Up until recent years, there has only really been 2 forms of passive income.
However, this just isn’t the case anymore, as technology continues to advance and more people are turning to make an income online.
The opportunities to create recurring or a passive income stream online continue to present themselves.
So what can generate passive income?
Now throughout history, there have only been 2 true forms of passive income..
Real Estate And The Stock Market.
The first will require you to have a high credit score and a good size investment or a huge cash investment.
It can be very lucrative if done correctly or if you’ve accumulated a few rental properties.
However, the upfront investment and the credit score eliminates this option for a lot of entrepreneurs..
Especially younger ones.
The second: The Stock Market
Is notorious for people losing their life savings.
And will require you to savvy with current events, have money to invest, and have a good understanding of how the stock market actually works.
But If You Don’t Learn How To Make Money While You Sleep, You’ll Work Until You Die…
Fun Fact: The quote above is what gave me the idea for the name of my blog. “Night Time Nickels” as if you’re making money while you sleep!
Passive Income VS Semi-Passive
First of all, I would like to clarify the difference from a truly passive income and a semi-passive income..
A truly passive income would come from things like real estate or the stock market.
Where all it would really take for you to start turning a profit, would be an investment or money.
But beyond that, you could start making money with very little effort.
Semi-Passive income is something where you put work in upfront, but it will continue to make you revenue for months or years to come.
In my opinion, the second option is a more realistic approach and obtainable to your everyday person.
But what can generate passive income? Online specifically…
Related Post: Which Affiliate Program Is The Best? 25 Ways To Create Passive Income.
1) Affiliate Marketing
In my opinion, one of the best ways to generate passive income online is through affiliate marketing.
Becoming an affiliate for software companies specifically will allow you to build up a monthly recurring revenue.
If you are unaware of what affiliate marketing is.
It is merely a modern interpretation of a very old business model..
You promote a product and upon making a sale you’ll receive a commission.
Not to be confused with a pyramid scheme or multi-level marketing program.
Much like a real estate agent or a car salesman, they get a commission upon making a sale of a product they don’t actually own.
Most travel companies’ entire business models are actually affiliate marketing..
They list and compare prices of hotels and upon someone scheduling or booking a stay through them, they’ll be paid a commission.
Huge brands such as Amazon, Target, Best Buy, And Walmart all have affiliate programs.
Now I’ve personally never promoted anything from them, because If you decide to become an affiliate for physical products you’d have to make hundreds of sales every month to make a substantial amount of money..
I only like to highlight these huge brands and talk about how they also offer affiliate programs because some people tend to think that affiliate marketing is some type of scam…
When in reality its probably the most common way for people to make money online and you don’t even realize it..
The reason that this becomes in my opinion the best way to generate passive income is that you can find products that will pay you month after month..
If you become an affiliate for software companies, they will pay you every month for as long as the person you referred to their company uses their software.
Companies like Clickfunnels will give you $38 Per Month every person that you can get to sign up.
Now I know that doesn’t seem like very much at a base level, but it can really start to add up as you get more and more people signed up.
100 People would be $3,800 per month or 200 people would be $7,600 each month..
One of the best parts is… You don’t even need to use the software that you promote or be a paid member to be an affiliate…
Even though I would recommend using Clickfunnels or any type of landing page building software for your business.. Online or not..
Check Out This Post: Why Using Sales Funnels With Affiliate Marketing Can Change Your Entire Online Business..
Want to learn even more about affiliate marketing? Check Out Affiliate Secrets 2.0
There is a few ways that you’re able to make a substantial amount of income from blogging.
This method can tend to be slower than others, however, once the ball is rolling.
Your blog and traffic will really start to explode..
Whenever someone is first starting to think about making a blog, I like to explain it as a snowball effect.
I’ve seen it so many times…
Someone starts a blog, they don’t see traffic or results within the first few days and they stop..
It can be a decent amount of time before you start seeing ANY traffic..
But once you do… It is going to continuously grow..
Google is going to naturally rank your articles or blog posts purely for the fact that you’re already ranking for other keywords..
