How Most Successful Home Based Small Businesses Make Money Residually

by J.Crawford on May 13, 2010


In this post I talk about how most successful small businesses that are home based and operate online make money and how they create truly passive income streams over time.  There are many ways you can make money with your home business but chances are you only focus on one, and most successful home business owners don’t.  Part of making the most money with your small business is to create other revenue streams that piggy back current ones.  One of the foundational principles of marketing is that your current customers are your best marketers and the Internet really lets smart entrepreneurs take advantage of this.

Residual income can be a fickle thing and many times what one person calls residual income is what another guy calls a job.  True residual income is passive in sense that you don’t have to preform an action to get paid.  I’m not at the stage where I look to create passive income exclusively but that doesn’t mean I can’t engage in monetization methods that result in passive income over time.  Network marketing is one of the best business ideas to help illustrate this idea.  If you join a network marketing company and go look in your mail box you’ll find it’s no different than before you joined, it will be the same next month too because passive income doesn’t just show up.  The best way to create passive income in your home business is the same way it’s done in network marketing, you build pipelines through which goods and services flow in one form or another and work on a system and in a systems that automates this over time.

Systems are usually quite simple and they are a crucial part of a good home based business idea, without systems you just have a labor intensive job that you own, also referred to as self employment.  Systems in network marketing take the form of training other entrepreneurs how to build a successful business up front and in a way that the process is not dependent on yourself.  Take for instance a cappuccino machine at gas station.  The machine is a system that operates mostly on its own. If your the gas station owner you’ll have an employee who knows (because of his or her training) when and what to put in the machine to make the system work. It’s really now different from a system perspective the just implement differently.


Most successful home based businessentrepreneurs online use some form of affiliate or network marketing that is tightly associated with the audience their website commands.  Pretty simple right.  Go to a tech site and you’ll see ads for tech products that lead to purchase gateways at pre-arranged affiliate sites.  Some affiliate relationships are simply a traffic trade and you get paid for the traffic you drive.  The money is in the network any way you look at it. Look at Google, they have the biggest network and index the most content on the Internet today.  As a result they have earnings that reflect that…

Small Business Ideas and Making Money

Everyone has ideas and rarely will even the best small business idea make you a dime. It’s all about implementation right from the start.  If your going to create a passive income stream with your small business and you look to the Internet to help you stay home based then you need to be planning to do that from the start.  Knowing exactly how your going to make money from the start is by far the most important thing.

Passive Income Doesn’t Just Happen

Many of the best passive money making small home business on the Internet today use a mailing list to make passive income. It really comes down to this.  You only have to write one email, or blog post, create one sales page, and payment gateway in order to earn money from thousands of people on the list. Back to the “work” part of it and the pipeline…..

If you want a mailing list of thousands of eager to buy people you’ll work for it. And not only will you work for it, you’ll be learning everything you need to know about generating traffic, increasing conversions, getting opt ins,email marketing, copy writing, and trust me, there is a lot more… So when you here of this person or that person making $300k in six months realize they spent years and thousand and thousands of dollars to learn and acquire all that is necessary in order to produce those results.  The results are impressive, I just see people looking around wondering how the hell that happens.  So how does it happen? They earn it.

Top affiliate marketers often scoff at business opportunities that offer a turnkey solution to starting a home based business, but many of them got their start the same way.  As far a running your home business like a real business and earning money with the least amount of man hours, a turnkey business model taken seriously isn’t a bad way to go.

A lot of good business model get judged unfairly because of people who treat them more like a hobby than a business. It’s easy to do. When you go out and spend 100k on a franchise agreement you tend to take your investment a little more seriously than you might if you started a business that could earn just as much or more but cost under $500 bucks to start. 

I love web based home business models for Lot’s of reasons, but the top reason I like them is because of leverage.  Really leverage comes from the Internet and the technologies it makes possible, regardless, it allow me to do things and create results that no traditional business model can do, a lot like network marketing.

What are some of the top reasons you see a web based home business model as the best business model?

Let us know in the Comments.

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