Top 10+ Best Online Passive Income Business Investment ideas In 2016


What are the best sources of residual income? What are the best business to start for passive income? What are the best passive income investment ideas? If you need an answer to any of the questions above, then I advice you read on.
There are two types of income:
  • Active income or Earned income
  • Passive income or Residual income
Active income is the income you earn by working on a job for an employer or by rendering your services in return for proportionate pay. Generally, you start earning money as soon as you start being actively involved, and you lose your income as soon as you stop working. Active income comes in the form of salary, wages, gratuity and pay-offs, etc.
Passive income, on the other hand, is the income you earn from providing value to people through automated systems that need no interference from your end; once you have invested some effort in putting them in place.

With a passive income earner, you will continue to make money even when you are sleeping or on vacation. Your active participation isn’t involved. Passive income comes in the form of dividend, bonus, capital appreciation, rental income, royalties, etc.
So in this article, I will be revealing ten profitable passive income ideas that you can start right now. But before I go to that, I would like to remind you that earning passive income takes a good amount of time, effort and even money.
And the rewards don’t come overnight. Anyone who is now making 6 – 7 figures annually from passive income streams started out small and then started to grow that residual income over time. Without wasting time, below are the ten profitable passive income ideas I have for you.

   Passive Income investment ideas

1. Stock investing

Many people who are now financially independent have achieved that by buying stocks from profitable businesses, which would increase steadily over time until it starts to fetch them huge returns in annual dividends. On the average, the value of stocks appreciates by 15% per year.
This means if you were to invest $100,000 and keep re-investing your annual profits, you would become a millionaire in 16 years time. Stock investing requires financial savvy, smartness and thorough analysis; as bad decisions will make you lose on your investments rather than make profits.
Real estate is one of the easiest ways to earn residual income. You can buy a piece of land, leave it for few years while its value appreciates and then sell it at a much higher price. Another option is increase the value of the land by building a house or office building and renting it out (this guarantees monthly or annual income for as long as the property remains yours).
However, the downside of real estate is that it requires huge capital. But if you have enough funds to invest, real estate is a very lucrative passive income business. If you have vacant rooms in your home, why not rent it out for some monthly or annual profit? That’s real estate, too.
3. Write a book or e-book
Everyone has at least one book in them. If you can discover that topic, interest, or knowledge and can express it in a book or eBook form, then you will have a passive income stream right under your belt.
The key lies in writing something that solves people’s problems in the best way possible or by entertaining them with your creativity (a novel or play). Once you are done with you book, you can publish it on sites like Amazon, Kindle and Lulu.com and start making money.
If photography is your passion, then you can turn it into a source of passive income. Many websites on the internet need quality photos to make their content more appealing, causing a huge demand for stock photos. You can receive paid royalties on your photos each time someone chooses to use them on his or her website.
If you have a really good idea for a mobile application that would solve people’s problems or a game that people would really enjoy, then you might develop it and make good money from it. The mobile app and game industry is becoming more lucrative, thanks to the exponentially increasing number of mobile device users. Games like Angry Birdsand apps like WhatsApp are now worth billions of dollars. You too can have a money-spinner under your belt if you give it a shot.
6. Online courses
If you are an expert in a particular field, you can set up an online course aimed at tutoring beginners. For example, if you are a professional writer or editor, then you can run an online training course for aspiring writers and editors. Or if you have successfully lost weight using certain techniques, you can offer your tips as an online weight loss course. If you offer real value, you will attract lots of “students” and earn huge profits in the long term.
If you have some knowledge, skill, or interest that you would like to share with others, then consider starting a blog. As a blog owner, it is important you publish quality, unique, and relevant information consistently. This will help you build a large audience of loyal readers over time.
When you start generating huge traffic on a consistent basis, you can monetize your blog with contextual ads and by selling ad space. This will continue to fetch you profits in the short and long term.
8. Affiliate marketing
Many internet marketers are making money online by setting up affiliate niche websites and optimizing them for search engines.  You too can set one up. Each time someone buys through your affiliate links, you will make a commission from the sale. Or better still; go for residual affiliate commission especially from web hosting companies. This way, you can continue to make money for years.
9. Vlogging (Videos)
People are now making money by publishing entertaining or problem-solving videos online. You too can make money by simply uploading a video and getting paid per view.
10. Shared revenue sites
If you are a good writer, you can make huge profits in the form of residual income by publishing resourceful articles on shared revenue sites such as Squidoo and Hubpages. Your article will be monetized with contextual links, and you can include your affiliate links, too. Each time a reader clicks on the contextual ads or buys a product through your affiliate links, you will make money. And this can continue for a very long time.

Other Sources of Passive Income are:

  • Royalties from oil bloc leases
  • Online membership subscription websites
  • Web hosting websites
  • Insurance 

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