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The Best Way to Make Passive Income Online

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passive incomeEveryone is looking for the best way to make passive income online. It is the white rabbit of making money with the internet.

What if I told you there is a way to make passive income online that could not only pay you for years to come, but also your children?

In this article, I am going to speak with you about exactly how and why you can make money on the internet and what I believe is the best way to make passive income online whether you’re selling handbag, information products or anything else.

Active Income VS Passive Income

If you don’t understand what the difference between active income and passive income is, here is the definition coming from Investopedia:

best way to make passive income online

And the definition of active income:

how to make passive income online

I am sure you can see why passive income is more attractive than active income.

Now, what is the best way to make passive income online?

What I have found is that you can create as many passive income machines as you want online. You have to think about it as online real estate.

This website is my online real estate. Your website is on your online real estate. There are many ways to monetize this real estate, but my favorite is affiliate marketing.

Affiliate marketing is when you market a product or a service that another person manufacturers, ships, etc. and all that you have to do is refer the sale to get a commission.

#1 – Pick a Niche

Pick a niche, any niche will do. Some people think you need to be passionate about it, I think you just have to care enough about your financial well-being. How many people get up and go to a job they aren’t passionate about, but they still do it? Don’t get caught in the “must find perfect niche” trap.

#2 – Find an Affiliate Program

Before you make your site, make sure there is an affiliate program for the niche. Since Amazon is almost in every niche, you should be good.

#3 – Drive Traffic to Your Blog

You need to have a blog. You can read: How to Start a Blog And you need to get traffic to it. The way that you do it is up to you, but my choice is through SEO.

There are literally billions of keyword terms out there and few people (if any) that are optimizing for them. Why shouldn’t it be you? This is free and PASSIVE traffic.

If you’ve created your website in a compelling manner, you can sit back and rake in the cash when SEO meets affiliate marketing meets a great site that converts.

#4 – Collect Checks

Make sure you have a bank that can hold all of the money or plenty of plans of how you are going to spend the money.

This is the Best Way to Make Passive Income Online

I have seen a lot of things, tried a lot of things and they just were not working for what I wanted. Passive income is necessary if you want freedom in your life.

Instead of leaving this blog confused about how to move forward, read my review on a 10+ year old school that teaches about howto make money through affiliate income and see how to get a free membership.

I want to hear from you, how much money would you need to earn per day to quit your job? What would be the magic number that would make you walk away?

Want to learn internet marketing from the ground up? 

Read My Wealthy Affiliate Review Now

80 COMMENTS

  1. I love passive income. You invest and do the work once and it just keeps on paying you. Once you understand how to do it, it really isn’t that hard. You just have to be willing to do the work.

    • William,

      Yes, that is so true. Building passive income takes work upfront but then it pays you dividends which is amazing!

  2. The idea that you don’t have to be passionate about your niche always makes me think: how will you keep on working on your project if at least you do not care about your niche. It your motivation is only to make money, it seems that you will not last for long. Why not mix opportunity, business sense, and what you like?

    • Jo,

      Sure, if you have that many things to be passionate about. I like to diversify in case a topic get hit with regulations or all the affiliate programs terminate or Amazon cuts the affiliate commission percentage to 0{ba8cfd4c6840b585abbfde51fb1062f83fd12e192cd1904cfb5794cc8545e25e}. There are a lot of things that can happen if you keep all of your eggs in one basket, that makes it dangerous for your income. Speaking from experience, it is definitely easier and more fun to work in niches that you are interested in, but I’ve also made a lot of money off niches I didn’t care about but I took that money and was able to do things that I was passionate about. Like having a baby and my husband and I not having to work for a while after he was born.

      Start in the niche you’re passionate about and then you can move on to expand your business to other areas once you’ve built up the skills and discipline.

  3. Great post and explanation on passive income and how to achieve it. Thank you for such great information on finding an appropriate niche as well!

  4. I just started out with Affiliate Marketing and it is not as easy as people make out to be. For me the hardest part so far is learning Search Engine Optimization (SEO) and driving traffic to my website. I m only 3 months into it, but I am confident that the site will begin to generate some income, I have give it 6-9 months, so we’ll see.

    • George,

      As with anything, there are skills that you need to learn and I would give it at least 3 years. While there are many people in Wealthy Affiliate and other online schools for affiliate marketing that see success much quicker, you don’t want to give up before it is your time. Best wishes.

