3 Online Passive Income Ideas for 2020 & Beyond
Passive income, the golden ticket. Having income without having to continue to put in the work. Who wouldn’t want that? In this post, I’m going to share with you three of the best passive income ideas and streams that you can create in 2020 and beyond.
If you would like to watch this in video format instead then just click the video below.
If not, no worries, just keep on reading.
So first, let’s get really specific on what exactly passive income means, so we are all on the same page.
Make Money Ongoing After Initial Investment
Passive income means that you either invest your time or your money into something and then it keeps working for you long afterwards bringing you money.
Now, if you’re already wealthy, you can simply invest your money as an investor. It’s super hands-off and you can invest in a variety of low to high risk options.
But, if you’re reading this post, the chances are that you weren’t born with a trust fund and you need to create the income yourself. No worries, that’s exactly what I help people do. And the internet has put passive income within the reach of more people than ever before.
If you have some drive, you can start bringing in passive income yourself. And there are varying degrees to which all of these income streams are truly passive.
Some of these online passive income ideas are more passive than others, so I’ll make sure to touch on that for each of them as we dive in.
Online Passive Income Idea #1:
Number one is affiliate marketing.
One of my very favorite ways to make money online. It is a HUGE opportunity.
Basically, you get paid to refer people to a product or a service. And many companies, most companies actually, out there today offer these programs where anybody can refer others to their product or service and make a little money.
When someone you refer to a product or service makes a purchase, you make a percent of the purchase prices, which is your commission.
Personally, I really like to work with digital products as you’re typically looking at 30-50% or better. That is a percent of the purchase price. That’s what you earn as commissions.
Where as with physical products, there is a lot more overhead for the product you’re probably only gonna earn like 5-7% of the purchase price. So you would have to work a lot harder to make the same amount of money.
While some people treat affiliate marketing more like network marketing, and they do a lot of Facebook hustle to get sales. By networking, providing value in groups, doing Facebook lives, etc. It’s not passive and not what I suggest.
Yes, those strategies work, but you have to continue to work to make sales, if you stop working, you stop making money. And that’s not passive at all.
Instead, you should focus on using content to promote your affiliate offers.
Evergreen content that new people can continue to find long after you have created it. For example, you can write a blog post, or shoot a YouTube video teaching people how to set up their email autoresponder system with Active Campaign.
With a blog post or the video, you provide a link to sign up for the service. You put a little extra effort into making sure that your video is SEO’d, or search engine optimized. That way people can find it when they are searching for how to set up an email autoresponder system.
People will see your video or your blog post, then end up signing up for the service through your link. Your affiliate link.
What’s really cool about most ongoing services (such as monthly or yearly) is that as an affiliate you can continue to get those commissions ongoing each month (or year) if that person you referred continues to pay for the service.
Pretty sweet. Right?
Now, yes, this takes work to create the content and to set it up so that people can find it. But, people can find that piece of content on their own for years to come, continuing to bring you income ongoing.
Alright, when it comes to affiliate marketing with content like this, every single piece of content is an asset. The more you create the more online passive income you can generate.
A single well-done piece of content can continue to bring you sales years and years after it is created, creating a very passive income stream.
Online Passive Income Ideas #2:
YouTube Ads Revenue
The second type of passive income is through YouTube Ads Revenue.
This is super cool and it’s one of the many reasons that I choose to focus my content creation on YouTube. Not only can you upload your content to YouTube to bring in affiliate commissions, but YouTube will pay you as well.
Yes, you have to work to grow your channel first, you can’t start running ads on it right away. You can’t allow ads at the beginning. You need to have at least 1,000 subscribers and have at least 4,000 hours of annual watch time before you can monetize your channel.
It’s just a little setting that they won’t let you do until you reach that threshold. But, once you do, YouTube will pay you money to put ads on your videos.
The amount of money that you can earn from YouTube, it varies greatly. It is based on how many views you’re getting on your videos but also on the niche that you’re in. What your videos are focuses on.
I’ve heard it said that on average a YouTuber with an established channel earns $5,000 to $8,000 PER MONTH through ad revenue. But really it’s truly based on how many views you’re getting on your videos. It is also a bidding platform for the ads.
So the more people that want to run ads in your niche, in your industry, the more they’re willing to pay for it, and therefore, the more you will make.
I had a friend who really focused on cranking out YouTube videos for the past year, and grew her channel exponentially. She is in a niche that pays more for ads than most, and she earned almost $80,000 last year just from YouTube ad revenue with a few hundred thousand subscribers.
Now when you have videos that rank for keywords that have a large search volume, you will continue to make money on a good video for a long time to come, but in general, with YouTube, you want to continue to put out content on a regular basis otherwise, you will see your views and your revenue go down.
In this case, it’s not the most passive option. You will continue to make money on a video you created long after you created it, but you will also want to maintain your channel and continue to produce good content if you’re looking to maximize your earning potential.
Online Passive Income Idea #3:
Sell Your OWN Digital Products
The third online passive income stream that I recommend for 2020 and beyond is offering your own digital products.
Whatever information that you can put together into an eBook, PDF download, a video training series that fits the niche or the industry that you are serving is a great passive income stream.
Basically, you put together the digital content one time, you set up the payment processing, and the delivery methods and you will continue to make money on it any time in the future when someone purchases.
How much work this takes and how much ongoing work it will take to maintain really depends on how you set it up.
If you’re publishing an eBook with Amazon, it’s really simple. It’s super hands-off. You create the content and you upload it into Amazon. Take a little time to set it up so people can purchase it, and ta da, Amazon handles the rest and you just make money when people purchase.
But for most of what you offer as a digital product, the main thing that you’re gonna be focused on ongoing, after the initial content creation, logistics, and creating a good sales funnel, is all about your traffic.
You will be focused on generating or driving traffic or interested people to your offer.
Again, you can do this by creating content like you would for affiliate marketing, or you can even just run ads directly to your offer. But just like creating content for affiliate marketing, the videos, blog posts, or podcasts can continue to send traffic to your offer long after you created them.
Now digital products are a great income stream, but depending on how you are delivering the content, you may need to put in some time here and there to update things and keep it current.
For instance, if you have your own membership site you have to maintain, and if the topic changes often and the content needs to be refreshed you may need to put in little time every once in awhile just to keep that product relevant and to keep making money.
Yes, ALL of these strategies take work.
Truthfully, it’d be a scam if they didn’t. Everything either takes time or money, and honestly, most require some of both.
But when you work to create online passive income, you are creating true time freedom for you and your family. Time freedom, where it doesn’t matter if you decide to work today or head off to the beach, the money is still coming in.
Take the time to start building up those online passive income assets in your business today.
There is an old Chinese proverb that you’ve probably heard:
The best time to plant a tree
was 20 years ago.
The second best time is NOW.
The very same is true with online passive income assets. The sooner you start building up those assets, the better off you will be.
Alright, to learn more about how to become successful with affiliate marketing, make sure to click the link at the top of the description CLICK HERE for my affiliate marketing training so you can start building up those passive income assets and start your journey to your six-figure business.
Please know that I am in your corner and on your side and I am here to help you create the time freedom AND financial freedom that you and your family deserve. So subscribe to my Insider Newsletter, so that I can help you do that.
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