hey friends welcome back to the blog in this blog we're going
to talk about nine different ways that you can make passive income
and for each of those I’m going to talk about how hard it is to get
started how hard it is to make 100$ a month from it and how hard it is
to maintain once you've created the thing in the first place for me
in my business these nine different sources generate around 27 000$
per week these days with varying degrees of passiveness and obviously
this has taken me like eight years to build up so don't expect to
be hitting those sorts of numbers when you first get started but this
is the video that I wish I would have had when I started my financial
independence journey many many years ago let's go for it all right so
when I say passive income I always air quote it because there is
really no such thing as passive income there is no way to make
money without doing anything at all but when I say passive income
what I mean is that it's money that is not directly tied to our time
so let's say you were to write a book if you write a book you publish
a book that book is now in bookshelves you've done the work kind of
once to write and publish the book but now any time the book sells
you make money from royalties that is passive income you could
literally be making money while you sleep because you've created
this thing which is out in the world which is generating income for
you the other thing with passive income is that it always takes a very
long time to get going so if you see any ads before this video talking about
how you can get rich quick by whatever scheme or if you see people in the
comments pretending to bema saying oh my god here's how you can get rich quick
with crypto what's up this number that is all a scam it's notional work there
is no way to get rich quick it is not a thing so if you ‘relooking for a get
rich quick scheme those things just don't exist so you might as well not even
try and the way think of this is that ultimately moneys just a medium for
exchanging value the only way to make money is to provide value and the only
way to make passive income passive money is to provide value in a way that is
not directly tied to your time so please please do not try and join a
get-rich-quick scheme they don't exist I’ve had lots of messages over the years
from people who have tried signing up to aged-rich-quick crypto scheme or a
gambling scheme or a hey here is how you kind of play poker online none of these
things ever work people always end up losing money the only way to make money
is by providing value and so let's talk about the nine different ways that you
could provide value if you wanted to just before we dive in I want to tell you
that I’ve just launched my brand newskillshare class about productivity
creators how to start a successful side hustle that's linked in the video
description skill share are sponsoring this video I’ll tell you more about skillshare later on but I want to plug my own class because I
think it’s genuinely really good and people really like it and it will help you
get tips on how you can start side hustles in your spare time anyway let's get
into the blog all right so let's kick
things off with investing in stocks and shares and in this context the way that
we provide value is by offering up our money providing money and investing in a
service is in a way giving a form of value and so when we give our money to a
company in the form of buying their stocks it makes sense that we would get
some kind of return for that investment and we're starting with this because
investing in stocks is the easiest way to make any kind of passive income if
you have any sorts of savings and they’re sitting in a savings account earning
0.01 interest they're not really doing very much for you whereas if you had
those savings and put them in stocks you could potentially be earning passive
income from the money that's otherwise just sitting there now I’ve got a whole
video called the ultimate guide to investing in stocks and shares for beginners
which is going to be linked over there somewhere so that is a solid half an
hour long introduction to stocks and exactly how they work but the thing that I
recommend for most beginners as anon-financial advisor and this is not
financial advice purely for entertainment purposes only also people say or at least the thing
that I do is that basically all my money that's in stock sand shares is invested in index funds now an index fund is
something like the S&P 500 and when you
invest let's say a thousand dollars in the S&P 500 that basically means
that your thousand dollars is distributed amongst the top500 biggest companies
in the us so you know weighted by how big they are so like you know two percent
of it would be in apple two percent in Facebook two
percent in google two percent in Microsoft and then you probably won’t have
heard of the 500th company on theist but basically all the big us companies
you've heard of you end up investing in all of them a little bit at a time so if you want to get started with that all you need to do
