Online Business A Modern Source Of Passive Income

Man on tablet online business

As you probably know, passive income is the income you earn without being materially involved with the day-to-day running of a business. However, you have to work hard at first to build the business. With that in mind, here are five online business models to make passive income in this digital era.

Online Courses

According to a recent report by Research and Markets titled the “Global E-Learning Market Analysis & Trends – Industry Forecast to 2025”, the global eLearning market will be worth $325 billion by 2025. Additionally, video content will account for nearly 80% of all Internet content by 2019, says the eLearning Industry. Based on these numbers, online courses are a good way of generating passive income, especially if you have expertise in a particular field. To get a piece of this pie, all you have to do is create online courses in your field of expertise and sell your videos on online course marketplaces such as Udemy, Thinkific and Skillshare. However, if you want greater control over content, you can self-host your courses on your own website using tools such as Teachable, which would allow you to create a professional-looking online school.

Information Products

An information product is basically a product that provides a detailed answer to a question. This business model is an alternative to the online courses business model. Examples of digital products include instructional videos, podcasts, ebooks, recipes and guides. Information products are particularly useful because consumers are increasingly turning to the Internet for answers. In fact, a 2007 study by PEW found that nearly 60% of Americans get their answers from the Internet. This means there is a growing market for digital information products. Of course, to create a successful information product, you would need to invest a considerable amount of time, effort and resources. Specifically, you would need to build an ecommerce website, create the product and write a sales letter. Additionally, you would have to market your product as well as do search engine optimization in order to attract traffic to your ecommerce website. One of the main advantages of this business model is its huge earning potential.

If you are interested in learning more about this model, you should check out training programs such as Internet Business Mastery and Niche Profit Classroom.

Affiliate Marketing

Based on the pay-per-sale business model, affiliate marketing is one of the most popular online business models today. To earn money through this business model, you have to join an affiliate program, which is relatively easy since most retailers, both large and small, have affiliate programs. Moreover, you can also join affiliate networks such as Clickbank and JVZoo. When you join an affiliate program, you become an affiliate with your own special affiliate link, which you will use to the seller’s products/services. As an affiliate, your work is to use your affiliate link to direct traffic to the seller’s online store. In return, you will receive a commission for every successful sale that originates from your affiliate link. To succeed in affiliate marketing, you need to have a strong online presence. This means you should leverage online marketing platforms such as YouTube and social media sites including Twitter, Instagram and Twitter. Additionally, you should have a website/blog and a mailing list.

Affiliate marketing is probably one of the easiest ways to make passive income online. This is because your only job would be to use your affiliate link to direct consumers to the seller’s site. In other words, you would not need to create your own product, invest in infrastructure or deal with customers directly. In fact, you do not even need you own website to become an affiliate. If you are looking for a good affiliate marketing training program, check out Bring The Fresh.

Google Adsense

If you own a relatively popular blog or website and want to monetize it with the aim of generating passive income, then you should sign up for the Google Adsense program. Once you sign up to the program, Google will display ads that match your content on your website/blog. When your Internet visitors click on those ads, you will receive 68% of ad value. For instance, if the advertise had paid $1 for the ad, you will 68 cents and Google will keep 32 cents. In essence, Google would be paying you for driving traffic to the advertiser’s site. Google Adsense is a relatively easy and straightforward way to earn passive income, especially if you have a relatively popular website/blog that receives tens of thousands of visitors every month.

Drop shipping

If you want to make passive income selling physical goods to consumers but you do not want to hold inventory or even ship the products by yourself, dropshipping is the right business model for you.

Dropshipping how it works

As a dropshipper, you would be able to sell goods that you neither manufacture nor stock. In other words, your job would be to forward clients’ order to suppliers who would supply the goods to the consumer directly. However, the supplier may include your details on the packaging in case you want to hide the identity of the real supplier.

Take action

We are living the Information Era. The Internet has created an incredible world of opportunities to build businesses based on information or innovative ways to sell physical products. Never before the world has seen so many young people becoming millionaires, and they are doing it through internet-based systems.

Take the time to learn and build some business online so you don’t miss out on this exciting times.

Passive income: the key to liberation

Passive Income Money Tree

Passive income comes with a wide variety of benefits for anyone looking to save up a nest egg or alleviate financial stress. It provides a viable way to free up time. Unlike the majority of income sources, money is not generated simply as an exchange of an individual’s time. Salaries are often calculated based on an hourly rate. Hence, the best income sources generate the most money for least possible time input.

The tradeoff is that the majority of passive sources require an upfront investment of either money or time. Passive income should not be mistaken for a get-rich-quick scheme. It usually comes in the form of a modest stream of revenue that can add value when combined with active income.

Many people dream of earning money while sleeping or relaxing on a beach. Passive income makes it possible but one needs to pick the ideal revenue-generating project to maximize earnings. A good example is rental income from a residential or commercial property. However, the hardest part is setting up the income source and getting the money flowing.

Choosing the ideal source of income provides a sure-fire way to enjoy greater financial freedom. Once multiple streams of revenue are active, the momentum will keep the money flowing. Some income sources require regular maintenance and they are more stable when compared to just one job. Individuals exercise more control over sources of passive income.

One simply needs to decide how much time and effort or financial investment to put in. There is a choice of multiple income streams, which enable an individual to continue working when one source stops. The internet has expanded the number of viable income generating opportunities. To take advantage of the online income streams, an individual needs a computer with an internet connection, time, motivation and patience.

