As an entrepreneur and educator, I think it’s so important that we learn how to work smarter, not harder — and that we also figure out how to earn more while working less with the secret to make passive income.
Have you ever wondered if it’s possible to relax more often, spend time with your family, maybe learn a new skill? Well, it is possible with passive income. In this article, I will be sharing with you my secret formula for achieving that within a reasonable amount of time!
Passive income is mainly income that requires minimal labor to earn and maintain. It is any business activity in which the person earning does not physically participate. Several passive income-generating ideas need a lot of work, to begin with, like developing a blog or leasing property. Still, eventually, they earn money even when the owner is asleep.
The different ideas I’m going to share with you will help you do exactly that!- Let’s Begin
1. Start a YouTube Channel
Once you create a YouTube channel, you can allow YouTube to run ads on your videos. These are the ads that you see playing before a video, the ads in the column on the right-hand side, or below the video. If someone clicks on the ads, then the YouTube creator gets half of the money that the business paid to run the ad. Keep in mind that different channels earn different amounts, depending on their niches.
For some perspective, some YouTube channels get about 500,000 views a month, which generates about $4,000.
The actual rates an advertiser pays varies, usually between $0.10 to $0.30 per view, but averages out at $0.18 per view. On average, a YouTube channel can receive $18 per 1,000 ad views, which equates to $3 – $5 per 1000 video views.
Breakdown: $5/1000 views, 200,000 views = $1000/month.
2. Start a Membership Website
This is a private site that you regularly add new content to. For people to access that content they have to subscribe to the website. Often times there is content that people can access for free to give them a taste of what is available, but to get additional content or the premium content they need to pay a monthly membership fee.
Depending on what your membership site is about, what it offers to its members, and how premium the content is you can charge different amounts. The range can be anywhere from $5 – $300 per month.
One fantastic thing about a membership site is that it creates that recurring revenue month after month and you don’t have to necessarily do anything additional to maintain it. With that being said, some of the best memberships sites do add new content every month. It all really depends on how you structure your website, and whether you decide to create and schedule your content.
100 x $10 members = $1000/month
Or 10 x $100 premium members =$1000/month
3. Join the Amazon Affiliate Program
You can get a cut of Amazon’s profits by joining their affiliate program. After the quick sign up process, you can share your affiliate links with people who you think would be interested in purchasing certain products. You’re then paid a commission of 4-8% of the sale price. The more products your prospects buy on Amazon, the higher the affiliate commission is.
One of my favorite things about Amazon’s affiliate program is that even if someone clicks on your link and doesn’t buy what you recommend, you can still earn an affiliate commission if they purchase anything from Amazon within the next 24 hours. Keep in mind that to earn enough affiliate income to make $1,000 you need to do an excellent job in recommending products to people who want to buy them.
Plus and Minus: $5/sale x 200 sales/month = $1000/month
4. Market a Niche Affiliate Opportunity
Instead of making a small commission on a lot of products with Amazon affiliates, you can instead choose one, premium product — usually a digital product — and to focus on marketing. You can start a YouTube channel or blog based around that product/topic, start building an email list, or promote it on a social media platform. Your goal is to build an audience that will be interested in the product and who trusts you so that they will feel confident in purchasing the digital product you’re recommending.
will go deep into this particular topic in our next post, you can check Here to check more about affiliate program or get in touch for questions.
$50/sale x 20 sales/month = $1000/month
5. Create an Online Course
Creating a course is another great option to generate passive income. You can sell it on your website or on a third party platform — each option has advantages and challenges. If you sell on your own site, then you keep 100% of the profits but have to drive traffic to generate sales. Alternatively, if you sell your course on a 3rd party platform, such as Udemy, finding customers is much easier, but you won’t earn nearly as much per sale.
When you sell on your site, you can charge much higher prices. Courses typically sell for $100 to upwards of $5,000. Your price is dependent on what your course is about, what value it gives to the students, and how well you market it. On a 3rd party platform, courses typically run between $10-$100, and you earn around 50% of the sale price.
Sell your course on your own site:
10 x $100 sales or 1 $1000 sale
Sell courses on 3rd party site:
$20/sale x 100 sales/month x 50% commission = $1000/month
Passive income also includes a limited partnership or other businesses in which a person is not actively involved. In this case, the person is referred to as a silent investor, for example. Portfolio income is also considered passive income, so dividends and interest would be regarded as passive.
Even if a person already has a full-time job, they would be able to welcome additional income with little to no effort on their part. Developing a way to generate passive income provides many benefits. With this extra income, you can even potentially take early retirement. Moreover, passive income is a backup plan in case you lose your day job.