Businesses That Run Themselves For Passive Income
In a world where time is increasingly valuable, passive income has become an attractive option, especially for young adults looking to diversify their earnings. One of the most appealing avenues to achieve this is through businesses that run themselves. These "hands-off" business models operate with minimal day-to-day involvement, allowing you to earn consistently without active management.
In this guide, we’ll explore the types of businesses that can generate passive income and require little maintenance.
Why Choose a Business That Runs Itself?
"Businesses that run themselves" are designed to generate revenue with limited daily input. This approach is appealing to people who want to supplement their income without a significant time commitment. The idea is to leverage automation, outsourcing, or low-maintenance systems to keep operations smooth while you focus on other priorities.
These businesses are especially beneficial for:
- Time-Constrained Individuals: Students, busy professionals, and stay-at-home parents can earn extra income without sacrificing their schedules.
- Entrepreneurs: For those who want to build multiple income streams, hands-off businesses allow for diversification without overwhelming management responsibilities.
- Young Adults Exploring Passive Income: Many young adults are looking to invest in income streams that don’t require traditional working hours or constant oversight.
What is Passive Income?
Passive income is money earned with little or no active effort once the initial setup is complete. Unlike traditional jobs, where income is directly tied to the hours you work, passive income streams allow you to generate money even when you're not actively involved. These income sources often come from investments, rental properties, or businesses designed to operate autonomously.
Passive income can create financial stability and freedom by enabling you to earn passive income over time. Whether through rental payments, automated sales, or ad revenue, the potential for steady income without active involvement is what makes passive income so desirable.
Types of Businesses That Run Themselves
Ideas for Online Businesses That Run Themselves
Online businesses are increasingly popular due to their flexibility, scalability, and global reach. These types of businesses are particularly appealing to individuals seeking passive income or side hustles.
By leveraging automation, outsourcing, or hands-off models, online businesses can generate revenue with minimal daily involvement. Let’s explore some of the most popular online business ideas that can run with little ongoing effort.
Affiliate marketing
Affiliate marketing involves promoting products or services and earning a commission for each sale made through your unique link. Successful affiliate marketers, like Pat Flynn and Michelle Schroeder-Gardner have built substantial income by promoting products that resonate with their audience. To succeed, choose high-quality products in a niche you’re passionate about.
How it works:
- Join an Affiliate Program: Choose a program from platforms like Amazon, ShareASale, or individual companies with affiliate networks.
- Promote Products: Use your blog, website, or social media platforms to promote products or services.
- Earn Commission: When someone clicks your link and buys the product, you earn a commission based on the sale.
Pros:
- Low startup costs: You don't need to create your own products.
- Scalable: As your audience grows, your earning potential increases.
Cons:
- Requires audience-building: You need a platform, whether it’s a blog, social media, or YouTube channel.
- Competitive: The affiliate marketing space can be crowded, so standing out is key.
Beginner Tips:
- Start with affiliate programs related to your interests, such as Amazon Associates or niche-specific programs.
- Focus on creating valuable, authentic content that genuinely helps your audience and naturally incorporates the products you promote.
Amazon FBA to build a business without inventory
Fulfillment by Amazon (FBA) allows you to sell products while Amazon handles storage, packing, and shipping. It’s a great option if you want to avoid managing inventory. This business model enables you to source products at a low cost, ship them to Amazon's fulfillment centers, and earn profit without needing physical storage.
How it works:
- Source Products: Find a product to sell, either by manufacturing your own or sourcing from suppliers.
- Send Products to Amazon: Send your inventory to Amazon’s fulfillment centers, where they handle storage and shipment.
Pros:
- No inventory management: Amazon handles logistics.
- Trusted platform: Many customers trust Amazon, which can make selling easier.
Cons:
- High competition: Many sellers use the FBA model, so you need to find a niche with low competition.
- FBA fees: Amazon charges for storage and fulfillment, which can eat into your profits.
Beginner Tips:
- Start small and focus on a specific product niche that has demand but limited competition.
- Use Amazon’s tools to analyze pricing, customer reviews, and competition to make informed decisions about which products to sell.
Dropshipping with low startup costs
Dropshipping is a business model that allows you to earn a steady income and sell products online, and you don't even have to own the products physically.
A dropshipping business, one of the businesses that run themselves, is a steady income stream that requires little effort on your part. This model is popular because it requires minimal upfront investment and no warehousing.
A customer orders from you, you contact the supplier of the product (local businesses or larger companies), they ship it from their storage facility, and both you and the supplier make money!
How do you make money selling someone else’s products? You market the products, and for that, you get to add a profit margin to the original cost of each product. After a successful sale, you earn the difference between the original price and the price with the profit margin.