When done correctly, the income stream will free up time for other income generating ventures.

Value creation

Passive revenue is based on the creation of value, which takes considerable effort and time. It may require financial investment. However, it does necessitate perpetual effort, thus a fixed ratio does not apply. There are three basic types of value exchange: selling value, rental value and secondary value. Selling value is straightforward in that one has to offer a product or service in return for money. These can be designer jeans or private jet charter and heart surgery.

However, this approach does not match other income sources because the service or commodity cannot be resold. On the other hand, software or digital goods can be easily duplicated with minimal effort, time and cost. Therefore, they provide an ideal source of passive revenue.

Renting value entails the provision of a service or commodity like going to work or renting a property. The rented item usually avoids or minimizes value degradation. This applies to renting a residential or commercial property, which remains rentable even after a tenant has left. Usage by tenants does cause significant wear and tear but does not diminish the property’s rental value.

Secondary value, on the other hand, involves the creation of new form of value. To create passive income, one needs to advertise potential and proceed to rent or sell it to interested parties. Providing a free newspaper is one way to create secondary value in that it attracts the attention of thousands or millions of readers. This value can be rented to companies willing to grab the attention of readers through advertisements.

Viable passive income sources

Board income ideas

Dividend-paying stocks — investing in the stock of profitable businesses allows investors to take a share of the company’s profits. The profits are disbursed in the form of dividends, typically for a pre-determined amount per share of ownership. Viable businesses attract investors because they have excellent financial health. This makes them a good option for long-term investment. The dividends become a source of passive revenue.

Renting out commercial or residential properties — investing in real property is a practical option that has been a staple investment for decades. There is always considerable demand for accommodation, office space and industrial space. Many building owners pay for the mortgage using rental income and earn a reasonable profit.

E-books — publishing e-books creates a passive income that keeps money flowing over long periods. Customers pay per download. Individuals can compose a book on a wide variety of topics.

Advertising — blogs, websites, online magazines and print-based newspapers can be used to earn advertisement revenue. A web platform or print-based newspaper that attracts thousands or millions of readers can create a good source of income. Advertising networks like Google Adsense allow publishers to display banners on websites. The revenue is paid per click.

Apps — skilled programmers and amateurs can create useful apps and publish them via the Google Play Store and Apple’s App Store. Amateurs can use app creator tools, but the final product may not match the applications created by experienced programmers.

Passive income ideas are really unlimited and they depend on your skills and your particular style for business.

The Importance Of Financial Education

Financial Education concepts on black board

According to a 2017 Consumer Financial Literacy Survey by the National Foundation for Credit Counseling, there is an increase in the credit card debt of Americans. The study also found a decrease in non-retirement savings. A 2016 PWC report shows that millennials have a better financial education than their predecessors.

Working more is Not the Answer

You do not have to work for money. Instead, money should work for you. The 1% of individuals who are billionaires have many passive income sources. The rich do not only make money when they are working. They even make money when they are asleep. Their money and investments are working round the clock. That is why it is usually said that the rich will continue increasing their wealth.

Some people think that working more will result in more money. That is not the case. If you want more money, you need to learn specific skills and concepts that will make you to handle money differently.

Money piles

There is a limited amount of money that you can make by working. You need to have passive income sources. Passive income is the best income source.

Do You Know How to Be Rich?

By default, we are taught to work, save money, and always increase our skills as workers, but we are not taught how to be rich. Financial education is important. It is what will make you to be rich. The rich have information that the rest of the population does not have.

Change Your Financial Destiny

Are you bogged down with debt? Do you have money issues? Millions of Americans have money problems because they lack financial education.

Financial education will make you to understand how money works. It will change your financial destiny.

Financial Education Concepts

Financial Education involves concepts like assets, liabilities, balance sheet, financial statement, and investments.

Assets are the things that you own. Your assets include your car, house, bank balance, stocks, and cash. To be rich, you need to invest in the right assets. There are assets that generate money and those that do not. A car will not generate money if you use it for only personal purposes. A car can end up being a liability because it needs fuel and regular maintenance. However, a motor vehicle makes life to be more convenient and that can make you to generate more money.

Liabilities are your debts. The debts that you owe financial institutions and other people. Debt is bad. You need to avoid debt. You should only take debt if you will use it to finance a solid business idea. You should not use debt to finance personal expense.

• If you want to be rich, you need to maximize your assets and minimize your liabilities. Rich people have very few debts and a lot of investments.

• A balance sheet is a statement of your assets and liabilities. On one side of the balance sheet, you will list all your assets. On the other side, you list liabilities and capital. To be financially healthy, the asset side should exceed the liabilities.

The right education will make you to know how to identify a good investment. When investing, you need to diversify. You should not put all your eggs in one basket. You need to have a portfolio of investments. You should invest in financial market instruments such as stocks, bonds, and ETFs. Since the Great Depression, the stock market has always outperformed the property market. Investing in properties is also a good idea.

Knowledge is Power

The difference between rich and poor people is knowledge. Successful people have high-quality information. That is because they read good books. Often times, those who succeed have the best information. All the secrets of the world are hidden in books. You should not only read newspapers. You also need to read books.

Many books have been written on this topic. Among others, Robert T. Kiyosaki is one of the most active authors teaching people how to change their financial destiny through a different kind of education: Financial Education. His table game Cashflow and his money framework The Cashflow Quadrant have become very popular for learning the required skills for achieving wealth.

Financial education is important. It is a fundamental pillar for building passive income. To be rich, you need to have passive income sources.