Episode 37: 25+ Passive Income Ideas That Will Blow Your Mind - Part 2
In this episode we cover:
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On this episode of the personal finance podcast, we're gonna talk about 25 plus passive income ideas, part two. What's up everybody, and welcome to personal finance podcast, I'm your host and founder of dollar after dollar.com. Today on the personal finance podcast, we're gonna be doing part two of the 25 plus passive income ideas that you could start right now. And if you haven't heard part one of the episode, go back and listen to the last episode, because I'm gonna preface in that episode, why we're doing this, why it's so important to increase your income and have passive income, and why anybody would ever want to pursue a side hustle or a passive income idea. And the bottom line is, you want to increase your income so that you can invest more money, so that you can create financial freedom for yourself. And that's why this is so important. And once you start stacking up these income streams, you're allowing yourself to buy your freedom. And that's the most important thing that money can do. Most people will use money to buy stuff, and that's how they get into sticky situations. But if you use your money to buy freedom, every dollar you put towards a business, or every dollar you put towards an investment buys your freedom, it buys your time back. And if you understand that, then you are miles ahead of everybody else who doesn't, because the majority of people live to consume, but if you live to produce, you'll be able to consume whatever you want later in life. That's the amazing thing about this. So without further ado, let's get into part two of the 25 plus passive income ideas, let's get it. Number 13 is buy a profitable business. Now there's two ways that you can do this. But my favorite way to buy a profitable business is to use what's called seller financing. And I learned about seller financing. In the real estate world. When you buy a property and seller financing in the real estate world, the seller becomes the bank. So let's say you're buying a property from someone, well, that person immediately becomes the bank because what you ask them for is seller financing. And what they do is they take a loan, and then you pay them every single month your payment. And it's a win win situation because they collect interest. And if you default on the property, then they get the property back. And it's a winning situation for you. Because you don't have to go get a bank loan, go through the process of getting making sure everything is approved. So you can get that loan, negotiating your interest rate all those pieces, all you have to do is work with this specific person. And this is a great strategy, especially if you have a lot of bank loans out on real estate. Well, what if you did the same thing with small businesses, maybe you want to buy a business as as a passive income idea, you know that they have employees there, they have a manager that operates that business, but you want to go ahead and buy a business, but you don't have the cash to be able to buy the business outright. What if you did seller financing, you worked with the seller, maybe they want to retire and you said, Hey, I'm going to give you monthly payments on this, you're going to collect interest as well. So you're going to be actually making more money than what the sale price is. And if I default on this, you get the business back. It's a win win situation. And this is fantastic for people who want to retire who just want cash flow, they want to maintain the amount of money that they were earning before Well, this is going to help them do that. So buying a business with seller funding. So there's all kinds of businesses, you can do this with anything from like sweat equity businesses, what I mean by that is businesses like lawn care, cleaning services, all those types of businesses have owner operators that want to retire one day, if you offer them something like this, it's something nobody else has ever offered them before, they've probably never even thought about it. So it's an opportunity for you to get in with low money down, you put down a down payment just as you would with a house. And then you go ahead and you can operate that business and reap the rewards of the profits. Number 14. start a podcast Now let me tell you something about this whole process of starting a podcast that I have learned if you think about it. And if you look at the numbers, there was well above 100 million YouTube channels. So if you start a YouTube channel today, your chances of success are extremely low. Because you're competing with 100 million other YouTube channels. Can you be successful? Absolutely. You can be successful. If you have great content, you can be successful. But let's think about blogs here for a second. Now there's over 300 million blogs. So now you're competing on Google with 300 million other blogs. It's a lot harder to stand out within blocks. Guess how many podcasts there are. We just reached over a million podcasts. And the cool thing about podcasts is we are still in the early days now it feels like everybody in their mother has a podcast and a lot of people have started podcasts but what happens in podcasting is a lot of people quit what they call it is pod fading, but a lot of people will quit. And the opportunity in podcast is if you can build up An audience, you can do affiliate marketing, which is you recommend products, and people click on those products on your link that you recommend and you truly use that product, then you get a commission sale on that. You can also make money on ad reads. Now ad reads can become extremely profitable for people who start a podcast, but you have to have an audience First, you have to have great content to be able to get to that point. But starting a podcast, especially