3 Proven Methods to Make Passive Income Online – Hint : You Can Do This Part Time !

By | September 22, 2018

For generations we’ve been told to get good grades, get into university and land a stable job.

To hell with that advice ! I want financial freedom !

See, tons of people are looking to create their own passive income source, something to automatically bring them some positive cash flow.

Why is that?

Because lets be real here, no one wants to get stuck in the rat race forever. Sure a job can give you some sort of security, but you don’t really get much freedom do you?

But of course, we still need to put food on the table, so my solution to you would be to work on creating your passive income source part time.

So What is Passive Income Actually?

The art of passive income, is building your own automated system that will continuosly generate some money for you. In other words, something that can make money for you while you sleep.

What makes passive income so attractive is that you can make your money with minimal intervention from your part.

Of course, there is a trade off which is why most people can’t/don’t do it – working hard to first set up your automated business. It’s no surprise that you have to put in some effort initially to get your system up and running ( and making you that sweet sweet cash ).

Also, before I get into the 3 methods that I’m about to share, do know that the Internet is full of possibilities. There are tons of ways that you can make money online other than the ways listed here.

Lets start by first stating the 2 different models available :

  1. The Free 2 play (F2P) model
  2. The Pay 2 win (P2W) model

So in the online world, to make money you’re most likely going to need traffic, which pretty means visitors/customers.

There are 2 ways to do this and obviously the P2W way would be to buy traffic. Buying traffic can mean a variety of things, but most of the time you’d see experienced marketers set up their advertising campaign.

You know, those ads you see on Facebook or Google? Yup that’s someone else trying to buy traffic.

Of course, the F2P way would be somehow getting your traffic without paying. There is a price to pay as well though, and more often than not that would be time. Some good examples of free traffic are Google search traffic, where if you have a website that ranks on Google’s first page, or some kind of social media traffic if you have like a million followers on Facebook or something.

Not that you have this down, lets get down to the first way of creating your online passive income business.

#1 Drop-shipping


Drop shipping is very much like you, creating your own online store.

The way drop-shipping works is that you go out and find some suppliers, strike a drop-shipping deal with them and list their item on your store.

Usually, suppliers would ship their products in bulk but your deal with them would allow you to buy their items, one at a time. This gives you the benefit of not having to stock inventory.

So the idea is that on your online store, you’ll list tons of these drop-shipped items right?

When someone comes along and buys something from you, they will make a payment to you. You then take this payment, go back to your supplier and place an order for the item that your customer previously purchased.

Your supplier will then ship the ordered item directly to your customer. Your profit is the different between what your customer paid you and the price you’re paying your supplier.

How to start your own Pay 2 win drop-shipping model

Again, you’ll need customers for your shop right?

One very common way of doing this is to run some Facebook Ads. I mean, I’m sure you’ve seen some of them already.

So let’s say you’re opening a shop that sells cat accessories. You can then find customers by showing your ads to cat lovers on Facebook or something. The only effort you would have to put in is to keep finding your right audience to sell to.

Once you have safely make more money from sales than you spend in advertising, you have a very reliable passive income source.

Your ads will continue to run, your store will continue to collect payment, and there are programs that help you automatically place orders with your supplier that can be embedded in your store.

Store Coach is pretty handy and has some pretty good free training on Drop-shipping.

What are the challenges with this Drop-Shipping model?

  • Running Ads without experience can burn a serious hole in your pocket. It’s no easy feat to hit that sweet spot where you can earn more than you spend with ads. Even if you do eventually hit it, you’d still have to put in some money upfront first during your testing phase
  • While I say that It’s a P2W model, you still need to spend some time finding your drop-shipping deals, and fine tuning your ads

What are the benefits to this Drop Shipping model?

  • You don’t have to stock any inventory
  • Less risk when your item doesn’t sell since you can place your order after a customer has bought something
  • You also have the exit option of selling your entire online store for like 20-30 months worth of profits

#2 Blogging


Blogging is how I personally make my passive income online. The reason for this is that it’s a popular F2P model.

It costs peanuts to set up your own blog so really anyone can do it.

The catch is that you have to work your butt off to fill your blog with meaningful posts.

How to start your F2P model blogging.

Being the F2P model yes, the traffic is all free. The idea is that you want your blog posts to rank highly on Google, preferably on the first page even.

To do this, you’ll need to get yourself equipped with some Search Engine Optimization knowledge. SEO basically means the art of getting your posts ranked on Google.

Obviously, you will also need to spend a lot of time writing numerous blog posts. Once your blog starts to get popular it will naturally get visitors.

