There are fundamentally 2 main ways to grow your income:
This is income that comes from our active efforts to earn money. For many of us, this includes working at some sort of a traditional job. The main reason active income is called “active” is due to the fact that you have to do something. Most traditional jobs will required you to work 9 to 5, either sitting in the office or working out in the field. At the end of the day, your pay will be calculated by the time you spend in the company, or the work you done for the company.
Even thought it may not be a physically strenuous job, like the construction worker working under the hot Sun at the construction site. You still have to be actively doing something to earn that income. Even if it means just sitting on your desk. If you stop doing that certain task, money will just stop flowing into your bank account.
Passive income is a personal finance term that refers to any income that continually comes your way after minimum initial effort. Passive income is money that flows into your pocket while you’re sleeping. Is there anything better than making money while you sleep?
At any job, regardless of your income level, there’s a relationship between time and money. This is active income. The more hours you log, the more money you make.
Time is limited; money is infinite. Time is precious and in short supply; money is abundant. It makes no sense to trade time for money; it’s unsustainable. Building passive income necessitates upfront work. In the beginning, you invest time (and some money) but don’t earn any immediate income.
Depending on how much work you put in on the front end, this could be a little extra cash each month, or it could completely replace or even surpass the income you make from your business.
You’re one person. This means you’re limited in how much help you can provide. You can only help a certain number of people in one day… and if you don’t work, you don’t get paid. You’re 100% trading time for money, meaning you’ll only make income when you’re putting in significant effort.
If you choose to entirely stop working one-on-one with clients in favor of pursuing passive income streams, that’s great too. This will leave you more time to focus on helping more people, with less active work on your part. While it’s true that earning passive income is generally much less work than earning active income, it will still require some effort, particularly up front.
For instance, if you’re going to create a kick-butt online course, you can safely expect to spend at least a few weeks doing research, developing content, and just generally building out your course. Then once your course is ready to go, there will be the ongoing work of marketing your course, keeping it up to date, and providing customer service. So, while it will be much less work than working one-on-one with clients all day, it will definitely still require some work!
When you create your first passive income stream, you’ll probably be super excited to see what happens with it. But, the reality is that it’s rare for a first product to be wildly successful. Prepare yourself for the possibility that your first offering may not do well… and that this isn’t a reflection of your ability (or rather, inability) to earn passive income. It takes time, patience and a lot of trial and error to find the passive income stream that will work for you. And this will vary depending on your niche, audience and skill set… So don’t give up if things don’t go your way immediately!
This is a myth. Passive income always requires something up front: time or money. However, the idea that it becomes passive after you do the work is what’s alluring about it. For example, you spend 6 months writing a book, and you can enjoy the royalty income from your book for the rest of your life without any further work.
Passive income can work for you, regardless of if you have millions of dollars to invest and no time to spare, or $0, ample free time, and a spark of ingenuity. Establish your financial goals and decide how much time, effort, and money you’re willing to put into your venture.
Whether you choose to invest, buy a business, outsource your own, or get paid for your daily routine, you can prosper from passive income.
The way these opportunities generate income is by advertising, and controlling internet flow (traffic) through your site. People you need to start thinking in terms of internet trafficking, marketing, advertising, for the “big corporations” that’s what the “smaller” websites, blogs, podcasts, whatever it is… are supposed to do! Stop thinking that it’s your site, or writing, or podcast that is going to make you money, because it’s not! What makes the money are the affiliates that pay to advertise on your site and links them to everyone that goes on your site! These are great ideas, if you educate yourself, and understand how it works!
It’s rare to find a successful business owner who only has one passive income stream.
You can earn passive income through:
• Online courses
• Affiliate marketing
• Book and eBook sales
• Ads on your niche websites
It’s exciting to start something new, but don’t fall into the trap of launching too quickly, or of launching a whole bunch of passive income streams all at once. Jumping in too quickly and without some forethought can mean overwhelming and overloading both you and your audience!
Imagine launching an eBook, course and DIY program all at once… and then promoting them to your email subscribers and social media audience. They probably won’t know what hit them! Instead of being excited about trying out your products, they’re more likely to feel overwhelmed by all the choices, over-marketed to, and just plain annoyed!
1. Selling eBooks
Self Publishing is mainstream today. When you purchase an eBook off of Amazon there’s a pretty good chance you’re buying a self-published book.
There are two main ways you can sell your eBooks: on your website, or via a major eBook retailer like Amazon.
