Everyone likes the idea of passive income. Earning passive income is the dream that pretty much everyone has, but nobody believes they can achieve. This is partially because passive income is impossible. There’s no way to earn without someone having done work. What you can do is 1) leverage someone’s work, or 2) create an asset that pays you over time.
Leveraging other people’s work is the best way to earn passive income. This is normally what people call investing. You invest your money in a company, the employees of the company do work, and that work creates shareholder value which is cashed out through dividends or an increase in the selling price of the company stock. When you leverage other people’s work, you help them live as their creations come alive. The big risk you take, is that they have to actually do the work, and they have to beat the competition. This is why everyone talks about compteitive advantages, and why trading with insider information is illegal. Knowledge is power when investing.
If you make sure to learn a lot of things and make a lot of money, you’ll be able to go far in the world of investing as you age. If you make sure to stay in tune with government and/or young people, you’ll win even bigger. Don’t get it twisted though, the market is hard to beat. You need to accumulate large sums of money before you can invest. If not, you’re either taking big risks or making small returns.
The second way of earning passive income is through creating an asset which works for you over time. In the past, opportunities to do this were limited. You could write a book or take part in the creation of a TV show or movie. Besides that, you were pretty much out of luck. The internet made it possible to create storefronts that never close, and entertainment centers that never shut down. Nowadays, any piece of internet content has the potential to become an asset that turns you a profit. This means that you should be creating content online, and it should serve whatever niche you’re in. Focus on long form stuff. Short form content has little value unless it goes viral. Do the hard stuff, the things other people don’t want to. Before you know it, you’ll have a bunch of content that works for you while you sleep.
This blog is an example of a passive income machine. I have a few posts on here, and every month they get me a good amount of search traffic. It’s a great way of driving new followers and viewers for my YouTube channel, which is another content generating machine.
Building a passive online money machine takes a lot of patience. You won’t make any money at first, unless you’re a master at going viral. I can tell you this, the best way to do things with regards to writing is to combine it with another skill. It’s hard to make money with words alone. But if you’re persistent and consistent, you can create an income generating blog with just a bit of elbow grease. The same applies to a YouTube channel. YouTube Channels require more creativity to get off the ground, but they’ll make you much more money than any blog. They’re a must have for anyone looking to make money online.
By Rising Current on .
Exported from Medium on November 8, 2024.
