Brian Page is an entrepreneur, online educator, and passive income pioneer who is best known as the creator of the BNB Formula, the world’s #1 bestselling Airbnb™ coaching program with over 25,000 students in 47 countries.
Making money online is the dream of many people. And why not? With a computer and an internet connection, you can generate income doing something you love, without ever having to leave home. In this article, we will discuss online passive income: what it is, how to create it, and some of the benefits associated with it. We will also provide tips for making your online passive income stream as successful as possible!
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What Is Online Passive Income?
To understand what online passive income is, it’s helpful to start with a definition of passive income. Passive income is simply any type of earnings that come in without you having to put in any active work. In other words, it’s money that flows into your bank account without you having to do anything to earn it. This can be from online sources such as advertising, online courses, or e-books. Offline sources would be those such as rental properties or investments.
How To Create Online Passive Income
Now that you know what online passive income is, you’re probably wondering how you can create it. The good news is, that there are many ways to do this, but there are two key concepts that you should understand before we share some specific ideas.
Monetize Attention: Attention is currency online. This means that if you can get people to look at what you’re offering, whether it’s a website, blog, or social media account, then you can make money. The key here is to create something of value that people will actually want to look at. This could be helpful content, an interesting perspective, or even just entertainment.
Once you have people’s attention, there are a few ways to monetize it. The most common is through online advertising, such as Google Adsense or banner ads. You can also sell products or services, or even promote affiliate products. If you have a large enough audience, you could even get sponsorships from companies that want to reach your audience.
Think of a billboard on the side of a highway. It’s there to get your attention so that you will look at it, and then take action (hopefully buy whatever product or service is being advertised). Online passive income works similarly. This would be a B2B (business to business) model where you own an asset that generates attention and you rent out that attention to businesses.
Arbitrage Goods & Services: If B2C (Business to Consumer) is more your style, then you can create online passive income by arbitraging goods and services. This means that you find a product or service that you can offer for less than what the customer would pay, and then pocket the difference.
For example, let’s say you find a hotel room online that you can book for $100 per night. But when you go to the website to book it, they are charging $200 per night. You book the room and then turn around and rent it out to someone else for $150 per night, pocketing the $50 difference.
Dropshipping physical items is a more popular online arbitrage play, but it can be done with digital products and services as well such as e-books, online courses, and more.
Of course, you’ll need to factor in things like taxes and fees, but if done correctly, this can be a great way to earn online passive income.
Type of Online Passive Income Entrepreneurs
Keep arbitrage and attention in mind as we go over a few types of online passive income entrepreneurs.
Lead Generator: A lead generator is someone who creates a system that helps businesses find potential customers. For example, you could create a website in the home-improvement niche and then add a form where visitors can request quotes from local contractors.
The contractor would then pay you a commission for every lead that comes through your system. This could be a flat fee per lead or a percentage of the total project cost. You can also generate leads for other businesses in other industries, such as insurance, education, or even pet care.
Content Creator: A content creator is someone who creates and distributes online content. This could be in the form of blog posts, videos, podcasts, or even e-books. The key here is to create content that is valuable and helpful to your audience, as this will help you attract attention and monetize your content.
One way to do this is to create an online course teaching people how to do something.
For example, you could create a course on how to start a blog, or how to use social media to grow a business. You can then sell this course on your website or through online marketplaces. By becoming an authority in your industry through meaningful content, you can attract attention and make online passive income.
Affiliate Marketer: An affiliate marketer is someone who promotes other people’s products or services in exchange for a commission. For example, if you have a blog about home improvement, you could promote tools and products that are related to your niche and earn a commission on every sale that you generate.
Owner: The key to turning all of the above options into passive income and not just income is through ownership. You want to own the asset or system in a way that does not require your time and energy to maintain it. For example, you could hire someone to manage your online course, or you could dropship physical products through a fulfillment center.
Online Passive Income vs Online Job
It’s important to understand the difference between online passive income and online jobs. An online job is something that you do in exchange for an hourly wage or salary. This could be working as a VA (virtual assistant), customer service representative, or even a freelance writer.
While online jobs can provide you with some level of financial stability, they will never give you true financial freedom. This is because your income is directly tied to the number of hours that you work.
On the other hand, online passive income is something that can provide you with financial stability and even help you achieve financial freedom. This is because your income is not directly tied to the number of hours that you work.
For example, if you own a blog and you earn $1000 per month from it through Google Adsense, that is online passive income. You are not trading your time for money, as you would with an online job. Instead, you are earning money while you sleep.
You could even hire a team of SEO experts, writers, and publishers for less than your passive income to help you grow your online business. By delegating and training your team to work efficiently without your supervision, you can focus on other areas of your life and business while still earning online passive income.
The Trap of Micromanaging
One of the biggest traps that online entrepreneurs fall into is micromanaging their online business. This is because they feel like they need to do everything themselves to be successful. However, this could not be further from the truth. Micromanaging can lead to your online business failing.
This is because you can only do so much by yourself. You will quickly become bogged down with the endless tasks that need to be done, and you will not have enough time to focus on the important aspects of your business. It’s a big step to start delegating responsibility, but micromanaging your assistants will only lead to more problems.
To be successful with online passive income, you need to learn to delegate and trust other people to help you grow your business. This will free up your time so that you can focus on the things that you’re good at, and it will help your business grow faster.
Online passive income should not look like an online management job. By making this distinction, you can truly achieve financial freedom. Manage cash flow productively, step away from the screen and let your business grow through the systems you put in place.
Benefits of Online Passive Income vs Offline Passive Income
Internet and technology may not be the preference for some people, and that is understandable. But online passive income has some advantages over offline or traditional forms of passive income. The benefits below are not an exhaustive list, but they should give you a good idea of the potential that online passive income has.
Geographical Freedom: You can make money from anywhere in the world as long as you have an internet connection. This is perfect for people who want to travel or live in multiple locations.
Time Freedom: You can make money while you sleep, or even while you’re on vacation. This is because your online business will continue to run without your supervision.
Low Start-Up Costs: You can start an online business with very little money. This is in contrast to offline businesses, which often require a large amount of capital to get started.
High Scalability: You can quickly and easily scale an online business to earn more money. This is because there are no physical limitations on how much you can produce.
Flexibility: You can easily change or adjust your online business to fit your needs. For example, you can change your niche, products, or services at any time.
Automation: You can automate many aspects of your online business so that it requires very little maintenance from you.
The Bottom Line
As you can see, online passive income has a lot of advantages over offline forms of passive income. If you’re looking for a way to achieve financial freedom, online passive income is a great option.
Of course, online passive income is not right for everyone. But those that can lead a team and monetize attention online will find that online passive income is a great way to create financial freedom. People are spending more and more time staring at their screens, make sure you are getting a piece of the pie.
Brian Page is an entrepreneur, online educator, and passive income pioneer who is best known as the creator of the BNB Formula, the world’s #1 bestselling Airbnb™ coaching program with over 25,000 students in 47 countries.
