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Passive Income 101- How to Earn Passive Income by Starting Online Business

Are you looking for ways to make money online without taking too much efforts and hard work? Guess what? That’s completely possible! It’s called “Online Passive Income”. Here, you don’t really have to go through a lots of efforts in order to make money online. Yes that’s right!

Here is the comparison that will give you the idea about how that can be possible:

Efforts that you put every day to earn money


Efforts that you put once and then sit back and earn just like this man in the below image who planted a money tree once and now enjoying the fruits (Passive Income).

How to Earn Passive Income by Starting Online Business

It’s a era where every business needs to have a online presence to make sure they at least be found when somebody search for their business name online.

Since, only creating online presence for your business doesn’t make you earn passive income! You need to know the list of ideas from which some ideas will earn you Passive Income as per your condition.

So, lets begin with a question “What is this Passive Income exactly?”


What is Passive Income?

Passive income is an income received on a regular basis, with little effort required to maintain it. (Definition from Wikipedia).

Let me elaborate this with simple words:

It is the type of income which obtain from the business in which you are not substantially involved all the time. This means revenue is generating by your business even when you are sleeping, travelling or on vacation.

Passive Income

Isn’t it amazing? This is where i decided to learn this and earn passive income. When I first discovered about Passive Income, I was surprised and uncertain at the same time. Every odd day i stumble upon a success story of an online marketer who earn by means of passive income.

Though, Passive income can be also derive from rental properties, no material participation, partnerships and other establishments. Business which has online presence will have the best returns in upcoming future. So, it’s worth to invest in online business for every marketer.

Are you ready for the biggest life changing secret? First, you need to know your purpose!


1. Know Your Purpose

The reason I strongly believe to know your purpose is because you will enjoy and be happy at the same time while doing your business and get the best results out of it. I just follow this saying

“Love what you do, Do what you love”.

(If you already have idea for business then you can skip this step) But I strongly recommend to follow this little exercise.

Check out the below diagram to find out your purpose.

Know Your Purpose

Write down every answer from the diagram and evaluate the final outcome. You will find the exact list of activities that you love to do, you are skilled at, people needs it and you get paid for it. So, just imagine that you have this business where you don’t get bored all the time, you don’t need of high level skills, people get solution to their problems and fulfill their requirements and you earn money (Passive Income).

Let me give you my example.

I have found one of my purpose which is what I am doing it right now. Yes right now I am serving my purpose! This is how I find this purpose by doing the “Know Your Purpose” exercise:

1. I love to help people & motivate them to follow their dreams.

2. I am very good at the most of the areas of online marketing.

3. People need to know the best way to do online marketing and earn money (Passive Income).

4. I get paid for what I am proposing to them. (Affiliate Marketing – Explained in Step 7)

If you are not sure or found your purpose after this exercise, Don’t worry! Move on to the next step of Passive Income.


2. Identify Online Opportunity

Now that you have purpose or business idea, You need to find out what works best when it comes to online. You need to do the market research to find the online demand for the solutions & products that you can offer with your business.

Your online business must have solutions or products for people who needs them. In this way you can present the solutions & produce your online business and platforms.

Identify Online Opportunity

Below are the metrics that you need to consider while doing your online research. By selecting the right keywords for your business will ensure your business get found in the targeted market and area.

Before you do your research keep this metrics in mind:

  1. Target audience data (Age, Gender, Location and Interest)
  2. What online platforms they use to find certain solutions and products.

Once you have this data, you will have the complete understanding about what and how you can produce online business. Start searching about the solutions and products that you can provide on your website.

Keyword research is very crucial stage in order to start your online business and earn Passive Income.

More than 95% people fails while choosing the right kind keywords for their website and waste all the efforts they put in it.

There are two factors which you need to check about any keyword is the search volume and the competition.

Before keyword Research Read This Post:

How much is the too much and ideal keyword optimization? (opens in new tab)

Recommended Keyword Research Tools:

Long Tail Pro

Start using the step-by-step system that has been tested to death and continues to work FLAWLESSLY regardless of any Google update or algorithm change.

Long Tail Pro is FASTER than ever! I’m talking 8x FASTER than Market Samurai. Find up to 800 keywords per seed keyword – with the ability to capture literally thousands of keywords in seconds.

Long Tail Pro

Save countless hours by having Long Tail Pro quickly analyze the top 10 results in Google for each of your keywords. Find out important SERP data like keyword usage in the Title and Meta tags, Domain & Page Authority, Moz Rank, Pagerank, # of Backlinks, Domain Age.