When you first start, write articles for keywords that have little to zero search volume or competition.
And just keep writing articles..
It is something called the “Content relevancy method”
This is basically where you write enough articles based around the same content, you’re basically forcing google to rank you.
Getting your blog posts or your website very high in the search results without really even having to know anything about search engine optimization..
Now if you’re looking to start a blog… But don’t want to waste time learning how to code..
Or hiring a website designer… Check out this blog post… What Is The Best Blog Theme? #1 Option For Bloggers
It’s the theme that I use for various blogs that I have, I enjoy it so much because I can spend less time building the site and more on pumping out quality content…
But How Do You Make Money From Blogging?
There are 2 main ways that make blogging really lucrative….
The first is affiliate marketing..
The reason that these pair so well with a blog/website is because it doesn’t affect what type of content you need to put out.
You can write posts and create a website about something that you’re actually passionate about..
Then find affiliate products that go well with your existing articles.
Say you’re into fitness, so you start a blog based on different workouts or meal plans.
You can add links to various products related to that industry throughout your website.
Or take my blog for an example…
I’m very passionate about helping people leave the corporate workforce…
It is something that actually means a lot to me because the whole concept doesn’t align with who I am..
So I talk about things throughout my blog that I’ve learned on my journey to success online..
But almost every link that you find on my website that takes you to something other than my blog, I’ll receive a commission..
I do believe and only promote things that I’ve personally used or companies that I actually believe in though!
The Second Is Called Ad Sense
Ad sense is where Google will place advertisements throughout your website and you’ll be paid every time that someone clicks on an ad through your website.
This scales as your traffic grows..
If you have a massive blog or something that is ranking for a ton of stuff you can make some serious money….
The current revenue calculator for Ad Sense:
If your website was based in the United States in the Business Industry
Minimum: 50,000 Monthly Visitors = $10,986 Per Year
Maximum: 10,000,000 Month Visitors = $2,197,200
Now I know those are very far apart, but I wanted to emphasize the potential of having a website ranking on Google…
You would need around 450k Monthly visitors to make over 100k Per year… On autopilot… Just for placing ads on your website..
3) YouTube Channel
Most get the notion that you need to go viral to make a substantial amount of money with Youtube..
And that couldn’t be farther from the truth…
You actually don’t even have to make videos to monetize from the platform that some refer to as the “Holy Grail” right now…
Now if you’ve ever been on Youtube…
I’m sure you’ve come across channels that do top 5’s of something…
Whether that be sports plays, movies, or world fastest trains..
Most if not all of those channel compile videos that they didn’t actually create and are making a serious profit..
It might sound a little unethical…
But it’s fully within terms of service.
When someone uploads a video, if they categorize it as a creative common anyone is allowed to download that video and re-upload it with a different thumbnail as their own..
Now I’m not saying that this is the only way that you should be making money off of Youtube..
I’m basically just trying to make a point..
YOU DON’T HAVE TO GO VIRAL, HAVE A HUGE FOLLOWING, SHOW YOUR FACE, OR EVEN MAKE YOUR OWN VIDEOS TO MAKE MONEY!!!
Similar to the pay structure of a blog.. The way you’ll be paid is virtually the same..
Doing product reviews is a great way to make money through Youtube..
If you did a review on a digital product, something like the One Funnel Away Challenge.
Where you’d be paid $100 USD for every person that purchases, you could make a substantial amount of money with very little views..
Some of the most successful Clickfunnels affiliates..
Spencer Mecham & Rachel S Lee, have under 30k Subscribers combined…
But they’ve made a killing from being affiliates for Clickfunnels..
And creating content based on their products.
What Can Generate Passive Income Online?
Affiliate marketing is my favorite and method that I would recommend to everyone.
Whether you’re making some money online.
Or you’ve never even tried.
Really learning a high-income skill and perfecting the method needed to promote software companies..
Creating a monthly recurring revenue so you’ll make money while you sleep!
Related Post: Why Start An Online Business? The 5 Best Things About Quitting Your Day Job..