Ultimate Blueprint on How to Make Passive Income

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Hey guys, it’s Sharon from Digital Nomad Quest. And today I want to give you guys the ultimate blueprint on how to make passive income. Now again, let’s back up and talk about what passive income is passive income is income that takes little time and effort, it can require a lot to get started, but not much to maintain. So you take advantage of systems of automation that allow cash flow to happen without requiring a real time presence. So there’s a bunch of ways to make passive income. If you saw my previous video on how I made $6,000 a month in passive income, you know, I talked about five ways that I really monetize those channels and was able to make passive income through those but real quickly, a few ways might be ebook sales, Amazon FBA, merge by Amazon digital download sales website, as there are tons of ways to make passive income. So let me drill down on how to choose your passive income channel. First of all, what I want to emphasize is all of these methods actually work. I’ve literally tried a bunch of these methods, and each channel actually made me a few dollars each. So I know that it works, even Kindle books, I sold some Kindle books in the beginning that work every channel, I moved on to work. And it really required just patience and dedication to really start making money off of those channels. But you should make sure that you choose a passive income stream that is, you know, ethically sound and you’re not trying to scam people or anything like that you’re trying to provide value for the world. So something Pat Flynn told me in our interview was that when you’re making businesses, you should try to think of what can actually make the internet a better place. Alright, so now that we’ve talked about that, the next four questions you should ask yourself is what you like what you’re basically passionate about. Number two, what you’re good at number three, how much money you have. And number four, how much time you have, the reason why I asked these four questions is that if you want to dedicate your time and focus on one passive income stream, which is what you should do, you should always focus on one thing first before you move on, which is what I did. So with Etsy, I made sure I started making a good amount of money on it and mastered it until I moved on to the next one, which I believe was merge by Amazon or Amazon FBA. So you know, I moved on to different income streams after I mastered it. So if you want to figure out your focus, you should figure out your passions, you should know what you enjoy. Right. So for me, I chose Etsy because I enjoy graphic designing, I enjoy making creative things that are visually appealing, when you enjoy what you’re doing, it’s a lot easier to focus on that passive income stream and and work on it long term. Because passive income is a long term play, right? It takes time to build up these income streams, you’re not going to get money right away, right, you have to do some work. So it is important to figure out what you enjoy. Number two, what you’re good at, it’s the same thing, right? If you know your strengths, it’s just a lot easier to work on those passive income streams that align with your strength. If you suck at writing, maybe blogging is not for you. But if you’re good at video, maybe YouTube is good for you. And there are tons of ways to mind monetize those, which I’ll talk about in a minute. Or maybe you are passionate

