When people see the term “passive” income, they often think of making money without work. However, nothing could be further from the truth.

The fact is, it takes work to generate passive income. However, the work you do is done once and then you keep making money from the work you did before. It is different from service-based work where you have to do the work each time to generate income. With passive income, you create something today that keeps making money later.

Examples of passive income

Some examples you may know about are savings accounts, investments, and real estate. All of these allow you to spend money once, or spend some money once, and keep earning income to infinity.

But you can also earn passive income online today. Some examples are information products, membership websites, e-courses, and e-book sales.

The benefits

People who want to make money on passive income understand how trading hours for dollars can be limited. They want to invest their time and money in one go and continue to earn from those efforts. It’s the way insurance salespeople have made money for years. They earn a small commission from each person who buys and continues to pay for insurance. So the more people you sell the insurance to, the bigger and bigger your monthly income will be. It might take a lot of work to get there, but eventually through the momentum, it seems like everything gets a lot easier.

The two types

If you want to earn income through passive income, there are several ways to do it online. However, most of the time it can be divided into two different ways.

Promote other people’s products

This is one of the quickest ways to get started. Find out who you want to sell to, get to know your audience well, and then find products and solutions for them to promote. There are even membership websites where you can promote them so that you can earn a monthly residual income that grows.

Create your own products

This is another way you can get involved to generate passive income online. Creating the product is a lot of work at first, but once you get a number of affiliates promoting the product, the revenue will grow exponentially, month after month and year after year.

The main question now is who is your audience and what path will they take. Most people choose both methods. They sell other people’s products and create their own. Most people start out by selling other people’s products and eventually create their own after gaining experience with list building and other marketing methods.

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