How to create Internet Passive Income

Create passive income through hard work up front.

The basic concept of passive income involves building something that earns you money over and over and over again, after initial effort to build that income stream. An example is an asset such as a CD or stock that pays you interest or dividends for years to come after purchase. Another form of passive income comes from creating content, such as an book or musical recording, that earns you money consistently over time with very little work beyond the upfront effort, which may be considerable. The Internet offers several ways to create passive income online.

Things You'll Need

• Computer
• Internet Access

Instructions

1. Write online articles. Some websites allow writers to publish content, and pay a dividend or small fee each time the article is viewed.

2. Start a blog focusing on a topic that you are interested writing about. Sites such as Blogger allow you to set up a blog for free. Once you become established, you can add advertisements that earn you money when readers click on them. Context-sensitive advertising automatically provides ads related to the subject matter of your blog post, so that they appear in front of readers most likely to be interested enough to click them.

3. Create Internet passive income from article marketing. Article marketing is a method by which you take products offered by others and create ways for customers to purchase the products. The owner of the product typically pays you a commission for every sale you make; details depend on the individual program.

4. Loan money to others. Sites like Prosper and LendingClub specialize in peer-to-peer lending through an online marketplace. Create an account, transfer money to the account and start lending to earn interest.

5. Purchase dividend-producing stocks through an online broker. All of the work is done up front with this income stream by completing due diligence on the stock. Once you purchase your shares, sit back and collect the dividends.

Tips & Warnings

• Invest hard work up front to build a Internet passive income stream that will pay you over and over in the future.

• Diversify your Internet passive income streams as you would your stock portfolio.

• Not every Internet passive income stream you create will earn you money. Be prepared for failed opportunities.

• Scams and frauds abound on the Internet. Be cautious and investigate thoroughly before handing over any money to anyone.

References

• Passive Family Income: How to Recycle Your Cash Flow

Resources

• LendingClub
• Prosper
• Blogger