Passive income is a lucrative way to generate additional income without having to sweat for it. The world has gone digital and the internet offers countless ways to earn money. In this article, we will be discussing 7 proven ways to generate passive income and make money online.

Affiliate Marketing

Affiliate marketing is one of the most popular passive income generation methods. Affiliate marketing is a process wherein you earn commissions for referring people to products and services. All you need to do is find products and services that are related to the niche you are in, get the affiliate link and share it with your audience.

Once you make a sale, you earn a commission. There are websites like Clickbank, Amazon Associates, Commission Junction and Impact Radius that have various products and services that you can promote as an affiliate.


Drop-shipping is a process wherein you partner with a drop-shipping supplier, process the client order, and have the supplier directly ship the item to your customer. With drop-shipping, you don’t have to stock any items or manage any inventory.

All you need to do is find a reliable drop-shipping supplier, set up a website and integrate your payment processor with your website. You can then create the listings for the products and start generating sales.

Create an e-course

Creating an e-course is another great way to generate passive income. An e-course is essentially an online course that is sold as a product. This is an excellent way to monetize your knowledge and teach your audience what you know.

You can create e-courses in any niche and format. You can use videos, audio files, PDFs, webinars and more. You can also include bonuses such as access to private forums and virtual communities, to enhance the value of your e-course.

Create an informational website

Creating an informational website is a great way to generate passive income. An informational website is essentially a website that focuses on providing information about a particular topic.

These sites are great for generating passive income as you can use various methods such as affiliate marketing and Google AdSense to monetize your website. Furthermore, informational websites are great for building authority in your niche and building your brand.

Create a Memberships Club

If you have an existing website or blog, you can create a membership club to generate passive income. A membership club is essentially a closed membership site where members can access exclusive content, services and products.

You can create a monthly membership and charge a recurring fee which would generate you a regular income. Furthermore, you can also provide additional services and products such as one-time services, consulting and coaching which would also provide an additional source of income.

Create a product or service

Creating a product or service is another great way to generate passive income. You can create physical products such as books, ebooks, courses, and more, or you can create digital products such as software, apps and music.

You can also create services such as SEO, web design, and consulting. Once you create your product or service, you can promote it on your website or through other channels such as social media, search engines and email marketing campaigns.

Monetize Your YouTube Channel

Monetizing your YouTube channel is another great way to generate passive income. All you need to do is create great content and upload it to YouTube. You can leverage YouTube’s ad revenue program, which allows you to earn revenue from ads that are displayed on your videos.

You can also monetize your channel by doing product reviews and using affiliate links in the description of your videos. Additionally, you can also use YouTube to direct traffic to your website or blog, to monetize it using various methods such as Google AdSense and affiliate marketing.


Passive income is a lucrative way to generate additional income without having to sweat for it. There are numerous ways to make money online, and the 7 outlined above are some of the most effective ways to do so.

Whether you are looking to generate a steady stream of income or a one-time sum, these 7 proven ways to generate passive income and make money online should help you get started.