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How To Generate Passive Income Online

Oct 24, 2007
Most people dream of earning a five figure income per month - without putting in much effort on their site. It is very possible to do so provided you have a know-how of the tactics involved.

Content generated by users

You could try setting up a website which is pretty self sufficient in its own way. Every user that signs up on your site needs to generate certain amount of content every week or month (as per your convenience). They could also get to earn a commission each month by selling your products and services for you (affiliate marketing). In this way you can capitalize on user generated collateral on the site to improve its visibility online. You can also get to leverage more passive income through this method.

Site auctions

There are plenty of sites which are being sold for paltry amounts, every single day. You can easily check on their page ranking and link densities. If they match upto your expectations go ahead and buy them. They'll work like an investment of sorts. You could get advertisers to place ads on these sites. With every click that happens you can earn a good commission from it. This is a great source of passive income. Another good option is to keep these websites for later use. In future when you see related keywords and topic shoot up in popularity, you can sell these sites at a huge price.

Affiliate marketing

You could even try setting up your own affiliate marketing program. Get affiliate marketers to refer your products and services online. You just need to provide them the tools, training and resources. Then with each click watch the sales grow! In this manner, you don't have to put in much effort and you still get to receive good revenues each month!

Drop shipping

This is a procedure which does not require you to have any goods or inventory, poses little or no risk and still generates good income for you each month! A drop shipper is someone who has a supply of specific goods. The way it works is that you market and sell a product online. Once an order is placed by a customer and you get payment for it, you can contact the drop shipper to supply the goods to the buyer. The drop shipper will charge you the wholesale price of the product - which means you make a profit equal to the difference between the retail and wholesale price. This without even having the actual product in stock! However in order for drop shipping to really work as a passive income source, you need to contact a reputed supplier, sell goods which are in demand and can be bought in bulk.

EBay like stores

If you can manage to create and host a website, then the sky is the limit in terms of income potential! You can have an online store which works pretty much like eBay or other stores. Even if you don't have products of your own, you can still get advertisers to place their product listings on your site. This way with every sale that happens, you can earn a significant percentage of commission!

Your blog

You can also use your blog as a great way to generate passive income online. If your blog deals with current topics that are in demand, you can easily get advertisers with associated content to place their ads on your blog. That way with every click through to their site from your blog, you earn a commission. This way you earn good income each month (up to 4000 dollars) without lifting a finger!

Domain names

Another great way to make passive income online without much effort is through a little enterprising effort! You can purchase domain names which don't cost much. Then you can create dummy websites with these domain names and slowly build on their content and page ranking. Or else you can just keep the domain names for later. At a later stage you can easily sell these websites (which by now will be receiving tonnes of traffic), or sell the domain names by themselves. You will be amazed at the amount of money this will fetch you!
About the Author
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