Hey, everyone. This is Stefan from projectlifemastery.com. In this video, I'm going to
share with you how to make passive income and different ways to make passive
income. Now, I already did a YouTube video on the differences between active and
passive income. I recommend to go back and watch that video on my YouTube channel.
I explained that active income is essentially when you're exchanging your
time for money. That can be at your job, you get paid for the number of hours
that you put into your job, or it can be in a business by you providing
services, maybe as a freelancer, and maybe have like a carpet cleaning company,
cleaning people's carpets, whatever that is. You're essentially getting paid for the service,
the time that you're providing. Now active income you can make money from that,
you can do pretty well from that, a lot of people do. The challenges with it is
that it's not very scalable, you're not utilizing a leverage in any way. You don't
have any freedom and it can also be very stressful because if you're making a
certain amount of money and you stop working, then you'll lose that money.
You're not making anymore money because what the money that you're earning is
dependent on the time that you're putting in. There's always an exchange of time and
it's not automated in anyway whereas passive income is. Passive income basically
gives you the ability to make money on auto pilot, make money while you're
sleeping. You maybe create a product or service, you automate it in some way, or
it could be through real estate, or investing. Essentially, you're just putting
in the energy, the time of money at the beginning to set it up. Once it's set
up, you can set it and forget it and it continuous making you money without
you having to do anything in exchange for that money. Now, set it and forget it, I
don't really fully believe in that because I think in any business or any investment you still
have to keep your eyes on it. You still have to monitor it in some way, that make sure it's
still sustainable but really does not much energy or time that's required for that, if
it's truly passive. There's a lot of truly passive ways to make money. Now,
how do you make passive income, what are the different ways?
There's a lot of different ways. I specifically prefer and focus on online
businesses as a way of making passive income, and I believe is one of the
best ways to passive income. Primarily, because the Internet is changing the world
in so many ways. There's billions of people now that are using the Internet
in the next 10 years or so. There's going to be another billion people that are
getting access to the Internet than never before had access as well.
More and more people are doing business online, they're purchasing online,
people less and less are going to retail stores and what not.
There's a big transition happening in the world right now. The Internet also gives you
the ability to utilize technology to automate a lot of things for you. If you
have a retail store, you're going to have somebody that there's that
talking to the customers and selling to them. Whereas the Internet, you just going to have a
website, that website can reach everyone in the world
worldwide. The website is doing the selling for you. You don't have to
be physically be there to sell someone your product or your service.
The Internet and technology had made it easier for people like you and I to get started
to start a business to utilize and automate business and to make passive income.
There's a lot of different online business models, I'll share a few of them with you
guys in this video. Online business isn't the only way to make
passive income, there's also just traditional business. For example, if you did have
a store, you had let's say a 7-Eleven or something like that. You can make passive income from that if you hire employees,
a manager, and employees to basically run and operate the business for you.
There's going to be a certain amount of income, your business is going to make
every month and there's also going to be expenses. Whatever the expenses cover,
whatever the excess cash flow of that business, that's going to be the money,
the cash flow, the passive income that you can generate from it. It doesn't require
your time to be there to run the business, manage the employees, sell, talk to
the customers and stuff because you automated it. That's really
the essence of what passive income is. It's automated income. Finding way to
systematize or automate your business in some way. That basically eliminates your
time and activity in the business and provides passive income for you.
Traditional business, Internet business, traditional business is typically a little bit
tougher
to make passive income from because it's a business that's dependent on people. It's is
people operated systems. People operated systems is okay, that's how a lot like
McDonald's and franchises operate. Businesses or owners, they have lot of
different business but the problem is with people there's management required, there's
money required. Often more money to empower employees and run it,
whereas an Internet business you don't really require a lot of employees if not any because you
can utilize technology, your website, and auto responders, and softwares to help run
everything for you, which is a huge advantage. Not much people are
involved in the Internet business. It gives you more global reach and more
leverage in the sense of just utilizing search engines, YouTube, social
media, et cetera. I believe Internet business is more superior as a passive
income stream than a traditional offline businesses but other streams of passive income
could be real estate. For example, you could buy an investment property and that
investment property, you basically rent it out and the rent
covers your mortgage, your expenses, your insurance, et cetera.
Any excess money that you make is going to be passive income that you're basically earning
without having to do anything to earn that money. Even investing a stocks,
different investments like that or anything that pays a dividend is passive income.
Because you're owning a certain shares of a company and then you're getting paid
either a monthly dividend, or a quarterly dividend, or a yearly dividend that's
paying you a certain amount of money based on how many shares that you have, a
certain yield. That's another fantastic way of making passive income. I
make money
passive, it came in all those different ways except for traditional business. I've got
many online businesses. I have stock investments that pay dividends. I also own a real estate investment
property as well.
I'll go a little bit more into the different Internet business models
because the real estate and the stocks, those are pretty straightforward and I
don't really specialize in those as much. Let's talk a little bit about online
business, online marketing. All right, so where the ways you can make money
through passive income, through Internet business. Number one is selling your
own product. There's different types of products you can sell, there's information
products, and then there's also digital products, and there's also physical products.
