Passive Income is Easy??
Passive Income Is Easy??? – Marcus’ Passive Income Rant — affiliatemarketingmc at YouTube.com
Is the idea of making passive income complete and utter bullcrap? Or can it happen?
So here’s the deal: You have lots of people out there, and they all want to make money on the internet. They don’t want to invest a whole lot, they don’t want to do a whole lot of work, but they want to make money while they sit around and let the Internet fund their lifestyle.
Three Major Types of Passive Income
So first, let’s define the three major types of passive income.
1. Real estate. This one is really obvious. I could go buy a bunch of houses. When people pay their monthly rent as I rent them out, I get paid passively. I’ve done this for years, and it works pretty good. Sometimes it’s a pain in the ass, but it’s a good way to make passive income. Now the downside is that sometimes you got to have a lot of money to pony up to make this stuff happen.
2. Stocks and investing in companies. This is the number two second biggest passive income source that we see. This is where you go out and put money in a company, and hopefully that company grows over time, and you get paid over and over based on the growth. Which is cool, unless the company falls—then it sucks.
But most of the time, when you invest in stocks and stuff, you could pretty much anticipate the rate of return you’re going to get and how much you’re going to make every month. Now again, the downside is that unless you have a crystal ball that tells you which companies are going to do good and which are going to do bad, you’ve got to have a lot of money to invest.
Let’s say you invest 1 million dollars in the stock market, at a rate of 8% return. That’s going to average you about $8,000 a month in passive income. But the downside is, who’s got a million bucks laying around? You’d do better to buy a McDonald’s franchise for a million dollars and pocket the money you make off of that. That’d be a better passive income investment that would fall under the category of investing in a business.
3. A business on the Internet. This is my favorite way to make passive income. You can actually set up little businesses that pay you little bits each and every month. For example, if you were to set up a video, or a blog post, or an article, or a website, let’s say you get traffic to it each and every day. Maybe you get 100 visitors a day. Wow at 100 visitors, you have to be able to sell $100, that would be an average of $1 per visitor.
If you then went on the next day and built something else, and got another 100 visitors, and that would be again one dollar per visitor, you’d now have $200 and 200 visitors total. And you can keep growing and growing.
Now, of course it probably won’t be that simple or that easy. You can’t just make a website and expect to make $1 a click—most websites make way less than that. But as you grow, as you learn about your audience, you can build and understand them, and make even more. You can build mailing lists and posts and other things that are going to get people into your passive income-producing business.
My favorite way to do this is with what’s called affiliate marketing. This is where a company like Best Buy or Amazon (or anything for that matter) has products and services to sell, and they reach out to affiliates like you and me—regular people with websites—and they say, “If you sell this product from your website traffic, we will give you a cut.”
So let’s say you’re like me and you like to smoke cigars (you know it’s a bad habit, but you like them anyway). You set up a website or a series of videos about your favorite cigars, and you talk about what they taste like, and how they feel, and whatever it is cigar people are into. And you get some traffic. Snd the guy who sells the cigars has an affiliate program you can actually attach their link to the cigar you’re talking about, and you get paid when someone orders a cigar through your link.
The cool thing about this, and the way that it translates into passive income, is you could make a video one day, and that video could get 100 people watching it a day. Or 200 people. Or maybe you make a blog post, and it gets people watching it. And out of those people, some of them are going to like what you have to say and actually go and buy the cigar through your link. Which is pretty cool, because if people are watching your video all day every day, you’re going to make sales off that cigar.
Disclaimer: Don’t sell cigars online. There are too many legal ramifications. It’s a bad idea; just don’t do it. This is for example purposes only.
Here’s where it gets really good. As time goes on, you’re going to build up a group of people. And that group of people is going to come back to you and say, “Well, Marcus said some good things about that one cigar I like. I wonder what he has now.” And they’re going to check out more stuff, and buy more stuff, and it’s going to compound. It’s going to build, and your passive income is going to grow and grow.
This is exactly what one of the top business people in the marketing space has done with Wine Library. He actually went through and had a little wine library with his family, and he did video reviews on each and every wine, and built the company from very small to like $60 million dollars a year. I’m not even kidding. This stuff happens each and every day.
And this blog post I’m making right now is going to get people to watch it every day from the words “passive income”. They’re going to come in, they’re going to learn about affiliate marketing, and hopefully buy my stuff, enjoying my passive income stream.
There are two things that can compound on this and make it even better. The first thing is getting more people to buy stuff more often. This one is obvious. The people who come in, you get them to know, like, and trust you. They look at your reviews, whatever they’re about, and they like what you have, and they want to buy more stuff from you. Excellent.
But the problem is this: if they stop buying from you, that number dwindles down quite a bit, and your passive income goes away.
