Would you like to make money while you are traveling? Learn everything you need to know in this practical guide to earning online passive income without breaking the bank.
Passive income is the Holy Grail for income-minded individuals. It is the only way for them to achieve true financial freedom.
I mean what is the point of making money online if you are always busy making that money?
Pretty much every online entrepreneur is working towards earning consistent online cash flow whether they are working or not.
I had a conversation with a friend a few days ago and he asked me if it is possible to make $300 from blogging every month. I told him yes, it is. But I also told him it won’t just happen overnight either.
The reality is most passive income ideas out here will consume lots of time and money especially in the beginning and may likely not generate good returns.
So it helps to know what really works.
This post will help answer the most commonly asked questions on how to earn online passive income such as:
- What Is Online Passive Income?
- What are the best ways to create passive income?
- What are some of the examples of passive income sources?
- How can I make passive income?
And a whole lot more, so let’s get started.
What Is Online Passive Income?
“Making money while you sleep” damn, I mean I got to admit this statement has a nice ring to it.
But does such a thing really exist?
I don’t think so.
The concept of “passive income” has been misconstrued of the years to mean making money without putting in any effort.
On the contrary, for you to make online passive you will need to put in one of two things, your money, time or both.
To better understand this concept I will use the farming analogy. Now just like a farmer preps their land before planting, adds viable seeds, weeds and harvests produce, online passive income is all about planting time and money seeds.
Your nice harvest all depends on whether you planted the right seeds in the beginning.
Passive income just like farming takes some work up front but doesn’t have to be an expensive affair.
Truth is, because you are just starting out you may have little to no money to start your passive income activity.
That shouldn’t discourage you.
Ultimately the goal of earning online passive income is to make money without having to do any more work after you set it up.
What You’ll Need to Earn Passive Income
Up to this point, you’d think you could become successful at online passive income by just doing the work as well as invest time and money, right?
You require skills too.
There are a set of skills that are focused on driving traffic that are particularly important. And they can be broken down as follows:
- Copywriting for your content and headlines
- Creating optimized evergreen content consistently
- Search Engine Optimization tactics
- Basic WordPress and hosting administration
Think of these skills as prerequisites to achieving success for your online passive income business.
If you don’t already possess any of these, learn everything you need to know about traffic generation.
You can start by tinkering around the internet, buying a course or reading articles. If you’re willing to invest you’ll possess some valuable skills that will last you for decades.
The Best Ways to Generate an Online Passive Income
As mentioned earlier, not every passive income idea will make you money.
In fact, very few are worth the effort.
That why it’s never a good idea to put all your eggs into one basket. Pursuing several passive income opportunities can speed up your journey to financial freedom.
There are countless ways to earn online passive income, but I will give you the most common ones I have seen work.
1. Affiliate Marketing
Affiliate Marketing is always at the top of everyone’s list when it comes to ideas for generating online passive income.
One reason would probably be because if done correctly it has the potential to make you money consistently over time.
Also, it is one of the simplest ways to start making money online fast.
I usually like to use the example of Pat Flyn of the smart passive income blog who earns over $10,000 every single month in affiliate commissions only.
But, you cannot be successful at affiliate marketing without having an existing audience.
And that’s the catch.
If you don’t already have one, start by building a niche blog or website, create consistent content and finally drive some traffic to your page.
By doing this you start to develop a relationship of trust with your readers.
Once you have their trust it is easier for them to trust your opinion on a product or service and will more likely be ready to buy.
The best products to affiliate are:
- Digital information products (e.g. eBooks and online courses)
- Recurring Online services (e.g. Web hosting)
Depending on the niche of your blog/website, affiliate fees may vary.
2. Selling Online Courses
Online courses are one of the best ways to get paid for what you know.
If you haven’t already, you can read our post on how to create and sell online courses and find out how you can get started.
The great thing about online courses is they can be used as a stepping stone to generating new leads for your core business and earning online passive income.
If you target the right audience while pricing and packaging your message correctly you can hit a home run.
The goal here is to sell advertising on your website.
Keep in mind this strategy is not entirely passive, because it will require lots and lots of traffic for you to generate a decent income from it.
For example with AdSense ads, if your website gets 10,000+ visitors monthly you may only manage to make anywhere between $50-100 a month.
Doesn’t sound promising, does it?
Nevertheless, advertising is a very lucrative business model and that’s why it made it to the list.
The key is to rank for competitive search terms on Google which will result in attracting a continuous stream of traffic.
Remember I mentioned earlier, you need to invest in a diversified portfolio of online passive income ideas.
Well, advertising should be part of that portfolio.
4. Digital Downloads
Digital downloads simply refer to PDF, videos, word documents, and spreadsheets.
Selling them online is currently one of the most lucrative businesses on the internet.
The margins are close to 100%!! No kidding.
From product creation, distribution and marketing everything is done online.
The learning curve for digital downloads is however slightly steeper than the rest of the other ideas mentioned here.
You will need to invest time and effort into learning how to create products that your people desire then proceed to price, package and market them.
However, the best part about digital downloads is you can sell anything to thousands of people without setting up and shipping handling fees.
Best part, if you have an existing website, you can upload, sell and get paid all in one place.
5. Building Apps
I know lots of people who cringe at the idea of making apps. In reality does sound complicated.
Thanks to advances in technology it is so much easier to create apps nowadays than just a few years back.
Tools such as App Gyver have made the creation of simple mobile apps easier than ever before.
Such tools allow you to launch an app without looking a single line of code.
Building apps today is like creating websites, almost everyone is doing it. There is no reason why you should be left out.
That being said, you’ll need to be prepared to invest your time, energy and finances into the conceptualization, development, and marketing for the app.
If the combination of these three is done well, you have the potential for making a couple thousand dollars a month. Not bad for rookie hah?
Whatever app you decide to create ensure you are delivering a ton of value to your consumers.
Seeing that everyone is building an app these days, don’t expect to make millions from it, simply focus on creating something great.
6. Membership Websites
Just like online courses, membership websites give you the opportunity to get paid for exclusive content.
These two are the most popular ways to get paid for your knowledge.
The best way to approach membership websites is to offer membership as an upsell within your online course.
That means, once a student is enrolled for your online course, they can “upgrade” to membership status in order to view more exclusive content or have a one on one consulting with you.
This will allow you to charge them a monthly fee, in exchange for your content without having to rely on ad income.
The main difference between online courses and membership websites is online courses are more of a one-time purchase while membership sites offer a subscription-based service.
7. Build an Amazon FBA Business
This is another great way to earn an online passive income.
FBA simply means “fulfilled by Amazon”.
Even though it is not entirely 100% passive I’ve seen it gain so much popularity, especially in Kenya lately.
The reason is that it does take longer to set things up but once complete, all you need is to get your products to Amazon and collect your payments. This part is mostly passive.
The key to success will lie in selecting the right products to sell online, to source for them and price competitively.
Alibaba.com is a great place to start sourcing for wholesale items from manufacturers and suppliers.
Another great thing about Amazon FBA business is you don’t have to deal with fulfillment, shipping or even customer service.
Building an online passive income is not always a straight road. And frankly, it isn’t for everybody.
The purpose of this article was to allow you to make an informed choice.
Only you can decide now that you know what’s required of you to be successful.
Remember failure is not a bad thing, keep grinding and keep trying.
Online passive income won’t happen overnight it will take probably takes years.
But, only you can make it happen.
And, what better time than now 🙂