Selling eBooks on your website
This is an easy way to start selling a (relatively) low-cost item on your site. Typically, eBooks range from a couple of dozen pages all the way up to a full-length book. Depending on your niche, the price could be anywhere from a couple of bucks up to $100+. In other words, there’s a market for pretty much every type of eBook at every single price point!
Selling eBooks on eBook marketplaces
If you want to sell on Amazon you’ll definitely need to make sure you (1.) price it appropriately, and (2.) have it formatted for the platform you’ll be selling on. In terms of pricing, eBooks sold on these platforms tend to sell for far less than if you sell them directly on your website. They typically range from $.99 up to $10… you’ll need to see what comparable books in your niche are going for to determine your pricing.
2. Create an Online Course
Creating an online course takes real hard work and a lot of time. But it is possible. Many people are creating online courses and selling them.
If you have some skill which you can teach others and make them learn the skill to earn money, It will be beneficial to both of you. If you have a special skill, there’s probably someone who will pay to learn it. Online courses can be a great way to share in-depth information with your audience. There are so many amazing tools out there now that will help you create and market your course. This means that literally anyone – regardless of technical ability – can do it.
The only catch is that the course should provide value and solve a solution.
The major decision you’ll need to make when considering an online course is where you’ll host it. You have two options: you can either build and host it on your own site, or you can use an online course platform like Udemy.
3. Affiliate Marketing
Affiliate marketing involves promoting someone else’s product to your audience via your website or email list. For every sale you make using your unique affiliate link, you earn a commission. This commission usually ranges from 4-10%, but can be as high as 90% for digital products.
There are a ton of creative ways you can promote these products, for instance:
• Creating review posts on your website
• Sending a promotional email to your email subscribers
• Including relevant affiliate links in your blog posts
• Including your affiliate products in a list of helpful resources
• Offering promo codes for your affiliate items (this is something many merchants will provide)
There are many forms of affiliate marketing. You can become an affiliate for a product/course or you can create an affiliate program for your own products or courses. Either way, you will earn money.
4. An E-commerce Store
This isn’t exactly passive income. But it can be a good way to earn money through your website – and is far more passive than, for instance, running a brick and mortar store.
Using a tool like Shopify will allow you to get your online store up and running in no time at all. Another great option is WooCommerce, which is a plugin you can use to add a store directly to your WordPress site.
Dropshipping is an excellent way to sell products on your site without having to carry any inventory or worry about shipping and customer returns.
Here’s how it works: You make an arrangement with a third-party seller to promote and sell their products on your site. When someone purchases a product, the seller is automatically notified and ships out the product. And your customers will never even know there’s a third-party involved!
In terms of payment, you pay the wholesale price for the product (usually plus a small fee), and then keep the rest of the customer payment as your profit.
One of the trickiest parts of dropshipping is simply finding products to sell. A great place to start is Oberlo. You can browse through thousands of products to find ones you think would be popular with your audience.
When you’ve found a product you like, you can grab images and descriptions, and then simply click “import to store” to start selling it on your store.
Looking for other dropshipping sites? Check out Doba.
6. Build an App
Have an idea for an app that would make life easier for your prospects or clients?
The good news is that it no longer needs to take months and thousands of dollars to build an app for your audience! All without paying a developer!
Sites like AppyPie and BuildFire let you build mobile apps, and edit them anytime you want. You can choose from tons of different features, integrate monetization into your app (i.e. make money), and even accept payments through your app.
7. YouTube Videos
Want to earn passive income through filming and promoting videos? There are a number of ways you can make money through YouTube. First, your goal will be to create amazing, helpful videos you can share with your audience.
Cover their biggest pain points, and offer specific, practical advice for addressing those issues. As with blog posts, social media posts or any other type of content, keep your promotional stuff to a minimum – generally no more than 2 pieces of promotional content for every 8 pieces of other content.
If you can get a lot of views for your videos, you can make some decent money through YouTube ads. Basically, advertisers pay to have their ads shown, and you get a cut – usually somewhere in the neighborhood of $1-$2 per 1,000 views. To put this in perspective, this means that if you got 100,000 views, you’d make around $100-$200.
We would recommend using your YouTube channel to promote your own stuff: eBooks, online course, affiliate products, etc.
8. Group Coaching
If you currently offer one-on-one coaching or consulting, you probably find you’re extremely busy earning ACTIVE income! Many coaches and consultants do quite well offering these one-on-one sessions but wish they had a way to work fewer hours while helping more people.
