How to Create Multiple Passive Income Streams

Passive income streams are sources of money that are generated by first investing a number of work or hours up front in a way that the business or resource can be left alone yet still generate an income. These are passive income streams because they don't require trading hours for dollars like we're all used to in the traditional 9 to 5 work model. Please read the steps below for an example of a passive income business model, and how to turn that one business into multiple passive income streams.

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

• A niche or market that you'd like to become the authority in.
• An electronic information product to sell, such as an ebook, audio, video, membership website, and the like.

1. Create a blog. This blog should be geared toward an audience that you'd like to reach, namely in a niche that you are interested in and passionate about. You may start a blog in any way that you are used to, but it is recommended that you use the Wordpress platform because it's far more customizable and it will be much easier to integrate the steps below. Please see the link below for Problogger, and Wordpress to get started

2. 
   Become the Authority in Your Niche by Posting Frequently and With Excellent Content

   Post on your new blog frequently and with excellent content. This will establish you as an authority in your niche, which will enable you to eventually leverage your followers as customers for any products that you may sell.

3. 
   Write an Outline for Your Passive Income Information Product Before You Begin

   Create an electronic information product related to your blog, such as an eBook, audio book, videos, online courses or membership websites. It's best to start out with an outline, which acts as your plan for the entire product. For more information about exactly how to create these kinds of information products, please use the resources below for passive income streams.

4. Signup for a Paypal account, if you do not have one already. This is necessary in order to accept payments online with the payment processor / digital delivery service. Please see the link below for Paypal.

5. Sign up for a Merchant Account on E-Junkie.com (resource link below). Fill in all of the necessary information, including your Paypal account (where money that you make will go to), as well as the information about your information product. You will need set the price here at this point, but it can always be changed later.

6. 
   The Payment Processor / Digital Delivery Service is the Key Behind Making Passive Income Streams Online

   Use the "Add New Product" tool in E-Junkie to upload your information product onto their web servers. This is done so that whenever anyone purchases your product from your blog, the service will automatically send the information product to the customer via email, and you will automatically get paid. This is the backbone behind creating passive income streams.

7. Use the "Get Button" tool in E-Junkie to copy the code that will insert a "add to cart" or "buy now" button onto your webpage. Insert this code, which is connected to your information product, onto your website.

8. 
   The More Passive Income Streams You Create, The More Opportunity You Have to Earn More Money

   Now that the process is automated for that particular business, you can then focus on driving traffic to your blog, or, begin the cycle all over again in a different or somewhat related niche. Again, because the process is automated, you are able to then create new forms of passive income streams that can provide you with various amounts of income for longer periods of time.

Tips & Warnings

• When blogging, it can be hard to get traffic to your website. Post answers on forums related to your niche, and comment on blogs related to your market as well.
• Also, try and ask successful bloggers who may have the same audience as you if you can do a "guest post" on their blog. This is a fantastic way to gain exposure and earn loyal readers and subscribers to your blog.
• When creating an information product that you'd like to sell for passive income, think about what your readers are dying to know about. If you don't know, then ask!
• It will take some time to establish yourself as an authority in your niche. Passive income streams do not come overnight, but if you work hard and are patient, they will soon come.
• Although the system is automated, and you are able to then do other things such as create new passive income streams, you should still keep an eye out for customer's emails, and just to make sure everything is running smoothly every once and a while.

Resources

• Passive Income Streams
• Passive Income Streams 101 Video
• Passive Income Definition on Wikipedia
• Paypal - For Accepting Payments
• E-Junkie Payment Processor and Digital Product Delivery
• Problogger
• Bluehost.com - A Wordpress.com Recommended Domain Host/Server

[tammyfrost]

on 11/6/2009 wow this topic is so populat. Thanks for your tips.

[juliemcmurchie]

on 10/24/2009 Great tips on creating multiple passive income streams. There are so many ways to build an income, and you have hit on some very important points.

[enest]

on 10/24/2009 I love your idea very much but many people will still find it difficult to follow.
Not to worry, there is a group of successful and renowned internet business developers waiting to help anyone and build your business from the scratch for FREE.You can sign up with them at:
http://eCa.sh/secretstotheirsuccess

[aegist]

on 10/23/2009 Great article. I have written about it in my own blog, and added some more thoughts to the monetisation. I think affiliate marketing and PPC advertising is valuable in its own right too, and definitely should not be ignored by people setting out to follow this advice.

[looptheloop]

on 10/23/2009 ty