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12 Best Ways To Generate Passive Income Online


12 Best Ways To Generate Passive Income Online

Well, after having reviewed the theory of howto live on passive income, we are going to try to apply these models in the case of an online business.

1. Monetize A Website With Adsense

It is surely the oldest way to generate income online, activating Google Adsense in your content, to present contextual advertising in your content.

  • Technological skills: keyword analysis, SEO and writing posts, which generally do not add much value. It is acceptable.
  • Risk: It is true that you take a risk by betting everything on Google. But since you help them make money by offering your blog for their ads, I think you only have to go against their rules or terms and conditions for Google to penalize you.
  •  Soft skills: not necessary. You can manage your blog anonymously and a single person can manage multiple niche blogs.

2. Affiliate Marketing

The idea behind affiliate marketing is to create content on a blog and promote third party products (Amazon or others).

For each completed sale, you will get a commission of up to 12% in the case of physical products. Up to 50% in the case of digital products (online courses).

  • Technological skills: keyword analysis, SEO, and writing posts that, in general, do not add much value. It is acceptable.
  • Content production: unsubscribe to create the blog (10 to 50 posts). Then maintenance is low. You will have to plan a few hours to promote your content, especially at the beginning. Also, you don't have to create your own digital product (ebook/online course).
  • Initial investment: negligible, based mainly on your time. You will have to create a blog and choose a good domain. Create the launch content. And place your affiliate links. Since you promote third-party products, you can be up and running in a matter of days. You will need more time and proactive actions to promote your content to get your first sales commissions.
  • Competition: increasingly high, which forces you to publish more content and improve your skills as SEO and / or assume the purchase of links, illegal activity for Google.
  • Risk: if you cheat with Link Building and fiddle with your affiliate links, both Amazon and Google can shut down the bar overnight. 
  •  Soft skills: not necessary. You can manage your blog anonymously (although I don't recommend it) and a single person can manage several niche blogs, so you don't need to work with other people. If you decide to hire copywriters and manually buy links, it's another movie.

3. Dropshipping Or Amazon Fba (Fulfillment By Amazon)

The concept behind this business model is that you operate an online store, leaving logistics, distribution and customer service issues to others. You can do it with manufacturers that you can find for example in:

  • AliExpress
  • Oberlo
  • DHgate

Amazon offers its own version of Dropshipping, with its program called FBA or Amazon Fulfillment. And it also proposes you to deliver your products throughout Europe, with its know-how, difficult to beat in e-commerce issues.

You will have to make an initial investment, before you can work with Amazon. But you will benefit from Prime & Amazon brands.

If you are interested in this business model, I recommend this Shopify Dropshipping guide

4. Publish Ebooks And Sell Them On Amazon

You have the soul of a writer and you want to write a book.

And why not sell your e-book directly on Amazon, bypassing the stale publishing house that never publishes new authors.

  • Tech Skills: The Amazon Kindle Direct Publisher platform is super simple. And digitizing your book is done without too much trouble.
  • Content production: you will first have to write your book (s). But selling books without an audience is a big challenge. With which, in addition to writing your books, you will have to create and energize a blog-type fan community. Busy.
  • Soft skills: not necessary. It is a sole proprietorship, ideal for a solitary and asocial writer. 

5. Sell Courses On Platforms

Create your online course, upload it on a marketplace and sell passively. This is the idea.

You focus on your skills and leave the marketing in the hands of digital sales experts.

  • Type of online business: it is about sharing knowledge and helping. There is purpose.
  • Technological skills: you will have to be able to teach a subject and produce videos of an acceptable quality so that they are consumed correctly by the students of these platforms.
  • Risk: the students are not yours, but the marketplace. You operate on the grounds of a third party. Udemy puts out 90% discount coupons and you won't be able to say anything whether you like it or not. Domestika does the same with its “bundle” offers. It's what you get when you sell online training like pasta is sold in a supermarket shelf.
  • Soft skills: they are not necessary, it is a one-man business, ideal for an expert who does not want to develop his own sales channel.

Here are 3 options to become teachers of these online market places

1.      Udemy

2.    Domestika

3.    Tutellus

I am a 100% fan of creating online courses.