How it works:
- Set Up Your Online Store: Use platforms like Shopify or WooCommerce to set up an online store.
- Find Suppliers: Partner with suppliers who offer dropshipping services.
- Market Your Products: Promote your products through social media, SEO, or paid ads.
- Customer Places Order: When a customer buys a product, you send the order to your supplier.
- Supplier Ships the Product: The supplier ships the product directly to your customer, and you earn the difference between the retail price and the wholesale price.
Pros:
- Low overhead: No need for inventory or warehouse space.
- Flexible: You can run the business from anywhere.
Cons:
- Lower profit margins: Since you’re buying at wholesale prices and selling at retail, the markup can be minimal.
- Supplier reliability: The business depends on your suppliers, so ensure they can handle shipping and customer service effectively.
Beginner Tips:
- Use platforms like Shopify or WooCommerce to set up your online store.
- Work with trusted suppliers, as customer satisfaction is key to building a successful dropshipping business.
YouTube channels for content monetization
Nowadays, it's quite common for people of various age become YouTube creators. What's great about this kind of side hustle is that a YouTube channel requires as much effort as you're willing to put in.
In 2022, the average YouTuber made around $1,154 weekly and around $4,616 monthly. That’s more than some people make in a month at their full-time jobs!
Create video content, monetize it through ads, and earn money based on views. Successful channels generate income through ads, sponsorships, and memberships. By consistently creating valuable content, you can build a loyal audience that generates passive income as your videos attract more viewers over time.
Create an account, choose what videos you'll create, and start filming! From makeup tutorials to personal finance advice, all your interests are welcome on YouTube. The sooner you start, the sooner your YouTube channel will take off!
How it works:
- Create and Upload Content: Produce engaging, niche-specific videos that attract an audience.
- Monetize Your Channel: Once you reach 1,000 subscribers and 4,000 watch hours, you can apply for YouTube’s Partner Program to start earning ad revenue.
- Earn from Ads and Sponsorships: You’ll earn money when viewers watch ads on your videos or through brand sponsorships.
Pros:
- No inventory: You only need content and an internet connection.
- Wide reach: YouTube has a global audience, increasing your potential to go viral.
Cons:
- Time investment to create content: It can take time to build an audience and generate passive income.
- Ad revenue fluctuates: Your earnings from ads can vary depending on view counts and engagement.
Beginner Tips:
- Pick a niche you're passionate about (fitness, gaming, finance, cooking, etc.).
- Focus on high-quality, engaging content that’s both entertaining and informative. Use SEO strategies for titles and descriptions to ensure your videos are discoverable.
Selling digital products
A brick-and-mortar can be a successful business, but it doesn't run itself. If you want to own a store that brings you passive income, an online store for digital products is the right solution!
An online business requires minimal effort, most of which is to create your own website and perform upkeep to ensure it keeps running smoothly.
Trying to decide what to sell? Numerous online businesses offer digital products, ranging from music, and art, online courses, stock photos or videos, software, online plug-ins, video games, online books, and more. Digital products have a high profit margin and, once created, require minimal upkeep.
If you're passionate about digital commerce, online commerce businesses that run themselves with minimal effort will bring you passive income for years to come!
How it works:
- Create a Digital Product: Develop a product based on your expertise, such as an eBook, template, or course.
- Market and Sell: Use platforms like Gumroad or Etsy to sell your digital products.
Pros:
- Scalable: Digital products can be sold worldwide.
- Low overhead: No shipping, manufacturing, or storage fees.
Cons:
- Requires marketing: Without marketing, your products may remain undiscovered.
- Competitive: Many people sell digital products, so you need to stand out.
Beginner Tips:
- Use platforms like Gumroad, Etsy, or your own website to sell.
- Focus on creating high-quality, in-demand products like budgeting planners, photography presets, or educational materials.
Online courses
Are you a pro at knitting, cooking, or programming? Do you have a degree in Math, Biology, History, English, or any other subject? Put that knowledge to use by creating online courses!
Create an online course on platforms like Udemy, Teachable, or Skillshare. Once created, courses can sell passively to students worldwide, creating consistent income from new enrollments.
To get started, you'll need to identify a niche or topic you know and are passionate about.
After you've chosen a topic for your online course, you can begin to categorize your knowledge and develop engaging content such as video lectures, quizzes, and informative PDF files.
Break down complex concepts into easy-to-understand knowledge bites and share your wisdom through online courses!
How it works:
- Create Your Course: Develop a course based on your skills and expertise.
- Choose a Platform: Host your course on platforms like Teachable or Udemy, which provide tools to manage payments, content, and students.
