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Internet Marketing > Weekly
Tips > SSWT 2/09/05
Earning
Passive Income Online
The
phrase "Passive Income" can be a bit misleading. There
is no such thing as "something for nothing" or "get
rich quick". It has even been said that Overnight Success
can take up to 20 years to achieve.
So
what exactly IS passive income?
Passive
Income is what you receive when you are getting paid for what
you DID, instead of what you DO. In traditional business models,
and jobs, we are accustomed to getting paid by the hour - or getting
paid by the project. This is "getting paid for what you DO".
Since
there are only so many hours in a day, and so many days in a week...
we are limited as to how much we can earn (or "do").
Add in the fact that many of us are raising children, managing
homes, and maintaining all of the things we have accumulated in
life... and we are even more limited.
This
is a source of frustration and financial stress for most.
Let's get back to "getting paid for what you DID" -
or Passive Income. In this scenario, you are getting paid over
and over again for something that you have *already* done.
In
the offline world people generally invest in rental property,
or other real estate options, to accomplish this.
Online,
it's not much different. But there are a lot of options for investing,
and the investments can be MUCH lower - with the potential for
MUCH higher returns.
The goal is to work *smarter*, so that you can earn more in less
time. Let's take a look at a couple of examples:
-
Creating Your Own Product -
There are many different types of products that you can create,
but on the topic of Passive Income we are going to concentrate
on the products that can bring you recurring income after development.
Not the type that you create and sell, meaning that you have to
continue creating to continue the selling process.
Products
that you can earn a recurring income from include:
These
are 4 types of products that are relatively easy to develop...
and have very low upfront cost or investment.
--> NOTE: If you already have one of these
types of products, you can very easily double or triple your
income by expanding the material into one (or all) of the
other formats!
Some people are full of information, or are natural born writers.
Creating products comes very easy for them. But the majority are
not and have a very difficult time deciding on a topic, and completing
the project.
If
that sounds like you, you'll want to take a look at these two
options. One will practically GIVE you a product which you can
repackage or even edit to your liking... the other will assist
you with developing your own product on any topic (and even help
you *choose* that topic):
NichePD
- Public Domain Content for Niche Markets
I signed up for NichePD immediately - and downloaded
6 Public Domain titles, in both PDF and Word formats. This enables
you to give the product away as-is, or open the Word file and
edit/add to your heart's content. The Niche markets have already
been researched, and the content has already been formatted -
talk about EASY! ;)
(You
may also want to look at Nicheology,
which will offer you "products in the rough")
Remember - you can choose one or all 4 of the
product formats mentioned above to make your product unique! You
can also use these products as "content" to create a
mini-site on a niche topic ;)
The
One Minute Ebook
There
is a lot more to this little gem than meets the eye! As you know,
I am in the process of writing my first ebook... and I am using
OME as a complete step-by-step guide to lead
me through the entire process.
If
you would like to write an original book, or ebook, this will
be the best $27 that you can invest in your project. Everything
you need to consider - from the topic to the formatting... right
down to the sales process - is right there in black and white
for you.
See
my review of The One Minute Ebook online at:
http://www.selfstartersweeklytips.com/product-review.htm
I
can tell you this much: In two days, I wrote half of my book.
I opened up The One Minute Ebook and scanned the chapter headings.
I did a bit of "speed reading" through the chapters
that I knew I needed to learn the most on. I then printed out
the "how to" steps from several sections... and then
I began to gather my resources, create my outline - and WRITE.
Again,
you can find out more about OME at my site, here:
http://www.selfstartersweeklytips.com/product-review.htm
-->
NOTE: We'll be discussing the options for Product Creation
in more detail during the Passive Income Teleseminar in March
- so stay tuned to hear more about that event, and how you can
get yourself registered to attend. Those that attend will also
be receiving a
complimentary copy of my new Passive Income Guide (with step by
step instructions for setting up your own streams of passive income)
prior to it's public release.
