Passive income is the best way to make money online. Passive income isn’t limited to blogging, but it is a great way for those who want to earn extra cash or build a business from home! You don’t need to be an expert in your field or spend all of your time working on your blog in order to achieve passive income. It doesn’t matter what skill level you have; anyone can start earning passive income today!
In this post, we review the aspects of Blogging For Passive Income, how to make passive income, how to generate passive income with no initial funds, and buy a blog for passive income.
Blogging For Passive Income
Passive income is a great way to make money, especially if you’re not interested in working in an office all day or managing employees. The idea behind passive income is very simple: You work hard once to build your business, and then you sit back and watch the checks roll in. Passive income can be generated through many different mediums and niches. In this article we’ll take a look at some of the best ideas for generating passive income from blogging.
Why passive income?
Passive income is a great way to make money because it doesn’t require as much time and effort. You don’t have to spend hours working on your blog or website, and you don’t have to be online 24/7 in order for it to generate revenue. Passive income just sits there and earns you money while you do other things.
Passive income is also easier to start than active income, because the investment of time and energy into setting up a passive-income stream is minimal compared with starting an active business. It’s also much more stable than active businesses—once you’ve put in the hard work once, all that remains is maintaining it (which takes little or no effort). For example: if one day your website stops making money for some reason (like if Google decides not show its ads anymore), then at least half of your work has already been done! So long as your site still works properly, then all that needs doing is putting new ads back up again when Google changes its mind about showing them again (and even this can be automated). You won’t need any further marketing efforts—just wait until people start clicking again!
Passive income definition
Passive income is the type of income that can be earned with little effort or time. It’s the “work smart, not hard” way to make money.
Earned income is what you get from your day job—the paycheck you write and cash at the end of each month. Active income is earned by selling things (products or services) to others through a business model, rather than working as an employee for someone else. Portfolio income refers to investments such as stocks, bonds, mutual funds and real estate which produce regular payments (dividends) without requiring any additional work on your part after initial investment has been made
How to generate passive income
Once you’ve decided to start blogging for passive income, the first thing you need to do is create a blog.
The second step is to get a domain name and hosting account. There are many different blogging platforms out there, including WordPress and Tumblr. If you want free options, Blogger and Medium are both great choices. For more advanced users who want their own domain names (and all the benefits of owning one), there’s Squarespace or Shopify.
Once your blog has been created and published online, it’s time to start writing! As mentioned earlier in this post, your writing doesn’t have to be professional quality—it just needs to be interesting enough so that readers will stick around long enough for Google AdSense ads (or any other advertising) on your site to work their magic. This may take some trial-and-error; don’t give up too soon if nothing works at first!
Best passive income ideas
In this section, we’ll discuss some of the most popular options for passive income. These are the best ways to make money online without having to do much work other than creating content and driving traffic.
- Affiliate marketing
- Selling products on Amazon
- Selling ebooks/digital products/online courses
- Flipping photos/music online (e.g., Shutterstock)
- Making crafts and selling them online
Best blog ideas for generating passive income
If you are looking for passive income from a blog, you will want to make sure that it is one of these.
- Blog about a topic that you are passionate about. Blogging about something that interests you is the best way to stay motivated in the long run, even if it doesn’t make money at first. This will also allow your personality to shine through and give your audience an idea of who they’re reading (or watching).
- Blog about a topic that has a large audience. Some people may not be interested in what you have to say and will stop reading after just one post, but there are others out there who would follow your journey no matter how long it takes or how much effort goes into producing each piece of content.
- Blog about topics in high demand right now but aren’t oversaturated with content already on the market yet – such as self-improvement articles like this one! People want advice on how they can improve themselves but aren’t getting enough help from other sources so far away… which means there’s plenty left over for our little corner here too 🙂
how to make passive income
There are lots of definitions of passive income, and yes—I’m aware of traditional methods such as investing in real estate and in the market. I do both of those, but that’s not what this website is about.
