There are many ways to create passive income online. But I’m only going to cover the ones that I’m most familiar with and have the greatest potential.
First, let me clarify the meaning of “passive” income. When you create an online source of passive income it’s not necessarily 100% passive. It can be close, but you still need to do some maintenance and monitor its performance.
The best comparison of passive income to other forms of business income is the land-based store. If you’re selling a product or service from a building or even your home to the local community you’re required to be available to your customers during a fixed set of hours. Otherwise, you don’t make any money. You’re also required to deliver the product or service.
With an online business that has a passive income systems setup, the owner can make money 24-7-365 to the world community! And the owner doesn’t have to deliver the product or service. It happens automatically.
I probably don’t need to tell you the difference in upfront costs between a land-based store and an internet-based store. It’s pennies to thousands of dollars in comparison.
The best passive income systems that I’ve found are based on digital products and services. These might be items you’ve created like ebooks, apps, or digital art. Or they may be products of other companies that you promote as an affiliate like website hosting, cloud services, or advertising space.
Google is the best example of a digital service. They provide a digital advertising service through their Adwords program. They also offer a way to earn passive income by putting these Google ads on your website through a program called Adsense. Both of these programs are powered by Google’s free search engine.
If you have a hard product to sell like jewelry, sculptures, or T-shirts there are services that will handle the fulfillment for you automatically. These services can be easily integrated into a website. Once set up, your customers can order your product and initiate physical delivery of it 24-7-365 from anywhere on the planet.
The best part of passive income systems is that the money from your sales is automatically deposited in your bank account. Depending on the product or service, some of these deposits can happen instantly while others occur on a monthly basis or when you have reached a certain plateau.
Setting up an online passive income system is less complicated than you might think. When I started out in 2000, setting up an online payment system was difficult. Today it’s just a matter of clicking a button or adding a short piece of code to your website. And they tell you exactly how and where to put it.
I can’t tell you all the steps for creating passive income systems in a single article. But I can give you a few ideas that will get you pointed in the right direction.
Here are the two most important factors to consider first.
- What is your level of experience with the internet and e-business? Are you a novice? Or someone who has little knowledge about e-business?
- Do you have a product or service to offer? Or do you have something that you are knowledgeable and/or passionate about?
Passion and tenacity are the keys to success in any business. The internet makes things easier in many ways, but it’s still a lot of hard work. So you’ll need the fuel of passive to get you to your dream.
You can sell your product or service on someone else’s website, like Amazon, eBay, or ClickBank, or you can build your own website and put multiple forms of passive income systems on it. I prefer the latter for obvious reasons, but also because I can have full control.
If you have zero or limited online business experience or you’ve tried and failed in the past, I recommend the “SBI” product. It provides all the education, tools, and passive income models you’ll need to succeed. And you do not need to know or do any coding. 🙂 SBI was the turning point for me.
If you have considerable e-business experience, I recommend hosting your website or blog with DH and building it on WordPress with a premium theme company like SP. Their themes are powered by their rock-solid G framework.
For more detail on these recommendations read my article entitled, “How to Create an Income Generating Website.”
I love to write about building an online business because I’m so passionate about it. I particularly like the freedoms it allows. It fits my nonconformist, unconventional outlook.
If you have an interest in creating passive income systems, I hope that you have the courage to go for it. Perhaps one day, we will share a piece of island beach white sand while sipping smoothies as we check our email for sales and bank deposits. 🙂