Making good money online as an affiliate takes some strategic planning. Most affiliates try to jump on trends and promote whatever is hot at the moment, which is good sometimes but it doesn’t create a long stable passive income.
What is passive income anyway? In my opinion it’s an income stream that continues to flow without you in the picture. You earn passive income when you can turn off the computer and go away on vacation for 2-3 months knowing you will make money even if you are not at the office.
Passive income shouldn’t be dependent on any particular traffic source either. For example, when Adwords affiliates got dumped by Google their incomes disappeared overnight. Poof gone! (trust me I know)
The smart way now is to work on developing passive income streams that cannot be shut down overnight.
Believe it or not, a lot of successful marketers you see today work their asses off to generate the kind of revenue they brag about. They have an office building, staff, and an actual schedule that keeps them busy constantly.
I don’t want a high paying job, do you? I would rather make less but have the freedom to do whatever I want. Passive income provides the feeling of freedom and that feeling is worth more than anything else.
So let me give you some tips on how to develop a smart passive affiliate income that can make you free.
1. Promote evergreen products – By that I mean products that sell now and will for years to come. For example, weight loss products are evergreen products. People wanted to lose weight 100 years ago and will want to lose weight in 100 years from now (or at least till the end of 2012 lol).
A lot of affiliates jump on product launches and try to squeeze profits from the buzz they generate, but as soon as the buzz dies down you have to find another product to promote. It’s a mistake!
Find products that sell all the time. Products that people need and want no matter what the economy is like.
Best products are utility type products. What’s a utility type product or service? It’s something you don’t think twice about buying or subscribing to. It’s a product that you cannot “live without”. Web hosting is a utility type service. You can’t build a brand online without a good Web Host.
Another example would be an autoresponder service such as Aweber. You want to build a list right? Well, you need an autoresponder for that. Once you start building a list you will never cancel that service.
2. Promote products that pay recurring commissions – If you want to earn passive income then it would be smart to look for services that people are willing to pay a monthly fee for. What I like about recurring commission affiliate programs is that you don’t need a lot of traffic to build a passive income stream.
If you could make a few sales per month after a year it would all add up to a substantial monthly revenue, right?
You should check out my post about different ways you can promote subscription type services.
3. Build a list – Money is in the list! You hear that all the time. It’s true, but the main reason why you want to build a list is so that you don’t have to depend on any particular traffic source.
When you own a list, you own the traffic source. All the big marketers make most of their money through email marketing. They were able to build massive lists of subscribers through product launches, paid traffic campaigns, and JV partnerships.
They are set for life because they can simply send one email to their list and generate cash on demand whenever they want.
If their websites disappeared, or they stopped selling products, they could still live comfortably by simply sending couple of promo emails to their lists every month.
With that said, you should seriously start working on building a list too. You can actually make money while building one if you know what you are doing.
4. Sell the #1 product on the internet (Traffic) – Traffic is the best thing to sell online. Look at all the ad networks. They generate millions of dollars each year by reselling one thing and one thing only – Web Traffic.
You cannot build an online business without web traffic. You either need to invest money into content so you can attract it, or you can pay for it.
So how can you sell traffic? Build web properties that generate free traffic. Then resell it to advertisers, or through affiliate programs.
If you build a massive content site that gets thousands of visitors per day, you are set. You should of course outsource the content creation, and management, so you can live the dot com lifestyle.
Build platform type websites! I wrote a post about it a few days back. You want to create properties that people actually get to use in some way.
Passive income is not just a dream or pie in the sky. It can be real if you put your mind to it. It takes strategic planning and patience.
What you should do is come up with a plan. Take a notebook and outline your strategy that will keep you busy for a few months. Write down your income goals for this year (make it realistic) and start taking massive action.
If you got other ideas feel free to share them below.