What Is Passive Income?
That’s the first thing we have to figure out. Just what is passive income, and why should I want it?
The U.S. Revenue Service defines three types on income. Active income, passive income, and portfolio income.
Passive income is defined as income that comes to you on a regular basis that requires minimal effort on your part to maintain it. It’s money coming in regularly that doesn’t require you going to the office to earn it, or doing much of anything else to get it. You can even earn while on vacation or while you’re sleeping!
That sounds pretty awesome to me!
I’m working to earn passive income, because there are other things I want to do with money besides working for it.
Back in the day before the internet, and still today, a couple of the main ways to get a passive income was to own rental properties, or storage units, or laundromats. That sort of thing. Once your properties were rented or your storefront was up and running, you didn’t have to do much except collect rents. You could hire a property management company to handle the day to day maintenance and other issues, and collect your money every month.
Storage facilities are the same thing. You rent out a unit for people to store their stuff. It’s easier because people aren’t living there, so your property management company doesn’t have to do much either.
The main drawback is the initial expense. Real estate has a lot of potential, but the initial costs are prohibitive for a lot of people, including me.
What I want to talk about in this post, though, is passive income online.
Do You Have That Entrepreneurial Spirit?
Have you always wanted to own your own business? The place to go with the greatest potential for a great passive income is the internet. You can do things online and earn money online that would be only dreamed of with a regular brick and mortar store.
- You’re not limited to a specific location
- Your customer base is worldwide
- Billions of people use the internet to shop
- You don’t have to work set hours
- Your online business is open 24/7
If this appeals to you, then keep reading. I’m going to tell you how I am building up a business that will earn me a great passive income.
I Think Affiliate Marketing Is The Way To Go.
Affiliate marketing is simply the process of connecting a customer with a supplier, and earning a commission for bringing them together. The following chart explains it.
What do you need to be an online affiliate marketer? There are basically 4 steps involved.
Choose An Interest
This is the niche that you want to pursue, and become an expert in. It can be anything you want, preferably something that you are interested in or passionate about. Hint: Don’t choose a niche simply because you think it will make money. It becomes tedious if you don’t really have an interest in it.
Build A Website
Your website is the place that online shoppers come to for information on the type of product your niche has. You site gives the shoppers valuable information on what they are looking for, such as a review, or product explanation, that helps them make up their minds about buying.
You attract visitors to your site by providing something of value to them. Most affiliate websites are blog sites, and the bloggers provide quality content that customers find interesting and informative.
Your use of keywords and the quality of your content helps your site get ranked by the search engines, and the higher the ranking the easier your site is to find by online shoppers.
When a customer buys by clicking on a link on your site that takes them to a sales page for their product, you earn a commission.
It’s a fun way to make money once you learn the ropes, but there is a learning curve involved. As with any business, it takes time to become successful. Once you know what you’re doing, your income potential is sky high.
Can you see yourself making $5,000 to $10,000 per month? It’s easily possible with affiliate marketing. How about $100,000 per month? That’s super affiliate level, making over a million dollars a year. Wouldn’t you like to live in that neighborhood! I would!
You won’t get to the super affiliate level right away, but you can get there if you get started and build your business steadily. In three to five years you can be earning that million dollar passive income.
Do YOU Want To Learn How To Become An Internet Millionaire?
I do. That’s why I’m an affiliate marketer.
There are a lot of websites that want to sign you up for their training on affiliate marketing. There is one, though, that stands out, and that lets you sign up and begin learning for FREE. It’s called Wealthy Affiliate. It’s well-established, having been training entrepreneurs since 2005.
It’s my #1 choice for affiliate training.
The free training is valuable too, and it’s really free. It’s not one of those programs where you aren’t charged initially, but you have to provide your credit card information because after a certain amount of time, if you don’t cancel, you are automatically charged for the training. Surprise!
Wealthy Affiliate is actually the opposite. You’re not asked for credit card information when you sign up. You remain in the free Starter training indefinitely until you decide on your own to upgrade. The free training provides you with ten free lessons and two free websites to get you started. I wrote a post on the free training earlier, so rather than repeat it, I’ll provide the link. You can find it here.
Not only do you get free training, but you get the chance to work with and communicate with hundreds of thousands of other entrepreneurs who are also building their businesses. Their support is a valuable asset as you learn and grow.
I found Wealthy Affiliate the same way you’re finding it now, by reading a post on a blog by another entrepreneur. I really wasn’t looking for affiliate marketing at the time, I was looking for information on doing copywriting. The post offered a better idea for making money with my writing, and I clicked on the link.
I signed up for the free training, and soon joined the premium side of the training. It was only $49/month, or $359/year, and was well worth it. It opened up a huge amount of information on how to become established as an authority site, attracting hundreds or thousands of visitors to my site every day.
You can get there too. Anyone can, who wants to be successful and is willing to just GET STARTED!
Disclosure: The FTC wants me as an affiliate marketer to inform you that if you click on an affiliate link and purchase a product, I will receive a commission. Of course, there’s no commission when you sign up with Wealthy Affiliate, because it’s free. If you eventually enter premium training, that’s when I am paid a commission.
Thanks for reading my post, and good luck with your affiliate marketing career! Leave me a comment if you’d like or if you have a question.