SEMrush is a powerful and versatile competitive intelligence suite for online marketing, from SEO and PPC to social media and video advertising research.


Get insights into your competitors’ strategies in display advertising, organic and paid search, and link building. Cross, combine, and visualize SEMrush data to compare competitive domains and estimate keyword difficulty with a few clicks.

Try SEMrush 14 Day FREE Trial

Another good tool for keyword research for your online business is Google Keyword Planner. This is used by many online marketers as it is free product. Since this tool is free, it does not show a comprehensive list of keywords that you should have in your list.


3. Create Your Website / Online Shop / Blog

Once you done with the keyword research, you need to have amazing online platform which can be a website or online shop or blog. This platform is your brand portal where you need to gain authority in order to earn your audience trust and believe.

Create Your Website

Your business production for online platform can be done in various forms such as shopping website, blog, information websites, YouTube channel, social media platform. Your targeted audience may be using  YouTube, Facebook, twitter and other platforms to find their solutions and products for most of the time but, you should have your website to create a unique entity and brand.

Follow the step by step process to create your online presence for Passive Income:

  1. Get a Domain for your Brand

So, you need your brand address / URL which is the prime location for your targeted audience.  When they visit your website, they perform activities to get what they want and become the fans and follow your brand depend upon your overall website experience. So get a domain name and start building your brand.

Before buying domain please read this post:

How to Choose Right Domain for Your Brand (Opens in New Tab)



     2. Get Website Hosting

A web hosting service is a type of Internet hosting service that allows you to make your website accessible via the World Wide Web.

Recommended Hosting:


The Best Web Hosting Starting at $7.99 $5.95/month* Check All Offers.


This website hosting gives you the space to store your data/content. You can host multiple domains and emails. They have customer support for every hosting related concern’s.


     3. Install the Best Suitable Content Management System:

Your brand domain need to have its own unique theme. I recommend you to use WordPress CMS (content management system) for your online business, because it’s free open source, fast, easy, responsive and has plenty of extensions available on the internet for your every need. It is always good to have a fast solutions while creating your online business for Passive Income niche.

Install the Best Suitable Theme

WordPress has every customization in back-end according to your need, whether you want to just create a blog, website or shopping site. There are various themes available for every types of categories. You can do blogging, open eCommerce site and create your portfolio’s. Though you need to choose the best suitable theme as per your brand concept.

Get the Recommended WordPress Themes:


Discover 23,306 WordPress Themes and Website Templates from only $3 on ThemeForest, the #1 marketplace for Website Templates.


Launch beautiful, responsive websites faster with themes and templates for WordPress, Joomla, Drupal, Magento, Landing Pages and more. This current theme I bought from ThemeForest only. Get Yours!

Thrive Themes

Home of the best WordPress tools for business builders & startups. Create awesome websites, high-conversion landing pages and make your business thrive.


Themes & plugins, built from the ground up to make your entire website convert more of your visitors into subscribers, customers & clients.


Recommended WordPress Plugins:

Yoast SEO: Improve your WordPress SEO: Write better content and have a fully optimized WordPress site using Yoast SEO plugin.

SumoMe: SumoMe provides free tools you need to grow your WordPress site. This plugin will make it easy for your readers to join your email list, share your articles and optimize with analytic.


Recommended Logo Design Tool:


Create your logo design online for your startup or small business quickly & easily with our DIY logo generator for free. Ready to fly solo? Start with an amazing logo.

Free Online Logo Maker & Generator

It’s free! 1,943,452 entrepreneurs have launched their business with LogoGarden. 1000’s of options. Custom Logo Design With Our Free Online Logo Maker & Generator. Easy pick-n-clickTM tools. Unforgettable results.


     4. Secure Your Website

Your website needs protection from spam, malware and site hacks. Your brand will serve your audience 24/7 and you don’t want your online site crashes and unreachable to your audience in any moment of time. Hence, ensuring the best security to your website is the first critical option you should concern in order to protect your Passive Income business.

Secure Your Website

Recommended Security Service:


Sucuri cleans and protects your website. Affordable website security. Sucuri offers website owners peace of mind and professional support when they need it most during a security incident. Entrust your website security needs to the most trusted brand in the business and get back to running your business.


A comprehensive security stack for any website, regardless of technology. Providing businesses peace of mind with the security of their website. Protect your website with Sucuri.


