How to Generate Passive Income Online?

By WebMarketKings

July 2, 2019

In this article we will look at how to generate passive income, especially on the Internet.

To do this, we will look at the definition of passive income. We will also see what leverage is and how to create a timeless business.

Finally, we will end with advice on how to use your passive income.

What is “passive” income?

Passive income is by definition income that is paid to you even if you are not working.

They oppose so-called “active” incomes, which are incomes correlated to time and the intensity of the work provided.

Income from employment is active income. Indeed, if you work for less time, you are paid less.

In addition, if you are sick, if you cannot go to work for any reason, or if your company decides to fire you, you no longer receive anything.

If you ever want to be able to generate income without being present, the implementation of passive income is essential.

Passive income is income that is not correlated to your productivity or time, i.e. it will be paid to you whether you decide to work or go to the beach.

As a general rule, passive income requires a single one-time setup (for example, you must first train before starting your business and automate it in order to receive your passive income).

Passive incomes are like planting seeds in the soil without having too many results at first.

Then once the tree grows, you will regularly harvest the fruits of your seeds planted at the beginning. And this has been the case for many years.

revenu passif

Advantages of having passive money

The main advantage of passive money is that it is not correlated to the time spent on it.

That is, if you spend 2 hours if your investment or more if it is a passion. Income will fall even while you are sleeping at night or on vacation.

Here is a non-exhaustive list of the main sources of passive income:

  • The dividends
  • Rents paid by a tenant
  • All forms of interest you receive on your capital
  • Copyright and patents
  • Income from affiliation
  • Income from a company that you have automated (blog for example)
  • Creating a blog can become a passive source of money if it is monetized and automated through infoprenariat

Disadvantages of passive money

If passive incomes seem to be a kind of holy grail, it is because in a sense they are. First of all, most passive income is extremely difficult to set up initially.

If you decide to start a business and then automate it, you will probably have to work extremely hard during the launch period, and this for uncertain results, which will require confidence, seriousness, and extraordinary discipline.

Second, most passive incomes still require some maintenance. Indeed, let’s take the example of a blog or a YouTube channel that must always be powered by content to continue to “run”.

In the case of real estate, the owner must often be present to carry out work or give his agreement with a rental management agency.

Of course, making money without doing anything is a dream for the vast majority of us. However, it is quite possible to generate income without necessarily spending 35 hours or more.

For my part, I would rather devote myself entirely to my company and be free and work hard to develop it than continue working as an employee to hope for an increase of a few cents an hour.

The leverage effect

In the field of finance, leverage is a term used to describe any technique designed to increase profits, but also losses.

Without going into too much financial detail we will see what it looks like when creating a blog for example.

At the beginning, when you create your blog you give some of your time and invest a few euros in buying training and hosting your website.

Initially, creating content and online training will take you some time.

However, the work done will still be active the next day, in the following weeks and in the coming years if the blog’s theme is timeless.

Here, if you sell through your blog training courses that took you a month to create, they will bring you money for each sale when you only worked once on them.

The creation of content will attract many visitors to the blog and thus by loyalty process the prospect will buy our product.

revenus passifs

Create your business in a timeless theme

To be able to generate passive income through your blog, it is better to turn to a timeless theme.

Indeed, if you decide to create a blog on fashion or video games for example, it will be very difficult to generate regular income without updating this information.

In the case of the video game or computer industry, technologies are evolving rapidly.

This will force you to study the topics and refine your products or articles to sell in affiliation for example.

Creating a blog with a timeless theme (nutrition, money, fitness, self-confidence, seduction…) will allow you to simply make it live longer and have a long-term vision.

Each item created will still be valid five years later and each training created and sold will not need to be updated every 6 months.

Thus, creating a blog in a timeless theme can be a really interesting solution to generate passive income.

The advice and therefore to ask yourself if your business will still be relevant in 5, 10 or 20 years.

How to reinvest passive income?

Once you earn money from passive income, the best advice and reinvest it. Indeed, you can be satisfied with the money you earn.

The problem is that if you don’t maintain your business, it will decrease and over time you will simply earn less or no more at all.

The objective would be to reinvest one third of its profits in improving your business or creating a new business.

Indeed, we must have a diversification strategy and not put all the eggs in the same basket. This strategy is really important to me.

If your business for some reason doesn’t work anymore you will lose everything. The aim is to create several types of passive income so that they do not depend on just one.

Let’s take an example with blog creation.

If you earn 1,000 euros per month with your blog, the objective would be to invest about 334€ in improving it (advertising campaigns, blog optimization, delegation…) or creating a new blog or YouTube channel or others in the case of a diversification strategy.

Smarter than leaving 100% on an A passbook!

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