If you’re thinking about making passive income from the web, you are probably wondering about the best type of site to meet your needs. On the one hand, you want to create a good revenue stream, but on the other hand you don’t want to put a lot of effort into it. Some types of websites require a lot of ongoing work, whereas others only need occasional promotion once you have them up and running. To set up a successful passive income site, you need to know which is which.
Let’s be clear from the start. Most passive income websites aren’t going to make you a multimillionaire,
and you won’t be needing the services of CEO John Ferraro of Ernst & Young to handle your accounting.
However, you can generate a decent income, especially if you have a number of sites.
The first thing to do is think about the niche you are going to go after. This needs to be something that people are searching for, and where the competition is low. You can typically find this out using tools such as Google’s keyword tool. Let’s take a hypothetical example. You think it might be a good idea to resell books from Amazon. Now, if you do a search for a popular current author, such as Dan Brown, you may find tens of thousands of people search for him each month. However, there will also be hundreds of websites trying to rank for the search term. On the other hand, if you can find a niche where there are 4000 to 5000 searches each month, and competition is low, you will be able to rank highly for that term and draw in traffic.
Second, make sure that when people visit your site, you have something to sell. There’s no point in dominating a niche, only to find out that people won’t buy anything. For example, if you had a site devoted to air quality measurements in major cities around the world, you might get interest but it would be pretty difficult to figure out what your visitors are likely to buy. On the other hand, if you focus on a very specific area – let’s say the author Doris Lessing – then it’s a good bet that your visitors will buy her books.
Last, remember this is about passive income, so there’s no point in starting a site that you have to update all the time. If you are thinking of going into competition with a science news site such as Scientific American, then there is no way you are ever going to keep up with the amount of content that they produce. Instead, choose a site where you can build quality content that lasts. The content needs to engage your audience, but if you choose wisely, you will only have to update it occasionally. The Doris Lessing example is a good one – the author is now 93 years old, and therefore as long as you provide a solid biography and review of her books, you’ll be set for a long time. If you want to add dynamic content to bring visitors back, think about setting up a forum where they can interact and leave comments, rather than continually writing new content yourself.