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How To Make Passive Income Using the Internet

Updated on May 6, 2016

What is Passive Income?

First let's get into what passive income is. Passive income in an obvious definition is income that you make passively. This means that you will only set up an item once, and it will continually make money for you. This could be an app, a blog, eBook sales, automated website sales, a forum, an extremely low maintenance website etc. In this article we will touch on a few of these, and I will explain exactly how easy they can be set-up. I will talk about what has worked for me, and waht has worked for others.

How to Make Passive Income

There are many ways to make passive income; I have experimented with a couple myself. I mainly dabble in Kindle Direct Publishing, and blogging. I will go into both and I will touch on a few others. Lets start with blogging, since you are reading a blog.

Blogging can be a great source of passive income. You might ask yourself, "how does a blog make money? You aren't selling anything". It is true that I am not selling anything with my blog, but there are people that try to sell things through my blog. Can you see the advertisements on the side? When someone clicks on an ad, I get a little bit of money. Not much at all, but the longer a blog is up, and the more views it gets, ads will naturally get more clicks. The ads on this blog aren't picked by me; they are actually picked by you. The advertisement will be about something that you frequently search for. This is not the only way to make money from blogging though. You can blog about a product for someone; share a custom link to the product, and when someone buys the product using your link you get a percentage of the sale. If you were to make your own site to blog on, you would be able to choose what ads to use and where they were placed.

Another great way to make passive income is by selling eBooks. I use Kindle Direct Publishing (KDP) to sell my eBooks. You can write your own eBooks, so that you don't have to use any start-up capital, or you can pay someone to write the eBooks for you. I have done both. When I pay someone to write my eBooks for me I have paid anywhere from 10-50 dollars for a short eBook. A good selling eBook doesn't have to be a long book; in fact people don't even get to see the inside of your book before they buy it. However, if your book content isn't any good you wont get good reviews. Good content doesn't mean long content though. A great thing to help you remember this is that only 10% of people read a book all the way through ofter buying it. This means that if your book is only about 25 or 30 pages then people might make it all the way to the end. Great information can be given out in just a few pages. There is no need for a 200 page book on how to work a VCR, all the information you need can bee in just a few pages. Maybe when you sit down to write an eBook it just ends up being 200 pages; that is not a bad thing, but there are a few ways to go about marketing it. You could publish the one book, and hope for the best, or you could separate your 200 page book into a 10 book series. A 10 book could have more potential to sell more copies, especially if you mention your nest book in the series with a hyperlink at the end of each book. A series will also open you up to package deals for your books, and lets be real who doesn't like a good deal. Writing the book isn't the only thing you have to do though, you will also have to make a captivating cover for the book. When scrolling through the kindle store, all you see are book covers. You have to make your book cover show the customer that your book is better than the rest, a good book cover will make or break your sales. You can make your own book cover using a little photoshop, or any other photo editing software, or you can pay someone to make you a book cover. Getting a book cover made can cost anywhere from 5-10 dollars. The main thing to make sure of is that it is unique, attention grabbing, and tells what the book is about.

Youtube can be a good passive money stream. With youtube, yet again, you will be banking on the ads. The more views you get, the more ads people will watch, and the more money you will make. You don't have to be the next big Youtube sensation to make money, but you will need to get views. A good way to do this is to link some of your other passive income ventures into your Youtube channel. When you write a blog about something, make a Youtube video about the same thing, and place a link to the video in your blog. You could review new products, or just start a channel that reviews anything really. You will never run out of things to review. Once you get a few videos you will have to get views though. This could be tricky, but the best way is with keywords. Your title needs to describe what is in the video, and be easy to find. There are multiple venues in which you would be able to promote your videos. You can go onto forums, or blogs that have the same theme as your videos, and post links to your videos. You are really only limited to your imagination.

Dropshipping is a way of making passive income that I have not tried yet. Dropshipping means that you post an item for sale on a website, usually eBay or your own website. When someone buys the product, the dropshipper is notified, and sends it to that individual with your logo or company name on it. This way you do not have to have any inventory on hand, and with the right programs it can all be automated (passive). This works by paying the dropshipper a certain price (after you are paid for it), and charging a slightly inflated price. This process can be a little more work than others, but it has been proven time and time again. There are whole eCommerce sites that are completely automated thanks to dropshipping.

Selling your photography is a good way to make passive income. There are websites that you can sell rights to your photos on. If you have a ton of pictures that you have taken (good quality pictures) then you can upload them, and just wait for the money. The main thing to remember in this market is that people don't want your pictures of your family. The way I like to look at what will sell is if it could be on a post card, it could be sold.

Apps are huge right now. You can make an app if you have the knowledge to do so, or you could have one made for you. The easiest and usually cheapest way to go is to buy source code for an app and have it re-skinned. This is a process in which you first buy a license to re-skin someone else's app. They will send you the source code for the app, then you either re-skin it your self, or send it to someone to get it re-skinned. Re-skinning just means that you change all of the graphics and sounds in an app. If re-skinning doesn't sound like your thing, then why not buy an app outright? Some apps are really expensive, and probably aren't worth the money, but some apps can be acquired cheaply. Cheaper apps usually don't make as much money, but if you own the app then you can sell source code for other people to re-skin as their own. You could also just improve the app if you are up to it.


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    • mfangman2024 profile image
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      Michael Fangman 16 months ago from Traveller

      I guess the best way would be to find an organic place in a conversation to use your code. Subtlety is key in most cases. Readers are more likely to click your links, or what ever else you are trying to inject into conversations, if you can make them feel like they need to without asking. Besides, the bigger the email list, the more clicks you will get regardless to how the email reads.