There are people sunbathing on the beach in Barbados and simultaneously making thousands of dollars.
How are they doing it?
With passive income.
Passive income is the financial freedom that allows you to travel the world while making an average or higher living wage. The entrepreneurs who have figured how to strike passive income gold are the ones who have done this one thing.
They have an automated system.
For example, dropshipping has become a popular source of passive income. Dropshipping sells products without having to own inventory. For example, you can dropship matcha tea. The matcha tea will go directly from the factory to the customer’s door. As a drop shipper, you are the middleman between the producer and the consumer.
Passive income takes an initial time investment and monetary investment for an eventual reward. For drop shipping, this initial time investment comes from finding the factory and ensuring the products have a successful delivery to the customer’s door. Talking to factory owners, figuring out shipping prices, marketing the tea, and ensuring the quality remains during the process is the initial time investment. After working the logistics out, you have a system. The system is automated, with notifying the factory of the consumer’s order and address. They will handle shipping the product, and you get a notification to your phone with a new deposit.
Another way to create passive income is through membership sites. People can sign up for membership sites to have access to a digital service like a Mastermind Group or a physical product like a Bark Box. Each month they pay a set amount of money to have access to the digital service or receive their products. The automated system for a digital service like a Mastermind Group is in having weekly calls on a set date. As the owner of the group, you can work one day a week, creating content based on what the group members said during the call. The content can be scheduled out during the week and automatically posted while you sip your pina colada. A physical product will run on a schedule. It will always be sent on a set date, using the same delivery system. While the products are shipping, you can be skiing in the mountains of Aspen.
Just like with drop shipping, membership sites take an initial time investment and monetary investment. You will have to create a website, which on average, costs about $200. From there, you will find your target audience and promote your products to them.
If you sell a $15 membership service to 500 people, you will make $90,000 per year.
If you sell a $25 product to 1,000 people and you earn $20 per product, you will make $240,000 per year.
Passive income is not a fad, but a lifestyle choice. Thanks to the rise of the Internet, passive income has become an option for anybody driven enough to put an initial time and money investment into their future.
Are you one of them?
COMMENTS