Information and digital products are essentially books, video training
programs, audio training programs, e-books, guides. You're basically selling
information that solves someone's problems or helps them achieve a certain desire or
need that they have which can be entertainment or humor, or something like
that. Essentially, I use the example and I've got a course on Kindle
Publishing. You can write a book or hire someone to write a book for you, publish
it on Amazon, sell it as a Kindle Book, sell it as a paperback book, and an
audio book. You're just spending time upfront to create the book to write it, to
hire it, to get the cover, all that stuff putting it all together. Once it's
published, and you do some marketing, now it's making you passive income because you
you can have that product up there on Amazon. People continue finding it
and purchasing it and then you get paid money every time someone purchases it. While
you're sleeping, while you're on vacation, you're still making money from that book
that you published on Amazon. Another example
could be creating your own digital courses or products or training
programs or even software can be an example as well. You could spend
the initial time to create that, make sure there's a market, a demand for it,
sell it online, create the website, have it on the member's area. People purchase, they
automatically get access to it, they can download the product or watch it in the
member's area. That's automated form of income and you can automate your
marketing as well. You can create content like I am right now in YouTube or on a
blog,
and that's always up there on the Internet attracting people and funneling
them into your products. That's a fantastic way of making money,
digital products, information products, and then also physical products.
I've got a supplement company, I sell different supplements on Amazon and I
spend the time at the beginning just to set everything up. Once it's up
selling on Amazon, there's not much maintenance that have to do to continue making that money.
Right now as I'm recording this video, I'm making money from my products that I sell,
the books that I'm selling, the supplements that I'm selling, and I'm recording this
video right now
in Puerto Rico on a Sunday. When I go to sleep tonight or whatever
I'm doing I'm continuously making money. That's the power of passive income. Now, you can
also make passive income through affiliate marketing. Affiliate marketing is where you're promoting
other people's products or services, and you earn a commission from it. These
companies or they have affiliate programs will pay you a commission for every sale
that you generate for them. For example, if you published articles on a
blog or on a YouTube channel, or you got the e-mail list, autoresponder, automated
follow up series, or social media, whatever it is, you can automate those
marketing to attract people and then funnel them into someone else's product through
your affiliate link. You can earn a commission every time someone buys.
That company, they take care of the customer, they deliver the product, the service, they
do the customer support, and you get paid just for your referral. That's an
amazing way of making money online, one of my favorites. Affiliate marketing
is a powerful way as well. There's information products, there's digital products,
there's physical products, there's
affiliate marketing, but there's also services too. You could create an online business
related to a service and maybe just like a web design company. You
design people's websites. What you can do is you can automate that by hiring other
designers to do everything for you and then have a manager and someone that deals with the
customers, and runs and operates an entire business for you. Now,
what you've done is automated that business so you freed up your time to basically travel
or do whatever is that you want and you're making passive income from that.
You can automate services but again, that's people dependent system
business which often is a little bit more challenging because we have to manage people and stuff,
a little bit harder to setup but that's another viable way. As I mentioned before,
there are software, you can create and develop your own software and sell that online. There's also advertising
so for example right now on my YouTube channel, at the time of this video I earned about
$2,000 a month just from the ads that show up before my videos, the little
ads that show up on YouTube. You can get paid from having YouTube
videos and content online. I have hundreds of videos that are right now at
this very moment getting thousands of views. For example, I can take the
next month off doing nothing,
traveling the world but the hundreds of videos that have already published that
are getting thousands of views around 400,000 views a month on YouTube, the
advertisements are being displayed. I don't have to do anything for that, so I'm
making passive income while all of this is going on. Advertising is great,
you can have the advertising on your YouTube videos, advertising on your blog, your website,
content, your some called Google AdSense. That's Google's advertising network
where people can advertise in your blog or website. You can earn money for that.
Basically just money for different ads showing up. There's a
lot of different ways
online the Internet, but those are the main ones, the primary ways. I specialize
in primarily making money from Kindle publishing books, as well as paperback,
and audio books. I also specialize in Amazon FBA, Fulfillment by Amazon, selling
physical products on Amazon. Amazon does the fulfillment for me, they store the products
in their warehouse, they ship the products for me. Not much that have to do for that
and I sell supplements on Amazon. I also make money, started my own digital
products such as training and courses and different information that I sell online,
as well as making money from software and advertising as well. I put
together if you guys haven't already seen it free course that shares the seven
ways that I make money online that have made me an Internet millionaire. You guys can have access to
free course at projectlifemastery.com/freecourse.
There'll be a link below. I recommend go through that training
because I give away a lot of free stuff, I show my business,
I'm transparent, I show how I make online, and I show you how you can get
started to build your own online business through each of the
different ways. If one is more attractive for you, I share with you the
benefits of each and then you can decide, "Okay, I want to go down this path and build an online
business and make passive income this way." The amazing thing about online
business today is that it doesn't cost that much money to get started. You can
start an online business with less than a hundred bucks which is pretty amazing.
If you want to spend more, you can. Others are maybe a little bit different.
The Internet is made so that anybody can get started anywhere in the world, I
don't care if you live in Bangladesh, if you live in Australia, Europe, Asia, North
America, you can get started building online business. There's actually kids
making money online. I know people that follow me, they're 15 years old that
have online businesses that are making a lot of money. Blows my mind,
these opportunities were not available for me. I wasn't thinking about
this stuff when I was young, but the Internet is really changing the world and
I think that's the number one way to make money, making passive income especially
online. Check out the free course projectlifemastery.com/freecourse.
If I missed any other ways to make passive income, make sure you leave a comment
below. I know there are some other ways like you could loan money or
you could setup like an ATM machine, or like a vending machine or
something like that. People will do that and they have a lot of success making passive income that
way as well. I know there are other models like that too, but anything that I
might have missed, I'd love for you guys to leave a comment below.
Let me know other ways to make a passive income and let me know which way that you're
committing to make passive income too. Because, if you're watching this video
then you're honestly interested in making passive income. You obviously thought about it,
you're interested and curious. I love to hear what type of passive income
model whether it's internet, or offline, or real estate that you're focused
on building and then maybe there's a way that I can add more value and help you out as you go as well.
Thanks for watching the video, make sure you leave a comment below. I'll see you in
in the next video. Hey, this is Stefan and thank you so much for watching this video. If you
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