- Market Your Course: Promote your course through social media, email marketing, or affiliate partnerships.
Pros:
- High earning potential: Especially if you target in-demand skills.
- Low overhead: After creation, the platform handles everything.
Cons:
- Time investment: Developing quality course content can be time-consuming.
- Initial effort: You’ll need to market your course to attract students.
Beginner Tips:
- Focus on topics you are passionate about and have expertise in.
- Invest time in creating engaging video lectures and quizzes that offer valuable learning experiences.
Selling stock photography
If you’re a photographer, selling stock photos can be a lucrative passive income stream. Stock photography websites like Shutterstock, Adobe Stock, and iStock allow photographers to upload high-quality images that people can purchase for various uses, from business presentations to social media and website content.
Once your images are uploaded and approved, you’ll earn royalties each time someone downloads one of your photos. This model works well for photographers because, once uploaded, the images can generate income repeatedly over time.
How it works:
- Create High-Quality Images: Invest time in capturing quality images that appeal to a wide range of industries and applications (e.g., business, lifestyle, nature).
- Upload to Stock Photography Platforms: Submit your photos to platforms like Shutterstock, where they’re made available for purchase. Each time someone downloads your photo, you earn a commission.
- Earn Royalties: The more your images are downloaded, the more money you make, often with little ongoing effort once the images are uploaded.
Pros:
- Passive once uploaded: Your photos continue to earn money long after they’re posted.
- Scalable: You can add as many images as you want to your portfolio.
Cons:
- Low individual royalties: Each download earns a small fee.
- High competition: There are thousands of photographers uploading their work.
Beginner Tips:
- Focus on versatile subjects like landscapes, business settings, and lifestyle images.
- Upload regularly to build a diverse portfolio and increase the chances of downloads.
App development
Creating a mobile app is a potentially high-reward business model that, once launched, can yield passive income through ads, in-app purchases, or subscription fees. The process involves developing an app that provides utility, entertainment, or solves a common problem for users.
With successful monetization strategies, such as integrating ad networks like AdMob or AppLovin, app developers can earn ongoing revenue as users engage with the app. Popular categories include gaming, fitness, productivity, and finance, where user engagement can be high.
How it works:
- Develop an App: Create an app that solves a problem or provides value to users. You can monetize it through ads or offer in-app purchases (like premium features or content).
- Launch the App: After developing your app, publish it on app stores such as Google Play or Apple’s App Store.
Pros:
- High earning potential: Especially with popular apps.
- Scalable: Once the app is built, it can reach a large audience.
Cons:
- Development costs: Creating a high-quality app can be expensive.
- Competition: The app market is crowded, so standing out is key.
Beginner Tips:
- Focus on a profitable niche like fitness or productivity.
- Use ad networks like AdMob or AppLovin to monetize your app.
AI blogging
AI blogging uses advanced content generation tools, such as Jasper or Copy.ai, to create articles, blog posts, and other written content automatically. This model is ideal for entrepreneurs who want to scale content production without spending hours writing or hiring a team of writers.
Once the blog is set up with AI-driven tools, you can monetize through ads, affiliate marketing, or product sales, generating a steady stream of passive income as your content attracts traffic.
How it works:
- Use AI to Create Content: Use tools like Jasper or Writesonic to generate blog posts or articles on topics of your choice. AI tools can help you with keyword research, topic generation, and even full content creation.
- Publish Content: Post the generated content on your website or blog, optimizing it for search engines (SEO) to drive organic traffic.
Pros:
- Scalable: AI tools allow for quick and consistent content creation.
- Minimal Ongoing Work: Once set up, AI handles most of the writing.
- Cost-Effective: No need to hire writers or content teams.
Cons:
- Quality Control: Content needs to be reviewed for accuracy and quality.
- Initial Setup: Setting up AI tools and optimizing for SEO takes time.
Beginner Tips:
- Use AI tools like Jasper or Copy.ai for quick content generation.
- Focus on SEO-friendly content to drive traffic.
- Monetize with affiliate links and ads for added revenue.
YouTube Automation Channels
With YouTube automation channels, you can create a steady stream of content without being involved in every upload. Automation tools allow you to schedule video releases, manage audience engagement, and optimize your channel for ad revenue.
This model is especially effective for channels with evergreen content, like tutorials, compilations, or reviews, where audience engagement continues long after each video is posted.
How it works:
- Create or Outsource Content: Either create the content yourself or outsource it.
- Automate Video Uploads: Use automation tools to schedule video uploads and optimize content.
- Monetize Your Channel: Earn passive income through ads, sponsorships, and affiliate marketing.