In my experience, the best form of passive income—and what I focus on here at SPI—is the following:
At Smart Passive Income, we teach you how to build online businesses that take advantage of systems of automation that allow transactions, cash flow, and growth to happen without requiring a real-time presence.
In other words, we don’t trade time for money.
Instead, we entrepreneurs invest our time upfront, creating valuable products and experiences that serve others, like online courses and communities because that’s really all a good business does—it helps other people solve their problems.
We work hard now to continually reap the benefits later.
And unlike real estate or getting involved in the market, the barrier to entry is much lower. There’s far less money needed to invest, the rewards can come in much faster, and what you create is something you can become recognized for.
My first online business, which served the architecture and design community, was created for only $6.95/month, and within 18 months it had generated over $200,000! That’s when I was hooked, and I hope to hook you too!
3 Passive Income Business Models
As you’re learning, there’s lots of ground to cover and I can’t wait to dive in with you. Let’s begin with this video, where I explain three different passive income business models. As you watch, take note of which model best fits your goals.
The Types of Passive Income
Now let’s get more specific. Here are three of my most popular podcast episodes that go into detail about each type of passive income, including which products and services you could potentially offer to your audience. As you listen, ask yourself, “which of these product types are most interesting to me?” Keep notes as you listen.
SPI fans tell me all the time how much these episodes helped them understand the types of passive income opportunities that are out there. I guarantee they’ll help you too.
If you love the episodes, be sure to subscribe to the SPI podcast on iTunes or Stitcher to get new episodes as they come out.
Passive Income Myths: What Passive Income is NOT
Let’s dispel some myths and set realistic expectations before we go any deeper.
How to Make Passive Income: Getting Started
Now that you know what’s up, you have three options:
Option #1: You could do nothing. The truth is, when you do the same ol’ things you’ve always been doing, you’re going to get the same ol’ results—but I know you don’t want that, or else you wouldn’t be here on this website and you wouldn’t have gotten this far down the page. This choice is obviously not yours.
Option #2: You could keep searching for more information on the web. There’s a TON of information, good and bad, all over the place. But why would you continue searching? All of the information you need to get started I’ve organized for you here on the blog, the podcast, and other resources I’ve created for you.
Option #3: You can take action now. You can do it right now with the free course I created called Build Your Own Brand. I built it specifically for beginning entrepreneurs—like you—to make it easy to figure out what your brand is going to be and how to build a website. It’s all in a lesson-by-lesson, easy-to-follow (even if you’re scared of technology), on-demand course. It’s free to access right now, and it’ll show you just how easy getting started is, compared to what you may expect.
Imagine having a website up and running in less than a week. It will happen, but only if you get access to the course—and remember, it’s free. You have nothing to lose!
Build Your Own Brand
Passive Income Business Essential # 1—A website with blog
A website is the first essential of any profitable passive income business done online.
There are a few free options like Blogger, Tumblr, or WordPress.com. Those are great options for some, but I don’t recommend that path for three important reasons:
These three reasons alone are exactly why I recommend going with a self-hosted website. You have more control, it looks more professional, and you can truly call it your own. (For help setting up your website, check out my free Build Your Own Brand course, mentioned above.)
Passive Income Business Essential #2—A Podcast
Launching a podcast for Smart Passive Income was one of the smartest business decisions I’ve ever made.
My How to Start a Podcast guide tells you everything you need to know and do to get up and running with your very own podcast. And if you want even more support creating your show, check out Power-Up Podcasting, my in-depth course on how to create and market a podcast.
Why is podcasting so valuable to passive income online-based businesses? Because with a podcast, you are literally speaking into the brain of your fans—helping to educate and inspire them with your knowledge. You’ll forge a deeper connection with your audience than through blogging alone.
Also, the podcast marketplace is far less saturated than the blogosphere. That means you can stand out from the crowd easier if you produce a high-quality show—which makes podcasting both a great business launch strategy as well as a growth strategy.
