Passive income provides you with consistent money with minimal maintenance. For example, if you bought a house and then rented it out, you would receive monthly payments, without having to do too much work. However property is only one way of making passive income and most people cannot afford to buy and then rent out a property, therefore making passive income online is a low cost alternative.
The great thing about passive income is that you can make money while you're watching a movie, spending time with loved ones and even sleeping! Although it does take time to build up a good passive income online, once you achieve this, you can usually maintain the money with minimal effort. Making good passive income online is all about putting in the hard work now, so that you can reap the rewards of your work for years to come.
There are various methods of making passive income online, though none of them are easy and all of them require hard work if you want to be successful.
Affiliate marketing is a great way to make passive income online. Once you join an affiliate program, for example Amazon Associates, you can setup a website or blog, and advertise their products. You can then explain to your visitors why they should buy these products through reviews and articles and try to persuade them to make a purchase. When your visitors click on one of the products listed on your website they will be taken to the sellers website, where they can purchase the product, and you receive a commission of the selling price.
For example, if the product cost $100, and the seller is offering 10% commission, you will receive $10 every time your visitors purchase the product through your website or blog.
Affiliate marketing is a great way of making truly passive income online. Once you have put in some hard work to set up your website or blog, written your reviews and articles and driven traffic to your website, your job is pretty much done! The product sellers will take care of customer service, delivering the product and giving you your commission, while you can spend your time doing other things.
Some affiliate programs even offer multiple tiers for sales, where as an affiliate, you can recruit more affiliates and you will earn a commission on their sales too. For example, if you provide an affiliate link on your website or blog, and a visitor clicks that link and signs up to the affiliate program, you might earn 5% of whatever they sell. If one of their visitors buys a product for $100, they would get their 10% commission of $10, and you would get a 5% commission of $5 without lifting a finger.
Many successful affiliate marketers are making thousands of dollars every month, sometimes every week, and so the opportunities for making passive income online through affiliate marketing are endless.
Clickbank.com allows you to choose a product to promote, sometimes with commissions as high as 75%, and is a very popular choice for many affiliates. Even if you don't want to create a blog or a website to promote the products from Clickbank, you can use the affiliate link they provide you in a facebook post or a tweet, and if your friends or followers buy the product, you will earn a commission.
A blog is another great way of making passive income online because there are so many money making opportunities. As mentioned in the previous paragraph, a blog is a great way of promoting products and making money through affiliate marketing.
You can also make great passive income by placing Pay Per Click (PPC) advertisements on your website. Google Adsense, Adbrite and Chitika are all popular PPC ad providers that you can use on your blog, and every time one of your visitors clicks on one of the advertisements, you earn some money. This means that you can potentially make money anytime someone visits your blog, whether you are awake or asleep, and depending on the amount of traffic your blog receives, this could provide you with a LOT of passive income.
Another way to make passive income from your blog is by creating premium content and charging visitors a monthly membership fee to access this premium content. You will receive this fee automatically every month, as long as your visitors become and stay members of your blog, with very little effort on your behalf. Again depending on the amount of members you sign up, you could make a massive amount of passive income from your blog.
However for these methods to succeed, and your blog to be successful, you have to put in a lot of work. You need to create plentiful, quality content, establish your blog in search engines such as Google (SEO), and attract visitors who enjoy and are helped by your content.
Problogger.net is a great resource for anybody looking to create money or earn a living from blogging.
Writing articles for websites such as InfoBarrel.com or Hubpages.com is yet another great source of passive income. You can write articles on practically any topic as long as they are original. Once your articles are approved and published, Google Adsense and Chitika PPC advertisements aswell as amazon associate product listings are shown on your article. On InfoBarrel, your advertisements are shown to visitors 75% of the time, and when clicked, earn you money. You can enter your Google Adsense publisher ID and Chitika publisher ID, along with you amazon tracking ID if you choose to do so, providing you with three passive income revenue streams.
The good thing about websites like InfoBarrel and Hubpages is that they receive high levels of traffic, probably higher than your personal blog would attract, and so potentially more visitors will see your articles and click your ads. You can also use websites like InfoBarrel to promote your personal blog or affiliate links, and get more traffic and exposure and hopefully more money.
Writing articles is a great source of passive income, for example if you join InfoBarrel and write one article every day for a year, you will have 365 articles all potentially making good money and receiving good traffic. You want to carry on writing articles and building your income, however personal circumstances such as having a baby, mean that you no longer have the time to write anymore. Those 365 articles should still be making good money each month, possibly for years to come without you having to write anymore articles.
Once you put in the initial work of writing quality articles and optimizing them, you can choose whether to write more and try to build your income higher. Or you can sit back and relax, knowing that your articles will continue to make you money with little more effort on your behalf.
Some members on InfoBarrel are making over $1000 a month, while the website is still growing in popularity, which demonstrates the opportunities in writing articles for websites like InfoBarrel.
Create Your Own eBook or Report
If you are knowledgeable about a certain subject or topic, you can create your own eBook or report and sell it online for some great passive income.
Once you have created your product there are various methods of selling it. You will need a website or blog with a sales or pitch page explaining what your product is about and why your customer should buy it, as well as a thank you or download page, where your customer can download the purchased product.
You can promote this product on your blog, however to get more exposure and sales, you should consider selling it on clickbank.com. Once your product is approved by clickbank, and you pay a $49.95 activation fee, your product will be listed on their website where affiliates can choose to promote your product, for a pre-determined commission. Clickbank will handle the affiliate's commissions for you, and so all you have to worry about is customer service and refunds, if customers are not happy with your product.
Because you will have affiliates promoting your product for you, you don't need to market your product as much, and because your report or eBook is digital, you don't have to worry about shipping or stock, as the product will be sent automatically after payment. This means that you can generate some great passive income, as long as you have made a quality product, because you can sell and send your product even when you are asleep.
As you can see there are many ways to make good passive income online and all of them require hard work, but as long as your willing to put this work in, I genuinely believe that anyone can make a good income online. Once you have worked hard to become successful, thats when you can sit back and relax a little, because the great thing about making money online and passive income is that generally it takes minimal effort to maintain that income.