There are many different ways to make money in today’s world. Getting a job, owning a business, opening a shop, creating content and freelancing are all ways to create income.
These ways typically fall into 2 categories: passive income and active income.
Active and Passive Income
An active income model means that you trade your time for money. Having a job, being a sub contractor or consultant, being a freelancer or any other activity are all methods of actively earning an income. Available working time directly affects money.
The problem with an active income model is that we only have a certain number of hours each day. Longer hours are needed to live the life we want. Stress levels rise and everything deteriorates around you.
Work life balance goes out of sync, quality family time is non existent, relaxation is a thing of the past and our mental health is put under pressure.
Efficiency and productivity become the holy grail but matter what you do, you cannot gain more time. Something has to change!
Usually an active income model means working with a client or an employer. Terms are agreed and money is earned as soon as you start the work.
A passive income model is slightly different. Passive income means setting something up just once. Then doing a bit of work to maintain and earn passively.
This literally means that what you choose to do, if set up correctly, can earn income for you 24 hours a day, 7 days a week.
Quality time is the key here. Set things up properly and those activities will return results over and over again. Creating income while you sleep.
Types Of Passive Income
Building a list of people who have given you their email address, normally in exchange for an incentive. Usually you would use an autoresponder to send a sequence of emails to all of those subscribers to build up a relationship and trust. You can then send them offers for your products and services or for other peoples products in order to make a commission (affiliate marketing). Read more about building an email list here
Write An Ebook
Writing an ebook is another form of product creation. An ebook needs to solve a problem that your target market has. Pick a topic with a lot of demand and research thoroughly to make sure it is high quality and relevant to your chosen audience. Ebooks are sold on digital platforms like Kindle by Amazon. Good self published authors can make thousands of dollars on Amazon each month.
If you have knowledge or skills that can help other people then product creation may be for you. People buy products that solve their problems!
Effort is needed to build the product and sales tools. But if you do it right, this is a great passive income stream.
Selling physical products on Amazon
The Amazon FBA (Fulfilled by Amazon) allows you to advertise your products on the Amazon website. You buy products from websites like Alibaba and sell them under your own brand, Amazon then takes a commission. THIS IS NOT AS EASY AS IT SOUNDS. You need to pick products that are in demand, are not too competitive and have enough margin in for for you to make money.
Building an email list is my favourite way to promote products, programs and services that help to solve problems. You can find out more about building a list here.
I have been very fortunate to build an online income over the past few years, if this is something you’d like to do too you can see here exactly how I make money from this blog.
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