What is passive income? For this video, we mean a cash flow that gets deposited into your bank account, PayPal, or check, that you get every month, or week, or whatever, without having to do much after you set up the system. This article is going to be basically everything I teach in my Passive Income video on my Youtube channel.
You have to understand that it’s not a, “Sign up here and get $500 into your account every month.” It’s a, “Put the work in now by leveraging your time, knowledge, and resources, to earn freedom later.” For example, I spent probably an entire day working on the most viewed video on my channel. That video has earned me over $10,000 since it was posted. So, you could say I made my time worth around $1,000 an hour, and each day that number goes up. Watch this video for a better explanation:
There are many reasons to search and work for passive income, but most of it is for freedom in the future. The point I’m trying to get across is that, you’re going to have to put in at least some work in the beginning.
To put it in perspective, I earned roughly a quarter an hour of my time for the first eight months of Practical Psychology. But last month I didn’t work at all, and I still got a paycheck. I’ll show you how much I earned later on in the video.
You must understand the major different between two types of content. The first is called ‘skyscraper’, and that is because the traffic, the interest, and also the money graph, look like a skyscraper. A whole bunch of views, and traffic, and money for a couple days, and then it dies down to just a couple pennies.
An example of skyscraper content would be the presidential inauguration in 2017. It’s not going to be something someone is searching for 30 to 40 years from now, as much as they’re going to be searching how to get more Instagram followers; how to make more money; how do mosquitoes mate? People will be asking questions like that for ages.
The second type of content is called ‘evergreen’, and just like the tree, it stays fresh and valuable all year long. For example, my How to Get More YouTube Subscribers videos will get views, and add value to lives, for at least the next five years. While my friend’s video of him doing a rare bottle flip, won’t. Just like the Harlem shake died down, so will bottle flips, and the next trends.
You can make money with these kinds of trends, but you have to be able to predict them. The downside is, the income won’t be sustainable, it’ll be a lump sum.
Evergreen content, on the other hand, brings you in money every day, every week, every year, for the rest of your life. I’ll talk a little bit on how to create evergreen content in a minute, but if you want to know everything I know about it, check out my eBook on Amazon.
I recently wrote a Kindle eBook, and published it on Amazon. The first chapter is my failures and successes. Everything I’ve learned since I’ve tried to make money online, from the young age of 13 years old. My failed websites, and the traits of the ones that were successful. Also what I learned from my first profitable YouTube channel … it still earns me $60 month. And how I scaled it up to this channel.
You’ll also learn how much I make through different ad platforms and affiliate services, and how I got free stuff by emailing companies about influencer marketing. I’ll be telling you my numbers from different companies, and show you how you can do the same.
In this eBook, you’ll also learn about my YouTube algorithm hacks. I’ll give you a short version of the best in a couple of minutes, but I have a video dedicated to that in the playlist.
Here’s how to get the eBook. Go to Amazon and search Passive Income, and find this eBook. It’s written by a Practical Psychology, so that’s how you know it’s mine.
To add to the merit of what I’ve earned, I want to prove that I’ve earned over $4,000 in March, and got over 60,000 subscribers, and I didn’t do anything to the channel. In reality, I was working really hard to have more uploads in April. But in March, I didn’t upload a single video, I hardly replied to any of the comments. I did read them, but I didn’t really do much input, and my output stayed the same.
Like is said, in reality I was working hard to have more uploads in April, but I easily could have been on a beach in Rio, like Charley from Charisma on Command.
Another thing I want to talk about is 10beasts.com. This is website where the creator, his name is Luqman Khan, created an Amazon affiliate site, and has earned over $5,000 in the first four months, and over $40,000 in eight months. I figured I’d share his story here with you guys, and show what’s actually possible.
The website is a list website, where people search for terms like ‘best wireless router’ or ‘best wireless router 2017′ and click on his site. Then when they click on his site, they get a picture of a whole bunch of different routers, and when they click on that picture, they’re sent to the Amazon website. Basically, he is an affiliate marketer. The trick here is to get your website to the top of search engines for high volume search terms like best wireless router. You know how many people search that a year? How many people search that a day? I bet he gets tons of traffic.
