Decide what you want to do with your web business. Do you want to sell a product that you have created? Do you want to provide tips and advice about a hobby or passion you love? Do you want to be an affiliate marketer and sell other people's product?
Traffic to your web page or affiliate links is your lifeblood for making money online. If you constantly have to buy traffic, once the money stops flowing so will the traffic. If you learn how to build a web site that obtains free traffic you will truly have built a passive income business.
The important part of building a residual income lies in advertising and promotion. If people aren't aware of the web site, product or service, there's no traffic to click on ads and make purchases to earn the income. Each day, spend time marketing and promoting the sites where residual income will come from. There are a variety of methods to accomplish this, including:
Write the content for the web site or blog and articles with the search engines in mind. Use keyword research tools to find commonly searched phrases related to the product or service you are promoting, or the article topic you are writing about. Using these phrases sparsely throughout the content in a natural manner will do wonders in helping the site move through the ranks, earning free traffic.
Choose a few social networks such as FACE book and Twitter to become active on. Offer links to sites, blogs and articles throughout the profile, encouraging people to click and read. Simply promoting will not encourage people to click the links, so getting to know people is a very important aspect. Submit articles to various social bookmarking web sites such as Digg and Reddit, for another boost in traffic. Take time to promote other material in addition to your own, for more effectiveness.
Find others who are trying to earn income on the web to exchange links with, and consider using paid advertising online and in local newspapers to get additional traffic and increase awareness.
When promoting material, make sure analytics are available for the web site so you can see traffic volumes and where they are coming from. Pay attention to trends. Are people leaving the site as quickly as they find it? How many people are making purchases? Use this data to improve your advertising techniques and web site content. The return on investment will likely be indicative of the effort, meaning the more time spent on building the passive income, the more income there will be. Be patient and consistent to build strong residual income.
