1. Vending Machines
Passive income business ideas okay I have a list of 10 to 11 smart and low-maintenance business ideas that anyone can use to earn passive income because okay the key to wealth is to make more money than you spend right and a great strategy to sustain that is to save and invest your money so that it goes to work for you hey Sean look I can make money in my sleep yes so that the go which means we need to invest Into Cash flowing assets which in most cases are going to be real businesses and right now I’m also trying to build my own portfolio of passive businesses but okay how can you do this and where do you get started especially if you have very little time well you’re going to love this video because today I’m going to cover what makes a business passive 10 to 11 passive income business ideas and the secrets to building a passive passive business portfolio so let’s get started by first clarifying what is a passive income business so I’d like to follow the IRS tax definition because okay the tax rates on passive income can be as low as 0% depending on factors such as how long you held the business investment or passive activity for the amount of profit earned or net income made and your overall taxable income from other income sources now according to IRS publication 925 passive income falls into two categories number one a business or trade activity that you do not materially participate in which in general material participation can be summarized as a business or activity where you’re working more than 500 hours a year or you are substantially involved in the operations in other words if you’re working less than about 10 hours per week then that business is considered to be passive the second type of passive activity defin by the IRS is number two any rental activities even if you materially participate except for activities where you are fulfilling your duty as a real estate professional so passive activities in this category can be things such as leasing equipment or other assets rental real estate limited Partnerships or businesses and Farms where you as the individual do not materially participate in and you can be involved in these activities by simply investing your money and spending a little bit of time and I have some passive business ideas that fit into both of these categories all right so now that we understand all that let’s go ahead and talk about my list of passive income business ideas but really quick before I dive in if you’re new to my channel let me briefly introduce myself hey there I’m Sean a self-made millionaire and entrepreneur and right now I’m on a mission to help people start fund and grow their businesses hey if you get any value from this video please do me a favor and like And subscribe subscribe to my channel I’m trying really hard to get my numbers up so if you do please tell me in the comment section below what number subscriber you are so that I can personally reply to thank you all right let’s talk about how this video is going to be structured I have 11 business ideas for you and these are businesses that you can either a start yourself like completely from scratch or B businesses that you can buy in cash flow from day one I’m going to start with some easier businesses and then build up from there so passive income business idea number one are vending machines vending machines are very low maintenance compared to many other businesses that you can start or buy because you don’t have to do any work to sell the product so basically you can be anywhere in the world and someone may still walk up and make a purchase at your vending machine which feels like easy money but remember for a business to be truly passive in the view of the IRS at least we are aiming for something that we can manage in 10 hours or less per week and there are a few different types of vending machines that you can run such as an ice vending machine food vending machine and a supplies vending machine and each of these different vending machines have different maintenance requirements for example an ice vending machine is easier to maintain because for the most part you just need to clean the machine each week and maybe add some salt whereas a food vending machine requires Ires you to restock and buy more inventory of food usually each week now here’s another major caveat and this applies to every business idea on my list which is okay the size and the scope of the business may also determine whether or not it is passive for example someone who owns 100 vending machines but is the sole operator probably won’t be able to manage the business passively at least without hiring a lot of help whereas someone who is managing three to five vending machines probably can do that pretty easily as a passive business now a vending machine and a high traffic area that is wellmaintained can earn about $300 per month so if you have about five of those that’s an extra $1,500 per month not bad let’s keep going.
2. ATMs
With passive income business idea number two ATMs so instead of putting in a vending machine in a hi trffic area you could put in an ATM and still make pretty good money because ATM owners make money from extra fees or SE charges for the convenience of letting people withdraw money from their machine or ATM so usually these fees are about $2.50 per transaction so if eight people use your ATM machine per day you would earn about $20 per day or $600 per month and if you have a few of those you can stand to earn maybe an extra $2,000 per month hey Sean look my ATM is printing money also newer ATMs even have advertisements that can be shown on the screen while things are processing giving the ATM owner even more passive income now the primary maintenance requirements of a ATM are going to be of course making sure you’re supplying the machine with cash and making sure you’re replacing the paper and the ink for the machine clearing up any paper jams from the cash or the receipts and of course making sure the machine and the software are all working properly.
