Passive income streams and why they're pretty amazing
Passive income streams can be hard to produce and keep alive, but when you figure it out it's pretty amazing. An great passive income stream starts with what you're trying to do exactly. You can focus more on affiliate marketing or if you have your own product you can automate it as much as possible and hire people to manage everything. A great passive income stream is something you can set up and not monitor at all while making money month after month. This type of passive income stream is like the unicorn of the online marketing world, but it can be found.
Passive Income Stream 1 - Affiliate
When you're an affiliate you are basically sending online traffic through one of your links that will be tracked by the website owner. When someone buys a product off of the website through your affiliate link you will make a commission. The amount of commission depends on the website owner and how much they want to pay you. For physical products you'll usually get a smaller commission since their profit per item is much smaller than a digital item where they could give you up to 75% per sale.
Physical Products: You can find plenty of physical products to send traffic to through amazon.com or other big websites like walmart.com. Sometimes you have to apply to these types of programs and wait for acceptance while others will auto accept you. Digital Products: For something like this you can go over to clickbank.com or something similar and get auto accepted into the program after signing up. You can set up a quick website and add your links to it the same day and make a sale.
Setting up your website for these types of products can be tricky when it comes to advertising them. If your website is covered in affiliate links you will probably get removed from a platform like Adwords or Bing Ads. You'll need to add some content, or pay someone to write it, and then have your affiliate banners or links in the sidebar. Then you can go set up an advertising campaign and you'll have a higher chance of getting accepted. Once this is done you're set up and ready to make some money. Obviously you'll have to tweek your campaign so that you're making more money than you're spending, and that takes time.
If you can find a good digital product that offers a lifetime commission, like here on SEOclerks.com, you've struck gold. Sending targeted traffic through your affiliate URL is pretty amazing even if you're breaking even each month. It's good when breaking even because you are still able to make money off of that same person the next month and the month after that and for the rest of the lifespan of the website SEOclerks.com really has an amazing affiliate program and I suggest you check it out
Passive Income Stream 2 - Your Own Products
When selling your own products you think that you have to be a part of your business 100%, which isn't true at all. Actually, if you're doing 100% of the work you'll get burnt out pretty quick and want to stop working all together. If you are making enough money to hire someone full time, then you don't have to worry about doing everything You can even hire a virtual assistant for a fraction of the cost it would take in the US for the same job. I have 3 VA's doing work for me every month and they usually work 5 to 8 hours a day on websites that need attention.
Hiring someone:First you'll need to make more money than it costs to hire someone, obviously. You'll need to train them on what to do so that they don't have to keep coming back to ask basic questions. What I prefer is training a Virtual Assistant in a different country for a fraction of the price so that they can handle a lot of the work and I can focus on other things in my life. Normally you can get a good VA for $300 to $500 a month compared to roughly $1,500 a month if you're from the US. After a few months of this working out you should be making enough money to hire a second VA in order to take some burden off of the first VA and make their lives easier. By having 2 VA's you can free yourself from your website and just focus on the order fulfillment and shipment. Now this isn't completely passive just yet, but it can be if you're making enough money to pay someone to do this for you in your own town. You can have 1 employee fulfill all the orders and contact you whenever there is a problem, which there shouldn't be since you already have everything in place to run without a hitch.
Even if you can automate a lot of this by hiring VA's and employees you will still have to monitor your finances, marketing and sales. You won't want to hire someone to do this for you because it will leave you open to fraud since it's not you handling the money.
It's really up to you whether you want to set up a passive affiliate income stream or a physical product passive income stream. The affiliate income stream will be much easier when it comes to getting off the ground and time invested while the physical product method will take time and you'll have to monitor a few more things. Each has their own benefits but more people tend to lean towards the affiliate method because it's a set and forget type of thing which is more convenient to people than producing a product for sale and managing employees.