I got this text message not too long ago that says "You have received $1824"
and I'm like "Whoa, that is incredible!"
And that text message from that income stream is actually pure passive income, a
passive income stream that I set up about two years ago. And let me make one
thing clear before we get into eight passive income ideas and how I actually
make $400 per day with passive income streams is that passive income is either
going to take an upfront investment of your time or your money. There's no such
thing as a switch of a button and boom it starts raining
hundred-dollar bills while you sleep. That does not exist. It does take some
type of upfront investment. And so, luckily, we live in a day and age where
making money while you sleep is more possible than ever and today some of the
ideas that I'm going to go over, half of them are passive income streams that I
make, half of them are ideas that, in the future, yes, I plan to implement for
myself. So without further ado let's go ahead and get into passive income stream
number one which is affiliate marketing, a way that I've been making not only
passive income, full-time income online with my online business. But what
affiliate marketing is is that you're promoting a product or a service of
another company and when you make the sale through your link you receive a
commission. So I've actually built a business where I've created six figures
with just this income stream type and what I tell people is if they want to
get started in affiliate marketing, it is a great way to make money online, side
hustle, work from home, because you're actually promoting tools or
services, physical products that you believe in that you use every day and
the way that I have been able to create recurring monthly commissions, and that
type of passive income stream, is by promoting business tools that I
regularly use and services that I regularly use and that I believe in. I
just don't promote any old product just because it'll bring me money, I make sure
I like the product first before I sell it. And so I've also made a good chunk of
change from affiliate marketing, from promoting
other people's products, so higher ticket products, which means I would receive a
commission of $1,000, and so for a while actually this was my main business model
and I've since steered away from that. However, you can realistically expect to
make hundreds of dollars a month in passive income from affiliate marketing,
anywhere to thousands of dollars a month, it's really up to you, but you do have to
get started and put in that upfront work, create a traffic source for these
affiliate products that you are building. So I've done that through my youtube
channel, my Instagram, and my other social medias where I'm receiving traffic that
are going to these links that I'm recommending and receiving commissions.
And so my best advice to you if you're looking to get into affiliate marketing
and making it a passive income stream, make sure you're looking at affiliate
products that are worth it, such as a business tool or another type of service
that people use on a monthly basis, because that is the power right there,
because that's going to give you monthly recurring commissions as opposed to just
commissions for a one-time sale here and there and so those aren't bad at all, but
just think about what is gonna give you the most bang for your effort and
because again here comes that time or investment, you're gonna have to spend
money to get traffic to these affiliate links or time building up an organic
audience or organic traffic, whether that's SEO on Google or YouTube or one
of your social media platforms, but the point is it is extremely worth it once
you build up these traffic sources to send traffic to your affiliate links.
Alright, so coming in at passive income idea number two is cash back rewards
with credit cards. Now, definitely be aware you do already have to have good
credit card or bill paying habits or else this is going to not work
for you right because if you don't pay your bills then you're gonna get charged
extra interest, but credit cards are a sure way to rack in those rewards points,
to get more miles in, but also a great way to earn cashback on things that you
already use for your daily expenses like groceries, gas, buying clothes, just
different things and necessities that you spend and use your money on in
everyday life. And so this is definitely a way that I plan to make some passive
income this year in 2020 because I travel a lot so I'm definitely
interested in a credit card that gives me lots of mileage and bonus
points towards trips and stuff like that because I spend a lot of money on travel
and business travel and stuff like that. So, for example, if you take a look at the
credit cards offered by Bank of America, you can see that they offer credit cards
with no annual fee which is a really good thing. You don't want to lose that
cash back or anything by having to cancel it out by paying an annual fee,
right? And so the more points you earn per dollar you spend is the best and a
lot of times these credit cards will give you a cash back bonus for signing
up and spending a lot of money on their credit card upfront. So, I know a friend
of mine if he spent like five thousand dollars, or I think four thousand dollars,
within the first 90 days, he got $1,000 cash back which is insane. So if he paid
off that credit card right away, he just earned $1,000 for spending money on
something he would have spent money on anyway. And so, similarly, with one of
these credit cards from Bank of America, if you were to spend a thousand dollars
on purchases within the first 60 days or something, you get a 150
dollars cash back, so not bad. Alright, so coming in for passive income
idea number three is reseller hosting. So what exactly is this? Well, if you have a
blog or a website, and millions of people do, they need somewhere, "A home," to host
their their website, right? And so there's different website hosting companies or
online websites where you can buy space and bandwidth and
