Today, I’m going to break down some different passive income streams to help you guys out. I wish I had seen a video like this years ago because it would give me a better understanding of what’s out there and what’s really possible for passive income.
The first thing that I want to cover in this video is the connotation with the word ‘passive income’. I generally don’t like to use it and say it in public because you see people’s reaction.
And I think this is shaped around other people on the internet are saying here’s how you make passive income you just sign up, you click a few buttons and then go sit on the beach for the rest of your life as you collect money.
Realistically that is not what passive income is and that’s not how you make it. It takes a lot of hard work. This is why you see people like Gary Vaynerchuk taking such a defensive approach on the topic of passive income.
Realistically and I can tell you guys from experience creating passive income is definitely possible. You have to know what you’re doing and put your time and effort in the right places and it takes a lot of hard work.
That you won’t get the rewards from all of that passive income for quite a bit of time until you start seeing it come in at the end of the day though passive income is definitely possible and hopefully this video can help you guys by shedding some light on what I’ve done over the last few years and what you guys can do and start doing to create passive income for yourself.
If you guys are new to the channel, make sure you hit the Subscribe button down below, if you do want more honest videos from me about financial freedom and creating passive income online. There really aren’t a lot of other resources out there that are trustworthy on sharing information about these things.
So hopefully this video and the other videos on my channel can be helpful for you. Now again, before we get into these ways of creating passive income, I just want you guys to know that I’m not creating this video to brag or to be conceited at all.
It’s really just to show you guys what’s possible and what I think you should be spending your time on that’s going to efficiently and realistically create you passive income in the future.
Just keep in mind that these things are not easy. They’re not something that you just sign up and click a button, then you make money forever. It takes a lot of hard work upfront and a lot of people who start these things don’t follow through with them because it takes a lot of brainpower, energy and focus.
However, if you are interested in this, stick around for this video, because I’m going to share the seven different ways 0:02:05.980,0:02:10.250 that I’ve personally used and I can personally stand behind for creating passive income online.
So if you’re interested in that, watch this video through, and I think it’ll be very helpful for you. So the first source of passive income that I’ve been generating is by far the easiest and anyone, absolutely anyone can start doing this today.
And what that is is a high-yield online savings account. Now I know that sounds pretty complicated because it sounds like a big financial term. But all this is is basically you have your physical banks where you go and you walk into a physical location.
These are normal banks that were used to all the big players but then you also have these online banks that are really coming to the surface now because of all the technology and people are realizing that if you go with an online bank, they can offer you as a customer where you’re putting your money in they can offer you better deals and better interest because they don’t have the expenses that a normal bank does where they have to pay for a physical location.
All the employees to staff that location and all the other expenses that come with that. So with that said, these online banks are just like the normal banks, except no physical locations and with that they can offer you a higher interest rate on a savings account.
Now, I personally use allied.com and that’s just one of the bigger ones in the US but there are other ones in US and internationally. You just have to go onto Google and kind of look for one that you want to go with and then put some money into a savings account with them.
The standard interest rate for these online banks is about 2%. When compared to these normal banks, the savings rate is about one-half of one percent or 0.05%. So what this means for us in regards to making passive income is if we take money out of our normal savings account and we move it into an online savings account that has a higher interest rate, we’re just going to make passive income because of that.
To give you an example based on the average interest rates of 0.5% and 2%, we’re going to look at if you take a $1000 out of your savings account of your normal bank at 0.5% and you put it into an online savings account making 2%, that thousand dollars is going to make you $20 a year of just straight passive income.
That’s about one $1.67 per month of passive income with only $1,000 invested in it. Now where this starts to get interesting is as you start to invest more money. So as you put $10,000 into the online savings account, that’s $16.
67 per month of passive income. You don’t have to do anything to earn that as you can imagine as you up that to a $100,000 that’s almost $200 of passive income per month just by having your money in an online savings account as opposed to your normal bank’s physical location savings account.
