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:

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Subscribe to this YouTube channel:

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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:

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Building an email list? Watch my latest video: "How to Get More Email Subscribers (17 Lead Magnet Ideas)":
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    48 Responses to How to Make Passive Income Online (3 Legit Models From Someone Who Made $5+ Million Online)

    1. Adam Richardson February 27, 2018 at 5:06 pm #

      Fist of all, that RANT METER is hilarious. That should be a FBLive/Insta/Snap filter.
      I am building my brand in the EP model.
      Great content as always. Thanks, Pat!!

      • Vawp Lomjg July 23, 2019 at 12:40 pm #

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      • KAUC 50 July 27, 2019 at 6:10 am #

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    2. CoreysCave February 28, 2018 at 12:31 am #

      Another great video. I like how you sell value over getting rich fast! That’s why I was drawn to your podcast, because you are not a sleazy salesman.

      • Grigore Tiberiu August 30, 2018 at 10:55 am #

        This is just superb, I’ve been looking for “businesses that generate passive income” for a while now, and I think this has helped. Have you heard people talk about – Qonmily Passive Formality – (just google it ) ? Ive heard some awesome things about it and my work buddy got great success with it.

      • Kitchen Vlog July 10, 2019 at 8:01 am #

        new supporter of your channel.Stay Connected
        hope back frend.

    3. TruFinancials February 28, 2018 at 7:15 am #

      Love the rant and being upfront with people about the hard work that goes into creating passive income. The EP model is what I’m going towards. Using YouTube as the starting platform and go from there. Great video Pat!

      • Pat Flynn March 5, 2018 at 8:49 am #

        If someone wants the fast, magical way, then they are in the wrong place. The reality is that this stuff is hard. I want people to succeed, and I want to be the one to help them. Thanks for being here!

      • d s July 2, 2018 at 4:10 am #

        Winner of a video, I have been researching “passive income online store” for a while now, and I think this has helped. You ever tried – Qonmily Passive Formality – (Have a quick look on google cant remember the place now ) ? Ive heard some incredible things about it and my m8 got excellent success with it.

      • Pasia john June 16, 2019 at 11:55 am #

        Great info. You guys can also go to *LIVENETJOBS. COM* if you’re trying to make money online. This is what I’ve been doing and I’m happy with my results.

    4. Denise Smith Interior Design February 28, 2018 at 2:33 pm #

      Bloody great video..thank you so much for being so honest..

    5. TheGolden90s March 2, 2018 at 4:33 am #

      $500 a month passively, is 70-80% of my monthly expenses living in Medellin, Colombia

      • Ninja563 November 25, 2018 at 11:53 pm #

        @xtreme6492 Damn I wish

      • Angela S. November 30, 2018 at 12:18 pm #

        @Natalia Igaa The rupiahs value is almost nothing here. Wow. I would be wealthy. $200 USD is about $2,800,000.00 IDR. I think I am gonna go online and so some shopping. I’m sure the shipping is high

      • Σπύρος Γάκος December 15, 2018 at 2:16 pm #

        Selling cocaine or finding escobar’s money

      • Himanshu Solanki April 7, 2019 at 5:34 am #

        Erik Mezmalis please send me the link

      • YTRF BHGT June 19, 2019 at 10:51 am #

        The best site if you’re trying to learn how to build an online business *LIVEONLINEJOB. COM* You can actually build a 6 figure business in 2019 with this

    6. Mitch Allen March 4, 2018 at 12:44 pm #

      EP model. I’m a tech writer and like to create How-To niche blogs on areas that interest me. So it’s a good fit.

      • Ryan Nguyen November 8, 2018 at 8:10 am #

        I want to earn large amount of cash in just a couple hours every day so I tried out using every single method and tactic about it. The good thing is I’ve discovered *4NetJobs. Com* from a good friend. Every single day, my normal earnings is 100 dollars. I recommend you to give it a go too.?

      • MONEY 2015 June 14, 2019 at 6:09 am #

        I personally prefer making money from home thanks to *LIVEONLINEJOB. COM* Their online jobs are really easy and do pay out. Yesterday I made $98.7 and I usually make $150+ per day

    7. Isaiah Campbell March 5, 2018 at 4:02 am #

      I like the idea of putting in hard work now to reap the benefits later. I never really liked the thought of feeling like you are forced to work 40+ hours a week for the rest of your life until you are an elderly person. I’m not averse to hard work at all but I just feel like you also need to enjoy your life and not let work fully define your entire life.