Pros:
- Minimal Upkeep: Once set up, the channel runs itself.
- Scalable: Automate more uploads as your channel grows.
- Recurring Income: Evergreen content generates ongoing revenue.
Cons:
- Initial Content Creation: You need to create or outsource videos.
- Subscriber Growth Takes Time: Building a loyal audience requires effort.
Beginner Tips:
- Pick a niche with consistent demand like tech or lifestyle content.
- Automate video posting with tools like TubeBuddy or Hootsuite.
- Focus on SEO for video titles, descriptions, and tags to boost discoverability.
- Monetize with ads and affiliate links for extra income.
Ideas for Offline Businesses That Run Themselves
Offline passive income businesses often require a higher initial investment but can yield consistent returns with relatively little ongoing maintenance. These businesses provide steady, reliable income streams and are perfect for those looking to generate revenue with minimal hands-on involvement.
Let’s take a closer look at some of the most popular offline businesses that can run themselves.
Vending Machines and ATMs
Owning a vending machine business or an ATM side hustle allows you to earn with minimal upkeep. These businesses thrive in high-traffic locations like schools, malls, airports, or corporate offices, where people are constantly looking for a quick snack or cash withdrawal. With the right setup, your vending machines or ATMs can generate a steady cash flow with little to no daily involvement.
Pros:
- Steady cash flow: Vending machine business provides regular, reliable income, especially in busy areas.
- Low maintenance: Once installed, vending machine business requires minimal upkeep beyond restocking or servicing the machines.
Cons:
- Upfront cost: Purchasing and installing vending machines or ATMs can be expensive.
- Periodic restocking: You’ll need to visit your machines to restock them regularly, depending on the location's traffic and demand.
Beginner Tips:
- Research popular locations: Look for high-traffic areas like malls, office buildings, schools, or gyms. The more people passing by, the better.
- Start small: Begin with a single machine to gauge the demand and gradually expand.
- Focus on high-margin items: Snacks, beverages, and phone accessories are great products for vending machines, offering a solid profit margin with high demand.
Laundromats
A laundromat is another excellent offline passive income business. These businesses typically require minimal staff, as customers operate the machines themselves. Laundromats can run 24/7, providing consistent income with little daily involvement. The convenience and necessity of clean clothes ensure steady customer traffic, making laundromats a reliable investment.
Pros:
- Reliable income: With no need for employees to run machines, laundromats can generate income round-the-clock.
- 24/7 operation: They can operate 24/7, providing access to customers at all hours, maximizing potential earnings.
Cons:
- High upfront cost: Initial investment for machines, property, and utilities can be expensive.
- Occasional repairs: Machines require occasional maintenance and repairs to ensure they’re working properly.
Beginner Tips:
- Location is key: Choose a location with high foot traffic, such as near residential areas, universities, or apartment complexes.
- Automated payment systems: Use cashless or automated payment options to reduce the need for staff and ensure smooth operations.
- Offer extra services: Vending machines for detergent, snacks, or even dry cleaning services can generate additional income.
Self-service car wash
Automated car washes allow customers to wash their vehicles without the need for staff. This car wash business is ideal for generating passive income, as it often operates with minimal intervention, especially when automated payment systems are in place. Self-service car washes can be a great investment in busy locations where car ownership is high.
Pros:
- High traffic potential: Self-service car wash attracts repeat customers, especially in areas with high vehicle ownership.
- Minimal staffing: Once set up, car wash business needs little to no staff involvement.
Cons:
- Maintenance costs: Regular cleaning and maintenance of machines are required to ensure they function properly.
- Water costs: Depending on the location, the water bill can be substantial.
Beginner Tips:
- Choose busy locations: Locations near highways, malls, or busy residential areas are ideal for maximizing traffic.
- Install automated payment systems: Offer cashless payment options and consider eco-friendly water recycling to minimize operational costs.
Storage units
Storage units provide rental space for personal and business storage. With the rise of e-commerce and moving services, the demand for storage is increasing. Automated systems allow renters to access units independently, and with minimal maintenance, this business can generate consistent, long-term income.
Pros:
- Consistent income: Long-term tenants provide steady cash flow, with the ability to sign multi-year rental contracts.
- Low involvement: Once the system is set up and automated, the business operates with minimal management.
Cons:
- High upfront cost: Purchasing or leasing land and building the storage units requires significant investment.
- Maintenance and security: Although minimal, regular maintenance and security are necessary to ensure the safety of the property.
Beginner Tips:
- Choose a prime location: Ensure the property is in a high-demand area, such as near major highways or residential neighborhoods.
- Implement online payment systems: Enable online payments for convenience and to reduce in-person management requirements.
