Hi, I’m Tenille and welcome to my channel. Here I teach you about the mindset and the strategy of online business, so that you can create more time freedom and flexibility and more money.
So let’s get to it.
What is passive income? How I have made passive income.
Speaking of money, today, we’re talking about passive income. And is passive income even real, is it realistic to make passive income?
So let’s talk about it. Firstly, what is passive income.
Passive income is usually more like semi passive income, but it’s still appealing because you can definitely earn a more flexible income than your typical nine to five job. Now, a couple of years ago, I was talking to someone that I know about my business.
I mentioned that one of the things I really love about it is making some passive income. And he very quickly said to me, You mean recurring income? And I was like, yeah, passive income is like recurring income.
Because so many people don’t think that passive income is possible at all to the point that they don’t like the word. It’s a triggering word. And oftentimes, there’s people that have worked really, really hard for the income that they have made. And maybe they’ve tried, they have a passive income and realize that it’s not that passive or that it’s really difficult, and it didn’t work out for them in some way.
So is it a reality? Is it real? Is it attainable? Well, I think yes, with a caveat.
How passive is passive income? Typical types of passive income
So I have made some passive income in my business. But it’s not like I can just sit on the beach, sipping cocktails, and money comes in, and I didn’t work for it at all. So I have had multiple times where I have been on holidays, or sleep at the beach overseas, and check my phone or woken up. And I have made sales in my sleep, or while I was on holiday.
And I love that for me, and love that for you as well, if that’s something that you do. And the way that I made passive income was through digital products and online courses, mostly, I do make a tiny bit of YouTube revenue, but definitely not enough to live off.
And that’s on my other channel. And for all of the passive income that I’ve made, I would definitely say it’s more like semi passive income, because it did take a lot of work, and a lot of time, and some money, to put into creating systems that enabled myself to make those sales when I was asleep, or on holiday or whatever.
However, I will say that the income that I made in those more passive moments, is not trading my time for dollars, it’s not selling my time, I did not have to then deliver a in person service or anything that requires a lot of my time to those customers.
That is, I think, what I am talking about anyway, when I think of passive income, it’s more passive than the nine to five, it doesn’t require your time in exchange for dollars an even trade. So when I sell online courses or digital products, it took some time to set that up. But someone can purchase that without me doing anything now and it all happens automatically.
And a lot of my courses don’t require a lot of my time to maintain. But even the ones that I do put time into like some of them we have a monthly call or something like that. It is not a direct trade of an hourly rate for my hourly time. It’s very flexible. It might be an hour a month call in one of my programs and some Facebook comments and other than that people can sign up anytime, no matter what I’m doing and the bulk of the work is done.
That’s the kind of passive income that is definitely achievable. And I know this because I’ve done it. So to summarize that, I think a lot of it has to do with how we define the term “passive income” and knowing to be realistic that it does take some work to set up. It’s an investment into setting up like, if you were building a machine that was going to print new money, you still have to spend time, energy and money to build the machine first, kind of like that.
So selling digital products is not 100% passive. But neither are other forms of passive income, except maybe investing in stocks, but then you need to put larger sums of money into it, and you need a lot of time.
So it might take less hands on work, but it still takes an investment. A lot of the passive income streams that I create, it takes more of a time investment, and not very much of a financial investment. Although still some, like the email system that delivers the digital product, I pay per month for that. But when you look at investing into your business, it is an investment.
So if you’ve got to spend some money or put some time in, you’ve got to compare that like any investment to the return that you will get back. So if it costs a few $100 a month for all of the online tools that you need to sell and deliver your online products. How many sales do you need in return to make a profit on that, and is that viable?
That’s something that you always have to consider. But definitely don’t refuse to spend any money to set it up. Because that’s not realistic, either. Business takes investment.
Now, when it comes to promoting online products, usually there’s ongoing work with that. So we need to create online content, social media posts, and things like that, or run ads to drive sales to that digital product. In saying that, I have dabbled in affiliate marketing, where you can set up something like a YouTube video with keywords and SEO done or a web page and do the SEO so that people are finding it in their search, and can buy the product and make you an affiliate commission, even if you’re not actively promoting it in any other ways.
So definitely don’t think that the only way to promote things to make passive income is to be slaving away constantly on social media all the time either.
You can but you don’t have to. And social media can be a great way to drive traffic to sites like that that are earning for you. But not compulsory either.
I made a commission sale on an affiliate site the other day that I didn’t even know that that site was still up and running something that I dabbled in years ago.
But occasionally, it’ll still make me $80 here and there and commissions. And now that is truly passive, because I don’t touch it at all. But back years ago, when I set it up, it took a lot of work. And because I don’t put anything into it now it is just that ad dollars here and there.
But if I put more work into that, and I had kept it up, that could have grown and expanded and been hundreds or even 1000s of dollars a month. And I know people that do that, I know that that is a possibility.
You just got to know what you want to do, I think have an interest in it that the reason that that site I let it slide is I’m not really interested in talking about that all the time and promoting it. And spending time on that.
So it does help if you have an interest in what you’re promoting are passionate about it and then it’s easier than it feels less like work and then it feels more passive again.
So hopefully you know by now I’m all about the flexibility and time freedom in business. And there are definitely more passive ways to make money than the traditional ways to make money.
Let’s talk about some of the other typical types of passive incomes that you can do. It’s always a good idea to have multiple income streams. And there are multiple different ways that you can make passive income online or in other ways. And I don’t do all of them.
But I can tell you a bit about what they are. So you have online courses and digital products. This is the one that I mostly do. You can sell templates. So I have sold some templates online.
I would count that in the digital product realm but you can also sell them on sites like Etsy. You don’t have to do a physical arts and crafts type thing to sell on Etsy. You can sell digital products on there as well. You can do Print On Demand.
So you can do a design or pay a designer to create a design for you and then sell it on things like mugs and t-shirts. And you can do that on websites such as red bubble, you can do affiliate marketing that we mentioned, where you get affiliate links for products that you endorse and get a small commission.
Each time that someone purchases through your link, you can do dropshipping, where you sell a physical product, but you don’t ever have to stock it in your home, you can order it directly from where it ships from.
And you can even set this up to happen automatically. And the supplier of the product will ship it directly to your customer through a website that you’ve created and own.
But other than that, you it’s all hands off, and you don’t have to actually handle the inventory. Other types of like traditional passive income would be real estate and stocks.
And they sound great, but I haven’t really got into that. And it would obviously take a bigger initial financial investment to get into that market.
Deciding on which income streams you want to add to your business
So when it comes to deciding what forms of passive income streams you want to add to your business, remember that all of it takes some kind of work.
But it is an investment, you can do the work now. And it can be passive later. And that is absolutely possible for you. It will help if you choose something that you have an interest or a passion in.
Because it’s just more interesting to do the promotion and the setup work for something that you are passionate about. And don’t be afraid to do the work and invest into it for for payoff later.
Think about the long term like any investment. And if you are focused on the long term and you’re committed to it and you are selling a good product, then it will work for you and it will pay off and it’s absolutely possible. Do you have any questions or anything I’ve missed or forgot to mention?
Please leave a comment below and let me know and if you’ve made it this far through the video, thank you so much sincerely from the bottom of my heart for watching. I really appreciate that.
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