How To Make Passive Income Online


What Is Passive Income?

Network Marketing is one way of getting a passive income online but before we explore how it can be done, we will go through the other forms through which people earn their living and look at the basic types of passive income.


How to make passive income online


 Linear Income

Most people, more than 80% of people in in the world, are accustomed to earning their living by trading their time for money. They are paid according to the number of hours they work, the hourly wages ranging from a few dollars to hundreds of dollars an hour. This form of earning a living is called Linear income (other names for it are Transaction income and Earned income) .Though considered to be an honorable way of earning income, it has its limitations and disadvantages.

Basically, linear income is a one time payment for the product you sell or the service you provide, as soon as you stop selling your product or providing the service, your income stops. Your income is directly proportional to the number of products sold or the number of hours invested in providing a service. And this is the reason for the term “Linear Income”.

A requirement of Linear income is continued work. Since there is no chance of gaining financial independence, you will have to go on working until 70 and beyond.


Passive Income

Passive income is income earned by setting up money-making processes and letting them work for you. They don’t require your direct involvement. We shall examine two basic types of passive income, passive residual income and leveraged income.


How To Make Passive Income Online


Residual Income

Residual income is income obtained by doing something once and getting paid for it again and again for a long time. This is income that keeps coming on a regular basis for something that was done once. It is income obtained even if you are not working. It is a great way to build financial benefits which are long-term and is a powerful stepping stone to gaining financial independence.

Residual income is not about getting rich quick though, it takes time and requires great effort and persistency to build the money-making processes. It takes a few years to start getting the benefits of residual income. Once you have reached a certain stage, your residual income can go on rising steadily each month for the same amount of time and work invested, your income not being directly proportional to the amount of time invested or number of products sold.

Leveraged Income

Leveraged income is income obtained from the work done by people you recruited and trained. You get a share of the accomplishments of the people in your team. The goal of leveraged income is to recruit people and help them initiate processes that make money, thus creating multiple streams of income for you.

 How To Generate Passive Income Online

The easiest way to generate passive income online is by starting a home based network marketing business. How successful you will be and how long it will take to achieve it, will depend on a number of factors. With talent, time and money to invest , you can get success in less than a year. With medium investment of time and money it takes on the average a year or two to start earning a decent income and another year or two to attain complete financial freedom.

Big companies are increasingly looking for people to spread word about their products and services instead of paying big sums of money to the advertising agents.

As an online marketer you start by choosing the right affiliate program for your business. You aim at building multiple streams of income that are either residual or leveraged. You will earn income from a residual-based affiliate program from commissions upon renewals of subscriptions and from a leveraged-based affiliate program upon sales of products or services. Some companies provide both residual and leveraged income.


passive income



Your goal then is to recruit people to your team and to teach and help your team members start building the money-making processes, and that gives you leveraged income. You want to set these money-making processes in action and let them work for you. You want to have multiple streams of income to work for you. So you start by setting one process and let it work. Then you start another process and then another one. The more processes you have working for you, the more money you earn. When you have many processes working for you, you can afford occasional failures, learn from them and use that knowledge to improve your existing processes.

If you’re starting an online business or you have one running, the sooner you shift your business model toward generating passive income, the sooner you will attain financial independence.

You can read more on this topic at: “Affiliate Marketing And Network Marketing:The Advantages And Disadvantages” and “Network Marketing Business Ideas.”

Which business model do you use in your business? Please feel free to share!


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How To Start Affiliate Marketing Business
How To Start A Home Based Business Online
How To Find A Real Home Based Business


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