around something you love, may be a great opportunity for you. Because if you do it simply, you don't have to get all technical and use all this fancy jargon and things like that, if you do it simply it will take you 510 hours a week. And all you have to do is tweak it and make sure your episodes are right, and you're talking about things that you're interested in. So it's a fantastic way to get your message out there. And specifically, if you just focus on the content, don't focus on trying to profit, but focus on serving other people, you're going to be in a fantastic position, you're going to grow over time, the thing is you got to stick with it for the long haul. So I think podcasting there's still a fantastic opportunity out there. Number 15. Create your own journal. Now this is one of those things that it just shows that there's endless opportunities out there on the internet, there's a multitude of ways to make money. And creating your own journal is one of those examples, I have friends who have created journals, meaning little notebooks for people to journal each day, they give them timelines and outlines and things like that, that they can do to achieve certain goals, or just to free their mind or for therapeutic reasons are all types of different journals are out there that people will buy. And they will pay 2030 $40 each journal and a lot of times you have to buy three or four journals a year. And all you have to do is create one journal and sell it to an audience. And that can be a recurring revenue for you for a long period of time, especially if people really buy into what you're doing. And if you have a great message behind that journal, why those people should be using those journals. And they have results based on using those journals, you can have a fantastic revenue source there, it's really easy to create your own journal, there's a website called blurb, and you can go on there, create your own journal, you can sell them on Amazon, you can sell them on your own website, it's fantastic, simple way to be able to create another income stream number 16. And this one is a really high earner if you do it right, but create a high value course. So there's a wealth of information out there and a lot of people are creating courses. But what a lot of people don't do in their courses is create high value courses, because what they do is just put a small amount of information into a course pack it up and try to sell it to you for 200 bucks. And what happens is a lot of unhappy people get to the end of that course. And they really don't get that far. Now, I've been through a lot of courses that are absolutely terrible. But I've also been through a lot of them that have given me a multitude of information. And sometimes the free ones have the best information, a lot of times those free ones should should actually be charging. But what you're going to find out is if you have an expertise somewhere, and if you have a lot of knowledge in something, it could be anything from Hobby, so golf, hunting, fishing, hiking, knitting underwater basket weaving, it doesn't really matter what it is, you can put a course out there on there. So you can go anywhere from there's there's websites called Coursera, which is a high value, I think it's 40 bucks a month to use Coursera. But that's what a lot of high value courses use, or there's websites like gumroad, which is absolutely free, and you could put out a course. So there's so many ways to do this, especially if you have a specific audience, then it's a fantastic way to build an additional income stream because all you do is you create your course. And it could be a video course it could be a text course it doesn't matter. But you create your course put the information online and offer it to people and make sure it's high value, because that's what's going to create the income for you. If you have a terrible course words gonna spread. If you just do it halfway, you're never going to make money on that course. But if you make a fantastic course, the best course there ever was on that subject, you're going to make money because words gonna spread, people are going to share it and say, This is how I learned so much from this, you got to take this course, make people want to tell everyone about it. And that's how you make money on it. But if you look across people who are creating courses online, the best courses, they make 20 3040 5060 $70,000 a month on their course, there's a guy named jack, who created a piano course called piano in 21 days, I listen to his podcast all the time. And he just hit $120,000 in one month on sales for his course on piano in 21 days, because it literally teaches people how to play the piano in 21 days. And it's an extremely high value course that you can use. And he's making tremendous amount of money on it. And inside those courses, you can make money on affiliates and things like that as well. But creating the value for other people is what truly matters. But a few other ideas for courses just so you have the ideas in your head, how to start a home gym, cooking, yoga, how to negotiate your salary, how to create a pitch deck, how to teach your kid golf, sales dating, the list goes on and on and on. But think through your expertise. What do you know the most about and can you create a course on that. Number 17. If you have an audience once again, you can host a virtual summit. If you don't know what a virtual summit is. It's basically like having a seminar. On zoom or online where you can have a large audience watch presentations that you put together. And what you do is you host it with other people. So you collaborate with other people that are in your niche, or whatever you do. And you put together a summit together, people will pay 100 bucks for this, they'll pay 100 bucks, and you put out high value content, they'll come every single year to do this, because a