Growing Your Business through Online Marketing and Passive Income


Hi! I’m Derek Bingham

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I’m called the Passivepreneur because I enjoy helping entrepreneurs make money online without having to work 50 – 70 hours a week for the rest of their lives. The best way I know to do that is to work hard now to build a smart business strategy that generates income later that doesn’t require as much direct involvement.

That’s called Passive Income. Although definitions vary, for me, Passive Income is building online businesses that take advantage of internet access, systems automation and growth through quality products and services to generate income on a regular basis without requiring a lot of effort to maintain it. I created this website to show you how passive income works so you can begin to apply it to your own business so you can use online marketing techniques and passive income strategies for growth and on-going financial income without killing yourself in the process.

You know what I mean by passive income. Some examples outside the internet include rental property, royalties on an invention or creative work and investments. In each case, you used the work you do as needed to create or maintain a product or service but also generated income at times where you did absolutely nothing but cash the check.

Doing all the work yourself is a grueling strategy that can limit your income. Consider doctors. They make a great income. But if they want to continue making that same income they have to work the same number of hours at the same pay rate. They can raise their rates and make more money that way but their income still depends on them actually seeing patients. That can provide a great life, but only if you really enjoy your chosen career and can earn enough to invest and collect passive income through wise investments.

Entrepreneurs who create a business model solely based on doing the work themselves are just as financially hemmed in as doctors. There’s always a limit to how much they can earn because there’s only so many hours in a day. More importantly, if, heaven forbid, something happens and they can’t work for some reason, the income stops altogether. When income stops that not only affects current earnings but in many cases long-term earnings as customers seek alternative sources for your products and services. It doesn’t matter whether your business is very profitable or just marginally so, to make significant income gains, somehow you have to learn to earn more by working less.

But you may think that if I make a lot of money you can simply invest the surplus and live off that in retirement. Keep in mind that, to generate $1,000 a month in retirement income from a portfolio, you’d have to have $250,000 in your account, assuming a 5% withdrawal rate.

Passive income, on the other hand, doesn’t require your direct involvement, at least not to the same extent. Passive income doesn’t mean one-time lump sum payments such as an inheritance or the sale of an asset like your home or some stock you own. Passive income is a source of income with some sense of continuation over time. It provides the ability to continue to earn income when other work has stopped.

What passive income ISN’T:

It ISN’T easy. Don’t get me wrong eventually pays off but it doesn’t mean no work is required. Some people are looking for a get rich quick strategy without doing any work or providing any meaningful value for others. Sometimes that can work. There are always opportunities to find holes in the marketplace where people can jump in and just take money. By creating websites that focus only on SEO strategies and creating an avenue for advertisers without having a legitimate business or solid content to share, online marketing is only a sham and quite frankly search engines are finding ways to keep these types of hollow businesses with their get rich quick schemes off the internet streets. Nothing in life is easy and making money online is no exception.

Trying to sell information products is a great example. While information products can eventually yield an excellent income stream, it’s hardly a passive activity. It takes a lot of work up front to create the product in the first place. And the product has to be great, especially if you are participating in a wide field with lots of competitors. Success takes a great deal of time, energy and money and generally means you will need multiple lines of linked products. You have to build a strong platform and market like crazy and plan for a continuous stream of new products to continue to generate excitement and income.

It ISN’T going to happen overnight. Getting to the point that you start making reasonable income online takes time, even a year or so. It lets you build a future where you can breathe easier. Even when using affiliate marketing strategies, you have to build traffic to come to your site. But that’s not all. Site visitors have to click on the ads and actually make a purchase before the ad generates any income. Even after you’ve gained a steady following, for best results, you will still need to write content that draws attention to the product and link. Make sure it’s a product you truly believe in and has high quality or you will lose credibility in the process. It can be worth it in the end but it does take time.

It ISN’T an escape. If your motivation for passive income is to get out of a career you hate, you’ll most likely fail. Passive income works best when you expand what you’re already doing. First find work you enjoy and generate active income from that. Then passive income becomes the way to serve more people and extend the value you’re already providing. Otherwise you’ll surely sabotage your results before you get very far.

It ISN’T truly passive. Your involvement can vary depending on your business strategy. Some income streams are very passive where you create a product and then essentially sit back and collect royalties or revenues – like from the sale of a book. Other income is semi-passive where you need to work to maintain income. For instance, rental property is passive in that you collect rent without necessarily doing anything out of the ordinary, but there are times maintenance is needed or you need to find new tenants.

It ISN’Tpassive for everyone. Passive income also doesn’t mean it’s passive for everyone. You may hire or contract with other people to do the work. You may outsource it. Or you may use well-placed and well-designed technology to offload the work.The idea is that the income is passive to you.

What Is The Passive Podcast Overall Goal?

My goal is to help clients create passive income in a way that generates satisfaction for them and good value for others – the work of true entrepreneurs. That strategy is not only more honest but is more sustainable in the long run and utilizes the internet in ways it was intended.

My goal is to help my clients build viable, value-added businesses and not just setting up SEO-driven websites with ads. SEO is important but only when there’s a solid product to sell and SEO strategies can be focused on targeted audiences in niche markets who are ready and pre-selected to buy because they already have an interest.

