The Internet has made it possible to generate many more forms of passive online income. Passive income is one of three types of income, as categorized by the IRS. The most common source of passive income is through online advertisements.
- Advertising models
- Generating passive income
- The need for content
- Passive and active compensation
- E-commerce and auctions
- Private contracts
However, this only represents one of many ways that clients and independent contractors can come together. Many clients will advertise the need for services on online classified websites, content mills and forums. For more high-profile projects, talent is usually found through word-of-mouth or by the independent contractor advertising his or her services on a personal website. While clients might pay a flat fee for services, some clients and independent contractors work out an hourly rate or a revenue share system.