Editor’s note: This article was first published in July 2010; the dividends of up to 8%, the entry costs of 200-700 euros for multi-level businesses and the examples of businesses of the future reflect the time of writing.
By income-generating businesses we mean any business that, after an initial capital investment or an initial investment of time, will keep generating income for a long time. That’s what I call building an asset.
Obviously, the biggest asset we can build is creating a company or business, although there are other business systems that require a smaller investment and can bring in income for many years.
1. An income-generating business can also mean a sound investment, whether in bank deposits or in a company’s shares. Today some companies pay dividends of up to 8%.
2. Multi-level marketing: We’ve talked about this kind of business several times. What stands out about these businesses is how little money you need to get in. You can start your multi-level business with anywhere from €200 to €700 and generate recurring income for many years. But make no mistake: as with any business, you’ll have to put in an initial effort until you reach a steady income that comes in on its own. We discussed multi-level businesses and their pros and cons in this article: Multi-level marketing: pros and cons
3. Network marketing: This is multi-level marketing for the modern era. Thanks to technology, a new way of doing business online has emerged, in which you can reach millions of people around the world. The pros and cons are exactly the same as for multi-level businesses, with the added drawback that you need at least basic computer skills. When to consider getting into network marketing
4. Franchises: These often require a larger initial investment. If you choose a franchise, first make sure:
- That it belongs to the businesses of the future: body culture, personal care, renewable energy, etc.
- That you’ve acquired a business and not a job: make sure your daily presence won’t be needed for the business to run.
- Make a business plan, because these days they’ll give a franchise to anyone, whereas they used to carry out an exhaustive market study. Why a business plan matters and how to structure one.
5. Patents and trademarks: There’s no better asset for a steady income than creating a patent or a trademark that earns you money every time it is used.
6. Writing an ebook: Today anyone with basic writing skills and knowledge of a particular subject can write an ebook (electronic book). Every time an internet user downloads it, you’ll earn a small income (depending on the ebook’s price). The advantage of this system is that you can reach millions of users around the world.
That said, as I mentioned at the start, any business can bring you income for many years, so I invite you to explore our other business ideas.
Further reading
- How to be a successful businessperson
- The entrepreneur’s mindset
- Why new businesses fail
- How to start a business with no money
- The most profitable businesses
Featured image: KMR Photography from Toronto, Canada, CC BY 2.0, via Wikimedia Commons.
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