Best Method of Passive Income?

43 replies
What is the best method of passive income method, technique or business model that you have tried?
#income #method #passive
  • Profile picture of the author Wage Mills
    membership sites
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  • Profile picture of the author vishwa
    I think Affiliate marketing is one of the passive income source.
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  • Profile picture of the author SunnyDelight
    imho affiliate marketing is a great way to start getting instant commissions to your paypal account
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  • Profile picture of the author travlinguy
    Blue chip stocks and bonds paying dividends.
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    • Profile picture of the author Chris Silvey
      I don't look at it as total passive, but more like streams of income or static income.

      There are a few routes and methods.

      Niche sites/sniper sites around one product and or genre. Authority sites that pull in traffic from mass content, but the best route by far is being a product developer with affiliates to help in the marketing.

      Other things like building an online profile through various social media outlets, total seo campaigns, as well as classified postings all add up.

      Find/optimize the product or service. Don't waste time and money on products that do not turn a profit.

      Optimize marketing methods.

      Rinse and repeat.
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  • Profile picture of the author Trey Morgan
    Video marketing is also a great way to make a passive income.
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  • Profile picture of the author hostdare
    Internet income via affiliate and internet marketing
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  • Profile picture of the author jamescanz
    Yea you can make passive income...

    Just keep in mind that there is something you will need to do before the passive income kicks in...

    Work :p

    (it sometimes comes up as a surprise to many)
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  • Profile picture of the author extravalue
    Originally Posted by jerytohn View Post

    What is the best method of passive income method, technique or business model that you have tried?
    1. Build your own blog
    2. Get TRAFFIC
    3. Monetize them with advertisement, Adsense, comment review charging, Affiliate product and in-line ads.

    Here you go.
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    • Profile picture of the author Tekno
      Originally Posted by extravalue View Post

      1. Build your own blog
      2. Get TRAFFIC
      3. Monetize them with advertisement, Adsense, comment review charging, Affiliate product and in-line ads.

      Here you go.
      2. Get TRAFFIC >> To get and maintain traffic, you'll have to work quite regularly. So I guess this is not 'passive'
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      • Profile picture of the author jerytohn
        Originally Posted by Tekno View Post

        2. Get TRAFFIC >> To get and maintain traffic, you'll have to work quite regularly. So I guess this is not 'passive'
        Possible to outsource, I think?
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        • Profile picture of the author Taraka
          Originally Posted by jerytohn View Post

          Possible to outsource, I think?
          You can outsource everything: develop a good site with high traffic and something affiliate, find freelancers to regularly put some content on, hire a good manager to keep control of them. Go to Manali and check once in a while if everything's ok. Being a business owner IS a passive income.
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  • Profile picture of the author bluemagicaleyes
    I think Affiliate marketing.
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  • Profile picture of the author mrozlat
    Originally Posted by jerytohn View Post

    What is the best method of passive income method, technique or business model that you have tried?
    iherb without a doubt (no signature plug intended)
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  • Profile picture of the author yakim1
    I believe membership sites that are automated services come the closest to passive income. Affiliate/vendor platforms like JVZoo and PayGoBank and autoresponder services are pretty much hands of other than support and very little maintenance.

    A time limited membership site can be passive as once the content is created the only work it getting members. These are memberships where you might get 12 monthly lessons and then your done.

    Your not constantly working to supply new content every month. You can start your membership with only one month of content and create each months content in a timely fashion each month until you get the promised number of lessons completed.

    The just dip the content monthly to new members and it just keeps going as long as you keep getting new members.

