5 Types of Online Passive Income

Today I want to discuss the 5 types of online passive income that you can build for your websites. Passive income is the best type of income that you can build, in my opinion. Who wouldn't want want to make money while you sleep!

Initially there is some hard work involved but the reward is a huge payoff. I think most of us would gladly work hard for a month or two only to be paid for that work every month afterwards. I highly recommend building multiple income streams from different sources. If you start making money from one source, then start working on another. The advantage of having multiple income sources is the ability to absorb a hit financially. If one stream dries up or does poorly, you have many other income streams to keep you afloat. This is why it is crucial to build multiple streams of income to secure your financial future. There are a few different types of passive income that we can target so let's take a look at them.

1. Affiliate Marketing - This is probably the most used typed of passive income out there. Affiliate marketing is where you sell other people's products for them and for every sale you receive a commission. This is where you would build an e-mail list or website that targets a specific niche then begin selling products to your targeted visitors. This typically includes reviews of these products to help assist your visitors with their buying decisions. The biggest affiliate networks you can sign up for are clickbank.com, amazon affiliates, or cj.com.
2. Selling Ad Space or Adsense - Online advertising is one of the most used revenue generators out on the web. Similar to affiliate marketing but you build websites for specific niches that have the potential to generate a large amount of traffic to. The hope is your visitors will click on your advertisements making you some nice cash each day. Google Adsense is one of the biggest ad networks you could join.
3. Product Creation - This is what I consider a step up in the internet marketing world. This method is when someone wants to build their own informational product and sell it through their website or another medium. Product creation is as simple as someone building a product that they consider themselves an expert at, which can be in any niche. We are all good at something, think about something you may be good at that you could create and sell.
4. Referrals - How about that product you just created? Wouldn't it be nice if other people started selling your product for you? You could just sit back while an army of affiliates run around the web promoting your product. If you can recruit the affiliates and possibly super affiliates, you could see a major win fall.
5. Membership sites - Create your own membership site in a niche you're passionate about. Build a private portal with secret information about your niche that people would be hungry to see. The key is to release new information each month that will retain your clients. There is an overwhelming amount of people who completely forget about some of their memberships and will pay the subscriptions for months before ever visiting again. It's definitely not something to be overlooked.

Building multiple streams of income is the biggest thing you can do for your financial future. Even if you stick to one of these 5 methods you can still diversify between income sources. Say you were only going to target affiliate marketing, you could sign up for three separate affiliate networks so you would have multiple sources of income. The most important thing is not to put all your eggs in one basket.