You
do not have to create your own product(s) in order to earn Passive
Income. As an alternative, you can promote other people's
products using "auto-pilot" methods. Otherwise known
as Affiliate Marketing. You can also use affiliate programs to
"passively" double or triple your income from your own
product line! Read on...
- Affiliate Marketing -
The #1 question that I am asked is: "How
Do I Get Started in Affiliate Marketing?" You can read
the Q & A posted here on the website at this page:
www.selfstartersweeklytips.com/ebiz/affiliate-marketing.htm
The main point that I try to convey is that you shouldn’t
"over complicate" the process. Choose a product &
go for it!
Figuring
out which products to promote, though, is often the barrier that
keeps most people from getting started. Click on the link above
and keep reading - after the Q & A section, I go right into
the "dig in and get started" details. From that point,
you should be well on your way to choosing a "niche"
and finding related affiliate programs to work with.
How
to Turn Affiliate Marketing Into a Source of Passive Income...
You cannot simply add banners to your website, or put a link in
your email signature,
and expect to "earn several hundred dollars a day!".
It won't happen. That said, here are
3 sure-fire ways to do very well with Affiliate Marketing:
1) SEO (Search Engine Optimization)
Create
a website (large or small) and optimize it for specific search
terms, so that your pages show up in the top ten on the major
search engines for popular keyword phrases. You can a) put Adsense
on these web pages, or b) promote affiliate programs related to
your content.
Once
you develop the site, and put it into motion (have it indexed
& ranked), people will search for these terms and visit your
site 24 hours a day. While you are sleeping. While you are away.
While you are busy doing other things. And done right... you will
make sales ;)
***
This can be done with a free
HTML Editor, a $5
website template, an inexpensive
hosting account... and your taking the time to learn the steps
along the way from information sites or popular discussion forums.
2) PPC (Pay-Per-Click)
You
can also use Pay-Per-Click to advertise your affiliate programs.
With this method, which is paid advertising, you pay for each
click-through your ad generates from the major search engines.
The two most popular options are Google Adwords and Overture.
It
is no longer "easy & profitable" to promote affiliate
programs via PPC with a direct link (an affiliate link). You will
need to create "Landing Pages" or direct the traffic
to your own web page, which promotes the affiliate program.
That
being the case, the "Google Cash method" just isn’t
producing the same kind of return it was prior to the recent PPC
policy change at Google Adwords. This makes the "SEO method"
MUCH more appealing (and search engine rankings are free, I might
add).
That
said, once you develop your affiliate-based site, you can use
PPC to drive highly targeted traffic to your new pages. This is
a great way to obtain initial traffic, while you are waiting for
your web pages to become indexed and ranked in the major search
engines.
***
For resources on both SEO and PPC (including several highly
recommended free options), see: www.selfstartersweeklytips.com/resources.htm
You
may also want to see the SSWT Archives for more resources on designing
your own website (cheap & easy), as well as promotional strategies:
www.selfstartersweeklytips.com/archives.htm
3)
Viral Marketing
For
this option, you would go back to the first section on developing
your own product... except instead of planning to SELL that product,
you would create it and GIVE IT AWAY.
Why
in the world would you want to give away a product you worked
so hard to develop?? (Um, or NOT, if you used the resources above
*wink*)
Simple:
Because it's easier to give something away than it is to sell
it. Therefore, you could literally put hundreds of thousands*
of copies of your product into the hands of interested readers
(ie: your targeted market).
You
would then use Affiliate Programs for products related to your
topic as your source of revenue. Strategically placed within your
book or product, these resources will result in sales which you
will receive commission for.
For
example, if you write an ebook on the topic if Home Schooling,
and include the absolute best (quality) resources at the lowest
prices (great deals)... a percentage of your
readers will follow your recommendation to order these products
online.
After
all, YOU are the expert.
So
there you have it... 3 sure-fire ways to dig in and do well with
Affiliate Marketing, 2 super-simple ways to create your own product
FAST, and 4 possible products you can begin working on right away!
Take
action, and you are well on your way to earning a substantial
Passive Income!