Now one of the big questions you may be having about these online banks are ‘are they safe?’ and the short answer is Yes! All of these banks are insured just like the normal banks are, just look into the specific one that you’re thinking about putting money into, before you put money into it, and the last thing about these banks is they act just like your normal bank, So when you need the money, it’s just sitting there.
You just transfer it over to your bank or you can pay bills directly from it. It’s essentially just another savings account. It’s not something where you have to invest in it and then you can’t pull it for a certain amount of time.
The money is 100 percent liquid, just like it is in your normal bank. The second source of passive income that I’ve been generating is from print-on-demand. And this is another one that absolutely anyone can do.
How this works is you create a design that you think would be good on a t-shirt and then you upload it to a couple different web sites and then those websites make an image of what that design you uploaded would look like on a t-shirt and then they market it to people and get people to their website to see it.
And then if someone sees that and they like your design on a t-shirt, they can actually buy it from that website and the website takes the order, collects the funds from the customer, prints that design onto a t-shirt and ships it out to the customer and then the website takes a little bit of the profit and gives you the rest of the profit right into your account.
Which is typically a few dollars and then it continues to list your design on a t-shirt on the website for future people to do the same thing. And the first thing you’re probably thinking is I’m not a graphic designer, so I can’t do this one, print-on-demand is not going to work for me.
And I have to tell you that I’ve taught people who have no experience in design and even call themselves ‘not creative’ how to do this, and how to do this on a big level. There are so many design tools out there where you can look at their templates and you just change the words around, change the colors, and now you have designs that you can upload.
So if you’re not a graphic designer, you don’t have experience with creating designs for t-shirts, don’t let that limit you, at least give this one a try, and this one is print-on-demand. So I highly recommend it.
The third source of passive income that I’ve been generating is from digital products. This is very similar to print on demand except there’s no physical product that the customer gets. So think of it as something that the customer can download.
The reason that this is so good and so passive, is because the sky is the limit on what kind of product you can create. This can be anything that the customer can download. So it’s digitally delivered to them so you can create anything of value for someone and then sell it over and over again and as someone places an order, it’s automatically emailed to them or automatically delivered the download link to them.
So they can download it instantly and start using it. So the hard part on this one is being creative and thinking of what is something that you know that people are willing to pay you for, and then creating that in a digital format.
To give you a personal example, a while back I created a very specific website template for people to use, so they didn’t have to spend the time creating it themselves and kind of learn along the way how to make it perfect.
So this took me a couple months to really perfect this template. But once I had it made, I now sell it over and over again to people and they can purchase it instantly get the download of it automatically delivered to them and start using it.
This creates a win-win for both me and for them. I put in all the hard work up front to create this template and they really need it to save them all the time and to get that perfectly created template.
So a win-win, I get paid over and over for it and they get to download it instantly and start using it. So if you can think of something that delivers value to people and something that they would be willing to pay for that you can make digitally, I highly recommend digital products.
To give you just a couple more examples, to get your brain thinking of different things you can create for digital products. They can be things like ebooks, they can be things like photo editing presets, or even a video based educational course.
These are all things that someone can buy. It’s automatically delivered to them and they can start consuming it digitally right away. The fourth source of passive income that I’ve been generating is from niche specific affiliate marketing websites.
I know this one sounds a little bit complicated but check this out; have you ever gone to Google and typed in a question, and then scroll down clicked on the search results and then read that article? Well, most likely that was a niche specific affiliate marketing website that you were reading that article on.
All this is is you create a website about a specific topic or a specific niche, which is just a very specific category of things and then you write helpful articles on that website that will start showing up in Google search results.
And then the way that you make passive income from this is two ways. You can put ad space offered on your website for advertisers to pay to have an ad on your website as people are reading through the article and the second way is you can put affiliated product links throughout your articles.
So for example, if you’re writing an article on how to fix this and there’s a product that you’ve used and you can recommend to the person reading it. Then you can link up, hey I’ve used this product before, here you can go purchase it on Amazon with your affiliated link.
And that way it’s a win-win, the person reading the article is going to get the answer they need and a good recommended product from you who’s used it before. And then if they click your link, go over to Amazon and buy it, you will get a small Commission for referring them.
