I always get asked: What is the best way to make a passive income? Of course there are many ways, online and offline, but some ways are easier or cheaper to start than the others.
And of course, there are many other criteria which you can use to judge on which are the best passive income opportunities, such as: mobility, time needed to be invested upfront, how many people will be involved and many other criteria. I will guide you here in this article into the best way, in my opinion, for generating a passive income.
So, are you ready?
Here is my answer: Affiliate Marketing is the best way to generate passive income! Don’t freak out if you are not a techie guy! Affiliate Marketing has really not that much to do with technical stuff.
With the right mentorship and best affiliate marketing tools that I will provide you with, and with the ability and desire to learn and act consistently with patience, you can start generating a full time income with Affiliate Marketing.
If you can check your email, view your Facebook or LinkedIn news feed, then you are likely to do very well with the Affiliate Marketing world.
But I heard that I need to set up a website and setup the security, create content, learn how to do marketing campaigns, ..etc. and I’m not into that stuff .. Ya, I can hear you! Don’t worry! I will guide you in my recommendation #1 into the best platform you will find for learning how to become a successful Affiliate Marketer, and the same platform will provide you with the necessary tools that you will utilize in your journey to start an affiliate marketing business for free and into becoming successful in the Affiliate Marketing space.
You can go now and explore my #1 recommendation and sign up for the free membership to start learning by clicking here, or you can stick with me in this article first, in order to know why I believe that the affiliate marketing is the best opportunity for generating a passive income.
Q: Why Is Affiliate Marketing The Best Way To Make Passive Income?
A good question!
In order to answer you, I first have to discuss with you the two main categories for Passive Income (and Business in general) Opportunities in today’s world (also known as: the information age):
1 – Online Passive Income Opportunities: Affiliate Marketing, Digital Products Creation and Selling through online stores or websites, Physical Products Creation and Selling through online stores, Dropshipping, Training Courses, Freelancing in different services (web development, graphic design, copywriting, proofreading, ..etc.) and many other ways to make money online (Partially Passive Income Sources)
2 – Offline Passive Income Opportunities: Investing in Real Estate, Stocks & Bonds, Angel Investing in Start-ups, Owning a company, a factory or a restaurant and hiring others to manage it, and many other ways.
Now why did I mention these two categories? and what does this have to do with the best way for creating a passive income, and what does this have to do with the information age?
The answer is simple: since we are living in the information age, and not in the industrial age anymore, it now doesn’t take a lot of money to make money.
So, What Does It Take Then To Make Money?
It takes Information! And information is available everywhere and accessible to everyone of us. Thanks to the internet!
If you want to create a passive income source in the physical world, let’s say a Real Estate business, you would need some money in advance in order start with the first property. You don’t have to fully pay from your own money, you can get a loan if your credit score qualifies you, but still, the advanced payment you have to pay by yourself is not small, it ranges from few thousands of dollars (in case of owning a studio or a small apartment), into tens of thousands of dollars if you plan to start big.
And although investing in the real estate sector is one the best ways to create a passive income, and it can increase your capital over the years, but still, It takes time for finding the right property, applying for a loan, finding the tenants, managing the property, ..etc. Until you get to acquire a lot of properties, that then you can hire someone to take care of all these stuff.
But again, more properties means more money to be invested in advance! Do you have it?
The same applies for starting or investing in an Industrial Facility, Services Providing companies, Hotels, ..etc. You need the capital, and the time and effort in advance until you establish the effective system that will operate the business for you as a business owner.
But what about investing in the stocks and Bonds? Although a good option, but you still need a good amount of money in order to build up a good portfolio that will generate a good amount of money for you. And don’t forget that you don’t have much control over how the companies, in which you are investing, will be performing, nor do you have control over the market fluctuations.
Angel investing in startups on the contrary might be a good alternative as you can have some control over the companies you are investing in, but still you need a good amount of money, and you need the time to monitor, and to some extent, mentor the team that is managing the company you are investing in. This is a High Risk High Reward Opportunities sector.
So, Where Does That Leaves Us? In The Online World!
Now in the information age, it is easier than ever to start a business with a very small, or almost zero initial investment! All you need is your computer, internet connection, and a very small amount of money, usually a few hundreds of dollars or even less! This is why I started looking for ways to do engineering work from home after leaving my job as an Electrical Engineer.
But how can we make a decent passive income with such a low initial cost?
In order to answer this question, you have to look at everything in life in terms energy! Money is energy, work is energy, the data is energy, and simply everything out there is energy.
You don’t have to start with a lot of money in order to start making a decent income. You need energy in different forms and quantities.
Instead of putting a lot of money in an investment in the offline world, and you still need to put some time and effort as we explained earlier, you can simply invest a small amount of money, with the right amount of information, and work put in advance, in order to start making a decent passive income in the future.
And since we are in the information age, it means that you can use a lot of the information in your favour in order to minimize the amount of money you need to put as an investment.
If you are not convinced, look at all these tech companies such as; Google, Facebook, Alexa.com, YouTube, ..etc. and many others that are worth hundreds of billions of dollars. How did they get to acquire such a high value. It is not by the offices they own (mostly they are rented) nor by the servers the own. They acquire such a high value because of the huge volume of the information they have!
