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Passive Income: How to Make Passive Income Online Today

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.

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

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Filed Under: BUSINESS, CAREER & MISSION Tagged With: amazon, financial freedom, google adsense, information products, internet marketing, kindle, make money online, making money online, niche website, passive income

ABOUT STEFAN JAMES

Stefan James

I'm an internet entrepreneur, life and business coach, and philanthropist with a passion for living life to the fullest and fulfilling my potential as a human being.

My mission is to be a powerful and passionate example of the unlimited possibilities that are available for anyone that commits their life to mastery, while sharing my very best ideas and strategies that can make a difference in every area of your life.
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ABOUT STEFAN JAMES

Stefan James

I'm an internet entrepreneur, life and business coach, and philanthropist with a passion for living life to the fullest and fulfilling my potential as a human being.

My mission is to be a powerful and passionate example of the unlimited possibilities that are available for anyone that commits their life to mastery, while sharing my very best ideas and strategies that can make a difference in every area of your life.
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Project Life Mastery

Project Life Mastery delivers the self-development advice you need to improve and master every area of your life.

We provide world-class content, training, and coaching to maximize the potential in your personal and business life. Everything from physical fitness, to emotional mindset, to relationships, to your financial freedom blend together to turn you into an unstoppably extraordinary person with an unstoppably extraordinary life.

Whether you need online business advice, personal development coaching, or both, Project Life Mastery will guide you on your best path to mastery.

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