The concept of this is simple and we see it every day in our lives but we don’t think about how we can make money from it. But if you do do it it’s a great source of passive income. The hard part on this one is writing the actual articles.
Think back to when you were in college and you had to write college papers. It’s just like that. It’s not something that you exactly wake up and you’re like I can’t wait to write it today.
It is a little bit dreadful, but if you have a passion or an interest in it, it’s a lot easier. And keeping in the back of your mind that every article that you write you’re going to get paid every time someone clicks on it and Google and reads through it.
The fifth source of passive income that I’ve been generating is from niche-specific affiliate marketing YouTube channels. So the fact that you’re on YouTube right now watching this shows how big YouTube is getting, so just like those affiliate marketing websites we were just talking about in the last one, they will bring you traffic from Google search results.
However, you can go over to YouTube and if you’re comfortable on camera, you can create a new YouTube channel about the same niche related specifically to that any specific affiliate marketing website and then turn those articles into YouTube videos.
So you can literally put the article to the side and you can just basically read it out in an entertaining way and create a Youtube video about it. Just like the affiliate marketing website is going to bring you traffic from Google search results, the affiliate marketing YouTube channel will bring you traffic directly from YouTube search results, the cool thing about this is you’re taking the same content that you already wrote for your affiliate marketing website and turning it into a video.
Just keep in mind that these videos, you don’t have to have a ton of experience. You just have to have a camera and a microphone of some sort and they don’t have to be movie quality videos as long as you’re getting good information across and it’s about that specific niche.
It’s going to be relevant and you will get traffic free from Google search results. Now the other thing that’s cool about making an affiliate marketing YouTube channel based off the affiliate marketing websites articles is that the advertising space that was on the website within your articles is going to be the same advertising space on your YouTube videos.
So Google owns YouTube, so the same advertising space that you can offer on your website is the advertising space that goes before during and after your YouTube videos. So as you create these videos and people start watching them, you can actually make money from the advertisements that are on your videos.
Additionally you can then put the affiliated links to the products that we had in our full articles in the description of your YouTube videos essentially by creating a niche specific affiliate marketing YouTube channel, you’re just double dipping on traffic.
So on the website, you’re going to get traffic from Google search results on the YouTube channel. You’re going to get traffic from YouTube search results with these little niche specific YouTube channels.
And I call them little because your goal is not really to build a following and continue posting videos forever. Your goal is really just to make videos about the articles that we have on the site and just get additional free traffic coming and seeing your content.
What makes both of these so passive is that the articles you write on your website and the YouTube videos that you create and upload they will get views completely for free and organically for years to come.
You don’t have to do any marketing yourself to promote this content. Now a lot of you guys might be thinking that you’re not comfortable on camera, so you don’t want to create YouTube channels based on those articles, but what I have to say to you is the biggest barrier to entry on creating YouTube videos is all mental.
A lot of times, we don’t want to be on camera, we don’t feel comfortable being on camera. But what I can say to you guys is if I’m on camera right now, you guys can totally do it too. It’s not something that you exactly enjoy but as you do it more and more you get more comfortable doing it.
And it’s not as hard. So practice doesn’t necessarily make perfect in this regard, but practice definitely makes it easier. So if you can start recording yourself, I highly recommend creating the niche specific affiliate marketing website and taking those articles and turning them into YouTube videos to get free views for years to come.
The sixth source of passive income that I’ve been generating is from YouTube ad revenue. So as we talked about in the last one, you may make some ad revenue from the ads on your niche specific affiliate marketing YouTube channel videos.
However, if you have a main channel on YouTube that you continue to put out great content, making ad revenue from YouTube can be a great side effect of creating and uploading great content. Now if you go into creating a YouTube channel with the mindset of chasing money and chasing YouTube ad revenue, you’re probably not going to do well because building a big following takes a lot of work and quite frankly a lot of time.
