The best way to make passive income is to sell a digital product. This simply requires that you make or find a digital product to sell, build a ‘sales page’ from which to promote the said product, and then use advertising or marketing strategies to drive more visitors to that sales page.
This is a very ‘hands-off’ method of earning an income that will generate money while you’re sleeping – and you don’t even need to worry about delivering a product!
But the problem is that this is limited in scope. Eventually, you are likely to exhaust the market for your product and find that the cost of advertising starts to outweigh the profit from your sales.
You aren’t delivering any value to the end-user, you aren’t building a relationship and at the end of the day, this is a technique that won’t last forever.
And that’s why a lot of people are interested in making money from a website. That way, they can build their brand, build a big audience, and then sell products that they’re interested in and proud of.
But is it possible? Can you generate the same kind of passive income from a website? How long will it take? Let’s find out…
Many challenges make it harder to make a passive income from a website right from the offset.
For starters, you will immediately find that the money you make from adverts such as Google Ads is not truly comparable to the money you can make from a digital product. Ads will typically pay out a few cents per click and most of your visitors are not going to click them often. This is especially true these days with so many people running ‘ad blockers’ and the like.
The other problem is that it can take a long time and a lot of work to gain a big audience on a website. You’re going to be competing with the rest of the web and many of the creators you’re going up against will have gigantic advertising budgets.
But as with most things, the secret is to work ‘smart, not hard’.
That means picking the right niche, to begin with. By selecting the right niche to enter into, you will be able to avoid going up against the huge competition (as you might do if your niche were something broad like ‘fitness’ for example) while at the same time ensuring there is enough of a demand for what you’re selling.
Choose a niche that has clear products to sell to a specific audience and one that will allow you to avoid the hugest competition.
The next strategy is to recognize that you need enough content to climb the ranks of Google and that this content needs to be of high quality. This is where it can be hard to keep your model ‘passive’ but the solutions are either to hire someone who will create the content for you or spend awhile writing lots of content so that you can post it gradually over time.