Passive Income Creation

passive income creation

Passive income creation is often defined as the ways and means of earning income without having to really work for it, and which does not require any effort on your part.

I personally would not endorse that passive income definition wholeheartedly.

The truth is, unless you inherit your fortune or win the lottery, there is usually some type of initial investment involved in creating and generating a passive income.

You will most likely need to invest your time or your money up front in order to lay the foundation for a lasting passive income stream.

Sometimes you need to invest both!

I would prefer to define passive income creation more along the lines of doing the work (or investing the money) once, and being paid for it over and over and over again.

With a regular job, you work for a set number of hours and receive a set wage for those hours worked.  Occasionally you may receive a bonus or extra benefit, but pretty much if you don't continue to work, you don't continue to get paid.

With passive income creation, you can work and get paid repeatedly without repeating the work.  I guess you could compare it to an author who writes a book and then gets paid every time it is sold, reprinted, etc.

For most people, passive income is generally a supplement they want to add to their main income earned through hard work and pursuit of a profession.

I have a few friends that have taken their earned income and invested it in real estate. Their rental income creates a positive cash flow and could be classified as passive income creation.

Those are just a couple of passive income examples to help you get the idea of what I'm talking about when I refer to passive income creation.

Don't be fooled by the numerous claims of "get rich quick" or "make money fast" that you see cropping up more and more these days on both paid TV ads and internet marketing. There is still no fast road to riches, no matter how much we would like there to be.

However, there ARE some genuine methods that can be followed to create a passive income for you and the future financial security of your family if you are willing to put forth the initial effort or investment required.

Passive Income Creation Opportunities

passive income ideas

If you already have an offline small business, you are ideally suited and positioned to make a small investment to maximize your earning potential by bringing your business online.  That's the first step to passive income creation.

A small business website is the best way to provide more complete information to potential customers or clients, both locally and globally. It also allows you to popularize your products and services in a way you would never be able to do offline.

A good business website opens many doors for you, beyond increasing your sales or expanding your client base. It provides you with an avenue to implement various passive income opportunities that your offline business could not hope to achieve.

Using a website business building package like SBI you can build a strong small website that will perfectly position you to implement some of the best passive income ideas currently available.

If you'd rather invest your money than your time, one of the Sitesell Services Specialists will set it up for you, to your own specifications.

Online Passive Income Examples

While there are various ways to create some passive income online (like taking and selling images to those who are needing stock photos), I think the best long term idea for passive income creation is by building your own theme-based content-rich website. 

Yes, it is a lot of work upfront, but once you have an established high quality website, there really are several ways that your website can bring you passive online income without requiring you to constantly be "working" at it.

Apart from selling your own products (hard goods) or services, these are some of the easiest methods of generating passive income from your website:

  1. Affiliate Marketing - In simple terms, affiliate marketing is promoting products made by other people and getting a commission on any sales generated, without putting in any effort into picking, packing, or shipping the product yourself.

    Websites can easily be used for affiliate marketing because there are innumerable companies that offer affiliate commissions on sales generated in almost any niche (theme) you might care to enter.

    Adding affiliate marketing to your small business website is a very simple task. You selectively add soft recommendations to products or services related to your business topic using special "affiliate links" so that the vendor can track the source of the referral back to you.

    Once you have set up this relationship and added the appropriate recommendations on your website, it's pretty much an automated system from there.

  2. Direct Website Advertising - Your business website can also be used for placing paid advertisements for other related companies or products.

    These ads can be in the form of text links or banner ads. The more traffic your site generates, the more advertisers are willing to pay for exposure on your site. Even if you start off with low rates, as your online business grows, you can increase your rates accordingly.

    An extra $500 per month for an ad on your high traffic website is nothing to sneeze at - multiply it by 2, 3, or 4 and you will be generating a nice little sum of extra passive income.

  3. Cost Per Click Advertising - Another form of advertising that is passive in nature and works quite well, is cost per click.  Here I'm not referring to you paying to advertise, but rather getting paid to allow others to advertise in this manner.  The most well known and popular form of this type of advertising income is the Google Adsense program.

    If you note the ads at the top of this page, you'll see there are some that say "Ads by Google." These ads are generated based on the content of this page and your own location and special interests.

    When you or some other visitor clicks on one of those ads, Google shares with me some of the advertising fee that they charge the owner of the advertisement.

    The value of these clicks can vary from a few cents each to a few dollars, depending on the website theme, the content of the ad, and a multitude of other variables. It may seem hardly worthwhile, but it does add up to a nice additional revenue stream as a passive income creation opportunity.

    Apart from Google's Adsense program, there are other similar type of advertising options like Infolinks, Kontera, Adbrite, Ezoic, etc. None of them can hold a candle to Adsense, so that would always be my first choice and first recommendation.

  4. Digital Products & Ebooks - Over the last few decades, information products have become extremely popular. As an author of a couple of "regular print" books, I had to put up a tidy sum to get my books printed. That was before I even knew if they would sell!

    With digital books, the cost is barely even noteworthy. People quite happily purchase and download "ebooks" every day by the thousands. What does this mean for you?

    If you can write and offer an informative book providing compelling information, answers, solutions to a problem or issue that those in your niche are seeking, you do the work once, and are paid again and again.

    This is probably one of the most profitable passive income creation opportunities available and one not everyone is taking advantage of fully. The key, of course, is to provide value. If you don't, your customers will ask for a refund, and rightly so.

  5. Hard goods - Strangely enough, selling hard goods is actually an option to consider when thinking about passive income creation.  It may not seem like a very passive income opportunity if you are thinking of traditional selling of hard goods. 

    With the range of drop shipping companies and print-on-demand companies, you can still sell hard goods and have very little to do with the order fulfillment process.  It's a great option to consider.

These are just some of the most popular passive income examples that are available online for small business owners or those who are just interested in getting started.

The foundation for developing passive income successfully is a content rich theme based website targeting a specific niche topic.

Sitesell's Solo Build It program can provide the perfect way for the small business owner to enhance their earnings without drifting away from the core business, but it also is ideal for someone who was like me and just starting out without a clue how to make money online but eager to learn and willing to work. 

I put a lot of effort in initially, but now I can go for weeks and even months at a time putting in little or no effort and still have a steady stream of passive income flowing in to help us with our mission work and personal needs.  What a blessing!

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