megabytes, or whatever you call it, so that you can not only host your website,
but you can host up to 15 different accounts, right? So if you go to
InMotionHosting.com, for example, it's a very affordable web hosting website and
for fifteen dollars a month you can have X amount, but the best value is
21 dollars per month for InMotion hosting and you get the most value for
that price. And so with 21 dollars a month you can host up to
fifteen different accounts, so if you were to get different bloggers,
smaller bloggers, that don't have a lot of traffic coming, they don't have huge
graphical images and video, so smaller bloggers that are needing space online
to host their websites, if you were to get 15 accounts and charge in between
4-10 dollars per account, that's 60-150 dollars
that you could be making extra passively per month, literally with doing no work,
right? And this really is purely passive and automated because once you set up
their account and their hosting you literally have to do no work. The only
thing that you would have to do is if they do have a customer service issue, or
something like, that then you would forward that ticket to the hosting
websites customer support, but that would be the only thing that
you would have to do, and so the great thing about it with hosting and website
hosting is people don't leave. I mean they could be on a hosting website for
years and years, because usually when people get a website they'll have it for
decades, I mean the Internet's only been around for, what, how
long has the Internet- how long has the internet been around? But the point is I
plan to have my website for the rest of my life and so, yes, it would be a truly
passive income stream that does take minimal effort to set up. Alright, so
coming in at number four, this is actually one of my passive income
streams, is Google Adsense. So the Google Adsense that is made from my YouTube
channel. So, this source of passive income is from you giving this video a like and
subscribing to the channel, hitting the notification bell, no but seriously the
bigger my channel grows the more passive income I make with Google Adsense. So I
make money from advertisers who advertise their product or service on my
videos, so the ad roll, the mid roll, the beginning videos or advertisements that
you see on my videos give me an income stream, and in the past couple of months
this income has shot up quite a bit. So I'm making in between seven thousand
dollars and nine thousand dollars just from the Google Adsense that are playing
on my channel. That is insane! Now, as I mentioned in the beginning of this video,
a YouTube channel takes a lot of time and
you're either investing money or time in a YouTube channel. You are investing a
whole lot of time because you have to make content and videos for your
audience to watch and build up that income. Now I have an entire youtube
marketing and growth playlist, I talk about this very often on my channel, so
if you are interested in building a YouTube channel and creating a wildly
profitable business, you could check out that playlist or you can download my
six-step subscribers to sales blueprint which gives a whole in-depth overview of
how to build a business on YouTube. So I guess I wanted to say that in the
beginning of my YouTube channel I had no clue that I was going to make this type
of income from google adsense and I'm frustrated because I'm
like "Man, I should have started way earlier back in like 2009," right? But I
didn't know, and so my message to you is giving value and spreading your message
to hundreds of people, or the whole world and to everybody as opposed to just
sharing your value with one company or one entity is way more profitable for
you in the end and also helps out thousands of people that may not have
gotten your message or your content or learned from you if you had not started
that YouTube channel or that Instagram account. But the point is time spent
doing something that you don't want to do could be costing you your
greater potential in the long run. Alright, so coming in at number five for
passive income ideas is a concept called infinite banking, which is the idea of
leveraging a whole life insurance policy. So most of us in the corporate world, and
back when I had worked for the government, we have term life insurance
policies, where we you know pay a little bit a month for life insurance at the
end of our lives, but with whole life insurance and infinite banking you could
essentially take out the cash value of that policy and use it to either pay
back debt or to increase your revenue sources. And so before I explain a little
more, let's back up and talk about how the normal banks make money, the
banks that you see every day driving by and the banks that you're using for your
checking and your savings account. So they use a method called fractional
banking, where basically that means every dollar that you have in the bank they're
able to take that dollar and use 10 more
dollars to give and distribute to other bank members so that they can help them
invest and loan them the money. And so once those bank members have that loan,
they are then paying the bank back and paying them back interest so that is how
banks make a lot of money, by using your money to lend out to other people then
receiving that interest and they are filthy rich because of that. And so the
idea is the same thing with infinite banking, so you have a whole life
insurance policy, and you're able to take out I think 70-80 percent, don't quote
me on that, so let's say if you have a life insurance policy for $1,000, you can
take out around 700 of those dollars, use it to, really there's a lot of
flexibility with what you can use it on, including personal stuff, business
expenses, so you can use that money and then the idea is you're paying yourself
back the loan instead of the bank, so you're paying yourself back with
interest, and so not only are you making that passive income that way, but also
the policy compounds by 4 percent every single year and it is also