is sign up to a stock broker if you're in the us you can use weeble I think I’ve
got a link in the description if you're in the uk you can use
free trade or vanguard basically whatever country you're in just google the
phrase best stock broker platform your country name and you'll find something that works for you and
the nit’s very easy to be able to invest in an index fund so within our famous side
hustle assessment matrix um we're going to give the difficulty of starting a one
star rating one out of five it's very very easy to get started with stocks how
hard is it to make a hundred dollars a month by investing in stocks and shares
well this kind of depends because it depends on the performance of the stock
market overall so in the last 12 months from 2020 to 2021 the S&P 500 has
actually increased by about 50 percent that is that is a lot it's like gone up
by a solid 50 despite covet and everything going on so if in April 2020you had
invested 2 400 in the S&P 500the fact that it's gone up by 50 means you
would have made 100 a month but obviously this is not the way to look a tit because you know things can go up and down and the stock
market has different level levels of performance depending on what time period
you're looking at but if we average out the last 30 to 50years the S&P 500
has had a roughly 10point something percent return which means every year on
average over the long term it goes up by around 10this is not inflation
adjusted for any economist among us and so if we do some back of the envelope
calculations if we want to earn a hundred dollars a month passively through
stocks and shares we would need around about 12 000invested in the S&P 500
to make that ten percent twelve hundred dollars a year which is a hundred
dollars a month but as I talk about in that
video about stocks over time we have compounding and so if you put in seven
thousand five hundred dollars in the S&P 500 and you left it there for five
years then five years later you would be making roughly100 a month if we go by
this very average figure of 10 a year or if you invested 5 000 in the S&P
500 then 10years later you'd be making 100 a month in purely passive income
again assuming the 10 average so overall how hard is it really to make 100 a
month in passive income from stocks and shares well it kind of just depends on
how hard is it for you to make five thousand seven thousand five hundred or
twelve thousand dollars in savings and put them into a stock market
index fund uh and crucially this is money that you shouldn't need to touch in
the next five to ten years at least so basically how easy is it for you to them
to make that sort of money obviously varies massively depending on which
country you're in uh and what your circumstances are and what your job is but
if you're in the uk or the us where the median kind of average salary is around
about fifty thousand dollars something like that then again depending on your
circumstances it's not that hard to get ten thousand dollars in savings
obviously if you're supporting a family of fifteen people on fifty thousand
dollars it's different if you're a single person again it's different but I’m goanna
give this roughly a three out of five star rating for difficulty of getting a
hundred dollars a month obviously if you live in a country like India where the
average salary is three thousand six hundred dollars a year it’s very very
difficult to make ten thousand dollars in savings overall and finally the third
category in our side hustle assessment matrix is how hard is it to maintain
this income once you've set it up in the first place and we're gonna give this a one star out of five because once you've got the money
in you just like set it and forget it and it's not that hard to maintain there
are other sources of passive income that require higher degrees of maintenance
over time but stocks and shares is a very very easy way to make passive income
and to use my personal example these days stocks and shares portfolio which I’ve
been investing in since 2015 is now worth around about 350 000 and the vast
majority of that is in the S&P 500 index fund now I can't be bothered to
work out the actual inflation adjusted returns for that but again if we assume
a very very rough average of 10 a year then that averages out to around 682 dollars
per week in purely passive income all right idea number two for generating
passive income is to start a YouTube channel this is something I will
specialize in because I’m here on YouTube and I actually teach a course called
the part-time youtuber academy unlinked in the video description where it each
people how to do this sort of thing so let's use our side hustle assessment
matrix and we'll talk about this how hard is it to start a YouTube channel well
I’m goanna give this one out of five stars because it's actually very very easy
to start a YouTube channel you just go on youtube.com you click create a channel and you can upload videos by just filming with your
phone and uploading it in reality it's a lot harder to make good videos and making
good videos is how you grow on YouTube, but getting started on YouTube is very