lot of people don't want to go fly across the country and go to a seminar when they don't have to, especially if you're introverted. And this is the best option for them. This allows them to learn as much as they possibly can from a bunch of different speakers about a very specific topic. And you can do it for like a one two day event. And it's all digital, it's all online, it's a very cool way to create high value for your audience and make a passive income number 18. Now this one isn't as passive as it could be, but creating an online newsletter. So there's a lot of newsletters now, I don't know if anybody subscribes to them, or if you've seen any of them that are behind paywalls. And there's, there's websites like substack, where you can do this, what's happening is a lot of high end bloggers who have really good content are now putting their content into these newsletters. And what you do is you set up a newsletter, and then create audience now if you have great content, your audience is going to come. And if you think about this for a second, let's just say that you have 10 subscribers to this newsletter that pay $10 a month, well, that's 100 bucks every month. So if your content is great, people start talking and spreading your message. And let's say you get 1000 subscribers at $10 a month, that's $10,000 a month that you can make. And writing a newsletter takes 234 hours, two hours to write it one hour to edit it and one hour to make sure the formatting is correct, it's not something that's gonna take a tremendous amount of time. And for something like that for $10,000 for 1000 subscribers, that's a massive income stream. And that's somewhat passive, because four hours a week, that's like the four hour workweek right there, that's a full time income and four hours a week. So that's the power of these newsletters and how you can do that. But there's a lot of people doing it now who have very high value content, and people gladly pay because if your content is good, people will gladly pay number 19 consult for others, that consulting is one of the biggest ways to make money on the side. And it's one of the best ways to make money on the side, especially if you're starting out. Because if you have an expertise in something, you can start consulting for all kinds of businesses. Now, the downside to consulting is you have to fill out a lot of applications to get going. And that's what takes the biggest amount of time. Because once you land some consulting gigs, then as long as that consulting gig is going on, you're going to be making money. And it's going to be minimal amount of work. A lot of consultants don't work a long hours, being able to consult for, say small businesses, maybe you're an expert in social media, and you can help a small business talk through those pieces. Maybe you're an expert in accounting. And you can be an accounting consultant for businesses who are trying to figure out different ways that they can reduce their taxes, maybe you have an expertise in public speaking, and you can help businesses get in front of people and do more with their message. There's all kinds of ways that you can consult but reaching out and asking businesses and filling out applications is the tough part. But once you land some of those gigs, they'll pay you $1,000 a month for four hours of work a month, think through businesses and think through your expertise and say, Hey, can I consult for some companies and reach out to them, send them emails and see how you can go through the process of signing up and applying to becoming a consultant for that company number 20. Get your own website. I think every single person in the world should have their own website. Why? Because there's so many things that you can do with it. First of all, you can use as your sales page, if you have a business, you can sell things on that website, you can use it for consulting gigs, you can use the homepage for e commerce, you can sell, I don't know what your cell fingerpainting, something like that. You can do anything on a website. But everybody needs to have their own website. So go get a domain, worst case scenario, get your name as the domain and get a website going. Because you can make revenue on all sorts of things, from affiliates to ads, there's so many ways to make money online. But you have to start with having a website number 21 start an e commerce company. So there's a bunch of ways that you can do this. You can sell things online, you can build software, there's a bunch of ways to have an e commerce company. But getting a company online and selling things online is one of the best ways to create a passive income. What a lot of people just don't realize, is building online businesses is the best way to reduce the amount of time you have to spend on your business. At the same time, make maximum profit. Think about it. There's no overhead in terms of you don't have to pay rent to a building. You don't have a bunch of employees everywhere. You can run those businesses by yourself or with a few employees or virtual assistants or things like that. Your overhead is extremely low, which allows you to have to work less number 20 to get paid to travel so if you're big into travel, you can get paid to travel. There's companies like trusted house sitters use it USA house sitters America, house carriers, no matter mind my house all of these companies will pay you to house it for people. So you can go travel around the world set up appointments in each place that you're going to go travel and get paid while you're traveling. And this is especially fantastic if that is what you love to do is travel and some people make this their full time income because all they want to do is travel. So they house it for other people and people will pay you three, four or $500 a night to house it. So look into this option if you love to travel number 23 sales, if you're