Selling information products
Some people fantasize about creating passive income by establishing some kind of information product -- an e-book, CD, DVD -- then kicking back while cash from the sales of these products rolls in. It's often touted among Internet marketing gurus as an easy, surefire way to create a passive-income stream. But while information products can eventually yield an excellent income stream, Tresidder notes that it's hardly a passive activity.
"It takes a massive amount of effort to create the product," he says, "And to make good money from it, it has to be great. There's no room for trash out there. It has to be something people are willing to talk about."
Tresidder says to find financial success in selling information products, you must be committed to devoting a great deal of time, energy and money into the project at the outset. You have to build a strong platform, market your products like crazy and plan for serialization.
"One product is not a business unless you get really lucky," says Tresidder. "The best way to sell an existing product is to create more excellent products." But once you master the business model, he adds, you can generate a good income stream.