very very straightforward the real question is how hard is it to actually make
real money from YouTube so again let’s say we want to make a hundred dollars a
month in passive income what does that look like well firstly to be eligible for
monetization on YouTube you need a thousand subscribers and four thousand hours
of watch time it took me six months and 52 videos to get my first1 000
subscribers and if we look at the averages it actually takes on average
90something videos to get to a thousand subscribers so that's quite hard if
you’re thinking you're goanna start a YouTube channel and start making money
from day one you're you know that’s basically not goanna happen it took me
52videos six months to get there um so if people message me like hey I want to
start YouTube I was like look you have to be able to put in the effort and do
this for a very long period of time uh at least once
a week I say for at least two years before you can expect anything in return
but let's say you've hit your thousand subscribers in your 4 000 hours of watch
time how hard is it to actually make 100 a month well on average the kind of
revenue per thousand views on YouTube is around about two dollars so this
varies massively but let's say on average about two dollars per thousand views
therefore if you want to make 100a month you need 50 000 views on YouTube to
make 100 a month let's say you make one video per week and let's assume you’re
not getting any traffic on your older videos that means every video you make
needs to get around about 12 500views and very roughly the average YouTube
channel can expect around about20 percent of their subscribers to equal the
average view count for each video soon YouTube if you had 62 000 subscribers
very roughly very averagely you can expect 20 of them i.e. 12 500 views on each
video and assuming you have nonevergreen content of the long term would need
around about 60 000subscribers to be making 100 a month in reality you make 100
a month a lot before 60 000 subscribers I think I was making 100 a month when I
had like 10000 something subscribers like it was it was fairly early on but
when it comes to assessing how hard is this to do I’m going to give this a 4
out of 5 star sit’s actually very hard to make compelling YouTube videos and
it's very easy to get started but it's hard to do well it's
totally worth it it's a great skill set it's really fun you get to meet people
across the internet you get to learn how to talk to a camera and how-to film
and video edit and it's really great but it's very hard to actually make money
from YouTube finally in terms of effort to maintain like actually getting that
first 1 000 subscribers is a lot harder than keeping it growing because once
you've got a thousand subscribers and once your channel is growing it means
you've landed on a formula that works and so maintaining it then becomes easier
than starting from scratch and so in our side hustle assessment matrix we're
going to give maintenance of a YouTube channel passive income stream to be
around about 2 out of 5 stars to use my example I made 70videos before I
started making any money from YouTube AdSense and these days the YouTube
channel makes around about 12000 a month in passive income from YouTube ad sets
now again this is not entirely passive because I keep on uploading new videos
but actually the bulk of the amount of money that we generate from ads is from
older videos rather than videos that were uploaded this month so with that
caveat twelve thousand dollars a month passive income is run about three
thousand dollars a week thanks to this YouTube channel and thanks to you guys
for supporting it and all that stuff there are other ways of monetizing YouTube
like brand deals and like selling merch and there's all other sort of stuff but
it doesn't really count as passive income through YouTube which is why I’m not
including this in this side hustle assessment matrix idea number three for
making passive income is to start a podcast this is generally easier than
starting a YouTube channel although growing a podcast is a lot harder than
growing a YouTube channel because podcasts themselves don’t really have a
algorithm that’s helping them grow in fact a lot of podcasts grow by having a YouTube
channel which is kind of weird right so how hard is it to start a podcast well
again one out of five stars it's very very easy to start a podcast go on anchor
FM and you can literally use your phone and you can pass your phone around
between you and your friends and you can start a podcast you can use a website
called riverside.fm that I’ve recently invested in as an angel investor riverside
makes it very easy to record remote podcast interviews it's very very easy to
start a podcast but how hard is it to make 100 a month in passive income from a
podcast well again this is not quite passive income because the way podcasters
make money is by relying on brand deals there is no YouTube AdSense for
podcasts and so you need a sponsorship or a brand deal to make any money
through your podcast generally speaking and apparently you can expect to make
