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

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:

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


Living Bariatric says:

I’m going with the EP model, thanks for the quick rundown…. the extra cash each month could help with with alternative health treatment that I currently can’t access as well as starting to build an actual savings. Always love your no bs approach Pat.

Based2G says:

I think your one of he only people if not the only guy who tells the truth saying it’s not easy and not fast .. you will always see videos saying make 1,000 a day fast

MoosesWorkshop says:

Will have to check it out. Thank you for the info!

Exclusive For YouTVBD says:

Thanks. But How I can Start? Please give me details on

French Lessons Australia says:

Good video Pat great tips

remarch jamias says:

Well I found free $6135a money making system that is really working for me>>> Try once.

Music Music says:

Hey can you recommend any good developers or website tools to build a killer site for EP model. I am not sure how much experience you had in technology before you started. I do not know website building very well, so asking. BTW great video, deliver was excellent, looking forward to more videos and subcriptions.

SuperJackdaripper says:

Hi pat… Top video, I really appreciate it. Last way is best. God I do want to do this plan. The last 6 years have been so tough, I had to stop working due to an illness and we have been so broke. I have an amazing wife and 3 young girls and I felt so bad not being able to support them. My wife now has a job but because we don’t have any other family here I really need to work from home. I’ve subbed to your channel and I hope so much I can do a fraction as well as you have. God bless you Pat.

Jk Canvas says:

Great video. I like the EP model, just not sure how to get started.

Crypto Academy says:


Best Time to Invest – Today!

Team MOJO Academy says:

What membership wordpress plugin would you recommend? Optimizepress or another one? I trust your recommendation.

Heath Dunn says:

I just want the hover board lol

Gaurav Sharma says:

Society had it before when food was not in processes that are linked to money and manipulated by media. Earth gives food for free, we charge each other for it, while easy, has been manipulated by lobbies.

Nicholas J. Paris says:

Great video! Earned a new sub :-)

Oh-So -Graceful says:

EP model

Sydney D. Levy Jr. says:

Hey Pat, thank you for taking the time out to create a structured video of substance w/ real-life examples. You just gained a subscription from someone who cuts down on his subscriptions every month (not that I have many). I’ve been wondering how to get started with building different streams of passive income based on my knowledge, background, etc, and it never occurred to me that there were actual models to choose from. Much appreciated.

Edgar Cuachin says:

When you choose to use the CB Passive Income license, you will get an exact clone of my proven, successful business with the potential to generate a passive income through it… and we’ll handle absolutely *everything* for you here:

Karol Garley says:

You… Pat Flynn…
Are my go to, not only for passive income, but for everything else you are teaching by sharing your knowledge!!! And to you, I humbly say Thank You!!! ❤

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:

Delores Johnson says:

Hi pat Delores from Detroit ,Mi thanks very helpful information you have a new subscriber.☺ I think the EP Model is for me.

Bryan Harris says:

Great video and great personality.

Matt & Mel Scott says:

an extra $500/month would mean a glimmer of hope to replacing the job and then relaxing for a bit. Unwind from the stress of working a job and not having enough to really LIVE and LOVE life.

Perhaps the EP model makes sense. I’m keen to check out your other vid

Thanks for being open about these, and funny.
COngratulations on all your success btw!

Pedro Alb says:

This is glorious, I been tryin to find out about “create residual income” for a while now, and I think this has helped. You ever tried – Qonmily Passive Formality – (should be on google have a look ) ? Ive heard some amazing things about it and my brother in law got great results with it.

Mayur Ghatkar says:

Excellent information..

Kemmy the Geek says:

Very Good Video!


Thank you for great info.I can make great graphics for youtube channels. Channel art,video intro and outro/animated lower thirds.Can i make money doing that ? says:

Thanks PAT Great as always

This Big House says:

I love that you keep it 100, as our teens would say lol. We just started our channel and definitely going after the EP model. For now, we are just working hard at building that audience :)

MattWithAHat says:

One of the very few videos on Youtube where I actually have to speed down instead of speeding it up 😀
Great content though!

Seelenverheizer says:

well this stuff only works if you have an IT based background or are famous…

Chris Jones says:

The EP Model makes the most sense to me. It allows for the most freedom in your life – I am 59 years old, and heard of you through listening to Gary Vanerchuck’s Audi Book, ‘Crushing It’. Trading Time for Money is quite old..

Eliezer Bautista says:

Bro! You just gave me an Idea. I’m going to read a freaking E-book. It’s the perfect way to be in several places at the same time and sharing the knowledge I get paid for ahhaha. DAMN! THANKS

Djinforetr says:

Thanks a bunch for putting out very informational videos like this. I usually dislike “entrepreneur” types and have hopped from website to website trying to find someone that isn’t just selling you pure lip service. I bet a lot of them are trying to hold back on as much info as possible to try to get you to buy their books, but you can’t tell most times if its that or they dont know what theyre talking about at all. Good job proving to us you’re an “expert” as you phrased it, I think that you that giving your audience stuff like this will earn you more than lose.

Fizza Khan says:

Excuse me

Seelenverheizer says:

how many hours took it to writte that book? and what was the ROI on those workhours?

Sheaffer Select says:

I am glad I came across your video
I have been building passive income streams since high school but this has been a great refresher
I have tried all three the rant was awesome seriousness plus comic the mint in the sofa was priceless

The algorithms changing is a complete bummer when that happens

H. F. says:

This dude is legit. I’ve been following him since 2010. He has grown into a more successful business guy.

Digital Avengers says:

Pat, Amazing work man! Thanks for all that you do! – Jesse

ross chamings says:

EP model makes the most sense for me, Pat!! You know ..I’ve been watching a lot of similar videos on Affiliate Marketing .. and NONE of those made the simple sense that your’s did! Subscribed!

H Pyle says:

Well done video!

aalok srivastava says:

nice video

Passive Income Dude says:

I use some of the already, yt i am using now but the best one for me is kindle publishing! Comes slow but stead building and some day i‘ll live off passive income!

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