How To Make Passive Income Online


how to make passive incomeOne of the most popular questions I get from people that have watched my videos is the question, “How do you make passive income online?”  I've eluded to it several times in my videos, but haven't really gone into specifics or explained much of how to make passive income online – until now.

This blog post and video is going to reveal to you the top passive income business models that I personally have used to create financial freedom for myself at a young age.  In the video, I first talk about what is passive income and explain why you immediately need to be focusing on ways to create passive income streams for yourself.  I share the story about how I first discovered passive income, the lifestyle it's provided for me, and then share specific examples of different passive income business models that you can get started on.

Make sure to watch the video from start to finish below:

(Click here to watch the video on YouTube)

This page contains affiliate links. If you purchase a product through one of them, I will receive a commission (at no additional cost to you). I only ever endorse products that I have personally used and benefitted from personally. Thank you for your support!

Active Income vs. Passive Income

There are two types of income streams that exist.  There's Active Income and Passive Income.

Active Income is any type of income stream that is generated in exchange for your time or effort.  The moment you stop putting in time or effort, the income comes to a halt.  You have to consistently work hard to earn an active income.  The best example of active income is having a typical job.  With a job, you spend X number of hours at the workplace and in exchange you receive a pay check for those amount of hours.  If you stop working for that job or get fired, you immediately lose that income stream.

Passive Income is an income stream that is generated after only working hard once.  Once you've invested your time and efforts to create the passive income stream (an online business), your job is done.  The income generated by the automated systems that you've set up will produce a consistent passive income for you without any real-time presence.  You will continue to receive income for the rest of your life, even while you eat, sleep, travel the world… or even die.

“If it's not residual income then don't do it, because it takes you to slavery, not to freedom.” – T. Harv Eker

The concept of making passive income is commonly taught by authors such as Robert Kiyosaki of Rich Dad, Poor Dad, as well as T. Harv Eker of the Millionaire Mind Intensive.  While I learned much from both of those guru's of the idea of earning passive income, it wasn't until I read The 4-Hour Work Week by Tim Ferriss that really drove it home for me.  Ever since I did, I've committed myself to becoming financially free.

Financial freedom is when your passive income exceeds your expenses.

Passive Income Business Models

In the video above, I gave specific examples of passive income business models that I personally have become successful at.  I mentioned 5 total online passive income streams that are pretty straightforward and quite simple to apply.  Anyone can do it – no matter what your experience with computers or technology may be.  Make sure to watch the video to see the website examples of the different business models.

1. Information Products

An information product is any type of product that provides information that the purchaser is seeking.  The example I gave in the video is that when people go to Google.com or any search engine, they are looking for information.  You would provide the information as a product on your website in the form of an e-book, audio or video program.

For some examples, go to the Clickbank Marketplace and you can view all of the information products people have created in the many available niches.  All of these websites and information products are designed to solve peoples problems.

Business is solving peoples problems at a profit.

While creating information products is a great way to make passive income online, it can take some more time than the other business models mentioned.  For an information product, you'll need to create a website, sales letter, a digital product, as well as do the marketing and traffic generation.  It does require more skills and some experience, but it's the best long-term and steady passive income stream mentioned here.  This business model also has the most potential to earn the most money over the other ones too.

Information Product Training Programs:

If you're looking to get started and learn more about creating your own niche website and information product, then I recommend checking out Niche Profit Classroom or Internet Business Mastery.  I've personally been through both programs and have learned a lot from them.  I also personally know the guys that run these training programs and can say that they genuinely care about helping people succeed online, as they've helped me build my information product niche websites to where they are today.

2. Affiliate Marketing

Affiliate marketing gives you the ability to earn a commission for promoting other peoples products.  Most information and physical products online have an affiliate program that you can sign-up for.  When you sign-up, you're given a special link to promote that product with.  Anyone that buys that product through your link will earn you a commission.

As mentioned in the video, you could easily create a simple WordPress blog that has a few reviews promoting a product on Clickbank.com or any other affiliate network.  You'd then get the blog to show up in Google for those specific keywords that people are searching for, the visitor would then view your blog, and then click your affiliate link to purchase the product.

You can also do affiliate marketing through a YouTube video (as mentioned in the video), a mailing list, or even through social media.  In my opinion, affiliate marketing is one of the best ways to get started as you don't have to worry about creating your own product, sales letter, or dealing with customer support.  Your only job is driving traffic to the person's website.