around 18 for a 30-second ad in a podcast and 25 per
thousand views or a thousand listens for a 60-second ad so if you want to make
100 a month and assuming you have a stream of sponsorships who are giving you that
level of sponsorship deal based on your download numbers you would need around a
thousand downloads per episode if you have a weekly podcast so you would have4
000 downloads a month and if you’re putting a 60 second ad in there for
25dollars per thousand views that would make you around about a hundred dollars
a month by having a thousand downloads per episode and four episodes per month,
this begs the question how hard is it to, get a thousand downloads per month well,
it’s a lot harder to get a thousand, podcast downloads per month than it is, to
get a thousand YouTube views per, month because again YouTube has so much,
distribution built in, it’s different to podcast also loads, more people are on
YouTube than on, podcasts but if we look at the stats, then it's the top 20 of
podcasts in the, world that get on average more than a, thousand downloads per
episode to use a, friend of mine as an example my, housemate sheen started her
own podcast, around five months ago there will be a, link to that in the
description if you, want to check it out and on average her, podcast gets round
about 400 to 500,downloads per episode this is not bad at, all especially
considering she started, five months ago and had zero audience, when she
started so she didn't have the, unfair advantage that I did when, starting my
own podcast for example and, because she's just launched season two, of her
podcast and has just started, posting videos about it on YouTube that, will
really help the podcast grow and, I’m pretty sure that in the next six, months
she'll be she'll be getting to a, point where she can quite easily make a,
hundred dollars a month from her podcast, so going back to our side hustle,
assessment matrix starting a podcast one, out of five stars making a hundred,
dollars a month I’m goanna give that a, three out of five stars because it’s,
hard but not as hard as maybe monetizing, on YouTube where you have this minimum,
threshold and finally maintenance well, it’s not really passive income because,
you do have to keep on making podcast, episodes because the brand deals are,
associated with that but again once, you’ve stumbled on a formula that works,
once you know how to be a podcaster it’s, easier to continue going once you’ve,
already gotten started as is the case, with most things and so in terms of,
maintenance of the podcast I’m going to, give that two stars to use me as an,
example so me and my brother have a, podcast called not overthinking link in,
the video description if you want to, check it out uh but we make around
about,625 per week from the podcast overall, from brand deals and from our membership,
all right so idea number four for, generating passive income is to become, an
affiliate marketer affiliate, marketing means that you are selling, other
people's products but you’re, getting a percentage of the sales from, those
products now apparently 48 of, affiliate marketers globally earn 20 000,a year
which is 1 660 a month which is, actually not bad at all like people are, doing
very well with affiliate marketing, overall so how hard is it to get started,
with affiliate marketing well I’m going, to give this a 2 out of 5 stars,
basically you can just sign up to an, affiliate program like amazon associates,
so amazon have their own affiliate, program which I think is probably the,
biggest in the world and then once you, have your little special links you can,
post those on your website or on twitter, or on social media or whatever and if,
people buy the product through your link, or in fact buy any product on amazon,
through your link you'll get like some, tiny percentage of the sales so pretty,
easy to get started with affiliate, marketing but how hard is it to make a,
hundred dollars a month well this is, actually kind of hard so let's say you,
had a product that was fifty dollars, that you were trying to sell and you,
were getting five percent commission on, it that would be pretty good amazon,
doesn’t offer nearly as much as five, percent it offers like two or three,
percent something like that and let’s, say your average conversion rate overpeople
visiting the thing versus people, actually buying the product after, visiting
thing let's say that's one, percent which is pretty reasonable for a,
conversion rate you would need 8 000,visits to your website or whatever to,
make 100 a month it's actually quite, hard to get 8 000 visits per month to,
your website to a specific product page, and generally doing well in affiliate,
marketing requires lots of upfront, effort in terms of either building an,
audience or building such domain, authority in whatever space you're in, that
you're sort of organically getting, traffic now other than amazon there are, a
few other affiliate programs that I’m, part of one of them is skill share who,
are kindly sponsoring this video I’ll, tell you about the sponsors segment,