Podcasts also become a route to building passive income. Down the road, if your podcast performs well, you may be able to attract sponsors to your show that you know, trust, and that add value to your listeners. Such high-quality sponsors are another fantastic source of passive income.
I only allow sponsors on my podcasts that I know from firsthand experience and that share my values. You can also promote your own products, as well as affiliate marketing products that you trust.
Having these two assets—a website with a blog and a podcast—will be incredibly valuable for building your brand and setting it up for long-term success.
AND they’ll serve as your cornerstone for generating passive income.
This is because they’re the key to helping you build an audience—and once you have an audience who knows and trusts you, you’ll find that it’s significantly easier to build multiple income streams that provide residual income each month.
6 Best Passive Income Ideas for Earning Residual Income
Now that we’ve gone over your passive income basics and essentials, let’s walk through some methods you can use to generate multiple passive income streams.
Creating passive income is all about taking the right steps in the beginning stages to set yourself up for success in the long run—and that takes time… or money.
Yep, there are two key categories for generating passive income: you’ll either need to 1) invest time upfront or 2) invest money upfront.
As I mentioned before, here at SPI, I focus on passive income methods that fall under the time-investment category for less risk, greater accessibility, and the potential for substantial brand recognition and growth.
But to give you a full picture of your options for building passive income, I’ll go over some of the best passive income ideas through monetary investing, too; they’re still useful to know and may be a perfect addition to your passive income streams.
With that said, here are the 27 best ways to make passive income.
1. Affiliate Marketing
In fact, affiliate marketing has been my largest single source of revenue, bringing in over $3 million since 2009.
So, how does this work to make passive income, exactly?
Basically, with affiliate marketing, you recommend other people or company’s products and services to your audience, linked via content on your blog or social media channels. And when someone purchases from your recommendation, you’ll receive a commission from the sale.
It’s an awesome option because it’s easy to get started with, it’s low-risk, and there’s huge profit potential.
One of the most popular and accessible ways to get started is through the Amazon Affiliate Program. People already know and trust shopping from Amazon, and you’ll have a massive range of products to select from.
Just be sure only to choose products that you can stand behind and that will serve your audience well.
Ultimately, to be successful with this, you’ll need to put time into building an audience who trusts that you’ll always steer them in the right direction and then follow through on that.
To optimize your passive income efforts with affiliate marketing, make sure to take advantage of the best tools at your disposal. To help you out, I go over all the awesome affiliate marketing tools you need to know here.
2. Starting a YouTube Channel
Starting a YouTube channel is a great option for making passive income online; it’s easy and free to get started with, and if you play their algorithm right, you can get your videos in front of their massive audience of 2 billion people.
BUT appealing to YouTube’s algorithm is where the difficulty here lies. It takes time, strategic effort, and the delivery of consistent value to build your subscriber count.
You’ll need at least 4,000 hours of watch time and 1,000 subscribers before you can start earning revenue through the YouTube Partner Program.
However, once you get established with your YouTube channel, you’ll also be able to bring in passive income not just through ad revenue but also through affiliate links and selling digital products, like an eBook, art, or merchandise.
And, as a bonus, having a YouTube channel is a great way to help you promote and grow your blog, podcast, and brand audience overall.
3. Paid Membership Business
Like signing up for a gym membership, people join online memberships and pay recurring fees for the sense of community and/or value it brings them.
This could mean setting up a Patreon account and amassing paid members by providing helpful or interesting content.
Or, to avoid having to rely on an external platform (that could change or go away at any time), you could create a membership program on your own site to provide a community for your audience.
To pull this off well, you’ll need to stay consistent, always delivering valuable, curated content that meets your audience’s needs that they can’t otherwise access.
4. Print-on-Demand Designs
If you have a keen eye for design and current trends and know how to use design software, selling print-on-demand designs could be a great option to create passive income.