  5. I’m searching about affiliate programs for a while and I have to day there are so really nice opportunities out there, Amazon being the most famous of course. Haven’t started with any of them yet. It is difficult to decide on your first move, like which medium to use, which target group etc. What is in your opinion is the best method to begin promoting products for an affilliate program?

    • Lance,

      Amazon is definitely a great program to start out with and actually the one that Wealthy Affiliate recommends their members to start with since it is a trusted network which makes it easier for you to sell things. I would start there. 🙂

  6. The idea of having an additional income is very attractive, thanks for this very good explanation of the advantages and how to achieve it.

    • Maryelin,

      Yes, passive income is very attractive. We have to put in the work to create it, but once we have it, it is a beautiful thing.

  7. This is really helpful. I am doing a masters degree in software engineering. I was really overworked in my career until I decided to go back to. I can’t ask for my parents for money no more. Living on a partial scholarship has been really helpful. This article has given me hope, with my site, I am really trying my best to get my traffic there,. I really want to do this. Thanks for the article. This will change lifes for people like me.

    • Kennedy,

      That is awesome and I am super happy to hear that! Congrats on going back to school. I am sure that you are going to be glad that you made the decision to further your life. Keep up the good work.

  8. Dear Jessica, it seems that you are a professional in the field. To be honest, my personal experience shows that both passive and active income require performing a service, effort and devoting time. Some people imagine that passive income rewards them without the need of action. But there is no such thing. Even if you manage to establish a good network/affiliates, you would need to foster the chain all time, to keep it loyal and growing.

    • Madlen,

      Yes, if you are making money off a team that is in no way passive income. That is one of the reasons that I don’t work network marketing actively and opt for affiliate marketing which allows you to set up passive income streams. I do however help any of my wealthy affiliate referrals, but the system is set up to support them as well so I am not tired to the computer if I want to take a vacation for a week. 🙂

  9. For those who are wondering, Passive income is income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it. The U.S. Internal Revenue Service categorizes income into three broad types, active income, passive income, and portfolio income. … Passive income is usually taxable…. Thank you for your article, most of the information is new for me and it gave me a new perspective on how to move in this field…

    • Michael,

      Right on. I am glad that you are making strides to create passive income in your life because it is extremely important if you want to create time freedom.

  10. I think it is an excellent article, because it teaches you in different ways how to deal with the global economy, at least in my country Venezuela, which is so difficult to obtain income, this guide has given me an opportunity to see the things of another more positive way, thanks for your contribution

    • Luis,

      Thanks for coming by. I seem to have a lot of amazing readers from Venezuela. I love that you are able to get the information that you need here from the site and I look forward to hearing your success stories.

  11. Well, in my particular case the passive income through online platforms such as blogs, social networks, pages of online work, pages of monetary investment or cryptocurrencies have practically represented my only salary income so to speak, as they will know the situation of venezuela is not easy at all, the salaries received by workers monthly do not cover the high cost of living, the submissions and supplies that are increasingly costly because they are products of import. It is very helpful that this exists because many people work and live only from it

    • Isaias,

      Thank you for sharing your experience of being able to make money through blogging in Venezuela. I have heard many of the things that you said there and understand that it can be challenging to generate the income that you need. I am glad that blogging allows you to create the passive income that you need to live there.

  12. Wow.This to me I must admit has been an eye opener.I,just like you have done many things in seeking financial independence but finally I think you gave me the answer.I now know how to, thanks to people like you who are out to help others through their experience.

    • Willis,

      That is awesome and I am very glad to be of help. I remember when I was in the stages of searching and trying to figure out what to do and how to best start creating my financial freedom. Being broke and not feeling like you have the opportunity to create an income that will allow you to be free is not a good feeling. I know this for sure! Yikes.

      I look forward to hearing about your success. 🙂

  13. It is very interesting to read such articles. It gives me an eye opener how to becomes financial independent , at the same times having self own times to do what i like.

    • Palma,

      Being able to have money and time freedom is very important. Many people have money but no time or time but no money. The trick is to have both.

  14. One of the most popular places to find good affiliate programs to promote is at Clickbank.com. Clickbank is an Affiliate Program Network and is also a payment processor. It stands between the vendor, buyer, affiliate, and can act as an affiliate manager.

    • Bidakolo,

      Yes, that is true. Clickbank is an option for an affiliate program. There are many different affiliate program options to choose from. 🙂

  15. This post is definitely what I was looking for. You explain very well the whole matter of making passive income online. Thank you!! I will start working on it soon. You are right in saying that any niche will work. There are no excuses for not producing money online today at this time. excuse my English. I had to translate the page. but, your information has served me very much. Good job.

