Do you dream of earning sufficient income with minimal effort? Something like “earning money while sleeping” sounds truly appealing.
What a dream it would be to be financially independent and still have ample time to do things you love and enjoy the most of your life. That dream is not entirely impossible and is even more achievable than you initially thought.
As long as you are committed and dedicated enough to see through it. Passive income requires initial efforts - money, skill, and time. However, you get cut off from work in the long run and could be earning more and more over time.
Definition
In simple terms, passive income is earning money through making minimal efforts to any undertaking. It requires minimum day-to-day activity and maintenance while enjoying an adequate cash inflow. Passive income differs strikingly from full-time jobs and side hustles that necessitate you to exert much work.
Passive income provides you with time. Time is precious and what we seemingly always lack due to busy schedules. Imagine getting the opportunity to enjoy as much time as you want.
Of course, there is no shortcut or immediate success to anything beneficial in the long run. You have to put in initial work - investing time, money, and skills.
To aid you with picking the right one, here is a list of proven passive income ideas.
15 Passive Income Ideas in India
1. Franchise in India
There are more than two models for franchises in India. However, the most pervasive models are the FOCO (Franchise Owned Company Operated) and FOFO (Franchise Owned Franchise Operated).
FOCO is the ideal model if you are looking for a passive income. Simply put, you invest in your chosen franchise in India, and the company will take care of the business operations.
People are now more drawn into franchising. It is a perfect passive income idea for people who want to yield positive outcomes and rewarding cash inflow.
Franchising is a business strategy for companies to boost their local footprint. In terms of franchises in India, they are global with a great economic boost due to franchising.
Like other ventures, there is a lot to learn about franchising, but it is not something entrepreneurs worry about. You will be constantly guided by the franchisor and will conduct training and assessment if necessary.
The fact that franchise in India is booming rapidly, there are countless franchise business prospects offered to you. The most profitable franchise sectors in India are health and wellness, retail, and foodservice.
2. eCommerce
E-commerce is one of the most popular and fastest ways to get passive income. Nowadays, selling and buying transactions are more convenient online, and goods are sold in just a short time.
The Indian online market is rapidly growing and has reached a billion US dollars in revenue. Some of the most in-demand products online in India are apparel (constituting 35% of the overall online sales revenue), mobile phones, stationery, jewelry, beauty products, etc. You can refer to these types of products to generate sales for your eCommerce business.
3. Savings Account
Saving culture in India should be promoted. Having a savings account has the advantage of potential passive income. When one deposits money in a bank account, the rupees could grow by investments and interests.
You can earn while only keeping some of your extra coins and bills on your monthly budget. Kotak Mahindra, SBI, ICICI, Citibank, and other Indian banks are open to Savings Accounts with higher rates, especially for beginners that are freshly starting their investment portfolios.
Kotak Mahidra offers the highest interest rate, with 4% per annum, for domestic savings accounts. But Yes Bank provides the same to all types of a savings account with at least Rs 1 lakh balance.
4. Flipping Domains
Do you know how cryptocurrency and stock trading works? Domain Flipping practically does the same thing. This is a legal business in India unless you intend to buy domains already trademarked to companies.
You buy a domain name as unique as possible and sell it at a higher price when the perfect opportunity comes. Cheaper domains could help you gain more profit with less cost. Domain flippers are comfortably earning thousands of dollars, high interest, or even millions. The most expensive yet was valued at $872 million.
5. Affiliate Marketing
Signing up for affiliate programs and groups in India is a hotspot choice for passive income. Companies need advertisers and publishers to market their products and services better.
All you have to do is buy a product, generate traffic for promoting it, and the product company gets you covered with your commission or incentive.
The top affiliate programs and networks in India are Flipkart Affiliate, Amazon Associates, commission, etc.
6. Stock Trading
India has two main stock trade markets: Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Both make a great deal if you wish to have passive income through stock trading.
For starters, all you have to do is learn the tactics to analyze historical data, charts, and good timing for buying or selling stocks. Just find a stockbroker, open your trading account, add some money, and you can start your stock trading ventures. Choose your trades wisely to profit best.