tax-free. So this is why the term infinite banking has often is often
referred to as becoming your own bank, because essentially the more policies
you have, the more investing power you have and the more compound interest and
passive income you are building up over the years. So coming in at passive income
idea number six are digital courses. Now, I have a couple of digital courses,
actually only one that I promote, and on average I sell that course for a197
dollars, and on average I'll make in between 8 sales to
14 sales per month, so that's $2364,
pure profit, pure passive income that I made from my
digital course. So if you don't have a digital course, create one. It's really
easy, it's taking an area of expertise that you love to teach, that you love to
talk about, that your family that your friends always ask you for advice on, and
creating it into a digital course and selling it anywhere from 97
dollars to a 1,000 dollars, depending on the value and the depth that you get
into in the course, maybe you offer some bonuses, maybe you offer a Facebook
group, you offer different things in addition which makes the value of your
course really high. And so when you have a digital course you can promote it on
your own, you can build up your social media accounts, again, like we talked
about previously in this video, or you can use websites like
udemy.com where they can promote your courses for you. Now I
would HIGHLY, highly advise on doing this, I mean do it in the beginning just to
get your feet wet, but udemy takes a huge percentage of course sales, and they also
definitely sell your course for far less than it is really worth, but it's a good
place to get started if you don't have an audience, if you don't have the
traffic going to your digital courses, but this is definitely a way that I plan
to really increase my passive income streams this year because I'm totally
revamping, really redoing my entire course and selling it for more because I
get high demands for this course and people are constantly going to be
demanding it because it helps them build their online business so their
investment in my course comes back to them tenfold because they're learning so
much and they're getting a lot of value and I can be confident that their
investment is a good one because I created a pretty damn good course, if you
know what I mean. So coming in at passive income stream number seven are royalties.
Now, I've never done this, I may never do it but I thought about it, and I'm like
"This is a great thing I should mention because a lot of people could
could be doing this." So let's back up, royalties are the percentage of money
that you make from your music that is being sold or broadcast on another
platform like iTunes, Spotify, and so if you're a music artist and you produce
songs and you put it on a different on a certain platform, you are entitled to
receive royalties or different percentages from companies that are
selling your music. So this is how essentially most of your favorite
artists get paid, and the cool thing is if you are a musician or in this
industry, this is an income stream that you'll have for life because the songs
aren't going anywhere and you'll keep making that passive income from the
percentages of your music being sold on these different platforms. Alright, so
coming in at number 8 for passive income ideas are collaborations and
sponsorships. So for collaborations, let me talk about what this means in regards
to how I've made money with collaboration. So I have a YouTube
channel and an audience on my channel and I collaborate with other creators
and other youtubers that have either a product or a service, and so when we
collaborate to create a video for you guys what I would do is usually give
them a call to give my audience a call to action to check out their product and
so if people that are interested in my videos and my content go to their links
in their description and they buy a product or service from them, I get a
percentage of that sale because I use my audience to drive traffic to their
audience and products and service, so that is what a collaboration means and
the same thing goes for their channel, so if I want to have them promote my
products it essentially works the same way and for sponsorships it's kind of a
little bit different. So currently, if you take a look at my email inbox, I receive
anywhere from 3-6 business inquiries every single week which are companies
interested in having or sponsoring one of my videos so that I could give a
shout out to one of their products or services in my videos and promote their
products, and so what they do is they actually pay you an upfront fee and they
would give you an affiliate link to their product so that any sales you
bring in after the video is created you get a cut and commission of whatever
you're selling on that video. So sponsorships could be crazy, I mean I've
heard of what's-his-name, I forgot that creator's name, I think I know his first
name is Dave or David, and he made like 125,000 dollars,
or they paid for half the cost of his brand-new Ferrari, to give a 20 second
shout-out in one of his videos, now that is ridiculous, but that's the power of
having an audience and having a traffic source as big as his. He
has like 14 million subscribers on his YouTube channel, but the point is
that is how sponsorships and collaborations work, and definitely a
source of passive income because once you create the content it becomes a
digital asset on the internet which will continue to drive traffic to that video
and to those products over and over and over so that is how sponsorships and
collaborations work. I hope these eight passive income streams inspired you, if
you like this video I guarantee you'll like this other video that I have on my
channel about making more passive income in 2020 and that video starts right now.
For today's video we're going to talk about passive income and how to
make more of it in 2020. Hey, I can make money online and I can make it passively
while I sleep, let's find out right now.