Group coaching is the solution to this. Through a combination of pre-recorded videos, written content and some live support (possibly in the form of a secret Facebook group), you can provide help to multiple clients at a lower price per client.
And the best part? Once you’ve got your coaching structure and content up and running, you’ll find most of your active time is spent offering support in your group… rather than responding to individual requests, scheduling calls and Zoom sessions, and creating new content for your clients.
9. Advertise on Your Website
You may also find that there are other businesses in your niche who are looking for ways to reach your audience. Offering ad placements in your sidebar, leaderboard, or via a native ad (e.g., a review post) can be a great way to earn some additional income with very little additional work on your part!
10. A Membership Site
If you’re currently offering your services exclusively on a one-to-one basis, making the switch to a membership site can save you tons of time while allowing you to serve MANY more people. Your membership site can take many different forms, but will generally include some combination of:
• A members-only forum or Facebook group
• Exclusive member discounts
• Access to members-only content
• Live webinars or Q&As for members
• Members-only conferences or live meetups
While running a membership site may take a lot of time and effort, the primary advantage is that you have a guaranteed monthly income. That means if you do need to get away to those warm, sandy beaches… you can do so while continuing to earn income!
11. Influencer Marketing
If you’ve earned the trust and respect of your audience, and if you have a large and engaged following, influencer marketing could be for you.
This will involve using your influence to promote other people’s businesses and products… whether on your website, social media or to your email list.
Not sure where to start with influencer marketing? While you can certainly reach out to relevant businesses in your industry, there are also many great influencer marketplaces that connect influencers and brands, for instance, check out AspireIQ and Influence.co.
12. Create Niche Websites
Creating a variety of niche websites gives you multiple opportunities to generate passive income streams (using the strategies above), without putting all your “eggs” in one basket!
You can create a number of different sites in various underserved niches – niches that most people wouldn’t really think of. For instance, how to become a security guard!
You can start selling a $20 eBook to help aspiring security professionals pass their certification exam, and boom – you made over $7K the first month.
If this sounds like a strategy you’d like to pursue, ask yourself these questions:
• What topics am I interested in or passionate about?
• Which niches correspond to these topics and aren’t already overrun with websites and competition?
• What value can I provide to this audience?
• What digital products can I provide that people would be willing to pay for?
If you can answer all these questions, you’re on your way to establishing an excellent passive income stream!
13. Start a Blog
If you want to create a passive income stream, creating a blog is really the best thing for you. Blogs are an unbelievable source of passive income. But there’s more to making bank with a blog than just posting good content.
If you’re looking for an extremely cheap, yet highly scalable way to create a passive income for yourself, you might want to take a moment and consider starting a blog. You can start a blog for as little as a penny for your first month, and just a couple dollars per month thereafter.
Start a blog to earn some passive income. It will take some time to make money and it is really hard as well as smart work. Because millions of blogs are created every day. And you need to stand out from those blogs. It takes some time to build some income from a blog but you can see many people who are earning a good amount of money from their new blogs even.
If you can consistently use your blog and create a lot of value for a lot of people, you can generate an extraordinary amount of passive income. It takes time to get it rolling. The sooner you start, the sooner an income stream can begin to grow. As you post to your blog, more and more, your site will start bringing in traffic whether you put in any additional time or not.
14. Buy a Blog
Thousands of blogs are abandoned by their owners every year. If you can buy blogs with a reasonable amount of web traffic and demonstrated cash flow, it could be a perfect passive income source.
Most blogs employ Google AdSense, which provides a monthly revenue stream based on ads that Google places on the site. There may also be affiliate programs generating additional revenue.
From a financial perspective, blogs usually sell for 24 times their monthly income. So if the site generates $250 a month in income, you can likely buy it for no more than $6,000. Translation: a $6,000 investment will buy you $3,000 per year in cash flow. Some sites have good “evergreen content that will continue generating revenue even years after the site has gone silent, so a simple $6,000 investment can net you ongoing passive income.
If you buy such a site then reinvigorate it with fresh content, you may be able to increase the monthly revenue and sell the site at a later date for substantially more than what you paid for it.
We recommend buying a blog on Flippa. Here are some quick facts on this awesome marketplace:
• Includes everything from small sites to ones that garner millions
• Currently has more than 2,000 web-based businesses for sale
• Based on a bidding system and fulfilled by Flippa Escrow program to ensure your money and business are safely secured.