But as you wear, build your own brand and your digital sales channel better.

You will have more control over your products and your positioning.

And you will enjoy a more profitable business.

6. Sell Your Digital Creations On Marketplaces

It is a business model very similar to the previous one, for all digital natives who work with bits:

  • Designers
  • Photographers
  • Video / Audio graphers
  • Programmers (WordPress themes or plugins, Shopify, Etc.)
  • Musicians
  • 3D animators

The idea is to create simple digital products and sell cheap user licenses in online marketplaces that bring together potential buyers.

  • Type of online business: there is a purpose in creating something of your own. And in this case make it available to others who do not know how to do it and need these bits. So yes to the “Bit Makers”!
  • Technological skills: you will need talent and also have a marketing vision to produce creations that sell well because they respond to a real need.
  • Competition: some categories are very crowded (photography), others (3D animation) not so much.
  • Risk: you are in the hands of your marketplace. It is a risk, but they also need you to sell.
  • Soft skills: not necessary. It is a one-man business, ideal for a digital creator who does not want to develop his own sales channel.

Here are some options to get you started as a digital producer

1.      To sell plugins or themes for WordPress, Themeforest is the reference. Or TemplateMonster

2.    If photography is your thing, pull on  Shutterstock  or Fotolia

3.    If you are a musician, try it on AudioJungle or Artlist

4.    If App development is your thing, try iTunes or Google Play . In both marketplaces you can sell video and music too

5.     For everything else, Envato is your best option


PS: you can also sell your craft on a marketplace called Etsy . I like this model less, because it is not scalable.

7. Monetize Your Youtube Channel

The idea is to create a YouTube channel and get a segmented audience interested in your content.

The channels that work best for monetization are:

  • Technology
  • Product reviews
  • Tutorials
  • Type of online business: If you limit yourself to product reviews, there is no purpose. If you teach a subject, of course there is a purpose.
  • Technological skills: you need a smartphone and a computer, and you really want to talk to the camera. Little more  Well, maybe something interesting to tell.
  • Content production: 1 video a week minimum.
  • Risk: gambling on YouTube. You can mitigate the risk by having your own blog. It's smart to build your mailing list. Too many youtubers are not clear about it yet. The risk is low, at least to base your monetization on Google services. If the pay terms change, you won't be able to do anything. Every 5 years there is such a crisis on YouTube.
  • Soft skills: essential in this case. Unleashed ego and strong personalities generate more polarity ... and succeed more than more academic profiles ... and boring. Teaching is necessary, but it is not enough. You must also be able to subjugate with the clarity of your ideas and / or have fun teaching.

8. Monetize An Audience On Instagram

Instagram is the pretty girl of Facebook. And a perfect complement to a YouTube channel.

You can share evanescent content (Stories) and photos and thus quickly grow an audience of followers hooked with your publications.

  • Type of online business: if you bet on the posture, there is no purpose. If you share techniques or inspire with your actions, there is a lot of purpose. The border is not easy to draw in many cases ...
  • Technological skills: a smartphone with a good camera and little else.
  • Content production: and daily. It is the price to grow your audience on Instagram. And do not use robots to grow your audience faster because they will penalize you.
  • Scalability: as much as you want. You can work with advertising on Instagram to accelerate your growth. The combination of a YouTube channel with an audience on Instagram is often key in the most prominent success stories.
  • Initial investment: no money. And all the time you need to have a beautiful story to tell, every day of the year, helping others with your personal experiences shared on Instagram.
  • Competition: not all target audiences are on Instagram. But in general, if you sell to consumers, you should find an audience related to your topic. Nutrition, Exercise and Beauty niches are already quite worked out.
  • Risk: Again, the risk is from operating on a foreign network. If you don't forget to grow your mailing list from Instagram - and it works - everything should be fine.
  • Soft skills: feeling good in front of a camera and daring to be intimate online. If you hide too much, you weaken your followers' emotional connection to your project.

9. Sell Productized Services On A Blog

I hear your complaints, services do not scale!