Parking lots
Owning parking spaces, especially in busy areas like city centers or event venues, can be an incredibly lucrative investment. Automated ticketing and payment systems reduce the need for on-site staff, allowing you to collect parking fees passively.
Pros:
- Minimal upkeep: After the initial setup, parking lots require very little involvement.
- Steady revenue: With high demand for parking in urban areas, this business provides reliable, consistent income.
Cons:
- Limited locations: Parking lot investments require choosing high-demand areas, such as near office buildings, stadiums, or airports.
- Vandalism or damage: Parking lots may require occasional maintenance and repairs.
Beginner Tips:
- Focus on prime locations: Look for areas with high foot traffic and consistent demand, such as near busy commercial districts or transportation hubs.
- Offer monthly subscriptions: Consider offering monthly parking passes to ensure consistent income from regular customers.
Rental properties
Rental properties are one of the most well-established passive income businesses. Renting residential or commercial properties provides a steady income stream through rent payments. Property management services can help automate much of the day-to-day operations, making it a relatively hands-off investment.
Pros:
- Reliable income: Monthly rent payments from tenants provide consistent, predictable cash flow.
- Asset appreciation: Over time, property values may increase, providing capital gains in addition to rental income.
Cons:
- High upfront investment: Buying properties requires significant capital upfront.
- Maintenance and tenant management: Although property management services can help, regular maintenance and managing tenants may still require time and resources.
Beginner Tips:
- Location, location, location: Choose properties in areas with high demand, such as near universities, businesses, or tourist attractions.
- Consider property management: Use property management companies to handle tenant relations, maintenance, and rent collection for a more hands-off approach.
Party rentals
Renting out items for parties and events—such as tents, chairs, tables, and bounce houses—is another great self-running business opportunity. Once the equipment is purchased, the business requires minimal effort to operate, as customers handle most of the setup and return.
Pros:
- Seasonal demand: Event-based businesses can generate significant income during peak seasons or around holidays.
- Minimal effort: After the initial purchase of items, the business requires little to no ongoing effort.
Cons:
- Storage and logistics: Storing large party rental equipment can be challenging, and you’ll need to coordinate delivery or pickup.
- Seasonality: Business may slow down during off-peak seasons.
Beginner Tips:
- Start with popular items: Invest in high-demand rental equipment, like tables, chairs, and tents.
- Focus on local events: Market your services to local event planners, schools, and community centers for more frequent rentals.
Print-on-demand shops
Print-on-demand is a business model where products like T-shirts, mugs, and posters are sold online without holding inventory. You only print and ship items as they are sold, reducing upfront costs and inventory management.
Pros:
- No inventory management: You don’t have to store or ship products, making it a low-maintenance business model.
- Wide market potential: You can sell products to a global audience.
Cons:
- Low-profit margins: Due to production costs, profit margins can be slim, especially when factoring in marketing and platform fees.
- Reliant on marketing: Success in print-on-demand largely depends on your ability to drive traffic to your store.
Beginner Tips:
- Use platforms like Shopify or Etsy: These platforms allow you to set up an online store easily and integrate with print-on-demand services like Printful or Printify.
- Focus on niche designs: Stand out by offering unique and trendy designs to attract a loyal customer base.
Start Your Own Business Today
Ready to take control of your financial future? Starting a self-running business is easier than ever, thanks to online and offline opportunities. Explore various options, assess your skills, and start small. You can even pair your new business with passive income apps like Honeygain to increase your earnings.
Whether you choose any of the suggested online businesses, vending machines business, advertising a company on your car, or other businesses that run themselves, this is your chance to collect money without much effort!
While your business kicks off, we invite you to make some extra cash with Honeygain – the app that'll pay you for sharing your internet connection. You don't even need to get off your couch, simply generate passive income by sharing your internet bandwidth.
Here's how it works – you download Honeygain and create an account. You start sharing your internet connection. Trusted researchers and businesses use your data for important data-driven projects and say thank you by paying you money!
FAQ
Are there risks associated with businesses that run themselves?
Yes, like any business, there are risks such as upfront costs and market demand fluctuations.
How much initial investment is required for these business models?
It varies widely. Online businesses may have low startup costs, while offline businesses, like laundromats, require higher upfront investments.
Can these businesses be operated from anywhere?
Many online businesses can be run remotely, but offline businesses may require some local oversight or outsourcing.
How do I ensure consistent income from these businesses?
Choose business models with steady demand, automate where possible, and monitor trends in your chosen industry.
Are there legal considerations when setting up these businesses?
Yes, ensure you’re compliant with local regulations, tax requirements, and any necessary permits for your business type.
