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Six steps to creating a residual income  online

I've started a new guide for a simple system for generating passive income. The system is based on creating one or more websites with the ultimate goal of selling information products. I thought I'd share the skeleton of the guide before I started writing it.

1. Setting your expectations

• How much time are you able to give?
• Set realistic goals (break even, nice meal, annual family holiday, new car, retire...etc)

2. Decide what your website will be about

• Do you have a particular area of interest or expertise?
• Are there lots of information products available on this subject?
• Sign up with a content management system (preferably one that allows Google AdSense ads)
• Choose and register an appropriate domain name
• Set up email for the domain
• (Optional) Create a holding page

3. Sign up with:

• Google Analytics (so you can see what's happening)
• Google Adsense
• Clickbank
• Twitter
• Feedburner

4. Create your first income generating post:

• Find an information product or range of products that you're interested in promoting
• Post an article using your content management system
• Lace the article with tagged references to your chosen products

5. Establish your website marketing plan

• Create a link-building schedule
• Register with free directories (dmoz.org, etc)
• Include contact options and encourage feedback
• Build credibility

6. Either create a new website on a different topic, or create a new article on your existing website, promoting other products

• At this point, you can either create another post on your chosen subject, or you can create a new website with a different subject focus and start again

I'd estimate that, using this system, you could be earning passive income within two hours. Of course, the income normally starts as a dribble, rather than a torrent - you're not going to become rich overnight, but how much do you want to earn for 2 hours work?! The key is, once that 2 hours work is done it can generate income for the rest of your life (and beyond!). If it only generates $1 a day and you live for another 50 years, you'll make over $18,000...not a bad hourly rate, I'm sure you'll agree.

With the ground-work done, your next article will take even less time to produce and as the volume of your content grows, so does your credibility. Ultimately, you want to build this to the point that you're considered an authority on your chosen subject.

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