5 Ways To Make Passive Income On Your Website

175 responses..

Disclosure: My employer ShoeMoney Media Group INC is co-owner of Auctionads LLC and while not mentioned specifically in the post below I thought it should be disclosed.

This is not the first time I have talked about these different forms of revenue but I always like to revisit the list. This time I also decided to list the pro’s and con’s along with companies who provide the services.

Affiliates -

Positives - Tons of Money, tools to get creative.

Negative - Most people do not trust Affiliate companies to pay out. In a recent poll conducted here of 730 people 58% voted they did not trust their affiliate company. I think this is due to a lack of transparency but I think we will have another poll soon to dive more into this.

Popular Companies: AzoogleAds, Commission Junction, CPA Empire, Max Bounty, XY7, share a sale, performics , linkshare

Skill Level To Implement - High skill required and a lot of imagination . Everyone one of the affiliate marketers I know doing over 1M/year in profit are great programmers and also very creative. To reach the top level of this monetization method you will need to learn how to deal with datafeeds and APIs

Contextual -

Positive - Easy to implement and setup. Cut and paste code.

Negative- Little editorial control for you, money can be hit or miss, hard for a site to start with contextual advertising because users have to leave for you to get paid.

Popular Companies - Google Adsense, Yahoo Publisher Network, Chitika

Skill Level To Implement - A monkey can cut and paste code with contextual advertising where the real sauce is is creative implementation.

Subscription -

Positive - Implementation is pretty easy.

Negative- Takes a while for income to build up. It can take a while to find the right pricepoint and length

Popular Companies - Paypal ccbill

Skill Level To Implement - Medium skill required. Most forums have subscription integration for quick and easy setup.

Direct Ad Sales -

Positive - Highest payouts generally

Negative- You have to deal with people… hunting them down to pay there bills.

Skill Level To Implement - Easy.

Donations

100% profit

none

Skill Level To Implement - Easy.




Related Posts:

  • The Best Thing About Making Passive Income
  • Is your website making what it should be?
  • John Reese Interviews ShoeMoney
  • posted on March 15th, 2007:
    Written By: ShoeMoney

    175 Comments

    @March 15, 2007 9:32 pm
    ALEX Says:

    I like all five, but I’ll stick with Contextual for the time being.

    @October 27, 2007 10:27 am
    Hope Says:

    What is Contextual and how do you make money with it?

    @November 14, 2007 11:57 am

    From WikiPedia (from google) “Contextual advertising is the term applied to advertisements appearing on websites or other media, such as content displayed in mobile phones, where the advertisements are selected and served by automated systems based on the content displayed by the user.” Basically adsense and the like.

     
     
     
    @March 15, 2007 9:35 pm
    Tob Says:

    You didn’t mention NeverBlueAds.com - best affiliate network ever. If you are doing CPA you need to check it out. I neither work for nb nor have I posted an affiliate link. Check it out guys, best support ever - ask for samantha she rocks!

    Tob

    @October 27, 2007 5:30 pm
    ShoeMoney Says:

    thats because in my experience neverblueads sucks balls.

     
     
    @March 15, 2007 9:42 pm
    Googlaxy Says:

    Mistyped URL in Auctionads LLC ;)

     
    @March 15, 2007 9:49 pm
    Jeremy Says:

    Could you discuss your reasoning behind saying affiliate marketing takes a high skill level? Most affiliate programs have copy-and-paste code (ie. Amazon). Does your comment have to do with dealing with the datafeeds and APIS’s? Maybe I’m just missing something.

     
    @March 15, 2007 9:52 pm
    Jeremy Says:

    Maybe I’m ignorant but what is APIS? Did you mean API’s?

     
    @March 15, 2007 9:54 pm
    The Grin Says:

    nice post!
    it can be easy but if you really wanna make money you need to deal with that kind of stuff. think all the comparison price websites for example, they just grab data from other site and use them to make money ;)

     
    @March 15, 2007 9:58 pm
    jared Says:

    So when you show sample landing pages etc (ie like this) is that just using one of the affiliate programs you mentioned or is that more of a “direct” affiliate type implementation?

     
    @March 15, 2007 10:41 pm
    Maki Says:

    I like affiliates and subscription because income can be recurring and you don’t really need a huge amount of traffic to make some decent money.

    To REALLY make money on contextual ads, you need some pretty heavy traffic levels and awesome ad blending.

     
    @March 15, 2007 11:24 pm
    ToddW Says:

    Great advice Jeremy.

     
    @March 15, 2007 11:24 pm
    ToddW Says:

    Why not expirement? You could be earning a lot more and not know baout it ;)

     
    @March 16, 2007 12:08 am

    Nice list, even if it is a bit simplified. I still think that the best thing is to combine them in some way.