later but skill share have an interesting, affiliate program where if you refer,
someone to sign up to a free trial of, skillshare uh
you can get seven dollars, in affiliate commission just for that, thing so if
you wanted to make 100 a, month from affiliates you would need 15,people every
month to sign up for, skillshare with your
affiliate link, thing how hard is it to get 15 people a, month to sign up with
your affiliate, link well it's not that hard if you have, an audience and it's
not that hard if, you have your own classes on skillshare, like I do i have like nine of them and, so if I want to make money
through, skillshare affiliates I can just tell,
people hey guys I can tell you that guys, I’ve just released my latest
skillshare, class productivity for creators how to,
start a successful side hustle so there, will be a link in the video description,
if you want to check that out like that, would be hopefully so some of you will,
see that we'll click on that link in the, description and then that will be me,
getting some affiliate income from, skillshare for
this video so going back, to our side hustle assessment matrix how, hard is it
to make 100 a month I’m gonna, give this a 3.5 star
rating because, again you need an audience and as we, always talk about on this
channel the, way you build an audience is by creating, useful content putting
it for free on, the internet once a week and doing this, for at least two years
if you just, follow those three steps I guarantee, you’ll have an audience and
you'll be, able to make some kind of money through, this passive income stuff
but that’s, quite hard to do no one sticks to it for, at least two years so
we'll give that a,3.5 star rating but the good news is, once you've created it
and once you’ve, started making money from affiliates, it’s actually quite easy
to maintain, because especially if you have evergreen, content the sword that isn't
relying on, like current affairs or the latest news, the sort that people might
search for, over a long period of time this becomes, like real relatively
reasonable passive, income now if we look at me in my, business uh these days
from skillshare,we make around about eleven thousand, dollars per month in
affiliate income, which approximates to around two, thousand seven hundred and
fifty dollars, per week and from amazon um on average, like it's around about
450 a month from, the amazon uk store and a little bit, more from the us and Canada
all right, method number five of making passive, income is by selling digital products,
now these are products that you create, once like an eBook or a download or an, app or something like that so you create, it once and then you can
sell it, multiple times because selling digital, products doesn't usually have
any cost, associated with it one really good, example is this guy called traff
who I, follow on twitter who made an iOS 14,icon set and sold it for like thirty,
dollars a pop a few months ago and ended, up making I think like three hundred,
thousand dollars in the course of like a, few weeks just because loads of people,
around the world wanted to buy his icon, pack so he put the work into creating,
the pack and now he's selling it for, lots of money another example is my, youtuber friend olio who has made as he, says seven hundred
thousand dollars from, selling his website Tumblr themes since,2014. so, he
made the website themes for, Tumblr uh he sells them and he makes, seven
hundred thousand dollars on, average uh well overall since,2014. that's pretty
cool so how hard is, it to get started making digital, products um I mean,
anyone can write an eBook an eBook, counts as a digital product so I’m gonna,
give this a two star rating two out of, five stars but obviously like again,
money is an exchange of value so the, thing that you're selling you have to be,
providing enough value to compensate to, make up for the price that you’re,
selling it for and that's often quite, hard especially if you don't have any,
experience in this sort of field and how, hard is it to make a hundred dollars a,
month well you know it's very easy to, create an eBook but it's a whole,
different ballgame trying to get people, to actually buy your eBook or buy your,
icon set or buy your app or buy your, website themes and because the market,
around this stuff is so competitive like, you have to be genuinely really good to,
get people to buy your stuff and the way, you get people to pay you money for,
something is that you identify a problem, that they have
you solve that problem, and then you charge money for it and if, you can do
those three things then it's you know I wouldn't say it's easy to, make a hundred dollars a
month but it’s, very doable to make a hundred dollars a, month you just
genuinely have to have, something that solves a pain point that, other people
are willing to pay for so, we’re going to give this a 3 out of 5,stars to make
100 a month from selling, digital products and finally in terms of, maintenance
we're going to give this a 2,out of 5 stars because usually you do, have to
maintain your products a little, bit but it's often easier to do like, it’s
