The best ideas for passive income through the Internet

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If you want to start your own business, we have some tips for you. 

While the generation of real, passive income is certainly feasible, it often takes a bit more work than the experts in this field often claim.

As part of this series, we are examining the myths of passive income. After reading this guide, you’ll know how to generate passive income and the best ways to get started right away:

Below you will learn the basics about what passive income is and how it exactly works.
We will help you to choose the best business idea and to start generating passive income with your first project.
You will also be able to find out for yourself how effective it can be, if you stop exchanging your time for money and instead open an online business that will bring you a fair income.

What is a passive income and how exactly does this type of income work?

A quick Google search shows you many websites (some good ones and some that are more likely to be called spam) that claim to teach you how to use passive income to “make money while you sleep”.

If you are just getting started or have a small business, you may be tempted to try it once to get a part of this holy grail. Before you do this, let’s take a step back and see what passive income really is, what it takes to generate such kind of income and how it all works out exactly.

Active versus passive income

There are two types of income: active and passive. 

1. What is active income?
Active income is the type of income where you are paid for the work you do. If you work in a normal job and earn a salary or do freelance works for clients, you earn an active income. It’s what keeps the world going. Whether you work as a salesman or a barista, you exchange your time, experience and efforts for cash. The amount you get paid may vary, but the principle remains the same.

2. What is passive income?
Now let’s define passive income, because it is fundamentally different. Instead of being paid once for the work you do, you create something (or you create value) so that you get paid regularly and indefinitely. The simplest example of passive income is someone like the author Stephen King. He spent nearly a couple of months for writing “The Shining“ almost 40 years ago, but is still paid for every copy of the book sold. He created something of value that people are still interested in nowadays.

We are well aware that not everyone has what it needs to be a Stephen King – a man of extraordinary talents who is capable of creating something very unique. However, this is no reason to through away the idea of passive income immediately and to stop reading this article at this point.

The Internet offers people who are not known as authors many opportunities to earn a passive income.
There are hundreds of ways to make money through a passive income.

Sie can sell your own products, use affiliate systems, earn money out of advertising and much more. Even a traditional investment is a kind of passive income.

How to stop exchanging your time for money

As you may already realize, there are some pretty big issues when it comes to exchanging your time for money. 

First of all, you need to rely on someone else’s mercy when it comes to your financial security. If Fabian’s boss does not need him this weekend, Jens gets fired or Michael’s article will not be published, none of them will get paid. That’s why they have to have all their bosses on their side. Fabian does not have to do too much, but Jens is required to spend many hours in the office when a project is due, and Michael occasionally has to write articles that just bore him to death. 

This brings us already to the second point. By selling your time for money, you lose the flexibility to decide how you like to spend your time. If Jens wants to go on vacation with his wife, he can only hope that there are no projects, which are due at just that time. If that should be the case, he knows very well that there is no chance at all that his boss will approve his holiday at exactly this time. Michael might want to go to a party tonight, but if he has to meet a deadline, he has to do his job first – otherwise his editors will not be happy about it. How much you are limited in using your free time depends on your individual situation, but there will always be some restrictions if you exchange your time for money.

Third, you can only sell each hour once per day. Fabian gets $10 per hour to store shelves, but he cannot do anything else with this hour or sell it to someone else. You are trapped in a constant cycle: you need money for living, so you are selling some time to get it, but then that time is gone too. If you have instead a product like an eBook or a profitable affiliate website, you can always sell it and get paid the hundredth time as much as the first time. 

It is a myth that passive income does not take time; the equation is just another one. The key to success is that you invest your time in the hope of earning more revenue instead of selling every single hour of your time. 

To start generating passive income, you need to fundamentally change your mindset. Start thinking about the hours of your day that you either sell, invest or otherwise use.

To afford living until your business with passive income takes off, you will inevitably have to continue selling some of your time. That’s just part of life. You’ll also want to spend a few hours on things like eating, sleeping, doing sports, Netflix and time with your friends. These are all very important things and a great way to use your time. Time you are spending with things you love is never a wasted time.

Passive income is real, but it’s not just passive. It takes a lot of (at beginning unpaid) work to get started. „Recurring revenues“ is probably a better term to define passive income. 