The second compounding thing you want to pay attention to is actually making people buy more stuff, or selling things that have a recurring basis. For example, I could have a Cigar of the Month Club, or I could send out ten cigars to each person and sell them for a small fee, or work it out with the company to have them sell them, or whatever it may be.
Or I could sell things that have recurring revenue attached to them. For example, I could sell a software product that has a recurring income. Like credit, for example, where people could check their credit every month. Or maybe web hosting, or something like a funnel builder software, or an antivirus software, or a pest control service, or whatever it is. Anything that pays monthly.
Instead of getting paid one time, for one guy, from one click, you are now going to get paid over and over again from the same person. Let’s say you get the same 100 visitors per day. Wonderful. Those 100 visitors come in and you get your one sale. One sale, and you’re happy about it. You’re ready to go celebrate.
But wait. The odds show that the average person who buys that product stay for around 9 – 15 months. Then the $50 you just made has now turned into $450 or $750 just like that. You’re not going to get it right away—you get it as the customer pays. Which is really cool, because you could build and grow and it’s not that hard to do. You just have to stick with it.
The Problem with Passive Income
Now, the problem with passive income is that everyone has this idea of sitting on the beach, and drinking tea, and having money fly from the air into their wallet. They have all these ideas and expectations, and they set up a site, and it doesn’t get 100 visitors right away. They don’t get their first sale right away. So then they quit, and they go look for an easier way to make money on the internet, and it doesn’t exist. They quit before the magic happened.
If you really want to make this passive income thing work, you’re going to need to stick with it.
Now, I’m a big believer of seeing results really fast. I don’t like to wait for anything. I want to put up a video and make money the same day. I want to put up a blog post and see it ranked on Google the same day. I want to see things fast. But you have to go through and do this systematically.
Here’s the deal. The Internet is a big place, and there is a lot of competition. But the competition is all on obvious stuff. There are little niches out there that people are searching for every single day, and there are gaps in the marketplace. Do you think companies like Best Buy, AT&T, Amazon, and other huge stores have time to answer your question about your camera, or whatever it is you’re going to buy? Forget about it.
That’s where you come in. That’s right—there’s room on the internet for the little guy to make money, because the big guy has lost touch with his customer, the little guy. So your job is to go find little micro communities of people searching for things.
For example, I found this popular software that people wanted to embed on their blog. And last I checked, there’s like a bazillion people with blogs, and lots of people who want to embed this thing on their blog. So I made a little video about. It took me about eight minutes. And boom, we get customers each and every day coming in, checking it out, buying stuff, and adding to my passive income.
Passive Income Can Be a Reality
So, my friends, passive income can be a reality. But you have to get your head out of the clouds and into reality. Because the Internet does not care what you think. It doesn’t care what you feel, it doesn’t care how much you desire money. Desire is not enough. Desire is a word that’s used by marketers to get you to buy things. They say, “If you desire this, you should attain it.” Of course I should, because it’s going to put money in their pocket when I buy it.
My friends, desire is not enough. Feelings are not enough. Wanting it is not enough. You have to do the work, and the work is not hard. So instead of sitting around and desiring ways to make money every day, and looking for the easiest way to make money possible, why not start with something simple. Find a group of people who have a problem that needs to be solved. Find an affiliate offer that pays you for solving that problem. Pair them together, make some content based on what they’re searching for, based on what their questions are, and boom. Put it out there, and you’re off to the races.
Don’t expect big things overnight, but expect to see little returns and grow. This is exactly what people are doing to grow their income to $5,000, or $10,000, or even $100,000 a month passively, using the internet. Some of them make way more than that.
Now unfortunately, the average affiliate marketer makes nothing, because they never stick with it long enough. But I know you’re going to want to stick with it, and I know you’re going to want to make a plan that’s going to work for you.
And I’ll close with this. A lot of people say that making passive income is hard work. To me, hard work is like building houses out of clay in 100 degree weather. Sitting on the computer and typing things out, it’s not that hard. It’s pretty easy. Now, knowing what to do is a different story, but it’s not that hard.
Think about it this way. Let’s say you took eight hours on a Saturday, or your day off, or whatever, and you took the same time that you put into your job. And your goal for the day was to make one dollar a day, every day. And you sat down for the eight hours, and all you did was laser focus on producing content aimed at making one dollar a day, every day. I think you could do it. It’s actually not that hard.
The problem is that people spend the eight hours focusing on things that don’t matter. They spend the eight hours on research, and idea-making, and scheming, and products, and stuff like that, instead of what actually works.
What actually works is getting a message in front of your market. Plain and simple. There are tasks that you can focus on each and every day that will get you closer to your goal of passive income. And over at my site, www.AffiliateMarketingDude.com/passive, I have a list of 31 tasks that you can do each and every day to get your content in front of people, make sales, and build a passive income stream.
For more information, visit www.AffiliateMarketingDude.com.