much easier to maintain a product, than creating a product in the first, place
idea number six for passive income, generation is to create an online course,
an online course is sort of like a, digital product but generally online,
courses are in video format in fact this, whole video is so long it could,
basically have been an entire online, course maybe I’ll do one about this very,
topic and in terms of getting started, we’re gonna give the starting difficulty,
a two out of five stars because it's not, that hard to make an on an online course,
but generally you do need to know how to, do video so yeah, you actually could film an online course, on your iPhone or phone
whatever phone, you’re using if you're one of those, android heathens stick
your phone on the, side talk to the phone teach something, so it's not hard
creating one but in, terms of making 100 a month again at, that point your
course needs to actually, be good um and though the only reason, people will
pay for it is if the course, is actually good now you can avoid, having to
charge for your online courses, by using a website like skillshare who, are
very kindly sponsoring this video I, have tons of classes in skillshare I,
think we've got nine on them in total, I’ve been teaching on skillshare since,
September 2019 and I’ve actually just, released my new online class called,
productivity for creators how to start a, successful side hustle where I teach you,
the internet and how you can well create, your own side hustle in your spare time,
without quitting your job if you want to, check this out then the first
1000,people to click the link in the video, description will get 30 off the annual,
skillshare premium membership this is, actually a really good deal I pay for,
skillshare I have been paying you for it, for years even after I started teaching,
on it because it's genuinely a fantastic, place to learn stuff they've got,
thousands of classes and all sorts of, other topics but you should definitely,
check out mine like the nine that I’ve, got there are three around productivity,
now like the fundamentals of, productivity the sort of productivity, equation
which is how I think of, productivity and productivity for, creators I have two
on how you can study, for exams if you're in school if you’ve, got exams to
prepare for those, apparently are really good they've got, very high ratings
and if you've already, had a free trial of skillshare then you, can still use
that offer that if you’re, one of the first 1 000 people to hit the, link in
the video description you will, get 30 of the premium membership and you, can
check out my class which I have to, say is pretty good anyway thank you,
skillshare for sponsoring this video but, genuinely skillshare is a great place
to, teach stuff because you can teach things, on skillshare without directly
having to, charge for them which is why I love, putting my courses on
skillshare it’s, kind of like having something on Netflix, in that the end user
does not have to, pay directly for the product and the, other nice thing about
skillshare is, that it's like the it's sort of like, YouTube in that anyone can
upload a, class to skillshare provided it meets, certain quality requirements
and so it’s, a lot easier than having to make your, own website and create your
own courses, platform and all that kind of stuff so, pretty easy to start we're
gonna give, this a two out of five but how hard is, it to make a hundred
dollars a month, from teaching online courses now this, kind of depends, if
you're going down the skillshare, route then to make 100 a month on, skillshare
you need around about 1700,minutes of watch time which is 28 hours, of watch
time so if you have a one hour, class on skillshare you need 28 students, to
take that class every month and watch, it with a premium membership roughly,
very broadly speaking and that will give, you around about a hundred dollars a,
month at least those are based on my, figures over the last like two years of,
being on skillshare now how hard is it, to get 28 people a month watching your,
class well if your class is actually, pretty good it shouldn't be too hard to,
get 28 people a month watching it if you, have an existing audience it's very easy,
to get 28 people a month watching it, because people already know like and,
trust you hopefully and so they'll watch, your stuff and give you a shot because,
you’ve already built that goodwill with, them but the nice again the nice thing,
about skillshare as a platform is that, they have like their own algorithm so,
the good stuff rises to the top so if, you genuinely have a really really,
really good class and you put it on, skillshare then even if you don't have, an
audience there is still a high chance, that if the class is actually good and,
people watch it a lot and people, recommend it and give it high ratings it,
will rise to the top and it will start, getting recommended to people who find,
it on the skillshare homepage or who, search for it specifically the other way,
of making 100 a month from a course is, to just charge 100 for a course and then,
