There are a few different ways to generate a passive income stream on the web. Some are better than others.
Create a Niche Website
You can generate a niche website. This is a website that is focused on a particular niche. It gets ongoing traffic from search engines so you have to 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 internet site in a few ways. You can place advertising on your site where you get paid each time someone click on the advertisement. You can promote 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 produced 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 accomplish this.
You can market a recurring product or service. When someone signs up you get a commission. Every time they pay (be it weekly, monthly or yearly) to utilize the product or service you obtain a commission. This is passive income.
You can make niche internet websites like above to promote affiliate products. Get ranked within search engines and you can create ongoing traffic that will frequently generate you sales and make you a good income.
Email Marketing
Email marketing is by far the most effective way to generate a passive income stream online. 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. Each 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 consequently it operates on 100% autopilot. You can sit back and unwind while your emails sell for you and make you a nice income stream.
In order to do email marketing successfully and actually make money you ought to know precisely what you are doing. Otherwise you will find yourself building a enormous list of email subscribers but you will not make any money.