What is passive income?

Passive income is often misunderstood. Yes, you can make money while you sleep, but it’s not as simple as set-it-and-forget-it. To make money, you need systems and planning. Passive income is basically making money after you have invested money or time. If you purchase stocks, you can make money (or lose it) once the purchase has been made (money investment). You can also make money every time a hit song is played. It was time-intensive to create it once and it continues to earn money.

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Although blogging is one of the most labor-intensive and time-consuming ideas on this list it can still be done on a part-time basis. Blogs that provide high-quality, compelling information are the best for passive income. There are many ways to monetize information blogs, including:

  • Affiliate Marketing
  • Contextual Ad Feeds, such as Google AdSense
  • Sell Ad Space Directly
  • Selling digital products made by you
  • Sponsorships

Email List

An email list should be a part of every business website. However, not all email lists require a large site or blog. You can actually build passive income with an email list by creating a squeeze page or landing page and a thank-you page.

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Your email newsletter should be like a blog. People don’t want to receive spam. You can also promote affiliate products and products, as well as tips and ad space.

Information Products

You can make ebooks, online courses and other digital content while you sleep. Although they are time-consuming to create, once you have created them and set up the process for selling them (e.g. Only the marketing is left after you’ve created them and set up the system for selling them (i.e. Amazon or website).

The system works in the same way as an email list. The system processes the order and delivers the digital product. A program can be created to allow you to have multiple people selling your products. This will duplicate your efforts and increase your marketing reach. ClickBank makes it easy to manage your affiliate program. Clickbank will take care of that.


Although it might not seem that selling tangible products would make you a passive income source for your business, dropshipping can make this possible. Drop shippers provide everything: the product, packaging, shipping and even your business label. You only need to market the product. Drop shipping products can be promoted in a number of ways, including on your website, through an e-commerce site or through Amazon’s fulfillment program.

Dropship options include print-on demand, which allows you to design mugs, t-shirts and other customizable items and then sell them via dropship.

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Most royalties are associated with music and books. They are basically earned percentages from sales. A publisher may offer to publish a book and pay royalties (a percentage) for each sale. This is the most difficult option for passive income. It is difficult to get a publisher or other company to purchase your creative work. The amount you make per sale is usually very low, perhaps just a few cents on a sale of $10. In book publishing, royalty payments are typically paid every six months. This is unless you have earned more than any advance. A loan is a form of advance and must be repaid before you can start receiving your money.