if you do that you just need one sale, every month so how hard is it to get one,
person a month to buy your course well, again if it's good you know the world of,
online education is exploding so much, every year more and more money is being,
spent on online education especially, with the whole pandemic stuff so if you,
have a valuable skill that you can teach, I think courses are one of the best and,
easy or easiest, one of the best ways of making passive, income because it's
fun to create a, course you can teach stuff you don’t, need that many technical
skills like, making a website or anything like that, just shove it on
skillshare and then, people can take your course and learn on, the internet and
like you know it's just, cool overall and the nice thing is that, once you've
made the course and once, you’re making a hundred dollars a month, from it
maintaining that level is, actually quite easy we're gonna give, that a two out
of five stars because, generally you don't need to update the, course that often
and you can do that, once in a while and you just need to, make sure you're
getting a reasonable, amount of traffic to it and hopefully, that traffic will
grow over time these, days the vast majority of my online, courses at least the
very passive ones, are hosted on skillshare and it's kind, of ridiculous but
these days they make, round about sixty thousand to sixty five, thousand
dollars per month in purely, passive income like I literally do, nothing for my
skillshare classes once, I’ve made them other than reply to, comments and other
than occasionally, plug them in videos and that's like, sixty thousand dollars
a month in, passive income that means this is around, about fifteen thousand
dollars per week, and this makes up the bulk of the twenty, seven thousand
dollars a week that this, business currently generates in purely, passive
income idea number seven for, passive income is by creating some kind, of some
kind of paid membership or, community model now again this is, generally a bad
idea unless you have an, existing audience which we keep coming, back to like
everything becomes easier, when you have an existing audience by, creating
content that has been valuable, over a long period of time very, consistently
that audience knows likes, and trusts you and so when you say hey, guys sign up to my Patrion then some, people are likely to do that
thing the, other way of doing a membership is by, creating a value proposition
that is so, compelling that people would be willing, to pay for a
community-like service for, this if we use patreon as an example my, friend Hannah
witton who's a youtuber, she's got around about
600 000,subscribers on YouTube and I think she, has around 600 patrons 626 last
time I, checked which means if we look at our, patreon stats
which are public she’s, making somewhere between two thousand, and five
thousand pounds or like three, thousand seven thousand dollars per, month in
passive income from this, audience but it's like six hundred, people out of an
audience of six hundred, thousand so one in a thousand of her, subscribers have
signed up to her, patreon so clearly you
know if those, stats are true across the board and they, kind of are if you
look at matt, developers patreon as well you need a, big audience to make a significant,
amount of money from patreon,again this sort of depends on how much, you’re
charging for them and exactly, what value you're providing another, example of
a paid membership community, is my friend and lore who runs a website, called
nest labs and they have a paid, membership community which is five, dollars a
month and she started this, when was it in summer of 2019 she had, zero
audience at the time and she just, wrote a hundred blog posts over a, hundred
working days and built up an, audience such that in march 2020 when, she
launched a membership she had some, paying members for it initially and I,
think last month she's just passed a, hundred thousand dollars a year in,
annual recurring revenue which is pretty, awesome from something that started less,
than two years ago so how easy is it to, start a membership program well it’s,
actually very easy, we can give this a one star because it’s, very easy to
start one you just make an, account on some kind of membership, platform like
patreon but to make 100 a, month you need to provide 100 a month, worth of
value and that's actually quite, hard to do we're gonna give that a four, out
of five stars but the nice thing is, again once you've got that formula once,
you’re making 100 a month it's actually, a lot easier to maintain it because the,
way the economics of membership, communities work is provided you keep, showing
up and providing value in some capacity you know people have already signed up, for the thing so it's not
too hard to, maintain that level of support that, you’re offering them for this
business, we have a membership community for our, part-time youtuber academy
for the, alumni which is called the part-time, youtuber inner
circle and we make, roughly 2 800 a week from this, membership community it's
