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10 Effective Online Passive Income Ideas According to Experts (Infographic)

By The 1-Hour Workweek 4 years ago2 Comments

The business world is evolving at this very moment. Focus is slowly shifting from traditional brick-and-mortar ways of conducting business to virtual markets and online streams of revenue. It does not imply however, that business owners should abandon or totally leave their traditional businesses. Online streams of revenue simply means opening new doors to a totally new market that has attracted people willing to make purchases or conduct business through online means.

This opened new doors of opportunities for earning substantial passive income. The possibilities for earning this kind of passive income is practically limitless as scores of success stories of people earning millions through online means proved that such opportunities do exist. These online entrepreneurs have created various money-making ventures that border on pure creativity, ingenuity, and being at the right place at the right time – and the time for you to also do so is now!

The Infographic:


Active Income vs. Passive Income

Before we get into further detail of how you can earn passive income online, you must first have a clear understanding of what active and passive income streams truly are. Most people are probably familiar with earning active income, or the type of income stream where income or revenues are earned in exchange for the time and effort people exerted to perform a particular task or job. If the work stops, the income stops.

Passive income is different in the sense that people continue to receive income from their passive revenue streams even without continuously working or while they are sleeping, eating or travelling across the globe. Of course, people still do need to work hard to earn passive income but most of the work is done during startup – up until it can generate a substantial stream of revenue on its own.

If you continue to earn passive income that eventually exceed your basic needs and expenses, then you’re on the right road towards total financial freedom – and you can start building your passive income streams right now.

1) Passive Income selling Information Products

The tremendous popularity of the Internet placed overwhelming value on information, making information products a very valuable commodity that people constantly look for on a daily basis. This provided a great opportunity for online entrepreneurs to cash in and earn substantial passive income by selling information products that includes eBooks, audio programs, and video.

Amazon, that incredible online superstore that accounts for 20% of total internet traffic, sells more eBooks than what traditional publishing companies can sell. Clickbank Marketplace is another source of information products from a wide variety of niches people are quite interested in. You can get a piece of that passive income pie by becoming an Amazon Associate or a Clickbank affiliate selling information products through your websites or blogs. You can earn substantial commissions without any heavy selling work or maintaining large inventories.

 2) Passive Income through Affiliate Marketing

Online entrepreneurs can earn from 30% to 90% sales commission as an affiliate promoting and selling other peoples’ products, including both downloadable and physical products like eBooks or DVDs. All you need to do is to promote these products in your own blogs, websites, social networks and other online channels using a special link these providers give their affiliates. You earn commissions every time a product is brought through your link.

A great thing about this is you need not worry about stocks, inventories or shipping concerns as the provider performs all this for you. Your job here is to select the best products to promote (those products that can actually sell themselves and what online users are really looking for), drive traffic to pages where these products are showcased – and watch the passive income flow in.

3) Passive Income Publishing Online Ads

PPC advertising is still a big thing among Digital Marketers and up to 73% still plan on using Google Adwords for advertising in 2014 among other top online advertising channels according to the  2013 State of Paid Search Report. You can get a nice piece of this online advertising pie by becoming a Google Adsense publisher through your blogs or websites. You can earn substantial passive income when people click on these ads (just remember not to click on your ads!). More traffic to your web pages means bigger chances for generating clicks so all you need to learn is how to generate quality traffic through your quality content.

4) Passive Income through Autoresponders

iContact reported that up to 92% of adult Internet users in the world have at least 1 email account, 72% of which actively access and use email at least 6 times a day. That’s how powerful email still is as an effective digital marketing tool, and you can use this to your advantage using Autoresponders. Providers like Aweber and Get Response offer such services to Internet marketers, allowing people to build a highly targeted mailing list where they can safely promote their products and services without being branded as spam or scam. All you need to do is setup your Autoresponder with a pre-loaded set of carefully written emails which are sent to your list on a pre-determined timetable.

 5) Passive Income Selling Other People’s Products

Common products sold through affiliate marketing are information products that are delivered either as a downloadable virtual product or a physical books and DVDs. You can take this one step further by setting up your own online store to market and sell other people’s commercial products through various online channels. Online store platforms like Shopify or eBay allow you to put up pages about commercial products which you can promote and sell through a drop-ship system.

The great thing about a drop-ship system for your online store is that you need not maintain stock or a physical inventory unlike traditional stores. Products are shipped from your source using your own branding or labels and sent directly to the end user. You can choose from virtually any type of products available, including hot item gadgets that people are looking for and are most interested to buy – just provide a convenient channel for them to do so!

 6) Passive Income through Amazon Review Websites

Amazon is a great source for information products to promote and sell but you can take this one step further by promoting almost anything Amazon has in its marketplace through an Amazon Review Website. You can choose and focus on any product category and turn this as your website’s product niche. You can create individual pages for each product you want to promote, write product descriptions and reviews (or have a virtual assistant or freelance writer do it for you), embed your special Amazon Associates affiliate link – and earn substantial commissions each time a product is ordered through your links.

 7) Passive Income through a Mobile App or Game

Apps, apps, and more apps – these are some of the hottest items in the online and mobile world right now. Angry Birds was a real goldmine and the small Finland company that made this ingenious creation is now valued at 6 to 9 billion dollars. You too can cash in and earn passive income by creating (or have someone create it for you) the next Android or Apple mobile app or game and earn thousands or even millions from them through the iTunes App Store or Google Play Store depending on your preferred platform.

8) Passive Income through Kindle eBooks

People simply could not get enough information and they want more of it at a simple push of a button or a swipe of their finger. Amazon’s Kindle Fire tablet is expected to continuously increase sales from 5.5 million units in 2011 to more than 27.8 million units by 2014. Other research firms placed Kindle users at 17 million in the US and another 4 million in the UK as of last year. That’s just for the Kindle readers alone as Amazon is keen on not telling how much Kindle ebooks are sold to through the Amazon store – which can be estimated to astronomical figures if using tablet sales as reference. You can create the next best Kindle bestseller or have a professional freelance writer put your thoughts into a best-selling eBook – and earn substantial passive income that can set you for life.

9) Passive Income through Online Video

Like video more than text or graphics? Then you can turn your passion for video by creating the next viral YouTube video that can generate thousands or even millions of hits, and earn substantial advertising revenues through Google’s advertising partner program through YouTube. You can also create instructional videos which you can market and sell through your websites and online channels, establishing yourself as an expert in your niche – and earn passive income in the process!

10) Passive Income through Online Investments

People who are already earning a substantial passive income through traditional trading and investment channels can find online investments a great alternative – or an additional passive income stream. Earn up to 9 to 10% returns or more from your online investments through online trading and other high-yielding financial instruments available out there. Just be careful and read more about your choice of online investment provider and work with one who you can trust and work comfortably with.

There are more passive income channels available out there for you to explore and passively earn a substantial online income that can boost your finances or even set you up for the rest of your life. The key here is to take action and get started today. Don’t wait for opportunities to pass you by or you’ll find yourself sitting in the sidelines, counting your what-ifs, and totally regretting of not grabbing hold of opportunities like this that come your way.

So, get those Internet marketing channels churning, choose a passive income channels where you can put your energies in – and start earning passive income towards total financial freedom.


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 The 1-Hour Workweek

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