Most people are trading time for money, getting paid for the hours they work. Some people are paid on the number of items or tasks they complete, known as piece work.
The richest people in the world have passive income coming in from properties they are renting out, business they have established.
They have multiple businesses that don’t require them to be present to continue earning them money.
Once you understand the power of passive income, you will focus all your free time in developing this type of income.
The internet has enabled people in the lower income bracket to build up passive income. Some have used the global opportunity provided by the internet to earn millions of dollars in passive income.
This has enabled them to leave their dead-end jobs and really live the lifestyle of their dreams. You can start building up multiple sources passive income using the internet on a part-time basis.
I hope this blog post gives you an insight into the world of earning passive income using the internet.
1. Affiliate Marketing
Affiliate Marketing is the process of initiating sales of other people’s products and services and getting paid a commission once the sale is made.
The product/service owner is sometimes willing to pay over 50% commission on the sale if the product/service is digital.
Tangible (Physical) products usually pay out a smaller commission. To earn a substantial income from affiliate marketing you will need to become a skilled internet marketer.
Successful affiliate marketers have created niche blogs on various topics. The content from the blogs draws in targeted visitors. Adverts are placed on the blogs offering products and services which will interest the target market.
The visitors on the blog will be more likely to buy the product/service as they are targeted to the niche.
Top affiliate marketers focus on a select few niche blogs and churn out relevant and useful content to develop a loyal visitor base. They also offer useful tools and information to build-up an email subscriber base.
Popular Affiliate Programs: Amazon Associates, CJ Affiliate by Conversant, Rakuten, ShareASale, eBay Partner Network, Avangate, FlexOffers, AvantLink, RevenueWire, ReviMedia, ClickBank, Market Health…
2. Publishing Ads On Your Site/Blog
Once you have a popular website or blog, you can monetise it by publishing adverts. There are various advertising networks to choose from.
The most popular advertising network is Google Adsense. You will need to have a website/blog with a fair amount of traffic to get approved by Google for publishing adverts.
3. Creating And Selling Your Own Digital Products
You can earn a passive income by creating and selling your own digital products. The easiest digital product to create is an ebook.
You can publish your ebook/report on your own website/blog. This will allow you to keep all the revenue generated after online payment transaction costs.
You can use PayPal or other online payment processing solutions to take payments. This is a good option if your website/blog is getting a high volume of targeted visitors.
If your website/blog is not well established or you don’t have one yet, you can publish your ebook on established platforms. These sites take a small percentage as commission on every sale of your product. You have the advantage of getting your ebook exposed to a large visitor base.
Amazon’s Kindle Platform is one of the largest ebook market places online, it allows anyone to publish an ebook online and earn a passive income from sales.
4. Selling Stock Photos/Audio/Video
If you are a talented photographer, you can a passive income by selling your photos on stock photo sites like: Alamy, Shutterstock, iStock Photo, PhotoShelter, Fotolia, PhotoMoolah, SmugMug, CanStockPhoto, 123RF, DreamsTime, Snapped4U…
5. Selling Tangible Products Online
Selling tangible products online can be rewarding if done correctly. You don’t want to get into the trap of having to provide the postage and packing service yourself.
The best solution is to use a drop shipping service or services like Amazon FBA.
You can sell from you own website and use a drop shipping service. This option would require a lot of traffic to your website.
In my opinion it’s best to use a service like Amazon FBA (Fulfilled By Amazon) as it offers the benefit of having your products listed on an established marketplace. You also get to free yourself from the order taking and delivery/returns procedure.
You job is to find products that sell well and offer a high profit margin. You want to earn passive income, not having to work daily to earn money. You should concentrate on a set and forget process.
6. Publishing Sponsored Content/Ads
If you have a well-established niche blog/website, you offer sponsored content or adverts on it. You can set your own prices. You can choose to have a sponsored editorial for a product or service. You can also choose to offer banner/text adverts on different locations on your site/blog, setting prices for various time lengths or number of clicks/impressions.
You can get ready made plugins or modules to enable you to run adverts on your site. The taking of payments and adverts can also be automated.
Look at top niche blogs and sites to see what they are using to monetise their content.
7. Creating Your Own Affiliate Programs
You can sell your own digital products on your blog and create an affiliate program to boost sales. There are various WordPress plugins that will enable you to create your own affiliate program.
I would advise you to offer close to 50% commissions to draw in affiliate to market your products. If you have many affiliates marketing your products and generating a substantial number of sales, you will still earn a lot of passive income.
Once you have created a product and set up your affiliate program, you can announce it to your list of subscribers.
I use the TrafficWave Autoresponder to build my list of subscribers. This offers one flat monthly subscription, you can have as many subscribers and lists as you want!
8. Joint Venture Partnerships
Joint venture partnerships are responsible for bringing in a large amount of sales and commissions in a short time frame.
Once you have created a digital product or service, you can start looking for JV partners to market it. You should offer your JV partners a slightly higher commission rate to incite them to market your product/service.
You can also create a JV partnership to promote other people’s products/service. The JV partnership is a win, win process for both sides.
Let’s take an example:
A product sells for $99.95 and earns you $45 profit on every sale.
For every 100 people in your niche that view your product 3 people decide to buy it.
If you found 10 top JV partners who had large subscriber lists in your niche, let’s say 100,000 subscribers. If they all sent out your offer to their lists, and only 10% of the subscribers opened and viewed your product offer…
100,000 x 10 = 1,000,000
10% of 1,000,000 = 100,000 people would have viewed your product.
If 3% decided to buy your product, this would mean 3,000 sales.
Earning you $45 x 3,000 = $135,000
This can happen in days, as the emails can be sent out instantly. The sales would be generated within a few days.
Creating JV partnerships is one of the most powerful ways to earn passive income online.
9. Monetizing Video Content
You can also produce video courses/training and sell them on Udemy. You produce the instructional video once and earn commissions on every subscriber to your video based course.
10. Network Marketing
Network marketing is the process of earning commissions by marketing a company’s products and services. The difference between affiliate marketing and network marketing is that you can become an affiliate marketer for free. Joining a network marketing company involves purchasing products/services every month.
You will need to purchase products/services every month to qualify for earning commissions as a network marketer.
This may look a little strange, but unless you purchase products/service there will be no money to pay you commissions. If the monthly purchase was not put in place, everyone would be marketing the products and services as affiliates without many sales being generated.
Most network marketing companies offer a monthly auto-ship to keep you qualified for earning commissions.
Network marketing can be a powerful way of earning passive income. It involves hard work at the initial stage with the reward of long term passive income.
The internet offers one of the most powerful ways to market your network marketing opportunity on a global scale.
You can start building up your monthly passive income as your global network of distributors grows. There are many reputable network marketing companies as well as many companies that disappear within the first 12 to 24 months of opening.
I am currently working with a reputable networking company that has been in business for over 5 years and still growing.
Once you understand the power of passive income you will not go back to trading your time for money. Even if you are working a dead-end job, you can use the little time you have free to build up passive income.
Most people can find at least 1 hour daily to build up their passive income. You can use this time to write an ebook, create a blog, build up a network marketing business…
If you are creative you can take photos, make videos, create courses and monetise them using the internet.
Use the ideas on this post to start building passive income sources.
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