How to quickly start generating passive income (from now on)

If you have arrived at this point, you are obviously at least thinking about investing some time in generating passive income. So, let’s take a closer look at what’s needed so you can get started right away.
Now that we have clarity on why you want to get a passive income and that this is the right path for you and that you bring along the skills needed for the project you want to tackle and that you have set realistic expectations, it is time to finally get started. Let’s look at how you can already achieve a passive income with your first project.

1. Keep your eyes open for a very good market opportunity
Take the advice from above and use the skills and passions you have. Next, check whether those skills can be combined with a market opportunity that already exists.
Find a product that belongs to a popular, high-demand category and gives you a chance to become part of the market. Avoid creating a product for passive income that can not show any signal regarding the market’s interest.
Remember not to spend too much time with this step. Keep your market research as simple as possible at this early stage. Just strike a direction where it looks like that people are buying that kind of product and where your product idea could be really profitable.

2. Set realistic goals 
Now you should set your production goals.
Start by making a sketch of what you need to get your product to be produced and then set realistic goals that will help you achieving that.

3. Start as soon as possible
Do not wait. Start right now!
There will never be a perfect moment to start something. You can always do some more research, read more guides and spend more time with planning. If you have a decent idea, you’d better start right now instead of wasting your time on activities that are not as productive as you think.

4. Keep it rough
After you get started with your project as quickly as possible, you should make the first draft (or beta version) rather rough. If your perfectionism gets in your way too soon, you’ll end up spending time optimizing things that do not really matter. It’s better to bring a rough version of something on the market so that you can see how he is reacting to it, rather than never bringing a perfect version on the market.

7 good ways to earn a passive income online

What are the best ways to earn a passive income? How can you start with it? Let’s take a closer look at these seven simple ways to generate passive income online – from starting a blog to selling digital products and more – that way you can find the best opportunity you like to follow.

1. Create an online course 
Online courses can be a good source of passive income. It all works like this: create an online course with added value that helps users solve a problem or meet a need. This course may contain videos, eBooks and emails with relevant information. Customers sign up to purchase the course and your system automatically sends them everything they need to get access to the materials.
You receive money for the price of the course you have created and the automation does all the work for you. It’s best to take a look at Teachable, which will make the creation of your first course much easier, so that you can start making money quicker.

2. Create YouTube videos 
Just normal people like you and me are already earning money on YouTube. Every time someone watches one of your videos, ads can appear and you can earn money with these ads. The key to success with YouTube is to create a subscriber and audience base that is big enough. This may take a lot of time at the beginning, but once your videos are live, there is a good chance of earning passive income with each video – indefinitely. Well, you probably will not be able to live from just a few videos, so you should be ready to create over 100 videos if you really want to succeed with YouTube.

3.Coaching and online advice
Share your skills online with other people. Everyone is an expert in a particular field. It can be cooking or starting a business or even how to dress professionally. Regardless of your education and professional background, chances are good that you have some valuable knowledge that you can share with others. This is knowledge for which someone is even willing to pay you!

4. Develop WordPress templates
You’ve probably already noticed a trend: many ideas for passive income include taking an existing market to reach out to the customer.

If someone starts a blog, chances are good that he will use WordPress. And if people are using WordPress, they need a good template.

Obviously, if you’re designing and selling such a template for the first time, you will not make millions out of it. But it definitely gives you the opportunity of a good passive income if you have the skills to create such templates.

5. Buy an existing online business
The beauty of an online business is that most business ideas allow you to work from everywhere. Starting from scratch can take a lot of time and resources. Check if there is an online business that is in line with your passions or hobbies and is currently for sale. Because if you need to work, then at least you should enjoy it. However, this step may require large financial investments.

6. Sell your product on Amazon – as soon as possible
Digital products are not the only things you can sell online: you can also sell physical products. Managing everything is tough, but there are other options as well.

The „Fulfilled by Amazon“ program (FBA) is another popular way to generate passive income. Basically, you develop a physical product (or buy it in bulk in China) and then have it shipped directly to Amazon. Amazon then lists these products on its website, sells them and delivers them to customers. Of course, Amazon demands a decent portion of the sale price, but the company does therefore most of the work for it.

