5 Ways To Build A Passive Income Stream Online

Are you dreaming of an early retirement? Do you want to earn enough money to cover your daily needs and more of your wants without spending twice the effort? This is where passive income comes into play.

This post shares what passive income looks like and some of the common sources for passive income streams online–from affiliate marketing to investments. Keep on reading to learn more.


Understanding Passive Income

Passive income is commonly referred to as making your money work for you. This means you generate profits even when you sleep. Please note that it’ll still require effort, especially when starting, depending on what you’re doing to earn as a passive income.

To succeed, you need to invest time and put in the work to build something that’ll generate revenue in the future. As your income streams become more stable, you can spend less effort and enjoy the stable income stream.

5 Methods To Build Passive Income Online

Wondering what are the methods you can use to build up passive income over the web? Keep on reading below to find out more.

  1. Affiliate Marketing

Often referred to as the best way to generate passive income online, affiliate marketing should be at the top of your list. With affiliate marketing, an affiliate (usually a blogger, website owner, influencer, or any individual with an excellent online following) publishes or shares content that links to another business’s products and services.

The affiliate earns a commission if a user clicks on the links and buys the service or product. Commission can range from 3%-7%, depending on the affiliate program you joined and the products you promote.

Affiliate marketing will take time to create content and build traffic. But once you have a good following, you can generate high passive income. To help you get started on affiliate marketing, numerous courses like Digital Storefronts teach core strategies for affiliate marketers, including lead generation. If you’re interested, you can check this Digital Storefronts review.

The concept of passive income is gaining traction for those aiming for early retirement and financial independence. One intriguing method to generate passive income online is through affiliate marketing, where you promote other businesses and earn a commission. Imagine integrating this with innovative strategies like setting up a pre recorded live stream, where your content continues to engage and monetize while you focus on other pursuits. Such automated solutions can turn a single effort into a consistent income source, aligning with the very essence of passive earning.

  1. Start A YouTube Channel

Vlogging, short for video blogging, is currently on the rise, causing the number of YouTubers to increase. After all, people love a good video. In fact, videos made up over 80% of all consumer internet traffic last year.

Whether you’re a gamer or love to travel, you can take your passion for a subject and create videos about it to post on your YouTube channel. Then, you can run ads on your videos to generate passive income.

Like affiliate marketing, you’ll need to build a suite of content and drive traffic. Nonetheless, once you become more popular, you can enjoy a steady income stream.

Generally, the more unique your area of interest is, and the more engaging your content is, you’re more likely to get fans and keep them returning to your YouTube channel to generate more income.

  1. Sell Digital Products

A digital product is any asset or media consumers can’t physically touch. These include downloadable files such as apps, PDFs, eBooks, photography, and software. A well-made digital asset can offer high passive income since you only need to make it once and sell it repeatedly online.

Among these digital assets, e-Books and photography offer good revenue. Writing an eBook allows you to leverage the low cost of publishing and take advantage of broad distribution websites like Amazon to get you to book seen by millions of potential buyers.

The same goes for selling digital photos. If you have creative photography skills, you can sell the same images repeatedly by working with photography websites like Getty Images and Shutterstock.

Income illustration

  1. Dropshipping

Dropshipping is a low-cost way to start a business. This business model involves building an online store where users browse and buy products. But unlike traditional companies, you don’t own the products, so you don’t need a physical inventory of the products you sell. When someone orders, your supplier will handle everything from manufacturing and packaging to distribution and shipment.

In simpler terms, you’re just a middleman between the customer and a supplier. Every time an order is fulfilled, any earnings from the purchase will be yours to keep.

  1. Investing

Dipping your toes into the world of investments–whether the stock market or cryptocurrency–will require a steep learning curve. Yet when done correctly, investing can help you build lasting wealth.

Depending on what you invest in, you’ll either play the long or short game to get good returns. Plus, good stocks often provide dividend payments which can help increase your earnings over time.


As you can see, you have various options to generate extra cash flow without spending too much effort. It can be as simple as investing your hard-earned money or as involved as using marketing other businesses.

Depending on the amount of passive income you need every month, you’ll have to try multiple passive income sources online to reach the financial freedom that your 8-to-4 job can’t give you.