    • Barbara,

      I am glad that you found what you are looking for here. You’re very welcome and I look forward to hear how you create passive income.

  16. I’ve been doing research lately and when I clicked your “How to Start a Blog” link and the review on the last paragraph, you just finally convinced me on taking my first steps to the long path that creating a passive income is. I’m really motivated, because this could be a great way to get by where I live.
    So, thank you very much for your dedication writing this post.I’ll keep this blog on my favourites.

  17. I’ve always wanted to make money from home, since it’s very difficult to survive en this country without extra-cash. Thank you so much for your post about passive income online, it’s very interesting to read. Thank you for your hard work keep up!

    • Gabriella,

      Most people find it challenging to survive on their salary and need to do something on the side. It is great that you can do from the comfort of your own home.

  18. For me your sentence is interesting that your system gives a way to make passive income for me for years and also for my children.I know affiliate marketing but I had never a website special for this program.To find a niche seems to me indeed a realistic way and according to your website it works.
    Thankyou for your suggestions I will think about it.

    • Claudia,

      Awesome. I hope you come back and let us know what kind of blog you decided to start. 🙂

  19. very detailed information! i’ve been looking for this right words for a long time. I’ve been an employee for how many years now and i’m looking for an extra income that will totally gonna help me in my daily expenses. I have a blog but i don’t know how to increase people on going to my site. Are there any free sites that may help me increase my views or clicks on my page?

  20. i love the way you give a definition about passive income and active income. It’s let me look different about it and make me definetely to look forward to make passive income online. Thank you. It gives me an eye opener how to becomes financial independent , at the same times having self own times to do what i like.

    • Razzul,

      Understanding the difference between passive and active income is important and I am glad that you understand it. 🙂

  21. That is awesome and I am very glad to be of help. I have heard many of the things that you said there and understand that it can be challenging to generate the income that you need. I am glad that blogging allows you to create the passive income that you need to live there.
    It is very helpful that this exists because many people work and live only from it.
    Thank you for sharing your experience of being able to make money through blogging in Venezuela.

    • Labrona,

      Learning how to write copy and convey your message to people in a persuasive manner is important if you want to earn money blogging. While it is not easy for everyone, it is possible for everyone.

  22. I want to find more online job. Because it help me earn extra money beside my main job. Then I found this blog. It seems like very useful for me now. Thanks!

    • Phong,

      Hey there. I am glad this blog is helpful to you. I am going to list more ways to make money online besides for affiliate marketing.

  23. This is a smart move. These business people know where to source materials and use that as a cost advantage while putting up construction themselves.
    Depending on your area of business, try and think of what products or ways you can offer customers without the need to work every hour. Try and think through income streams that will make your business less dependent on one income line.

    • Mela,

      You’re right in the fact that you don’t want to only have one income stream. One income stream can be very dangerous to your well-being.

  24. There are literally countless ways to make passive income online. There are probably more ways of making passive income online as there are different names for Jerusalem. (There are 700, by the way.)

  25. That is awesome and I am very glad to be of help in my particular case the passive income through online platforms such as blogs social networks pages of online work….. manage to establish a good network/affiliates It is very helpful that this exists because many people work and live only from …………thanks

    • Ahmed,

      If you aren’t making passive income from a blog, it is possible when you dedicate yourself to the learning process and take action consistently.

  26. Awesome read! Very informative and resourceful. I agree with you that passive income is the best as the business is on autopilot. I am two months into blogging and what I can tell you, this venture needs dedication, hard work, consistency and most importantly, patience. I started out with a mate and they already gave up, for me, I’m still pushing and it excites me to get such great word of encouragement from someone who has succeeded like you…Thanks and I’ll definitely subscribe

    • Swatzcorp,

      Glad to hear that you are pushing through. This business is not for the weak of heart, that’s for sure. The passive income is worth it once you get there.

  27. I am from Venezuela too, here make a living is really hard and thanks to you, you have put us on the right direction, i will follow your blog everyday about the passive income, you are very thoroughly explaining what we need to know, thank you so much, there is a lot of thing that I didn’t know at first but I am glad I found your blog, thanks

    • Julio,

      I am glad to have you as a reader. I look forward to hearing how you implement this information and what kind of results you see.

  28. great article! I learned some stuff i didn’t know yet. However, I wanted to ask for suggestions of improving or increasing website traffic. I already have a blog and it has a constant number of viewers. However, the viewers don’t increase significantly. any tips?