Tailor-made services, hardly. If that, hiring qualified personnel and managing a team.

But there are other types of services in the digital world. It's about productized services.

I'm going to give you the case of designing a blog.

It can take 3 months and pay € 2,000 to € 3,000 to get a custom-designed blog for you. With the content that you will have written layout on each page.

It is an option.

Another option is to have the blog installed with a Lorem Ipsum template and content (filler content) in just 5 days for a fifth of the price of the custom service.

It is what I call a productized service, since the service is sold at a fixed price, directly from the web, with a purchase button.

You don't need the budget phase. The customer directly buys a cheaper closed service, which solves 80% of their initial needs.

  • Type of online business: it is a virtual service business, delivered 100% remotely. There is purpose in service businesses.
  • Technological skills: you will have to master the resolution of a specific problem and be able to automate part of the delivery process in order to deliver quickly.
  • Content production: you can work with affiliates and leave them a commission of 20% on the sales made. A blog is always good, but you don't need to produce as much content as an expert who seeks to reinforce his personal brand thanks to a blog.
  • Competition: In the world of services, there is always competition. Often cheaper. Your ability to work professionally will make huge differences. If the market is huge, it is normal for there to be a lot of competition.
  • Risk: not there for me. You operate from your own platform and work with your own online channel.
  • Soft skills: not necessary. You will have to talk to your clients and those interested in your services. Communication is key. Both written and oral.

10. Sell Group Coaching/Accompaniments On A Blog

I hear the same complaints again, coaching does not escalate!

Well it depends on how you mount it. If you do it in person and 1 to 1, it will be difficult to climb, indeed.

But if you propose it in digital and in group format, this already looks better.

  • Type of online business: full of purpose. It is a training service.
  • Technological skills: you will have to be a great technician in your field, capable of generating results for your clients, but you can operate your business online without having to be an expert in digital marketing. It is a technical but not a technological activity.
  • Content production: both a blog and a YouTube channel help position you in the market. It's not about producing a lot, it's about adding a lot of value.
  • Initial investment: You are going to have to create a powerful personal brand blog and find a memorable domain. And then dedicate a lot of time and love to it. Little more. It is about selling a service. You create a sales page and you can go out and find your first coaches or mentors.
  • Competition: These services are fairly new overall. And if you operate in a group, you should hardly run into competitors.
  • Risk: none in particular. In fact, it is one of my favorite business models.
  • Soft skills: they are necessary, they are complex projects. You are a public figure and leader of your own team.

11. Sell Online Courses On A Blog

If coaching presupposes a lot of interaction with clients, online courses can scale much more, since the support can be done in a Facebook or Slack group.

I recommend you plan your online course as a self-executing version of your Coaching program, in which you do not intervene so much.

In this way, you can sell a Do It Yourself solution - interactive book type -, and another version of the Do It with Me type - an accompaniment (Coaching and / or Mentoring) -.

  • Type of online business: teaching is helping, there is a purpose.
  • Technological skills: you will have to be a great technician in your field, capable of generating results for your clients, but you can operate your business online without having to be an expert in digital marketing. It is a technical but not a technological activity.
  • Content production: both a blog and a YouTube channel help position you in the market. It's not about producing a lot, it's about adding a lot of value.
  • Scalability: if you work with an intelligent funnel and bet on affiliates and / or online advertising, your sales will have no limits, especially if you move in a dynamic market.
  • Risk: none in particular. In fact, it is one of my most favorite business models.

12. Create A Lead Generation Funnel

This latest model is not for newbies, but it is ideal for experienced e-Marketers or agencies looking for greater profitability and a more pleasant relationship with their clients.

The idea is simple. Create a digital asset capable of very fine segmentation of prospects. They are normally used:

  • Quizzes
  • Calculators
  • Online check-ups

These resources hook more users and allow to generate many more leads.

The questions behind these resources precisely segment leads.

It is then about:

1.      Sell ​​the best leads at a price / per lead, to a large company (banks, insurance, etc.)

2.    Retain unqualified leads for these large customers, and monetize them with the sale of affiliate products

3.    Monetize the worst leads with actions with third parties (Email drops etc.)

The magic of this type of digital asset is that 100% of the leads that are captured serve.

