Money coming in while you sleep — it's one of the most intriguing thoughts out there. Tons of people fall for “get rich quick schemes” in the hopes of building an automatic money machine. But even though there many scammy programs to designed to make other people rich at your expense, passive income is real.
I've been making passive income from my websites for years. It tends to ebb and flow in amount, with the largest amount coming from my large authority site. I make money via advertising and affiliate sales, with a little bit from my own products.
More passive income is always a good thing (my ideal is to fully replace my husband's “job” income). Steve Pavlina has been running a series challenging readers to create a new stream of passive income. I've just started to read through it — it's been in my “read later” queue for months and I'm just catching up after moving. I decided it would be great to take up his challenge.
Passive vs. Non-Passive Income
Passive income means you set up your product or other income stream once, and it keeps generating income. Examples are an ebook or a rental unit (where someone rents a house from you every month). They're “set it and forget it” systems, though in reality they may need a little maintenance here and there.
Non-passive income means you have to do something to generate the income. A job is not passive. You have to show up and do something (even if it is most likely just pretending to work). If you're a freelancer or consultant, your income is not passive.
I'm not knocking non-passive income. In fact, I'm working on a project for my authority site right now that includes a group coaching program that will take a couple of hours of my time each week. The homework and training materials coming with the program will need to be made only one time, but I'll work one-on-one with clients on the call and most likely give some guidance via email. This is really beneficial for my clients and it gives me satisfaction, too.
Passive income streams, however, are very useful to have around!
My Income Stream Thoughts
I decided that Steve's series was a great motivation to create a small income flow for one of my other niche sites. I originally considered doing it for this site, but I wasn't able to think of something I feel confident in creating yet. I may revisit Milk and Mud for an ebook project after I finish the current project. Ebooks are a pretty lucrative passive income stream if you do it right, especially right now.
I ultimately chose to go with my smallest niche site. I already have a small product funnel for this niche that could use some more traffic. I've decided to do a menu mailer service to compliment the existing product line. Menus are in hot demand for this niche, so I think I'll be able to generate traffic and subscribers. Once I've created the menu plans, they're done and only have to be auto-delivered to subscribers. It's a great passive income model.
My goal is to have this passive income stream set up by the end of October. I'd like to see it produce at least $250 a month and think it's a very long-term demand product. If I really work the traffic I think I could see upwards of $500 a month from it (maybe more).
Info-products like this are always a solid idea for income streams, especially if you're in a niche that you know needs a product 🙂
At this point I'm going to stick with products I can easily create here at home. Real estate and other passive income streams aren't really going to fit in with my lifestyle at this point, so I'll stick with ebooks, audio teachings, etc.
Are you up for a passive income challenge? You could start at a basic level with a simple product and a simple goal. Scale from there. What plans are you making?