Earning Passive Income Online – 7 Important Facts You Must Know

You have probably heard of people earning passive income online from home. Some of them are making a full-time income, while others are making next to nothing.

When it comes to earning passive income online, the first thing you must do is to build your email list. Without a list, you simply cannot earn a full-time income online.

What Is Passive Income?

When you learn about different opportunities for making money, you will eventually ask yourself “What is passive income?”

While the concept of passive income can be very interesting, especially when you learn more about its definition and benefits, it is also important to understand the potential disadvantages.

At the same time it also provides several challenges and considerations.

Defining Passive Income

Keep in mind that the term can have a number of applications. In terms of “What is passive income”, there are a number of possibilities that you are going to want to be aware of.

In terms of income opportunities, you will find that there are both passive online options and offline options available.

You can create a online service (for instance teaching online classes), taking stock photos, earning passive income from online advertising, invest in a rental properties, starting a YouTube channel and much more. Here are 72 more ideas.

Chances are, if you are ready to work, there are many different ways to earn this type of income online and offline.

The Challenges Of Earning Passive Income Online

One of the biggest misconceptions about passive income is that it refers to easy or free money.

Earning a passive income online (or offline) takes a lot of work at least in the beginning but eventually it will become easier.

At some point your income will become 100% passive, and you are earning money month after month for the work you have already done. The work has to be done ahead of time.

10 Great Examples Of Earning Passive Income Online And Offline


If you would like to earn money from writing an ebook you would have to write the ebook first. The next step would be to market the ebook online so people would know it exists and could buy it. It is really possible to earn a nice passive income from your writing. Learn more


If you would like to earn regularly from stock photography, then you need research what kind of photos are in high demand, then buy a camera and take new photos regularly.

Then you need to find a high quality stock photography website to upload your photos. The website pays you a commission every time someone downloads your photos. Click here now for more information


If you would like to earn money from advertising networks like Adsense, then you would have to create a website or a blog first, write lots of useful content and then marketing the blog in order to get traffic that turns into clicks on your Adsense ads. This will not happen overnight, it is a long-term strategy.


YouTube is very popular, lots of people earn passive income from their own channels. In order to earn money, they have first created the channel and produce new videos regularly. Interesting videos tend to get a lot of views and this turns into clicks on the advertisement and income for you.


Facebook has over 1.5 Billion active members (in 2019). It is a great place to reach your target audience. Before you can earn any income, you need to build your Facebook profile with fresh, interesting information closely related to your niche.

Then you need to follow people who are interested in the same things as you are promoting, like their posts and being active. In turn, they will start following you and click through to your website or blog where they can sign up for your information and buy your products. This becomes passive income over time.


Rental properties can also be a great source of passive income over time. In order to make money, you must first go through the process of buying the property, bringing it up to standards, and finding a tenant. The tenant must also pay his/her rent every month, or you will not earn a passive income.


Teaching online classes is another way to earn passive income from home. First you would need to create the training material (videos), do online marketing in order to find your students plus a few other things before you can make money.


Another way to earn a passive income online is to create mobile apps. This takes a lot of planning, creating the app and promoting it. If you can come up with a mobile app people really need and find useful, then you can create a nice stream of income for you.


You can also earn passive income by placing advertisements on your website or blog. This is a really popular way to make some extra cash, but in order to enjoy the income you first need to research your niche (what your site is about) build your website, getting a domain name plus hosting, writing lots of useful (unique) content regularly. Finally, you need to decide what kind of advertising you would like on your site.


Earning passive income online is also possible without a website or a blog. In order for this to work, you would need a so called sales funnel, an optin page where people would sign up. This of course requires an optin page with a great offer.

You would also need to an autoresponder with ready-made emails that you send to your list automatically. When someone on your list buys a product, you would earn a commission. Learning how to build a sales funnel takes a lot of time and effort, it normally also costs a lot of money. Here you can get it for free.

So, in order to have a successful income stream that is 100% passive, we must put in the effort ahead of time and carefully choose the right path. There are lots of examples of people who have started from scratch and become so called super affiliates. They earn over $10,000 per month in passive income.

There are several other considerations with passive incomes that you are going to want to keep in mind.

Additional Facts

  • Creating a passive income will take time, some money, and a lot of effort.
  • When it comes to earning this type of income online, you can buy advertising relatively cheap. For a monthly budget of $100 to $150 you can get up and running quickly. This is perfect for those who are working a 9 to 5 job and have no time to invest.
  • If you don´t have an advertising budget, you will need to spend a lot more time to advertise using free methods. There are lots of free marketing methods that are effective, such as forums, blogging and social media. An effective, low-cost method of driving traffic is to use solo email ads.
  • It is possible to earn a full-time income.
  • It is still important to remember that the success (the income) is depending on how much work and effort you are willing to put into it.

As you develop a more rounded answer to the question of “What is passive income”, you’re going to want to keep in mind a few more things:

  • There are two main types of income: Passive and active income.
  • Passive income is a very flexible concept. You can work in your spare time. and there are some useful “how-to” training courses available.
  • Active income is something you earn from a day job. When you stop working, your income will also stop. This is why it is so important to have several income streams.
  • Lottery winnings and inheritances are the only examples of passive income where no work is involved by the individual.However, the odds of winning the lottery are extremely bad.


The I.R.S. defines the concept as any income stream in which the individual does not participate materially.

Although it is worth noting that there are several possibilities of this type of income that do not meet the established definition by the I.R.S.

As with any other type of income, passive income is taxable. However, it is treated differently by the I.R.S than other types of income.

There are tax deduction opportunities that are unique to this type of income.

Be sure to check with the local tax authorities in your country about how (and if) you need to pay tax on your passive income. Every country has different tax rules and regulations.

Conclusion Of Earning Passive Income Online

If you are looking to generate additional revenue to help with the bills, consider creating an online passive income stream. It is not that difficult and you can earn money relatively quickly from it.

All you need is the right attitude, one hour per day, and some money to invest. You will also need to learn “step-by-step” how to get started.

– The key is to find the right information.