    • GS,

      Sure! Traffic is one of the most important parts of a blog. You want to make sure that you have people continually coming to your website. I wrote an article about how to generate traffic to your website. You can read it here.

  29. This article is very useful for me. Because I am doing a bachelor degree. So I need money for my studies & daily spends. I can’t ask for my parents for money no more. This article has given me hope, with my site, I am really trying my best to get my traffic there,. I really want to do this. Thanks for the article. After read this article I got many ideas about earn money.

    • Dinuka,

      Congrats on your studies and best wishes on earning income through your blog and creating income through passive means.

  30. Jessica, excellent information on how to generate passive income online, I had previously read about the subject and I was very interested, but I had found the subject a little confusing, not to say complicated, but I understood with clarity your article, simple, simplified and direct what I was looking for, excellent contribution, not only provide information on the ways to obtain them but give tips on how to do it, now I will read your article on how to create a blog and get traffic, in good time.

    • Daniel,

      I am glad this article was easy to understand. I had hoped many people would find a way to make their dreams come true all around the world when they are willing to work for it.

  31. Passive income is the dream job everybody in 2018 should be involved in.
    I recently quit my job due to personal commitments and is now relying on passive income to earn a living by Affiliating and what is really amazing is that in no more than you realized, you just start earning money.
    Since digitization is omnipresent, i think that passive income is the future and is very reliable. You earn big money with no effort at all.
    Hurry Up Guys!!

    • Marjo,

      While I won’t say it happens quickly, but there is no time limit for how quickly you can start earning money from affiliate marketing.

  32. As for me, I am a government employee yet my salary is still not enough. Of course, I have to make income, aside from my current work. That’s why I would like to try onto this passive income. Well, thanks for this information. It really helped a lot!

    • Carmela,

      Many times the hard work doesn’t pay as much as it should. I’m glad this helped you understand more about passive income opportunities.

  33. Good work, it’s a great topic to be talking about it’s like numerical sequences you just start and it keeps growing more and more , I was able to understand the difference between active and passive income it’s definitely worth taking the risk because it pays really good after that nice explanation by the way thank you so much this article was so helpful

    • Ahmed,

      You’re most welcome. =) Keep on building and growing so you can get the results that you want out of your passive income efforts.

  34. Thank you for some tips on how to start earning a passive income. You really explained everything well and will be a great help to those searching for ways on how to develop their own blogs. Time and effort are needed to have a successful passive income online and this article made me want to strive harder in achieving my goal of being financially free.

  35. Always wanted to find something different to regular sites offering their basic opinions on passive income and I must admit that you did a really good job explaining and going a little bit more in depth. Really appreciate your good and honest opinion on this particular case.

    • Avey,

      Thanks for stopping by and I am glad to be of help. Passive income is definitely something we can all use more of. 😉

  36. The passive income is the best way to earn money, requires effort and dedication, this type of work is planned according to our comfort, besides being something of your own, you can choose the most convenient work schedule, the benefits obtained will increase with the years , thanks for this article, good information

    • Chiquinquira,

      You are right. Building a passive income stream does require a lot of effort and dedication, but it’s totally worth it. 🙂

  37. This is a very interesting topic. Never come into my mind this kind of passive income (affiliate marketing), the niche quite hard for me to determine but i will surely consider this insight. Nowadays, even if i already have a job but still i am thinking to have an extra income because life is getting tougher and tougher. Passive income is surely a big option. Thanks!

  38. Passive income is very attractive because it allows you to have extra time and money without great efforts. Thank you for explaining the subject in a simple and easy to understand way, I really liked your article.

    • Well, it does take great effort to build a passive income stream. It’s just once you get it built, you keep getting paid over and over again. Building a passive income is probably one of the most difficult things to do which is why so few people do it. 🙂

  39. Thank you for a really practical insight into the subject of affiliate marketing. It sounds an ideal way to focus all your energies onto selling and avoiding all the problems of supply and manufacture. I might also consider running different types of business at the same time. I will definitely consider this option.
    L

    • Greg,

      Awesome. The more you provide value, the more you earn. Give people what they want and you will get what you want. 🙂

  40. Recently look for ways to make money passively, with the review that you just wrote I feel more secure to continue with my blog. That way I can find the freedom we all want. Regarding your question, there is not an exact amount of money to quit my current job, but I would like it to be enough money to lead a full life.

    • Ernesto,

      Awesome. I am sure you are going to do great with your blog. Congratulations on getting started!

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