5 Steps for Online Passive Income

Computer Person 5 Steps for Online Passive Income

One of the unique benefits of making money from a niche website is online passive income. Once you create a great website that generates a lot of search engine traffic, all the money you earn from affiliate links (or your own products) is completely passive.

The following is why niche websites work, followed by the basic steps to earning money online.

Online Passive Income with a Niche Website

Niche websites are perfect for earning online passive income, because everyone knows a lot about something. This is one of the rare occasions when you can truly combine your passion with your job.

For example, a niche website about your hobby, such as DIY wood boats, can be a fun project that generates tons of extremely specific search engine traffic. Visitors will come to your DIY wood boats website, primed and ready to potentially buy related products.

This successful strategy is becoming increasingly popular, due to its high success rate. It originally started as bloggers attempting to earn money on their blogs, but it was soon discovered that owning your own website is essential to being successful. Otherwise, search engines do not view the page as authoritative; not to mention your blogging host owns you. It also builds credibility for your visitor when they see yourwebsite.com instead of the blog-host's website.

Here are the steps to making your own online passive income:

Step 1: Choose a Web Host

If you feel fairly confident about how to build an income-generating website (maybe you are an experienced blogger), then BlueHost is highly recommended as your hosting company. A domain name is included, and they have multiple plans to meet your needs starting as low as $3.95 per month – that's about what the average person spends on a cup of coffee every day.

BlueHost provides a simple website builder software, but many who choose BlueHost use the free Wordpress software to build their website. In the control panel (cPanel) on BlueHost, Wordpress can be added with a single click.

Note: There is a Wordpress.org (the link above) and a Wordpress.com. The Wordpress.org is the one you want: It is where you can host your website elsewhere (BlueHost) and use Wordpress' free software.

Wordpress.com is for those who just want to have blog and host it at a yourblog.wordpress.com instead of having your own domain name.

No experience building a website?

If you want extra help to guarantee your success, Site Build It! is the best product for you. They have everything in one place, including web hosting and a Step-by-step Guide to building an online business, as well as Keyword Search Tools and an easy-to-use Website Builder. They also support Wordpress, or any other website building software.

There is also a Community Forum of SBIers (as they call themselves) who are actively helping others achieve their passive income goals.

Step 2: Search for Niche Ideas

If you are starting with Site Build It!, then you can use their keyword search tool to decide on a profitable niche (it specifically has a niche-finding function). You can also use the keyword search tool to come up with page ideas to build your website.

Unlike free keyword tools, SiteBuildIt's keyword search tool provides both information about keyword demand (search volume) and supply (number of websites already targeting that keyword). Supply can be very important because it can give you an idea of how much competition you will have for that keyword and how difficult it will be to win in the search engine rankings.

If you are using BlueHost with Wordpress, then the next best option is to sign up for Google Adwords and use their Keyword Planner Tool.

Google is the biggest search engine, getting well over 85% of all total searches compared to Yahoo and Bing, so the majority of your website traffic will likely come from Google searches. Technically, you can have a Google Adwords account, which is used to advertise your website on Google, without spending any money while still having access to their Keyword Planner Tool.

One of the benefits of Google's Keyword Planner Tool is that you can put any website into the search box and Google will give you information on related keywords and their total search volume, giving you an idea of the maximum potential traffic of a website.

Note: Advertising your website on Google Adwords is typically a losing battle for "the little guy" (meaning small websites and businesses). The price of advertising for a particular keyword is based on competitor pricing, being determined by an automatic auction-like system. Thus, unless you own a unique, expensive product, you will just lose money on Google Adwords. It is better to write lots of content in order to get free search engine traffic, instead of paying for it.

Step 3: Build Your Niche Website

The most important factor in building a website that generates online passive income is traffic. In general, the more traffic you can get to your website, the more money you can make. This might mean writing several hundred pages for some niches; however some websites earn significant passive incomes from only 15 to 30 pages.

That many pages might seem like a lot, but if you only write one page per week, after a year you will have 52 pages!

The great thing about a website as a small business is that you can continue to write pages indefinitely, and the work you did yesterday still pays off today, allowing you to continually growing your online passive income.

Ask Yourself: In 5 years, do I still want to be working a job or earning online passive income?

Link Building

When ranking search results, search engines like Google use links going from other websites to your website as a signal for the authority of your site.

It used to be that any link from any website could benefit your rankings in search results, but now the quality of those links matter. For example, a link from a blog post may actually hurt your ranking, especially if that is all you have (because people used to be able to easily manipulate Google by writing a bunch of one-page blogs), whereas a link from a high quality reputable website will greatly benefit your own ranking.

Getting these links naturally can take a very long time (years), which is why having a link building strategy is extremely important for fast success.

There are only a few ways to get these high-quality links:

1. Submit your website to free online directories.

2. Email the webmaster and ask for a Link Exchange.

3. Syndicate content aka "Guest Post" on other authoritative websites.

Step 4: Place Relevant Ads on Your Niche Website

Advertisements are only considered to be annoying when they are irrelevant. By placing advertisements that are related to the topic of your website, advertisements are both expected and often helpful.

You can either advertise your own products (ex: ebooks) or you can become an affiliate. Affiliates put advertisements of other companies on their websites, making money through referral commissions. A great affiliate program to get started with is Amazon.com, which is the largest online store. You are likely to find a product that is relevant to your niche website on Amazon.

Google Adsense is also a popular method of earning money through advertisements on your website. Google shows ads based on each pages keywords, as well as information Google has about the users recent search history. You get paid per click, although generally each click earns less than $1.

How much a click is worth depends on the type of advertisements Google displays, which depends on your niche. The foundation of smart advertising is keeping them relevant to the content. A book about dogs is unlikely to sell well on a DIY wood boats website, whereas a Boat Magazine may sell very well.

Compare Web Hosting and Start Your Online Business

Step 5: Relax and Enjoy OR Keep Increasing Your Income

After you build a website that generates a quit-your-job passive income, you can either relax and enjoy your income OR you can keep working on your website in order to build it up more. Remember that more traffic generally means more money.

If you want more information about different hosting company options, visit Compare Web Hosting.

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