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Are you tired of trying to figure out what ideas actually make money and what don't?
Wouldn’t it be great if you could have a continuous stream of income deposited into your bank account?
Do you want to learn 7 proven ways to generate passive income?
Passive income is revenue you earn, even when you aren’t actively working; it gives you the ability to make money on auto-pilot i.e. make money while you’re sleeping.
You may create and develop a product or a service and automate it in some way (but it could be in real estate or investing as well.)
The great thing about passive income is that once you've invested the energy, time and money at the beginning to set it up, there’s little or no upkeep to that investment in order to maintain the income stream.
Watch the video below:
(Click here to watch on YouTube)
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Video transcript
Hey, everyone. This is Stefan from projectlifemastery.com. In this video, I'm going to share with you how to make passive income and different ways to make passive income. Now, I already did a YouTube video on the differences between active and passive income. I recommend to go back and watch that video on my YouTube channel.
I explained that active income is essentially when you're exchanging your time for money. That can be at your job, you get paid for the number of hours that you put into your job, or it can be in a business, by you providing services, maybe as a freelancer, and maybe have like a carpet cleaning company, cleaning people's carpets, whatever that is.
You're essentially getting paid for the service, the time that you're providing. Now, active income you can make money from that, you can do pretty well from that, a lot of people do. The challenge with it is that it's not very scalable, you're not utilizing a leverage in any way. You don't have any freedom and it can also be very stressful because if you're making a certain amount of money and you stop working, then you'll lose that money.
You're not making any more money because the money that you're earning is dependent on the time that you're putting in. There's always an exchange of time and it's not automated in any way, whereas passive income is.
What is passive income?
Passive income basically gives you the ability to make money on autopilot, to make money while you're sleeping.
You maybe create a product or service, you automate it in some way, or it could be through real estate, or investing. Essentially, you're just putting in the energy, the time of money at the beginning to set it up. Once it's set up, you can set it and forget it and it continuously makes you money without you having to do anything in exchange for that money.
Now, set it and forget it, I don't really fully believe in that because I think in any business or any investment you still have to keep your eyes on it. You still have to monitor it in some way, to make sure it's still sustainable, but really not much energy or time is required for that, if it's truly passive.
There's a lot of truly passive ways to make money. Now, how do you make passive income, what are the different ways? There's a lot of different ways. I specifically prefer and focus on online businesses as a way of making passive income, and I believe it is one of the best ways to passive income. Primarily, because the Internet is changing the world in so many ways. There are billions of people now that are using the Internet in the next 10 years or so. There's going to be another billion people that are getting access to the Internet that never before had access as well.
More and more people are doing business online, they're purchasing online, less and less people are going to retail stores and what not. There's a big transition happening in the world right now. The Internet also gives you the ability to utilize technology to automate a lot of things for you.
If you have a retail store, you're going to have somebody thats there thats talking to the customers and selling to them. Whereas the Internet, all you need is a website and that website can reach everyone in the world. The website is doing the selling for you. You don't have to physically be there to sell someone your product or your service.
The Internet and technology
The Internet and technology have made it easier for people like you and me to start a business to utilize and automate business and to make passive income. There's a lot of different online business models, I'll share a few of them with you guys in this video.
Online business isn't the only way to make passive income, there's also just traditional business. For example, if you did have a store, you had let's say, a 7-Eleven, or something like that. You can make passive income from that if you hire employees, a manager, and employees to basically run and operate the business for you.
There's going to be a certain amount of income that your business is going to make every month and there's also going to be expenses. Whatever the expenses cover, whatever the excess cash flow of that business, that's going to be the money, the cash flow, the passive income that you can generate from it.
It doesn't require your time to be there to run the business, manage the employees, sell, and talk to the customers because you automated it. That's really the essence of what passive income is. It's automated income. Finding a way to systematize or automate your business in some way. That basically eliminates your time and activity in the business and provides passive income for you.