You might be wondering though, if you have to keep writing posts, how is this passive income?

You see, while you do have to keep your blog updated, you will not stop getting traffic even if you take a break.

The point is that whatever posts you have written previously will automatically bring in your visitors. So at some point you will be getting tons of visitors everyday without you having to do anything.

However, it is still recommended to regularly update your blog.

What about the money though? How do you make money with your blog?

It is very popular for bloggers to monetize their blog with ways like Google Adsense or affiliate marketing.

Having Adsense is very similar to having your own Youtube channel. Basically the more views you get, the more money you make.

Affiliate marketing on the other hand is how I’d recommend you make your money in the beginning. The general idea is that you promote products within your blog posts and make a commission when someone buys it through your recommendation.

You can check out Wealthy Affiliate if you want to know more about blogging and affiliate marketing. Again it has some free training as well.

What are the challenges to blogging?

  • A lot of effort needed to get to the point where you start ranking on Google page 1
  • Also a lot of time needed, since Google rarely trusts sites that are completely new

What are the benefits to blogging?

  • A blog can be easily created by anyone
  • There is nothing difficult about setting up a blog to get tons of traffic, really the only thing you need is to write
  • Really really low initial investment

#3 Amazon FBA

Amazon FBA

This is yet another P2W model. Amazon FBA means Fulfillment by Amazon as is pretty much a way of listing your products on Amazon.

How this works is that you send whatever you want to sell on Amazon to their warehouse. You then list these items on Amazon.

Now, Amazon will handle your sales for you. If someone buys your item on Amazon, they will ship it to them from their warehouse. They will also handle customer service and refunds.

How to start your P2W FBA model

This time, you would need to buy your products in bulk. So what you need to do is to find some suppliers and straight up buy their items from them. This isn’t like drop shipping since you’re maybe buying like 500 items at a time.

After that you’ll ship these items to Amazon, they have their own protocol for this.

However, once your stuff are listed on Amazon you can pretty much just kick back and wait for them to sell. We all know that Amazon is one of the biggest e-commerce stores out there, so I really don’t think you have to worry.

Oh, but do remember to pick what you want to sell carefully. Obviously you don’t want to sell something with extremely high competition. Well, if you do though you can always pay for advertising as well.

What are the challenges to Amazon FBA?

  • You need to take on some risks since you’re buying a lot of products at once
  • It can take some time for you to make your profit if your item isn’t selling like hotcakes

What are the benefits to Amazon FBA?

  • Amazon will handle most of the issues for you, making this model really passive
  • You get higher profit margins as well because you can always get items cheaper when you buy in bulk

So, now that I’ve given you some pretty juicy blueprints, you can get started on creating your own passive income stream online !


4 thoughts on “3 Proven Methods to Make Passive Income Online – Hint : You Can Do This Part Time !

  1. jessie palaypay

    I personally don’t like the idea of drop shipping that much from the perspective of dealing with customer issues. If customers have a problem with the product or service, I hear that the headaches are going to fall on the drop shipper. 

    As someone who has done affiliate marketing, I can say that I definitely did not have to deal with customer headaches because the company that I refer customers to deals with the customer problems. 

    That is just my understanding of the matter because I have friends that do drop shipping.


  2. Timm Mullowney

    Thanks for sharing this. I have been interested in Amazon FBA and I am planning on looking researching more on it. I believe it can be very beneficial to help create more passive income with my already existing Blog.

    I haven’t tried drop shipping yet, although the process does sound appealing. There is plenty of research for me to do before I consider that though. Ads can be a very costly thing to learn.

  3. Jim

    Thank you Lucas for your informative article on 3 Passive income models. I understand two of them. Drop shipping is something I’ve been looking into but for some reason I just don’t seem to have enough desire to start. I’m not sure why, but I continually hesitate with this system. Blogging is something I’m really very interested in, mainly because I love to write. Do you have any suggestions in regard to blogging. The internet is full of dodgy places offering you the chance to make millions. I just want to make a good living. Your third option has me stumped ‘Amazon FBA’ are you saying you need to actually buy their goods, they store it and you sell it on your web site that leads back to them? I’m not to sure why anyone would want to take this option.  Thanks Jim

  4. Salomon

    Hi, there

    I like your article, I’ve been looking for an idea to make money online, and your article is what I have been looking for.

    The Drop-shipping method is excellent but I like to start in F2P model blogging, and your article shows everything so thank you very much for showing me this, I am a member in Wealthy Affiliate and that have changed my life, it is so good and the people inside are so helpsome.

    Thank you very much for your great article.

    Best regards



Leave a Reply

Your email address will not be published. Required fields are marked *