Although FBA is a popular thing, it is also a bit tricky. Developing your own physical products is really difficult and bad Chinese imitations are not that easy to sell. Finding something that really works is not for the faint-hearted, though it may be worth the reward later on. There are people who make good money with this strategy.

7. Create an app 
Apps can be an incredible lucrative source of income. Just think about how many people nowadays have smartphones. Almost everyone! People are downloading apps like crazy – and with good reason...

Apps make life easier for people. Whether it’s an app that helps people make beautiful photos for their blog, or an app that oversees their tasks...

You now might ask yourself if there are maybe already too many apps out there... so, why should you try to create an app yourself? Isn’t there anyway already too much competition out there? Well, fresh, creative ideas can always prevail. If you find something extraordinary, you can earn money with it properly. Simple but still unique apps can be quite good for making passive money.

The best way to earn passive income online

We have told you about 7 possibilities to earn passive income with the internet. Each of them is very interesting itself, but also has its pitfalls. For some, you need to have valuable knowledge to share with others for money, while other ways will not bring you much income, but at least allow you to pay for your vacation. Some of these opportunities can also require a significant financial investment, such as buying a successful online business. If your goal is to start earning as much income as possible with minimal initial investment, then below we would like to show you the best way to generate a passive income.
One of the easiest ways to immediately start earning a passive income is to start a blog and monetize it. For more information about creating your own blog, please read our article “How to create a website”.

How to start a blog in a few simple steps

1. Find a profitable niche
The most difficult and most important aspect of a blog is the search for the right niche. There are MILLIONS of niches and markets out there. From personality development to dog training, meditation, weight loss, guitars, cooking, gardening, raw food, etc. ...
However, not all niches are the same. Some are significantly more profitable than others and have a higher potential for decent earnings. We have already written a detailed article about how to select a profitable niche, that has clearly shown that Forex is currently the most profitable niche. Therefore, we advise you to take this niche into closer consideration. Since the revenues are very high in this industry, Libertex Affiliates offers its partners the highest payments for each trader.

2. Choose the platform on which you want to build your website
The first thing you have to do is to make a decision about the website platform you want to use for creating your website. There are many different CMS (Content Management Systems) to choose from and choosing the right platform has top priority. You clearly do not want to start creating your website based on a CMS platform just to find out that the platform is a completely wrong choice for you and your website.

3. Find a domain name and a domain host
In order to go online with a new website, you will need two things:
A domain name (an internet address like
Hosting (a service that connects your website with the internet)
The WordPress platform is available for free. But a domain name and hosting will cost you around € 3 to € 5 a month. That is still cheaper than a coffee, so you should not get into too much financial trouble because of these costs.
Being the owner of your own domain name makes a much more professional impression than hosting a website at the domain of another person (like – and it’s also really affordable.

4. Create content  
Now you have to put some high-quality content on your website. Write high-quality content based on your niche and products that you promote. You may get a better understanding of how to do this by reading this article  - ”How to write a good article for your blog“.

Once your blog is up and running, you will need to find the best way to monetize your blog. There are many ways to monetize a website, but each of them has its pros and cons. Please do not forget that our stated goal is to generate the maximum of passive income.

Affiliate marketing is a very effective way to monetize your website traffic because this approach will allow you to confront your visitors with offers that they are likely to be interested in. For example, if you run a finance related website, you would like to find an affiliate offer which is of interest to your visitors, such as an offer for credit cards. You would place a banner or text link on your website that contains your affiliate link which redirects visitors to the offer. If they would now sign up for the special offer, which in this case is a forex affiliate program, you would be paid an affiliate commission.
Libertex, for example, is happy to offer its partners a reward of $ 450 for each attracted trader. The fact that you can earn more than $ 450 per attracted client makes this Forex Affiliate program one of the marketing niches you just can’t ignore! Read more about how the Forex Affiliate program works.

Closing words

Passive income is a great way to a path of financial freedom. Some ways of earning money need more work than others, but the return on your time and minimal investment may well pay off over the coming years. So don’t wait too long, but act now and you’ll succeed. We hope that our article will help you and would like to invite you to join the Libertex Affiliate program.

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