My ultimate goal is to make passive income online that can replace my current Linear Income.Linear income is income you earn working at a traditional job.So what this basically means is that you receive a paycheck based on the time and effort you put in.If you decide to stop working, you would no longer receive any income. I’m so sick of commuting 4 hours a day, working 40 hour weeks, and dealing with all the corporate America B.S.So Ive been looking at sources of passive online income that will help me to realize this dream.
So what is passive income?
Passive Income, which is also referred to as residual income, is generally defined as regularly received income that is generated
with minimal work from your investments.The keyword here is minimal”, i.e. very little work or work required. In other words, passive income is money you earn that doesn’t need much of your time and effort.Most passive income however, requires you to invest some time or money in the beginning. Then you sit back and watch your income grow.
Some examples of passive income are:
dividends from public company stocks;
interest earned from bank accounts, CD’s, money
market accounts or other similar types of investments;
royalties from intellectual property such as books, music, or patents.
Passive online income is a little different from traditional passive income.In my opinion, the main difference is that with passive online income, you will have to put up a lot of work up front, but once all the upfront work is completed, its just a matter of performing some minimal upkeep to keep the income flowing.
There are many ways to earn a passive income on the internet, and I am definitely focused on multiple streams of passive online income.The more streams the better.
Some of the ways that I am currently earning passive online income are as follows:
Royalties from writing online
There are numerous sites online that will compensate you to write articles.Many of them offer an upfront payment per article submitted, but the way to really make money on these sites is from royalty payments.So far, I have joined 2 of these types of sites; epinions.com and Associated Content. Epinions and Associated Content pay royalties predicated on the number of page views the content generates.
The key thing you need to know about these sites is that in order to bring in good online income from royalties, you need to have a lot of content. Simply writing 1, 2 or even 10 articles or reviews will not cut it. I’ve seen many people bash these programs by saying that they don’t pay much. But this is just not true.To be successful, with these kinds of programs you need to create at least a few hundred quality articles.If you take a look at their site, you will see that the people who write more articles have generated millions of page views, which in turn amounts to great monthly online income. So the upfront work here would be to create hundreds of articles.The month-to-month upkeep is always to work on getting inbound links.
Contextual advertising allows content based web sites and blogs to earn money by featuring targeted advertisements on their sites.Google Adsense is a good example of contextual advertising.I am using Google Adsense on most of my web sites and on this blog to generate some passive online income.The upfront work required with this form of monetization is keyword research, building a website or blog and working on SEO to get my sites indexed high in the search engines to create more clicks.The monthly upkeep or maintenance in this case would be to continue to focus on getting back links, although I do have a few sites that I have not touched for months that continue to generate Adsense revenue month after month. Other similar type programs would be Chitika and Kontera.
Affiliate Marketing simply refers to selling other people’s products and earning a commission for each sale.There are thousands of online companies that offer affiliate programs.The way it works is you sign up with one of these companies, add the referral link that they provide to your site, and earn money when someone buys something after clicking through to their site from your link.One of the largest affiliate programs online is the one run by Amazon.com.
One of the ways that I’ve implemented this type of marketing into my strategy is by creating content on free platforms such as Squidoo.Squidoo is a platform that allows you to create web pages (called lenses) on any topic you choose. For instance, I just recently created a lens on the High School Musical 3Movie. I like using Squidoo because, its extremely easy to use, Squidoo pages tend to get indexed very quickly, and most importantly, it’s free.Another important thing to note is that Squidoo can be used as a way to obtain backlinks for your other content based websites, which we know is very important for generating more online income.
Some would include blogging as a method for making passive online income, but in my opinion, its not really a source of passive income because blogging doesn’t really fit the passive income mold, as you cant simply set up a blog once and perform minimal maintenance. You have to continually come up with new content and market that new content, reply to comments etc
So thats it in a nutshell.What methods are you using to generate passive online income?