3. Laundry Mats
Okay let’s move on to passive income business idea number three I have laundry mats so laundry mats are low maintenance businesses too because once again the machine is doing all the work for you so for the most part you just need to make sure your location is clean the machines are working and then pick up your coins now since it is a simple business idea almost anyone can understand it which means you could easily hire someone to manage a location for you the biggest headache will probably be dealing with the machine repairs but of course you can Outsource that as well now the average laundry man makes about $660,000 per year in Revenue according to laundry Solutions leading to an extra $5,000 per month in passive income now I also love laundry mats because okay they almost never fail they have a very high success rate of 95% According to some very credible sources ources now I have an entire video where I break down more business ideas with very high success rates so if you haven’t seen that I’ll link to it down in the description below and at the end of this video so you can check it out right after you finish this one
4. Long-Term Real Estate Rental Property
All right so those are three ideas that I will consider to be at level one because these are simple and very easy to execute but as a consequence they typically make less money and are harder to scale due to the ongoing maintenance requirements now let’s get into some level two business ideas and these are ones that can easily meet our passive business requirements because they have less maintenance and with that they have more scale but of course they require more Capital let’s start with number four long-term real estate rental property now this is a very popular business because okay people will always need a place to live and people prefer to live in places where there are great resources nearby so the business model behind rental property is proven and many successful Real Estate Investors will simply teach you how to find a great location with good migration and good jobs get good debt on the property find great tenants and let them pay off the mortgage with some extra cash flow for you and then repeat the process and you definitely can manage one two even 10 properties as a passive business because once you get the property move the tenant in then all you have to do is collect monthly rent and handle any maintenance or repairs that come up from time to time so how much passive income you make ultimately depends on the size of the property and how many properties you own but the average cash on cash return for a rental property is about 10% and the average landlord makes about an extra $200 to $300 per month per property and so if you can get 10 properties that’s an extra $33,000 now I have over $1 million invested into most multi family real estate and the way that I like to invest is through syndications where basically someone else is the active or general manager of the property or the building and I Am The Limited partner so it becomes super passive for me because all I have to do is give someone my money who is very experienced in real estate and they take care of the rest.
5. Short-Term Rental Property
Closely following long-term real estate is number five short-term rental property the most popular version of this right now are going to be airb andb style businesses and the benefit here is that you can make more cash flow by renting out your property to people at a daily rate rather than at a long-term monthly rate another example of a short-term rental business would be stuff like renting out your car so many people turn to apps like turo as a means to make some passive income also if you have a pool then you can allow someone to rent out your pool for a day using a site called Swim all these are great examples of short-term rental property businesses but the tradeoff here is okay you’re likely going to have to do some more maintenance and more management responsibilities which requires more time however remember any rental activities still are considered past the businesses at least in the eyes of the IRS eyes IRS now the second approach to short-term rental real estate is flipping properties this is where you find a distressed property fix it up and then resell it now obviously this takes a lot more time and effort plus the risk is elevated because you could buy a property where it requires more money to fix than it can sell for but look if you’re willing to spend the time to learn and invest if you can flip four properties per year at a $115,000 profit that’s an extra 60,000 per year advertise to $5,000 per month which is solid
6. Self-Storage Facilities
Okay at number six I have self storage facilities this is another easy passive income business because it requires very little time and today people have more stuff than ever before so the demand for storage facilities are really strong and Nick hubber a self- storage facility owner had this to say about his company and his time we we get maybe five or six customer service calls a week so on top of our other six facilities this is very very low touch this property but it still looks great customers love it we have a lot cheaper prices than Extra Space Storage up up the hill that spent $100 a foot to to buy to build their property he breaks the numbers down for one of his facilities which was okay he bought the property for $482,000 plus $10,000 in closing costs which more than likely required a 10% down payment of about $50,000 okay his annual revenue was $90,000 his annual expenses were $222,000 consisting of utilities accounting software outsourced maintenance and marketing leaving a net operating income of $68,000 which is an extra $5,500 per month in passive income so if you want to join the storage facility business you have a few options number one you could buy an existing storage company like our friend Nick did which by the way I have an entire video where I break down how to buy a business which I’ll link at the end of this video number two you could find a commercial real estate area and then build out your own storage facility which admittedly is probably the hardest way or you could do number three and become a limited partner in someone else’s storage business which is something that I personally would love to do
