Although generating sources of passive income doesn’t need to be as difficult as many believe, it’s still clear that doing so seems to come more naturally to some people than it does to others. Luckily, many of them are happy to share their secrets.
Want to learn how you can start earning substantial amounts of money with little effort? Consider the following pieces of advice from the experts:
Pat Flynn Turned Expertise into Profit
Pat Flynn wanted to earn more money in his job at an architecture firm. He decided to pursue credentials that would give him a specialized, valuable skill set. To get the proper credentials, Flynn needed to take a notoriously difficult exam. In an effort to boost his odds of passing, Flynn started a blog about the process of studying for the test.
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His experiment worked. Writing about the material improved his comprehension of it. Flynn earned the necessary credentials, and began earning a substantially larger salary – until work dried up and he was laid off.
During this time, Flynn returned to his blog and found out it was getting thousands of views each day from others hoping to pass the exam. He put ads on the blog to monetize it, then wrote and published an ebook study guide to increase his earnings. In one month, it earned him $7,906.55. This was the first time Flynn realized he could earn good money over the internet.
Flynn now earns millions writing and podcasting about passive income strategies. One of his key pieces of advice? He believes that many people go wrong by attempting to create an “generic” business that will appeal to everyone. In fact, Flynn argues that success is more likely when the intended audience/customer base is as narrow as possible, providing a solution to one discrete problem that potential customers are willing to pay money to solve.
Flynn’s first success came about by accident, but in retrospect, he understands that he achieved that success by using his expertise to serve a very select group of people. Writing an ebook is a great way to establish a source of passive income. Just make sure you’re targeting a specific audience – trying to cast too wide a net is not a recipe for success.
Kevin Harrington Urges You to Look for Unique Product Opportunities
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As one of the original cast members of Shark Tank and the founder of As Seen on TV, Kevin Harrington knows a lot about taking advantage of opportunities that others might miss. His essential belief is that, no matter what industry one is working in, it’s possible to come up with a product to sell to customers, creating a form of passive income that supplements your primary income stream.
Harrington believes that jobs in most industries offer the potential for passive, “continuity,” types of income streams. For example, dentists could offer monthly deliveries of tooth-whitening products to patients in between semiannual appointments. Alternatively, personal trainers could sell nutritional supplements, which would provide a monthly revenue stream outside of in-person training sessions. He suggests analyzing your industry with an eye toward passive income opportunities.
Ask yourself what products you could create with the expertise you have now. If you accept Harrington’s thesis, an opportunity does exist if you take the time to find it.
Tim Ferriss Believes You Should Work Backwards
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Tim Ferriss brought the idea of passive income to the attention of many with his popular book The 4-Hour Workweek. Ferriss encourages readers to see passive income sources for what they are: an opportunity to achieve enough financial freedom to spend the majority of your time focusing on your true passions.
With that in mind, he recommends identifying your base income requirements in order to do so. By starting from the end result and working backwards, you’ll clarify for yourself what steps you should take reach that end result. He refers to a business that uses automation to generate the necessary amount of income as a muse.
Developing such a business is a multistep process. After you have identified your target monthly income, design a business that will generate that amount. Then, automate the process to minimize the number of moving pieces and maximize your free time, all while generating the same amount of money. Although developing the system may be time-intensive upfront, eventually you will find yourself with enough free time to pursue your passions without financial worry.
These three experts have been able to make an amazing living earning money from businesses that require minimal time investment on their parts. If you follow their advice, you may be able to accomplish this, too.