    Best regards,
    Steve Yakim
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    • Profile picture of the author Alexa Smith
      Banned
      I'm not entirely convinced that the concept of "passive income" is a very useful one, for internet marketers, really. It sometimes seems to me that the more you think about and analyze exactly what "passive income" is, the less "passive" most of one's income really is. :confused:

      There are certainly some articles which I had re-published on high-traffic sites as long as 4 years ago (maybe even 5 years ago, now) that continue to bring me plenty of targeted visitors every month, who opt in to my lists and buy affiliate products through my email links very soon after doing so. That's probably the closest I've got to "passive income", and even then it isn't entirely "passive": one still has to maintain (and sometimes amend) one's autoresponder email series, check up on the products' continued availability, and so on.
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  • Profile picture of the author kajuma
    I don't know if there is truly a way to make passive income. I own rental property which is considered passive income and I have an agent that looks after much of the work that I'd rather not do. However, while I do very little, I still need to get involved occasionally, because it's still my investment.

    I think Internet Marketing can be similar. You can build up a responsive list of subscribers over time and this will mean that you need to do a lot less than when you first started to make the same income, but either you or your team will still need to keep your hand at the wheel.

    That said, an internet marketing business can make you money when you're working on it and when you're not working on it and that is attractive.

    There are a few evergreen niches that will always meet people's needs and therefore always offer the potential for you to earn money. I personally focus on helping people to practically apply Internet Marketing from scratch. I believe that there will always be people who have learned what they need to do, but don't know how to apply it.
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  • Profile picture of the author cheehien
    Yes, affiliate marketing is the best way to do it.
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  • Profile picture of the author JensSteyaert
    I would say the most passive income you can generate is from promoting membership sites that offer a recurring commission. If you can promote a quality membership site with high retention rate, you can make 100% passive income for years.

    I don't think there's any other passive income model that requires less effort than promoting high retention membership sites.
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  • Profile picture of the author blueclcl
    Passive income is the rewards you get from the work you do at the start. The more you put in then the more you get out.

    Effectively there is no 100% form of passive income, but there is plenty of ways to earn income passively if you choose the correct methods..

    What are the methods?

    There everywhere and this forum shares them with you every day.
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    • Profile picture of the author Mithral
      At its most fundamental, the answer is royalties and anything that mimics this business model - i.e. create something worthwhile once get paid forever on sales or use. Folks who have had a Christmas hit record earned well on the initial sales but still earn well year after year as their recordings-made in the 70's or 80's- fill the airwaves every festive season.

      In the internet world, I think the closest thing to this is probably online software that people pay a monthly subscription to use. Even then, most software offerings will need some form of development to keep them fresh, even if the concept behind the software is something that doesn't date.

      If you are thinking about a new business, then the closer you can get to the royalty model, the more passive your income will be.
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  • Profile picture of the author Syed Raza
    List Building

    Because it later becomes your own Power House for Traffic whenever you want !

    2nd is making a Membership Site (thats what benefiting me a lot)

    Thanks !
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  • Profile picture of the author beasty513
    If you know exactly what tasks needs to be done, then you can outsource effectively

    and still reap the HUGE benefits that come with it.
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  • Profile picture of the author RoyChan
    Sell proven long term recurring affiliate products, e.g. membership sites, autoresponder scripts, hosting, think like rentals that people need to pay for with their online marketing.

    Plenty of different SAAS business out there crying for your affiliate promotion. Good luck.
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  • Profile picture of the author webmarke
    Promote affiliate products that have recurring payments.
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  • Profile picture of the author derekwong28
    Outside IM, it has to be high yielding stocks that offers a chance to appreciate in value at the same time.

    In IM, the best I have found is Adsense on an authority site with completely unique content. Otherwise, selling links used to be very stable but that is over now.
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  • Profile picture of the author waheed60
    Let's be honest with ourselves, there is nothing like passive income. You need to put some sorts of efforts to make money.
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    • Profile picture of the author tziahs
      I don't think there is a REAL passive income possible.
      After all, even rental properties must be managed. Or membership websites. Also, hedgefunds, mutual funds have to be closely watched from time to time, even though they claim close to 99% automation.
      I would say that a pension fund is truely passive income, but you have to pay for it beforehand, while you're young.
      Maybe an inheritance is passive income? Some long lost "great aunt".... but that's another story.
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    • Profile picture of the author unclederek
      Patent something that you can license to the banking industry. I invested in a company called Data Treasury Corporation, and that is what they do.

