My Passive Income Formula That Generates More Than $5,000 a Month on Autopilot

In this post, I’m going to share with you this methodology for making $5,000 and more from the Internet every month. Unlike other Internet marketing formula where you need to do a lot of work every month to make the $5,000, this methodology is passive and simple. And most importantly, it has helped me make over $10,000 back in January 2011 without doing much work for it.

Before I go into the detail of how I do so, you need to understand the basic principle of making money online.

Back in 2007-2008, I was doing Insurance and at the start, I was trained to do street canvassing. If you have no idea what is street canvassing, it means approaching strangers on the street, talking to them, and asking them whether they would like to buy insurance from me.

I was quite an introvert and talking to strangers was not an easy task for me (and this explains why I’m no longer doing insurance =p). But it was then I happened to talk to a guy who was doing road canvassing too and he explains this formula -

“If you want to make someone stop and listen to you, all you need to do is to approach 9 strangers, then one of them would stop and listen to you.”

So true enough, every time I approached 9 persons, usually the 10th person would stop and listen to what I have to say.

In fact, this principle is originated from the law of large number and it remains one of the most important lessons I learn and used to the very day in Internet Marketing.

Law of Large Numbers simply means that as you perform the same experiment over and over again over a large number of experiments, the results of these experiments would be closer to the average.

How does Law of Large Numbers Help You Make Money Online?

This is the most exciting part – and this is how everyone or businesses makes money. For some of my sites, I’ve tested and realized that out of 100 people who visit my site, on average, I will make 1 sale (selling ebook). And each sale would mean around $20-50.

All I need to do is to increase the number of people visiting my site, and I would make more sales.

In order to make $5,000 a month, assuming each sale is $25, I need to make 200 sales. And if you calculate backwards, I’m driving at least 200,000 unique visitors to my websites every month.

Now I know a lot of questions are going through your mind… you may be wondering ‘how am I able to attract so many visitors to my website every month’, ‘how am I going to create an ebook to sell’, ‘what kind of website is that’?

And my formula is going to help you simplified all of these such that you can start making $100 – $200 in a month or 2 and once you know the techniques, you can just repeat and rinse the entire process.

But let’s start with the questions above -

What kind of website is that?

You don’t need a fanciful website, all you need to use is to set up a wordpress blog, and write at least 20-30 articles on it, and you can post articles to it as and when you like it. The entire blog could take around 1 to 3 days to build it, depending how fast and effective you work.

How do you drive visitors to your website?

I simply drive targeted people via Search Engine Optimization. Just simply ranking my website to the 1st page of Google, and people looking for the particular keyword would come to my website easily (I usually aim for the #1 position). Of course not every keyword is easy to rank, and I use Market Samurai to find out the competition. If you target the easier keywords, you can rank in 3-4 weeks time without too much effort.

You need to learn both the onpage SEO and the offpage SEO in order to rank in the Search Engine. Onpage SEO meaning the content, the simple html coding on your blog, as well as the keywords you use in your meta tags (if you need a detail explanation on Onpage SEO, do drop a comment below).

A few of the best tools I’ve used for Offpage SEO (meaning building links back to your website) are
- Unique Article Wizard (UAW)
- BuildMyRank

These 2 basic tools helped to build the base of the basic links to my website and it’s a form of basic foundation for the site. The reason why these tools are useful is because UAW submits your articles to hundreds and thousands of sites.

BuildMyRank allows you to post articles on to their high quality sites and this will help you tremendously in ranking your website to the first position.

How am I going to create an ebook to sell?

Even though I’ve created a few ebooks to sell, most of my income come from selling other people’s products. Basically there are many ebooks and products out there created by people and businesses where they give you huge commissions (more than 50%) to promote for them.

I basically search in Clickbank and look out for high gravity products. This means that there are many affiliates having success promoting the specific product. Clickbank is a payment/affiliate platform that allows you to promote other people’s products.

Your first task of putting up the website is to provide value to your target audience in terms of the information you are providing.

For example, you can see that this article is to teach you about how I make passive income online and if you like it, you will have better positive impression of my website or myself. My objective is to motivate and inspire you to come back to my website for more information.

And that’s what you want to achieve too when you offer information to your readers. We must first provide VALUE to our readers before we can make money. This is one of the golden rules in my business.

After writing articles, putting up videos, providing value on your website, then you would want to apply the SEO strategies to rank your website. And once your website gets traffic, your income would increase gradually.

Go and test this formula so you will know what problems you are facing that stop you from making money. When you are facing these problems, drop a comment below and I’ll do my very best to answer them and help you. I would also like to find out whether if you are motivated to take action immediately. Otherwise, do share this article in Facebook or Twitter.

Tags: Passive Income, seo