Traditional business, Internet business, is typically a little bit tougher to make passive income from because it's a business that's dependent on people. It's people operated systems. People operated systems is okay, that's how a lot of companies, like McDonald's and franchises operate.
Businesses or owners, they have a lot of different business but the problem is, with people, there's management required, there's money required. Often more money to empower employees and run it, whereas with an Internet business you don't really require a lot of employees, if any, because you can utilize technology, your website, auto responders, and software to help run everything for you, which is a huge advantage.
Not many people are involved in the Internet business
It gives you more global reach and more leverage in the sense of just utilizing search engines, YouTube, social media, etc. I believe Internet business is more superior as a passive income stream than a traditional offline business but other streams of passive income could be real estate. For example, you could buy an investment property and that investment property, you basically rent it out and the rent covers your mortgage, your expenses, your insurance, etc. Any excess money that you make is going to be passive income that you're basically earning without having to do anything to earn that money.
Even investing stocks, different investments like that or anything that pays a dividend is passive income. Because you're owning certain shares of a company and then you're getting paid either a monthly dividend, or a quarterly dividend, or a yearly dividend that's paying you a certain amount of money based on how many shares that you have, a certain yield.
That's another fantastic way of making passive income. I make money passive, it came in all those different ways except for traditional business. I've got many online businesses. I have stock investments that pay dividends. I also own a real estate investment property as well.
I'll go a little bit more into the different internet business models because the real estate and the stocks, those are pretty straightforward and I don't really specialize in those as much. Let's talk a little bit about online business, online marketing. All right, so what are the ways you can make money through passive income, through Internet business?
The 7 proven ways
1. Selling your own product. There are different types of products you can sell, there are information products, and then there's also digital products, and there's also physical products. Information and digital products are essentially books, video training programs, audio training programs, e-books, guides.
You're basically selling information that solves someone's problems or helps them achieve a certain desire or need that they have, which can be entertainment or humor, or something like that.
Essentially, I use the example and I've got a course on Kindle Publishing. You can write a book or hire someone to write a book for you, publish it on Amazon, sell it as a Kindle Book, sell it as a paperback book, and an audio book. You're just spending time upfront to create the book to write it, to hire it, to get the cover, all that stuff, putting it all together.
Once it's published, and you do some marketing, now it's making you passive income because you can have that product up there on Amazon. People continue finding it and purchasing it and then you get paid money every time someone purchases it. While you're sleeping, while you're on vacation, you're still making money from that book that you published on Amazon.
2. Digital courses/training programs. Another example could be creating your own digital courses or products or training programs or even software can be an example as well. You could spend the initial time to create that, make sure there's a market, a demand for it, sell it online, create the website, have it in the member's area. People purchase, they automatically get access to it, they can download the product or watch it in the member's area.
That's automated form of income and you can automate your marketing as well. You can create content like I am right now on YouTube or on a blog, and that's always up there on the Internet, attracting people and funneling them into your products. That's a fantastic way of making money, digital products, information products, and then also physical products.
3. Amazon physical product. I've got a supplement company, I sell different supplements on Amazon and I spend the time at the beginning just to set everything up. Once it's up selling on Amazon, there's not much maintenance that I have to do to continue making that money. Right now as I'm recording this video, I'm making money from my products that I sell, the books that I'm selling, the supplements that I'm selling, and I'm recording this video right now in Puerto Rico on a Sunday.
When I go to sleep tonight or whatever I'm doing I'm continuously making money. That's the power of passive income. Now, you can also make passive income through affiliate marketing.
4. Affiliate marketing. Affiliate marketing is where you're promoting other people's products or services, and you earn a commission from it.
These companies or they have affiliate programs will pay you a commission for every sale that you generate for them. For example, if you published articles on a blog or on a YouTube channel, or you got the e-mail list, autoresponder, automated follow-up series, or social media, whatever it is, you can automate those marketing to attract people and then funnel them into someone else's product through your affiliate link. You can earn a commission every time someone buys.