7. Digital marketing
Indian technology and presence in the digital space are becoming factors for higher digital marketing demands.
India has about 700 million internet consumers, and online marketing in India is prominent. You can choose to have a digital marketing career and create passive income from it. Under this is content marketing, SEO, pay per clicks, email marketing, and so on. It is advertising executed on digital platforms - search engines, social media, websites, etc.
You can work with ad agencies that fit your interest (ex. Adsyndicate, WatConsult), creatively honing your up-to-date advertising skills while having some free time.
8. Digital Products and Services
The Internet offers a variety of potential passive income ideas. This can range from lead generation websites, blogging, online courses, YouTube videos, etc. Some are even free from the initial investment fee. You only need to be equipped with your knowledge, skill, and time—worth a try.
9. Dropshipping
Dropshipping is becoming huge in India and is highly possible to be a significant development for eCommerce.
You will need an online store where people can put their orders in, and you forward the customer information and order details to a manufacturer. Preferably, your store must focus on certain products so you can manage them more easily.
The Ministry of Commerce and Industry in India claims that their eCommerce market advances with more than 51.0% annual growth rate and will be valued at $200 billion by 2026.
10. Niche Sites
Niche sites can be very profitable if you follow the correct methods and ways to build traffic to increase your revenue. You can focus on a specific niche topic and expand from google ads, affiliate marketing, eCommerce, and others to generate more income streams.
11. Commercial Rental Properties
Commercial property investment is of great complexity and needs numerous considerations. It is reliant on the dynamics of the market. It is user-driven and easily influenced by the cyclical nature of real estate and the economy. But its lease periods are longer and have more returns compared to others.
12. Rent out your home
Do you have a spare or unused room? Then renting it out is more beneficial. A new room can give you passive income while barely doing anything or exerting much effort. Airbnb is a popular website where thousands of people are looking for a room to stay in every day.
13. Real Estate
Real Estate in India is constantly growing, and owning properties gives you a ticket to high passive income.
The price of owning a property in India is economical. You can afford many properties you need to start up your real estate selling. India's hot spot for real estate would be Bengaluru and Pune. Buy in these places and the IT-centered cities for certain big amounts of rupees or dollars.
14. Dividend Stocks
This method is one of the easiest ways to earn passive income. Individuals invest in a public company, and a fraction of its profits return to the investor as dividends. You pick whether to reinvest to increase your shares or keep the bonuses.
Don’t fall prey to companies offering very generous dividend payout ratios. It means they are not reserving it for the company’s growth and expansion. Always look for companies with a steady payout ratio, a gradual increase of dividends, and consistent dividend yield - for example, Hindustan Petroleum, Indian Oil Corp, Power Grid, etc.
15. Peer to Peer Lending
P2P Lending is popular in India, as this type of loan process has simple applications, lower interest rates, and quick lending.
This is mostly available online, and loaners could quickly get in touch with willing investors they can take loans from. Businesses like Faircent, OMLP2P, and Lendbox are some of those that became successful by P2P lending in India.
If you want to get passive income by only lending your money and putting high reasonable rates, try to be a peer-to-peer lending investor: start your group or join one.
Most Recommended Passive Income: Franchise in India
Given all of the passive income ideas, we must rank them up to see which is the best. We highly recommend venturing into a franchise in India. It is lucrative, effective, secured, does not require many skills, and an opportunity to learn more from the franchisor.
Anyone can venture into a franchise in India. You do not have to be an expert. You just need to know enough to get around. The franchisors with commendable experience and knowledge about the business will assist and guide you all the way.
You do not even have to spend a fortune to get a franchise in India. Some franchises like Inxpress require only INR 5 lakhs to be able to operate the delivery services. So long as you find the right franchisor, you can partner with.
What's more, franchisemarket.in is here to help you find reliable and credible franchisors. Franchising in India is not necessarily difficult as long as you find the right people to trust.
Finding franchises in India is now easy with steps, tips, guides, and everything you want to see about franchising here in franchisemarket.in.
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