.png){kind=small}
"In an age of infinite leverage, judgement is the most important skill." - Naval Ravikant
In modern world, no one is safe. We need to have alternative income or passive income in addition to our main source of income because recession is imminent, and inflation is at its maximum level.
A passive income vetted that you can be successful at something else outside of your work experience, education, or your parent’s selfish wants for your life by using your existing skills to find few customers who will pay you for these skills, rather assuming to settle for one safe customer (boss/company) who generally take advantage of that position for profit.
First let’s understand what passive income is:
WHAT IS PASSIVE INCOME
1. Passive income is actually survival
The idea of earning money without working as hard or being stuck in a repetitive cycle can be tempting and frustrating. I empathize with those feelings.
I really did not know about passive income before 2020 and covid 19. So, I stayed working my corporate job and getting a so-called safe salary. Then I was getting pressured to do more due to Covid losses to balance the workload due to termination of other colleagues. In the end I had to resigned.
The main objective of passive income is not to make you wealthy but to give you security in difficult situations. The advantage of having multiple income streams is that you will always have access to funds when you need them most.
2. Main criticism over passive income
The critics of passive income reject it, claiming that "everything involves labor." According to them, if it involves work, it cannot be truly passive.
Consider online writing. You can start a paid newsletter, sell eBooks, or make royalties from platforms. It is technically "active" work because each concept necessitates work in advance.
But after a while, a lot of that work begins to accumulate. Because of the labor you've previously done, you earn money while you're sleeping. You then earn extra money for any future task you may chose to take on.
Some will object, saying, "Well, that's not passive income." Sorry!!! It is.
3. They totally misunderstood
Everything in life involves effort. Nobody is naive enough to believe they can earn millions of dollars by doing nothing but lying on a beach.
Real estate is likewise subject to this rule. In order to get the sweet, sweet passive income that will allow them to buy a trip to Hawaii and a coconut for themselves, many of the real estate con artists on YouTube encourage regular people to buy real estate.
Real estate does constitute passive income. But it also necessitates active work.
You must get familiar with how mortgages operate. You should comprehend interest rates. You must calculate ROI. You must become adept at identifying the regions where investing is a smart move. You must attend property inspections. And there are the dramas that come with being a landlord.
As a result, the largest source of passive income in history is actually active.
4. Its not about laziness
The goal of passive income isn't to receive free money while doing nothing but relaxing around. The idea behind passive income is to employ technology to reduce labor-intensive tasks.
Leverage should be used in place of the term "passive income". You can leverage your efforts such that over time, a certain amount of work will earn exponentially more money by creating passive income online.
That's what normally happened to all those new Passive Income advocates. You must first get some traction with your audience before your content or business becomes automated, allowing viewers to consume it while the creator is asleep.
But there is a lot of active labor needed before a creator may launch a new digital product. Creator would have never discovered this once-in-a-lifetime chance if he had trained his brain to despise passive income and believe it to be impractical. Count on working. You'll be able to earn money while you sleep on some of that tasks.
“Code and media are permissionless leverage. They’re the leverage behind the newly rich. You can create software and media that works for you while you sleep. An army of robots is freely available it’s just packed in data centres for heat and space efficiency. Use it.” - Naval Ravikant
5. Learn to be passionate about your work
Some folks get scared by active work. They desire passive money since they dislike their current jobs.
You should never aim for 100% passive income. Traditional jobs make us to hate working, just as school taught us to hate learning.
Work online has the benefit of rekindling your love for the work. It can be viewed as art rather than labor. To follow your curiosity is the goal. Find out where it takes you.
6. Using passive income to become wealthy
You remain poor if you are unaware about passive income. Everybody's income should be built on passive income. Otherwise, you place your fate in the hands of a corporate monster and pray that they won't strike you off the payroll in the next month.
My resignation experience taught me a lesson from my one income source. That’s why I started to learn about passive income.
7. Second Future Customer
Your first client is your current routine job. Your bank account receives one deposit. A passive income may begin with no clients.
You don't require many clients. You must find a means to assist a small number of people who are willing to pay you. The greatest strategy to attract clients is to create content that is focused on your passion. People who share your beliefs and are interested in them are drawn to your content by it.
KEY ATTRIBUTES OF PASSIVE INCOME
Less Work, More Money: Passive income is like having a money-making machine that works even when you’re not actively doing something. You might need to put in some effort at the beginning to set it up, but after that, it’s like having a little helper earning money for you while you’re busy with other things.
Steady Cash Flow: Imagine getting paid even when you’re not working! That’s what passive income does. It’s like a regular allowance that keeps coming in, even when you’re taking a break or enjoying your hobbies. This steady stream of money helps you feel financially secure and prepared for anything.
Scalability and Leverage: Passive income has an amazing ability for scalability. It’s like planting a money tree that keeps giving you more and more fruits. Plus, you can leverage your skills and resources to make your passive income multiply even faster, without having to work extra hard.
KEY TIPS TO MAXIMIZE PASSIVE INCOME
Make it your habit. Work on it for the same duration every day.
See humans before they become customers.
Invest at least 20% of the passive income you make in assets, so you don’t have to work your face off for the rest of your life and trade time for money.
Educate yourself along the way. You don’t know everything. The best passion is the one you master through prioritizing learning.
Wear your passive income loud and proud. It’s okay to have a passive income.
10 STEPS HOW TO BUILD PASSIVE INCOME
1. Find the intersection between your interests, valuable skills, and problems you can use them to solve.
2. Develop an offer, create a means of distribution, connect to a simple payment processor.
3. Consider the eternal markets - help someone look/feel better, make more money, have better relationships, find a deeper sense of purpose, or some combination.
4. Build your offer and prioritize the following:
Focus on transformation (outcome) first, features second.