    Also, you left out things like textlinkads, or is that included under ad sales?

     
    @March 16, 2007 1:05 am
    Kieron Says:

    “Skill Level To Implement - High skill required and a lot of imagination . Everyone one of the affiliate marketers I know doing over 1M/year in profit are great programmers and also very creative. To reach the top level of this monetization method you will need to learn how to deal with datafeeds and APIS’s”

    Regarding your comments on being a successful Affiliate Marketeer, I have to disagree. I fall well above your 1M a year category and can’t program/code to save my life. I don’t even know what a datafeed is or what to do with it. All of my sites/landing pages can be built (and have been built) by people with design skills only. However I still make a very good living out of AM.

    Yes you need to be creative and imaginative but technical skills? Yes they are undoubtedly useful but essential? No.

    @November 9, 2007 12:37 am
    serge Says:

    thanks, you give me hope…now I just need action.

     
     
    @March 16, 2007 1:11 am

    Contextual and affiliate earnings are still the way to go for smaller sites like me. I guess the rest are not that viable yet till one gets pretty bigger and more popular.

     
    @March 16, 2007 1:12 am

    I guess TLA are somewhere along the lines of Direct Ad Sales.

     
    @March 16, 2007 1:15 am

    I believe in the fact that you have to try out one or more alternative methods to see which works out fine or better for you. Who knows, perhaps a combination of two or more will generate much more income than what you are doing now.

     
    @March 16, 2007 3:28 am
    Bob Says:

    You can find many good programmers for a decent price on freelance sites, great ideas are more important and most important is tons of targeted keyword traffic and that takes work.

     
    @March 16, 2007 3:37 am

    great post here.But i still stay up with contextual ads right now.

     

    [...] ven, og kollega på WebmasterRadio.FM, Shoemoney, skrev i går et godt indlæg med titlen: “5 Ways To Make Passive Income On Your Website“, hvor han opsumerer nogle af de bedste metoder til at tjene penge på dit website uden at du [...]

     
    @March 16, 2007 4:17 am
    mincus Says:

    The negative to donations is that you have to actively “beg” for them. Unlike ads where if you stick them in the right place people click and you earn, donations needs to have a constant reminder. Thats been my experience with them at least. You also have to deal with someone like paypal, which of course, is always fun.

     
    @March 16, 2007 4:25 am
    Daniel Says:

    yeah good point about TLA, yeah I guess they are semi-direct ad sales

     
    @March 16, 2007 6:22 am
    GeorgeB Says:

    “”Popular Companies: AzoogleAds, Commission Junction, CPA Empire, Max Bounty, XY7, share a sale, performix , linkshare”"

    I admire the courage and strength it must have taken to NOT say AuctionAds here :)

     
    @March 16, 2007 6:32 am
    Icheb Says:

    If anything he’d mean APIs.

     
    @March 16, 2007 7:14 am
    Jeremy Says:

    The only reference to APIS I could find anywhere was:

    Advanced Papyrological Information System and
    Advance Passenger Information System

    I can handle working with API’s :-)

     
    @March 16, 2007 8:13 am
    geegel Says:

    Contextual advertising is way overrated. Point 5 deserves more attention, especially if you are a blogger. It’s not exactly passive income, but again bloggers aren’t supposed to be passive to begin with.

    Regards, George

     
    @March 16, 2007 8:15 am
    suttree Says:

    yes, i agree traffic is the first factor, then earning from that is second. you can convert most with good placement.

    PPC is the difficult area, as well as SEO as most SEO is really about age and links.

     
    @March 16, 2007 8:23 am
    jim Says:

    I think it would be helpful if you put like 1-10 rating scales on those so that the comparison is a little less qualitative for those who don’t have much experience in it. For example, I’d say affiliate has the potential to be 10 compared to contextual which has a potential to be like a 5.

     
    @March 16, 2007 8:24 am
    jim Says:

    It also depends on the site, if you’re doing gadget reviews I doubt a donation button would work. It requires loyal readership that care about you, not SERP traffic that is just popping in and out.

     
    @March 16, 2007 8:25 am
    jim Says:

    Trying new things is what it’s all about, you can do it without risking too much other than your time - that’s what makes this industry so incredible. It’s not like you have to drop thousands on inventory to see if it’ll work. :)

     
    @March 16, 2007 8:26 am
    jim Says:

    Hmmm I’ve never heard of them before, anyone else have experience with them? What are some of the reasons why they’re the best besides Samantha?