not very, passive we run like three or four events, per week along with like
twice a day, co-working events on zoom and we have,
lots of stuff going on so it takes a lot, of work but 2800 a week is pretty good,
for a membership community all right, nearly there so idea number eight for,
generating passive income is creating a, business that sells goods or services,
and then automating or delegating, aspects of that business so that the, income
that you generate from it is, reasonably passive this is the stuff, that Tim Ferriss
talks a lot about in, the four hour work week where there are, a lot of
businesses that you could make, where you're selling a good or selling a,
service and then you can delegate, outsource automate and intelligent ways, to
make the income passive so again, using my friend ollier as an example on, his YouTube
channel he talks about his, one million dollar shopify store he, designs
manufactures and sells these, really cool vegan leather kind of desk,
accessories and bags and mouse pads and, that kind of stuff and this was loads of,
work in setting up but now he's got a, team of three other people that manage,
the business and so he spends, proportionately less of his time running, that
business and so it's sort of, passive income for him even though these, days he
still does spend around 10 hours, a week maintaining things equally if, you’re
going down the service route I’ve, got a friend who runs Instagram and,
Facebook ads marketing agency where he, has clients who pay him some I think a,
few hundred dollars per month to manage, their Facebook and Instagram ads and for,
him it's like a small amount of work, initially to set up the Facebook and,
Instagram ads but then it's sort of, automated and he's got a team around it,
and he's used using things like Zapier, to automate aspects of that business so,
that each month he has to do a very, small amount of actual work to keep it,
ticking along so these are different, ways of generating passive income from a,
kind of goods or service based business, but it's quite hard to get started with,
this stuff to get started we're going to, give this a 4 out of 5 star rating,
because again you need to create a, business and it's quite hard to make a,
business that genuinely provides value, equally we're going to give it a 4 out,
of 5 star rating for making 100 a month, in revenue because again you have to be,
able to provide value and providing, value is hard like it's not as easy as,
making an account on a stocks platform, just putting some money in you actually,
have to give value to people which is, kind of hard but the nice thing is once,
you get started like with anything, maintenance is a little bit easier so,
we’re gonna give that a three out of, five star rating finally idea number,
nine for generating passive income is to, build an app or a website or some kind,
of software product that you can offer, either as a one-off or more likely these,
days as a subscription service and, there’s a whole category of this called, sas software as a service now if you, look at the website
indiehackers.com, there are like literally
hundreds of, examples of people who have built, software businesses that are making,
passive income and they share their, revenue numbers and they tell you how,
they got started and they give you their, tips in fact I was recently interviewed,
on an episode of the indie hackers, podcast which is really cool because, I’ve
been listening to it for years and, like been following the website for, years
and I was interviewed around the, concept of starting an online course, like
the part-time youtuber academy now, I’ve had a bit of personal experience, with
this so um when I was at university, I made a website called bmat ninja and,uk
cat ninja so software as a service it, was a question bank for medical,
applicants applying to medical school to, help them do well in the admissions,
tests and this was something that me and, my brother coded completely from scratch
he and I both know how to code we, learned when we were young and so we, worked
over the summer of 2015 to make, these things happen I think in year one, we
made about ten thousand dollars and, in year five last year it was around,
twenty five thousand dollars from bmat, ninja so you know it's pretty good money,
but it was a lot of work to set these, things up and so in terms of starting,
out I’m gonna give this a five out of, five star rating because to make an app, it's actually quite hard you have to, know how to code for the
most part you, have to be able to offer something, compelling and you have to actually,
build it which takes a lot of work and, it’s very hard but it's a lot of fun and,
then once you've made it I’m gonna give,100 a month difficulty a four-star,
rating because again it's easy well easy enough you can make an app but then getting, people to pay for the app is
an entirely, different cuddle of fish so we're going, to give that four stars
but the nice, thing is like with everything, maintenance is a little bit easier
so, we’re going to give that a three star, rating if you like this blog.
No comments:
Post a Comment