So if you go into it with the right mindset of creating helpful videos and uploading it onto YouTube, expecting nothing in return and you do that consecutively over and over again, you may build up quite a big following and then as a side effect of that following as people watch your videos you will make substantial money from YouTube ad revenue.
Now many people are immediately going to say that they can’t do YouTube because they don’t want to make videos or they’re not comfortable on camera. But just remember that it’s a big mental barrier to entry and if you go into YouTube with the right mindset and you’re not chasing YouTube ad revenue rather you’re creating helpful videos and just uploading them to genuinely help people, then I think you can still succeed on YouTube.
No problem at all. The seventh source of passive income that I’ve been generating is from online courses. We often sell ourselves short and we don’t realize how much knowledge and value we have in our brains that we’ve learned from our jobs, or our day-to-day lives.
There are people out there almost certainly that are willing to pay for the knowledge that’s in your brain right now. Now I know online courses are getting kind of a strange rap right now because people are creating overpriced courses with low value and it’s creating a bad taste in people’s mouth.
But I want to say that they can absolutely serve a great purpose if the instructor, you or me, whoever the instructor is, is putting in good value into the course. that is genuinely going to help the student who’s paying for it.
Personally the way that I got started in online courses and just to give you an idea of why they can work so well, is because in my day to day life, people were asking me in person how to do what I was doing.
So I would then go meet with them for a few hours. It took at least a few hours to explain to them what I was doing, how they can do it to get them set up and get them really started and understanding everything that I needed to teach them for them to have success.
So once I had done this with quite a few people, I was realizing that every single person I was explaining the same thing to and it was almost identical what I was teaching to each person.
And then as people would ask me in day-to-day life to help them I would send them a link to the videos. This gave them the same information as if we were to go sit down and talk about it and for me to walk them through it.
But it saved me a few hours of going out there and actually explaining it in person. So this is essentially how online courses work and the best part is that now it’s bigger than just people asking you for how to do it and you sending them a link.
There’s actually marketplaces for these online courses. Now the two big sites are Udemy and Skillshare. And essentially, what you do is you create your course. You decide what the title is, what the description of the courses and what that topic of the course is going to cover and teach the student.
You upload it to these marketplaces and then the places like Udemy and Skillshare. They put that out to people who are interested in learning those things and they have a fee associated with the course.
You get some kind of say of what that fee is, but a lot of the times Udemy and Skillshare they’re going to set the price for you on what they think is right and then whenever someone buys that course through Udemy, they instantly and automatically talking about passive income.
It automatically gives them access to the course and then Udemy or Skillshare takes a cut of what the student paid for the course, and then you get the rest as the instructor. So that’s a great passive income source is if you’re creating a valuable online course that people can watch and learn everything they need to know and then Udemy or Skillshare is going to do all the marketing for you and continuing to sell the course over and over again and they get a cut, you get a cut.
That’s the definition of passive income. My biggest piece of advice on this is, if you are going to go the online course route, just make sure that the courses you’re creating are under promising and over delivering.
Make sure that you’re really truly packing these courses with a lot of value and not holding back for the students. If they’re paying for a course, you want to make sure that you’re giving them exactly what they’re paying for or more.
Make sure that you’re not falling into the trap of creating a very basic level course and then selling it for a high fee. That is not going to go over well and that is not sustainable for long term passive income.
Over the last few years I’ve been learning all about all these passive income streams online And I’ve been testing them with trial and error, finding out which ones work extremely well, (which are the ones I just listed for you guys) and which ones do not work and cost me a lot of time, a lot of effort and in some cases a lot of money in order to find out that they didn’t work.
It is going to be a lot of hard work upfront. Whether that hard work is actually writing articles or thinking of creative t-shirt designs or using your brain power, that’s what it’s going to come down to that’s what a lot of people miss.
So just realize that it’s not going to be just signup, click a few buttons, and then you’re making money passively while sitting on the beach. It’s going to be signup, click some buttons, put in a lot of brainpower to create great helpful resources that will make you money long into the future because they are truly helpful resources.
Originally posted 2021-02-02 04:37:08.