     
    @March 16, 2007 8:26 am

    [...] was just reading ShoeMoney’s blog today, and came across this post outlining 5 ways to make passive income on your website. An interesting read and definitely something any new blogger should take a look [...]

     
    @March 16, 2007 8:29 am

    [...] Money on 5 Ways to Make Passive Income on Your Website. Jeremy is the man when it comes to blogging and has funded some sweet startups. Sphere It (No [...]

     
    @March 16, 2007 8:31 am
    jim Says:

    I think that he meant that in order to do well in affiliate marketing, you need to be imaginative and hard working. Anyone can throw up an affiliate ad but you have to position it correctly in order to increase its profitability.

     
    @March 16, 2007 8:33 am
    jim Says:

    You can probably revise Shoe’s statement to be “are great programmers or can manage great programmers”, but great programmers are still in the equation either way.

     
    @March 16, 2007 8:34 am
    jim Says:

    50% of the pluses, 0% of the minuses, it’s nice not having to track people down for payment.

     
    @March 16, 2007 8:38 am
    Kieron Says:

    Well I don’t use or manage any programmers whatsoever so no, I don’t think they are “essential” to the equation.

     
    @March 16, 2007 8:39 am
    Jeremy Says:

    I figured API’s. APIS is something totally different, not related to computers or the internet. I can handle API’s, just not APIS.

     
    @March 16, 2007 8:39 am

    Very true. Just need some patience to work through the different options.

     
    @March 16, 2007 8:41 am

    Are they a new group/company?

     
    @March 16, 2007 8:43 am

    Jeremy, the disclosure up top was a smart addition. Otherwise I’d have expected to see lots of questions about that.

     
    @March 16, 2007 9:08 am

    While i focus more on CPA. I personnally feel for diversification reason you should be experimenting with them all!

     
    @March 16, 2007 9:14 am
    Teddy Says:

    Jeremy its not “API’s” it is “APIs” as Icheb noted. You are trying (and failing) to go for a plural, not a possessive.

     
    @March 16, 2007 9:49 am
    John Smith Says:

    I thought of that line regarding contextual ads: people has to leave for you to get payed. true, true, true, I have thought about this thing often! That is why I personally think that it is difficult to make a name for a site is the main revenue stream is contextual ads. Normally you have to keep people on your site as much as possible, then you can make your site stand out of the crowd. While with contextual ads, you just pray for them to…leave your site (ok, through ad click, but it is the same, in a way). That is why here I think that unique visitors are very important, returning visitors learn how to avoid ads.

     
    @March 16, 2007 9:54 am
    Jeremy Says:

    Excuse me. I didn’t know this forum was for fixing critiquing my English. I’m glad I now know, but was it really necessary to point out my ignorance on this matter for all the world to see?

     
    @March 16, 2007 9:55 am
    Jeremy Says:

    And yes, I typed fixing and critiquing one after another on purpose. Not really.

     
    @March 16, 2007 10:17 am

    You might be surprised at how well a mixture of contextual and affiliate ads performs

     
    @March 16, 2007 10:18 am
    Jonathan (Trust) Says:

    On your list above it’s Performics not Performix which goes to some software company.

    Chitika is not contextual, I believe it started that way but changed models in order to be on the same pages as Adsense, YPN etc.

    “Most people do not trust Affiliate companies to pay out.”

    As far as that, I’ve never had a problem getting paid 99% of the time. As far as the trust factor, it seemed the majority of the participants in the survey did offer/lead type stuff for CPA networks, then I could understand the whole lack of trust issue. There can be fraud lots of places moreso when doing lead type stuff. Also sometimes when first starting out when you have little traffic and might get a sale here and there, that thought someone is skimming you somehow might creep in. If you progress and start getting lots of traffic and sales on the hour you’ll find most stuff tracks just fine and pays just fine. There’s always a few bad apples out there but I think most merchants want to track and pay because doing so grows their program, if you try to screw someone over, sooner or later someone will find out and that can kill your program.

     
    @March 16, 2007 11:23 am
    jim Says:

    I’m surprised Teddy hadn’t correct Shoe’s grammar (or spelling) in the past because, let’s be honest, it’s the delivery and not the message that’s important here. Please take note of the sarcasm. :)

     
    @March 16, 2007 11:24 am
    jim Says:

    Who built: “All of my sites/landing pages can be built (and have been built) by people with design skills only.”?

     
    @March 16, 2007 11:32 am
    noseoguru Says:

    I prefer a combination of AdSense (or AdBrite), TLA and now AuctionAds. The three together, if you have enough enough traffic and basically clicks to distribute, can be a killer combination for making money.

    Great post, btw!