Build for someone 1-2 steps behind you, or yourself 1-2 years ago.
Identify ONE THING the offer should do to make it worth their investment (minimum viable result).
Limit your offers focus to 3 core benefits people can expect (magic 3).
Discard a "building for" mentality, adopt a "building with" mentality.
Create a minimum viable offer (imperfect prototype) that you improve with your customers/client’s feedback.
5. Build a personal brand starting with one primary channel, focused on studying and implement 3-5 creators on your chosen platform.
6. Prioritize making genuine connections with creators on a similar journey as you - seek out people you can mutually thrive, vibe, and expand with.
7. Start thinking early about expanding your reach and getting the most out of your ideas with a fractal-based content system (a fractal is a system that infinitely repeats itself in patterns). Using a tree (trunk, bough, branch/twig are all patterns/fractal of each other) as an example:
Longform (trunk, depth of idea) - newsletter, blog, YouTube
Midform (bough, key points of idea) - twitter threads, IG carousel, linkedin post and carousel
Shortform (branch/twig, width of idea) - tweets, shorts, animations, tiktok
8. Think of your fractal-based content system cyclically - it can function in reverse (single tweet does well, turn into thread, turn into in-depth email)
9. Develop like an artist (rely on study, inspiration, and insight to create) but implement like a scientist (rely on systems, frameworks, and repeatable actions to stay consistent)
10. Stay action oriented - you don't need to be perfect; you just need to produce. Just get started and be consistent.
TOP SUPER 5 PASSIVE INCOME IDEAS TO MAKE USD 500 A DAY OR MORE
1.INFLUENCER
Influencers are well-known figures, and you might follow a few of them. While earning money as an influencer may seem like a distant dream, many influencers make a great living.
A single influencer gig can yield $500 or more with a strong and engaged audience.
Here are a few types of influencers:
Celebrity Influencers: Recognized in their fields, they are approached to promote products, programs, and initiatives. This includes musicians, actors, authors, or athletes.
Macro-Influencers: They have large social media followings and are famous for their influence rather than a specific career or talent. They get paid for sponsored posts.
Micro-Influencers: Though they have fewer followers, they hold influence in a specific niche or demographic. Usually, they have 10,000 to 50,000 followers.
Brand Ambassadors: They share honest experiences with their audience after receiving free products for review. It's a way to enter the influencing world and build a social media following, attracting further opportunities.
2.FREELANCE WRITER
The demand for content is immense across businesses worldwide. As the internet relies heavily on words for communication, there is a vast array of writing opportunities available for those aiming to earn $500 a day.
When starting out as a writer, there are various avenues you can explore, such as:
Blogging
Editing
Technical or medical writing
Journalism
Grant writing
Creative writing
Scriptwriting
Copywriting
Email writing
For beginners, freelance writing jobs are plentiful, even without prior experience. These gigs provide valuable client interaction and opportunities to showcase published samples to attract future clients.
While some entry-level writing jobs may not offer sufficient pay to reach $500 per day, you can expand your portfolio and pursue higher-paying opportunities. Gradually increasing your rates and reaching out to larger companies with well-crafted introduction letters and pitches can help you achieve this goal.
Pro Tip: To maximize your earnings as a freelance writer, consider offering additional services like SEO research and optimization, content audits, and creating content calendars to provide added value to your clients.
3.WEBSITE MONETIZATION
In the digital era, a website is a valuable asset that opens up numerous opportunities for earning money once you drive traffic to it. To begin monetizing a high-traffic website and make $500, aiming for a minimum of 10,000 monthly visitors is a good starting point.
While success can still be achieved with lower traffic, this milestone is a reasonable goal, especially for beginners.
There are several ways to monetize your website:
Selling digital products
Selling affiliate products
Accepting sponsorships from businesses or bloggers
Creating a site membership
Promoting products through email marketing
Placing ads on your website
Earning commissions through affiliate offers
Many individuals kickstart their website monetization journey through affiliate marketing.
4.PRINT ON DEMAND PRODUCT
Print-on-demand (P.O.D.) products have transformed e-commerce, enabling individuals to sell physical items without upfront costs. With P.O.D. services, you can design and sell products like mugs, t-shirts, hoodies, and more without inventory storage.
Creating original, captivating designs is key to success. Upload your design to a P.O.D. platform and start selling online immediately. Profit margins may be lower, but high sales volume can help achieve financial goals.
Popular programs like Etsy, Oberlo, Printify and Printful, along with other print-on-demand companies, offer various products, services, printing locations, shipping policies, and pricing to explore.
5.FULFILLED BY AMAZON (FBA)
Join the ranks of successful entrepreneurs leveraging Amazon's lucrative FBA program to make money. Follow these three steps:
Create an Amazon account and choose profitable products by conducting thorough market research on demand, competition, and profitability.
Ship your products to the nearest Amazon fulfillment center, where they handle packaging, shipping, and delivery upon customer orders.
List your products on Amazon with detailed descriptions, appealing images, and competitive pricing.
Amazon deducts fees for its services, but you'll receive your share of sales proceeds. Monitor your sales and inventory levels through Amazon's dashboard. Learn from Niche Pursuits' case study and unlock your e-commerce business potential.
CONCLUSION
Simply put, passive income is a title. Avoid getting bogged down in little definitions that cause you to overlook the greater picture and make you poor. Your life can be changed by passive income. It functions as insurance. It enables you to work less. It provides you with online sway. Your income sources become more diversified in case a severe, terrifying recession occurs later this year.
Everything requires work, so nothing is 100% passive — get over it!
Use the 80/20 rule: Go from 100% active income to 80% active income and 20% passive income. That’s how you get started.
“If you don’t find a way to make money while you sleep, you will work until you die.” - Warren Buffett
Thanks for reading and if you really like this article, please share it with your social circle.