great at sales, then reach out to local companies in your area that you are really, really into. And see if you can be a sales rep for them. Maybe it's your favorite t shirt brand, maybe it's gym equipment, maybe it's a candle company, it doesn't matter what it is. But if you want to make some additional income, reach out to companies like that, and see if you can be a sales rep companies are always looking for more sales reps, they're always looking for more sales reps, and sales is the way to make the most money starting off number 24. If you have more money than time buy an Airbnb with management. Now, Airbnb s become extremely popular as of late. And the cool thing is, you don't have to manage them if you bake management costs into running your numbers. So let's say for example, you want to buy a cottage I don't know in the Georgia mountains. And while you're running your numbers, you say, hey, I want to make X amount of cash flow. But I don't want to take phone calls and have to book it and set up the house cleaners and all all those types of things. So what you do is you bake in management into running your numbers. So usually an Airbnb management company is going to cost 20 to 30%. If you bake those numbers in and the numbers still work, you have an investment that is going to be paying you passive income every single month and you don't have to management whatsoever, all you have to do is manage the manager. So that'll take one to three hours a week Max, and you're golden, you can do this over and over and over again. Now you don't want to overextend yourself into one area, I wouldn't say by 500 airbnbs. But it's a way to make an additional passive income and diversify your income. Number 25. If you do buy an air b&b, partner up with local businesses, and say, Hey, I'm going to recommend my guests to your local businesses, maybe it's a restaurant, or maybe it's a spa. And every time one of my residents comes in, you give me a cut of the profits. And I've seen people do this and it works tremendously. So for example, if there's a restaurant down the street, that you really like, you can recommend it to your guests and work a deal with the restaurant, maybe they give your guests 10% off. And every time someone brings in that 10% off coupon, you get a cut of that deal. It's a fantastic way to work through and see additional income sources for your Airbnb, number 26. Start a drop shipping business. Now if you're not familiar with drop shipping, you got to think of it like you're the middleman. So you set up an e commerce website, and you sell other people's inventory on that website. So for example, you can set up an e commerce website that sells basketballs. And what you do is you don't carry any inventory. You don't have to fill up your basement with a bunch of basketballs, all you do is you set up the website, people buy the basketballs on your website, and then a another company, the actual wholesaler will ship the basketballs to your customer. So you're just the middleman, they make an order you email it to the wholesaler, the wholesaler ships it over there, it's a fantastic way to create a business where you're making money, the wholesalers making money and the customer still gets a good product number 27. Create a niche or authority site. So if you're not familiar with niche sites, and I talked about this on the cheapest ways to become a millionaire, because a website is so cheap to start up. But a niche site is something that focuses on a very specific topic. So it can be something from golfing, synchronized swimming to taking care of parents, because this is a real example I'm going to use right here and I talked about this on the other episode. But there's a website out there called parent secrets. And what parents secrets does is it teaches people how to take care of one of the most difficult birds to take care of out there and parent secrets has any book. And that ebook sells a significant amount of copies, because it's very hard to find someone who actually knows how to take care of her parents, and parents secrets.com, you can go to a website right now it doesn't even look like it's anything. It looks like it was made in 1995. But parent secrets.com has been estimated to make $60,000 a month just on a website that talks about taking care of parents. That's an example of a niche site that is extremely successful. And the crazy thing about that is if you do your research correctly, you can find a niche site that will become profitable. And a lot of people are starting niche sites or building niche sites and then selling them up because they sell at 25 x multiples. And it's a really cool way because once it's established, it becomes passive. And once you have it set up and you have enough articles and you have enough content on that website, it's just going to run itself. You can make money on ads, you can make money on affiliates. There's so many different ways to do it. But it's one of the best ways to make a passive income. And that's going to wrap up the passive income ideas for this episode. I hope you guys enjoyed this series. And just remember the reason why we do this the reason why we talk about increasing our income so much so we can create that freedom, create freedom from your job, great freedom from things that you don't want to do, because that's what money does. Money creates freedom so you don't have to work a job that you hate. Thank you guys so much for listening. And if it's your first time listening, consider subscribing so you never miss an episode and share this episode with a friend. And don't forget to leave a rating and review on iTunes as well because our goal is to bring as much value to you as possible. And we're trying to spread this message that money can buy freedom That's what money is there to do is to buy more freedom. So thank you again so much for listening and I hope you have a great day.