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Generate Passive Income Online: 3 Proven Strategies to Help You Make Money Even While You Sleep

Updated on June 11, 2014

Passive income is money that you earn on a regular basis from an initial minimal investment of time and money. In some business models, you may not even need to invest any money at all. A fair amount of time, input, and a creative mind may be all you need to constantly generate passive income 24/7. Sounds good, right?

Now, this is where you must be careful. Generating passive income does not mean that you’ll become wealthy overnight. Yes, you’ll make money while you sleep, but you’ll not wake up on a pile of clean, fresh-smelling dollar bills. If anyone’s promising you a system that would make you thousands of dollars working 20 minutes a day, do yourself a favor and run away as fast as you can!

What Could Creating A Passive Income Business Do For You?

  • Make you extra cash to complement your primary source of income. If you’re struggling to make ends meet, or perhaps you are out of work, a couple hundred more dollars a month would make a nice little difference, right?

  • Provide you with first-hand experience of how doing business online works. It’s low-risk, so you don't have a whole lot to lose. But if you succeed, you can apply knowledge gained in more serious online business efforts.

    Sound good?

    Now that we’re on the same page, I’ll go ahead and show you my top three proven strategies that would help you generate passive income online.

1) The Knowledge Strategy

What do you know?

Everyone’s an expert at something, or at least everyone’s supposed to be. It doesn’t have to be deep medical stuff, or some serious geek mumbo-jumbo, or whatever they say is big these days. It doesn’t even have to be something that makes a lot of sense. If you have the kind of information that interests a lot of people or you have a peculiar approach to solving a problem, you can generate passive income online by:

  • Blogging - It’s easy, it’s fun, it’s cheap. You can have a free blog up and running in 15 minutes flat! Service providers like Blogger and Wordpress have simplified the process that much. That’s not to say, however, that your blog would start making you money soon after you set it up. It might not even make you money in the first couple of months, but it will in time, if you’re consistent.

    You may wonder what consistency has to do with anything. After all, aren’t passive income streams supposed to be set-and-forget systems?

    Consistency has to do with how often you update your blog content. Come on, you don’t expect to make money off of a one-page blog, do you? The more quality content you upload to your blog, the more money it would potentially make you in the long run.

  • Creating Info Products. If you have information that can positively affect people’s lives, people will be willing to pay for it. Why, some of the wealthiest people online are information marketers.

    To generate passive income you can turn your information into compelling e-books and other digital products and have them sold online. Sites like ClickBank and E-Junkie facilitate this process and even provide you with affiliates to help promote your product.

    A good product in an ever-green niche would sell for a long time to come, earning you a nice passive income as time goes by.

2) The Skill Strategy

What can you do?

There are several skills constantly in demand on the internet. For starters, website owners need designers and developers to get their websites up and running. There’s also the little matter of who’s going to provide the content once the websites go live. If you have good writing or web development skills, there are many ways you can leverage the internet to generate passive income.

If you’re a writer, you may choose to:

  • Start an article business.This is especially useful if you’re an online freelance writer. Normally, when you write articles for a client, they become exclusively owned by that client and cannot be sold to anyone else. On the other hand, when you write plr articles, you can sell them to as many clients as you want, making a lot more money in the process. This extra cash is passive income.
  • Join revenue sharing websites. Websites like HubPages, Squidoo, Helium and the like are a great way to generate passive income from your writing. When you join these sites and add quality content pages, you get a commission from all advertising or sales revenue generated by your page. Of course, these commissions are for life, as long as the site continues to exist and the business model is not changed.

If you’re a web developer, graphic artist or photographer, similar business models exist. Websites like ThemesForest, for example, allow you to post your templates online and have them sold to multiple clients, much like the article business for writers.

3) The Resource Strategy

What do you have?

Let’s assume you have no skill and know nothing, but you just happen to have some idle cash lying around. You can easily generate passive income by having your money work for you.

  • Invest in start-ups. Crowd funding is becoming a big thing these days with new websites springing up every day that allow investors to put their cash in start-ups they believe in. Just do an internet search and you will find a ton of information about it.

    It is a completely hands-off approach to generating passive income and can be very rewarding if your chosen start-ups do well.

Now let’s say you’re knowledgeable, skillful and have a little cash somewhere, if you decide to apply some or all of the above strategies to generate passive income, how much extra cash do you think you could make at the end of every month? $50? $100? $300?

Why, at some point, your passive income could eventually become your primary income source. All it takes is for you to creatively apply the strategies above and you are guaranteed to generate residual income and become more financially secure.

Do you think it is possible to make $1000 a month or more online?

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    • thomasgene profile image

      Tommy Bingham 4 years ago from Deep in an underground bunker in the Southeastern United States.

      You are absolutely correct. The people that keep trying until they succeed never fail. You only fail when you give up!

    • Arif Umerzai profile image

      Arif Umerzai 4 years ago from Pakistan

      its nice to read i agree the best way is blogging but its very difficult to understand what other people want to read and in start u have a problem to creat a useful content but after sometime it became easy. the rule of earning online money is to TRY TRY AGAIN then you will get succed don't use any shortcut

    • banknotebrain profile image

      banknotebrain 4 years ago

      With patience and dedication we can make online money.

    • thomasgene profile image

      Tommy Bingham 4 years ago from Deep in an underground bunker in the Southeastern United States.


    • profile image

      danielle cruz 4 years ago

      Making money online takes a lot of dedication and it's hard to find advice online because everyone is trying to make a quick buck off you.

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