How to Build Passive Income On the Internet?
The internet is the new gold rush and without doubt, it is the new frontier that you have to master in order to create residual income with minimum amount of investment of time and money. This is a revolution happening right before your eyes—new millionaires being born even as you read this book. It is just the beginning of the new wave of wealth creation.
Such unique opportunity happens only once or twice in your lifetime. You will have to grab this opportunity with both hands or you will regret for rest of your life.
Why Build Residual Income on the Internet?
The reason why you must start building residual income using the internet is because it is revolutionizing the way we think, work and shop.
- It is the most Powerful Media much bigger than television
- It is the Biggest Market Place
- It is the Most Profitable Business
- It is Getting Bigger Every Day
- Internet Business Never Stops 24 hours 365 days
- Requires Very Little Investment and hence No Risk
- It has created more Millionaires and Billionaires than any other opportunity
- It is for everyone
- You can automate your business very easily to create residual income
There was over $250,000,000,000 generated through sales over the internet last year. This figure is growing exponentially each and every year. Even if you are able to capture 1/1,000,000 part of this business, your earnings will be $200,000 per year. How many shares are you prepared to capture?
Once you build your internet income, it will provide you with passive income and freedom of time to travel the world in style, meet people and share your ideas.
Online Passive Income Ideas
There are hundreds of ways to make money on the Internet. Your aim is to find a business that can be automated easily.
Some of the methods you can use are:
Affiliate Marketing
This is passive income derived from setting up a blog or website that pre-sells a company’s products; you provide reviews and information that drives traffic to your affiliate link and you get paid by the company if someone buys the product from your affiliate link.
The trick is to find products that are not only popular but pay good recurring commissions. This will create a monthly residual income for you once a sale is made. One such example is: selling a monthly subscription to a membership site. You could also find products that pay multi-tier commissions, and get paid if your affiliate makes a sale.
You must also look at the sales page of the product you are promoting. If the sales page of the product you are promoting is not a good one, then your conversion rate will be poor. This means that if you refer 1000 visitors to a sales page through pre-selling on your website and only a handful convert, then your effort will be in vain. If a sales page converts well then you will make more money for the same amount of effort.
Information Products
People search the internet to find information or solution to their problems. They may be looking for information on weather, health issues, travel information, holiday destinations, cheap tickets, relationship problems, how to make money or how to fix a problem.
Human appetite for information is insatiable. They also come on the internet for socializing, fun and recreation. You can create information products to satisfy these needs. You can create a software, report or a book to help them solve their problems and sell it on the internet.
What are the Benefits of Creating an e-Book?
- Low cost– The cost of creating an e-Book is extremely low. Once you set up the website with a good sales page, you can make sales 24 hours, 7 days a week for years to come. You can also take advantage of Clickbank or self-publishing platforms like Amazon to market your books.
- Books are Easy to Create– All you need is an e-Book creation software. You can create a short report or a book in a few days. A large book may take a few months or years to write. It is better to create short e-Books of 30–40 pages with no fluff. You must write a book to the point and on subjects that people are searching on the internet.
- Add an Affiliate Program– It is easy to add an affiliate program to increase sales of your book by sharing the sales revenue with people who promote your book. This will greatly increase your residual income.
- Promote Affiliate Links– You can promote affiliate links of related products from within the book to increase your residual income even further. In this book, I have added links to some of my website and other books that are not only relevant but will also provide value addition the reader of the book.
- Resale Rights– You can charge a fee for allowing resale rights to people. Once they buy the resale rights, they will be able to sell the book and keep 100% of the profits. The advantage to you in this arrangement is that you get to keep the affiliate links inside the books and if a sale takes place then you get to keep the profits.
- Free e-Books– Anything free on the internet gets downloaded very fast and goes viral. Writing a free e-Book with affiliate links inside the book is a great way of creating residual income. It is so convenient that you will not be able to stop your residual income even if you want to stop it once your e-Book goes viral.
Note – Writing books establishes you as a knowledgeable leader in your field. There are spinoffs such as speaking assignments, consulting and TV shows. As your fandom shoots up, you can recommend related products and earn affiliate income by sending emails to your client base.
You can also convert your eBooks into printed books, audios & videos for additional income.
By being smart, work done once can result in multiple streams of income.
Creating Software Products/ Applications
You don’t have to be a software engineer to create a software product. All you need is a great idea of what people want to do faster and easier.
The best example is Bill Gates who created the Windows Operating System. Everyone who has a PC needs it—you could do the same on a smaller scale.
Once you have an idea, you can go to a software developer to develop that product for you. If you don’t know any software engineer to execute the job, then you can go to elance.com or guru.com and post your requirement. Software developers will give their quotes and you can hire one of them after determining their credentials.
You get paid to solve problems. The bigger the problem your software can solve, more you can charge people. Start by solving small problems and then graduate to developing software for more complex problems.