This is where my analytical nature gets kind of horny and I have to sort through a whole bunch of data to find how I can simplify it, and tell you guys what you need to know. Basically, he wrote articles that were at least 3, 4, 5,000 words long, so it’s super long content, along with getting amazing back links from high authority websites, and educational websites. He actually hosted a $1,000 scholarship, and sent an email to a ton of universities and colleges to get a lot of .edu … which stands for educational … websites to link to his scholarship page, which was hosted on his 10Beasts page.
Google loves it when an educational website links to your site. Eventually his website was viewed as very valuable in Google’s eyes. This scholarship method was a great idea, along with getting bank links from Buzzfeed, Lifehack, and reviews.org.
Try to post content that is super long, and has references from other websites. That will get you to the top of search engines. But that’s not all, Google also likes it when users stay on a website. Do they stay for 30 seconds, or do they read the full article for eight minutes? They also love it when a user shares an article or page. Facebook, Twitter, Google+, Pinterest pins, all of these are trackable, and Google uses them.
In the eBook I wrote, I will teach you how to set up a simple WordPress website, along with a few more SEO tips and tricks to boost your rankings.
Another person in the passive income field to look up to is Pat Flynn, with his smart passive income website. Through a whole bunch of his channels and stuff that he does, websites, audiobooks, podcasts, he has made over $103,000 in February 2017. He documented most of it with his niche and authority websites. He knows a ton about SEO and affiliate marketing, and actually has a website and podcast dedicated to teaching you.
I’m not going to talk much more about this. You can go to him, or there’s other websites you can go out to. There’s actually an interview with him in the playlist. I recommend watching it to learn some of the stuff that he has to teach.
Anyway, we’ve been on this topic for too long, so let’s talk a little bit about YouTube. I’m going to give you some of the best YouTube tips I currently know, without wasting much of your time. If you want to know everything I know, go watch the over 10 minute long algorithm video in the playlist, that I made. Or read the detailed chapter in my eBook.
The first tip is to make better titles and thumbnails. Make them actually want to be clicked on. Take a look at these two channels. Which one would you watch more of? If you have to, split test some thumbnails and titles with your friends. Show them two or three pictures, or two or three titles, and say, “Which one would you click on first?”
Eventually you’ll get the hang of creating clickbait images, that are still relevant. Clickbait is okay, you have to create a thumbnail that grabs attention in this super noisy world. What’s not okay is misleading people. Understand the difference, and execute.
Another tip is, watch length is better than percentage. It took me a while to learn this, but let’s say I have two YouTube videos. The first one is five minutes long, and the other is 50 minutes long. Which one does YouTube like better?
It really depends on how much the average person watches. If the first person watches an average of five minutes, leading to a total of 100% of the video viewed. It will not do as well as the second video, where the average viewer watches an average of 10 minutes, even though the percentage of the video watched is only 20%. The second video held a viewer’s attention for twice the time, and that’s what YouTube really cares about. It’s the total time, not the percentage.
Another little tip I recently found out, is to send them to a great channel, you’ll know that they will binge watch and subscribe. Your video will get the points for this, but it also will not get a session end penalty. One of my best videos earned over 3,000,000 views in a week, simply because I recommended people to go watch Improvement Pill, and other videos on his channel.
This guy has some amazing content, he just didn’t have an audience. What I did is, I sent people to his channel, they binge watched a whole bunch of his videos, subscribed. In YouTube’s eyes, that video, the one that I sent them from, looked like a very profitable video, so they promoted it, and recommend it. To learn more about this, and session penalties, check out Derrel Eves’ hour long video on Channel Growth in the playlist.
Also, I recently found out you can make semi-passive income through Instagram. Just get up to around 100,000 followers, and then you can do shout outs for other people, and they will pay you. Each shout out could be from $5 to $100, some people do $500 shout outs. Actually, a friend of mine does over $5,000 each month, just by managing an account that has over 1.5 million followers.
At first that might seem like a lot of people, like, “Wow. One and a half million people?” But for a college student, $5,000 is a lot of money, and it’s worth the initial time. He actually did this in under a year. He started by spending some money on other accounts, asking them to give him a shout out. Eventually he had enough of his own following, that he started returning the favors. He started getting money to give people shout outs.
