Hey hey, Yani here with another info packed post for ya. But before we get into it, I want to let you know that I have an awesome course out that shows you how to make $500 in 5 days (yes you read that right) and I’m currently giving this away for FREE. Yep, a big fat zero dollars. If you could use an extra $500 in the next 5 days, please CLICK HERE and put your best email in so I can get it to ya ASAP!
Okay, so on to the topic today. Let’s talk about generating an income online.
ACTIVE INCOME VS. PASSIVE INCOME
There are two types of income streams that exist. There’s Active Income and Passive Income.
Active Income is any type of income stream that is generated in exchange for your time or effort. The moment you stop putting in time or effort, the income comes to a halt. You have to consistently work hard to earn an active income. The best example of active income is having a typical job. With a job, you spend X number of hours at the workplace and in exchange you receive a pay check for those amount of hours. If you stop working for that job or get fired, you immediately lose that income stream.
Passive Income is an income stream that is generated after only working hard once. Once you’ve invested your time and efforts to create the passive income stream (an online business), your job is done. The income generated by the automated systems that you’ve set up will produce a consistent passive income for you without any real-time presence. You will continue to receive income for the rest of your life, even while you eat, sleep, travel the world… or even die.
“If it’s not residual income then don’t do it, because it takes you to slavery, not to freedom.” – T. Harv Eker
The concept of making passive income is commonly taught by authors such as Robert Kiyosaki of Rich Dad, Poor Dad, as well as T. Harv Eker of the Millionaire Mind Intensive. While I learned much from both of those guru’s of the idea of earning passive income, it wasn’t until I read The 4-Hour Work Week by Tim Ferriss that really drove it home for me. Ever since I did, I’ve committed myself to becoming financially free.
Financial freedom is when your passive income exceeds your expenses.
PASSIVE INCOME BUSINESS MODELS
There are 5 total online passive income streams that are pretty straightforward and quite simple to apply. Anyone can do it – no matter what your experience with computers or technology may be. And they are…
1. INFORMATION PRODUCTS
An information product is any type of product that provides information that the purchaser is seeking. The example I gave in the video is that when people go to Google.com or any search engine, they are looking for information. You would provide the information as a product on your website in the form of an e-book, audio or video program.
For some examples, go to the Clickbank Marketplace and you can view all of the information products people have created in the many available niches. All of these websites and information products are designed to solve peoples problems.
Business is solving peoples problems at a profit.
While creating information products is a great way to make passive income online, it can take some more time than the other business models mentioned. For an information product, you’ll need to create a website, sales letter, a digital product, as well as do the marketing and traffic generation. It does require more skills and some experience, but it’s the best long-term and steady passive income stream mentioned here. This business model also has the most potential to earn the most money over the other ones too.
2. AFFILIATE MARKETING
Affiliate marketing gives you the ability to earn a commission for promoting other peoples products. Most information and physical products online have an affiliate program that you can sign-up for. When you sign-up, you’re given a special link to promote that product with. Anyone that buys that product through your link will earn you a commission.
You could easily create a simple WordPress blog that has a few reviews promoting a product on Clickbank.com or any other affiliate network. You’d then get the blog to show up in Google for those specific keywords that people are searching for, the visitor would then view your blog, and then click your affiliate link to purchase the product.
You can also do affiliate marketing through a YouTube video, a mailing list, or even through social media. In my opinion, affiliate marketing is one of the best ways to get started as you don’t have to worry about creating your own product, sales letter, or dealing with customer support. Your only job is driving traffic to the person’s website.
3. AMAZON REVIEW WEBSITES
This method is essentially the same as affiliate marketing, except you’re promoting Amazon products. Amazon has an affiliate program that anyone can sign-up for that allows you to promote any product on their website. You can sell TV’s, Computers, Books, Movies… anything.
With Amazon, you don’t get the same commission structure as an information product (mentioned above with Affiliate Marketing), but if you promote expensive products such as TV’s or Computers, you can really make a lot of money even if the commission is quite low. The strategy here is the exact same as the Affiliate Marketing method mentioned above. This type of method is also really great to plugin to your existing website.
4. KINDLE BOOK MARKETING
This is probably one of the easiest ways on how to make passive income online. You’re essentially leveraging the Kindle store on Amazon and putting up your own e-book for people to purchase and download. The secret to this method is doing the correct research and making sure that your Kindle book is optimized in their search and recommended product list.
The only downside to Kindle is that the potential to make a lot of money isn’t as high as creating your own information product or doing affiliate marketing, but it’s still a great, easy, and simple way to on how to make passive income online. Amazon and Kindle does all of the selling for you, all you have to do is put the Kindle book up on their marketplace.
5. GOOGLE ADSENSE ADVERTISING
This method is simply adding Google Ads to your blog or website. When people visit your website and click the ads, you get paid by Google. Simple as that. Very easy way to make money, but the amount of money you get paid for someone clicking the ads depends on how many advertisers are bidding on them using Google Adwords. There are some people that only have Google Adsense on their website or blog and do quite well, while others simply add a few of the ads to their website as another stream of passive income.
MAKING MONEY ONLINE IS NOT EASY AND REQUIRES HARD WORK
I know that I probably have made it sound very easy and simple to make money online. I want to set some realistic expectations for you. Just like anything else in life, in order to become successful at something it requires hard work and dedication. All of the methods outlined here aren’t “get rich quick” schemes or anything of that sort. They are all tried, tested and true methods to make a passive income online.
To become successful at internet marketing and making passive income online, it requires action. Anyone that tells you otherwise is selling you false hope and trying to make money off of you. It personally took me a year before I started making money online, but hopefully this doesn’t have to be you as I can share with you the best of the best of what has helped get me to where I am today.
Making a passive income online is NOT impossible. Anyone can do it, no matter where you’re coming from. I’m living proof of that, along with thousands of other internet marketers out there. If you’re committed to it, you will be successful at it. The biggest challenge is making your first dollar online. Once you’ve done that, you’re 95% of the way there and things really start to accelerate. That’s when momentum kicks in, you’ve gone through the process, and you can scale things up faster.
RECOMMENDED PASSIVE INCOME RESOURCE
If you want an all in one, no holds barred, constantly updated, step by step resource on making money online, I will personally recommend the Evergreen Wealth System by James Scholes. You can be a newbie, intermediate or even an advanced marketer, all you do is set this system up once, and you will literally never have to touch it again, but it will keep making you money. You really can’t get any more passive than that. An investment is required, but it is well worth it.
Also, don’t forget that I am offering my “How To Make $500 In 5 Days” course absolutely free, so if you want to try that first, feel free to CLICK HERE and get started!