How to Earn Passive Income Online (3 Legit Models From $5 Million Entrepreneur)

rootF IMG 602d5a48f3360

there are several different ways to generate passive income and make money online and in this video I'm going to share three completely different legitimate strategies that you could choose from to build a passive income business of your own since 2008 I built several different businesses that have utilized one or more of these business models I've been featured in magazines and articles across the globe and since I started my journey I've generated over five million dollars in earnings in fact all of my income and expenses since october of 2008 have been tracked and can be seen online publicly on smartpassiveincome.com now instead of reading all of those income reports make sure you stick around because I'm gonna distilled the decade of learning into three completely different business models that you can choose from so you can decide which path you want to go down from this day forward those three models are the FP model the AAA model and the EP model what are those well I'll tell you in this video but the real trick is finding out which one actually best suits you and to help you I'm gonna give you a real-life example of each of these and how to get started hi my name is pat flynn founder of smartpassiveincome.com and i'm here to help you make more money save more time and help more people – now let's talk passive income what is passive income well there are many different definitions of it but my definition and the way that I like to teach it is its building online businesses that can work for you that allow you to generate income and grow and scale without a real-time presence in other words we don't trade our time for money you build something upfront that can continue to work for you over time Pat is this even possible yes it's definitely possible is this something you can do without investing a boatload of money yes unlike real estate or investing in a stock market you can build something with relatively little to no money that can continue to pay you over and over again if partly is this something that's easy to do no definitely not passive income is not easy some people are gonna tell you otherwise they're gonna tell you about a magic button or a formula or a blueprint where you can get rich all by doing nothing and don't even get me started on the people who say that this stuff can happen overnight it doesn't and if that's what you're looking for well I'm sorry you're in the wrong place because guess what it does not happen overnight it takes a lot of hard work you've got to put in the hours you've got to work hard now so you can build these assets that can continue to work for you later because once you start to build that passive income stream you start to have a little bit of flexibility and freedom you can have more time to do more things or do less things or build even more passive income streams so please as I introduce these three business models to you do realize that they yes take time but also it's very much worth it cool cool all right let's get started the FP model stands for the freelance to product model starting with freelancing and then finding a problem that could be solved with a product freelancing is working for different companies and getting paid for certain skills that you have that they need now you might be thinking Pat what the heck you said this was about passive income well freelancing is active income you are training your time for money what's the deal well the deal is we're just getting started so hear me out first of all freelancing I feel is the number one way to get started in building a business of your own you're gonna learn a lot of skills running your own business as a freelancer and not only that you're gonna get paid much quicker too than if you just started with trying to make passive income first because that's a great way to fail you need to start with the active income first before you can convert that into the Pacific um later but beyond that my absolute favorite reason why I recommend freelancing to start is this you get to know the industry that you're in quite well perhaps so well that you can find the holes meaning the opportunities for you to create a product based passive income business in other words by freelancing in a space you have interested in you not only have the opportunity to make money now from your skill sets but you also have the opportunity to find opportunities to build products that can continue to help you earn money over time let me tell you about my friend Brian castle he too was once a freelancer who was only making money by billing client after client I actually used to build her project I come from a background as a freelance web designer and you know I used to kind of build her project and occasionally by the hour but either way you know it was still very much tied to my time like I could only fit in a certain number of projects and I was basically living like project to project throughout the year after doing web design for years he eventually found a huge need for website and design in the restaurant and food truck space then after getting tired of working with client after client he decided to turn his service based business into a productized business I kind of wanted to move away from that and get into a more standardized predictable service and you know essentially a product I service that just does one thing extremely well solves one problem exceptionally well and then you know it's really designed for one particular client and that just removes that whole discovery negotiation from the table so that I can just focus on providing a great service and and kind of leave it at that so what he did was remove all that individual client work and then create actual templates and products that would serve that market they would pick a product he would serve it to them either by just choosing it and having it already available or having his team other human beings actually create those things for those clients you can catch more of Brian in his interview on session 158 of the smart passive income podcast which I will link to in the description below all active businesses can be shifted and turned into a more passive business by either having products that are already made by having software do a lot of legwork for you or even other human beings do that work too now let me tell you about how I made my first passive income online back in 2008 with business model number two the AAA model stands for Alcoholics Anonymous anti-aircraft Alumni Association acronym abuse just kidding so I get a little carried away sometimes it actually stands for audience and advertising model it's one of the most used forms of building passive income online however it does come with a fair amount of warnings which I will share with you in just a minute if you're a youtuber making money through Adsense then you were following the AAA model because you're building an audience and then generating an income through your viewership if you're a blogger and you're getting a lot of traffic to your website and you are making money through advertising and or sponsorships well then you're also following the AAA model a podcast with sponsorships you get the idea right you had this audience you had these advertisers who want to get in front of that audience and you marry the two and you get paid for it when I started building my architectural related business back in 2008 online my first dollar was actually made through advertising I'd spent months building credibility in this space and actually getting traffic to my website and then I thrown out on my website one day and I made $1.00 in 18 cents I mean sure I can find that underneath my couch cushion but that wasn't the point the point was the fact that I actually was able to build something online put an ad and actually make money without me having to do anything although of course it took several months to create that but point being it was possible it motivated