6. Affiliate Marketing
Another way to make money from a website or blog is affiliate marketing. This is a form of performance-based marketing, in which you must direct customers to a retailer’s website by promoting products on your own site and linking to the retailer’s product sale page. Whenever a consumer clicks on one of your links and makes a purchase, you earn a commission – usually between 15% and 20% of the total price. Some companies, such as Amazon and eBay, make affiliate marketing deals directly with publishers; others work through middleman sites such as Commission Junction, ShareASale, or the Rakuten Affiliate Marketing Program. Active affiliate marketers often use multiple middleman sites to capture as many affiliate streams as possible, necessitating specialized tools to track and manage their networks.
Like online ad sales, affiliate marketing deals don’t bring in much money unless your site gets a fair amount of traffic. In order to get people to click on your affiliate links, you have to put in the work required to build and maintain a site that attracts plenty of readers. For the best results, you should write posts specifically designed to call attention to the particular product you’re linking to, so people will have a good reason to click on it.
However, if you and a friend both have affiliate marketing deals with the same company, such as Amazon, you can boost each other’s income a bit by becoming “shopping buddies.” Whenever one of you wants to shop on that site, you visit your friend’s website and click through from there so they get the rewards. Alternatively, you can just give each other your referral codes and enter your friend’s code directly when you make a purchase. This “you scratch my back, I’ll scratch yours” deal ensures that both of you earn at least some money from your affiliate arrangements.
7. Peer to Peer Lending
P2P lending is the practice of loaning money to borrowers who typically don’t qualify for traditional loans. As the lender you have the ability to choose the borrowers and are able to spread your investment amount out to mitigate your risk. The most popular peer to peer lending platform is Lending Club.
What’s great about Lending Club is that investors are earning 4-6% returns on average – and that’s all passive income. You simply lend your money, and you get paid back principal and interest on that loan.
You can invest in different kinds of loans (each of which involves its own risk level and return) and receive a passive income when the borrower makes payments. Single loan investments are available for as little as $25, so you can reduce risk exposure by investing small amounts in several different loans.
It’s important to understand that passive income is not money earned for doing nothing. Creating a passive income stream takes work and/or time Passive income streams that can bring in enough money to live on, such as writing a book or owning and managing rental properties, require a major investment of time, effort, and sometimes cash.
However, passive income has one big advantage: Once that work is done, the money continues to come in, with little or no additional effort on your part. This means that if you spend enough time during your working years setting up streams of passive income, you’ll eventually reach a point where you can collect enough to live off of, with little or no extra effort.
Once you get past these setup challenges, however, your efforts have an excellent chance of being rewarded with passive income and, by extension, peace of mind.