     
    @March 16, 2007 11:49 am
    ToddW Says:

    You were the one asking about APIS or API’s so I think it was only fair that someone pointed it out to help explain what you asked…

     
    @March 16, 2007 11:51 am
    ToddW Says:

     
    @March 16, 2007 12:00 pm
    John Says:

    This may be old news, but has anyone else seen the new google logo on their adsense ads. This is the first time I have seen it.

     
    @March 16, 2007 12:09 pm
    MM Says:

    Anyone can answer this:

    What programing languages should we get good at for affiliate marketing? php and what else? Do you suggest we take a class at the local community college to get started with the basics? Or are there any really good free websites/tutorials online that can teach absolute beginners? Or even any good books for beginners? How did you learn?

     
    @March 16, 2007 12:16 pm

    I agree as well. A mixture of a few sources and playing around with them till you maximize the monetary earnings from them is the way to go.

     
    @March 16, 2007 12:24 pm

    Very true, that’s what I look for, the returning visitor ratio.

     
    @March 16, 2007 12:25 pm

    Never heard of them either, if they were so good I’d think the community would be buzzing about them.

     

    [...] 5 Ways To Make Passive Income On Your Website - Shoemoney tells all of you how to make some passive money off of your website. [...]

     
    @March 16, 2007 1:56 pm

    Great breakdown on methods to profit. Currently, contextual pays out the best. Since my article directory got a PR4 in the last update, I can look into selling ads directly.

     
    @March 16, 2007 1:56 pm
    Tob Says:

    They are very good for personal support / advice. I call my affiliate manager and get ideas for new campaigns, as well as sort out any issues easily. They have lots of available campaigns, and tons of potential for an affiliate marketer.

     
    @March 16, 2007 2:47 pm

    I’ve been using all of these except subcription, and hopefully I can start doing something with that soon. You are right, these are all methods that you really don’t have to be actively working on to still receive income. Good post shoe.

     
    @March 16, 2007 2:50 pm
    Kieron Says:

    I didn’t understand your last comment Jim. All of my websites were built be web designers. None of who are programmers, none of who know what an API or datafeed is. And nor do I.

     
    @March 16, 2007 3:05 pm
    Lee Says:

    Contextual is a good way to monetize, but it doesn’t always pay the best.

    I’d imagine people have different results with different methods, so I think it’s fair to say there is no “best” way to monetize a website.

     

    [...] ha publicado hoy día un interesante artículo sobre como generar ingresos pasivos en una web. Es decir ingresos por publicidad y no servicios o [...]

     
    @March 16, 2007 4:56 pm
    jim Says:

    I think that PHP is sufficient, many people have talked at length about the power of the whole LAMP stack. I think imagination is more important but having a solid idea of what’s programmatically possible is important too.

     
    @March 16, 2007 5:45 pm
    Maki Says:

    On the contrary, I think contextual is horrible for small sites with little traffic. Subscriptions will work if you have valuable content but a slow growing reach.

     
    @March 16, 2007 5:46 pm
    Maki Says:

    TLA has an affiliate program though.. $25 for every new signup.

     
    @March 16, 2007 6:25 pm
    dillsmack Says:

    Just work your ass off and quit looking for someone to hold your hand.

    Nevermind, you already don’t have the right attitude.

     
    @March 16, 2007 7:42 pm

    Right now, my daily volume is my biggest challenge. I receive hundreds of unique visitors, not thousands. Once my volume increases, I can look into other types of revenue.

     
    @March 16, 2007 11:05 pm
    esofthub Says:

    Frankly speaking, I don’t trust affiliates either. I was surprised to see how many others don’t either. Paradoxically, I was also surprised to see that it has such a high monetization potential…

     
    @March 17, 2007 8:36 am
    jim Says:

    Oh I misunderstood, i thought you meant that you had software that built sites for you and so I was wondering who built the software (errr programmers). I just misunderstood your initial comment, that’s all. Cheers

     
    @March 17, 2007 1:58 pm

    I think it’s time for us to start pushing affiliates a little more. Hopefully I will be surprised.

     
    @March 17, 2007 2:00 pm

    Yeah, donations are funny. Unless the site is providing something, like a plugin or app, I don’t do the donates. I’d rather go through the ads and donate indirectly!

     
    @March 17, 2007 3:35 pm

    [...] has a very simple post about 5 ways to earn passive income online.  It may cover nothing you don’t already know, but it’s still a good, straightforward [...]

     
    @March 17, 2007 7:25 pm
    Nadeem Says:

    Good blog post. I think the best option, once your blog gets to a certain size, is to try to attract specific advertising from people in your industry.

