 – 7 common ways of earning passive income
1. Buy an existing business
This can be anything ranging from an amazon reseller to a dropship store to a website already generating revenue or a recording label already enjoying loyalties or a franchise business already earning revenue share. If you have the capital to invest into an existing business, this might be a good passive income generation idea for you.
The benefit of going this route is that you skip the initial 1-2 years of struggle most businesses face in this highly competitive world. You can straightaway go to a revenue generating business.
Here is a good website to buy and sell businesses – Flippa.com
2. Open a Shopify store
Shopify is an all in one ecommerce solution that allows you to create your own store online without worrying about sourcing products or shopping products or worrying about returns and exchanges. It helps with online storefront, payment gateways, products etc. The only thing you need to do with Shopify is….. sell!
There is a lot you can do with Shopify and that will probably be an entire blog post just by itself. But for now if you havent heard of Shopify or tried it out… I would say atleast look it up and read about drop shipping! Once you set up the store and market your online store well, it will take very little maintenance for you to continue selling.
Now when you read about shopify you will also hear stories that 9 out of 10 people failed building successful stores… but that is the case with every business.
3. Start a Youtube channel
Youtube is also another way of generating passive income but it takes a lot of work initially. You can earn around INR 300 per 1000 views of your video. If you can generate content that doesnt need to be updated every ow and then, you are talking about creating videos and getting views. If you reach the club of videos getting 100k+ views, you will be earning enough to rely on the Youtube video income.
There are only close to 2,000 channels on Youtube that are over 1 million subscribers
The amount of time it takes you to reach your first 1,000 subscribers is probably the same time it takes you to reach your next 5,000 subscribers
4. Invest in a startup
This will fall under the buy your way into passive investing category. If you have the capital, it would be a great idea to invest in few startups and get some equity + revenue share agreement with them. While there is a risk of losing capital but if even one of the companies you invested in goes big, you should be set for life.
5. Publish a Book
If you think you have what it takes to write a good book, this one might be for you. You can expect to get anything between 10-15% as a book advance and anywhere from 7.5% to 12.5% as royalties. A very basic example… if you are going to price your book at Rs 200 and you are set for 10% royalties and you sell 1,000 books a month – you make …. 20,000 a month per book just by sitting at home and doing nothing! These days it is not just the sale per book, but audibles, kindle, filming rights etc are multiple ways of earning income
Learn how this investor wrote a book on stock market investing and is now financially free at the age of 26
6. Develop Apps
Are you a programmer and do you like to program/code? There is a 100% chance you can generate some passive income building apps and getting a revenue share model from companies. While this has its own legal considerations, but if you enjoy building website/apps then you can build them and get paid in a mix of cash + stock or revenue share.
A typical app developer charges anywhere from 1 lakh to 5 lakh (sometimes more) to build an app. Now lets say you build an app for 50% of the cost (or for free) but get into a revenue share agreement that gives you 5-10% of all revenue generated for a certain time or in perpetuity.
7. Start stock photography
Do you have the photography bug in you ? While you will need 1000s of views before you generate any revenue, if this is a passion for you then this can very well become a passive income opportunity. If your work speaks for itself then we are talking about clicking amazing photographs and uploading to stock photo websites like Pexel, Pixabay, Canva,Shutterstock etc and you get paid after a certain downloads/views.
In some cases if you are really good at what you do, people might want to buy commercial rights to your photograph and that will be more significant than just uploading photos
In total we have summarized the importance of earning passive income and also given you 14 different ways you can earn passive income in India. If you still need more reasons to start something on the side or if you still need motivation to develop a passive income source, then you are extremely behind on your quest to financial independence and financial security.