Recommended Online Backup & Cloud Storage:

Live Drive

Cloud storage and unlimited online backup from Livedrive. Easily backup, share and store documents online: online file storage that’s as easy as using an external drive! Easily backup, share and store documents online. Access your files from anywhere, on your computer, tablet or mobile phone.
Livedrive Simple, Secure Online Backup

Automatic online backup for all of your computers, from just £4.00/month*. Fast, secure, easy to use & instant setup. See your backed up files on the web, iPhone, iPad & Android. Sync files online and across all your computers.


     5. Add Content / Products to Your Online Portal

Once your website is secure and sound, you can start adding content to your website. Do you know this saying ?

“Content is King”

Your website content is the key to your success. Most of the online brands have great content strategy for their products to reach their audience and earn Passive Income.

Add Content

Writing great and unique content is the job of expert and if you are one of them then you need to also learn about differentiating your brand from the competition. Most of the time content writing is time consuming and lengthy process. You can hire experts to write the content for your website, products and testimonials.

Hire content writers from these websites: Upwork.com, Freelancer.com and Guru.com


Add Images

“A picture is worth thousand words” this means adding images to your content increases your brand appealing. You need quality images to showcase in your website. Images has its own search engine section where you will get traffic from search engines. Images speaks for themselves, So make sure you add them where ever you think its needed.

Add Images

Since, Most of the images found online has its copyright and you can not use somebody else’s image within your online business. Hence below is the website I recommend you should use to get own your images before you use them on your website.

Recommended Online Stock Photos:


The best stock agency with millions of premium high-quality stock photos, royalty-free images, illustrations and vector art at affordable prices.


Millions of high-quality royalty-free stock images and high-definition footage at the best prices to fill all your creative needs. Get Images for your business.


4. Build Your Email List

This is the biggest part of this step by step process of Passive Income. Email marketing has the high conversion rate in comparison to other marketing sources. This is why I am en-thrilled to make sure my email campaigns runs smoothly.

Build Your Email List

The email list that you opt-in on daily basis consist your real fans and followers. These users are most of the time your returning visitors as well as regular customers. Since, you have the contact information and segmented list you can sell your brand in very productive way.

Recommended Email Services:


350,000 happy customers in 182 countries, engaging more than 1 billion subscribers every month. Powerful tools built for success and ease of use. Find out how simple email marketing can be, with GetResponse.


Easy and intuitive email creator to build beautiful emails without using a drop of code. 500+ professionally designed email templates you can use to start sending emails today! A/B testing up to 5 versions of your mailings to know which offer works best with your audience. Try GetResponse!


“Looking for affordable and easy to use email marketing and auto-responder tools? Click here to start your free email marketing trial with AWeber.” All the tools you need to send emails the right way.


Email is perfect for keeping your brand top of mind and staying connected with those who make a purchase, read your blog or meet you in person. And when you join the community where email automation began, you get access to all features and a team that’s 100% devoted to your success.

Start your Free Trial with AWeber.


How to build your email list?

Every user who visit your website who buys your stuff or does any activity, serve them opt-in forms in order to collect their email address. But make sure you provide something very effective and helpful information to your visitors. In return for that you can ask for their email address for free information, report or future updates.

Email list is backbone of your Passive Income business.

Recommended Email List Builders:

Optin Skin

“Add gorgeous opt-in forms and social share boxes to your blog in seconds”. OptinSkin enables you to test all elements of your opt-in form.


Change button colours, form text, eBook covers, box colours…you name it. Then, OptinSkin will tell you which one is convincing more of your visitors to give out their email address! Try OptinSkin.

SumoMe: SumoMe provides free tools you need to grow your WordPress site. This plugin will make it easy for your readers to join your email list, share your articles and optimize with analytic.


5. Promote Your Online Business

Now that you have added content into your site you need users to reach you website right? Hence, you need to promote your business online.

Promote Your Online Business

There are multiple ways to do it such as get it indexed in search engines, promote in social media and promote through paid advertising. Getting the exposure you expect needs time and great promotion and optimization.

I urge you to follow 80:20 rule for your online business promotion. Its all about promotion when it comes to online marketing. The rule from Pareto principle can be simply use for your content promotion strategy. Spent your 20% of time, efforts on creating content and 80% on promotion.

Promotion of your online business is the key to get success for Passive Income.

