Passive income is so beloved because your money is off earning you more money every minute of the day. You may be in a meeting when you get notified of dividends that hit your account. You may be waking up when you see your bonds paid you interest. You may be looking at your bank account and see rental income has been deposited. It is a great feeling to know that you are the recipient of income, not the payer. But these are some of the main passive income ideas out there. Let’s look at some of the more “interesting” ideas and see if we can work them into our cashflow system.
First, we need to build an audience. If you have read any of my work, you will know that building an audience is extremely important to your net worth and earning potential going forward. It doesn’t have to be a huge following, but almost anything you want to do outside of a job requires an audience. I am going to assume for this scenario that you have a blog, a YouTube channel, and a Facebook group. From these different media streams, you should have ad revenue and affiliate marketing money already coming.
I want you to dream even bigger than that. The book “Superfans” by Pat Flynn describes what he calls Superfans. They make up about 1-3% of your audience. They are your most dedicated and active fans. They WANT to buy anything that you put in front of them. Take a second and reflect. What are you are a Superfan of? Personally, I am an extreme fan of Pokemon. I have bought every game since 1999, I have all the books, and I watch Pokemon YouTube creators every day. I want to support anyone who makes Pokemon-based content. I am a Superfan. As your audience grows, you want to cater to your Superfans. You are not trying to rip them off and cheat them. You are offering them a chance to invest more with you. They want to pay you back for whatever you are helping them with.
Now, we want to offer them some items that they can buy. Be creative. Remember, the internet never sleeps. On top of dividends, interest, rental income, royalties, and ad revenue, you are creating another passive income source. It is very important to separate yourself from the creation of money. The rich do not work for money. We want our Superfans to have nice items available to purchase AND that will add value to their lives. We have our audience all set up and now I want to brainstorm create passive income ideas.
For this particular creative brainstorming group, we need to have a detailed scenario. John is a full-time nurse and also has a small bakery that he runs from home. John mostly runs his bakery on the weekends and he specializes in making cakes. He has a blog that makes about $1200 a month in revenue. His YouTube channel makes about $1000 a month. He has started to hear from his audience that they would like to purchase some more items of his. Right now he is 100% reliant on ads and affiliate marketing (referring people to Amazon to buy products) for his income. He wants to diversify his income and be in more control of his revenue. He decides to brainstorm some ideas that he can sell in his online shop. Before you proceed, can you come up with 5 ideas of things he can sell in his online shop? Let’s see what he comes up with.
1) Baking music CD. John loves to listen to music while he bakes. He decides to create his own music CD by outsourcing the music creation online. He begins to play his music in the background of his YouTube videos and his blog. He sells his music on Amazon and also makes a physical music CD that he sells online and in his home bakery. After six months, he is making $1,000/month from his music.
2) Baking Recipe book. John specializes in 5 types of cakes. In order to expand his audience, he solicits recipes for cakes to bake. He does a 10-weekend challenge to bake a new cake every weekend. He of course blogs about it and covers it on YouTube. Now that he has successfully made the recipes, he decides to make a luxury recipe book, with about 20 recipes. This is one of his upscale items, so he charges a premium, but it is a very nice product. He also makes the recipe book available via pdf. People that order the physical edition, also get the pdf. After six months, John makes $1,500/month from sales of the recipe book.
3) Baking Calendar. John hears from his audience that it is hard to stay motivated to bake throughout the daily grind. John decides to help solve his audience’s problems (as entrepreneurs do). He creates a calendar with 52 baking ideas; 1 per week. The cool thing about his calendar is that it is customized before it is shipped. The customer tells John what day they shop and what day they bake. So if they shop on Mondays, the calendar will have all the ingredients listed on Mondays. That way before they run to the store, they can take a screenshot of the items, no more hunting through a recipe book. Then, if they cook on Saturdays, the calendar will show how long the recipe takes and the instructions. That way, when the customer wakes up, they can see how long the item takes to bake and can plan accordingly. John makes $1,500/month from his calendar.
4) Video Recipe book. After launching his recipe book to huge fanfare, the audience begged for a video version. Since the client is always right, John created one, ensuring to always have his music playing in the background. John created a digital edition, but also made a very elegant Blu-ray collectors edition, limited to only 1000 copies. The Bluray edition also had a special edition copy of his music cd. He sold the Bluray collectors edition for $100 and sold out in 1 month. That was $100,000 of revenue. The digital edition keeps making him $2,000/month.
5) Baker’s Academy. John decides to go all-in on his final passive income item. He is going to make a baker’s Academy online course. It is not going to be a standard course though, it is going to perfectly align with the 52-week calendar. Yes, he is going to bake 52 recipes and ensure each one is specialized for beginners. It takes him 3 months to finish the academy. It is a nightmare, but he understands that this will set him up for life. He releases the baker’s academy for the price of $600. It is his soul on video. He “only” sells 30 per month. That adds up to $18,000 a month. Every year, John will make another baker’s academy and a different calendar. He has a plan to have 5 levels of difficulty. He can also release some of the videos via YouTube, and spin-off some of the recipes into new recipe books. He quits his day job.
John realized his dreams by creating his own products. If you think that this scenario is outlandish, read the book “How to Blog for Profit” by Ruth Soukup. She became a blogger turned millionaire by launching her own products. The biggest asset of your business is you. People want to buy solutions from you. Make sure your solutions are creative, imaginative, and special. If you haven’t started building your audience, go ahead and start. You cannot start the learning curve until you start curving to learn.
What ideas for passive income did you come up with? By working with your audience, helping to solve their problems, and providing them value, you will become an awesome entrepreneur. The amount of money in the world is near infinite, however, you are a one-of-one. That is what makes you special and why people will become part of your audience. I hope that this has helped you see the world through a different lens. A lens that is full of abundance, wealth, and creativity.
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https://www.pinterest.com/kingmarine/military-family-investing/Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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