Make Money While You Sleep
Set up a blog, promote the blog, and use it to promote affiliate offers. This is by far the best known way to generate a source of passive income online.
Start with an affiliate site like ClickBank or Commission Junction. Find a few offers in a category that you know a bit about. Ideally offers with some degree of recurring income. Make sure they have good numbers, and do your keyword research to make sure there’s demand. After figuring out what keywords to optimize your blog for, start a new blog and write articles. SEO optimize the blog, and promote it around the web. Once the traffic numbers start going up, deploy some ads for affiliate offers. People click on the ads, and you get paid.
2 – Put together an auto-responder list
One of the Internet’s most common business models. Once you know approximately what kind of market you want to attract, put together a free product or information people can download if they give you their email. Now drive traffic to a “landing page” that asks for the visitors’ email address. You can even install plug-ins nowadays called Squeeze pages that pop up with an e-mail sign up box when people visit your page. This is a great way to build subscribers and a sales funnel to sell to.
Use an auto-responder like aWeber to email your subscribers the link to download the product or quality information you have to offer, and follow-up with a series of (automatically sent) emails. Spread over weeks and months, build some rapport with your subscribers and then try to sell them on any number of products or affiliate offers. Make sure you break it up though, you need to offer something of value and every few mail outs or so you can send them a link to the product you wish to sell them.
3 – Create a membership community
This is a natural follow-on to the first two methods. If you establish yourself as a worthwhile source of information, you can charge people a membership fee to receive more information or more access. You get recurring income in exchange for your research and time spent producing high-quality content. For truly passive income, you don’t produce the content at all, and instead pay others. Quality control becomes the main challenge then.
4 – Sell commercial products online
Customers are buying products online at an extensive rate nowadays. This means that there are a large number of customers looking for exactly what YOU can supply them with.
Checkout Shopify.com. They supply you with all the tools you need to sell online.
A number of people have proven that this is a great platform to sell products online. Put up a page and promote it. People pay you money. The product gets delivered to them, while you kick back as the money rolls in.
If Shopify is not your thing then you can always try your luck with eBay. You know what they say, “One man’s trash is another man’s treasure”, so scour through your cupboards and sheds and sell off some of your unwanted treasures.