Here Are Some Ways to Make a Passive Income
Every day is the newest day where I pledge to abandon the rat race and start a passive income generating business – to give up my day job and just enjoy raking in money from a job that takes care of itself. The more I researched how to make passive income the more I found this not to be the case. For a phrase with the word, “passive,” in it, there is still a lot of, “actual,” work involved.
How to Make a Passive Income: It Takes Real Work
Passive income-generating work involves areas of employment, or self-employment, that less maintenance or hands-on work relative to full-time employment. “Relative,” is the operative word in the previous sentence. Passive income-generating work still involves hard work, though it is usually on your own terms.
Owning real estate is one example. Although, you need a lot of start-up capital to buy property and pay for licenses, paperwork, and fees. You are responsible for maintenance, repairs, paying for utilities, paying salaries for any on-site employees, and running around to collect rent. Or, evicting rent-delinquent tenants. So, while this is a passive way to make money, it still involves quite a bit of work. However, here are some ways that make it a little easier.
Use Your Car as An Advertising Vehicle
You know how race cars are covered in ads from their sponsors? Many businesses pay people to cover their cars in large, removable vinyl advertising stickers – for days, weeks, or months depending on advertising impact. You will need a clean driving record, insurance, a car, and time to drive around in high traffic and population areas. Visit websites like Wrapify or Carvertise for more information. Your payment is often by the mile, and you can earn up to $600 a month.
Vending Machine Network
Vending machines are automated and require self-service from consumers. Still, there is a lot of work required to keep them running. First off, you need to network and negotiate with businesses that need vending machines. You will need a license and/or permit. It might make sense to buy out an existing network from another vending franchisee.
You will have to maintain the machines on a regular schedule. Vending machines don’t take care of themselves. On a regular basis, you will have to enact repairs as needed, restock inventories, and collect monies. Location is the key to profit. You might make a $100 to $1,000 a month starting out. About 20% of professional, wide-scale vending machine franchises make up to $5 million a year.
Purchase a Laundromat
This may require a loan or significant startup funds. There will be a lot of startup costs for paperwork and equipment. It might be easier to buy an up and running laundromat. A busy laundromat can make tens of thousands or a few million dollars every year. However, such profits can be severely eaten up by overhead, employee salaries, and equipment maintenance costs, so do the math beforehand.
The truth is that passive income work opportunities aren’t entirely passive, even if they are preferable work opportunities in comparison to working full-time for someone else. There will always be work involved, even if it is on your own terms.
Incidentally, if you’re looking for an example of passive income done right, consider checking out Perpetual Prudence’s article on how they solved the passive income problem. Its good quick read.
Do you have any ideas for making a passive income? Share with us in the comments below.
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Allen Francis is a full-time writer, prolific comic book investor and author of The Casual’s Guide: Why You Should Get Into Comic Book Investing. Allen holds a BA degree from Marymount Manhattan College. Before becoming a writer Allen was an academic advisor, librarian, and college adjunct for many years. Allen is an advocate of best personal financial practices including saving and investing in your own small business.