The topic of buying and selling blogs deserves it’s own book though and is a very difficult skill to master I must say. I rant about the greatness and simultaneous pitfalls of marketplaces like Flippa elsewhere on this site, but needless to say I think this is it’s own expertise; worth learning more about for a lot of us who know that starting a business (getting momentum) is a lot tougher than fixing up and steering an existing business to greater profits (maintaining and directing momentum).
Getting rich is almost every man’s dream, and with this guide and the valuable information you now possess, you can now actually start working on it. So next time you check your checking account, try to refrain from crying out loudly and come back here to read this article again and give passive income businesses another good brainstorming session. You heard it here first - passive income businesses can be the best solution for a home business and working on your own!
Understanding the DTI ratio and residual income balance can be difficult. That’s why it’s so very important to work with a mortgage lender who is experienced in dealing with VA loans. One of our Home Loan Experts would be happy to explain the details that reflect your unique financial situation, and help you make any necessary adjustments in your budget so that you may qualify for a VA loan.
Bloggers undervalue their offerings so often. It’s tragic in some cases. As someone that buys a lot of digital products, I urge you to price your offering higher than you think it’s worth. Why? Because I can’t tell you how often I buy $7 eBooks, give them a 15-minute scan and never implement a thing. $7 isn’t a big commitment to me. When we get into the $49-range on the other hand, I’m putting that puppy to work. I’ve got to make that money back. I immediately see your product as being of higher value before I even open the file.
The VA generally recommends a debt-to-income (DTI) ratio of no greater than 41% with your mortgage payment included. It’s not a line in the sand, for reasons we’ll get into below, but it’s important to keep an eye on it. DTI is a comparison of your monthly debt payments to your monthly income. It includes any monthly credit card payments, car payments, student loans, personal loans and mortgage.
PS Joel also throws up the whole coaching idea in this book, and whilst it’s not at all passive I just wanted to mention it, because this is one of the ways to create a six-figure business for yourself if you are a true expert in an arena. ie you can use passive income info products (that generate say $30,000 a year) to pull in the customers for your 1-1 or mastermind style coaching service (that brings in say $100,000+ a year).
When you read Russell's new book. You will be amazed at how simple and effective his strategies are. It's like mining for gold nuggets and your striking it rich in any direction you swing! Every chapter gets you one step closer to burning bridge to your old marketing and sales ways. Expert Secrets sent me down a path in story telling and branding I didn't expect to pursue.
It comes with a cart system, promotional code support, multiple payment gateway support, a user purchase history, product bundles, variable pricing, customizable receipts, earnings charts, and more. There are a lot of features here so it’s definitely not passive but once your site is all set up, Easy Digital Downloads offers a convenient way to sell your digital products without much hassle or upkeep.
One great way to generate a passive income is through affiliate marketing. Now, this does depend on the size of your list. Yes, size matters when it comes to your list. Especially if you're looking to make some serious money and do it on autopilot. But, list-building takes time. It doesn't happen overnight. And you need to add value to your list or you become obsolete.
Great article, Joe! I’ve thought about this a lot…whether blogging is passive or not. By definition, it probably isn’t (since the income goes away if you stop), but it FEELS passive. “feels”. Ew. Feelings. Blegh. Anyhoo…even if it isn’t passive, I can’t stop doing it because I love it so much. So if you like writing and interaction with readers, it seems passive, but to anyone else, they’ll have to put in a lot of work for very little gain, so it seems VERY active.
The ABCs of Real Estate Investing – It’s a great overview of real estate investing particularly in multifamily properties. It covers topics on how to perform due diligence, negotiate a deal, and manage properties. It really focuses on the fundamentals – the basic calculations needed to be a successful investor. It’s quite direct and easy to understand.
All this time I’ve felt discouraged that if been studying online marketing and blogging for over five years, but don’t have a blog or a business to show for it yet. But I’ve definitely learned a lot since I discovered Copyblogger and learned the word “copywriting” in 2011. I fell in love with marketing that day and haven’t stopped reading about it since. But this is probably the first time I’ve heard any blogger say to study for years first. Wow, that makes me feel less like loser staring from the sidelines. And I look back at all the businesses ideas I had throughout the years that I would’ve wasted time on, and all of my goofy ideas for marketing as I was still finding my way to the best teachers. Well now I definitely feel like a have a degree in online marketing and blogging, and I’m putting it into action, but not without investing time to learn about my target audience and testing what will interest them.
One of the disadvantages of residual income is that income received for initial efforts or investments is not immediately received. For example, if you spend a month creating a new website to generate advertisement revenue, you might only generate $100 a month in passive income. Had you spent that month creating a website for a company that was paying you, you might have hundreds or thousands of dollars upfront that you could use to pay for immediate expenses and purchases. If you don't have an immediate financial need, delayed income could be an advantage.
But that’s more like a fairytale. You’ll have to put in some effort to continue receiving residual income on the business you started. Talking to your managers and representatives will help them be more productive and run your business better. Marketing your online sales through social media and your network will help earn you more money. But you just won’t have to work at it as your full time job. Think of it as a part time job that can potentially bring in full time pay.
