Once people hear that I make my living with online marketing, the question most often asked about is “how I make money online”. “Do I trade time for dollars or do I earn passive income online?” The answer is, I have a six-step model to earn passive income online that I will outline for you in this article.
There are dozens of ways to make money online and just as many ways to earn passive income online. All you need is a computer and a laptop connection. Some ways people make money online requires full-time effort in a direct trade off of time for money. Other ways are purely passive meaning you put in a good deal of work upfront to build your business structure and then you get paid multiple times for the work you’ve done to create your work product.
Until 2010, most of my adult life was tied into trading time for dollars. I tried a few online virtual companies but they fulfilled neither my purpose nor the passion I have for helping women make money by starting their own online business at home. There is no right or wrong about that way of making money but I always found myself feeling overworked, under compensated and unsatisfied. I have worked at a number of jobs but none brought me the kind of fulfillment or income that I enjoy today.
You can read the details of my story, but in a few words, I was tied to my brick and mortar business trading time for dollars until a few years ago when I lost everything in a nasty divorce. At first I was scared. I was 52 with no job prospects and completely burned out with my industry. I decided that I wanted to live the lifestyle of a laptop entrepreneur so I set myself on a fast track to learn how to earn passive income online.
I hated the 9-5 grind. I hated the teeth-grinding meetings with business partners and employees. I hated the lack of freedom and lack of fulfillment.
I wanted to be able to do work that I love doing in the comfort of my home or wherever I chose to be. But, I had to make a consistent income and it had to be enough to cover the debt I was left with after my divorce.
Online marketing fit the bill for me since I wanted to learn how to make money from home. I struggled for a couple of years because I had no training in how to build a sustainable online business from scratch. I didn’t know anything about affiliate income. I didn’t know how to set up email marketing campaigns. I had no idea about how to create multiple streams of income sources. I had no idea about how to create and launch my own products.
I was starting with a pile of debt, very little cash reserve and no knowledge of how to succeed with internet marketing yet I had a dream and a fierce determination to succeed. I knew the key to my success would be learning how to leverage marketing and technology. And, I knew I had to generate online passive income.
What Is Online Passive Income?
Let’s define passive income. My business mentors taught me about online passive income. Online passive income is generated through leveraged systems of automation that facilitate electronic transactions, cash flow and business growth without the real-time presence of the entrepreneur.
Whereas most active income models (JOB) require the exchange of real-time labor for money, passive income models require entrepreneurs to invest time upfront creating valuable learning experiences and researching digital products for their audience while marketing and managing affiliate and or Joint Venture partner relationships.
Passive income generators work hard in the early stages of the business development to enjoy the benefits of a continuous supply of income later. This is what highly successful entrepreneurs call “working smart”.
Working smart has its rewards.
- People who work smart leverage their time with automated systems. That gives them more time freedom.
- People who work smart often outsource work they don’t like to do to skilled virtual assistants or free-lance workers. That allows them to be less stressed and more productive.
- People who work smart find creative ways to cut down their expense and learning curve by taking advantage of coaching and online learning academies. That gives them the benefit of developing their online business structure in the most efficient way without wasted time and expense.
- People who work smart leverage relationships with product creators. That gives them more time for vital business activities like online marketing.
- People who work smart create their own economy. By creating their own economy they aren’t affected by recessionary cycles and forced company layoffs that threaten job security.
6 Steps to Earn Passive Income Online
My online passive income model is straight forward and easy to put together. But again, I need to tell you, it takes upfront work and a good amount of hands on learning on your part to assemble and connect each of the six steps.
I can make it very easy for you and save you a lot of time and expense with my 1-2-1 coaching program. Start by requesting my FREE eBook: “My Little Black Book of Online Marketing Secrets”, then set up your FREE STARTER ACCOUNT. Once you sign up, you’ll get 10 free lessons and I’ll be able to help you get a fast start on your way toward creating your own website and so you can make money from home.
I developed this model as a way to help you make money by starting your own online business in the comfort of your home. Remember, you will be in business for yourself to make money instead of working full-time for an employer to put money in his/her pocket. But, if you don’t make money from your effort, you don’t have a business.
All businesses require a basic infrastructure. Once the infrastructure is set up, your business will need three components: operation, marketing and sales. The great thing about an online business, is everything can be fully automated which means you can do business from your computer at home or your smart phone and tablet.
