What is Passive Income & How to Create It
The Best Passive Income Ideas To Help You Generate Extra Cash From Anywhere
Have you ever wondered how you can generate passive income without any investment?
Well, look no more and get it done because I’m going to show you exactly how to generate passive income for money to become the by-product of what you love doing by tapping into what the technology can give you.
While planning, creating, and growing your own passive income is not as hard as it may seem, most new entrepreneurs get overwhelmed due to its complex process. That’s why I decided to write a three-part blog series that will help you eliminate the overwhelm, and get a full understanding of what passive income is and how to create it.
So be sure to check out all these three parts of this series – so keep reading!
Part 1: What is passive income & how to create it (you’re reading it now).
PART 2: How to make passive income with ClickBank as a product vendor.
And, PART 3: The quickest way how to get ClickBank affiliates to boost your sales.
But here’s why people struggle and fail to build their own passive income pipeline. They were bombarded by too much information, loads of things to do, and in the end, they failed to put their focus on their business bottom line – PROFITS!
And to make things even easier to help you to get started I put together this training video that you can sign up for free below:
Blogging may first appear as an easy way to make money online. But spending hundreds of hours working in front of your computer without generating some cash is another story.
There are many different ways to make passive income and selling digital products is just one of them. As long as you have an audience willing to pay for it, you can make money 24/7 (if that is what you wish!).
In this three-part blog series, I’ll take you through everything you need to know about how digital products can help you create a passive income stream online.
What is Passive Income
First thing first, let’s talk about what is passive income is?
Passive income is the money that you can generate with or without any active participation in making it. Passive income can also have a positive and remarkable effect on your ability to improve your net worth.
I know that millions of people are looking for the best ways to earn extra cash to pay off debt, pay bills, save for a vacation, or end your homesick working abroad.
Passive income may appeal as an easy to “get-rich-quick” way to make money, but understand that some passive income involves huge investment and some leg work upfront and additional labor to properly maintain it to keep the money flowing.
Examples of passive income
1. What is Passive Income in Property Rentals?
If you have the money to invest in properties, like 30 square meters located in a prime area in Makati in the Philippines that will cost you about $60,000 and the income you can generate is about $3,500-$4,000/year. This is about $300-$350/month.
If you do not have money to invest in properties and if renting out a room in your house is fine with you, then you may want to consider renting out the extra space in your house through Airbnb. Renting a room can range anywhere between $20-$150 per night depending on the location and where you live.
LET’S DO THE MATH
$50/night x 10 nights = $500
$150/nights x 10 nights = $1,500
2. What is Passive Income in Stock Dividends?
A dividend is a share of a company’s profits distributed to shareholders and they normally pay the investors on a quarterly basis. If let says, Apple’s price per share today at $146, and if you want to generate a $1,000/month passive income, then you need to invest about $730,000 for 5,000 shares to generate this, if the stock dividend stood at $0.22/share.
Click here to see the amount of dividend Apple gives to their stockholders.
LET’S DO THE MATH
$0.22 dividend/share x 5000 holding shares = $1,100
3. Selling Online Courses
Creating an online course or eBook is another great option to generate passive income. If you know something well enough to teach you can create an online course or eBook and sell it on your website or you can use a third-party platform like Udemy and ClickBank. But of course, each third-party platform has its own pros and cons.
Normally, if you sell online courses on your website like what I did for my breakthroughs programs, you keep 100% of your profit and you can charge much higher prices from $250 up to $2,000. While on a 3rd party platform, courses typically run between $20-$100, and you earn around 50% of the sale price.
LET’S DO THE MATH:
Sell online course on 3rd party platform:
$20 product price x 30 sales/month = $600
Sell online course on your website:
$250 product price x 30 sales/month = $7,500 or 1 sale of $2,000
Below is the screenshot of my Yahoo mail where I received notifications from ClickBank that I made a sale selling my digital products. This is how money works for you while you are sleeping.
4. Passive Income From Affiliate Marketing
Affiliate marketing involves earning a commission by promoting a product or service made by another product creator or vendor. You will be rewarded a commission if you made a sale as their affiliate partner. Affiliate programs are usually free to join.
Like for example, with my travel website, if someone booked a tour or apply an online visa using my affiliate link, the product vendor will pay me a commission.
LET’S DO THE MATH:
Vendor product price at $30. Affiliate commission set at 50%
$15 commission from vendor x 30 sales/month = $450
5. What is Passive Income as Amazon Associates?
You can get a cut of Amazon’s profits by signing up as an amazon associate. You can share products and available programs on Amazon with your audience through customized linking tools and earn money on qualifying purchases. You’re then paid a commission of 4-8% of the sale price. The more products your prospects buy on Amazon, the higher the affiliate commission you can get.