7. Event and Tool Rentals
Now another passive business that you can actually combine with storage facilities is number seven event and tool rentals because when people are hosting big events they prefer to rent stuff like chairs and stages and decorations and Tents and so on so you could easily store these popular supplies and materials that people often need for their events and then rent it out as a passive business and managing this can take very little time you just have to do some upfront work where you are purchasing the rental supplies and then establish a pickup facility and then from there the ongoing maintenance would be number one making sure all the rentals are returned on time and then number two make sure all the supplies remains in good condition and you could even hire some staff and add on a delivery component where you are dropping off the rental supplies and materials and at that point you can get really advaned by renting out more stuff like porta potties or photo booths and much more now I have a good friend who makes $66,000 per month with her rental business and I’ll be interviewing her for my channel very soon so make sure you’re subscribe if you haven’t already so you can check that out when it drops.
8. Digital Products
All right so those are four more business ideas that I would categorize as level two businesses because once again they require more Capital usually because you’re buying some real estate to get started but at the same time they’re more scalable and they’re more passive now let’s move on to level three business ideas and these are going to be companies that have even more capital or time requirements but they also have more scale so let’s dig in with number eight digital products so what are digital products well simply put these are products.
9. Online Courses
With number nine I have online courses now this is a great passive income business because once you create the course it can be sold over and over again without much additional effort so if you have expertise in a particular subject or skill you can package that knowledge into an online course and sell it on platforms like Udemy Teachable or even your own website now the key here is to focus on evergreen topics meaning subjects that will always be relevant and in demand like personal development business skills or hobbies for example photography or cooking once your course is created the only ongoing tasks would be answering occasional questions from students or updating content as needed which should take very little time each week now successful course creators can make anywhere from a few hundred dollars per month to tens of thousands depending on the niche and marketing efforts so if you’re good at teaching or sharing knowledge this could be a fantastic way to generate passive income.
10. Affiliate Marketing
Moving on to number ten I have affiliate marketing which is essentially promoting other people’s products and earning a commission for every sale made through your referral link now this is one of the most popular forms of passive income because you don’t need to create your own product all you need to do is drive traffic to someone else’s offer using blogs YouTube videos social media posts or email newsletters now the best part about affiliate marketing is that it scales incredibly well once you’ve set up your promotional channels they can continue generating sales with minimal maintenance for example if you write a blog post reviewing a product and rank it high on Google it can bring in commissions for months or even years without any additional work on your end some top affiliates earn five or six figures per month by focusing on high-ticket items or recurring subscription-based services so if you enjoy content creation and driving traffic this might be the perfect passive income stream for you.
11. Subscription Boxes
Finally at number eleven I have subscription boxes these are physical or digital packages delivered to customers on a regular basis typically monthly and they contain curated items based on the customer’s interests or needs now what makes subscription boxes a great passive income idea is that once you establish the system for sourcing products packaging them and shipping them out the process becomes fairly automated especially if you use fulfillment services or dropshipping models for example if you start a snack box service where subscribers receive unique snacks every month you only need to handle supplier relationships and marketing after the initial setup now many entrepreneurs automate their subscription businesses further by integrating tools like Shopify and apps that handle billing and shipping updates so how much money can you make well successful subscription box companies can generate thousands of dollars per month depending on the price point and number of subscribers for instance a box priced at $30 with 500 subscribers brings in $15,000 per month minus operational costs not bad right
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