One idea that I got about making passive recurring income was selling web hosting. I purchased reseller hosting from Hostgator awhile back because I have a bunch of websites, so I figured I could just get that instead of individual hosting for each site.

After reading their free e-book, I realized that there was good potential for creating a real business with ongoing passive income from selling web hosting. After all, once a client gets their website set up, they usually don’t need to bug you any more.

A few ideas are as follows:

1. Create a website and sell it for super cheap to get the hosting client – With WordPress and other content management systems and software, creating a website is actually pretty simple and can be done quickly. In exchange, they agree to host with you.

2. Target a niche, like bloggers or E-commerce users and become a specialty host – This will allow you to position yourself differently from generic web hosts.

3. Sell to local businesses – About 50% of local businesses don’t even have websites yet. And just about any brick and mortar business can afford $12-$20 a month for hosting.