There are plenty of problems in this world that need solving. I am a real estate investor and I use a software for analyzing properties, accounting for my properties, calculating depreciation rates, making presentations to the bank for getting loans, analyzing cost of mortgage, managing tenants & checking if rents are paid. I pay for the software which someone has developed. I need this software for saving time.
Some of the software I use do not have the functions that I need. Here is an opportunity for me to create new software with enhanced functions that will help other property investors who are facing similar problems.
If you look into your daily life you will be able to analyze what functions you need to automate to reduce your workload. You can develop a software to automate those functions and market it. But before you start developing a software, check in the market place if such software with the functions you need is available otherwise you will be reinventing the wheel.
Creating a software will not give you a residual income – you will have to learn the skill to market the software. Clickbank is a great place to start because it is a market place where you can recruit hundreds if not thousands of affiliates to promote your software product on profit sharing basis.
Advertising Income from Websites/ Blogs
People google to find solutions to their everyday problems: medical concerns, relationship issues, holiday recommendations, malfunctioning gadgets or product reviews, there are a million of problems that need solving! Each one of us has some unique skill to help others. You can start a blog or make videos to help people solve their problems.
You can generate residual advertising income from your website if you have organic traffic coming from search engines. You can offer advertising or banner space to various advertisers for a fee or revenue sharing. Some great programs on the internet are : Google AdSense, Info link, Chitika, etc. You can earn decent income from your videos by posting them on YouTube on revenue sharing from advertisements.
Create a niche website with great content and build backlinks so that search engines not only find your website but also rank you high in the search engines, which will drive traffic to your website. Your residual income will increase in direct proportion of the traffic to your website.
You can also generate advertising income by allowing placement of ads in your Newsletters or E-zines and e-Books.
You can use material from your blog to create eBooks and videos. The trick is to create original, unique content that provides value to your visitors. If your content is not original or does not provide quality information to help solve problems, then this will not work. You don’t have to be a great writer – just write from your heart. There so many fake people on the internet and they fail because they are not genuine. Creating residual income takes effort and time in the beginning but it is worth your effort. You have to master the medium and that takes a bit of time.
Create Membership Site
You can create a membership site and charge a monthly membership fee for accessing information on your website if you are an expert in a field. People will pay for your knowledge, resources you offer and the support you provide. The more members you gain, the more residual income you make. You can increase membership of your site by offering an affiliate program wherein you share your monthly revenue with people who bring in new members to your site.
Because you are an expert in your field, you can also recommend other affiliate products and services to your members, from which you earn commissions.
There are excellent software programs on the internet that will help you create a membership site in days.
Pay Per Click Campaigns
You can earn a good passive income by setting up a Pay per Click campaign using Facebook, Google AdWords, YouTube or Instagram for some high paying popular affiliate products that are in demand. Once you set up a campaign successfully you can generate excellent passive income from it.
I do not recommend this program for a newbie on the internet who does not have good knowledge of marketing using paid advertising. You can lose a lot of money if the campaign is not set up correctly or you don’t have the understanding of analytics of monitoring your return on investment.
Before jumping into PPC advertising, you should take the trouble of educating yourself on how to set up a successful campaign. There are several great books and training videos on the subject. Take the trouble of educating yourself before spending your hard earned money.
When starting out, you should experiment with a small budget. Once a campaign is successful and starts generating profits, you can scale up to increase your budget and your profits. Once you set up the campaign properly, it can generate residual income for you with very little monitoring. You scale your budget and increase your profits progressively.
Email Marketing
Email marketing can be a source of passive income once you have created a large email subscriber list. There is a saying that you will earn a minimum of $1 per month from each active subscriber in your mailing list. Building an email subscriber list can be a very successful strategy on the internet.
I have covered only a few strategies of generating residual income on the internet. These are not exhaustive and will change as the internet evolves. There is very little investment required to generate residual income on the internet and hence, there is very little risk. It also gives you time and movement flexibility.
You can operate and monitor your business from anywhere in the world where there is an internet connection. In addition, the whole world is your market place. You can sell your product anywhere around the globe.
It takes time and effort to master this medium but once you get it right, there is minimum amount of effort involved in generating passive income of your dreams. Most people fail because they tend to lose focus and jump from one opportunity to another. When it comes to the internet, one can get distracted easily because it has so much to offer in terms of information, entertainment and social interaction.
Action Steps to Create Passive Income Online
I have discussed various residual income opportunities but nothing will come of them if you don’t take action. You have to do independent research based on your knowledge and passion.
Find a business that is best suited for your temperament and situation. You can convert your knowledge and passion into dollars. Don’t fake it, be real. Each one of us is born with some unique talent and we experience life in a manner that is unique to us – we have to share this unique experience with others to earn money on the internet.
Next, you must find a business model to share your unique knowledge, talent and experience.Focus on a business opportunity that can be automated. Buy the best product that teaches you the technique, then simply focus and don’t stop till the money starts to flow in.
