Another key element to online passive income, as with most businesses, is that the time and energy invested up front must create a valuable product or experience for people. Free market economies work based on voluntary choice so you won’t get paid unless you provide a value that someone is willing to give you cash for.
If you are interested in earning passive income online there are numerous options to choose from. Each of the passive income examples below assume you are web savvy or own a web publishing platform like a blog or video channel but they are great ways to secure passive income.
1. Make Money Using Adsense
Making money through Adsense can be very beneficial if you have a website, blog or a YouTube channel. The model works like this: every time you post content on your blog, website or YouTube channel, an advertisement will show. You will receive money whenever people view your advertisements as well as click on them. The model can also be scaled. The more traffic you have, the more money you make. As time goes on and your platform grows, you’ll being to make more money through Adsense.
Some people even make more than $6,000 a month in passive income through Adsense. However, in recent years there have been complaints that Google takes up to 45 percent of your advertisement revenue. Also, there is tremendous downward pressure on advertising rates due to the explosive growth of content providers in the past few years. In other words, the Adsense marketing industry is tightening so you will need to factor this into your plans accordingly.
2. Use Online Affiliates to Make Cash
Online affiliate marketing assumes that you have a blog or other online publishing platform. How this works is you provide content (an article or video) and drive traffic to an advertisers link. If your viewer signs up for something or buys something, you will get a cut of the profits. This is often a good way to make money, especially if you believe in a company’s service or products? Many publishers bring in five figures a year through their work as an affiliate alone. For example, Harash Agrawal at ShoutmeLoud has generated something like $80,410 in affiliate income over five years.
3. Receive Commission for Your Writing
Being a writer has many perks. Sure you could write articles for clients on a pay per article basis, but wouldn’t it be nice to make money whenever someone reads your articles? This option for involves writing the article for a website or sites, retaining all rights, but only making the income the article generates from pay-per-click to page views. While the initial return on this model can be low, it will allow you to build up your passive income if you publish enough high quality articles. Some articles generate more initial interest than others and some articles may be seasonal in nature. The websites offer payment when money in the account reaches a certain dollar amount.
A good place to start with this model of passive income is Infobarrel. Infobarrel has decent buzz, page rank and author payout. Several of the other past favorites in this niche, such as eHow, are no longer compensating authors.
4. Start a Business on Fiverr
This option is fairly easy if you have a product or service you can offer quickly. With Fiverr, you put up a blurb saying you will perform a service for $5.00 then people buy your product or service. So how can you make this passive rather than active income? You can offer to provide the users information in eBook form. Offer to send then a detailed document on how to increase their sales by 250 percent. To pull this idea off, you will need to have a finished product complete and whenever someone buys your product or service, you simply send them the information that has already been laid out in your eBook. This way, the only thing you have to do is hit the send button. There are many individuals on Fiverr that do the exact thing and make good money!
For more on this consider checking out our other articles on passive income, including how to generate passive income, how to make passive income, best passive income jobs, and ten ways to make passive income.
Photo: Flickr: 401(K) 2012