Click here for the Clickbank affiliate marketplace.

Affiliate Marketing Training Programs:

The only affiliate marketing training program that I really recommend is Bring The Fresh, which is run by Kelly Felix and Mike Long, two amazing guys who really care and know their stuff.  They have step-by-step video's that take you through each step to finding a niche, keyword research, setting up the blog, putting up content, and then getting search engine traffic to it.  I have several websites I've set up by using their program that make me a nice passive income online.  Highly recommended for anyone starting out.

3. Amazon Review Websites

This method is essentially the same as affiliate marketing, except you're promoting Amazon products.  Amazon has an affiliate program that anyone can sign-up for that allows you to promote any product on their website.  You can sell TV's, Computers, Books, Movies… anything.  With Amazon, you don't get the same commission structure as an information product (mentioned above with Affiliate Marketing), but if you promote expensive products such as TV's or Computers, you can really make a lot of money even if the commission is quite low.

The strategy here is the exact same as the Affiliate Marketing method mentioned above.  However, there are a few other strategies that you can implement to really be successful at Amazon Review Websites, mentioned in the training resource section below.  This type of method is also really great to plugin to your existing website.  For example, I make a small commission off of this Eckhart Tolle – The Power Of Now Review on my blog that directs people to buy the book from Amazon.

Click here for the Amazon Associates affiliate program.

Amazon Review Websites Training Programs:

The only Amazon Review Website training program that I've been through is Chris Guthrie's Niche Profit Course.  On his website, he shares how he has made over $1,000,000 from promoting Amazon products, along with the proof of how he did it.  A great program worth checking out if you want to get into promoting Amazon products.

4. Kindle Book Marketing

This is probably one of the easiest ways on how to make passive income online.  You're essentially leveraging the Kindle store on Amazon and putting up your own e-book for people to purchase and download.  The secret to this method is doing the correct research and making sure that your Kindle book is optimized in their search and recommended product list.  The example I use in the video is by leveraging the trending “Steve Jobs” and creating a Kindle book that related to Steve jobs.  For example, you could easily create a Kindle book called “Top 10 Success Principles Of Steve Jobs” and sell it on Kindle for a couple bucks.

The only downside to Kindle is that the potential to make a lot of money isn't as high as creating your own information product or doing affiliate marketing, but it's still a great, easy, and simple way to on how to make passive income online.  Amazon and Kindle does all of the selling for you, all you have to do is put the Kindle book up on their marketplace.

Click here tor the Kindle Direct Publishing page.

Kindle Book Marketing Training Programs:

By far, one of the best Kindle marketing training programs available is Kindle Ritual Training by Brian Johnson.  The program is designed for total newbies and intermediate marketers.  I've used it and as of right now have about 12 Kindle Books up and running that make me a nice passive income without having to do anything.  In my opinion, this is one of the best ways to get started as a newbie, and as mentioned in the video, you can quickly create Kindle books without any costs involved and start making money within a few days.

5. Google Adsense Advertising

This was more of a quick bonus added in the video, but the method is simply adding Google Ads to your blog or website.  When people visit your website and click the ads, you get paid by Google.  Simple as that.  Very easy way to make money, but the amount of money you get paid for someone clicking the ads depends on how many advertisers are bidding on them using Google Adwords.  There are some people that only have Google Adsense on their website or blog and do quite well, while others simply add a few of the ads to their website as another stream of passive income.

Click here tor the Google Adsense page.

Google Adsense Advertising Training Programs:

I personally haven't used any specific type of Google Adsense training that I can recommend to you.  But, you can pretty easily set them up to any blog that you create using the Bring The Fresh program.  If you're interested in setting up a blog, similar to Project Life Mastery, you can do that and then add Google Adsense to it or use some of the other methods outlined in this how to make passive income online blog post.  The best program I've been through for creating a blog is Start A Blog That Matters by Corbett Barr.  I'm in the same mastermind group as Corbett, and can say that he is a quality guy that really knows a lot about blogging.  I've personally used it and modelled many elements of Project Life Mastery from his program.