With print-on-demand, you don’t have to buy any inventory ahead of time, so it’s a low-risk business model.
You’ll work with a print provider, like Printful or Teespring, to sell merch (t-shirts, mugs, bags, etc.) customized with your designs and sold on a per-order basis.
When someone buys one of your designs, the print provider fulfills, prints, and ships the order on your behalf.
This passive income method is quick and easy to get set up, and it requires very little maintenance once you’ve created your designs.
The trickiest part here comes down to making unique, high-quality designs that inspire your people to purchase them.
5. Software as a Service (SaaS) Business
Another potentially lucrative option for passive income is to create an app or software that you can offer as a subscription service—also called software as a service (SaaS).
To do this, it does require coding knowledge or the funds to hire someone who knows how to code.
Keep in mind that this is one of the more time-consuming options; it will take a good chunk of time to plan and get things up and running.
Also, you’re going to have to create and offer a truly valuable solution—and market your solution effectively—to make passive income with this, which isn’t exactly easy.
So, there’s no sugarcoating it; this is a difficult route. But it could be incredibly rewarding for you.
6. Creating an Online Course
Everyone has a skill they can teach, so why not monetize yours AND help others in the process by creating an online course?
Making an online course isn’t too difficult either, but it will take quite a bit of time and effort to ensure it’s useful.
And once you’ve created the content and have everything set up, it can be an incredibly profitable source of passive income.
There are several platforms, like Udemy or Skillshare, that you can choose from to host your course and facilitate getting your course paid viewers.
However, I always recommend using your website to give you greater control and true ownership of your course.
how to generate passive income with no initial funds
What is passive income?
Passive income includes regular earnings from a source other than an employer or contractor. The Internal Revenue Service (IRS) says passive income can come from two sources: rental property or a business in which one does not actively participate, such as being paid book royalties or stock dividends.
“Many people think that passive income is about getting something for nothing,” says financial coach and retired hedge fund manager Todd Tresidder. “It has a ‘get-rich-quick’ appeal… but in the end, it still involves work. You just give the work upfront.”
In practice, you may do some or all of the work upfront, but passive income often involves some additional labor along the way, too. You may have to keep your product updated or your rental property well-maintained, in order to keep the passive dollars flowing.
But if you’re committed to the strategy, it can be a great way to generate income and you’ll create some extra financial security for yourself along the way.
Passive income is not…
20 passive income ideas for building wealth
If you’re thinking about creating a passive income stream, check out these 20 strategies and learn what it takes to be successful with them, while also understanding the risks associated with each idea.
1. Create a course
One popular strategy for passive income is creating an audio or video course, then kicking back while cash rolls in from the sale of your product. Courses can be distributed and sold through sites such as Udemy, SkillShare and Coursera.
Alternatively, you might consider a “freemium model” – building up a following with free content and then charging for more detailed information or for those who want to know more. For example, language teachers and stock-picking advice may use this model. The free content acts as a demonstration of your expertise and may attract those looking to go to the next level.
Opportunity: A course can deliver an excellent income stream, because you make money easily after the initial outlay of time.
Risk: “It takes a massive amount of effort to create the product,” Tresidder says. “And to make good money from it, it has to be great. There’s no room for trash out there.”
Tresidder says you must build a strong platform, market your products and plan for more products if you want to be successful.
“One product is not a business unless you get really lucky,” Tresidder says. “The best way to sell an existing product is to create more excellent products.”
Once you master the business model, you can generate a good income stream, he says.
2. Write an e-book
Writing an e-book can be a good opportunity to take advantage of the low cost of publishing and even leverage the worldwide distribution of Amazon to get your book seen by potentially millions of would-be buyers. E-books can be relatively short, perhaps 30-50 pages, and can be relatively cheap to create, since they rely on your own expertise.