I encourage my clients to create a value stream first. Then when there’s a solid business in place they can take the steps to expand it. Otherwise they are simply taking shots in the dark. It’s like shooting arrows blindfolded and then looking to see if they hit a target. Your attempt is only a guess.


Start simple with something that can provide passive value for others. Put it out there for free. In fact, put your best stuff out there for free. Be bold. If you don’t show the best you can do they will assume your lessor work is the quality of all your work. That will also give you a chance to get feedback about its appeal. Then Passive Income will become a reality as you reach out to more people.

Types of Passive Income

In considering how to expand your business there are several strategies to consider. Here are two basic types of passive income that may give you some ideas – residual and leveraged.

Residual income is generated over time from work that was done once. Some examples include:

  • Royalties generated from a book, eBook or online training.
  • Commissions generated each year for an insurance agent or salesperson when a customer renews his policy
  • Sales income from product re-orders each month
  • Book sales at the back of the room for a consultant during a workshop
  • Photos made available through a stock clearinghouse by a photographer who gets paid a royalty whenever someone buys one
  • Newly hired personnel who off-load some of the work of the business owner


Leveraged income leverages the work of others to create income for you. Some examples of leveraged income include:

  • Selling an eBook through affiliates who promote the product
  • Making a profit using the work of sub-contractors
  • Setting up franchises for your business model to sell to other entrepreneurs
  • Selling advertising spots on your popular website
  • Working with affiliate partners for referrals

Although not exactly the same, income is also leveraged when a one-time event generates multiple incomes such as when conducting a seminar or class, a conference or convention, concerts and parties.


Once you’ve set your passive income goal, there are three basic considerations in creating an income generating strategy:

1. Value creation – When you work for an employer, either as an employee or contractor, you do a job or project once and that result belongs to the employer. With a passive income strategy you have to develop a way to get paid multiple times, once for each delivery to several “employers.” Oftentimes for an employer, upper management defines the product they want and may even define its parameters. In value creation, you must identify a need that many employers have and then create a product that fills that need. Whether a product or a service, if there isn’t a need, you don’t have a business.

  • Effective delivery methods – When working for an employer you simply hand over the final product once, usually directly. Since the passive income method requires you to be able to process product deliveries over and over again, you need a passive way (without your direct personal effort) to respond to inquiries and to ship or deliver products once they are purchased. This involves setting up online systems to send information automatically. Think of the work you do right now. How can you deliver it to more people? How can you do work for one company that can be duplicated for many others? To become a Passivepreneur, begin to question the wisdom of running a business that sells to only one customer. How can you sell to many more customers? If one customer is willing to pay for that service, chances are there are others out there who would pay for those services as well if you can figure out how to duplicate them.
  • Payment Mindset Change – Passive income earners are constantly looking for who to put more value into the hands of more people. When they are delivering value, customers reward them by giving streams of income even when they aren’t working. Many employers get this wrong. They equate hard work with results and often focus on tasks rather than value. Entrepreneurs can’t be like that. Your potential customers don’t care how hard you work. They actually don’t care how creative you are. They just want to know how what you do or are selling will help them. They don’t pay your for your long days, your ideas, your hard work, your pleasant personality, your sincerity, or your value as a human being.

Marketing your Products and Services

Once you’ve settled on your passive income strategy and are confident you have a value-driven product or service to offer the world, you need to sell, sell, sell. There are countless books you can read and training programs you can participate in to learn to do that. Here’s an outline of the elements required for creating a marketing plan:

1. Create a sales plan – start small and create a timeline for taking your product to national distribution. Include sales goals that are specific and measurable, based on the nature of your product and broken down into manageable parts.

2. Determine your tactics – how you plan to make the sale. Consider a variety of different activities to reach a wider audience or simply focus on the internet, depending on your product. Keep in mind there are a variety of sales channels.

3. Identify target accounts – how much do you want to sell in each account.

4. Create timelines – Put them down but keep them fluid. Your timelines can tell you if you are underachieving and help you define corrective steps.

5. Build your market – As I said earlier, begin by selling directly to end-users. This will give confidence there’s a demand for your product and will create references.

6. Expand to new markets – Build slowly, starting with smaller markets before trying to expand to the big guys. Be prepared with a presentation and professional-looking sell sheets. Know your target. Be patient.

Advertising with AdSense

By maximizing your SEO through the effective use of keywords and optimization strategies, as you are growing your online business, the effective and wise use of online advertising can help bring in some income while you are establishing your own income streams. Google’s AdSense can be a flexible, hassle-free, and cost-effective way to connect website publishers with advertisers in related businesses without having to spend a lot of time maintaining individual relationships. With access to more advertisers, that means more competition for your ad spaces, more relevant ads and ads for all your online content.

You have the ability to choose how and where your ads are displayed on your site so you can be true to your brand and ensure site visitors and users have a positive experience. The highest paying ads are selected by auction. You can even block ads you don’t want to appear.

You will receive detailed reports about the ad usage and how hard the ads are working for you. You will be able to see what works and what doesn’t and make appropriate adjustments to improve success.

Would you like to learn more about how other successful entrepreneurs and I personally earn passive income online? Then listen to The Passive Podcast weekly shows as I interview the very best entrepreneurs in the world!

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