Passive Income: How I Make $3,700 A Month (5 BEST Ways)

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– Passive income, the one source of income that everyone wants. (chime ringing) I mean, do you wanna
make money in your sleep? I know that, personally,
sounds amazing me. While you're sound asleep
in your bed or at your desk, you could be making hundreds of dollars while you dream of driving your dream car. All right, I get it. This sounds way too
good to be true, right? (record squeaking)
Well, in most cases it is too good to be true. Here's the main issue with passive income which most fail to portray. In order to earn a lot of passive income, it requires immense upfront work and grind to receive the benefits of later. The misconception most often
involves people thinking that in order to earn passive income, building the passive income sources requires little to no effort. You see, in reality, it's
actually the complete opposite. If you think that you can just sit back and make tons of passive income money without ever working or putting
in any effort, you're wrong.

No business runs itself and
passive income doesn't either. You see, this is why I don't necessarily like
saying passive income, because nothing in life is truly passive. Most people wanna skip the
work, and trust me, I get it. Sitting back, all day,
playing Rocket League while making passive income,
that sounds amazing to me. But all great things in life
typically come with a price, and that's your hard work. Unless you win the lottery or you fall into a massive
family inheritance, you know, like those
Netflix Christmas movies where some girl meets a guy. He's a Prince in a different country. She doesn't know it. They fall in love. She moves there. She's rich. You get the point. We've all seen those movies
or been forced to see them. If you're willing to
put in the upfront work that's required to earn
passive income later, then this is a video that
should help you tremendously.

I think the reality behind
making passive income is what most people neglect to teach. So my goal is to show you
how much effort and time that it actually takes in
order to make passive income. I'm not going to sit here and throw a bunch of fake promises at you so that you'll watch my video. My goal is always to provide you with as much value as possible. If you're taking the
time to watch my content, then my job is to give you a great ROI. I know personally, my
time matters a lot to me which is why I respect yours
and I value it as well. In this video, I'm gonna give you five passive income ideas for 2021 and show you how I personally make a little over $3,700 a month across my passive income sources. All I ask is you just
take a second of your time to hit the like button.
(bell dinging) And if you're in a giving
mood for the holiday season then maybe even subscribe
to my channel as well.

I greatly appreciate you and your support for my channel as well. But now that I got that out
of the way, let's get started. The first passive income source is one that I personally love because anyone can start doing
it right now, this second. This passive income source
is affiliate marketing. So affiliate marketing is
basically the affiliate, which is you, marketing
or recommending a product or service to consumers. If the consumer purchases the product or service that you recommended to them using an affiliate link, which
I'm gonna cover in a second, if they make that purchase decision then you earn a small commission. The sales are tracked
using affiliate links, which is basically a custom URL, or custom code in some cases, that you get when you
join an affiliate program. Again, basically anyone
can get started right now. And most affiliate programs are actually extremely simple to join as well. There's tons and tons of companies that have affiliate programs with competitive commissions as well.

So if you're thinking right now, "You know what, I wonder if this company has an affiliate program." Just Google it. Odds are they do. I personally do a lot of
affiliate marketing on YouTube with tech reviews and
also recommending things like online course platforms
that I use and enjoy as well. If there's products or
services that I personally use and get value from, and they
have an affiliate program, what I do is I'll throw a link in the description of my video if I think that that product or service is a good fit for my audience.

If this is your first time on my channel, I'm one of the highest paid
freelancers on upwork.com where I complete SQL database projects. When I'm looking to learn a new skill or enhance my existing skill set, I typically always use
Skillshare and Pluralsight. These are my two favorite
online learning platforms, which coincidentally and
working out well for me, both have competitive affiliate programs. And here's an example of how
I typically advertise this in some of my videos. Give me one second. So if you're interested in
learning a new freelance skill or enhancing an existing skill set, then be sure to check the
description of this video out, a month or a free trial for both Skillshare and
Pluralsight there for you. Skillshare is probably the best
all around learning platform with topics in freelancing
and entrepreneurship, marketing, web development,
graphic design, and many others.

And then Pluralsight has a lot
of great SQL server content. So that was a quick example
of how I typically advertise products or services on YouTube. And if you wanna see how I structure these in the description of my
videos, just scroll down. You'll see them all in a list. And if you were interested
in one of the products or services in my description,
you clicked on it, and then you signed up on the platform, I would earn a small commission.

Do you see what I did there? The Skillshare affiliate program is actually a really good one. For every person that
clicks on my affiliate link and then signs up, I get $7 and they get a free trial
of Skillshare Premium. And it actually used to be $10 until they recently decreased it. This is an extremely easy
way to earn passive income. And it also helps people by giving them free trials on learning platforms, where they can invest in themselves by learning valuable skills. If I sparked your interest
in affiliate marketing and you're ready to start
earning passive income, then likely the best place
for you to get started at is with the Amazon Associates. It's one of the largest and
most popular affiliate programs in the entire world,
where basically anyone can go sign up now and get started.

