One of the most common ways to make money online is with a niche or a local directory. We’ve done this for a couple years now and I have to say, it’s a great way earn a passive income without a lot of effort.

A niche directory offers information on items to people within a certain interest group or niche, as we like to call it online. The person who owns the niche directory makes money from other business owners who pay to advertise their products to buyers who all share a preference for a certain topic.

A niche directory is, like many successful businesses, what one might be tempted to call a win-win situation. They happen to be very popular, because of three fundamental reasons:

First of all, consumers like niche directories, because they ease the way to finding products or services that cater to their interests.

Second, advertisers actually love niche directories, because they deliver targeted visitors right to their websites, with credit cards in hand.

Third, the owner loves his or her niche directory, because it makes easy money month after month.

Another facet of the same idea is to create a directory for professionals working in the same industry. Some of the niches that you might consider when thinking about running your own directory may include real estate agents or health and beauty professionals, although the list is almost endless. You can also offer free or low cost advertising to make these small business owners to obtain a listing in your directory.

You shouldn’t worry about not making much on the ad rate. Your main objective is to build a list. After that can start sending affiliate offers to the business owners you already have in that list. Just make sure not to overwhelm them with useless advertising.

Provide them good with high quality information that will help them build their own businesses. When they’ll see that you’re truly helping them by giving valuable information away for free, they’ll be much more likely to pay you a monthly or yearly fee to keep their listing in your directory.

Another way to exploit the directory idea make money out of it is to build a local directory that caters to people in your geographic area.

Already own one? Share your experience with us.

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