Making Money Online Is NOT Easy And Requires Hard Work

I know that I probably have made it sound very easy and simple to make money online.  I want to set some realistic expectations for you.  Just like anything else in life, in order to become successful at something it requires hard work and dedication.  All of the methods outlined here aren't “get rich quick” schemes or anything of that sort.  They are all tried, tested and true methods that I've personally used to make a passive income online.  But, it didn't happen overnight for me.

To become successful at internet marketing and making passive income online, it requires action.  Anyone that tells you otherwise is selling you false hope and trying to make money off of you.  It personally took me a year before I started making money online, but hopefully this doesn't have to be you as I can share with you the best of the best of what has helped get me to where I am today.

Making a passive income online is NOT impossible.  Anyone can do it, no matter where you're coming from.  I'm living proof of that, along with thousands of other internet marketers out there.  If you're committed to it, you will be successful at it.  The biggest challenge is making your first dollar online.  Once you've done that, you're 95% of the way there and things really start to accelerate.  That's when momentum kicks in, you've gone through the process, and you can scale things up faster.

Online Passive Income Resources

I've included here some additional online passive income resources that I've personally used to build my websites and different passive income streams.  I will say that everything that I recommend to you on my blog is something that I have personally used and have benefited from.  If I didn't use it or received any value from it, I wouldn't be recommending it to you.  You can put your trust and faith in me that everything I recommend on my blog is completely legit and works.

  • GoDaddy – The #1 domain name registration service.  All of my domains are purchased through them.  Domains as low as $9.99/year.
  • Hostgator – All of my websites are hosted on Hostgator.  Hosting starts at $3.96/month.  Easy to use, 1-click automatic WordPress installation, and amazing customer support.
  • WordPress – Free blogging platform that is easily customizable with wonderful support.  All of my blogs and websites (including this one) use WordPress.
  • Clickbank – The #1 digital products retailer.  All of my products are on Clickbank and I also promote many other Clickbank product as an affiliate (see below).  Also comes with an affiliate program so others can promote your products.
  • Market Samurai – The best keyword research tool available.  This software will help you be able to discover what niche or website to get into and do all the research required to be successful.  They have free video tutorials on their website.
  • Google Adwords Keyword Research Tool – A tool that will help you to do basic keyword research and find out the popularity for certain keywords, as well as the competition.
  • Unique Article Wizard – The best article marketing and article submission service that creates backlinks to your website to increase Google and search engine rankings.
  • AWeber – The top email opt-in service and email marketing/broadcasting tool.  This is what I use to build my mailing list and newsletter.
  • Google Analytics – Google's free website tracking and analytics tool.  Allows you to track all the stats and activity going on in your website.
  • Google Adsense – Allows you to make money by placing relevant Google Ads on your website that are generated by advertisers using Google Adwords.
  • Google Adwords – Allows you to place ads on Google to generate traffic for your website.  This allows you to target specific keywords and locations to have your ads displayed to your target market.
  • Odesk – You can hire web designers, programmers, graphic designers, or anyone to do any virtual work for you abroad really inexpensively.
  • Fiverr – Get work done for only $5.

This page contains affiliate links. If you purchase a product through one of them, I will receive a commission (at no additional cost to you). I only ever endorse products that I have personally used and benefitted from personally. Thank you for your support!

Get Started Today

Are you sold yet?  The sale isn't for me, it's for YOU.  I'm living my dream lifestyle and am financially free.  And it's all because I made a DECISION that changed my life forever.  I finally decided and committed myself to doing whatever it takes to achieving financial freedom.  I was sick and tired of being an employee and being a slave to a job.  I had enough of making active income in my business, stuck running around in the rat-race.  I wanted freedom.  I wanted choice.  And I was prepared and willing to do whatever it took to get there.

Looking back I am forever grateful for the decision that I made years ago.  I wouldn't have this blog, Project Life Mastery, and wouldn't be sharing with you these videos and blog posts.  I wouldn't be getting to do what I love, living life fully, and pursuing what truly makes me fulfilled.  And that's what I want for you.  I really hope that this blog post and video really kickstarts you to pursuing passive income and becoming financially free.

I just wanted to finish off by saying that I'm here for you not only as a guide, but as a friend.  I do my best to respond to emails and  answer peoples questions, but it's become more and more challenging as my blog has gained popularity.  There's nothing special about me.  I'm just someone that has refused to settle in life and have committed myself to being the best I can be, while providing value to others.