You can start earning commissions in a simple three-step process. Simply create an account. Share product links with your audience and earn up to 10% in
associate commissions from qualifying purchases. The great thing about Amazon Associates is that you don't even
need an existing audience. You could create a YouTube channel and then film a product review
from some Amazon product that you use and you enjoy. And then when you upload it, you can include your Amazon Associate link for that product in your description.

Even if you don't have any subscribers, if you create a product review video on a product that's searched
for a lot on YouTube, and it has low competition
regarding other videos out there, that type of video could pop
and make you a lot of money. I personally earn anywhere
from 300 to $500 a month in passive income from the
Amazon Associate program. I have a playlist on my channel containing all my tech review videos. I created a video for a 4G LTE router which I use in my house for
a rural internet solution. And that video now has over 160,000 views. I have Amazon Associate product links in the description of that
video for my 4G LTE router which I've made a lot
of passive income from.

And all I did was recommend products that I personally use. Even better, when someone clicks on one of the Amazon Associate
links in the description of my video and makes a
purchase on basically anything, I earn a small commission. This could be on anything
they purchase on Amazon. If they go to Amazon through
one of my affiliate links and they make a purchase on anything then I earn a small commission. Believe me, there's definitely been some crazy items purchased and it's fun to go through
them all every now and then. For example, I made around $60 from someone purchasing a
nearly $2,000 ice machine after going to Amazon through
one of my affiliate links. In total for 2020, I've made over $3,700 from the Amazon Associate program, which is really easy passive income. And this came simply from
recommending products that I use and enjoy. I believe YouTube is
one of the best places, if not the best place,
for affiliate marketing.

You can create videos
on your own and for free covering products and services
that you use and enjoy. Share your thoughts on them and then get paid every
time someone signs up or makes a qualifying purchase
using your affiliate link. Then all you have to do is pray to the YouTube algorithm gods that a lot of people will see your video and make that little gray
thumbs up icons turn blue, so even more people will see your video, buy stuff through your affiliate links, and that puts nice passive
income into your pockets.

The next passive income
source or idea is another one that basically anyone can do, but does require having
some money set aside for investing, which is dividend income. There's so many investment platforms, like Webull and Robinhood which offer commission-free investing and also fractional shares. But yeah, there's a lot of speculation, a lot of legal things
hanging over Robinhood. I'm not going to get into those here. There's other YouTube
videos covering that, but I wanted to bring it
up because it's important. It's important for you
to do your own research. I'm not a financial advisor. I have to get that out there. However, full disclosure, I do have dividend investment
stock in Robinhood. I'm planning on leaving it there, at least for the time being,
to see what happens with them. But yeah, I just wanna
mention that to you. So the great thing about
investment platforms, like Webull and Robinhood is that it makes it
immensely easy to invest and lowers the barrier of entry.

With Fractional Shares, you
can invest stocks and ETFs that costs hundreds or
thousands of dollars with as little as just $1. This gives you the ability
to invest as much as you want into the companies or
ETFs that you believe in without having to commit
to an entire share. So if you're not familiar
with dividend payments, they're basically payments
made to shareholders, like myself or you, as a
reward for putting your money into the company. The company is basically saying, "Thank you so much for investing. We had a really great
quarter. Here you go. Have some money back." Dividends are regular payments of profit made to investors who own a company stock. It's also important to note that not all stocks pay dividends. Let's use McDonald's as an example since pretty much everyone
knows about McDonald's. They currently pay out
a dollar and 29 cents per share in dividends to
investors on a quarterly basis.

If you own one share of McDonald's stock, this is equivalent to an
annual dividend of $5.16. And you can see here that the cash amount has steadily increased over the years. You also have the option
to reinvest dividends, which in most apps like Robinhood, is a simple account setting. For Webull, I don't
believe there's an option to automatically reinvest
your dividends at the moment. It's been highly requested. So I would assume that they're
gonna add it in the future. However, at the moment, you
would have to manually reinvest. But if you're using something that has automatic dividend
reinvestment, like Robinhood, and you have the option turned on, then each quarter when
McDonald's gives you that dollar and 29 cents that money would be reinvested
back into McDonald's without you having to do anything.

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This allows you to grow your
dividend passive income stream by acquiring more fractional shares. To determine which dogs pay dividends, you can simply Google it. Another company that basically
everyone should know about is Walmart, which you can
see pays 54 cents per share in dividends each quarter,
$42.16 annual yield. Also, I have to mention again that I'm not a financial advisor. I'm not telling you to put
your money in McDonald's or anything else. You're responsible for your
own financial decisions. I'm just some guy on the internet teaching you about passive income. The actual investments that you make are your own responsibility. Now that we got that out of the way, dividend payments is one of the easiest passive income methods. Which, I don't like to
throw the word easy around because everything requires upfront work. To have investing money,
you likely had to work hard for that money, which again, ties into paying the price of upfront work to gain the benefits of later. However, when it comes to
building passive income, dividend payments is one
of the easiest sources.

