February 9, 2018 8 min read
The opinions expressed by the entrepreneur’s contributors are their own.
Passive income is the holy grail for online marketers. It’s automatic. Effortless. But not at first. In the beginning it is exhausting. I compare this to the greatest amount of work for the least initial return. However, over time, your dependency on active income will decrease as your passive income begins to increase. Then the real magic begins to happen.
For most people, this means getting out of the proverbial rat race. It is synonymous with freedom. True financial independence. A release from the shackles that binds us to the company’s 9-to-5 job. It means to be unleashed. Live a full life. And you have complete freedom to live, work and move around freely.
Yes it is utopian. That is by design. But if you sit there and think that passive income is impossible because you are too busy to work a day job, think again. It just isn’t possible. You shouldn’t just do it. But you’d be stupid if you didn’t put so much effort into generating passive income right away.
However, this comes back to the old discussion of pain versus pleasure. We will always do more to avoid pain than to have pleasure. When our back is against the wall, we act. If they aren’t, we relax. The truth is, the pain-for-pleasure paradigm is short-term. We will only avoid pain in the here and now. Often not in the long term.
The day before our taxes there is pain. A lot of pain. We know what happens if we don’t submit. The same goes for the night before an exam or work. We spend so much time hesitating that we don’t take action until the pain of continuing the procrastination outweighs the pleasure of procrastinating longer.
But when it comes down to it, passive income isn’t that hard to generate. If you know which path to go and follow a few simple steps, it is your chance. It just takes time. Don’t expect this to happen overnight. Unless, of course, you have money to invest in real estate or high-yield dividend stocks.
Related Topics: 17 Passive Income Ideas To Automate Your Cash Flow
There are dozens of ways to generate passive income. However, the option you choose has to do with two metrics: time and money. You either have a lot of time or a lot of money. Most people don’t usually have both. However, when you have a lot of cash it is easy to generate passive income almost instantly. You can buy some real estate and start enjoying rental income. Or, you can invest in a dividend fund or other investment vehicle that will give you a stable income.
However, when you lack the money, you need time. You need to invest the lead time now to take advantage of the automatic income benefits later. It just doesn’t happen overnight. So don’t expect it. However, you can do this without quitting your day job. All it takes is a sincere effort over a constant period of time and voila! But to get there you have to constantly burn the midnight oil or get up at the crack of dawn. Your decision.
Related Topics: 15 Property Management Tips For Entrepreneurs Looking For Residual Real Estate Income
1. Start a blog.
One of the best ways to make a passive income is through blogging. Yes, there will be no income in the beginning. Expect this. But over time, you will start generating income from this blog. At some point it will be snowball. You could potentially make six or seven numbers a year, sometimes more.
There are some basic steps you need to take before starting a blog. Don’t just rush in upside down without planning beforehand. Blogs in the following sub-markets make the most money:
- Dating and relationship blogs
- Money-related blogs
- Diet and fitness blogs
However, you should pick a niche and blog about it. If you start a blog about money it might be about how to make money in real estate or just how to make money online. Choose the niche and stick with it. If it’s a diet and fitness blog, the niche might be the ketogenic diet, the Atkins diet, or some other form of diet or fitness.
Related: How To Make Over $ 1,000 Per Month From Blogging
2. Start an automated webinar.
Webinars absolutely crush it these days. If you are serious about generating passive income, consider starting an automated webinar. Before doing this, however, make sure that you do the webinar live every week for a year. Once you’ve converted the webinar, automate it.
Some people take it automated long before the year is up. When it converts, it converts. If you target the right people and are able to create the right message that speaks to your audience, then you can just start a home run. A webinar funnel is often created in an automated webinar. This includes not only the webinar, but also the email sequences and possibly a self-liquidating offer, as well as some offers made for your services and up-sells.
It’s not as complicated as it sounds. There are many things to consider when setting up a webinar. It is not an easy task. But when it clicks, it’s a proverbial money machine. Not only do you make money fast, but it is often more than you have ever dreamed of.
Related Topics: 12 Steps to Creating the Perfect Webinar
3. Write an eBook.
E-books are one of my favorite sources of passive income. Now you can easily do that and just publish it to Amazon KDP. Or you can do everything you can to build a book funnel. Book funnels are powerful, but not entirely passive. For example, if you’re creating a free shipping offer for your e-book (converting it to a physical book), you’ll need to create some one-time offers (such as additional training) and up-sells (such as an audiobook). . A book funnel, however, can be very powerful.
But you don’t have to go any further. You can just write and publish it and collect the income. That’s all. Send a few emails to your list (if you have one) or post it on social media and there you have it. Passive income. Well, the amount of income you will receive will depend on the quality of the book you have written. How well did you write the message? How targeted was the information for your audience? It counts.
If you want to go a step further, you can easily convert this e-book into an audiobook using the Audible platform. You can either produce the audiobook yourself or hire a producer to do it for you. You can either pay them a flat fee or a license fee from the proceeds of the audiobook.
Related: Would you like to write a book? Consider these 3 self-publishing options.
4. Do affiliate marketing.
A great way to generate residual income is through affiliate marketing. This now depends on the size of your list. Yes, size matters when it comes to your list. Especially if you are serious about making money and want to do it on the autopilot. However, creating lists takes time. It doesn’t happen overnight. And you need to add value to your list or you will become out of date.
Make a list in a specific niche and tell them stories. Create a bond. Build a relationship with them. It is important. Once you’ve created a bit of culture, start marketing an affiliate product or service to them that you think they might like. Just make sure you personally review whatever you’re selling to avoid complaints if the product or service falls short.
And if you’re wondering if you need a blog or website to make a list, don’t. You can use sites like Medium or Quora or LinkedIn Publishing and post a call to action to join your list. It’s that simple. Create quality content and invite them to join your list. Then start marketing for them.
Related: How To Make Money Online In 6 Easy Steps
5. Create an information product funnel.
Sales funnels are powerful. They offer the highest income potential on the internet. If configured correctly, they can also be easily scaled. You need to understand a thing or two about conversion optimization. And possibly Facebook ads. But you can find out what is confusing you.
The hardest part of building an information product funnel is finding the right hook. There is so much competition that virtually everyone has provided almost every type of product or service. The goal is not to recreate the wheel. All you have to do is model what works, not copy it.
Find something that you can sell that will attract enough people. In other words, choose a hot market. What are people buying up like crazy? Is it something diet related? Is it money related? Soon. Find out what works and make a better version of it without actually copying it. Add a lot of value and watch the money come in over time.