Passive income can be generated by providing information about a subject that is in demand. The Internet is a cost effective way to get your information in front of someone who is looking for your information. Building websites that generate free traffic from the search engines has proven to be the best way to make money online.

Once you have built a website that generates traffic, you can turn your traffic into passive income. Affiliate programs and Google Ad Sense are a killer combination. Affiliate programs are a great way to make money selling products or services, without having to purchase, store, or ship anything. When you sign up with a company, you become an affiliate (a middle man). You just recommend a product or service. The company does all the selling. You are providing "free advertising" for the company you are promoting. It's a win - win situation. You are a problem solver and a middle man. You provide the information that people are looking for.

Part of providing information includes offering a solution to a problem. The solution can be a product or a service. Products are a one time sale, and services offer residual income. Both are passive. Service affiliate programs are the most for the buck; because you can receive commissions as long your customer continues the service. So, while it would be in your best interest to promote programs that offer a service, do not overlook the potential for one time sales.

One time sales of products that offer solutions is a huge market. Click Bank, Commission Junction and Amazon offer tens of thousands of affiliate opportunities for every subject imaginable. All are free to join. Regardless of a website theme, there is an affiliate program for you.

Whoever is responsible for creating Google Ad Sense is a genius. A person could make a living providing ad space to a specific and targeted group. Regardless of your website theme if you can create traffic you can make money with Google Ad Sense. There are some cases where you might find that participating in this program would do more harm than good.

For example, if ads becomes a distraction to the message that you are trying to get across. Or if you find that the message that you are sending never gets through because the ads are pulling people away. You certainly don't want to lose out on a bigger sale. The one you were hoping for and would have gotten if you hadn't lost them to some other sales pitch. So, while this can be a win-win-win be careful and don't over do it.

In conclusion, building websites that provide real information that is in demand can create passive income. This can be done in your spare time, and can not be taken away by some boss, who does not like your attitude. You do not need a degree in anything. All you need is a desire to make money online.