Last updated on January 12th, 2022. Posted in Developing Products Customers Love.
What are the best ways to make passive income online? Is it even possible to make passive income online...or is it all just a bunch of scammy nonsense? Well I'll tell you, it's totally possible to make a really great income online passively, and that's exactly what we're gonna discuss here.
Here are links and resources mentioned in today's video. Enjoy!
Alright, now there are many, many different ways to make money and passive income online. The big question is, which one's right for you?
Here, we'll look at just three of the most legitimate ways for you to start earning passive income online so that you can find the one that best fits you.
If you remember the world before the internet, then you'll be familiar with this business model. This is the business model used by newspapers, magazines, radio, and television.
The concept is simple enough: Build an audience large enough around an area of commonality, and advertisers will pay you to gain access to the audience you've grown.
And this of course has spread online and become a widely used business model on the web.
Online, this could be the model a blogger uses to earn passive revenue through Google Adsense. A podcaster could have sponsors for each episode of their show.
Or, a YouTuber could make passive income though ads that run on their videos.
Personally I'm not a huge fan of this model for a few reasons. Primarily, I don't like this model because I hate advertising. I run ad blockers, I don't watch TV, and can't remember what the last billboard was trying to sell me.
I find advertising annoying, intrusive, and lazy. I think advertising is a tax levied upon marketers who don't have any better ideas.
The other challenge with this ad-based model is that it can take a long time to build an audience big enough to attract advertisers.
And further, passive income from ads can fluctuate wildly and be very unpredictable.
The YouTube adpocalypse is all the evidence you need to think twice about this model.
But then again, plenty of entrepreneurs do very well earning passive income with this model. In fact, this is how Twitter, Google, and Facebook make the vast, vast majority of their revenue.
So, you'll have to decide if this sort of model right for you and your business.
If you don't know, SAAS stands for Software As A Service. So in other words, any kind of online software service.
Slack, Google G Suite, and smartphone apps are all examples of Software As A Service.
Here, you're providing software to the open market as "on-demand" applications. In other words, anyone at any time can sign up, install, and/or download your software application and begin using it.
What's great about this passive income model is that once it's up and running, it's largely automated. In other words, you go through the effort to create the software application once.
Then, duplicating the software for each new user is essentially zero cost to you.
So while a lot of effort and investment might go into initially developing the software, once it's built it can essentially be sold an infinite number of times with zero additional overhead costs.
I love this business model and have even been involved in a few of these sorts of projects.
The biggest downside is getting the software built initially -- again, whether that's a smartphone app, software that runs on a web server, or even something smaller, like a WordPress plugin.
Unless you're a developer yourself, it can be very challenging to find reliable people to build whatever it is that you want.
But if you can pull it off, this can be a very lucrative (and passive) business model that you should seriously consider.
This third and final model is my favourite, but it can also be the most competitive. Here, you uncover common problems or challenges that a specific audience is facing, and then develop a solution for them in the form of an online course, a workshop, or an ebook.
This can be a great way to use your expertise and experience in a certain area to help others get what they want.
I think of this as a venn diagram: An overlap between what you're good at, your skills, and your preferences (aka: your Skill Stack), and the problems and challenges that a specific market has.
And, the best solutions that you develop come in the form of digital products, like the aforementioned ebooks or online courses...
...or even things like templates, guides, or even small applications and software. So here, we can begin overlapping with the previous business model, the SAAS model.
And what's great about digital products is that you can set up an automated system to allow customers to order your product, and get it automatically delivered to them...
...24 hours a day, 7 days a week, 365 days a year, anywhere on the planet! I
In other words, you can set it all up to be largely hands-off and completely passive.
However the biggest challenge with this model is finding and attracting the audience you seek to serve. SEO, content marketing, and (if your pockets are deep enough) online advertising can all help with this.
So there's a look at three big ways to earn passive income online. Now a word of warning, while it's exciting to start dreaming up projects and ideas to begin earning revenue online, none of these are effortless...despite what the furus tell you.
Each takes a lot of time, effort, and patience. That said, they're all definitely worth exploring!