  • Technological skills: you will need to be a great online marketer and also have real sector knowledge, because otherwise your funnel will not work
  • Content production: the idea is to create a niche blog as in the case of Affiliate Marketing. But it is not a personal brand blog. You are going to work with online advertising mostly.
  • Scalability: if you master online advertising and your funnel is profitable, the limit is what your client can pay each month. If these leads convert, they should be able to pay you what you want, because for them, this purchase is safe.
  • Risk: the asset is yours. If you work with large clients, they should pay you consistently. The truth is that I do not see much risk, as long as you respect the terms and conditions of the online advertising networks with which you are going to work.
  • Soft skills: not necessary. Here what matters is your expertise in Online Marketing and little else: funnel, copywriting, strategy and your ability to scale advertising campaigns without breaking the profitability of your funnel

This model is a very attractive model for all advertising agencies that want to achieve a monthly remuneration based on the operations of a funnel for their clients.

Suddenly, the “retainer” - the monthly fee - is hyper profitable, because you operate a system instead of carrying out a bag of contracted hours, often at a price with little profitability.

The 3 Main Problems Related To Passive Income

 1 - I Don't Believe It

Well, the main one is that people don't believe it. They think they are a scam, because the vast majority of people are not educated about business models.

The idea is to generate money while you sleep, without doing anything, it is very disturbing, because we have been educated with the idea that you have to work hard to generate money.

Everything new produces rejection. Even more so, when this new concept looks really good.

People say to themselves, "How could I have been fooling around for so long?"

Well, I don't know very well, but… many people live life unconsciously.

 2 - False Expectations

The second problem is more serious. It's the expectations. The name, passive income is misleading.

People think they are going to transform into a bank that prints passive income bills doing absolutely nothing. Obviously this is not the case.

  • You have to build the asset before it generates anything. It is a 100% active job. Hard where they are. You are warned.
  • And these passive assets, although they do not require intensive maintenance, they will require a few hours each week.

What less could you ask of a system capable of paying for your lifestyle?

The big problem is that in order to build these digital assets, the vast majority of people who dream of passive income are going to have to acquire new skills first.

And this presupposes:

  • Invest some money in good training, to go faster.
  • Be patient, because your level of execution needs time to reach what you need to generate significant money with these activities.

And many, imprisoned by their thoughts of scarcity, do neither of these 2 things.

You have to be reasonable and stop dreaming about winning the lottery, because these are thoughts of victims, rather than of successful entrepreneurs.

The correct process is:

1.      Decide & commit

2.    Learn & Experiment

3.    Scale & Profit

Give yourself at least 12 months to build your first digital business based on passive automated income.

 3 - Not Acting Consistently

The previous point brings us to this third problem. Lack of consistency in actions.

If you don't take something seriously, you will end up leaving it.

If you don't raise your performance level, you'll be one of the bunch. 


 If you really want to live off passive income, you will have to develop a proper business mindset, which aligns with your identity as a digital entrepreneur.


And, above all, you will have to implement in your life the routines necessary to execute, every day of the year, what you have to do, so that your capital - passive or active - continues to grow at the rate you want.

How to live on passive income?

If what you want is to earn more money, work less and ensure a good retirement, then it is about time that you start creating income streams that do not require great dedication.


Passive income is available to everyone, young and old, as long as you come with the right mindset.


Forget about the pitch, and get to work with vision and perseverance.

Now is your turn. You have to sit down and start investigating what is the passive income that will allow you to spend more time with your family, take vacations whenever you want, live in Japan if you feel like it, or just sit and generate income from home without doing "almost" anything.

Are you ready to abandon the classic 40-hour workday? You "only" have to open a business with a future or create a product that generates passive income .


The longer you take to create it, the more money you will be losing.

Forget being a slave to the clock and your schedule and start to see how the money enters your pocket without you always having to be working.

I don't know of anyone who generates passive income by reading all the time on the internet.

Now what are you gonna do?

Keep reading more about passive income on the Internet until you get intoxicated or stop reading to start acting.


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