There’s no one in this world who would probably tell you they want to work more. Most people, even those who love their careers, have a goal of enjoying the financial rewards that stem from their efforts, which means more time off to spend the revenue that comes in.
Passive Income is a concept that has been twisted to mean different things, so it’s important that you understand what’s possible, what’s smart, and how you can take advantage of this “earn more, work less” concept.
Understanding the REAL meaning of Passive Income
The word passive, when it comes to income streams, means it’s happening in spite of you doing work. There’s little to no effort to earn and maintain your income. You’re not having to hustle and invest hours upon hours of your day just to try to eke out some profits.
Unfortunately, many people mistake this concept to mean you do nothing and get a lot in return. There’s no magic money fairy who is going to deliver cash to your doorstep just because you set it as your intention.
The Truth -There is an investment requirement
For passive income to work, you have to have an investment of time or money up front and then set it to a mostly autopilot system. Some people who have money to get started, choose to take several shortcuts to get the ball rolling.
Others who need to get things going on a budget, choose to invest their time setting up systems that produce passive income, and then reinvest in their business once money starts coming in.
Some marketers claim there are all sorts of push button options, but it’s anything but push button once you read the fine print. As long as you understand the concept of Passive Income up front, you’ll be motivated and not disappointed in the fact that you do have to be involved in the beginning.
Set realistic expectations from the beginning
Buying in to the belief that you can see strong monetary rewards for doing absolutely nothing is setting yourself up for a lot of frustration. It’s slanted that way because someone else is trying to make a quick buck off of your inherent desire to work less and earn anyway.
If you filter out the hype, you’ll see that buried below the surface falsehoods is a truth that explains how it is a viable approach to generating income, as long as it’s done wisely and without becoming clouded by misleading statements and promises.
To start your journey to true Passive Income, first learn how to differentiate between products that promise risky endeavors and a true system that will deliver for you year after year.
Fastest Isn’t Always the Smartest
The people who often sell products and courses that promise Passive Income have a goal. Their goal is to sell you on easy, free and fast. If they can convince you that for no cost, in an instant, you can become an overnight millionaire, they know many people will hand over money to gain that secret.
They sell software and tools that promise to do the niche digging for you – the page building, and the traffic generation, too. All you have to do is fork over some money, download it and you’re good to go.
Sometimes, it really is to good to be to be true.
What they usually sell are simple cookies cutter lead pages and funnels that get flooded in the marketplace by all of the other hopeful marketers who wanted this easy, fast and free system to work for them, too.
It’s never wise to work from a place of desperation. When you’re struggling to pay bills and you turn to one of these empty promises as a solution, you’ll not only waste money on it that could have been put to better use, but you’ll delay your success, too.
Keep your end goal in mind when purchasing tools, training and resources
Some of what they sell boils down to questionable traffic tactics. If you’re not careful, tools can sometimes get banned and you could get an account shut down if you’re generating traffic in an illegal or unethical manner.
Stolen content is another fast fix some passive marketing vendors promise. They don’t call it stolen, of course – but that’s what it is. They simply say you’ll have “instant” content.
This content has to come from somewhere, and what usually happens is they create a tool that simply scraped (steals) the hard work of someone else so that you can use it on your own site.
If you’re not careful, another marketer could see it and send a DMCA to your host, getting your site shut down for this practice. It’s not fun waking up one day and seeing your income stream dried up because of an ethics failure on behalf of a tool you were using.
Remember the long game!
Some tools generate low quality leads for you. You might land on a sales page for a passive profit tool and see how they instantly build a subscriber list of hundreds, or even thousands.
But what you’re missing in that equation is the quality of the lead. You don’t want 50,000 uninterested buyers. It’d be better to have 5,000 loyal, relevant buyers. Not only will you earn more from initial promotions this way, but you’ll be able to cater to them years from now, rather than have people fleeing from your list the second they get an email they consider to be spam.
Creating Your Passive Sales System
True Passive Income online means you’ll need to set up systems at the beginning of your journey. It doesn’t mean you can’t be participating in other business branches, such as service provider or product creation, but for passive income, it will help if you have repetitive tasks that can be handled on autopilot by tools or outsourced.
There’s a small learning curve if you’re brand new, but it’s a simple task of tapping into a niche with content and offers. You’ll be picking a lucrative niche with plenty of traffic and commission potential in the beginning.
Some things that will be in your system are one time only tasks, like registering a domain name and setting up the blog. You’ll install WordPress (or have someone else do it and get it ready for the automated portion of your Passive Income system.
Other tasks are ongoing, like the creation of blog posts and email autoresponders – but even those can be outsourced and queued up for even a year in advance. The great thing about passive income streams is that tools – while they may not be push button profits from beginning to end – can set you up for a lot of time off while they do all the heavy lifting.