me to move forward eventually I put more ads on the site my traffic started to grow and then I was earning anywhere between 30 and 50 dollars a day just through advertising loon now here's the funny thing I built a completely brand new website I got even more traffic to that one than my previous one I put ads on it and I didn't even make more than fifty dollars after six months of advertising and that's one of the downsides of the AAA model ads are not super predictable especially auto-generated ones like ones through Google Adsense and such secondly although I've done advertising and sponsorships in the past and have made hundreds of thousands of dollars doing so the truth is that it takes a lot of time for this business model to actually start to generate an income for you because you need to build that audience first and it takes time to build an audience and more than that what happens when you build this audience into following on a platform that ends up changing their algorithm or how often you actually get seen in front of this audience that you've built super stressful for a lot of people which is why I always recommend building email lists in order to build an audience you need a platform you need to have something worth following something worth sharing and valuable to others and that of course takes time now that's not to say that you can't build a huge audience in a very short period of time a lot of people have become quite famous in a short time period who's often as we hear about those stories we also don't hear about the stories the millions of people who are struggling every single day to just get a few more fans and followers but the cool thing is you don't need a huge audience in order to generate passive income and make money online that's why if I had the choice I'd actually go with the e P model the EP model stands for the expert to product model now don't let the term expert scare you away because it's probably not what you think most people think an expert is somebody who is a master at something somebody with a special degree your special training somebody who's put in those 10,000 hours who is just great that's not the kind of expert I'm talking I'm talking about the fact that you can be an expert in the eyes of somebody else just by knowing a little bit more than that and guess what you have experiences you have ideas you have opinions that are all unique to you the goal is to become just expert enough to earn the trust from others so that they can want to learn even more journey so quick story remember that dollar 18 cents I found in the couch among other things well even when that increased to thirty to fifty dollars a day it still wasn't enough to live off us so I looked for other options in August of 2008 after a few people started to know who I was and how I was helping them pass this exam on my blog I wrote an e-book that I sold for $19.95 it included all the information I knew about how to pass this exam and I just sold it simply from my blog on October 2nd 2008 when I finally put that book online I sold my first copy which was an amazing feeling and then fast forward through all of October of 2008 I ended up making seven thousand one hundred twenty-six dollars in 91 cents just from eBook sales alone the craziest part about all this is that I would wake up in the morning and there'd be more money in my bank account because people bought my book overnight what do you think about it an online store that sells something that's digital is something that is open 24 hours a day seven days a week 365 days a year and using tools and software and systems you can automate the delivery process so that you literally don't have to do anything to serve that audience now in the description below I'll put some of the tools that I was using and also some more articles about that story about how all that happened but let's continue what's important to realize here though is that with this exam that I was teaching people about I think it a perfect score in fact I didn't get close to a perfect score I passed yes but I also knew a lot about this exam way more than somebody who was just diving into the studying of us it was because that because I was just a few steps ahead of them they trusted me to help them with that information I provided a lot of great free value to help them along the way I engaged in conversations in the comments section and on forums to get known most of all I just really cared about those people because I struggled big-time with that exam and I was helping people not do the same here's the truth guys a successful business is something that successfully solves a problem you make more money by two ways one solving more people's problems or number two solving bigger problems now let's take this one step further cool thing about this EP model the expert to product model is that sometimes these products don't have to be yours you can actually generate income through the recommendation of other people or other companies products this is something called affiliate marketing it's how I've made actually most of my money since starting in 2008 first time I did this was way back with the same website the architecture exam website I connected with a company that also sold practice exams and I got paid twenty two dollars for every person who I sold one of those things and over the course of the years since then I've generated over two hundred fifty thousand dollars simply by recommending that product alone again a product that was not mine but it was still helpful to my audience this was all done with just thousands of visitors a month not millions or hundreds of thousands just a few thousand so how do you get started with the e P model well first you have to be an expert in the eyes of those who are you looking to serve and remember you do not need all these qualifications and credibility actually some people gain expertise and credibility through just sharing their experience learning something – which is what I've done on smartpassiveincome.com and many other people in the program finance base or in Fitness you think about it they're talking about their journey they are building trust and authority through sharing their experiences and you can do the same thing – another great way to get started is to actually in an area of interest that you have go out and start talking to people and asking them questions like what are you struggling with right now what's your biggest pains but something that you wish existed that did not and I will give you some ideas about where to start and what positions you might be able to take remember a successful business solve people's problems and at first you're gonna have to do the work you're gonna have to do the legwork put in the time put in the hours but of course it's about building something now so you can reap the benefits later because using software using tools using automation using other people that you hire you can actually turn this business that helps solve people's problems does something that can be automated for you so you can generate passive income – for more info about passive income make sure you visit smartpassiveincome.com or subscribe to the smart passive income podcast which would be really cool and hey if you'd like this video make sure you subscribe right now and click on that notification bell so you get notice when new videos go live – now a quick question for you to answer below in the comment section before you leave and that is this which of those business models makes the most sense for you and if you implement that business model and earn an additional let's just save $500 a month what could an extra $500 a month generated passively do for you but remember it doesn't happen overnight it takes work hopefully this will give you a great head start make sure to check out smartpassiveincome.com for even more info about how to do it all so thanks again appreciate you and look forward to serving you in the next video

pexels photo 5849580

As found on YouTube

You May Also Like