Passive Residual Income Business Ideas to Make Money from Home

Types of Passive and Residual Income Business Models

Passive and Residual Income is a great way to diverisity your income stream. What is Passive Income? Passive Income is a way to make money on an ongoing basis from one-time efforts (with very little ongoing work). Many people start off using passive income as a means to supplement their income. As they learn what types of passive income are easiest to manage and the most profitable, their passive income may increase over time, providing a reliable source of residual income. Once you have implemented one passive income business model, it becomes easier to find other profitable passive income opportunities because you have a better knowledge of what type of business model works for you and your lifestyle. Eventually you might be able to produce a full-time income from home with little ongoing work.

I've divided this article into two main types of Passive Income:

  • How to Make Passive Income Online from Home: Passive income from online internet efforts including writing online articles in place like HubPages (like this article) and affiliate marketing through big affiliate programs like Amazon and eBay.
  • Off-line Residual Income Business Models managed from Home: These are off-line ideas, but can still be managed from home. These include some more complicated initial start up costs and knowledge (which can always be hired out to a company who specializes in each area). Examples are owning Vending Machines, Kiddie Rides, Coin-Operated Machines, Real Estate Investments, Financial Instruments like Stocks, Bonds, Mutual Funds. Also included are how to be a Business Owner in passive businesess like self-service car washes, laundry mats, and managing a service business.

Make Money Online from Home

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Passive Income Online: Home Business Income

The following types of passive income opportunities provide work from home online using your computer. The only costs involved in these types of passive income revenue streams are your computer and internet expenses, and of course, the value of your time.

  • Writing Articles Online: Start right here on Hubpages. I also recommend Infobarrel. These article websites share ad revenue with the article authors, allowing authors to contribute a one-time effort of writing a quality article, and earning passive income online month after month as their article is read. Hubpages will also allow you to add a few affiliate products to your webpage.
  • Affiliate Marketing: Earn commissions when you send customers to other companies websites. Sometimes these are called Refer-a-friend programs. This can be done thru simple links on your email, Facebook, or Twitter pages. However, it's more profitable when product links are added to your own website or blog. When someone clicks on a product you have listed in your article, you will earn a commission.

Create Passive Income by Writing Articles for Revenue Sharing Websites

The most passive way to make money online is to write quality articles for websites that are Google Adsense revenue sharing sites. This article you are reading right now is written on Hubpages, a revenue sharing website.

What is a Revenue Sharing Website?

A revenue sharing website is a website that takes generates advertising revenue on their website through the use of Google Adsense, Chitika Ads, or other ad placements. The revenue earned from ads is shared with the authors who wrote the articles on the website. Revenue Sharing Websites are a great source of passive income because you spend time upfront to research and write a quality article. If it is a good article, many people searching the internet for your topic will find your article and read it. Readers may also click on the advertisements on your pages, which pays you a small amount of money per click, thereby earning you a source of online passive income. Your article remains on the website, earning you residual passive income for the days, months, and years to follow.

Please follow my articles at the top right hand side of the page, as I will be coming back to write another article on: How to write quality articles for Hubpages, InfoBarrel, and Squidoo. (when article is complete I will place a link here)


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You can also earn passive income by writing articles for the ad revenue sharing website InfoBarrel
You can also earn passive income by writing articles for the ad revenue sharing website InfoBarrel | Source

Best Revenue Sharing Websites

The three revenue sharing websites I recommend are:

All three websites share the ad revenue generated on their pages with their article authors, however each website has a little bit different way they divide up the online passive income money that is earned.

Hubpages splits its ad revenue impressions: 60% author : 40% Hubpage

60% of the time an article is viewed, the ads on the page from Google Adsense are displaying the tracking code of the author of the article. The other 40% of the pageviews will have Google Adsense ads displaying the tracking code of Hubpages. Whether or not someone actually clicks on an ad on the page while reading your article, thereby generating some Adsense revenue, is not guaranteed. In essence, out of every 100 pageviews of your article, you have the possibility to earn passive income through Adsense ads 60 times.

InfoBarrel splits its ad revenue impressions: 75% author: 25% InfoBarrel

75% of the time ads are displayed, the author of the article is entitled to any ad revenue earned. 25% of the time the ad impressions are tracked to InfoBarrel.

