Top Passive Income Ideas for Indians in 2019 – 20
Passive income or positive inward cashflow without actively participating in the money generation process is a dream of every person. There are hundreds of articles published in the topic, but I will only focus on the ideas which are practical in the context of India (and in the context of other Asian countries like Pakistan, Bangladesh, Nepal and similar).
India, unlike other countries like the US and the United Kingdom, differs in terms of opportunities we have here to build wealth passively.
Dividends, equity and stocks are some of the favourite ways to make money, but there is a huge risk associated with all of them. Also, it needs a deep understanding of the market, and you need to keep yourself updated with the price and associated factors.
As there are several articles already published about building a passive income with the stock market in 2019, I am skipping this entirely.
But I would suggest you have a look at this book (Intelligent Investor by ) recommended by the legendary investor Warren Buffet. This evergreen book discusses the very first principles one needs to know before jumping into the investment world.
Here I will discuss the top 5 ideas to build your passive income in 2019, 2020 or even in the years later, as I will explain the subtle principles which can not really change with time.
I have intentionally skipped some great ideas to make money by “building a babysitting service” or “car wash” as they are not really useful in India.
Let’s jump in.
Top 5 Ideas for Building Passive Income in Your Country
India is a rapidly changing market, and smart individuals are aware of it. There are many ideas people living in cities like Bengaluru and Delhi are using to make handsome money from the comfort of their homes.
The Evergreen Franchise Business for Additional Income
I don’t know why people don’t start a franchise business to generate residual income. This business has many advantages over other non-traditional ideas.
In a franchise business, you don’t need to spend your money and time on initial brand recognition campaigns. Further, the companies provide excellent support for their newly opened center. They will guide you at every step. You don’t need to experiment with the designs of your shop, marketing, promotions and everything goes as per the previously well-tested formula.
There are a few disadvantages of this way of additional income. The major one is the significant investment cost associated with the business. If you are thinking of an educational venture, there is not much testing you can do with the system, and everything needs to be done according to the board.
What to keep in mind while opening a franchise
In the end, it is not about the shop but about the surroundings. Coffee shops, Schools, Hubs, Parlors and any other business needs a good mass of customers who should be repetitively turning to you.
- Financial Backup Plan:
It will take a significant amount of money to set up a good franchise at the “right location“. You will need to properly research and create a financial backup plan before you jump into the business. It will take a while to reach even the break-even.
- Low-cost labour
Franchise often need to hire people to run daily activities. You need to properly research about cost and count this in your variable expenses. If your franchise can handle, you can use Internshala and LetsIntern to hire students for your franchise.
Renting Agriculture Lands to a Farmer
Renting your farms is another idea which can pay you handsomely without your direct involvement. Agriculture lands are much cheaper than the residential properties, and you don’t need much documentation over them. There are lacs of farmers in India, and it is not in fact hard to find one who can grow crops and divide the profit.
Over the years, agriculture rules have become much more straightforward, and the demand for farming lands and production is increasing. Renting farming lands to someone is another good way of making passive income.
Keep in mind while renting your farm
- Contract and Trust
People end up in court if contracts are not written properly. You may need a 100 Rupee stamp and a good notary to write a contract between you and the tenant.
- Production and Distribution
It is good to distribute the production between you and the tenant fifty-fifty. But there are multiple ways to decide. Also, don’t forget to keep small things in mind like electricity bills, water cost and other overheads and stay clear while building the contract.
Offline Affiliate Marketing in India
Most people are aware of online affiliate marketing to generate passive income. But you can use the same model for your offline business and earn for a lifetime.
For example, institutes who are struggling for admissions, good clinics and specialists who need more patients can welcome your such offers. Just don’t get greedy in this case as it is a big responsibility and you don’t want to end up harming someone. But you will be respected everywhere if you can do it smartly and with honesty.
This idea can work with shops, malls, hospitals, institutes and in real-estate.
Keep in mind while becoming an Affiliate
- The reputation of the firm
You are like the ambassador of the firm. If the firm has a bad reputation and it is involved in a controversial activity, you will be the first person people will come after. So be careful in selecting the firm for making good money.
- Growth opportunities
You don’t want to end up promoting services in your locality. You can start from there but the good idea is to work with someone who is scalable enough.
Create Passive Income Online
This is a huge segment in itself as there are hundreds of ways to make money online for a long period. But to make it simple, you can divide it into two different segments.
First, building your products and selling them online. Make a good product (physical or digital) and sell it through the online marketplaces like Amazon, Flipkart or SnapDeal.
You can even build your own website with Shopify to make an e-commerce store and sell your product.
The other way is to promote someone else’s product. Through Google Adsense, Affiliate Marketing or promotional content, you can earn amazing passive money. To start online income some skills are necessary if you can’t invest some money, or otherwise, you can hire a good digital marketing company which can help you set up your digital money-machine infrastructure.
Keep in mind while making money online
- Choose the “right product” to promote
There can be hundreds of hours of training given on this topic as this is the first and most important part of the process.
You don’t want to end up promoting something no one wants to buy. Also, the audience you are trying to select must be capable enough to pay you for the products.
- Skills, skills, skills
Making money online is hard, and there is a big competition. You need to acquire essential skills like copywriting, website design and marketing (SEO, SMM, PPC etc) to stay in the game.
Again, it will take some time to develop these skills and earn a profit, so stay patient and keep doing to good work.
Paid Software Development for Additional Income
India is an IT powerhouse for even the top companies of the world. Your knowledge of programming and application development can open unlimited ways to generate passive income while living in India.
Even if you don’t know how to make a complete software you can learn it online and start building. You can make it open-source (used by anyone) and ask for a donation like Firefox (browser) or ask of subscription fees from the users.
You can even make WordPress themes, Plugins and other similar software which people are always ready to buy online. There are thousands of people who use their own websites or online marketplaces to sell their digital products.
Keep in mind while building an application to make money
- The application needs good support at the backend
The costumer often pays more for good support. It is essential if you are building software and thinking to make money from it. So, an experienced team of programs and designers is expected in this case.
- Learn marketing (or hire a good company for you)
Marketing is essential for any product. A good product also requires a good promotion to reach the right audience. As software is a digital product, in this case learning digital marketing can be of great use. This will help you to scale up your business and bring more sales.
The Final Verdict: Which Idea Will Choose You
As I have written several times, it’s not you who choose the work. Work chooses you. Before becoming a Side Hustle Coach, I was running for job interviews. I even tried to build two startups which miserably failed even before starting up properly.
Fortunately, I met my mentor who helped me to build a predictable source of passive income which is rare in many cases.
To find which passive income ideas will work for you, go for the market research as per the products you are planning to promote and analyze your strengths and interests.