Earn while you sleep! That may sound great, but in most cases, the person or organisation behind this mantra often promotes a Ponzi scheme. Unfortunately, a lot of people fall for this trap. After all, who doesn’t wish to have an additional income source due to the unbearable cost of living? People do not conduct due diligence in pursuit of a passive income source. It wouldn’t be wrong to say Pakistanis have lost billions of rupees in such fraudulent schemes.
However, passive income is not impossible. All you need to do is conduct your due diligence and invest in the right area. This article provides you with a list of the top 10 passive income ideas in Pakistan. These ideas require considerable investment and hard work. The investment may not necessarily be monetary, but your most valuable commodity – time. Before reviewing the top passive income ideas, let’s remove an important misconception regarding passive income.
What is Passive Income?
If you work two jobs, your second job is not a passive income. Similarly, if you are focusing full-time on your business, it is not passive income either. So, what’s passive income? It is an income which requires little to no effort. The most common examples of passive income include earnings from rental property or a business in which you don’t look after the day-to-day operations.
Now, let’s focus on passive business ideas in Pakistan.
10 Ideas for Passive Income in Pakistan
1. Drop Shipping
Read our guide on ‘How to Start a Drop Shipping Business in Pakistan’ before you opt for this idea. The guide will let you know everything there is to know about drop shipping. This business idea requires minimal investment but considerable effort. You must create an online store on Shopify or any reliable eCommerce platform. We recommend getting a specialist eCommerce development agency in Pakistan to design the store.
It will ensure the store integrates the latest technology and trends. Once the store is set up, you’ll need to market it. You don’t need to do the marketing yourself. Instead, you can automate it or hire a digital marketing agency. Once your store gains recognition, you can reduce the marketing budget. You’ll keep getting orders as long as you don’t compromise on quality. Of course, you must add new products over time. But that requires minimal effort.
2. Print On Demand Store
As the name indicates, you don’t need any product in inventory. Instead, you print the orders on demand. We recommend offering different products, including mugs and clothing. If you are considering starting this business, quickly search for top eCommerce stores in Pakistan. Focus on different niches. Once you have a list, contact these stores and market your services. It is a quick way to land high-value clients.
3. Rental Property
If you have an extra home or commercial place, you can rent it out. It is the easiest form of passive income. However, it is also the costliest to set up because if you don’t have any property to rent out, you’ll need to buy one. Unfortunately, property prices in Pakistan are sky-high. On top of it, there is considerable fraud in Pakistan’s property sector.
If you write well, create a blog immediately, as it is a great way to earn passive income. You can provide advertising space to advertisers or earn through Google AdSense. However, you’ll only earn good money when your blog has high-value traffic. The only way to bring high-value traffic is by writing engaging articles and adding relevant keywords.
5. YouTube Channel
A monetised YouTube channel is a great way to earn money. If you are good at creating content and are confident your videos will resonate with the audience, go ahead. Start making the videos and edit them properly before uploading them to YouTube. Do not get fake views or subscribers, as YouTube will block your channel eventually. You can even promote products and services in your videos. A lot of YouTubers do it in exchange for a fee.
6. Affiliate Marketing
You can do affiliate marketing through your blog or social media profiles. As an affiliate marketer, you’ll be promoting products and services. If anyone goes and buys a product through your referral link, you’ll earn a commission. We recommend the Amazon referral program because the commission rate is the best. You can sign up for multiple referral programs at once. It can help you diversify your passive income.
7. Invest in the Stock Market
Before you consider this option, know that it is very risky. You may lose all your money investing in stocks. We recommend investing a small amount to familiarise yourself with the workings of the stock market. Once familiar with the stock market, you can buy a large amount of stock and earn dividends.
8. High Return Saving Account
If you have a large amount of money lying around, don’t wait for it to devalue. Instead, invest the money in a high-return savings account. You’ll earn a daily profit on the invested amount. You can withdraw your investment anytime, making the savings account very convenient.
9. Online Course
If you have considerable knowledge in any area, create a course and start selling it. For example, people specialising in marketing offer digital marketing courses online. Similarly, Excel experts are offering courses to learn Excel online. The course must be highly engaging and informative if you wish to earn from it for a long time.
10. Create an Application
Lastly, create a smartphone application or software which people will pay to use. Focus on a need and assess the existing apps which try to address the need. Try to ensure your application or software is better than the competition. You must update the app frequently to keep people interested in it.
These are the top 10 passive income ideas in Pakistan. Due to the high cost of living, relying on a single income source is no longer feasible. Therefore, try investing in a business idea that can supplement your primary income.