Setting up your Standard Operating Procedure is a critical step in your system
Having a set of your own standard operating procedures helps you repeat the niche profit process over and over again until eventually, you’re simply outsourcing content, plugging it in (or having someone else do this step), and earning.
Once your blog is set up, you’ll pinpoint the product promotions and other ways you want to monetize your site. Then have a steady stream of content produced, uploaded and linking out to offers that have you waking up to money in the bank each day.
Your posts will serve as the foundation for your income, but you’ll be able to have them shared on social sites to generate more traffic than what a simple indexing by Google and other search engines can provide.
You can create a follow up email newsletter that sends your subscribers who land on your lead magnet page into a funnel of promos week after week. The freebie you create to get them on your list will be one time work, but the newsletter (assuming you make it evergreen) will be automated to work for you for years to come.
Now there may be some customer service involved, depending on how you monetize your niche. But if you’re an affiliate, it lands primarily on the vendor you send the people to.
Just make sure they’re ethical, or else you’ll have people coming back to you (the person who sent them there) with complaints. If your automated, passive income system relies on a product you created in the beginning, then there may be other customer service issues that arise, such as someone not being able to download the file or access something properly.
Scaling Up the Smart Way
Passive Income, once they’re set in motion, are easy to scale up. You can either expand within your niche or, tap into other niches using the same systematic approach. That part is up to you.
Sometimes you can connect two related niche markets, such as diet and exercise – because they connect through a common topic like weight loss. You can do the same with gardening and survival (people growing their own food), or cooking and health.
If you start out with a passive income site built solely on affiliate marketing, you might reinvest your profits into more income streams within that same niche. You already have a targeted buyer’s list, so it makes sense to provide them with more of what they need.
For example, you might outsource the creation of an info product line. Then you’ll get to keep 100% of the sales that come from that, as opposed to splitting profits 50/50 as an affiliate.
You wouldn’t want to add a service like coaching if you wanted to keep the profits passive, because then you’d be tied to customers and clients who hired you to work for them.
Sometimes it’s not only easier, but smarter to just do more within your existing niche. You can simply get more content out there, enjoy more social engagement, secure more subscribers, generate more traffic, and do more product promotions.
Keep on the lookout for new social media opportunities, new slants and audiences. The ones we see now weren’t always around. Those who build an audience early on a platform enjoy less competition and more clout.
If you do want to branch out into other niches, it should be easy for you to simply replicate everything you’ve done to this point to tap into another niche. It helps to have all the steps written down as you tweak your system, allowing you to work less and earn more.
For example, you might have something like: conduct keyword niche research, brainstorm and purchase domain, install WordPress, order 12 weeks’ worth of blog posts and emails, get admin assistant to queue them up, and so on.
Within each step, if you have all of the details written down, it can make it easier for you to outsource to administrative assistant. There are freelance individuals who will work for your company virtually on a per project basis.
So when you have “purchase domain” on your list, go through each detail about what to add to the cart, what to leave off, how to point the servers to your host, etc. This will make your standard operating procedures easy to follow and require you to answer fewer questions along the way.
Stay Aware of Dwindling Passive Income
One of the scariest things you can do is see early success with your passive profit system and assume that wave of income is going to carry on forever. You get comfortable and start spending and enjoying the financial rewards you’ve earned.
But remember, niches ebb and flow in popularity. Even the ones that are evergreen, such as diets, will have slants that trend and then go on the backburner. Just because keto is hot today doesn’t mean it’ll be pulling in the same money for you six months from now.
Besides the niche itself, products that you promote can become outdated or get one upped by the competition. If you’re promoting something and something else is far more popular, your income might sputter. Sometimes, even scandals erupt with vendors or companies and you’re left with a site that is pushing something nobody is interested in anymore.
Traffic becomes less effective sometimes. Depending on the method or platform you’re using, new rules that are instituted might bring your flow of targeted visitors to a grinding halt, and then your money will dry up.
Service providers who carry the weight of your business can flake out on you. It’s always good to spread the workload out among more than one provider so that if one person goes absent, you have a backup who can help out and allow you to keep a hands off approach.
You have to be prepared for these issues and have a contingency plan. Never put all your eggs in one basket. This is dangerous – especially if your life is built around this type of business strategy.
Keep an eye on profits and learn how to spot a dip in your passive income. Determine whether or not it can be shored up or if you need to cut it loose and focus all your efforts on another income stream. Having a plan in place in case of emergency makes implementing a passive profit plan easier to enjoy because you’ll never feel panicked if something goes wrong. Once you learn to plan and carry out a passive income approach, you’ll never want to go back to the daily grind again
Setting Up A Passive Income System requires some time and energy investment upfront. However, with a little bit of effort and maintenance, you should have your system up and running in no time!