      They invented software that scans checks and transfers it to a remote depository. Then they receive a royalty each time certain banks use it.

      Now truth be told, even oil wells dry up... The banks never will!

      Best,

      Derek
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      • Profile picture of the author mrozlat
        Originally Posted by waheed60 View Post

        Let's be honest with ourselves, there is nothing like passive income. You need to put some sorts of efforts to make money.
        Originally Posted by PinkStar View Post

        I agree with waheed60; there is no such thing as passive income - that's a thing of the past.
        if you don't believe in passive income... you'll never achieve it

        that's called a limiting belief which will only hold you back !!
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  • Profile picture of the author PinkStar
    I agree with waheed60; there is no such thing as passive income - that's a thing of the past.
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    Move it along folks, nothing to see here
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    • Profile picture of the author koach
      I totally agree. Thanks.
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  • Profile picture of the author nantico
    Insurance sales.

    This is more of a career than a "method" or "idea"

    But yes, if you get into medicare insurance or final expense life insurance, you can make residuals on the renewals.
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  • Profile picture of the author wentzco
    welfare...


    (OK - find a good nutritional MLM, work it for 2-5 years & develop leaders as well as a customer base. Take a couple months off & if your business still is growing - it sure looks passive to me.)
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    • Profile picture of the author wentzco
      Originally Posted by mrozlat View Post

      why MLM? why not an affiliate program that works like an MLM without forcing you to recruit distributors and you can just focus on a customer base?

      i kept looking at MLM and then realised that one of the affiliate programs i am with is much much better (no autoships, over 35000 natural health products so the market is huge and you're not restricted to a certain brand or line of products, no over inflated prices, i can give away discounts to people just for trying the store, etc, etc...)

      what made me even more excited is that when i joined i signed up quiet a few people and then SEO changed so i couldn't be bothered at the time to adapt... this led me to acquiring no new customers... however the people i did refer kept going back to the store to buy more products and i earn lifetime commission on them... and their affiliate program is 4 levels deep so if they referred family and friends I also receive lifetime commission on them... low and behold my monthly commission keeps rising because of repeat customers being loyal and referring others much better than MLM!
      - good MLMs should not force any recruiting & someone should be able to make income just off customers if that's what they desire. However "leverage" is what can really magnify your income rather than only your own personal efforts in getting customers. Good MLMs should have a strong "non-distributor" customer base purchasing products as well.

      - exclusive high quality products attract people to many companies. Companies with over inflated prices tend not to grow, compete or last. Note - brand name products from a company that lasts is AOK but they will not be able to have the good margins to pay reps that much per level (as the company you point out demonstrates). However - if they are price competitive on brand names products & truly has lifetime commissions - that can be appealing. Most large MLM companies manufacture their own products or sub-contract it out (large quantity orders)... they have more margin to pay out larger commissions per level. (Example - paying out 20-40% retail commissions plus wholesale commissions of 10%, 10%, 5%, 5% on 4 levels as compared to the company you are pointing out which pays 4%, 3%, 2%, 1%... that's a BIG difference). Most people want to pay wholesale either as a distributor or at big discounts common to many company's loyal customer programs (often same as wholesale price). However - many MLMs still haven't figured out e-commerce to well IMO... that can be frustrating.

      - you are in an MLM (Multi-Level Marketing) except apparently there is no autoship requirements. If you believe in the products... you typically buy them anyway. Note - they appear to be developing a "track record" which is always good.

