To find out what is the best way to make a passive income we first need to understand what a passive income is. Passive is the opposite to active, so a passive income is one that requires no activity from you. Of course in the purest sense that is impossible, you can’t have an income without any action from yourself unless of course someone knocks on your door and hands you a bag of money each month for no obvious reason. That would be the only real passive income, but in terms of earning an income the phrase ‘passive income’ is used to describe an income gained from a process that you have set up that then goes on to bring in money without any further input from you, a kind of set it and forget it scenario, but of course is always going to be an element of management to carry out but not in the way of a normal job.
Imagine you built or bought a house and then you rented it out, that is a form of passive income. You have done the initial work of building the house, or preparing it for your tenants, but then you do nothing more than collect the rent, until it needs maintenance or new tenants. So assuming that you haven’t got a mystery benefactor delivering bags of money and either don’t have a house to rent, or need more than just a single house rental income, what other ways are there to make a passive income?
Well let’s explore the idea of a passive income further, you need something that once you have launched, it is on auto pilot without you doing a great deal more. Something that rinses and repeats over and over. It has to be something that doesn’t require you to pack or deliver a product because that isn’t exactly passive. To be truly passive it also means that you cannot be running advertising campaigns to drive visitors. It has to be completely self supporting.
A passive income from your iPhone photos
So you have to create something in such a way that visitors just keep coming and providing you with an income. On a small scale you can do it with photographs. There are some stock photography websites where you can upload your photos and earn a passive income from them. It might not be a huge amount but it is something.
I did an experiment recently with Shutterstock. They have a vast catalogue of images that are available to download for a fee. They have a contributor section and a purchaser section. If you sign up as a contributor and start posting your photos you can earn from it. The more photos you upload the more you can earn. For my experiment I registered and uploaded just 10 photos of various types. I then just left it for a couple of months. When I returned I had made $1.58 i commissions. Not a lot you might think, and no it isn’t but that was from just 5 downloads.One of my photo’s had been downloaded three times and another twice and eight photos hadn’t been downloaded at all. Now this then allows you to focus on what is selling whilst you are asleep, or doing the day job, or at the cinema or gym. What if instead of 10 photo’s I uploaded 100, and they were of the type that I now know sells? So 10 times the number of photo’s theoretically produces 10 times the income, so my $1.58 becomes $10.58. And the photos are of the type that I know sells then the chances are that although not all the photos will suddenly sell, but a greater number will so my $10.58 might actually become $50 or more. There are some contributors on Shutterstock with more than 1 million photos, and they aren’t just my amateur standard either! Based on 20% of my photos selling that is 200,000 of theirs. My 5 sales produced $1.58, so $1.58/5 times 200,000 = $63,200 dollars in a few months! So what are you waiting for get signed up on Shutterstock and build a portfolio of photos that brings you a passive income whilst you sleep. Sign up today here – Shutterstock.
There is another one called ClickaSnap which pays out on views rather than downloads but they have far fewer visitors and pay out a quarter of one cent per view, not as some people suggest 25 cents per view. I did a similar experiment but have so far only made about 6 cents! , so I would quite literally focus on Shutterstock if I were you.
A Passive Income From Affiliate Marketing
The other best way to make a passive income is with affiliate marketing. This requires some initial set up but can produce an impressive autopilot income if done properly. With affiliate marketing you are promoting and marketing someone else’s product and you get a commission paid to you if you generate a sale. You basically need a product to promote, a place to promote that product and a way to get people to see your promotion. The most obvious place to promote the product is on a website. The beauty of a website is that it is working 24 hours a day, 365 days a year. The downside of a website is that it is competing with millions of other websites so you have to find a way to get lots of visitors to it. Don’t forget that you don’t really want to be getting into paid advertising as, although it can work, for most people the cost of advertising works out to more than your earnings. You need to find a free source of traffic.
The most obvious way to drive free traffic to a website is through natural search positions in the search engines. This takes a little persistence and a pinch of luck, but it can be done by following methods that I teach on this website. Once you have got the search engine positions you are in a passive income situation, but don’t forget, even with a passive income there is still ongoing maintenance to do. A typical program for building, launching and maintaining a website goes like this:-
Week 1 – Choose your web hosting company and domain name and pay for them. Install WordPress or other Website Content Management System of your choice. Set up the look of your website, usually by way of a theme. Install any plugins that you will need. Fine tune the appearance and make any setting changes that would be beneficial. Apply for any affiliate marketing referral programs that you are intending to promote. Set up useful tools such as Google Analytics and Google Search Console.
Week 2 – You now need to start building your content. The first thing to do is a little research. You won’t be the only person promoting this product or service so you are going to be competing with a lot of others. Google your chosen product or service and just get a feel for the market. At this point it is easy to become disheartened, you see those competitors and think. What chance have I got against all of those. But they all felt the same once, so fight on past that point. Next write down all the words and phrases that people might use when searching online for that particular service or product. Try to come up with at least 20 of them. To get good search engine positions you aren’t just going to write one piece of content. You are going to write several. Each one will be targeting a group of the words and phrases that you have come up with. We will cover all of this in much greater depth elsewhere, so do’t worry.
Week 3 – Keep writing articles on your website about your chosen products and services.
Keep on doing this. You want to aim to write at least one article per day for the ext 3 months. That way you end up after 3 months with about 90 articles on all of the products and services that you are promoting. This is the foundations of your new passive income business, but as you have noticed, it’s not very passive is it? The first 3 months are the toughest. You will see little income yet, so it is very easy to give up and say that it’s not working. Don’t give up, you have just reached that point in a marathon where it hurts and you don’t know if you can continue any more. But the finish line is just ahead, just give yourself 3 solid months to get there.
Month 4 – You now have a professional looking website, full of great original articles written by yourself. Google has found them and indexed them and you will be getting some visitors now, and some will convert to sales. This month is the next push. You ow want to start seeding links out there back to your website. If you did it at the start people would arrive at a site that sort of looked incomplete, now you have your bank of articles you can start talking about them on Social Media, dropped links to them in forums etc. This is your promotional month building interest and links back to your site. Try to place at least 2 links a day back to your pages. We will cover all of this in more detail as we progress.
Month 5 and 6 – Write more articles but this time based on keyword suggestions that you discover through your Google Analytics, Search Console and keyword suggestion tools. Again we cover all of this in detail elsewhere.
Month 6 onwards – You now have a busy little website growing more visitors by the day. You can take your foot of the throttle a little but not completely. The more you do the more you earn, so try to do an hour or two a day on either keyword research, link building, article writing or new product or service discovery. Google likes to see new fresh content and rewards you for it by better search positions and then when it sees more people visiting and more people staying there it rewards you further. So just keep in moving along. It’s a 6 month job to build a great passive income that is there for the rest of your life, so don’t give up.
Get a head start in the world of Affiliate Marketing
72 Pages across 8 Chapters of solid advice for the Affiliate Marketing Newbie!
Chapter 1: Introduction to Affiliate Marketing
Chapter 2: How to Identify & Pick Hot Selling Products
Chapter 3: Using Pay-Per-Click to Promote Affiliate Products
Chapter 4: Using Search Engine Optimization to Sell Products as an Affiliate
Chapter 5: BUM Marketing Exposed for Affiliates
Chapter 6: Leveraging on FREE Reports to Increase Affiliate Sales
Chapter 7: Rising to the Super Affiliate Level
Chapter 8: Become a Supreme Affiliate Marketer Today!
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