Thank you so much for your support.  Don't hesitate to reach out to me on my Facebook Page or Twitter, I'd love to stay in touch and hear how things are going for you.

stefan pylarinos

P.S. If you found this page helpful, please click the “LIKE” button below.  Thanks!

How To Make Passive Income Online
4 (80%) 10 votes
  • Seth B

    this is a topic im curious and interested in, simply because the daily commute, work, and return commute takes up so much of my time. i want passive income, and really want to learn more about it. this did help a little bit. i’m not fully on board yet, nor have i swore off being receptive to this idea yet. i’m very interested in improving myself and bettering my mindset to improve my quality of life, from health to more comfortable financial freedom to allow me to travel. as for coaching, i have some interest in that as well because i share passion about that as well. to leverage myself better, i feel like i need to follow some of your footsteps and use some of the same tools, follow some of the same people. and the one thing, for now, that keeps me coming back is being able to satisfy my curiosity about this one topic, passive automatic income a system that just runs in the background so i can start to see results and actually see how “real” this strategy is. when it becomes something i take action on and build from like a foundation, the other stuff will just be more cultivated from there. i may also want to enter a bodybuilding/figure competition, not as a career just to say i did it once. but overall i do want to be healthy and promote health especially nutrition like organic whole foods. i want to make videos, yet don’t yet own a camera, but i do know vlogging or blogging is something i could enjoy doing on a regular basis once i get my feet wet. i think i found you the first time from your morning ritual video (where the hell is my marker/pen) haha, but it was your step by step hour of power programming to an improved life. i’ve gotten myself this far on my own, the area i desperately need assistance is the passive income, so that i can take myself leaps and bounds further, funding my passions. that’s why i’m leaving this comment. to give you feedback on who i am and what im looking for. truthfully i only watched the video, yet do want to study this whole blog by the end of today. thank you for posting this and sending it to my email.

    • Hey Seth, thanks for the comment – you definitely sound a lot like me and we can relate on several things. Passive income was just something that was out of my reality a few years ago, but the more and more I heard about it from all my mentors, the more I knew I had to take action and do something with it. I knew it was for me. Sure enough, I applied the stuff I learned from the different programs I recommend in this blog post, and 2-3 years from starting I am financially free at 26 years old. Not only that, but the majority of my friends are top internet marketers now and have reached levels of success that I personally can only dream of (but will be there in sure time). I’m also part of mastermind groups with some of the top internet marketers, some of whom have made millions of dollars in a 24-hour period doing product launches.

      Anyways, all I can say is that it’s been one of the greatest gifts of my life and has transformed my life in many ways. The life I get to enjoy because of discovering the concept of passive income at an early age is really going to change my future for the better. Many things would not have been possible without it, so I feel blessed. And again, nothing special about me, I just set a goal and took action towards it.

      Good luck, hope this blog post helps you and let me know if you have any questions.

    • Mary

      Seth, that was a great comment. The learning curve is high, but it is interesting. Also, it is people like Stefan that keep us going because they take the job to be our mentors! THANK STEFAN!
      I just wanted to say that you have what it takes. I say this because you took the time to write that amazing comment. That shows that you will involve yourself in your new journey.
      Most people don’t know how to give that much. Or they don’t see the importance of it. I wish you good luck!

  • lisa f

    I honestly didn’t understand the difference between passive
    and active income, but from reading this I can say I do understand it a lot
    more now. I knew that there are millions of people who are living solely on
    passive income but I find that a bit risky because of the fact of some people
    not being able to be consistent. Which is where the hard work comes in! Whoever
    said that work should not be hard is absolutely wrong!! I feel that if you
    chose to only live on a passive income, then you should at least put in some
    type of work to help move along with your process. Personally, I don’t think
    that I can just have the passive income and that I need to have both the active
    and passive. I don’t know if I would try the passive route now, but I do know
    that I will one of these days. Thank you for the information and thanks for
    being there for other people who really need the guidance to accomplish what
    they want.

    • Hey Lisa, I’ve found by making passive income it really allows you to be ABUNDANT and not have to worry about security or money as much. This has allowed me to focus more on SERVING and fulfilling my purpose, not just with work, but in other areas of my life. Active income is okay to do, and I do it as well obviously, but you don’t want to DEPEND on it. If you HAVE to work to survive, that is not a good place to be – it is limiting your life in so many ways. For me personally, the ONLY active work I am involved in is something that I enjoy doing and that I WANT to do, which is having a few coaching clients and blogging right now.

