3 Easy Ways To Create A Passive Income

 If you're looking to find a way of creating a passive income, look no further- here are 3 easy ways to create a passive income.

What is a passive income?

A passive income is an income received on a regular basis and can come from many sources including the more traditional methods such as buying land, property and stocks and shares. However, even though these avenues can indeed create a great reliable passive income, they can be very costly. So are there any easier ways to start creating a passive income, especially if you are on a shoestring budget? Here are 3 easy ways for you to consider;

1. Creating An Information Product

Let's face it, most of us know something; Whether it's about a hobby, sport or even every day house hold chores. It's simply a case of turning the info in your brain into cash. So what's the easiest way to go about this?

The internet is now the biggest encyclopaedia out there, therefore it will come as no surprise to discover that one of the highest searches start with "how to" do something. At one point or another, most of us will need information about something.
The easiest way to make money from this is by creating an information product that provides an answer or solution for what people are looking for.

This can take the form of a CD, DVD or even an eBook. The great thing about this type of product is that it's cheap to produce and can be sold for a price determined by you which can be anything from £5 upwards.

You can even take things a step further by making up a set consisting of 2 or more of the items. For example a DVD and eBook. This will result in you being able to charge even more for your product as the perceived value will be higher. You will now be able to charge anything from £67, £97 or even more!

So how can selling information products create a passive income for you?
To create a passive income you will need to have a front end (cheap product) and a back end (dearer product).

The information products mentioned earlier will act as your front end product and will have been placed into your sales funnel ready to up sell to those customers later on.
To create a passive income you will need your back end product to be a subscription type product, i.e. something that a person needs to make a regular monthly payment for.

One easy and effective subscription back end product that you can use is to offer individuals the opportunity to buy licences from you for selling products like DVDs. This, in effect means, that for a small monthly fee, they can rebrand and re- label a product to sell as their very own product.

If you do not want to sell licences for your own product, then you purchase platinum re sell licences that will enable you to sell licences for other people's products, for a monthly subscription.

To find these types of licences, simply search on the search engines or check out your spam folder as often there will be some great products out there that you can purchase a license for.

To allow yourself the best chances of success, it is better for you to purchase and try out the product yourself to make sure that they actually work, before offering to buy the licence.

How much does a platinum type licences cost?

As a rule of thumb, you should offer approximately 10 times the retail price of the product.

The great thing about selling information products is that you can buy low and sell high- making a huge profit in the process.

2. Creating Membership Sites

A membership site is where someone pays a subscription to view your website. This is different from selling information products in that, instead of simply receiving a one off payment for a DVD or eBook, you will instead receive a monthly payment from the offset. That is why this is one of the smartest passive income ideas out there.
Just imagine... Simply signing up 500 members at £10 a month will provide you with a passive income of £5000 a month!

The content on your site can consist of text, audio or video.

You simply need to decide on a subject or niche for your membership sites. Some examples include hobbies, sports, special skills, health or even starting a business.
You then need to provide tips, training or tutorials within your site that offers valuable information for your members.

Free tools like Google trends offer a great way to find out what's the most "in demand" including;

• How big the market is- are there more than 30,000 searches in a month
• How competitive the market is- how many ads and existing websites are there for that niche
• Will there be a good return on investment for your members
If you decide to create a passive income through creating a membership site, there is some great software out there that will help you to get started.

3. Creating A Down line

There has been much negative press concerning internet marketing. This is sad as there are many genuine internet marketing opportunities out there that really can offer an easy and affordable way to create a passive income.

Internet marketing is a numbers game. If you have a great product(s) to sell then achieving the numbers is easy.

As with the information products opportunity, success within internet marketing relies on having a good front and back end product.

If your front end product is low cost and it works, then up selling products at a later stage will be easy as you will already have gained the trust of your customer via your front end product.

So how does internet marketing create passive income streams?

The great thing about internet marketing is that even if you haven't got a product of your own to sell you can sell affiliate products instead. Some online opportunities are currently even offering 100% commissions, so it's like selling your very own product.

People are always looking for ways to make more money. Therefore if your product is good and offers a good profit or commission, it won't be long before your customers will be asking you how they too can make money by selling products by joining your team.

So how does this create a passive income for you?

This will depend on the online opportunity that you join. Some will offer you a commission for what your down line sells, while others will offer a residual income by paying you a monthly commission for every month that your member continues be active. Again, there are some online companies that are paying 100% monthly commissions.

So if you are looking for easy ways to create a passive income, then these are what I personally regard to be 3 of the most smart passive income ideas out there right now.