How To Create Passive Income Online

Is passive income even a real possibility? Many questions about how to create passive income online are circulating on the Internet today.

I have read articles recently that question the validity of creating an income that you can walk away from and get paid over and over for the work you are doing right now.

That used to be the big selling point of building a network marketing business. At least it was until people starting realizing how hard it was to really achieve that.

I came across a dated article on Forbes from 2011 titled The Top 4 Reasons Why ‘Passive Income’ Is A Dangerous Fantasy

Here they are in a nutshell.

1. You Can’t Stay Ahead of Competition Passively
2. You Can’t Maintain a Loyal Tribe of Customers Passively
3. You Can’t Lead Great Teams Passively
4. You Can’t Create Meaning, Passion, or Purpose in Your Life Passively

Everyone one of these goes on the assumption that to maintain the level of income you are at you are going to have to work to keep it.

I call that a major bummer for people who would like to enjoy life why they are still young enough to do it.

Let’s attack these 4 things independently if you want to create a passive income.

your competition do not stop if you want passive income onlineYour Competition Does Not Stop

Okay, I’ll buy that to a certain point. Businesses are not going to stop growing just because you stop working. The only way around this is to get into a business model where your business continues to grow even if you are not building it.

That’s where network marketing or some forms of affiliate marketing can still create a passive income that’s long-term if you build it correctly.

Loyal Customers

I think it’s safe to say that you are not going to be actively servicing your customers anymore. In the network marketing business, your retail customers will either continue to purchase online, or you may be able to refer them to another distributor.

From the affiliate marketing point of view, you’re looking at doing Internet marketing in a hands-off way where you’re creating funnels, selling products, and following up with people via email.

You can hire a virtual assistant to conduct customer service aspects of your affiliate business if you don’t want to deal with that anymore.

How To Create Passive Income Online - By Team BuildingTeam Building

Unless you do two-tier affiliate marketing team building is somewhat irrelevant in building a passive income using affiliate marketing.

In network marketing, that certainly isn’t the case. You want to build great teams because this is where your sales volume comes from.

However, most network marketing compensation plans have a point where people can break off from their upline and earn additional incomes because they’ve reached a certain level within the business. At that point, you’re earning an override on their volume and they are competent enough to run their own business without you.

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Purpose In Your Life

I kind of agree with this to a certain extent. If you build a business that is large enough to generate income allowing you to do anything want you probably have been very passionate about it.

Do you really want to give up that purpose or passion?

One thing about an Internet business is you do not have to if you don’t want to. You can travel the world, or do whatever you want, and still, work your business part-time whenever and wherever you want to do it.

You build a passive Internet that income that is large enough to let you have the freedom to choose. That’s a very important passion that many people don’t want to totally quit.

This is why you see billionaires continue to work every day because they really love what they’re doing. Millionaires and even thousandaires are not any different! 🙂

Passive How?

Passive Income that anyone can create

So, here is my question.

If you wanted to go about creating a passive income online, how would you do it?

1. Network marketing.

This is still a very good business model for the average person to get involved in.

It allows you to use the concepts of leverage and duplication to build a business that you can walk away from. The realities are however that most people never sponsor more than two people in their business.

Plan on a long-term attempt at this before you find enough people like yourself that want to build a business of their own and you can earn passive monthly overrides on.

2. Niche affiliate websites. What kind of niche affiliate websites?

Here is an example…

Millions of people are underwater in their homes and are about to lose them to foreclosure. You start a niche affiliate website on distressed mortgages that provides information on how people can overcome this problem.

You monetize it with affiliate products that you earn commissions selling. These might be e-books or physical products such as a mortgage calculator they get for free from you.


Encourage people to join your email list by giving them something for free such as the mortgage calculator. Then follow up with those people in the future making affiliate sales.

My Conclusion On How To Create Passive Income Online

Create a 10-year plan and work on building an authority site that will sustain itself paying you commissions on all of the new traffic it is getting.

Is this for real? Yes, it is, but you’re going to need some training on how to do it.

free starter membership with Wealthy Affiliate

For that, I suggest joining the Wealthy Affiliate program for free.

Go to the starter program and get the basics of affiliate marketing.

Then upgrade to a premium membership where you can really ramp up your affiliate marketing business.

This is how I make money. I sell the premium membership and earn commissions on every membership I sell.

As long as those memberships stay active I make a passive income every month and this is another example of how it could be done! I have a plan for building my list off of my blog and blogging with new content.

What is your plan?

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2 thoughts on “How To Create Passive Income Online”

  1. Hi David,

    I guess the idea of having a passive business is attractive to many. As you say, most interpret that as being no work, and that is not the case. You have to put in the work first to get it to a level where it is at least somewhat passive.
    Good article!

    • Hi Annie, thank you for dropping by. It is mind-boggling to see that people still have the mindset that they can get rich overnight without putting in any work. They had gone to school for so many years and had to go through training just for their 9 to 5 job and think building a business for themselves from home can happen immediately. Glad that you see that this is not the case.


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