6 Profitable Ways to Make Passive Income Online

Are you looking to generate passive income online? There are many different things that you can do from selling physical products on Amazon to working as a freelancer.

a white keyboard with the words make money on it

Many people do well with these business models, but one specific profit model you should be looking at is generating passive income online. First, what is passive income?

Passive income is basically income that’s generated on an ongoing basis that is usually derived from a single sale or deal. For example, renting out a property you own would be a source of passive income in the real world.

The idea is to get paid over and over for a single sale. Passive income online is different. You have to focus on specific income generating strategies or business models. To give you some ideas, here are 5 profitable ways to make passive income online.

Top 6 Ways to Earn Passive Income Online

1. Promote Affiliate Products that Pay Recurring Commissions

One of the best ways to make passive income online is to promote an affiliate program that pays recurring commissions. The most obvious thing to promote is a web hosting service. Most site owners will use a web hosting service for months or even years.

By promoting a web hosting company service, you can expect to generate income on one customer for a long time. Of course, there are other recurring products and services as a wine of the month club, marketing services, and more.

2. Offer Software as a Service

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A popular business model that many people are going into is the software as a service model (also referred to as SaaS). This is a model where you offer customers access to your software on a subscription basis.

A good example of this is a simple online time tracking and invoicing tool called Harvest. It’s a tool that’s designed to help freelancers make sure that they are billing their hours properly, stay organized and get an idea of what to expect as projects progress.

There are many complex SaaS businesses out there, but you don’t always need a complex solution. There are many entrepreneurs creating apps that charge a small monthly fee of $1 to $3 for a simple service.

There are many programmers and designers that you can work with to develop a unique app. You may even be able to partner with them if you can cover the marketing in return for their programming and design skills.

3. Create a Membership Site

If you prefer a simpler approach, you can’t go wrong with membership sites. Membership sites is a business model where the customer pays to get access to exclusive content. In return for staying a member, customers are given access to new content every month.

Membership sites have been built for every kind of market and industry from online yoga classes, athlete training sites, financial newsletters, to guitar tutorials.

If you want to get into this business model, start by thinking of a market and topic where customers are hungry for high quality and exclusive content.

4. Build a Content Site or Blog

A popular alternative to membership sites is large content sites or blogs. While it may not start off as passive in the beginning stages, you can automate most of the work once your site develops some traction and starts generating income.

This business model will be based on building a site around a popular topic and publishing high-quality content on a regular basis. It will require a lot of marketing in the beginning but can be leveraged to scale with more ease if you manage to build a large following.

To generate passive income online with these sites you’ll have to use SEO and press to build a strong foundation and maintain the traffic stream through outsourcing the SEO work.

There are many ways you can monetize these types of websites. The easiest way to do so is to sign up with publishing networks and get paid for displaying ads on your site. The most popular one in the market is Google Adsense.

You basically display Google’s ads and get paid a percentage of the ad cost whenever users click on them. You can also sell advertising space on your website to individual advertisers for a more reliable income. And of course, you can market your own products, services and other affiliate offers for a diversified income source.

5. Sell a Recurring Service

Do you have a unique service to offer? Can it generate passive income online? Many freelancers are offering SEO, social media marketing, and reputation management services to business owners for a monthly recurring fee. It doesn’t have to necessarily be a B to B service either.

Another idea is to offer weekly or monthly house cleaning services to homeowners. For both B2B and B2C businesses, you don’t have to do the work yourself. You can outsource the work to other people and either share the proceeds or pay the freelancer on an hourly basis.

6. Create YouTube Videos

the YouTube logo and a video sign

If you have skills with video editing, then you may want to start creating content for YouTube. YouTube has a partnership program where you get paid a rate based on the revenue generated from advertisers.

To make this a passive income online with this method, you want to focus on evergreen topics like videos on “how to tie a tie,” “how to tie your shoelaces,” and “how to properly do a push-up.” But of course, you can also create viral videos like “the 7 coolest tech inventions for your kitchen.”

Getting exposure for your YouTube videos can be challenging, but if you love video production and editing, this may be the right income path for you.

Let’s Recap

That’s just a quick list of the different ways you can make passive income online. There are many other business models and methods out there. The important thing is to focus on building a strong foundation and sticking it out for the long haul.

It takes some time to start generating income online. You will want to invest in a few digital marketing courses, follow reputable blogs and get involved with community forums to speed up the learning process if you want to see success as quickly as possible.

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