4 Ways to Make Passive Income Online to Generate CASH (+ step-by-step tutorials)

Learn my 4 ways to make passive income online, plus get my step-by-step tutorials for each method – beginner friendly!

Get my Free 10k/month ebook: http://wholesaleted.com/4-step OnlineJobsPH: http://wholesaleted.com/go/onlinejobsph

Other videos & ebooks discussed in this video:

* How to Dropship on Aliexpress: https://www.youtube.com/watch?v=2CWrd2gdTIs
* Dropshipping on Amazon vs. your own store: https://www.youtube.com/watch?v=17X6gnJT2II
* The 5-Step Formula for Making 10k/Month Online: http://wholesaleted.com/go/5stepformula
* Amazon FBA Private Labeling guide: https://www.youtube.com/watch?v=6MhEPyWKE-U

When most people discuss ways to make passive income, they usually talking about methods that require large amounts of capital (investing in real estate or investing in the stock market). This is great, but unfortunately, most people don’t have the cash or the capital they need to do this. Which is why I’m going to teach you how to create an online business that generates passive income (which you can then use to reinvest into those methods).

The first of my 4 ways to make passive income online: Dropshipping on Amazon

A quick overview of dropshipping: This is a form of order fulfillment. Instead of purchasing items from your wholesale supplier in-advance in bulk, you purchase each item individually AFTER a customer has ordered it, and ship it directly to them. This means you don’t won’t be stuck with unwanted inventory, making the business relatively risk free.

We have a free ebook: The 4-Step Formula to Earning 10k/Month Online which outlines the step-by-step method you can follow to do this using a tool called SaleHoo (see link at top of video description).

One of the benefits of dropshipping on Amazon.com is that there are millions of visitors daily coming to Amazon’s website, which takes care of the traffic generation for you.

This method requires manual labour, however you can make this passive by hiring a virtual assistant to fulfill and manage these sorts for you. A great place to find a VA is on Online Jobs PH, where you can hire someone who is experienced for $4-5/hour.

The second of my 4 ways to make passive income online: Dropshipping in your own store

This is very similar to the first method, except for this method you create your own online store and dropship in it using Chinese suppliers that you find on a website called Aliexpress instead of using USA-based dropshippers you find using SaleHoo to sell on Amazon.com.

Here are the advantages/disadvantages:

* ADVANTAGE: It requires less start-up money
* DISADVANTAGE: It requires you to create your own store.
* ADVANTAGE: You can eventually sell your store as an asset.
* DISADVANTAGE: It takes longer to setup than the Amazon/SaleHoo method.

If you want to dropship I recommend choosing between one of these two methods and getting started.

The third of my 4 ways to make passive income online: Affiliate marketing

While we don’t teach it on this channel, it is another one of the ways to make passive income online (and something that we do).

Affiliate marketing is when you promote a product (e.g. in this video I used the example of Jungle Scout). The merchant/owner of the product will give you a URL which tracks sales made whenever someone clicks on your URL/link. You will then get a commission cut from the sale.

Combined with search engine traffic, this is a great way to earn passive income online. But be careful to only promote products that you use, know, like and trust.

And the final of my 4 ways to make passive income online: Amazon FBA Private Labeling

The other 3 of my ways to make passive income online can be done with small amounts of start-up money as long as you have access to a credit card. This method however will require at least some startup cash: At minimum you should expect to spend at least $500.

For this business model, you simply find an item with high demand yet low seller competition on Amazon.com (I have a free video tutorial I’ve linked to above in the video description which shows you how to do this using Jungle Scout). You then manufacture the item cheaply in China, and have them place a unique label on it, thereby making it your own (a process called private labeling). You then ship your items into the Amazon FBA warehouse and let them fulfill orders for you.

Because the Amazon FBA warehouses take care of order fulfillment for you, you don’t have to worry about managing orders. This is the secret sauce to making this method passive!

So those are my 4 ways to make passive income online. Using the capital you generate from these businesses, you can then re-invest it into passive income investments like stocks and real estate.


Osaid Az says:

why would you make a video if you are really making 6 figures a year? it doesn’t make any sense ….

antithetical 1 says:

I don’t know how you can smile so much and inform so quickly! Glad to have found such a positive, informative teacher! I am still researching drop shipping to make sure I start off on the right foot (second day into it), I plan on reading your e-book after watching most of your videos and diving into it! I am losing my job due to arthritis problems, but now have something to look forward to, being my own boss! I don’t care if I only make a living wage, it would be worth it to be free of the penny pinching, job slashing corporate model where profits trump people every time. Thank you!

Natalie D says:

Good info To dropship on Amazon don’t you need tracking and send items within 2days so how would it work.

gameview43 says:

so much plug

Suprabhat Chakraborty says:

Happy New year to all.
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JT Edwards says:

Btw she was paid to do this affiliate marketing, #3 tip of the 4.But know that none of these methods nor any she offers are good. If you follow these types of tips step by step you will fail. There are many small details they leave out that are far to vast to share in a simple warning message for viewers, but just know that its not easy, doing their steps wont get you there, &you will invest money & ultimately end up in the negative without knowing or learning the things they never tell you. One to share is drop shipping is absolutely horrible, imagine never being able to check the quality of the product YOU are selling. The seller doesn’t hold the risk, its YOU that sells it so obviously people making these products love it cuz they sell stuff, then don’t have to worry about returns, messed up items, nor do they lose any money on return shipping, YOU do, there is no company that will agree to give you partial or full money back to equal out the loss you will have, & in most cases the reason a company is looking to do dropshipping & have other people sell that particular product, is because its a poor item…that doesn’t sell well already…& they know it gets a below average rating & return rate & complain rate because trust me, they have already tested the market to see if they can sell it themselves, its sucks & now they want you to handle the blowback.She has an incredible likeability which is a very smart marketing strategy….just be watchful of everything & take your time before accepting everything you hear, no matter how friendly the source.

trinistylz2002 says:

This is a good video. I learned a new method that I wasn’t aware of before. Great Job!

