If you’ve read any of my previous posts you will find that I talk alot about making money passively as opposed to getting paid one time for your time and effort.
Now when I mention the word passive it sort of makes me think of the buzz word “passive income”, that has been over used by marketers and even non marketers for years.
In fact when I hear the word passive income it takes me back to the old MLM days, where that term was thrown around like a badge of honour by the top income earners in an MLM company.
Only problem is, the little guy always lucks out, and never makes any money, which means that they never experience a passive income.
However, be that as it may, earning a passive income is a reality, and I am fortunate enough to be able to earn a passive income myself.
If you’re reading my stuff for the very first time and don’t know who the heck I am, or my online story, then here’s a short bio.
I like to think that I help steer people in the right direction to earning an income online, but ultimately you’re the one who has to walk the path.
So in this article I want to give you a little insight into how I earn a passive income online and how you can too.
So let’s get started.
But in order for me to do this, I need to explain the difference between an active income model and a passive income model.
Now there is a big difference between the two, and hopefully I can explain why you should always be looking to adopt the passive income model and how to go about it.
Contents
The Active Income Model
This is pretty self explanatory really.
I provide a service of some type to some one who is willing to pay for it, and as a result, I get paid.
For example, if I was a freelance writer, then I would create articles or website content for a website owner, and in return he pays me $xx for my services.
So that’s cool.
Only problem with the active income model is that if I don’t work, then I don’t get paid.
This is not dissimilar to having a job really, where you have to continue to show up to work everyday in order to get paid.
Nothing wrong with this model, other than you’re always trading time and effort for money and at some point you always reach a ceiling.
The Passive Income Model
This model is where you continue to get paid even when you’re not working.
So you could be taking the kids to a Soccer game or Basketball game, whatever, and you’re generating sales while your at the event.
You could be cooking dinner and some where around the globe someone is buying a product from you without you even knowing about it.
I know it might sound like a fairy tail, but the reality is, this is happening all over the world every second of the day.
And one of the benefits is, you don’t even have to own a product.
It’s called affiliate marketing.
The beauty of this model apart from the fact that you don’t have to show up to work everyday in order to earn a living, is that the passive income model continues to grow even when you’re not actively working it, if you choose the right roadmap.
The Normal Affiliate Marketing Model
Having said that, there are a few pitfalls with the traditional way most people approach affiliate marketing.
They usually, create a website, develop the traffic for it, and pair it up with a profitable affiliate offer.
Job done – right?
Nope.
Yes, it will continue to produce sales for you day in and day out, (if your traffic source remains) however you don’t see significant growth without an increase in either traffic, the price of the offer or both.
So whilst you can definitely earn a passive income with this model, your income is always dictated by your last sale.
If you lose the traffic source for whatever reason, then you don’t have an income.
Membership Sites
I have harped on about promoting membership sites in previous posts, and it’s for good reason.
See, membership sites allow you to get paid over and over again for as long as that person remains a paying member.
So the benefit is that you not only get paid for the initial sale, but the recurring sales start to stack up on itself.
And as you funnel more members in the front end your income grows.
If your sales just remain that same month in and month out your sales will continue to stack up on itself.
Even if you were to lose your traffic you’ll still get paid.
This model will give you an income buffer that will ensure you’re good even when times are though.
So any membersite site that pays you for the duration of your referral membership is great.
Want to know the best passive income / membership model I recommend? Find out here.
Frank
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