Passive income is the only real way to get ahead in the earning game. After all, if you are being paid by the hour, you have a very specific limit as to how much money you can earn. If you build a product instead that will bring in money on its own, without you lifting a finger, you have passive income and the possibilities are endless.
So, how do you go about making passive income? It isn’t as passive as it sounds! In fact, setting everything up takes a lot of work, so don’t think it’s a free ticket to dollar paradise! But once you have what you need in place, your passive income kicks in and you are able to move on to your next project. If you set up enough passive income models, you can actually become quite rich . . . provided they work, of course!
There are several ways to create a passive income online. One of the most popular ways is to become an affiliate. You can go to Clickbank or Commission Junction or simply find a product that you like that offers an affiliate program and then promote a product or products. Every time someone you send to the site buys a product, you earn a percentage of the sale. Now, the trick is to set up a method or two or three of promoting the affiliate product and letting it run on its own.
One way to do this is to write free articles and include a link to your website (affiliate links aren’t usually allowed in free articles) in the bio box. Post these up on free article directories such as EzineArticles and GoArticles and you will shortly have plenty of people looking at them. Hopefully, some of them will click through to your site where you will have a presell page that further directs them to the product website. Once you have a bunch of articles out there, your site should be generating a profit all on its own and you are free to move on to the next project.
Another method of generating passive income is through creating your own products that you can sell over and over again. Information products are ideal for this because once they are created; you really don’t need to do anything more except promote them. There are no costs incurred for printing or shipping, they are instantly downloaded by your clients. Ebooks, article packs and short informative reports are perfect for this, as is custom built software.
Once you write your report, ebook or create your software, all you need is a website where you can have the item for sale and download and a method of promotion. While free articles are fine, you will probably want to go a step further and set up a more advanced promotion. This could be through Google AdWords, or you might consider setting up your own affiliate program through Clickbank or PayDotCom. This allows you to have a team of vendors selling your product for you. Just give them a generous percentage (up to 75%) in return for selling your product and you will have plenty of takers. It’s worth giving away a large chunk of money earned because you have no more work to do, just sit back and let the money come rolling in!
To double up on the two methods mentioned above, why not promote your affiliates in your information product? This allows you to earn twice, once from your info product and again when the readers sign up or buy your affiliate products! The more passive income you can generate, the better!