Understanding “Passive Income”

Passive income does not equate to “earning without any effort.” This concept is a myth.

Passive income refers to money that isn’t directly linked to your time. You complete the work “once” and earn money each time a product is sold. This means you can generate income even while you sleep.

It does not imply “quick riches.” Such notions are misleading, as many courses and schemes are often scams.

To earn money, you must offer value. Create an irresistible offer that people cannot refuse.

1. Launching a YouTube Channel

Let’s begin with a classic—starting a YouTube channel. As a YouTuber myself, I recognize this may sound cliché. What’s the difficulty level for starting? Setting up an account and using a smartphone are all that’s needed. However, producing quality videos is challenging.

Difficulty to start: 1/10

How about ongoing maintenance? For my smaller channel, it took nine months and 40 videos to achieve monetization with 1,000 subscribers. Typically, you’ll need around 70-90 videos for monetization, which makes the maintenance difficulty around 6/10. If you enjoy the process, it’s manageable, but initially, you’ll invest more time than you earn.

You’ll need to produce content at least weekly for some time.

> The average YouTube CPM is $2 per 1,000 views. To earn $100 monthly, you would need to produce four videos per month, each garnering around 10,000 views (assuming non-evergreen content).

As your channel grows, earning becomes easier. While this endeavor isn’t entirely passive due to the necessity of creating new videos, evergreen content can continue generating revenue from previously created videos.

2. Creating a Podcast

Podcasts have surged in popularity and can serve as a semi-passive income stream since you can monetize content you’ve created once, as listeners return to it. Starting a podcast is relatively simple; all you need is an account on a platform like Spotify and a recording device.

However, growth can be challenging. Most podcasts gain traction through platforms like YouTube or other social media where snippets can be shared.

Difficulty to start: 1/10

Maintenance can be tricky; I’d rate it a 5/10. While it takes less effort than maintaining a YouTube channel, monetizing podcasts isn’t straightforward, and growth takes time.

3. Art Investment (Masterworks)

Investing is one of my preferred passive income strategies, and I personally utilize Masterworks to invest in art. This platform allows you to purchase shares in expensive artwork and see your returns when pieces are resold, often yielding about 15-20% ROI per sale.

Starting with Masterworks involves a setup process, but using my referral link grants you an automatic invitation and a $200 bonus.

Difficulty to start: 3/10—you’ll need some capital and a bit of patience. Like most investments, this comes with risks, requiring you to stay informed. However, art has a history of stability, similar to gold or silver.

Maintenance difficulty: 2/10—you just need to remember to invest in additional pieces.

4. Becoming an Affiliate Marketer

This method is relatively simple to start, yet more challenging to maintain. You’ll need to set up an affiliate account with a brand, such as Amazon.

Difficulty to start: 2/10—some affiliate programs have prerequisites like minimum follower counts or extensive application processes.

Maintenance difficulty is around 5/10. Promoting your affiliates necessitates creating content, be it a blog, podcast, or video. Your success will depend significantly on your audience’s engagement.

Affiliate marketing can yield anywhere from $10 to $10,000 monthly, depending on your deals, audience, and timing.

5. Selling Digital Products

One of my favorite passive income methods, creating digital products entails minimal ongoing effort after the initial creation. With tools like Canva, you can design PDFs, eBooks, and journals to sell on platforms like Etsy or Amazon.

This process is largely automated, allowing you to earn money while you sleep.

Starting difficulty: 3/10—you must be familiar with design software and understand your audience's needs. Generally, the more valuable your product is, the higher its price can be.

Maintaining this income stream is straightforward but can become challenging in saturated markets, making it a 3/10.

6. Developing Online Courses

I have a strong affinity for online courses, which can be delivered in various formats. Courses enable you to share your expertise and save others time, providing immense value.

Starting a course can be straightforward using platforms like SkillShare or Udemy, allowing you to tap into their audiences quickly.

Creating a course might take anywhere from two weeks to two months, involving scripting, recording, and editing.

Starting difficulty: 5/10. Currently, I host several courses across different platforms, sharing knowledge on topics like FPV drones.

Maintaining a course on platforms like SkillShare or Udemy is relatively easy, rated at 2/10. If you have your audience, consider hosting on your platform for better profit margins, although it requires more marketing effort.

7. Establishing Membership Sites

You don’t need a pre-existing audience to create a membership site; just knowledge and a solid concept. Membership sites allow you to offer ongoing value for a monthly fee, whether through exclusive content, coaching, or community access.

Starting difficulty: 4/10—you’ll need to invest time in advertising and content creation.

Maintaining a membership site is more demanding, rated at 9/10. Without delivering value, you risk losing subscribers. I run a membership for FPV drone enthusiasts, which has been successful.

8. Writing and Self-Publishing a Book

If you enjoy writing, consider self-publishing a book via Amazon KDP or similar platforms. Each sale will earn you royalties, providing a steady income stream.

Starting difficulty: 1/10—if you’re confident in your writing abilities, you only need basic tools. However, if you require assistance with design or marketing, it may be a 4/10.

I’ve successfully self-published a book on social media business building and plan to release another in 2024 focused on solo travel.

Maintaining sales involves some marketing, making it a 2/10.

9. Creating a Website or App

Developing a website or app to host advertisements can be a lucrative passive income source. This method is among the most challenging to initiate, requiring technical knowledge and compelling content to attract users.

Starting difficulty: 9/10—but once established, it can become easier to maintain, rated at 3/10 or lower, depending on your app's nature.

Conclusion

These are nine passive income strategies to explore in 2024. Keep in mind that there are no shortcuts to success; building a portfolio of assets and income streams takes time and effort. Over the years, I’ve witnessed the effectiveness of these methods and encourage you to persist through the initial challenges.

If you’re curious about how much I earn from these endeavors annually, check out my accompanying video on the topic.

You can also view this article in video format on my YouTube channel!