Top 20 Passive Income Business Ideas in South Africa

Passive Income Business Ideas South Africa

A lot of entrepreneurs never get to truly enjoy the fruits of their labor because their time is consumed by working nonstop.

For example, a consultant’s income depends on the number of clients they meet, therefore they would naturally be compelled to see as many clients as possible. As soon as they take some time off, they stop earning.

When your income is directly correlated to how much you work, then you are no different to a slave.

A successful business should give you the freedom to work on your own schedule, take vacations whenever you want, work from home instead of an office, spend time with friends and family without worrying about losing money.

Starting a business that generates passive income is the ultimate way to create such a lifestyle. 

This article will highlight 20 small business ideas that will help you earn passive income while working from home.

Related: Untapped Small business Ideas South Africa

TOP 20 PASSIVE INCOME IDEAS TO MAKE MONEY FROM HOME

1. Write an e-book

If you are well-informed on a particular topic, you could write/publish an e-book. Even if you don’t want to write it yourself, or lack have the writing skills, you could use the services of a ghostwriter. Many writers do that.

Once your e-book is ready, you can publish it on various platforms such as the Amazon Kindle Store, where you will continuously earn money from its sales, without much more involvement on your part.

2. Create an online course

Creating an online course is quite similar to writing an e-book. It involves creating a course on something you’re proficient in, and publishing the lessons online where students can pay to access them.

Your course could be on drawing, singing, playing guitar, coding, physics, cooking, a foreign language, etc. Teachable and Udemy are great platforms to publish on.

Students will be able to access the content you already created, without active involvement from you. It is a great way to earn passive income from home.

3. Car rental

If you have a car that you don’t mind renting out, renting it out can be a fantastic source of passive income. However, it comes with some risks which is why it’s advisable to get use a reliable tracking device, in addition to getting commercial insurance.

Alternatively, you could hire a full-time driver and put the car on Uber.

4. Rent out a room in your home in Airbnb

Airbnb is a popular platform used by homeowners and those seeking accommodation for short term stays.

If you have a spare room in your home, you can take advantage of this awesome platform to earn a good income. Simply furnish the room, publish it, and wait for guests to come knocking.

5. Start a blog

If you happen to be a good writer, one of the best ways you can monetize your skills is by starting a blog. 

The blog can be on literally any topic of your choosing, whether that’s health and fitness, finance, marketing, or even animal care. It doesn’t really matter what niche you select (well, as long as it has demand).

Blogs can be monetized in many ways, including ads and affiliate marketing.

6. Sell stock photos

Selling stock photos is a great way to passively earn money from home. You just have to take some good photos and post them on Shutterstock or other stock photo platforms.

You don’t need an expensive camera or studio equipment to get started, a decent smartphone should do the job. You could take photos of different things in your home, your pets, yourself doing different things such as cooking, etc.

Once the photos are uploaded, you don’t have to do much more with them. If people like them, you can keep earning from them for years.

7. Get paid to unlock your phone for ads

There are various money making apps that you can use to earn some money on your phone. Slidejoy, for instance, pays to show ads on your phone’s lock screen.

8. Drop shipping

Drop shipping is a business model where the seller acts as an intermediary, fulfilling customers’ orders without necessarily keeping the products in stock.

Drop shippers simply advertise the products online, and every time an order is placed, they order the items from a supplier and then ship it directly to the customer.

The prices are marked up by the drop shipper while advertising. Once the product is sold, the drop shipper profits from the difference between what he/she paid the supplier and what the customer paid.

Building an e-commerce store is essential if you want to maximize the benefits of drop shipping. In addition to creating trust and reputability, a powerful e-commerce store is very beneficial in marketing.

9. Sell outsourced services online

Selling outsourced services online is not too different from drop shipping. It also involves acting as an intermediary, advertising services and then passing the orders on to freelancers who can fulfill them at a cheaper price, leaving you with the difference.

Some examples of services that can easily be outsourced online include graphic designing, web designing, writing, SEO, etc. Fiverr is a great place to find inexpensive freelancers.

Related: How to find companies that are looking to outsource work

10. Get a savings account

This is quite a simple but incredibly passive income idea. You simply need to open a savings account in a reputable bank with great returns, and deposit some money.

11. Invest in stocks

Investing in stocks is a long-term strategy that has the potential to be very lucrative. However, it requires patience and the know-how to make the right investments. If you don’t have the knowledge or experience, you could seek advice from someone who does.

12. Invest in cryptocurrency

The cryptocurrency market is a very unpredictable and volatile. Therefore, investing in it is quite risky. However, it has the potential to earn you a tremendous amount of income.

You could invest in established coins such as Bitcoin, Litecoin and Ethereum.

13. Invest in crowd funded real estate projects

This is a great way to invest in real estate projects with relatively low capital. Crowd funding involves pooling money from many investors to fund a project.

Once the property complete, investors can either get paid a commission from the income the property generates, or shares in the whole project. Realty Africa and Fundrise are great platforms to invest in crowdfunded real estate projects.

14. Invest in a small business

There are many small businesses that would like to expand or improve their operations, but lack the finances.

If you have the capital, investing in a small business can potentially be a great source of passive income. You don’t need to be involved in its day to day operations, you just sit back and wait for your commission from the business’ revenue.

15. Lending

Peer-to-peer lending also has great potential of generating passive income. You simply dish out loans and earn through the interests they accrue. When implementing this business idea in South Africa, however, make sure to put measures in place to reduce the risk of people defaulting.

16. Vending machines

Selling goods using vending machines can be a very profitable business if you have a location that is secure and has heavy foot traffic. Such locations include schools, malls, hospitals, etc. 

You’ll only need a single person to maintain the vending machine, everything else is automated.

17. Open a self-storage facility

Storage is an important to many businesses and individuals who need a place to keep their belongings. You can earn passive income by providing self-storage spaces for rent.

18. Become a social media influencer

Becoming an influencer has the potential to earn you a good living. The main requirement is to have a large following on platforms like Facebook and Instagram.

You can build your following by regularly posting quality, relatable content on a particular theme e.g., fitness, travel, etc. You can also run paid ads promoting your page. Once your following is large enough, you can start doing sponsored posts at a fee.

19. Affiliate marketing

If you have a blog, YouTube channel, social media pages, or a strong online presence, affiliate marketing is a great way to earn passive income. You simply promote products as an affiliate and get a commission every time a purchase is made using your affiliate link.

Related: The highest paying affiliate programs in South Africa 

20. Buy a website that already has traffic

Flippa is a great platform for either buying or selling websites. They have awesome offers on websites that already receive a good amount of traffic. You could purchase and grow such sites and earn through affiliate marketing, sponsored content, ads, and so on.