      • Philip Roa June 5, 2019 at 7:14 am #

        Basically it’s about working hard vs. working smart.

      • look look June 16, 2019 at 11:11 am #

        I’m personally using *LIVEONLINEJOB. COM* and it makes me around $300 per day. You can actually Sign Up for there. Thank me later. All you need in this life is ignorance and confidence; then success is sure.

      • UTREW BVGF July 1, 2019 at 12:43 pm #

        A great website for easy ways to make money online is *LIVENETJOBS. COM* you can also sign up. Hope this helps. The fool doth think he is wise, but the wise man knows himself to be a fool.

      • BVGFR BGHF July 4, 2019 at 11:58 am #

        I personally prefer making money from home thanks to *LIVEONLINEJOB. COM* Their online jobs are really easy and do pay out. Yesterday I made $98.7 and I usually make $150+ per day

    8. Positive Investing March 29, 2018 at 4:02 am #

      Great video! Earned a new sub 🙂

      • Pat Flynn March 29, 2018 at 4:03 am #

        Thanks Nicholas!

    9. MoosesWorkshop April 1, 2018 at 12:41 pm #

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

    10. H. F. May 3, 2018 at 3:41 am #

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

      • Sunshyne & Rayne May 24, 2019 at 2:41 pm #

        Ok but how have YOU grown because the point of this video is to help others grow right? I need to see evidence of other’s growth in the comments.

    11. Pat Flynn May 7, 2018 at 8:52 pm #

      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: https://www.youtube.com/watch?v=dhgQc70ZV7Y

      • All NEed 4 U May 1, 2019 at 11:42 am #

        interesting vedio

      • Edgar Arenas May 30, 2019 at 2:32 am #

        Just wonderful, I have been researching “best passive income business opportunities” for a while now, and I think this has helped. Have you ever come across – Qonmily Passive Formality – (do a google search ) ? Ive heard some great things about it and my colleague got amazing results with it.

      • md. mahabur rahman June 16, 2019 at 11:32 am #

        I do worke..link me please

    12. Jose Martinez July 31, 2018 at 8:58 pm #

      Xavi Hernandez really knows how to make money

      • Chris November 25, 2018 at 10:30 pm #

        @Quốc Hùng scam

      • Arif Rahman Hakim December 7, 2018 at 6:11 am #

        LOOL

      • Kitchen Vlog July 10, 2019 at 7:40 am #

        new supporter ………Stay Connected
        hope back frend.

    13. Sushant Aryal October 8, 2018 at 8:53 am #

      The best way to make passive income is to teach others about making passive income

      • Hope Ong'uti May 7, 2019 at 9:34 pm #

        I’m surprised no one caught on the sarcasm or talked about its possible harm. While it is humor, it will scare some people from Pat, those that have not yet heard that he has been and still is doing other passive income businesses of his own, many successful ones and some that failed. Those businesses are the reason for his relevance and authority to teach on the subject; lessons that will of course, justifiably, earn him more passive income.

      • Márcio Branco May 31, 2019 at 12:02 pm #

        I would say, the best way is to SELL a nice but empty dream ! Plp are emotional and will allways love to hear what they want, they will buy it, and life will take care on showing them the hard truth.

      • askchrishetrades July 4, 2019 at 7:56 pm #

        lol

    14. Angelique Roux December 7, 2018 at 6:09 am #

      FP = service-based freelance (to get started) to problem-solving product
      AA = audience & advertising (affiliates, Adsense, sponsorships)
      EP = expert (you can be an expert to someone else who knows just a little less than you do) to product (ebook, online course)

      I’d love to hear Pat talk about print on demand & dropshipping businesses.

      • Steven Clark June 7, 2019 at 10:23 pm #

        I would say there is another type of passive income from passive investments that go for high returns like BetterWayToTrade.com

    15. YeshuaLivesInUandMe April 1, 2019 at 4:34 am #

      Thanks for the info! I’m going to do the Expert module thanks again!

    16. EARN ONLINE FROM 1000 DOLLARS A DAY May 17, 2019 at 10:07 am #

      As always, the video is on top……..

    17. Dylan Chan June 20, 2019 at 4:01 pm #

      What is passive income? 1:16
      1. The FP (Freelance to Product) Model 2:33
      2. The AA (Audience and Advertising) Model 5:31
      3. The EP (Expert to Product) Model 8:06

    18. Anton Rosvall July 26, 2019 at 11:05 pm #

      You sparked the idea. I have made the decision to write a book!

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