Creating a product to sell is decidedly active, not passive. And selling other people’s products is active too when you have to build your own store and maintain inventory. However, if you use dropshipping, all you have to do is set up a store and drive was web traffic to it. Everything else is handled by another company and you walk away with a share of the profits.
If you're looking to get started in real estate, look at a crowd funding solution like RealtyMogul. It works similar to LendingClub - you commit as little as $5,000 towards a property. When the property is fully funded, you become an owner, and will receive your share of the earnings and appreciation in the property. Check out RealtyMogul to learn more.
If you are a photographer looking to diversify your income stream, putting together styled stock photo packages can be lucrative. For example, a package of 15 wedding-themed stock photos for $10. You can then market this to any bloggers or businesses who are in the wedding business for their use (photos of different engagement rings styles are super popular). Through this method, it’s possible to make a continuous stream of income off of photos you’ve taken once (similar to a licensing deal).
Java Metals is expecting an ROE of 15% over each of the next five years. Its current book value is $5.00 per share, it pays no dividends, and all earnings are reinvested. The required return on equity is 10%. Forecasted earnings in years 1 through 5 are equal to ROE times beginning book value. Calculate the intrinsic value of the company using a residual income model, assuming that after five years, continuing residual income falls to zero.
A benefit paid to a policy holder of disability insurance in the event that the holder incurs a loss of income due to a covered disability. It is calculated by a predefined formula stated in the insurance policy and is generally a percentage of the assured total benefit. In the event of continued disability and the inability to earn income, the residual benefit may be paid up to the extent of the maximum benefit period as stated in the policy.
Another benefit of residual income is that, if the income stream is large enough, one does not need the main focus of his life to be on making enough money to survive. Having a comfortable and continuous level of residual income opens up more opportunities to travel, look into other business opportunities, and even take the time to indulge in his hobbies.
Fundrise – With a minimum investment of just $500, investors of all types can make crowd-funded real estate investments through Fundrise. This means you get the benefits of being a landlord without actually having to deal with owning or managing the properties yourself. Even though we own 2 rental properties, we recently began investing in Fundrise ourselves. We love it because there is no “accredited investor” requirement, making it far more accessible for the average person than the other two options below. Follow the link above to learn more, or read our full review here.
While I don’t have any direct experience with it, I know it can be quite profitable, especially in niches where you have high profit margins and low shipping costs. Vitamins and cosmetics, for example, are two popular drop shipping industries. Anyone can theoretically start a “store” and have dozens or even hundreds of products to offer within a matter of days.
My advice for beginners – especially beginner bloggers with new sites – focus on your site content and traffic for a while, then add your Amazon links once you have a little traffic. So many beginners focus on making money from their links and sacrifice their content building in the process. Without good content and traffic you won’t make much anyways.
Another way to add a course to your WordPress site is LearnDash. This full-fledged learning management system (LMS) offers tons of features for setting up any kind of online class you can imagine. Create certificates of completion for your students or run your class based on a point system. Offer multi-tier courses complete with topics, quizzes, and more. Leave comments on and approve submitted assignments. too.
Before answering this question, let’s quickly define income: Income is all the money that you earn through any means and streams. There are 2 basic ways to earn money: Passive and active income. Active income is where you sell your time for money - this is your regular everyday jobs. You come into office, sell your time for a certain amount of money per hour, and then at the end of the month you collect your paycheck. Pretty simple and almost everyone understands that concept. However, many don't accept that concept as valid, and see it as slaving off your time instead of putting it to good use and things you actually prefer doing.
You need to decide which machines you want to run, get the necessary licenses to operate them (you're selling items so you need to get sales licenses and whatnot from your state), buy the machines and a truck for the items in the machines, find a supplier of the products, and then finally you can secure locations. Finally, you need to service them periodically or hire someone to service them.
Already have something you are ridiculously good at and you actually know how to transfer your knowledge and teach the topic? You, my friend, are halfway there to becoming a course writer for some very popular websites. Online courses have become a real hit and have taken off in sense of popularity lately, as people are starting to understand more and more that it’s not always about diplomas and which school you went to.
However, this comes back to the old discussion of pain versus pleasure. We will always do more to avoid pain than we will to gain pleasure. When our backs are against the wall, we act. When they're not, we relax. The truth is that the pain-versus-pleasure paradigm only operates in the short term. We'll only avoid pain in the here and now. Often not in the long term.
Blogging has a very steep learning curve, but if you jump in head first and take it one step at a time (I recommend tackling only one confusing thing per day) and do one new thing each day to work on your blog, you will eventually get to a place where none of it seems confusing! (If you try to tackle too many new things at once, you WILL get discouraged! I urge you not to do this.)
Residual income is money that is earned on a recurring basis, typically as the result of a single original action. Rather than earning an hourly wage, residual income is typically generated through an initial investment of time or money with the goal of earning continuous payments. Once the initial investment, product, or service is made, the ongoing income that is earned is generally passive in nature.
Tied into this point, I like how Scott discourages big dreaming from the point of view that when you try to solve too big a problem, you’ll normally fail since you don’t have the resources to tackle it – eg don’t reinvent say ecommerce platforms with complex software, instead create an online video-driven course on how to build online stores using WordPress (as an example!).