This information they have, they use in order to sell advertisements for companies from all over the worlds, targeting the right people based on the data these people provide by using these platforms. Facebook knows your favourite sport, team, the languages you speak, your gender, age, relationship status, ..etc. And Google knows what products or services you are looking for, what kind of websites you visit and much more than you can imagine.
And they use this information in order to drive the related ads to you for an exchange of the money they get from the advertisers.
This is the value and the power of information in the information age!
And this is for your own benefit, since as I described earlier, you can use the available information as a part of the initial investment that you put into building your business.
Or let’s say, your Online Business!
So, There Are Many Opportunities To Make Money In The Online World. Why Do I Say That Affiliate Marketing Is The Best Way To Make Passive Income Online?
First of all: What does passive income mean?
It means that you have a source that is generating income for you without you having your hands busy doing the work. Or let’s say, the ability to make money regardless on the hours you are available to work.
Passive income, in many cases, isn’t 100% Passive! Or let’s say, it doesn’t have to be, and that’s fine!
If you have a company that you need to spend few hours a day or a week to monitor or manage, but it still generates you an income when you aren’t there as well, or when you are asleep, then that company is a source of passive income. Or Partially passive income. You can read more on this in Investopedia’s article about Passive Income.
The same applies to some of the opportunities in the online business world.
Passive depends on how long you can disappear away from your business and it still would be able to generate money for you. The more you can stay away and it keeps generating a steady income, the more passive it is.
It depends also on other factors, how distant you can go from your business without having to worry about it. Or can you manage it remotely from anywhere in the world when necessary?
And most important, how big and critical are the possible negative effects that might hit your business if something undesired happens when you are away for a while!
These all are factors that I use in order to compare between the different passive income opportunities when I want to make a judgement to decide which one is the best.
Going through the online options for making money, I found the Affiliate Marketing to be the Most Passive Way to generate a stable income with the least number of hours to be worked on regular basis, the lowest cost of money invested, the least amount of interaction with others, the smallest possible damage in case of something happens while you stay away from your business for a long time, and most importantly, it gives you the mobility and the ability to manage your business from anywhere in the world!
While many of the other online business models grants you the mobility benefit mentioned above, but they don’t’t perform as good as the affiliate marketing model does when it comes to the other factors mentioned above.
In addition, affiliate marketing allows you start in almost any niche, you can make money in the gaming niche, Sports (Basketball, Golf, Swimming, Football, ..etc.), Yoga, Singing, Music, Drawing, Fashion, Engineering, …etc.
For example, if you have an online store for selling your own digital products through an E-commerce Platform such as Sellfy, although you can automate the whole process, but you still have to take care of the customer support and respond to any complaints you receive from unsatisfied buyers!
Or if you are selling physical products through dropshipping, you have to deal on almost daily basis with the fulfillment of the orders, deal with the returns from the unsatisfied customers, and your store reputation might be affected if your vendor doesn’t perform well. This means that you can’t stay away from your business for a long time, although it is still much better than working a 9-5 Job.
The same applies to the training courses you might create and sell, you will need to provide a continuous support to your students and answer their questions.
And the same applies to many of the other opportunities in the online world.
But when it comes to the affiliate marketing, you are not responsible for the product, returns, customer support, shipping, ..etc.
As an Affiliate Marketer, your job is to give your audience your honest opinion about certain products and give them recommendations on what to buy, and what not to buy. Most importantly, is that you give them an honest opinion and don’t scam them in order to make them buy useless products so that you get the commission.
And the best way to do so, is through writing reviews about the products related to your audience in your niche, tell your audience how they might benefit from buying a good product you recommend, or from staying away from a bad product you dis-recommend.
And if you don’t know how to review products, don’t worry, it’s easier than you think! Check my article here on making money through reviewing products online.
But Is Affiliate Marketing Really A Profitable Business Model?
The answer is simply yes. The world needs Affiliate Marketers more than ever!
Lots of businesses are now competing against each other in the online space, because this is where the world is heading.
Every day, people get more used to buy things online. These could be Digital Products or Services, such as Video Courses, Ebooks, Softawares, ..etc. or Physical Products such as a Mobile Device, a Laptop, A Hard Copy of a Book, and thousands of thousands of different products in all the categories. Check Amazon and ClickBank to get an idea.
And the sellers of these products and services are moving to the online world as well. And as the competition grows among them, they seek qualified marketers to help them win over their competitors, and they are willing to pay high commissions to the affiliate marketers in order to help them make the sales.
But here is the question: How Can I Become A Qualified Affiliate Marketer Without A Prior Experience?
As I promised you at the beginning of this article, I will guide you to the right place where you can efficiently learn in a systematic way how to become successful affiliate marketer.
At Wealthy Affiliate, you will find all the necessary training material, the tools and the guidance through your journey into becoming a successful affiliate marketer from the scratch. Just join for the free membership and see how possible for you to become a successful affiliate marketer in almost any niche you choose and without a prior experience!
So, are you ready and willing to learn the best way to make passive income?
And finally, If you found this article helpful, then please, share it with others who might benefit as well!
And if you have any comment or questions, please, leave it in the comments’ section below and I would be more than happy to answer you! 🙂