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How to Build a Passive Income Business

Don’t you just love the idea of having a steady stream of income as you take your vacation somewhere you’ve always wanted to visit? That’s exactly what a passive income business is. You earn steadily without exerting as much effort in your daytime job.

At this point, reservations about starting a passive income business are perfectly understandable. Let your doubts be a stepping stone for you to understand how it really works!

The name says it all: passive income business. You can generate income online even without actively overlooking and checking on your business often. You neither have to work all the time and the hardest part is usually getting the business rolling.

Thanks to the Internet, this business model has become one of the most lucrative ways to earn money online. It can be as simple as placing ads in your website or as complicated as creating a multi-level marketing strategy. Either way, you can earn money without directly dealing with customers or clients.

With the way this kind of business works, it’s not surprising at all that the benefits of this business model are plenty.

  1. You get to predict just how much you can earn. You can tell by the sales trends of your product. Once sales of the product picks up after a few weeks or months, it will stabilize and more or less maintain the same amount of sales over an extended period of time.
  2. Another benefit of this business model is that your profits will far outshine the costs of setting up the business. Once your business picks up – and it will, if you do the right things – the cost of putting together the business will be worth all the time and money.

Passive Income Business - Benefits & Disadvantages

Passive Income Business - Benefits & Disadvantages

But, like every other business, it does have its fair share of disadvantages.

One of that is the presence of the money wall.

Although money gets your business rolling, a downside is that a lot less people will be reached by your product.

Naturally, people will prefer to have products, especially informational ones, for free.

You can address this though by offering a scaled down free version of your product that will leave people no other choice but to ask for more and buy the full version!

By now, you must have a list of passive income business models in mind. All of that might work just fine, but here are three examples that have proven its worth over time:

Business Idea #1: Join an Affiliate Program!

Any online business in its right mind knows better than to ignore thousands of online visitors. These businesses know that only a small portion of their visitors will buy their products for sure. What is their offer to the majority of their visitors then?

Make them affiliates! The idea is simple: you become an affiliate of a business and promote their products online. Now, this might not sound like a passive way of earning at the onset, but there’s a surefire way of making it one.

By becoming an affiliate, you are free to market your chosen products online. You can write optimized articles about them, start a website, or place ads in your website. By doing these, you are essentially driving sustainable traffic to your chosen partners and earn in the process.

Here are some examples of affiliate programs:

Mad Cat Toys

Mad Cat Toys – One of the more generous affiliate programs

Knowbody Knows

Knowbody Knows – An Affiliate Program where you simply have to place the banner in your site


Sony – An Affiliate Program for willing visitors

As you can see, even the biggest names in the industry have their own affiliate programs!

Business Idea #2: Selling Informational Products!

When done right, information is a quick sell in the Internet. Imagine thousands of people looking for reliable information that only your product can provide. It can be information that can help them solve a particular problem or earn money themselves.

There are many examples of informational products – from eBooks and audio books to online courses that you can put together yourself.

So, how do you start? You can think of your area of expertise, something you know people will pay you for. From that point on, think of how you can convert this information into a product. Selling the product will involve creating a sales page and marketing articles, but once it’s all done, your business will take off.

Here are some examples of popular informational products:

The Rich Jerk

Rich Jerk—an ebook on PPC marketing

Top WP Themes

Topwpthemes – Selling WordPress Themes for a price

Business Idea #3: Ask Members to Register for a Price!

Create a community that will ask for the registration of its members for a certain price. The community itself must be of value for members to even join and pay for it in the first place. What sets your community apart from other non-paid communities? What information does it contain? How will you make your members active?

These are only some of the questions you should keep in mind as you build an information sharing website. While you’re at it, you should also consider having a paid and non-paid version. Of course, the non-paid version will have limited features, while the paid membership will have added features and rewards.


MegaUpload – an excellent example of a website that has paid and non-paid membership

Photography Business Guide

Photography Business Guide—a membership site that requires payment from its members

Obviously, a passive income business doesn’t have to be complicated. Just keep it plain, simple and ingenious; you’ll be surprised at how much it pays off.

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