      Just to give you a little background on myself - I left MLM 14 years ago when the company I was National Sales Director for merged with another... I went to affiliate marketing as well as domain name sales/investing. I have discovered over the years that I am not too impressed with the majority of nutritional/weight loss affiliate programs. I'm gonna requote something I said recently in a Facebook group regarding weight loss products - "Companies (established), products & customers tend to be more consistently reliable/higher quality than in the affiliate program arena.". Yeah my wife & I are distributors for a health/skincare MLM - I noticed our "Business Volume" has been growing by many thousands of dollars monthly with no effort on our part. I've decided to take massive notice again after a long time away from the MLM arena. We've always bought miscellaneous products from various MLMs over the years & we've been doing the same with this company. A small effort will magnify the income to be honest.

      Track records are always key in MLM, affiliate programs... or people.
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  • Profile picture of the author Nightengale
    You're asking the wrong question. In fact, the whole idea of "passive income" is a lie. And if your focus is on "passive income," your focus is totally on the wrong thing.

    As mentioned in this article (The Top 4 Reasons Why 'Passive Income' Is A Dangerous Fantasy - Forbes), Bryan Franklin, a Silicon Valley executive coach, pointed out: that "...the fundamental flaw common to all intentions to create "passive income": the focus with such efforts is totally on the wrong thing.

    'Every time I've seen someone create a business, with the ultimate intention of getting away from that business and its customers as quickly as possible, instead of moving towards that business and its customers, it fails.

    "What makes business work is creating value. If you're going into the business with the intention of not creating value, but of having it magically provide money for you, then you often make really bad choices. The business that you're investing in or creating doesn't tend to be creating value for its customers or for anyone. So it doesn't tend to spit off the cash you're hoping it will. So many times I've seen people pursue passive income, and end up having active losses instead. They just spend a lot of time and money trying to push responsibilities off on other people and having it not work.'"

    Another excellent article is The Myth of Passive Income & The Best Thing That Ever Happened to Online Business (do you agree?) | Live Your Legend

    When people talk about "passive income", they're really talking about leverage. First, entrepreneurs figure out how to create value and then they automate that process. But there is ALWAYS work up front -- usually A LOT of work.

    Once the up front work is done, the goal is to then leverage your time, money and expertise as much as possible for as much return possible. That DOESN'T mean NO work.

    Unfortunately, the myth of passive income plays to our natural tendency to try to get something for nothing or to game the system, to feel like we've pulled one over on someone.

    But if this is your driving force, you'll fail. You're much better off choosing a smart business model in a niche you're passionate about. Smart business models used by the wealthy include:

    1. Publishing (this is the royalty model someone else mentioned)
    2. Membership-based businesses
    3. Real estate

    What a lot of Warriors fail to realize is that IM has a lot of leverage already built into it. You're not in a field doing farm work, getting paid on an hourly basis for your labor. The Internet is already a system of connected, automated processes. These models take it a step further.

    If you offer services on an hourly basis, you can leverage and "productize" your services by creating info products around what you know and do. (This is the publishing model.) Now you've taken the hourly service work out of the equation. If you can sell enough info products to equal or surpass your service-based income, you've taken a GIANT leap forward in leveraging your business and increasing your income -- and freed up a LOT of time (which can now be used to generate MORE income).

    But understand this: in ANY business, there is ALWAYS a certain amount of up front work. There is ALWAYS a certain amount of "maintenance" work (customer service, tech support, etc.). And there is ALWAYS marketing to do.

    You can't get away from that -- unless you become a venture capitalist and just fund other people's businesses, invest in the stock or bond market, etc.

    Bottom line: if you're looking for completely "passive income", you're just another idiot looking for something for nothing. People like this WILL fail -- and DESERVE to fail.

    Michelle
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    "You can't market here. This is a marketing discussion forum!"
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    • Profile picture of the author Ravikanth
      Originally Posted by Nightengale View Post

      You're asking the wrong question. In fact, the whole idea of "passive income" is a lie. And if your focus is on "passive income," your focus is totally on the wrong thing.