You’ll need to be an expert on a specific topic, but the topic could be niche and use some special skills or abilities that very few offer but that many readers need. You can quickly design the book on an online platform and then even test-market different titles and price points.
But just like with designing a course, a lot of the value comes when you add more e-books to the mix, drawing in more customers to your content.
Opportunity: An e-book can function not only to deliver good information and value to readers, but also as a way to drive traffic to your other offerings, including audio or video courses, other e-books, a website or potentially higher-value seminars.
Risk: Your e-book has to be very strong to build up a following and then it helps if you have some way to market it, too, such as an existing website, a promotion on other relevant websites, appearances in the media or podcasts or something else. So you could put in a lot of work upfront and get very little back for your efforts, especially at first.
And while an e-book is nice, it will help if you write more and then even build a business around the book or make the book just one part of your business that strengthens the other parts. So your biggest risk is probably that you waste your time with little reward.
3. Rental income
Investing in rental properties is an effective way to earn passive income. But it often requires more work than people expect.
If you don’t take the time to learn how to make it a profitable venture, you could lose your investment and then some, says John H. Graves, an Accredited Investment Fiduciary (AIF) in the Los Angeles area and author of “The 7% Solution: You Can Afford a Comfortable Retirement.”
Opportunity: To earn passive income from rental properties, Graves says you must determine three things:
For example, if your goal is to earn $10,000 a year in rental cash flow and the property has a monthly mortgage of $2,000 and costs another $300 a month for taxes and other expenses, you’d have to charge $3,133 in monthly rent to reach your goal.
Risk: There are a few questions to consider: Is there a market for your property? What if you get a tenant who pays late or damages the property? What if you’re unable to rent out your property? Any of these factors could put a big dent in your passive income.
And economic downturns can pose challenges, too. You may suddenly have tenants who can no longer pay their rent, while you may still have a mortgage of your own to pay. Or you may not be able to rent the home out for as much as you could before, as incomes decline. And home prices have been rising quickly due in part to relatively low mortgage rates, so your rents may not be able to cover your expenses. You’ll want to weigh these risks and have contingency plans in place to protect yourself.
4. Affiliate marketing
With affiliate marketing, website owners, social media “influencers” or bloggers promote a third party’s product by including a link to the product on their site or social media account. Amazon might be the best-known affiliate partner, but eBay, Awin and ShareASale are among the larger names, too. And Instagram and TikTok have become huge platforms for those looking to grow a following and promote products.
You could also consider growing an email list to draw attention to your blog or otherwise direct people to products and services that they might want.
Opportunity: When a visitor clicks on the link and makes a purchase from the third-party affiliate, the site owner earns a commission. The commission might range from 3 to 7 percent, so it will likely take significant traffic to your site to generate serious income. But if you can grow your following or have a more lucrative niche (such as software, financial services or fitness), you may be able to make some serious coin.
Affiliate marketing is considered passive because, in theory, you can earn money just by adding a link to your site or social media account. In reality, you won’t earn anything if you can’t attract readers to your site to click on the link and buy something.
Risk: If you’re just starting out, you’ll have to take time to create content and build traffic. It can take significant time to build a following, and you’ll have to find the right formula for attracting that audience, a process that itself might take a while. Worse, once you’ve spent all that energy, your audience may be apt to flee to the next popular influencer, trend or social media platform.
5. Flip retail products
Take advantage of online sales platforms such as eBay or Amazon, and sell products that you find at cut-rate prices elsewhere. You’ll arbitrage the difference in your purchase and sale prices, and may be able build a following of individuals who track your deals.
Opportunity: You’ll be able to take advantage of price differences between what you can find and what the average consumer may be able to find. This could work especially well if you have a contact who can help you access discounted merchandise that few other people can find. Or you may be able to find valuable merchandise that others have simply overlooked.
