What is Passive Income

Did I ever mention how I made my first dollar online? No.  I made it using the affiliate marketing business model.

If you’re not familiar with affiliate marketing, it’s where you promote a product, and when someone buys it, you earn a commission.

What made making money online even sweeter was the fact that it was passive income or what some might call residual income.

What is Passive Income?

It’s income you earn while you’re sleeping, weeding the garden, putting your little one down for a nap or you could be across the country on vacation.

Here’s How It Works

Let’s say you’re someone who loves cooking. You start a blog about cooking. You share reviews on the kitchen gadgets you use that makes cutting and chopping vegetables a breeze.

You write informative blog posts about the best blenders, food processors, mixers and other small kitchen appliances.

Along with your article reviews and blog posts, you create videos where you share quick recipes using the tools you discuss on your blog and you post them to Facebook, Youtube, and on your food blog.

You’ve partnered with Amazon and you’ve chosen to promote the Cuisinart line of products.

When you partnered with Amazon you were given a unique identification number, which is known as your affiliate ID.

In your blog posts, article reviews, and within the description area of your videos you provide your unique affiliate ID.

Whenever someone clicks on your link, they’re taken to that product page. From there they purchase the item, and voila!

You’ve earned a commission.

So How Does It Become Passivestudent-849825_640

Each review article, blog post, and video that you create is done only once. You might create multiple blog posts and videos, but you’re only creating each content item once.

And remember that unique affiliate identifier is included within each item of content, even when you add your videos to Youtube and Facebook you’re adding your affiliate ID.

Whenever someone clicks on those links, they’re taken to the product page and whenever they buy the product, you earn a commission.

Let’s say you’ve been building your content for over a year. You do a review article once each week along with a new blog post. You also create a share one video each week.

At the end of the year, you’d have 144 pieces of content.

You have people who know your blog and subscribe to get new updates who buy items through your links, and there are those people who’re just discovering your blog and your videos on Youtube.

And once they like what they see, they start buying items too.

Do you see where I’m going with this? As long as your content exists, people will continue to find it, meaning you never run out of customers.

And as long as your links are active and someone makes a purchase, you earn a commission.

It doesn’t matter if it’s a month after you’ve created a new article review or blog post or video. It could even be a year or five years from when you created it, you still earn commissions.

So essentially, you’re doing something one time and getting paid for it, over and over again.

That’s what passive income is!

Passive Income Earning Business Models

In a previous blog post, I discussed the different Internet business models.  Be sure to check those out.  Now, let’s see which of the Internet business models involve earning passive income.

  • Blogging: You earn passive income through the sale of products that are linked to from the content sources on your blog which can be in the form of product reviews, articles and/or videos.
  • Youtube: You earn passive income through the sale of products that are linked to from the description area of your video on the video hosting platform that you use.
  • Kindle Publishing: You earn passive income through the sale of your digital books that are hosted on Amazon’s Kindle publishing platform.
  • Online Course Creation: You earn passive income with online courses whether they’re hosted on your own website or on platforms such as Udemy, Skillshare, and Thinkific. With hosted platforms you can earn passive income in one of two ways. You can earn income on your own courses along with other courses you promote. You can also earn income when someone subscribes to a paid membership to the course hosting platform. They may not even take your course, but since you referred them, you earn a commission.
  • MLM (mutli-level marketing): While the MLM business model is one in which business owners are constantly working to build their network, they also earn passive income. Customers who receive products each month, receive them using a method called auto-ship, meaning their products are sent automatically each month ensuring they’ll always have them on hand. Sponsored reps, also known as network marketers, earn commissions on the sale of each month’s product purchases as long as the customer remains active in the company.
  • eCommerce: You can earn passive income using sites like Spreadshirt, Etsy, Cafe Press, and Zazzle. When you sell a digital product you only have to create it once. Adult coloring books is a good example of this (Etsy). The same is true for digital designs that are used on products like t-shirts, cell phone cases, pillows, tote bags, etc. You earn money on the sale of each product whenever someone buys the item that contains your design.

How I Earn Passive Income

One of the interesting things about being an internet marketer is that you’re able to take advantage of more than one internet business model.

I currently earn passive income by blogging, creating and hosting courses on Skillshare, from my Youtube videos through Adsense, and content packages I sell on Fiverr. I’m currently in the process of building my network marketing business, which will enable me to impact hundreds of lives while earning passive income.

Are you someone who’s interested in learning how to earn passive income?  Discover how you can start and build a business that you love and enjoy using your laptop and an internet connection all from the comfort of your home.  Click right here to learn how! 

 

 

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