For a newbie, this is the easiest way to start out, because you don't have to sign up for any other programs like Google Adsense, Amazon or Ebay affiliates (like you do for Hubpages and Infobarrel)

Note: any sales you make on your Squidoo page from affiliate programs like Amazon or eBay are entirely yours to keep. No splitting with Squidoo or any other pages.

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Making Money by Writing on Hubpages

Hubpages (this article is written on Hubpages) is a free writing platform where you can write original content articles and you'll earn a 60% share of the Google Adsense impressions that appear on your "Hubs" you write. The other 40% of the impressions go to Hubpages to pay the bills. Those are only "ad impressions". You actually make money when someone clicks on one of those ads. If the ad they click on is one of your share 60% of impressions, you'll earn the AdSense $$ from that click.

Hubpages also runs their own in house ad program, which you must sign up for separately in your account earnings settings. The Hubpages Ad Program pays you based on impressions, and therefore no clicks on ads are needed, just traffic to your "Hubs" so that the Hubpages Ad are shown. This also is a 60% / 40% split, with you getting 60% of the impressions.

Join Hubpages HERE and start earning Google Adsense Revenue.

How Do You Make Money on Hubpages?

This is a screenshot of this actual page you are reading here on Hubpages. I've circled in red the Google Adsense Ads that are showing at the top of the page. My Google Adsense ID is used on 60% of the impressions. If someone clicks an ad I make $.
This is a screenshot of this actual page you are reading here on Hubpages. I've circled in red the Google Adsense Ads that are showing at the top of the page. My Google Adsense ID is used on 60% of the impressions. If someone clicks an ad I make $. | Source

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How to make passive income from Squidoo pages

It seems pretty easy to get pages in the top 100,000 Squidoo rank (thereby earning income) if you write quality articles for topics that generate traffic.

Squidoo page ranks are determined by many factors including:

  • page traffic
  • user partipation (comments, polls)
  • how many people like or favorite your page
  • how many clickouts form your page
  • how many affiliate sale you make from Amazon, ebay, and other affiliate programs they offer.

For a newbie, this is the easiest way to start out earning passive income online, because you don't have to sign up for any other programs like Google Adsense, Amazon or Ebay affiliates (like you do for Hubpages and Infobarrel) Everything goes through Squidoo; they collect the money then split it with you.

Note: any sales you make on your Squidoo page from affiliate programs like Amazon or eBay are entirely yours to keep. No splitting with Squidoo or any other pages.

Affiliate Residual Income: Making Residual Income from Affiliate Marketing

Affiliate Marketing provides another source of passive income.

Wikipedia defines affiliate marketing as:

"a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's own marketing efforts"

What that means to you: Companies will pay you a small commission fee to refer customers to them. You are normally paid a commission based on the sale of a product (or a referral of a person to a membership based program).

For example: I am an affiliate for Amazon.com. When someone clicks on one of my Amazon links and they purchase an item from Amazon I get a commission on that sale (ranging from 4-8% of the purchase price NOT including any shipping handling or sales tax). However, the buyer must make a purchase on Amazon within 24hours of when my link took them to Amazon. (other programs have longer timeframes) The Amazon links on this page are all affiliate links. They are embedded with a special code from Amazon that tracks who sent the customer to Amazon (ME).

Whether you realized it or not, almost all the ads and links you see on the internet are affiliate ads in one form or another. Someone in the affiliate marketing business placed that ad, button, or banner. Even though someone is receiving a commission off the sale of the product, the customer pays the same retail price as if they had navigated to the store's homepage themselves. In fact, the customer pays the same retail price whether they arrived at Amazon.com from clicking on a link, banner, or button, or whether they typed www.Amazon.com directly into their brower.

Some big name websites that offer affiliate programs include Amazon, eBay, Walmart, Target, and thousands more. If you have a favorite store in which you are familiar with their products, you may want to find out more information about their affiliate programs.

There are entire affiliate marketing networks that make it easy to sign up for multiple affiliate marketing programs at once. They manage the sign up process with the merchants, provide you with the links, banners, and data feeds you'll need to promote products, give you statistics on your traffic, and also pay you your commission money. Some of the most popular and largest affiliate marketing networks are:

  • Google Partner Network

Tip for Beginners, I highly recommend sticking to using the free pages at Squidoo and Hubpages, and writing quality articles and including a few affiliate product links. If you are already managing a website or blog, then signing up for individual affiliate programs may benefit you.

