There are traditional ‘offline’ passive income business models that you will recognize. For example, rental from a property, royalties on an invention or an insurance agent who gets commission every year when a customer renews his policy. So how can you you implement online passive income into your business?
The basic concept for a passive income business model is that you do the work once and then that work is repeated on autopilot for you, producing income every month. Passive income is also sometimes known a residual or recurring income. By far, the best place to set up a passive income business is the internet.
Many successful online marketers know that the secret to long-term success is generating consistent income each month. With an online passive income business you will receive a monthly payment for as long as the buyer uses the product or service and this can amount to a significant income in the long run. So how can you implement one into your business?
1. Membership Website
If you have a niche or a business idea that you believe is an evergreen one (evergreen niches never get outdated) you can create a passive income business with a membership website. A membership website gives access only to those who pay a certain fee for the knowledge you share on that website.
But why would people pay when they could look on a search engine for the information they want? First of all, not all information found on the internet is reliable and people know that. People know that if they want the best advice, the best training, and the best information, then they have to go to the experts to get it.
Whenever you excel in an area, you deserve to get paid for your expertise. Content is a goldmine online and smart marketers know how to prospect content and make it work to bring in profits. You can teach people the skills you have by setting up weekly how-to articles or webinars, cover how-to segments from start to finish and constantly give members fresh material, so that they stay with the membership site longer.
The monthly fee should be based on how much the content is worth. Not how much it’s worth to you, but how much it’s worth to the members. Your membership will grow if your fees are right. If you start losing members, then you’ll want to recheck the value of what you’re offering. Always test and tweak different price points.
2. Affiliate Products
If you don’t want to create a membership website, there are many services and products that you can sell as an affiliate that payout a passive income. Although the first payment of these passive online business models may be lower than a regular one-off product sale that you receive from other affiliate sales, they have significant long term value. There is a wide range of software licences, for example, autoreponder email marketing systems, that become an integral part of an online business and are used for many years.
You can also find a large selection of recurring income products such as software licenses, subscriptions, membership sites and newsletters at Clickbank. To find the recurring income products, log into your account (if you don’t have an account, they are free to set up) and click on Marketplace. Select the Category of product you want to promote and then select ‘Recurring Billing’ from the Product Type dropdown menu and click Go.
3. Create Your Own Product.
This is very similar to setting up your own membership website. The main difference is when you create your own digital product, you get other people, or affiliates, to sell it for you. By creating your own products, you’ll see the profits go beyond anything you could earn if you just stuck to selling other people’s products. That’s because you get 100% of the profits for some sales and a percentage of profits that your affiliates send your way. Plus, if you publish an eBook, you can insert affiliate links or links to other products you own within it and you’ll end up with even more sales.