Passive income comes in many different forms, from investments that generate regular payments to small, low-maintenance businesses. What they have in common is that you can earn money without actively working. The idea is that once you’ve done the basic work, maintenance will require minimal effort.

The challenge is that you need to invest money, time, or both to get your revenue streams up and running. This may involve purchasing income-generating assets or starting a passive income business. This article explains how to start a popular passive income business: a print-on-demand business.

The numbers vary, but according to Gelato, the average print-on-demand business earns more than $4,600 per year. Other studies suggest that you can earn between $1,000 and $5,000 once you gain traction.

If you earn this kind of money, it’s important to use a business bank account to separate your personal and business expenses. Check out our list of the best bank accounts for small businesses to find the one that’s right for you.

Step 1: Think

Any money-making business begins with idea generation. In this case, you will need to think about what designs and products people might want to buy. Try to find a theme that matches your own passions and interests. It could be jokes, pets, cartoons, hobbies, or even your job.

You can also search for ideas online, see trends on social media, and talk to friends and family. It’s important not to copy others, but you can take inspiration from what others are selling. Maybe you’ll find a successful idea and see a way to do it better. Or maybe you can reimagine it to reach an untapped market you know well.

Once you have a theme, you can start developing your product line. Look at specific products such as T-shirts, mugs or tote bags and think about what will work best for your market.

With print-on-demand services, your products are only created when someone orders them. This gives you a lot of creative freedom because you won’t be stuck with a warehouse of unsellable items.

Step 2: Make a plan

Print-on-demand services don’t require a huge amount of time or money up front. Still, it’s important to do some groundwork to give your idea the best chance of success. Planning will help you minimize the time you spend and maximize the money you earn.

Here are some things to consider:

• Map your costs and potential revenue. Create a budget that includes all start-up and ongoing costs.
• Learn more about your customers, especially the scope of your customer base and how to reach them.
• Compare print-on-demand services to choose the one that’s right for you. Look at the quality, prices and service.
• Look at the strengths and weaknesses of your competitors. Think about how you can differentiate yourself.
• Make sure none of your designs or slogans are copyrighted.
• Decide how you will sell: you can create your own website or use an existing store.

A solid understanding of your customers and the market as a whole will help you grow your brand. All the research you do will fuel your designs and product line.

There are many design tools online that can help you perfect your designs. If you’re not good at design, include the cost of a freelance designer in your budget.

Step 3: Test your idea

Once your offer is confirmed, you’re almost ready to go. Before selling anything to the general public, order samples of your products to check the physical items. This way you can resolve any quality issues and refine the design if necessary. You can also take photos to use in your marketing.

Don’t be afraid to show the products to your friends and acquaintances. Their feedback will give you a much better idea of ​​what works (and what doesn’t). If you can get feedback from your target audience, all the better.

Step 4: Put it on the market

Online marketplaces like Amazon or Etsy can be a great way to tap into a large existing customer base. However, fees, such as registration fees, transaction fees, etc., will eat into your profits.

Another solution is to create your own website. There are some great ecommerce solutions that make the process very simple, even if you’re not technically inclined. If you go this route, be prepared to spend time and money on marketing and customer service.

Keep in mind that it’s not an either/or issue. You can start with a hybrid model and, as your brand grows, push customers to your own website.

It will take you less than a year to grow your print-on-demand business.

Print-on-demand services can be a great passive income-generating business choice. Not only is it easy to get started, but your startup costs will also be low because you only pay when someone orders the product.

How much you can earn depends on what you sell and how you structure your business. Be sure to factor print-on-demand and online marketplace fees into your financial estimates. Set clear financial goals and keep an eye on your bottom line to maximize your profits.