This is a fundamental concept for anyone looking to become truly successful online.
Note: this post is on examples of types of passive income. For real life case studies of proven success, click here.
What Is Passive Income?
Unlike “normal” income streams, like a job with a bi-weekly paycheck, passive income is a means of earning money where you earn revenue as dividends over time, rather than a lump sum up front.
This is important because those dividends can easily combine to provide an earnings potential far greater than that offered by most jobs. Passive income can be the road to real wealth.
3 Examples of Passive Income
The first example of passive income would be to incorporate subscription services into your affiliate site.
This is an especially powerful model, because for every sale you make you continue to earn revenue from that sale for months or, in some cases, years.
For example, imagine you make 10 sales a month of a $20 subscription commission. Even if the number of new sales you make per month stays the same, your revenue will continue to grow over time.
By month 10, you’ll still have $200 in new sales, just like in month 1, but your total sales will be $2,000 for the month!
Digital products are often some of the best passive income streams, because they provide a way to earn recurring revenue from a small amount of upfront work.
Creating your own digital product works best after you already have an established affiliate site with decent traffic. Once you’re at this point, you can bundle your content into an ebook, video training, podcast, or other service, which you can sell over and over again to your new visitors.
This is a great “extra” to include on your site. Think about it, even if you only get a 1% conversion rate (which is low), a $10 digital product would add $100 per thousand visitors to your monthly revenue stream!
Finally, affiliate email lists are another great example of passive income you can generate from your site.
While email marketing isn’t truly “passive” in the sense that you do have to send out an email every time you want to run a campaign, the passive element is the act of building up your subscriber base.
As your email subscription numbers grow, you’ll be able to easily access thousands of users with a great product offer at any time.
Used sparingly (you don’t want to spam!), this is a great way to get extra visibility in front of your users who were interested in your site, but may or may not have made a purchase.
Sometimes that extra touch point is all it takes to convert an interested user into a sale!