Fabi D. says:

Hi Sarah, Great video, Thank you. My private label product sent back to China by customs, i have nothing much to sell on FBA, is it too late to start dropshipping website for Christmas? Why would a customer buy from me dropshipping from Ali Express for Christmas gifts? it takes almost 14 days to arrive to the US!!
I am confused about the shipping part.

GW2 MacKen says:

I love you Sara. I love all Kiwi’s. I love Wholesale Ted. Really, I wait each day for your next upload. You at WT give great advice.

jw gifts & tips says:

wow, fab video! My first exposure to you. What about the option of selling physical products with affiliate marketing? Is that not a viable option? That’s the one I was currently investigating, but I noticed you didn’t say anything on it, so is it a bad idea?

HENRY Thierry says:

thank vers good vidéo, i ve got an account on amazon Europe, but do you think it s OK to open on the other amazon site like canada, use, Japan, at the same time or work site by site.

gomojo107 says:

Those eyebrows are moving.

Travis chua Jing hong says:

but the customer can just perchase from supplier

The Tag Market says:

Sarah, please… watched a few of your videos now – and you make all this sound so easy and exciting. You say say at one point that the dropshopper sells a mug to the reseller for $5, who has sold it for £20 to an online customer “giving you a profit of £15”.

This is patent nonsense. You do not, at any point, mention the COST OF SALE. The reseller has fees to pay – if via a portal like Amazon or eBay, there are their charges, as well as the payment gateway fee. And it is likely the mug got attention because of paid online advetising, so there’s a marketing cost too.

Additionally, if the dropshipper is selling to resellers for $5, then a 4x markup would be highly unusual. Most resellers (all desperately competing for the sale) would advertise far lower prices – and the online customer (knowing that the mug is the same thing – regardless of where it’s purchased) will look for the poor fool who’s selling at the lowest price).

Any business is hard work, and to succeeed takes investment and acumen. A tiny handful of people succeed. Nielsen research back in 2010 showed that roughly 85% of online startup retailers fail in their first year, and of the remaining 15%, about half these fail within 2 years. That means that more than 9 out of 10 online ventures do not make it to year 3.

Dropshipping has had its day for resellers – it’s far too competitive and because most people who try this don’t know the difference between SALES and PROFITS, they have the illusion that if they sell stuff they are “in business”. Warren Buffet has two rules for running a business:-

1. Don’t lose money.
2. Don’t disobey the first rule.

Herbert Einstein says:

Hi i am already on your e-mail list and i cant download it. So how can i get it from your site? thanks in advance

Bryan Gauthier says:

Hi, is dropshipping from ebay to amazon legal if I ask my supplier to put my company name and the client name on the package ?

Magic Monk says:

not only do I love your videos and web wisdom…I think you are seriously cute too!!! 😉 xx <3

Tony Stark says:

Excellent tips Sarah! I tired download the ebook and have e feed my email Addy twice but I don’t recover the email with the ebook. Is there an alternative link?

oncenterline says:

I love your videos and I started up with Commercify when you collaborated with Ricky Mataka. I have used FB ads and have had a ton of traffic, but literally only ONE sale since June 2016 to November 2016. I have not spent much time with developing SEO, but with the customers that have been to my site…I feel like I should have sold more than one item. My prices are on par with other sellers, and sometimes cheaper too. I think maybe my niche is over saturated perhaps? I have no idea, but I am ready to pull the plug. I have listened to others help me with my site and ads too and still no success. Are there any gurus who can look at my site and help me figure out why I am not selling?? Thanks!

Alinah Mokoena says:

Thank for all this information, I have learnt a lot and I will put this information to good use.

Metheus says:

Cold hard liquid cash…

Seven Smalley says:

thank you so much, I really appreciate these videos. makes me more hopeful about life as an 18 year old haha.

madeline vicioso says:

I want to build a website next week with dropshipped items from AliExpress. Can I trust that my customers won’t get an invoice from AliExpress if I specify on the notes that the item is dropshipped and not to include invoice, promotional items etc ??

big white guru says:

you’re so beautiful and smart thanks for the videos

DanieRoseEffect says:

I wish my store could get some traffic 🙁 I opened it with your help , and I am grateful

Ernst Lustig says:

Dropshipping from China takes weeks to reach you customers. Nobody wants to wait for such a long time, therefore you will not have happy customers.
Fast delivery only works when the selling dropshipping company is located in the same country as your customers. As soon as your suppliers are located in the the same market as your customers, your prices usually cannot compete with companies who have the same products in their warehouses. They buy big lots and get much lower prices.

I don’t get it. How should this method work?

Sardonyx says:

You blink too much

Chris_OG says:

how can you trust the virtual assiant

Alexis Sabado says:

I want to try dropshipping business. Is dropshipping a pure autopilot passive income?

oosteveo315 says:

Marry me.

FlatteredGaming says:

what cam you useing? looks pretty good lol

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