LET’S DO THE MATH:
$5 commission x 200 sales/month = $1,000
6. Passive Income With Google Adsense
If you already have a website, AdSense works by putting ads on your site that matches your content and audience. Google AdSense provides a way for publishers to earn money from their online content. The payout you can get is when someone clicks the ad from your site. The cost per ad click can go from $0.20 to $15 depending on the niche.
LET’S DO THE MATH:
$0.20/cost per click x 5,000 ad clicks/month = $1,000
7. Sell Handcrafted Creations on Etsy
You can sell arts, handmade pieces of jewelry, and crafts on Etsy. Etsy marketplace is the perfect place for artists, designers, and creative people. You can list your item for only $0.20 and you only pay transaction fees and payment processing fees when you make a sale.
LET’S DO THE MATH:
$20/sale x 50 sales/month = $1,000
This year I decided to share my travel, money management, and business planner printable on the Etsy community. So below is the screenshot of my Gmail Account receiving notifications from Etsy that I made a sale.
8. Lead Generation Email Marketing
Let’s say you have 500 subscribers meaning these are quality targeted lists that are paying you attention, time, and money. If you can get only 3% of them to pay you, you can make money from your email list promoting a new product release, an ebook, or webinar.
LET’S DO THE MATH:
3% of 500 = 15 leads. The product you offer is $100
$100/sale x 15 people buy your product = $1,500
9. Selling Stock Images
If you love photography you can sell your photos and images for commercial purposes. Stock images are sold through Stock photo websites like GettyImages and you can set different price points for each image you upload to the site. The royalty-free stock images are sold between $5-$10
LET’S DO THE MATH:
$5/photo x 100 sales/month = $500
10. Sell Audiobooks on Amazon
Audible is an audiobook service from Amazon. If you’re an author, aside from publishing your e-books and paperbacks you can offer your listeners an audiobook. You can create this audiobook by compiling your podcast recording.
Consumers like audiobooks because they can listen while commuting or working out. Audiobooks are typically more expensive than e-books and paperbacks, ranging from $20 to $30.
LET’S DO THE MATH:
$30/sale x 50 sales/month = $1,500
Can passive income make you rich?
Speaking from personal experience, becoming rich takes a combination of life skills, experiences, hard work, perseverance, luck, and money management (one of the most important life skills I learned to end my financial chaos!).
If you happen to be new to passive income and want to get started without monetary investment, then you can invest your time. For example, if you have some free time to watch your favorite shows per day, what if you were to invest those 2-3 hrs/day to learn how to generate passive income online?
Will you devote your time to exchange that to being rich later?
Because it’s not uncommon for anyone to be able to make an extra $500 or $1,000 extra income/month.
Final Thoughts
If you’re ready to learn how to generate passive income and more importantly, you have your mindset on securing your future by taking this big leap of becoming your own boss, then take my challenge below:
I want to encourage you to go for it! I will walk you through every single step you need to start building your passive income pipeline.
But regardless of if you choose to sign or watch, having your own digital products is the best possible way to make extra cash deposited into your bank account and be able to get your readers on a transformational journey.
Unlike blog posts or webinars, which are only a bite-sized chunk of information, but compiling that information and transforming it into an ebook or online courses can really paint the picture around a topic that you want to tackle.
And I hope you took away some actionable tips from this blog post’s three-part series.
How to Make Passive Income Selling Digital Products
PART 1: What is passive income & how to create it (you’re reading it now).
PART 2: How to make passive income with ClickBank as a product vendor.
And, PART 3: The quickest way how to get ClickBank affiliates to boost your sales.
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More Breakthrough Resources:
How to turn your expertise into income?
Try this 30-Day Be Your Own Boss Challenge to help you build, be in control, and automate to thrive in your business this year.
How to attract high-value coaching clients?
Check my 4-simple steps inside my free online masterclass.
How to crush your short-term and long-term goals?
Check my design your year kit and become who you want to be.
How to find your life purpose?
Check my “IKIGAI” action planner template to help you discover what career or business path that suits you.
About Jeng Cua
After borrowing her lifestyle living paycheck to paycheck, this #WFA (Work From Anywhere) mom wouldn’t let anything stop her from chasing her dreams. Her mission is pretty simple – to help burnout professional mommies to create and implement their business system to be their own boss and maximize their income without any fancy office!