Many people don’t even take the first step towards financial freedom because they don´t see themselves as capable of generating enough passive income to support their lifestyle. That’s a mistake!
The way they see it they will never be able to write a book that sells enough, a site that has enough traffic or a course that enough people will take. And if they are never going to make it the whole way, why even bother right? There’s no point in taking the time it requires to write and publish a book if you are still going to have to work your day job. There’s no point in investing those few precious moments of free time you’ve got today if you honestly believe you’ll won’t get the return you are looking for tomorrow.
I can see the logic behind this thinking. If I’m never going to be able to quit my job, then I might as well spend my free time and earned money in doing the things I like with the people I enjoy doing them with. It makes sense. After all you should never pick a battle you don’t think you can win to start with.
I do believe though that people who think this way base their decision on a false premise, that you need to hit a home run in order to make it. They fail to understand the concept and value of a passive income portfolio.
You don’t need to get famous
There are plenty of people out there who are making a living through passive income and have yet to write a best seller, build a site that gets more than a couple thousand hits per month or teach a course where there is a waiting list. You won’t recognize their faces, you won’t know their names, but still they are living more comfortably than some of those who pop up on the tech news section every once in a while after building a site that went viral with millions of hits.
How they manage to achieve this is quite simple, by building a strong and diversified passive income portfolio.
If I were given the choice I would actually chose to be on this low profile yet highly profitable side of the story instead of becoming a public figure with press coverage and all. Not only it goes better with my personality but I also think it’s a smarter way of building wealth. We’ve been hearing it our whole lives, “don’t put all the eggs in the same basket”, so why start now?
Perfect and repeat
Passive income revenue streams are, by definition, streams that generate profit on a consistent basis with very little maintenance. This doesn’t mean there wasn’t a huge effort behind them at the beginning to set them up, but once they are running they as close as “auto pilot” as it gets”.
If you build on top of this idea it makes all the sense in the world to build one product that generates some passive income and then move on to creating a similar yet separate product. It takes exactly the same amount of time of your daily life to be an author of one published book or to be an author of 10 published books. It also takes the same time to be the teacher of 1 online course or 5 online courses, to be the author of 100 stock photos or 5000… That is once the books are published, the courses are recorded and the photos are shot of course.
Let’s say it took you 3 months to write, proof read, layout and publish an ebook that is now making you $80 per month. If you picked someone at random from the streets they will probably tell you you’ve lost 3 months, that the return you are getting is not worth the time and effort you’ve put into it. A savvy passive income seeker on the other side will consider this scenario a huge success and will waste no time in getting started with his or her second ebook. After a year of going over the same process you would have 4 finished and published books earning you $320 per month of passive income. Actually you’ll probably make more since you could start referring people who read your first book to the second, third, etc. It just gets easier and easier every time. And of course you might publish a couple over the years which are a failure and don’t meet your expectations, but that’s ok, you’ll still have a catalog of other titles generating revenue for you even years after you published them.
Let’s take a look at another example. Let’s say you want to build niche ecommerce stores. You spend a month building your first one and tuning it to perfection, then you spend only a few hours per week for the next 3 months building some backlinks and other SEO strategies to grow your traffic. After 6 months this site could be making anywhere from $20 to $600 per month depending on the products you are selling, but for the sake of this example let’s assume it makes you a consistent $150 per month 6 months after launching.
Building a second site will take you only a portion of the time it took you to build the first. You can use the same theme and content management system. You can even use the same server. The only thing you need to do is brand it up a little bit and fill it with products. This won’t probably take you more than two weeks.
After a year of doing this you’ll find yourself with 5-7 niche sites, none of which will make you rich, but if you combine them all at an average of $150 per month you’ll be making between $750 and $1000 of passive income after just one year.
Some people might consider a book that only sells 10 times a month or a site that only gets 1000 hits per month a failure. But remember, it only takes a bunch of these failures to reach financial freedom. You don’t need to hit a home run, you don’t even need to aim for that. You just need to be persistent and build up your passive income portfolio one step at a time.