     
    @March 18, 2007 4:04 am

    i was out for vacations and see this great post today …
    It is verywell written.

    Affiliates marketing is real tough you need alot of skills as per your saying. but what i think along with skills you should need the right visitors that convert. Entertainment sites (Offering Free servies) for my experience are the poor Converting medium.

    Finding right customer at the right time is what i think the key to affiliates marketing. I am learning and hope to come up with some solution that help me to build some good income with affilaties.

    Other source of incomes you mentioned are just a juice that many people will take if you have designed a good bar.

     
    @March 18, 2007 2:16 pm
    ToddW Says:

    I agree. I use http://www.adpeeps.com to expirement wtih dif. offers to find out which convert the best.

    It also works good for testing different ads.

     
    @March 18, 2007 2:17 pm
    ToddW Says:

    Or just have an insane # of unique visits a day ;)

     
    @March 18, 2007 2:19 pm
    ToddW Says:

    Yeah, a lot of people I know make some GOOOD money through TLA.

     
    @March 18, 2007 2:21 pm
    ToddW Says:

    Becareful some are just out there to take your ideas.

     
    @March 18, 2007 2:24 pm
    ToddW Says:

    I don’t think were talking about monetizing blogs specifically more “websites” in general. But yeah, specific advertisers for a blog or ANY site normally pay better than anything.

     
    @March 18, 2007 8:34 pm

    3 of 5 for me. I’ve never done subscriptions, and never asked for a donation.

     
    @March 18, 2007 8:36 pm

    By the way, I’m not sure that these are all totally passive, as you still have to produce enough content, or run enough PPC campaigns to keep traffic levels up. But when the ‘work’ is fun, then you’re hardly working at all.

     
    @March 18, 2007 9:52 pm
    Abdul Says:

    How about paid to review sites like payperpost, sponsoredreviews, etc? They are offering oppurtunites in the range of 10-1000$ for bloggers.

     
    @March 19, 2007 1:08 am
    geegel Says:

    You also need a good product to promote to begin with

     
    @March 19, 2007 1:11 am
    geegel Says:

    You summarized quite well the downside of contextual ads. I keep promising myself to ditch those AdSense ads, but somehow I can’t let go of the 10 cents I make daily :)

     
    @March 19, 2007 1:19 am
    geegel Says:

    To skip the API part and actually answer your question, affiliate programs give you much more freedom to tinker with the look, and you can use them in just about any way imaginable. If you throw in stuff like link cloaking and the expertise required to find the products suited to your website you will soon see that this domain is quite complex

     

    [...] (e ironico) ShoeMoney.com ha un articolo che illustra i cinque sistemi per guadagnare soldi tramite un sito web descrivendone i pregi e i [...]

     
    @March 19, 2007 4:53 pm
    Jeremy Says:

    Thanks geegel. I appreciate finally getting the response I was looking for.

     
    @March 20, 2007 5:52 am
    Kn10 Says:

    Donations CAN bring in a decent amount of income. I have some busy forums that have a simple paypal button which has brought in a few thousand dollars. Not too bad for doing nothing.

     
    @March 20, 2007 9:12 am
    Kn10 Says:

    Yeah. I have. They’ve been doing alot of different things lately. Sometimes they put a Google logo up. Sometimes they make the entire ads in italics. Some links have a shopping cart next to them (which I think means that site uses Google checkout?). I think they are just testing the waters to see what works best.

     
    @March 20, 2007 10:32 am

    Great post — I think it’s a very accurate breakdown of different online marketing ventures. Specifically key here is the fact that affiliate marketing has a HIGH level of difficulty to successfully implement on a large scale. There is a lot of web rhetoric that seems to indicate that it is absurdly easy, which makes me laugh each and every time I hear it.

     
    @March 20, 2007 11:56 am
    androo Says:

    nice topic to discuss! very informative :)

     
    @March 20, 2007 12:45 pm

    I would have to think donations would have a downfall of not being to profitale.

     
    @March 20, 2007 4:51 pm
    serge Says:

    WOW, this is great. I can’t believe I have not started sooner with making money on line with website advertising. I wonder what makes more money, advertising or having a site that sells a product and or service?

     
    @March 20, 2007 7:50 pm

    Do donations really pull in any profits? I guess if you have tons of traffic the numbers just work out, but it doesn’t seem like too many people would pay when they don’t absolutely have to, unless its for a good cause.

     
    @March 20, 2007 11:48 pm

    [...] Passive income tips [ShoeMoney] [...]

     
    @March 21, 2007 10:47 pm

    All good information to know; thanks for putting it all in once place Jeremy. I will definitely be experimenting with these various methods on my site.