The 4 Ways to Make Passive Income

Summary

In this video, the creator discusses the four best passive income strategies for 2022. These include creating a course on Skillshare, which provides an easy platform for earning with minimal risk, affiliate marketing, where you promote others' products for a commission, starting a YouTube channel for consistent earnings over time, and investing in assets like stocks, real estate, or crypto for long-term gains. The creator emphasizes that while passive income requires initial effort, it can provide freedom and long-term financial security, offering viewers actionable steps toward building their own passive income streams.

Takeaways

• 😀 Passive income provides the freedom to wake up whenever, travel, and buy what you want, but it requires effort to get started.
• 😀 True passive income doesn't exist, but strategies like farming can be used to grow and enjoy rewards over time.
• 😀 The first strategy for passive income is creating a course on Skillshare, leveraging the platform's audience to minimize marketing effort.
• 😀 Skillshare helps creators by providing both exposure and a payment system, so you don’t have to worry about refunds or ads.
• 😀 Affiliate marketing allows you to promote other people's products and earn a commission, without needing to create your own product.
• 😀 Affiliate marketing can be done through platforms like Amazon or by promoting software and services you believe in.
• 😀 YouTube is a great long-term passive income source, but it requires consistent effort in creating content over time.
• 😀 With YouTube, persistence is key, as it may take time to see significant income, but the potential for a full-time income is there.
• 😀 Investing is a true form of passive income, and it can be done through stocks, real estate, or cryptocurrency.
• 😀 Long-term investments, such as in the S&P 500 or cryptocurrency, can yield impressive returns, as long as you have patience and understanding.
• 😀 The most reliable way to generate a significant income is to start an online business, potentially earning $100,000 a year or more, as detailed in another recommended video.

Q & A

Why are people so obsessed with passive income?

People are drawn to passive income because it offers freedom—freedom to control their time, travel, and work toward financial independence. It provides the potential for a lifestyle where money flows in without constant effort.

What is the main caveat about passive income mentioned in the video?

The main caveat is that true passive income doesn't exist. While income can be earned passively, it requires upfront effort and ongoing maintenance, much like farming where you plant the seeds and later reap the rewards.

How does Skillshare work for creating passive income?

Skillshare allows creators to upload courses on a variety of topics. It provides the audience (eyeballs) for you and pays creators based on views and watch time, relieving creators from having to market their courses themselves or worry about refunds.

What is the biggest concern people have when creating a course, and how does Skillshare address it?

The two main concerns are attracting enough viewers and delivering on the course's price. Skillshare addresses these by bringing in the audience and paying creators based on how much time people spend watching their content, not charging customers directly.

What is affiliate marketing and how does it help generate passive income?

Affiliate marketing involves promoting other people’s products and earning a commission from sales. It allows you to make money without creating your own products, often through blogging, social media, or YouTube.

What makes affiliate marketing attractive for passive income?

Affiliate marketing is appealing because you don’t have to create products or services yourself. You can promote existing products, and earn commissions—sometimes recurring—without handling the fulfillment or customer service.

How much can you potentially earn with affiliate marketing?

Affiliate marketers can earn a significant income, with some programs offering 20-40% recurring commissions each month. If you build a niche audience and promote relevant products, it can lead to a steady, substantial income stream.

Why is YouTube a good platform for passive income?

YouTube allows creators to earn ad revenue from their videos. Although it takes time to build a following and start earning consistently, once established, it can become a highly profitable, long-term passive income source.

What are the challenges of using YouTube as a passive income source?

The main challenge with YouTube is that it is a slow burn at the beginning. It requires consistent content creation and patience before you start seeing substantial earnings. It's also not for everyone, as it requires being comfortable with putting yourself out there.

What is the most reliable way to build wealth over time according to the video?

Investing is considered the most reliable way to build wealth over time. Whether through the S&P 500, real estate, or cryptocurrency, investing allows money to grow passively, often with minimal ongoing effort.

What types of investments does the video recommend for passive income?

The video suggests a variety of investment options including the S&P 500, real estate, and cryptocurrency. The key is to choose investments that align with your understanding and risk tolerance, with a long-term perspective.

What is the final piece of advice for those looking to achieve financial success?

The final piece of advice is to start an online business that has the potential to generate significant income. The video also points to additional resources and business models that can help beginners achieve substantial earnings, such as $100,000 a year or more.