The challenge with affiliate marketing in using it as a passive income business, is finding merchants who offer the best product links through feeds that automatically update based on the store's current sales, deals, and inventory. By using dynamic product feeds that automatically update themselves you can set up the webpage once and the products will automatically update as the stores inventory changes.Both Squidoo and Hubpages allow you to do this by inputting keywords in the Amazon and eBay sections instead of specific product id numbers (which you can do as well). This really lets you set it and forget it. You should aim to spend a lot of time upfront making a quality page and you will see passive income from product sales month after month.

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Money Money Money
Money Money Money | Source

Residual Income Business Models

The following types of Residual Income range from being very simple to very complex. These off-line ways to earn passive income require money to purchase the assets that will earn you income. The lowest cost is probably $100 for a small bulk candy dispenser. But with the initial cost comes the opportunity to earn lots of money in the future.

A person trying to make money with these passive income ideas can choose their level of involvement in these business models. They can run everything themselves, which negates the passive income approach, or they can hire the work out to someone else.

Earn Residual Passive Income by owning these money makers:

  • Vending Machines (pay an independent contractor to stock them and collect money)
  • Kiddie Rides
  • Other Coin Operated Machines
  • Business Owner (hands off - hire a good manager to run it)
  • Real Estate Property Owner (hire a management company to manage it)
  • Design cell phone apps

Create Passive Income with Vending Machines
Create Passive Income with Vending Machines | Source

Residual Income from Vending Machines

Vending Machines offer another source of residual and passive income. Everywhere you go, you'll find soda machines, chip and candy vending machines, small 25 cent candy dispensers (bulk candy machines), toy dispensers, and even ice cream/frozen treat vending machines.

Normally, vending machines are placed at a business and the vending machine income is split between the vending machine owner and the business owner where the machine is placed. If you service the machines yourself, you will have more income but also more work. For the most "passive" income, you can also hire a contract worker to service the vending route for you. Hiring someone to service the vending machine route for you makes this passive income business more desirable for those looking to make money without doing any work.

The key to making money with vending machines is finding a profitable location, location, location of your vending machine placement. You can hire a vending machine location company to find profitable vending locations and even write the contract with the business owner.

Use Coin Operated Kiddie Rides to make passive income
Use Coin Operated Kiddie Rides to make passive income | Source

Kiddie Rides provide Passive Income

Along the same lines as vending machines, Kiddies Rides are another coin operated machine that provides a source of residual passive income. You seen these rides, normally costing $0.50-$0.75 to ride, outside Walmart, grocery stores, dollar stores, and even in local parks when the weather is warm.

Pros: Minimal work: you only need to come collect the money

Cons: smaller market than vending machines, may require more repair of machine than a vending machine due to more working parts.

More Passive Income & Residual Income Sources

  • Trademarks, Patents, and Royalties: Create a product, write a book, develop an idea worthy of a trademark, patent, or royalty.
  • Real Estate Investment Property Owner: Buy Land, a Residential Home or Commercial Building that can be rented, share cropped, or held for income purposes.
  • Develop an iPhone, Blackberry, or Droid app: You create the app idea, then hire developers to make the app for you
  • Stocks, Bonds, Mutual Funds, CDs, and Savings Accounts: Earn dividends and interest, as well as potential of increased value due to capital gains. Various risk levels from guaranteed preservation of your principal to high risk.
  • Coin Operated Machines: I talked about Vending Machines and Kiddie Rides, but you can also earn passive income with videos game arcades or single machines placed inside restaurant entry-ways, laundry detergent vending machine for hotels, coin-operated massage chairs, coin-operated telescope machines at scenic views, toy vending machines and games (from bouncy balls to The Claw), magazine dispensing machines,and sanitary or condom dispensers.
  • Self Service Business: Self-Service Businesses like laundry mats, self-service car washes, and bottled water refill stations.


Are you Creating a Passive Income Stream for yourself? 3 comments

Anandkg22 profile image

Anandkg22 2 years ago

Very well researched and useful article on passive income, yes i am earning passive income and it is gradually growing.


Melinda Longoria profile image

Melinda Longoria 2 years ago from Garland, Texas

Wow, this is one of the most thorough hubpages that I have ever read. You did a wonderful job & kept my attention throughout the whole article. I am looking forward to reading more of your work.


Judah2610 5 years ago

I just started my research for Kiddie Rides business and I would like to know what would be the best ways to start not knowing industry?

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    Creating More Passive Income

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