For anyone interested in creating passive income with one or many internet businesses, there are many tools available on the internet that you probably already use on a regular basis but may not view as tools just yet. The large businesses like Google, Facebook, Yahoo, Twitter, YouTube, etc, all collect data on their users and use this information to their benefit, mostly in the form of selling advertising space to businesses to display to users when on their sites. Paying for this advertising space is not the only way to generate traffic to your internet business.
For those interested in setting up shop on any of the large shopping sites like Amazon, eBay, or Etsy, it is likely a good idea to pay for advertising on the large search or social networking websites BUT it is even wiser to take advantage of the free advertising that you can create by using the social networking sites. Today Facebook is by far the largest social networking site in the world and it has over 1 Billion users. You can create a business Facebook page for free (called a Facebook Fan Page) and start directing traffic to this fan page simply by making a small video or slide show and post it on You Tube. Facebook fan pages usually offer content for free that customers find valuable either as entertainment or informational. If the customers like your site fan page enough, they will bookmark it (or like it) and come back often to see the new content you have created. From your Facebook fan page, you can offer a link to your Amazon, eBay or Etsy store where your Facebook followers will click-through to your store and periodically make purchases. Chart A below represents this simple business model.
When you are comfortable with this business model and have started generating revenue with your online business, it is a simple step to keep building the momentum for your business by using the high traffic from the internet to keep it going. Of course, most successful businesses spend only a portion of revenue on marketing, with the majority of revenue going back into your business. Chart B shows what the long-term vision of your business should look like.
You will likely recognize most of the icons in Chart B, just be sure to stay on top of current trends. These current players will likely not be the only ones to choose from in the fast paced environment of the internet. Good luck and be smart about creating value for your customers!