Every once in a while he’ll give me a shout out, because I help him with some of his YouTube videos. Every time he shouts me out he gives me a little, “Hey. Go check out this guy’s profile. It’s pretty cool.” I get at least 500 new Instagram followers. Shout outs are the way to gain followers, and to make money.
Improvement Pill actually had an interview with this guy, and his process. I’ll put that in the playlist also.
Now we’re on to the list of 10 income generating asset ideas that you can set up now, for a steady cash flow in the future. Keep in mind, all of these are basic ideas, and you have to add your own twists to them to make them stand out. For most of these, it will help if you already have a following, a group of people who are dedicated to the content that you make.
I explain how to do this in the eBook. The last two chapters are How to Get a Following, and How to Monetize a Following. Either way, as long as you are creating evergreen content that is worth reading, watching, or signing up, you will grow your following.
The first one is affiliate marketing. This would be like Amazon, Clickbank, Commission Junction, there’s a whole bunch of them out there. Basically, you send someone somewhere else to pay for something. You get a commission of that, from 3% to 7%, I’ve seen all the way up to 80%. It’s pretty easy, you just have to recommend great products, that will sell themselves. That’s the trick.
Number 2 is digital products. I experimented a little bit with this on Sellfy. You can actually make money by selling high quality backgrounds, templates, songs. Some people are actually willing to pay $20 to get my background music. Isn’t that pretty awesome? If I could do that 100 times, there’s two grand right there.
Number 3 is YouTube views. YouTube views takes a little bit to set up, and their algorithm is a little … You have to understand it for this to work. But there will always be that knowledge curve, in order to make passive income. You have to know a little bit about the situation that you’re going to be putting yourself in.
For YouTube, you could into gaming. For evergreen content on gaming, people don’t watch gaming for the games. For evergreen content, they watch for the personality of the guy that is playing the game, or girl, that is playing the games.
Other YouTube videos would be how to videos. These are usually evergreen. How to replace a tire on this car; how to change the oil; how to tie a tie. Also, makeup is pretty evergreen. Most of these are also, already saturated. You have to find a niche that is not already saturated, and fill that. Fill that gap where people are searching for stuff, but there isn’t much content.
Idea number four is website ad revenue. You could set up a WordPress website. I explain how to in the eBook. Fill it with banner ads, or ad sends, or affiliate links.
Number five is eBooks, that you can sell on Kindle. I’m actually going to report how much I have earned from this eBook in the future. If you want to give back to me for any of the videos that have ever been helpful to you, I recommend to buy this eBook. This is the best way that you can give back to me.
And leave a review. I am super interested in the review of something that I have written. I have never written an eBook like this before, and I would love reviews. They help me out so much, know where I can improve, what I shouldn’t do, and where I can go from the future, to make better content for you guys.
Number six is Instagram shout outs. We mentioned this before, and there’s actually a lot more to it, so I recommend you watching that video in the playlist.
Number seven is a social media agency. This is semi-passive, because you still have to produce content for other companies. Basically you do Facebook ads for local companies, as long as you know how to do it right.
You can become a Tai Lopez minion, and sign up for his course. A lot of people dog on him, he really does have a lot of great advice, just not everyone will be able to become a social media agency gazillionaire.
Number eight is subscription box service. This one is a little bit … You have to take some time to set it up. You will have to hire people, or set up drop shipping. There’s a little bit more legal stuff in here, because you’re actually paying for a service or a product. I’ll explain a little bit more of this in my book.
Number nine is online courses on Udemy, or other various ‘sign up for a course’ website. Basically, you spend a weekend creating How to Play a Guitar, or How to Make YouTube Videos, or How to Solve a Rubik’s Cube. Then you put it on Udemy, and people pay for that, $20, $30, $100. Every time they pay for that, you get a percentage. It only took that weekend to do it, but for the rest of your life you will be making money.
The last one is Patreon, and Patreon works best if your content isn’t very monetizable. But you have a large, or a very dedicated, small fan base, that is willing to give you money so that you can keep creating the content that you are creating.
If you want another 10 ideas, check out this video by Roberto Blake about passive income online.
Don’t forget to search passive income on Amazon, and buy my book. Then leave a review of it, if it was helpful, because reviews are super helpful to me, and future readers. It’s the only way that I can improve.
Thank you guys so much for all the support. I hope I added value to your life in this video, and my other videos. Subscribe if you want more.