Residual Income. The key word associated with our very first post. In the first post, I promised to reveal ways to generate residual income online. So, here goes a pilot post about the basics..

So, what is passive income?

According to Wikipedia: Passive income is a rent received on a regular basis, with little effort required to maintain it. It is advocated by some authors, especially by Robert Kiyosaki.

An example of passive income:

* Repeated regular income, earned by a sales person, generated from the payment of a product or service that must be renewed on a regular basis, in order to continue receiving its benefits – also called residual income.

There are a host of advantages if you start to do business online. Although the initial effort required to build up a base isn’t small, once things are in place, you can get a constant stream of income with very little effort.

Affiliate Programs

Unlike what some people think, “Revenue from Advertising” is not the top source of earning passive income. It is sales from affiliate programs. If you have been Googling a lot for methods on making money online, you would have sure seen lot of people showing off their cheques and account screenshots, which amount to thousands of dollars.  Most of these are from Affiliate sales.
In affiliate sales, you promote a product of a Company and the Company pays you a % of the sale when a purchase is made following your referral link.

Clickbank is a very popular digital marketplace where people can “make” digital products like e-books and other software and affiliates would sell it for them. You can register and become an Affiliate(sell products) or a Publisher(make products and others would sell for you). One thing that makes Clickbank so successful is that afiliate commissions can be upto 75%. So, an affiliate can make more than what the Publisher makes. As a result, affiliates strive to sell the products and both the publishers and the affiliates are happy.

Almost any company that sells products online would have an affiliate program. For everything from goods(ebay or amazon) and digital products(clickbank or e-junkie) down to Wordpress themes.

So, if you have a blog or a site, find out affiliate programs that  match the niche of your site (This is very important. Do not put up irrelevant affiliate products. They wont convert) and start making residual income.

Create T-shirt designs and sell it at online stores

Stores like Zazzle, Threadless, CafePress, Myntra (Indian) enables you to sell t-shirts(and a host of other merchandise) online. Make a good design or a funky quote and put it up for sale in the marketplace or promote them on your blog. You can make atleast $2 per sale. Once your designs gain recognition, increase the prices and start making $5-10 per sale.

Create an e-book

If you are really good at something, why not make an ebook? Creating an e-book is quite easy if you have the matter. There are no additional costs involved for development and distribution of the product. Sell it using Clickbank and give a % of the profit to the affiliates. This generates leveraged income. Leveraged income leverages the work done by other people (the affiliates) to create income for you (by selling your e-book).

Create an Online Startup

Transform simple ideas into streams of continuous residual income. Learn a language like PHP and make it yourself or if you have the dough, give your idea to a freelancer (Try rentacoder.com or getafreelancer.com) and get it done. Creating startups is an awesome way to passive income. I have friends who have made sites in their lesiure time and earn $200-300 each month consistently from them.

Online Advertising programs

Of course, this needs no detailed explanation. Add advertising programs on your site and you’ll have a constant stream of income coming in. For a compiled list of Ad Networks, check out the “Make Money Online” drop-down menu on the top of this page. Adsense and Infolinks continue to perform well for me. Chitika revenue doesn’t seem to be very constant for me. Also, to see my top 5 income generators, click on “Toggle Slidebar” on the top of the Sidebar on the right.

Create a members-only section for your blog

You can create a private section on your site, exclusive for paid members and not open to public. Be warned that this can lead to dissatisfied regular visitors. It’s better not to follow this method as you may end up loosing loyal readers. I’m just mentioning it here as it is a way to generate residual income (via subscriptions to these private sections).
There are also other ways like creating members-only forums on webmaster secrets and resources etc. which can generate income without affecting your blog readers’ feelings.

Join a Multi Level Marketing Scheme

MLMs (Network Marketing) is a business-distribution model in which a company markets its products directly to the consumers by means of relationship referrals and direct selling. Read more about MLMs on Wikipedia. Again, for some initial amount of work, keep earning passive income by leverage by trying out MLMs. I am presently trying out a trusted binary MLM scheme and will update if it goes well.

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