Many otherwise rational people see the term “passive income” and for some strange reason think of that it means earning money with no work, nothing however is further from the truth. The work you do is often done once, and then you keep making money later on the work you did before. It’s different from service-based work where you must do the work each time to produce income. With passive income you create something today that keeps earning money later.

Examples of Passive Income

I’ve had my own passive income model for many years, if you look at the online marketing services I am currently offering, you will find that each service is offered for a monthly fee. I am somewhat different in that I spread the initial cost over many months… but the aim of all of my marketing programs is to develop passive or residual income. Which to me means I sell a service once, provide ongoing services and generate ongoing monthly revenue.

Some other examples of passive income that you may already be aware of are savings accounts, investments, and real estate; all of these enable you to spend money one time, or spend some money one time, and keep earning income into infinity. But, you can also earn passive income online today. Some examples are information products, membership websites, eCourses, and eBook sales.

The Benefits of Passive Income

People who want to earn money from passive income understand how limiting trading hours for dollars can be. They want to put their time and money to use one time and to then keep earning from those efforts. It’s the way insurance sales people have made money for years. They earn a little commission from each person that buys and keeps paying for insurance; then the more people they sell the insurance to, the bigger and bigger their monthly income becomes. It might take a lot of work to get there, but eventually through momentum it seems like everything becomes a lot easier.

The Two Types of Passive Income

If you would like to earn an income via passive income, there are several ways to do so online. However, mostly you can break it down to two different ways.

  • Promote Other People’s Products – This is one of the fastest ways to get started. Figure out who you want to sell to, know the audience well, and then find products and solutions for them to promote. There are even membership websites where you can promote to them so that you can earn a monthly residual income that grows.
  • Create Your Own Products – This is another way that you can get involved with making passive income online. At first, creating the product is a lot of work, but continuously marketing your product the income will grow exponentially, month after month and year after year.

The main question now is who your target audience is, and which way you’ll go. Most people actually choose both methods, in that they sell other people’s products, and they create their own. They start by selling other people’s products, then eventually create their own after they get some experience with building a list and other marketing methods.

There are many ways to create passive income online today, many more ways than this article can give you. Our aim is to help get your creative juices flowing by looking at these ideas for making passive income online and then to go out and work out what will work for you.

YouTube Channel

Creating a YouTube channel to make passive income can take a lot of work. But, the video you make today can earn money for you forever, or at least as long as YouTube continue to do things the way they now do it.

The best way to proceed is to come up with a good idea that your audience will enjoy and try to put up as many videos as you can each week, no less than one a week. With YouTube, consistency is the key. A good example of a high earning YouTube Channel is Mother Goose Club which earns millions a year.

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Busy Niche Website / Blog

A busy website or blog is a great way to earn passive income. At first you’ll have to work extra hard getting up the right content, and finding the right products to promote. You won’t be able to join an ad network other than AdSense until you are more popular, but it won’t take long if you work at it daily.

A good example of a blog that earns good money is You don’t have to create something about celebrities to earn a lot of money, though.

Kindle EBooks

You can write and publish Kindle eBooks for passive income. It’s easy and free to publish on Kindle. You can write the books yourself, or you can truly make it passive by outsourcing it to someone else to do. A man by the name of Ty Cohen makes millions via Kindle publishing. There are more, so that means it’s possible.

Develop an App

Take a clue from Ty Cohen and create apps too. You don’t need to know even one bit of code, because you can find a freelancer on a site like to do it for you. Then you will promote the app to your audience. The app will earn money for a long time if you create the right kind.

Create an ECourse

With all the simple software that is available now, you can take your idea and create a course in no time. Try using a system like, or to promote and sell your course. Look up LMS or “sell your eCourse online for money” and you’ll find plenty of ways to do it.

Develop Information Products

You can write or use digital video to create information products to promote to your audience. In fact you can put them on,, and other affiliate networks to allow others to sell the product too for a percentage. This is the fastest way to start making passive income, because technically you only need sales pages and not full-fledged websites to promote.

Membership Website

If you have knowledge that others want, you can put it behind a membership wall and collect a monthly fee for those who want to join. Some good examples of memberships that make money are Writer Help Wanted, and the membership community Living Plant Based. Any idea that you have can work as a membership community.

Writer Help Wanted –
Living Plant Based –

Become a Niche Affiliate Marketer

There are many products already created that you can start to promote now. You can go to, and other affiliate networks to find products that have affiliate programs that are ready for you to promote. Simply use proven systems to promote their products, and you can be making passive income in no time.

While at the start of the passive income cycle is anything but “passive,” the point is that once you start creating and marketing these products you will stop the treadmill of trading hours for dollars. Instead of being limited by how much time you have each day, you’ll be able to sell your products to as many people as you desire and as such earn exponentially more.

What is Passive Income and 8 Ways to Create It?
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