Passive income, especially online, is one of the most profitable and rewarding ways of making money today. Firstly let me point you in the direction of a GREAT passive income resource www.smartpassiveincome.com. Pat who runs that site is always full of great info on starting a small business and how to use passive income to escape the 9 to 5 and gain financial freedom.
But don’t let the idea of passive income opportunities make you think of no work and free money.
Setting up a stream of passive income is hard work, but once you get it going and do it right it will just get easier and easier. So here are three secrets that everyone who wants to earn passive income needs to know. 3 opportunities that if you take a hold of you can set up a few streams of income that come rain or shine will be there for you to rely on.
- Do Your Research. Passive income opportunities are all about what they want not what you think they want. Focus on your consumer more than ever when you are attempting to set up a hands free system of income flow. You need to find a niche, find a problem, and offer a solution for your stream of passive income to truly take off. Start with some basic keyword research through free tools like Google Keyword Tool or Nichebot Classic… enter in a few keywords related to the niche you want to get into and then narrow down the list to the keywords which seem like there is a lot of need and not a lot of solutions present. This is a kinda long process, so I suggest popping in your favorite jam and then spending a few hours over a few days really researching your niche and isolating the ‘problem’ your market faces and how your product can ‘fix’ that urgent need. If you really want to go crazy with keyword research try a premium research tool like Wordtracker.
- Pick Your Medium. Passive income can flow from several sources, but the one thing ‘passive’ income can’t come from is from you actively doing something. Then its not passive anymore. So when I consult for businesses I am not making passive income, its income, but definitely I am doing a lot to make it happen. What would be ideal would be if I had started with the end in mind and created a series of ‘consulting’ videos that I then sold to clients instead (thankfully I love consulting so its not a bad deal for me). So figure out how you are going to create your passive income opportunity first, will it be an eBook? a membership site? or physical products which you have systemized to the point where you don’t have to do much.
- Take Yourself Out! When I tried to start my first passive source of income an eBook on becoming a powerseller on eBay my biggest problem was not taking myself out of the equation. From the first day I set it up so I was always involved and nothing was delegated. With my second enterprise Tweeterpreneur I had hired two Virtual assistants and made an effort to take myself out of the equation as much as possible, because of this the business grew better than if I had been involved 24/7. Remember when you are trying to start as source of passive income, the whole point is for it to be PASSIVE… that means you can’t micro-manage or be critical to its functioning well. The best way to get ready for this abdication of control is to start delegating now, I always suggest to hire a V.A. (virtual assistant) to do minor things for you at first just to get into the swing of delegating tasks. Check out VA4U.com or Onlinejobs.ph as two good sources of finding inexpensive help.
If you can master these three key secrets of passive income opportunities you’ll be well on your way to making it online and in life. The skills you gather (that I am still gathering) when you take yourself out of the equation are skills you can replicate and use throughout your life and business to grow and succeed.
Action Step: Read Tim Ferriss’ The Four Hour Workweek and pay close attention to its focus on finding and creating passive income streams as well as its suggestions on outsourcing.