That company, they take care of the customer, they deliver the product, the service, they do the customer support, and you get paid just for your referral. That's an amazing way of making money online, one of my favorites. Affiliate marketing is a powerful way as well. There are information products, there are digital products, there are physical products, there's affiliate marketing, but there's also services too.
5. Online service business. You could create an online business related to a service and maybe just like a web design company. You design people's websites. What you can do is you can automate that by hiring other designers to do everything for you and then have a manager and someone that deals with the customers, and runs and operates an entire business for you.
Now, what you've done is automated that business so you freed up your time to basically travel or do whatever is that you want and you're making passive income from that. You can automate services, but again, that's people dependent system business, which often is a little bit more challenging because we have to manage people and stuff, a little bit harder to set up, but that's another viable way.
6. Software. As I mentioned before, there is software, you can create and develop your own software and sell that online. There's also advertising, so for example, right now on my YouTube channel, at the time of this video I earned about $2,000 a month just from the ads that show up before my videos, the little ads that show up on YouTube.
7. Google ads. You can get paid from having YouTube videos and content online. I have hundreds of videos that are right now at this very moment getting thousands of views. For example, I can take the next month off doing nothing, traveling the world but the hundreds of videos that have already published that are getting thousands of views, around 400,000 views a month on YouTube, the advertisements are being displayed.
I don't have to do anything for that, so I'm making passive income while all of this is going on. Advertising is great, you can have the advertising on your YouTube videos, advertising on your blog, your website, content, some called Google AdSense. That's Google's advertising network where people can advertise on your blog or website. You can earn money for that.
Basically just money for different ads showing up. There's a lot of different ways to make money online, but those are the main ones, the primary ways. I specialize in primarily making money from Kindle publishing books, as well as paperback, and audiobooks. I also specialize in Amazon FBA, Fulfillment by Amazon, selling physical products on Amazon.
Amazon does the fulfillment for me, they store the products in their warehouse, they ship the products for me. There is not much that I have to do for that and I sell supplements on Amazon. I also make money when I started my own digital products, such as training and courses and different information that I sell online, as well as making money from software and advertising as well.
Conclusion
I put together a free course, if you guys haven't already seen it, that shares the seven ways that I make money online that have made me an Internet millionaire. You guys can have access to that free course at projectlifemastery.com/freecourse.
There'll be a link below. I recommend going through that training because I give away a lot of free stuff, I show my business, I'm transparent, I show how I make money online, and I show you how you can get started to build your own online business through each of the different ways.
If one is more attractive for you, I share with you the benefits of each and then you can decide, “Okay, I want to go down this path and build an online business and make passive income this way.” The amazing thing about online business today is that it doesn't cost that much money to get started. You can start an online business with less than a hundred bucks, which is pretty amazing.
If you want to spend more, you can. Others are maybe a little bit different. The Internet has made it so that anybody can get started anywhere in the world, I don't care if you live in Bangladesh, if you live in Australia, Europe, Asia, North America, you can get started building an online business.
There's actually kids making money online. I know people that follow me, they're 15 years old that have online businesses that are making a lot of money. Blows my mind, these opportunities were not available for me. I wasn't thinking about this stuff when I was young, but the Internet is really changing the world and I think that's the #1 way to make money, making passive income, especially online.
Check out the free course projectlifemaster.com/freecourse. If I missed any other ways to make passive income, make sure you leave a comment below. I know there are some other ways, like you could loan money or you could set up like an ATM machine, or like a vending machine or something like that. People will do that and they have a lot of success making a passive income that way as well.
I know there are other models like that too, but anything that I might have missed, I'd love for you guys to leave a comment below. Let me know other ways to make a passive income and let me know which way that you're committing to make a passive income too. Because, if you're watching this video then you're honestly interested in making passive income.
You obviously thought about it, you're interested and curious. I would love to hear what type of passive income model, whether it's The Internet, or offline, or real estate that you're focused on building and then maybe there's a way that I can add more value and help you out as you go.
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