How I Make Money Online: The Simple Funnel System That Works

What’s going on, guys? I’m Ryan E, founder of Pass of Paradise. I’ve been using the same straightforward system for years to make money online, and in this post I’m breaking it down step by step so you can use it too. No fluff - just the exact structure I rely on.

Start with the funnel

A funnel is exactly what it sounds like: you bring a lot of people in at the top, and a smaller, more qualified group moves down toward your offer. The goal isn’t to convert everyone - it’s to attract the right people and guide them toward the product, service, or community that fits them best.

Top-of-funnel: bring in traffic

You need traffic before you can sell anything. There are two main ways to get it: organic and paid.

Organic traffic sources:

• Google (search/blogs)

• YouTube and Shorts

• Meta (Facebook, Instagram, Threads)

• Twitter/X

• TikTok

Publishing on any or all of these platforms consistently will generate organic traffic into your funnel over time.

Paid traffic sources:

• Meta Ads

• Google Ads

• TikTok Ads

Paid traffic is great if you have the budget and the know-how. It can accelerate results, but you should understand how to track and optimize before spending heavily.

Turn traffic into subscribers with an email squeeze

Once people hit your funnel, your first objective is simple: collect emails. This is called an email squeeze, and it’s how you build your list - the asset that will make you the majority of your money. Not your social posts, not your ads - your email list is the golden ticket.

To get someone to trade their email, offer something valuable for free. There are four proven types of freebie offers, ranked here from most effective to least effective for email capture:

• PDF guides: Short, focused, 1–2 page “how to” assets work great. For example, I’ll often turn the core lessons from a video like this into a concise PDF and use it as a lead magnet.

• Intro course: A free mini-course of at least four videos. Give real value, but don’t give away everything - leave room for your paid course or deeper training.

• Ebooks: Anywhere from 16 to 120 pages (even up to 250 if you want). Ebooks can also live on marketplaces like Amazon, creating a small stream of passive income while feeding your funnel.

• Newsletter: Ongoing updates - daily, weekly, or twice weekly - packed with your latest tips, guides, and resources. Your newsletter and your email list go hand in hand; once someone’s on your list, your newsletter keeps the relationship alive.

What to put in your newsletter

Use your newsletter to add consistent value. Include:

• Quick tips and insights

• Links to your latest PDF guides

• Lessons from your intro course

• Highlights from your ebooks

• Updates, tools, and relevant stories

Email campaigns: what to send and why

Once people are on your list, it’s time to start campaigns. I use three main categories, each aimed at a different type of buyer:

• Stories: Personal experiences, client stories, or narratives that relate to your audience’s problem. These target emotional buyers and are great for inviting people into your community.

• How-to’s: Step-by-step lessons and breakdowns. These target analytical buyers and are ideal for guiding people into your courses.

• Tips and tricks: Quick wins, new tools, and bite-sized strategies. These target impulsive buyers and pair well with affiliate offers.

You can mix and match these, but know your intent. Stories build connection and community. How-to’s build trust and sell courses. Tips and tricks drive quick action and affiliate revenue.

Choosing your offers: community, courses, affiliate

These are the three offers I lean on to monetize:

• Community: This is where everything ties together. Inside your community, you can share your courses, recommend affiliate products, and help members level up. Ideally, this is a subscription model so you build consistent monthly recurring revenue.

• Courses: Sell deeper, structured training to people who want to go beyond your free content. Great for your analytical buyers who love systems and transformation.

• Affiliate offers: Promote quality tools or solutions that relate to your niche. Don’t compete directly with your main offer - complement it. If you’re primarily an affiliate marketer, you can scale with multiple offers.

Why the community is the core

Aim to make your community a subscription with tiers like $7, $15, or $60 per month, depending on the value you provide. This creates persistent passive income - but passive doesn’t mean “do nothing.” You must deliver real value or churn will erase your gains. Live sessions, resources, accountability, and access keep people engaged.

Subscription vs. pay-as-you-go

• Subscription: Best for ongoing support, community, and a steady drip of value.

• Pay-as-you-go: Best when you have high-quality, standalone courses that are worth more than the cost of your subscription. You can also combine both models: have a base subscription and offer premium courses separately.

Putting it all together: the system

• Drive traffic from organic and/or paid sources.

• Use an email squeeze to capture leads.

• Offer a compelling freebie (PDF guide, intro course, ebook, or newsletter) to grow your list.

• Nurture with targeted email campaigns:

  a. Stories → invite to community

  b. How-to’s → sell courses

  c. Tips/tricks → promote affiliate offers

• Monetize through community subscriptions, courses, and complementary affiliate offers.

• Loop the process: keep growing your list, launch new campaigns, and introduce new offers.

This is the exact structure I’ve used for many years. It’s simple, repeatable, and scalable. You don’t need to master every platform or launch every product at once. Start where you are, create one solid freebie, build your email list, send purposeful campaigns, and add offers that fit your audience.

Want to go deeper? I put together a free PDF guide based on this post that you can download. It recaps the system and gives you a quick-reference checklist so you can build your funnel faster.

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