Risk: While sales can happen at any time online, helping make this strategy passive, you’ll definitely have to hustle to find a reliable source of products. Plus, you’ll have to invest money in all of your products until they do sell, so you need a robust source of cash. You’ll have to really know the market so that you’re not buying at a price that’s too high. Otherwise, you may end up with products that no one wants or whose price you have to drastically cut in order to sell.
buy a blog for passive income
When it comes to generating passive income, several ideas and strategies get tossed around quite frequently, one of them being blogging. So the question is, can you really make passive income from a blog? In a word, yes.
Four Bloggers Who Make Some Serious Cash
By now, we’ve all heard claims that bloggers can make six or even seven figures per year. But isn’t that an exaggeration? Are there actually people that make significant sums of money running blogs online?
While it certainly takes some work — and isn’t the norm — it’s more than possible. Just ask the following bloggers, all of whom have transformed their lives by creating blogs that generate high passive income on a monthly basis.
Those are just four examples. It’s relatively simple to find more than 4,000 examples of bloggers who are making lucrative full-time revenue with blogging. There are tens of thousands more who are using blogging as a passive, supplemental source of income to cover bills or upgrade their lifestyle.
In other words, it really doesn’t matter if your goal is to make $300 per month or $3 million per year — blogging can help you get there.
The key to making money blogging is to have a game plan. You can’t just throw some words into cyberspace and hope they come back with dollar signs. (That’s highly unlikely.) Instead, you need to be intentional with your approach.
While every blogger has their own unique formula for success, here’s a basic three-step plan that will increase your odds of building a cash-generating blog.
Step 1: Start a blog.
The very first step in the process is to create a blog and launch it out into cyberspace. In many ways, this is the easy part. However, there are several things you’ll need to keep in mind if you want to do it well the first time around.
According to The Blog Starter, which has helped many people successfully launch revenue-generating blogs online, there are six overall steps to follow when starting a blog. Four of them occur during this initial step.
Once you check the box on each of these four items, you can officially say you have a blog. That’s more than 99 percent of people can say, so give yourself a pat on the back.
Step 2: Monetize your blog.
Having a blog is one thing. However, you’re not starting a blog so that you can journal your thoughts online. You’re starting a blog because you want to make some serious passive income. This means you have to monetize it. Here are the four most common blog monetization methods:
Every blog monetization strategy will look different. Some bloggers make 100 percent of their money from affiliate marketing. Others focus on selling their own digital products and courses. You also have bloggers who do a combination of everything. You’ll have to decide what makes the most sense for you.
Step 3: Automate and outsource your blog.
Successfully monetizing your blog is super exciting. Whether you’re making several hundred dollars per month or thousands, there’s something very rewarding about seeing your blog go from concept to published website to cash-generating machine.
However, unless you like the idea of spending 40 to 60 hours per week writing content, optimizing your website, and monitoring your email inbox, you must find a way to turn that income into passive income. There are two primary ways you can do this:
You don’t have to automate and outsource everything at once. Start with the tasks that are both time-consuming and undesirable. In other words, if you hate the SEO component of blogging, there are always SEO professionals who would be happy to do the work for you. Alternatively, if you find yourself spending two hours per day answering emails and replying to comments, hiring a virtual assistant might be a good move.
Once you have the most time-consuming and undesirable tasks out of the way, you simply let things progress from there. Try automating/outsourcing one new task every week. Before you know it, you’ll only have to spend a few hours working on your blog as opposed to dozens of hours. You’ll also discover that it’s easier to scale up your revenue when you aren’t the only one creating content, running promotions, or selling products.
Ready, Set, Blog!
No one is saying that you’ll magically start generating $10,000 in monthly passive income if you start a blog. However, if you follow the steps listed above and really commit to honing your strategy, you’ll eventually start generating a steady drip.
At first, your revenue might be $100 per month. Then, it could go up to $1,500 per month. Next, $5,000…and so on. It’ll take time — and plenty of work on the front end — but you can get there. The path forward has already been blazed by thousands of people ahead of you.