  • Hi Stefan
    Just saw your blog today and did laugh at your regular loss of the pen
    I liked your passion and I like your style..
    I’m in Australia and maybe it’s ‘cos your Canadian :-); a lot like us Aussies
    I totally ‘get’ passive income and understand active income is a means to an end and not the way to life enrichment in it’s many forms
    Thanks for sharing and I will be tuning in more

    • Hey Dee, yes, I definitely learned my lesson from my morning ritual video!! Thanks for stopping by. 🙂

  • David

    Hi Stefan, I too found your morning ritual video inspiring. I’m going to look at bringthefresh based on your recommendation as I’m completely new to affiliate marketing. I launched a website last October related to a niche that I’m passionate about, I’m just tring to build that up and drive traffic. Thanks for this blog it’s extremely useful

    • Thanks David. BTF is great, will help you build traffic and do SEO. Good luck!

  • How funny is it that I wrote as a goal in the 100day challenge
    that you recommended,that I was going to learn about the “Passive Income” business and it was my task for today.
    Then I wake up, and I see this email, how ironic, I guess the universe heard my request.

    But great video, and I like the point that you said about it’s not easy.
    I think that’s a big misunderstanding in this business and in life in general that
    we have to put allot of work if we want to see good results and nothing comes easy.

    And that it’s also important to have “passive” income on the side so you don’t get “stuck”
    in life.

  • Yes another fellow Stefan, thank you brother for your information, i am really interested on this topic. where is the best place to learn about making a website? i am a total beginner

    • If you want to create a blog, I’d check out the Start A Blog That Matters program. Otherwise for general internet marketing, check out Niche Profit Classroom.

  • Abrar Satar

    Hey Stefan,
    I was wondering what your opinion is on MLM products. I am currently looking to start working with one for automotive applications. I really like this post because it has helped greatly in the beginnings of getting started on posting on the internet.
    Keep up the good work.

    • I don’t like MLM at all! There’s too much selling your friends/family and a large networking component, which is too active for me. Also MLM’s are designed so that people at the top profit the most, whereas 99% of people fail with it and move onto something else.

  • raha

    could you please put the videos for download?…thanks

  • Danielle

    Hi Stefan, Thanks for this I’ve been wondering what exactly passive income was and your video was really informative. Can you tell me how I would go about making a website? And how do websites make money, for e.g. Facebook, is it just through advertisements? Thanks!!

    • If you want to create a blog, I’d check out the Start A Blog That Matters program. Otherwise for general internet marketing, check out Niche Profit Classroom.

      Websites like Facebook make money through Facebook advertising. Google makes money through Google Adwords, people advertising on Google. A website can make money in a variety of ways, from advertising, affiliate marketing, or having your own products.

  • Leo Tran

    I think that God made this blog, not human! extremely useful, helpful, hopeful and cheerful. I Must start with a paper and pen now to rebuild my life. Thank you so much Stefan! the best of the best

  • Seungkee Brett Baek

    Hey Stefan,

    thanks for the post and your post is what made me decide to choose the path of online marketing for my passive incomes.

    I have been a private high school tutor for several years so I decided to create a blog that will help students get through their studying certain subjects at school by posting tutorial videos/posts on math, chemistry, physics, etc. So my niche will be high-school studying… It’s an area that I am competent at but I just don’t see myself selling many products related to studying. Any suggestions or creative ideas on how I should build a lucrative blog around this theme?

    • You won’t be able to sell any products to the students directly, as they don’t have credit cards and most likely aren’t able to make purchases online. You’d have to market to the parents somehow, which I don’t know if they’d be looking for that kind of stuff for their children. Otherwise you could potentially do advertising on the blog, but it’s a big “maybe” if it’d be profitable.

  • Will you be doing any training sessions on how to do this?

  • Teddy

    great tips. ? how do I start a blog site if I did decided to become an affiliate for a product or simply to set up a review site

    • You’d need to set up hosting, I use HostGator. A domain name. And also to use WordPress. It’s fairly easy to set everything up, but I share all the resources I use in this blog post, which has programs to show you how to do it… as well as the “Resources” section of my blog.