      As mentioned in this article (The Top 4 Reasons Why 'Passive Income' Is A Dangerous Fantasy - Forbes), Bryan Franklin, a Silicon Valley executive coach, pointed out: that "...the fundamental flaw common to all intentions to create "passive income": the focus with such efforts is totally on the wrong thing.

      'Every time I've seen someone create a business, with the ultimate intention of getting away from that business and its customers as quickly as possible, instead of moving towards that business and its customers, it fails.

      "What makes business work is creating value. If you're going into the business with the intention of not creating value, but of having it magically provide money for you, then you often make really bad choices. The business that you're investing in or creating doesn't tend to be creating value for its customers or for anyone. So it doesn't tend to spit off the cash you're hoping it will. So many times I've seen people pursue passive income, and end up having active losses instead. They just spend a lot of time and money trying to push responsibilities off on other people and having it not work.'"

      Another excellent article is The Myth of Passive Income & The Best Thing That Ever Happened to Online Business (do you agree?) | Live Your Legend

      When people talk about "passive income", they're really talking about leverage. First, entrepreneurs figure out how to create value and then they automate that process. But there is ALWAYS work up front -- usually A LOT of work.

      Once the up front work is done, the goal is to then leverage your time, money and expertise as much as possible for as much return possible. That DOESN'T mean NO work.

      Unfortunately, the myth of passive income plays to our natural tendency to try to get something for nothing or to game the system, to feel like we've pulled one over on someone.

      But if this is your driving force, you'll fail. You're much better off choosing a smart business model in a niche you're passionate about. Smart business models used by the wealthy include:

      1. Publishing (this is the royalty model someone else mentioned)
      2. Membership-based businesses
      3. Real estate

      What a lot of Warriors fail to realize is that IM has a lot of leverage already built into it. You're not in a field doing farm work, getting paid on an hourly basis for your labor. The Internet is already a system of connected, automated processes. These models take it a step further.

      If you offer services on an hourly basis, you can leverage and "productize" your services by creating info products around what you know and do. (This is the publishing model.) Now you've taken the hourly service work out of the equation. If you can sell enough info products to equal or surpass your service-based income, you've taken a GIANT leap forward in leveraging your business and increasing your income -- and freed up a LOT of time (which can now be used to generate MORE income).

      But understand this: in ANY business, there is ALWAYS a certain amount of up front work. There is ALWAYS a certain amount of "maintenance" work (customer service, tech support, etc.). And there is ALWAYS marketing to do.

      You can't get away from that -- unless you become a venture capitalist and just fund other people's businesses, invest in the stock or bond market, etc.

      Bottom line: if you're looking for completely "passive income", you're just another idiot looking for something for nothing. People like this WILL fail -- and DESERVE to fail.

      Michelle
      This post deserves a lot more thanks and visibility Thanks Michelle.
      Signature

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  • Profile picture of the author bostjan33
    Banned
    There is no such thing as passive income. Sure, you have less work after a couple of months, but if you think that you'll be making any sales without any work, then you're wrong.
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    • Profile picture of the author Richard HAN
      Someone mentioned blue chip stocks and bonds.

      I would like to add Exchange Traded Funds.
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  • Profile picture of the author gcbmark20
    Hi,

    For me it has to be...

    ...CREATING THE BEST QUALITY PRODUCTS & services YOU CAN
    and that way more and more of your customers will keep coming back for more.

    Without you having to convince them that your products are the bees knees.

    It works for me.

    Once people know, like & trust you....you'll find sales hitting your accounts
    even whilst you're out doing other things.

    So think - QUALITY first then quantity too.
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  • Profile picture of the author Elvis Michael
    Those who claim that "there's no such thing" as passive income tend to have a different (and misguided) definition of that term.

    Passive income is income earned with little to no effort required to maintain it. Again: *Little* to no effort. In other words, no one ever said passive income is supposed to be 100% hands-free forever and ever.

    So if you earn money from something while only performing minor (or irregular) maintenance -BOOM - guess what??? That qualifies as passive.
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