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May 08

4 Steps to Making Passive Income Online

Don’t let being a technophobic keep you back from making passive income online.  If you are technically challenged, as I am, I have good news for you! There are only 4 steps to making passive income online and you don’t have to know how to build a website. There are dozens of competent web designers you can hire at oDesk, eLance or other outsourcing firms.

Before you read the 4 Steps to Making Passive Income Online let me tell you that I think  the term, “passive income” is a misnomer that came from how the IRS labels income.  In truth, nothing about income is passive.  You cannot be “passive” and make a massive amount of income.

Take a look at my post on “How to Generate Passive income” and you will learn that in my view a better term for aspiring entrepreneurs like you is “leveraged income.”  Leveraged income comes from anything you spend substantial upfront time on to create and develop that turns into an ongoing income stream.

With that in mind, the four steps to make online Passive/Leveraged income are:

  1. Find a Profitable Niche

  2. Build a Simple Website

  3. Build a List of People Interested in Your Niche

  4. Market the Products Your Email List Wants

If you can accomplish these four things, you can make passive income online. I’m going to give you the basics of  how to find a profitable niche in this article.  You can find a detailed guide in my new book, The 24 Hour Millionaire.

Finding a Profitable Niche Starts with Passion

One of my millionaire mentors taught me this secret:  Internet marketing riches are in the niches. A niche is very simply a starving crowd of people who are actively buying products and services to solve their problems.Passion

Start identifying your niche by making a list of things that you are passionate about.  Identifying your passion is important because you want to find something that you have enough interest in to develop staying power with an online business.  You should also think about areas that you have some knowledge in or would really like to know more about.

Next go to the “Store for Dummies” at the Dummies.com website and take a look at the categories that people are buying books from. Click on a few of these  big categories and scroll through the the list of book titles.  Each one of these book titles represents a potentially profitable niche that you can use to build your website.

Not only do you need to locate a niche that you find interesting, you must find a niche where people are already spending money.  Book titles in Dummies.com will give you a good idea.

Big Four Niches

Successful internet marketers have identified what is commonly know as the Big Four Super Niches.  The Big Four are:  Health and Beauty, Success, Money and Business, and Relationships.  Almost everyone on the planet wants to look good, feel good, be successful, have more money and have better relationships. There are other A-Z big niches that attract thousands of monthly visitors so don’t feel limited to the “Big Four”.

Your Big Niche even if not in one of the “Big Four” could be in astronomy, food,  flying, motor cycles or how to pass tests like the LSAT or GMAT.

Once you have identified your Big Niche (health, food, gaming, money, business, cross-country skiing, flying airplanes, relationships, spirituality, pets, etc.) you need to find out what people within your niche are looking for.

For example, your niche may be health.  Within the health category you will find health issues that are important to women, men, children, teens and seniors.  Dig a little further and you can come up with more specific problems like “how to have beautiful skin” or “natural remedies for high blood pressure” or “permanent weight loss solutions”. Identifying specific problems will lead you to your micro-niche.  Take not of this millionaire wealth coaching secret:

Money making websites are micro-niched.

The way to find a more specific niche is to use Google Keyword Tool along with a tool called Word Tracker.

Google Keyword Tool

After you select a few sub-niches within your big niche, go to www.googlekeywordtool.com and do a search to find out how many monthly searches there are for your niche.  This is important because you need to know that there are an adequate number of people searching for the kinds of products you will offer on your site. I recommend selecting a niche that gets a minimum of 20,000 monthly searches.

You’ve just discovered how to find a profitable niche for making money online with your home-based internet marketing business. In the next article, I’ll show you the the basics for building a simple website.

Check out my Millionaire Coaching ResourcesBe sure to sign-up to my email list at the bottom of this post or in the top right sidebar and don’t forget to share the wealth of your knowledge with family, co-workers and friends on your social network.

 

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