There are hundreds of ways in which you can create passive income. Let us first look at the three best offline business ideas that are easy to implement.
Start a Bulk Candy Vending Business
You must have seen vending machines in cinema halls or lobby of hotels and restaurants. Have you wondered who owns these machines? Most of these machines are owned by independent business entrepreneurs who have negotiated to place the machines with the parent business owner either by paying a fixed rent or giving them share of the profits.
Vending machines business needs small initial investment; it has a very low maintenance cost and provides excellent return on investment and its success depends upon finding good secure locations.
This is an excellent way to start building your residual income if you do not have large capital or do not qualify for a loan to start buying real estate. The difficult part of this business is to find good locations. You may have to knock on several doors before you secure your first location. Once you are in business and have built a good profile, it will become relatively easy to find and secure new locations.
Network marketing is perhaps the most misunderstood and the most controversial concept of passive wealth creation. It generates strong emotions. Most of us were invited to a fancy presentation and got excited with the prospect of working from home, firing our boss, no office politics or commuting to work. There was also no cap on the income potential.
The prospect of generating great amount passive income excited us as it would give us time with our families, travel the world and pursue our other fantasies. It was better than any retirement plan or job security. It could be started part-time with minimal start-up costs. There were dreams in our eyes of a better future. But then what happened? Reality broke through: we suffered rejection from our friends and families. Our recruiting drive never took off. We never saw those fancy checks) coming into our bank accounts.
On the other hand, there are people generating great amounts of passive income through their efforts in network marketing. Network marketing is an industry that is experiencing an exponential growth with a turnover of billions of dollars and over 55 million distributors worldwide. It is being taught as a subject in many business schools around the globe. People like Warren Buffet and Donald Trump, who are not only some of the richest people on the planet but also have the most astute business minds, own direct selling companies.
Richard Bronson, who owns over 300 companies worldwide, is involved in network marketing. Robert Kyosaki, the author of ‘Rich Dad Poor Dad’ book series and one of the greatest financial educators recommends network marketing as the ‘Perfect Business’ to achieve financial freedom and security.
Why are these business leaders staking their name and fame to promote a business model that has generated so much debate and negativity? They believe network marketing is the wave of the future.
Many highly respected companies such as AT&T, Direct TV, Gap, Google, Macy’s, Nordstrom, Travelocity, and tons more have started to borrow from the concepts of network marketing. These companies have realized that the impact of their multi-million dollar advertising budget pales in comparison to the power of word-of-mouth advertising.
What most people do not realize is that how much the network marketing industry has evolved. Network marketing is a relationship building and mentoring business. To succeed, you must build a network of strong relationships and train your distributors to replicate the business model. The internet has made these tasks easier. You no longer should drive long distances to meet people. You can use ‘skype’ or send webinar recordings to give product demonstration.
There is big residual income to be made in network marketing—make no mistakes about it, it is a low investment business model that gives huge returns if you do it properly and sustain your effort.
Set up an automated eBay Business
If you can source a reliable wholesale product, then you will have over 50 million customers on eBay to whom you will be able to market your product. You can fall into the trap of making your eBay business into a full-time day job. To create residual income you have to automate the whole process. There are hundreds of software programs available to automate the eBay auctions.
The software will automatically start a new auction as soon as an item sells. It will do everything for you except ship the product. Even shipping of products can be outsourced to make it a complete hands-off business that generates residual income for you.
The key to success and profit from eBay business is to source the right product to sell. You can buy these products at a huge discount from eBay itself from the “Wholesale Lots” section. You can then turn around and sell them one at a time for a profit.