about real estate, and you know, you’re good at it. So maybe your strengths are in the numbers. So you’re good at calculating which properties can cash flow and start making you money as buy and hold properties. If you’re good at that, then maybe that is an income stream that you want to pursue. So you got to figure out where your passions and your strengths align. And that’s going to be that sweet spot, right. But number three, and four, I asked about your time and your money. So some income streams require way more capital to get started, and maybe less time to start building those passive income streams. And some might require a lot more time, but barely any capital investment, you got to figure out both how much capital How much time do you have, if you are low on funds may be real estate investing isn’t for you, though, there are ways to finance deals without using your own money. But I’m not going to get into that at all. So or maybe you want to program an app, but you want to hire someone to do that, that might cost a lot more money versus merch by Amazon. If you’re good at design, you could do it it for free, you could just use Photoshop and upload designs on to merge by Amazon and make money through that channel. So there you have to study these different income streams and see how much capital and time they require and how much you have yourself a while back like three years ago, I created this infographic on methods to making passive income. And in my opinion, there’s two types of methods. There’s one that’s more shorter term. The other one is more of building a passion project, building a brand building something more long term, some of these can merge. But I want to kind of separate the two so that you guys have an understanding of what I mean real quick. So this is more of a generalization. And I basically broke down like maybe some income streams might take less skill. I made some generalizations in this infographic. But basically, on the on the left side, I put methods that were more shorter term, the right side, that’s more of a passion project. And on the short term side, I tried to categorize different passive income methods from lower barrier of entry to higher barrier of entry, depending on what your skill sets are. And maybe some of them on the bottom may require more extensive knowledge in certain areas versus the top might require maybe less, maybe it just requires some writing or things like that. So it’s kind of generalizations. But basically, what I was trying to say is that there are these shorter term methods to make passive income where you’re not exactly building a brand you could be but you know, if you’re selling a bunch of Kindle books are going to maybe be under a bunch of pen names, you’re not really building a brand. Or you’re investing in stocks and getting dividends or buying buying hold properties where you’re not really building a following or brand. So you’re not building an audience. But these are ways to make income. And they’re a little bit more shorter term. And what I mean by that is you’re basically turning out products and hoping that they’re going to sell maybe on marketplaces, like, for example, Kindle books, you’re going to put that on the Amazon Marketplace, digital downloads you might put down on the Etsy marketplace, these are dependent on the sites that are already out there that can help you make money money. So yeah, these products, you’re just turning out more products and hoping that they’re going to sell on different marketplaces. That’s just some example of what I mean by shorter term in terms of longer term I meaning like you’re building a following, and you’re building a strong brand or business, however, you’re not going to see those gains until later on when you actually have that following, right. So maybe you’re building a YouTube following, and you’re not really monetizing your channel until later, usually, because that’s when you get money from ads, you might start promoting affiliate links, you might get sponsorships, you might sell advertising space. And then you might sell products, like courses, ebooks, apparel, so all of this happens more later, when you’re building that following, right, it’s more of a long term play because you’re trying to build true fans that are invested in you. And then once you have that, you can turn out

products that they might invest in, if you think they’re going to get value from it, and they want to support you. So if you go that route, that’s going to take a longer time. Usually, before you get started with all of this right, you should track your net worth. So I recommend using Personal Capital. And that’s how you can track your net worth and your debt figures online. Because that’s how you’re going to know how much money you currently have to invest in passive income streams, right? I said earlier, just figure out how much time and how much capital you have, right? So Personal Capital will help you in figure out your net worth. So I’m not going to talk about each individual short term passive income streams that I call them that but you know, they still take a lot of time to build up, but I’m not going to go into it as much. So I’ll quickly review this infographic where I talked about the different methods, I’ll just list them off, because it’s going to take some time to talk about each one of them. But you know, as long as you figure out your your strengths, your passions, your time and your capital, and then figure out what matches with different passive income streams, then you’re good to go. You just need to figure out what works for you if you’re trying to build a brand also, or if you’re trying to do these shorter term passive income streams, you just gotta figure out what works for you. So I suggest once I list these off, you should kind of go in to researching these different income streams also talk about it more my channel in depth with each of these income streams. But let me just list them off. There’s Kindle books, digital downloads, selling stock photography, niche sites, selling physical products, or Amazon FBA or drop shipping, lend money to others with interest mutual funds, and long term investment stocks, computer programming, you build an app and you get those sales or monetize through ads, and then buy and hold properties. Then the other side, it’s growing a following through blogging, YouTube, podcast, or whatever, as a content creator. And then you develop that following that invested in you. Once you do that, you sell ad space, or you do ads through Google AdSense or other platforms like that. You can also make money through affiliate marketing. And you can also sell a product. So you might innovate your own relevant product based on your brand. Or you could do like video tutorials, courses or ebooks, you can create a community and create membership fees. So there’s a ton of ways to make passive income. These are just some ways but you know, there’s so many more and this is just to give you an idea, but mainly This video is to try to give you the blueprint on how to think about it all. So then you can go into it with the right mentality knowing what to expect. So to recap, number one, everything works. You just have to focus and be persistent. Number two, you should figure out your time, your capital, your strengths, your passions, and figure out what passive income stream aligns with all four of those things. And then number three, you should figure out if you want to build a bigger brand, or you want to do some of these shorter term income streams. Have you guys liked this video and comment below if you are thinking about pursuing a passive income stream? Which one are you thinking about? And let me know in the comments, and make sure to subscribe and hit that bell button to get notified for my latest videos. And thanks again. I will see you guys next video.

Transcribed by https://otter.ai