Recommended SEO Tool:

SEO PowerSuit

SEO PowerSuite covers every step of an SEO campaign of any caliber, from rankings to on-page to backlinks. With its intuitive UI and a wealth of pro-level features, it’s a perfect fit for SEO newbies and experts alike.


SEO PowerSuite offers unlimited sites, keywords, and backlinks to track, and a wealth of features you won’t find anywhere else, many of which are available in the free version. The catch? There isn’t any. Because it’s a desktop platform, we don’t have to pay for hundreds of servers to process your data. That’s why SEO PowerSuite is at least 3X cheaper than other SEO tools – and infinitely more flexible and feature-rich. Try SEO PowerSuite.

Buzzstream: BuzzStream is web-based software that helps the world’s best marketers promote their products, services and content to build links, buzz, and brands.

Local SEO:

Do you have local business? You need to focus on the local SEO of your online business.

Recommended Local SEO Tool:

White Spark

Whitespark builds software and provides services to help businesses with local search optimization. We obsess over the tiniest details in order to ensure our users and clients are happy. We’re always striving to iterate and improve on our products and services.

White Spark

Discover where to list your business for better local search rankings. By building citations, you increase your chances of improved rankings. The Local Citation Finder averages 545 citation sources per keyphrase. Each search averages 545 citation sources per keyphrase. Try White Spark for your local business.


6. Build Your Brand

Make sure you have the presence on every platform on which your targeted audience uses to find solutions for their problems. Many times your targeted audience may use multiple platforms. Hence, you need to have your brand presence on the entire platforms that can target your audience.

Build Your Brand

Creating a brand is constant process, it stops when you stop spreading your words to the online world. Branding helps you to create your online reputation and authority. Search engines gives more preference in search engine results for branded websites. Produce citations for the brand name and the links as this raises the Brand value and brand authority. This helps you to boost your Passive Income in a massive way.

Brand builds on high engagement with the users. Since this is the important task you need to ensure that your social media audience get the regular updates.

I recommend to use tools such as Hootsuite and Buffer which helps you to schedule the updates, add comments and engage them with your brand with saving your time to post it on daily basis.


7. Monetize Your Online Business

Once you done with all set up of online business website, You need to optimize it to earn the Passive Income. This is where you need another research to know what monetization type fits into your online business.

Monetize Your Online Business

You can monetize your online business with following passive income ideas:

  1. Sell your own products on your website
  2. Write an eBook and sell
  3. Make YouTube Videos
  4. Put ads on your Blog / Website (Adsense, Infolinks)Try Infolinks
  5. Build Apps
  6. Create or Buy Online Course (Udemy)Udemy
  7. Affiliate Marketing


8. Monitor Your Performance & Alter Accordingly

After monetizing your online business, You need to monitor your performance. There are several factors you need to concern such as bounce rate, time spent on site, page views per visits, returning visits, traffic sources and many other factors.

Monitor Your Performance

In order to track your online business performance you need to install tracking method on to your site. My choice of tracking data is to use Google Analytics. It’s free and gives the various metrics of data. Start monitoring your business data especially the user metrics.

You also need to check your website health and search engine issues. Website health on search engine can be optimize by using Google Search Console. You can keep a track of your website crawl issues, index data, restrictions on crawling and many other search related webmaster activities. Implement, track and monitor and check  the flaws and then repeat the same again until you get the best results out of the process.



You need to work on many combinations and alterations and see what is working for you. Its like a puzzle game, where you find and correct the blocks and complete the puzzle and get the correct picture until the last one is placed correctly. So, the ultimate result is amazing but it needs amazing efforts and hard work. The Passive Income that you expected needs equal work and patience.

I hope you have understand the process and already started implementing. Please add your valuable comment/response to make me understand to add and change anything in this post. Its all about doing the all hard work now and enjoy the benefits later. Let’s have “Passive Income” be a part of your life.


(Disclaimer: Some of the links given in the post contains affiliate links to other sites; this means that if you select to buy the service or product, I will get the commission for it and this commission comes with no extra charge to you anyway. You have to comprehend that I have knowledge with all of these formations, and I endorse them since they are accommodating and valuable, and not because of the few commissions I make if you choose to purchase some service or products. Please do not spend any money on these products and services except you want them or make sense that they will help you accomplish your goals.)

About Darshan Beloshe

Darshan is a SEO professional and blogger. He loves to blog about his experiences of blogging, movies, traveling and updates. Connect with Darshan on Google+

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