There are a few different ways to generate a passive income stream on-line. Some are better than others.
Create a Niche Website
You can create a niche website. This is a web page that is focused on a particular niche. It receives ongoing traffic from search engines so you need to make sure that you are good in Search Engine Optimization. The higher you can rank for your niche search terms the more traffic you will get and the more money you will make.
You can monetize your niche web page in a few ways. You can place advertising on your web page where you get paid whenever you like someone click on the ad. You can advertise and market affiliate products or services and when people sign up you cam make a commission. Or you can sell an e-product (eg. An e-book) that you created yourself. Once your internet site is up and running in addition to ranking well you can enjoy the passive stream of income.
Affiliate Marketing
You can make a passive income stream by affiliate marketing. There are a couple of ways to perform this.
You can market a recurring product or service. When somebody signs up you get a commission. Every time they pay (be it weekly, monthly or yearly) to make use of the product or service you obtain a commission. This is passive income.
You can construct niche websites like above to sell affiliate products. Get ranked in search engines and you can make ongoing traffic that will frequently generate you sales and make you a good income.
Email Marketing
Email marketing is by far the most efficient way to produce a passive income stream on the internet. You get people to sign up for a free e-newsletter that you create plus you write a series of emails that will be sent out to people automatically. Every email consists of marketing and advertising for either your own products as well as services or affiliate products and services.
Emails are sent out automatically and thus it works on 100% autopilot. You can sit back and relax while your emails sell for you and construct you a good income stream.
In order to do email marketing well and actually make money you ought to know precisely what you are doing. Or else you will find yourself building a enormous list of email subscribers but you will not make any money.