advertising for any business is a most, even word of mouth is a form of advertising. Admittedly we do not actively advertise except for word of mouth but we are a private bunch.
Passive Income Stream #1: Website Advertising
This is perhaps the most obvious of all of the passive income streams. It’s a dream for everyone who wants to go pro with their blog; the idea that you can earn a living by blogging is fantastically alluring if you love to blog.
The reality of this passive income stream, though, is that you have to have a successful website before this becomes even remotely possible. There’s a lot of chatter about throwing up quick-and-dirty niche sites, but the earnings with doing that kind of thing is mostly based on doing affiliate advertising, which is the next item on the list. I doubt very much anyone can throw up a niche site, point advertising dollars such as through AdWords to it, and earn enough money off of AdSense or other advertising to pay for even the site and marketing. That’s a waste of time; if you’re going to make money off of straight website advertising you’ll need to invest the year or more necessary to have a popular website.
I could go out to dinner with the earnings of my website advertising from the first two months of life for schemabyte.com, and that’s a raging success. Looking at the November earnings reported by Pat Flynn, you’ll notice a nice $2,600 AdSense earnings on one of his sites. One of his very successful and popular sites. So, it’s certainly possible to have ads be a good chunk of income for you, but it shouldn’t be your only income stream if you really want to be independent.
As a first step, you can just throw AdSense on your site. Once you have been going for a while and if your website is popular, you can then get individual ads from individual companies – and that’ll pay a lot better. Generally speaking, though, many companies won’t consider paying for individual ads on websites that have an Alexa ranking under 100,000. If you’re at the point that you’re ready to get individual advertisers, dailyblogtips.com has some great introductory steps on how to get started.