How to Make Passive Income Online (3 Legit Models From Someone Who Made $5+ Million Online)

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Today I’m going to show you how to make passive income online. I’ll be showing you 3 different business models that you can choose from to start with so that you can build a business that works for you.

If you’d like to see specific examples from several different businesses that I own, here are 9 ways that I earn passive income online:

With that said, please read on for some really important information about this desire we all have to earn passive income, because there’s a lot of information about it online, and not all of it is true.

There are several different definitions of passive income. I’m aware of the traditional definition, such as earnings derived from a rental property, but there’s a better way that I have years of experience with and have also taught tens of thousands of others to do.

It involves building online businesses that take advantage of systems of automation that allow transactions, cash flow, and growth to happen without requiring a real-time presence.

In other words, we don’t trade time for money. Instead, we invest our time upfront to create assets in the form of an online business that can continually pay us back later.

There are several different ways to achieve this, and the 3 models I share in this video will give you an idea of how you might approach an online business that works for you.

COMMON QUESTION #1: Does generating passive income mean you don’t have to put in any work to earn money?

No. Not at all. Creating various passive income streams takes time and a lot of hard work. It’s about building a real business that solves a problem, and creating systems, or hiring people such that it can be run on auto-pilot.

COMMON QUESTION #2: Can you create a passive income stream that requires zero upkeep or attention that will pay you back forever.

No. All passive income streams, even traditional ones, require some form of upkeep and maintenance. Real estate portfolios and market investments cannot (correction – shouldn’t) be walked away from forever, and neither should any type of online business.

With that said, however, online businesses can be fashioned in a way so that you can walk away from it for a while and it can still continue to run. An online business is a storefront that is open 24 hours a day, 7 days a week (even on holidays), and much more than real estate or market investments, building an online business gives you a lower barrier to entry, as well as a lot more potential upside.

Just think – how much would an extra $1000 per month help you? Imagine how much it would cost to invest to obtain an additional $1k per month in tradition forms of passive income, while building a business online is much more achievable.

Let’s do some math to give you some perspective:

Imagine you sell a $25 product. You only have to sell 40 of them, per month, to earn an additional $1000/month.

Imagine you sell a membership into your program for $25 a month. You only need 40 members to generate an additional $1000/month. But then the next month, you obtain an additional 40 members who also pay you $25/month. Now you’re making $2k per month.

The most important thing, however, is that whatever product or business you create, that it helps solve a problem. All good businesses solve a problem in some way, shape, or form, so make sure you watch the video to learn exactly how you can approach building a business online of your own.

Links mentioned in this video:

SPI Podcast Interview with Brian Casel:

Tools I used to start selling my first product / ebook:

Also watch 3 Passive Income Myths, BUSTED:


Subscribe to this YouTube channel:


Want to learn more about the smart way to make money online and start a successful online passive income business (without ripping people off or being dishonest)? Then make sure to visit the Smart Passive Income getting started page below:

Start Here

Building an email list? Watch my latest video: “How to Get More Email Subscribers (17 Lead Magnet Ideas)”:


Pat Flynn says:

This video is about the business models. If you'd like to see specific examples of different businesses I've created that use these models, here are 9 ways that I earn a passive income online, including income and what's working best:

Terrance Cox says:

I earn good online mining with Jeff Rose, I was skeptical about investing with his miner but it only took a leap of faith and it paid off

Earl Williams says: – Make fast cash online.

Ricky Gardner says:

EP MODEL for sure!

HeavyLiftz Website says:

I started my niche site because of you!

Peter Oscar says:

Your presentation is honest and exclusive. Thanks for sharing. For me, EP is the way going. .

amanda dias says:

Hi I'm from Brazil , i love yrs videos

N L says:

I like the EP model

fe loy says:

hi like, sub,comment, ill do the same…thank u

RobLogFett says:

The EP model in a way I am looking to start a blog related to the financial journey my wife and I have started just a few months ago. (at time of this comment) Really want ot talk about our journey and hopefully help others along the way. an Extra $500 a month would mean more debt paid down, and starting next year when we start saving for a house an even quicker journey to our down payment saved.

Betty Sz says:

Pat, I loved the video, got to learn about you from Michał Szafrański and his podcast. A quick question – I don't quite see a difference between Freelancer to Product model and Expert to Product model in my case, which is teaching English. Any thoughts on that, or it doesn't matter? I desperately want to free some time and be able to earn more with the knowledge and expertise I already have, but the system is that I need to see my students face to face or online, which is still time to money transaction. And you have a given amount of time at your disposal. I have been struggling a bit with figuring out how to do it, that is transferring what I know into a sort of product that can function without me devoting the time all day long . Your video should be helpful to finally work it out, but if you have any ideas to share, I'd love to hear from you. Beata

Darlene Chaney says:

You can now start your own small business by basically searching “fetching mowo press” on Google. Would you like to earn more than 16,000 dollars? You can find all the necessary resources here in this strategy. This strategy is the only one that works out of all the other tactics we have tried out before! Give it a go too!

Brooksie TV says:

one way is using builderall. Add me on facebook

Dion Savage says:

Residual income and passive income is different but unfortunately the word passive is more popular.

SCIPLE Network for Women says:

I've definitely been working away at the EP model

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