With an online business model like the one I’m going to show you, setting up the infrastructure is pretty simple. And operations, marketing and sales are all automated which means once it’s set up, you generate cash money 24 hours a day 7 days a week. It won’t take an army of people to run it and you won’t have to have a lot of capital to start and operate it.
Your start up costs will be less than $100 and your monthly operating costs will be less than $100 if you learn to do all the work yourself which makes this an ideal model for anyone who wants to enjoy the lifestyle of a laptop entrepreneur working from home or anywhere they want.
In a nutshell, here are the 6 Steps in my online passive income model:
You will need to create a website in order to connect all of the pieces of this model. But before you actually create your website, I recommend that you think the process through and make a simple one page outline of what you intend your website to look like and what you intend to offer. Think through your target market, your niche, your products, your free offers, content plan and how you will market. Download my One Page Online Business Plan here.
Step One: Create a Simple Niche Website: You need a website to have an online business. Your website is your retail store. If you love decorating or gardening or cooking or anything else, but don’t have the huge capital it takes to start and operate a retail business, you could build a website and offer advice, tips, reviews and recommendations about your area of passion and then offer the products on your website that would help people make smart buying decisions.
Many online marketers report earning high five and six figure annual incomes from their websites. The average income in a recent survey is $65,766. Do keep in mind, this is not a “get rich quick” method. To create a successful business online, you need to be determined, committed and patient and you need coaching and training.
You can launch a totally free website on a shared domain site or purchase your own domain name and host your website for a few dollars a month. I chose to own my own domain. I host it with Wealthy Affiliate because I want the freedom to grow a scalable business and sell it for multiple times earnings if I ever decided to retire.
Step Two: Ask yourself, “What will I market and sell?” Choose a niche and decide upon who the people are that you want to help and what the main line of products is that you will market to help them. Start with products that are easy to get from affiliate network companies like ClickBank, JVZoo and Share a Sale. There are literally millions of products, some digital and some physical. You can also get products from major merchandisers like Wallmart, Amazon, Nordstrom and Target.
In time, you can even create your own information products simply by learning how to outline and outsource your ideas to product creators. I’ll show you how to organize, package and promote your knowledge into a money-making product.
Step Three: Ask yourself, “How will I market?” I recommend that you use inbound relationship marketing which starts by building relationships with online visitors who will come to your website to learn about the products and services they want. People visit websites to find ways to solve problems they have.
Many successful online marketers create a valuable free offer to help people answer questions they have or solve an immediate problem. Free offers for your online business could be something as simple as a high-quality 6-10 page report, an email training series, a free webinar that demonstrates how to solve a problem and where to find more help, a well-written eBook or any number of items.
The key is that you must offer something of high value to your target market. The exciting thing about online marketing is this–YOU DON’T HAVE TO RE-INVENT THE WHEEL yourself. With a little training, I can show you how to put together a really professional report or eBook for a just a few dollars.
Step Four: Add an Email Capture System to your website. One of my mentors, Steve Olcher said, “The riches are in the niches but the money is in the list. By adding a simple email capture system to your website, you can gather valuable email contact information. Your list of email contacts is a valuable business asset. The bigger your list is, the more potential you have for cross-selling opportunities and the more money you can make from your website.
Step Five: Draw targeted traffic to your site. The best way to draw target traffic to your website is to stock your shelves like boutique retailers do with lots of high-quality merchandise. In the case of an online retailer, your high-quality merchandise is your website content.
When your website is filled with good content and your products, free offer(s) and email capture system is in place, all you need to do is build a simple landing page and create an advertising campaign that points toward your website.
Step Six: Repeat Sales. In any business the cost of getting a first-time customer is always higher than selling to an existing customer. In the world of online marketing, repeat sales are far less expensive than getting repeat sales in the brick and mortar world. The reason for that is because of the ease of developing a digital Customer Relationship Management (CRM) base.
Once you have a loyal following of potential buyers that you created through your email contact list, you will find it easier to promote additional products and services.
A common business practice in the brick and mortar business world is to offer additional items to a customer who comes in the store to purchase one product. Go to any fast food place and order a hamburger. The sales register clerk will always ask, “Would you like to super-size your order with fries and a drink?”
By installing a simple sales system into your website, you can make sure you never miss a potential sale. I’ll show you how to set that up. It’s simple, but it does require some upfront work.
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I Believe In Your Success!