  • Mary

    Hi Stefan, I really like your style! I have been so unfocused and have recently had to become focused on monetizing my blogs and starting a list.
    I really want your kindle program but I have found that I get nothing Done with too many projects at once. Yet ebooks are the next step in my niches.
    I did have a question about your kindle training.
    Is there a large investment to create an ebook? I understand that we will need graphics but how does it become an ebook? Does the training include how to market it on our websites as well?
    And is there a investment into marketing the ebook? does it require software?
    Also, do you plan on creating any training on how to do screen-capture, powerpoint and audio? It is very difficult to find training on the “mechanics” of creating media.
    You are a great teacher and that isn’t always easy to find.
    I really appreciate you and am glad I found you! Keep up the good work! Mary
    PS sorry for the verbosity!

    • I spend anywhere from $25 to $50 for my Kindle books, including the cover. I show how to do it all in my course. It includes how to market the book, but mainly how to do it without a website or list/following, as most don’t have that. No other investments, unless you want to outsource things or hire a VA to do it for you. No software required. Check out my Resources section of this blog, I share what I use for screen captures, it’s fairly easy to learn! Good luck.

  • Kostas Pap

    Hey Stefan, you do a great work bro!
    I have some question for you. I am interesting to buy your kindle money mastery but please can you tell me something about the taxes. I’m from Greece and I don’t know what amazon needs from me for an account. It wants a business tax ID, just my personal tax ID, I have to pay taxes on US, on my country? Please I am a little confused and any help of you it will be highly appreciated! Thanks!

    • Hi Kostas, if you are outside of the US (I’m in Canada) you have to file a w8-ben form to get rid of tax withholdings. Otherwise Amazon will deduct 30% for taxes. When you submit the tax form (you have to do this with all internet businesses by the way), then they don’t withhold any of the money and you have to file the taxes in your own home country (Greece). I have a video on this in the Bonus section of the KMM course. It’s very easy to do, and you don’t even have to do it right away anyways… you can do it down the road, just before Amazon starts paying you.

      • Kostas Pap

        Thank You for your reply Stefan! That’s great! If you have it on Video on KMM then by your directions will be easy for me to do it! Thanks again!

  • Thomas Daniels

    Great stuff bro, i just started online like semi full time, thanks. This clears it up more.

  • Herb

    Hi Stefan, I think you are the best person I found online. You are now my No.1 person to follow.

    Anyways, if you are to rank Kindle Publishing and Affiliate Marketing in terms of easiness to start, Kindle Publishing would be first, then Affiliate M would be second. And you can use Kindle Book to generate leads for your Affiliate M. If we are just to start, you would suggest learn Kindle Publishing first, then Affiliate Marketing second. Please confirm. Thanks.

    • Yes, start with Kindle publishing, then affiliate marketing. Kindle publishing leads into affiliate marketing and is much faster to start earning from.

  • barry

    amazon affiliate asks for address on blog , can you then link from many blogs or do you have to join for each seperate blog ?


    • I think they just want 1 to confirm things, but you can link from multiple ones as far as I know.

  • barry

    do you know if you can earn affiliate money from linking to youtube videos ?

    • No, you can’t earn money linking to YouTube videos – but you can create YouTube videos and then link from those videos to other products and earn affiliate commissions from that.

  • Herb

    Hi Stefan, have you ever used paid traffic? Do you have any advise on how easy or hard to do paid traffic? Any word of caution? Any product you recommend on this?

    • Hey Herb, yes I use Facebook ads and Bing ads, as well as some private advertising. Only do it if you have a high converting offer and upsells and sales funnel set up. You gotta make sure you get a return on investment for much you’re spending.

  • mika

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  • Daniel Stohl

    Hi Stefan,
    Thanks for this. Purchased K money mastery recently and currently waiting for my first ebook to come back so I can publish! Looking forward to the next steps!

  • Minaxi Tiwari

    Hi Stefan, I was depressed and surfing internet to find some content to be positive and to boost my positive energy. While surfing i had not realized i would come across your blog and will read it thoroughly….It is very well planned and nicely structured life plan…Thank you so much i wish my life has a change after i adopt the plan. Thanks

  • Just found this blog after watching one of your videos. Useful info many thanks for sharing. https://www.youtube.com/watch?v=1lp_nDizoEM