Many people looking to build passive income have been inspired by tales of others striking it rich this way, but unfortunately, these are exceptions to the rule. Still, earning enough money on the side to save for major purchases or fund your hobbies is certainly appealing. It’s even more appealing when you imagine not having to work too hard to generate that kind of income.
The process of establishing a source of passive income also doesn’t need to be difficult. Yes, it will likely require some degree of work upfront, but there are many ways people can earn money on the side simply by pursuing their own interests. As the saying goes, when the work itself is fun, it won’t seem like work.
That’s why many people are able to earn a passive income writing eBooks, selling their artwork, or designing online courses around subjects they find interesting.
That said, before you go this route, there are two key points you need to keep in mind if you want to boost your odds of reaching key goals.
Make sure there’s a market
Not every project you’re interested in working on will have an audience. If you truly want to leverage your passions to earn extra money, you first need to confirm there are people out there willing to pay for what you create.
For example, perhaps your goal is to write an eBook and make money selling it online. To make money, you need to write a book that offers genuine value to your customers.
Consider the story of Pat Flynn. This passive income guru started making easy money on the side when he published an eBook study guide for a difficult engineering certification exam. Although this book targets a niche market, there’s no denying that it caters to real customers who find its content valuable.
The same can’t exactly be said for a personal memoir. Yes, if you’re a well-known figure or have had unique experiences, your eBook memoir might attract attention. However, if you’re just writing stories from your life that aren’t relevant to anyone aside from you, your friends, and your loved ones, you may enjoy the experiencing of writing it, but you shouldn’t expect to make much money from it. If making a large profit is your goal, then you should pick a topic that’s interesting to a bigger audience.
This principle applies to any other passion that could be turned into passive income. For instance, if you’re a graphic designer, your personal interest may be in creating abstract visuals. However, you may have more luck making money by designing covers for eBooks. Again, the goal is to create something that’s valuable to a customer.
Make sure people know about it
Some degree of marketing is likely going to be necessary if you want to turn your hobby into a form of side income. Even if you write a widely appealing eBook, you won’t make much money off it if people don’t know it exists.
That’s why you should look into marketing strategies you can use to ensure people know about your product.
Leveraging social media is a good way to start. Social media platforms give you the opportunity to engage with potential customers and grow a following. You can post content they find interesting, target specific types of users with ads, and use hashtags to network with others in your industry. With social media automation tools, you don’t even need to actively maintain your accounts. You can simply plan posts ahead of time and publish them at scheduled times.
Depending on the nature of your product or service, you might also be able to use affiliates to help you make more sales. Going back to the eBook example, say that affiliate marketers agree to promote your eBook via their own sites or social media accounts. In return, they get a percentage of each sale attributed to their efforts. This may mean sacrificing some of your own earnings, but it’s a hands-off way of making sure more people know about your project.
Finally, consider getting in touch with relevant people or publications and offer a free interview or free sample product. An interview can be a strong promotional tool because it gives you a chance to discuss your product in detail while reaching a wide audience. Offering reviewers free samples also gives you the opportunity to get the word out without doing much work on your own.
None of this is meant to discourage anyone from using their passion to earn more money on the side. It’s simply worth noting that you’re more likely to earn money if you plan ahead before diving into a project. Keep these points in mind, and your odds of success will increase substantially.