I've personally been
putting a lot more time and money into building
my dividend portfolio. You're likely not going to be balling out like Jordan Belfort in
Wolf of Wall Street. – [Jordan] I made $49 million, which really me pissed me off, because it was three
shy of a million a week. – By adding a few stocks
to your dividend portfolio, but it's something that
really adds up over time, especially if you're
reinvesting dividends. I also made it really simple
for you to get started on Webull or Robinhood. For Webull, if you create an account using the link that's in the
description of this video, then you'll get four free
stocks valued up to $1,600, after you deposit a hundred dollars. Again, for Robinhood,
do your own research. There's a lot of speculation
that may pull you away from creating an account on Robinhood. So just do your own
research before you decide. However, if you do decide to
open an account on Robinhood, if you use the link that's in
the description of this video, then we'll both get a free stock when your account's approved.

These are both extremely easy
ways for you to get free money by just clicking the links and signing up. Also, if you win a stock
that pays dividends, definitely let me know. It would be really cool if
you won a stock like Microsoft that pays quarterly
dividends to shareholders. This could be the video that started your dividend
investing portfolio. All you have to do is click
one of the links below and sign up. Transitioning back to YouTube, the third passive income source for 2021 is YouTube ad revenue.

This is one of my favorite
passive income sources that can be very lucrative long-term, but it requires an insane
amount of upfront work. I personally don't even really like to call it passive income. However, like myself,
you've probably heard of other YouTubers like Graham Stephan who's earning anywhere from
$2,000 to $6,000 per day in YouTube ad revenue on his main channel. And yes, I said per day. I mean, those numbers
are hard to even believe. And take a look at this. On May 19th of 2020,
his main channel earned over $10,000 in a single
day from YouTube ad revenue.

Coming from someone
with 40,000 subscribers, it's honestly unfathomable. For my channel specifically,
I make anywhere from $1,500 to $2,000 per
month in YouTube ad revenue. Now this fluctuates, but
my overall ad revenue has been steadily increasing since my channel became
monetized in May of 2019. Creating YouTube content, especially high quality YouTube content, requires a lot of upfront
work and time as well. However, the ad revenue does
become truly passive long-term. One of the top earning videos on my channel is actually from 2018. It consistently generates
over a hundred dollars a month in ad revenue and has
generated over $2,300 in total ad revenue. Somewhere around 30 to
40% of my total ad revenue comes from videos that I
uploaded in 2018 and 2019. Channel memberships are also included with the YouTube ad revenue when you get paid through Google AdSense I don't really advertise
my channel memberships. So this typically comes out to a really small amount of money. However, for those of you
who have shown support through my channel memberships
and on Patreon as well, I appreciate each of you. And I'm not including my Patreon
as a passive income source because a lot of Patreons
are signed up on tiers that involve me mentoring them and helping them grow as freelancers, so I'm really trading my
time for money in those.

I typically make around
a hundred dollars a month from Patreon, but again,
it's not passive income. I'm trading my time for money there. I've said this in the
other YouTube videos, and I try to communicate it
as effectively as possible, but I highly recommend that you don't start a YouTube
channel solely for money. Most people who start
YouTube solely for money eventually burnout, and that applies to anything in life that
you don't truly enjoy. Not every everyone will enjoy
creating YouTube content. In order to grow a channel,
you have to be consistent. I've been uploading at
least one video per week since September of 2018. There's been a lot of weeks where I really didn't feel
like creating YouTube content and I procrastinated. So if you don't enjoy it, then your consistency will really suffer. YouTube is one of those things where the more you put into it, the more you'll get out of it. That's why you really need to
enjoy creating YouTube content before it can be a viable source
of passive income for you. And if you're interested in
starting a YouTube channel, than I highly recommend
that you start one now instead of waiting.

Your content will get
better with each upload. And the process of actually
creating YouTube videos is how you get better. My main advice to you would be to focus on providing
value and helping people. For someone to watch your content, hit the like button
(glass breaking) and subscribe to your channel, then they need to get something
of value from your video. If your main focus is on helping people and making their lives better, than the money will eventually come. And if you decide to
start a YouTube channel, there's two tools that
I definitely recommend that you take advantage of. Both are in the description of this video.

One is called TubeBuddy
and the other is vidIQ. I use these to research
things like keywords, volume, competition, and many others. They both have free versions as well. So it won't cost you anything
to sign up and install them. The next passive income idea is one that I'm actually still working on, which is course sales. One of the most frequent
requests in my YouTube comments is for me create a course on SQL server, which is my freelance skill that I've earned over $600,000
with on Upward since 2016. In the past week, I actually
just finished filming the introduction and
planning the course outline, so I'm working on it, but I've definitely been
putting it off for way too long. Creating an online course can be a very lucrative passive income source. If you have a skillset
that you enjoy teaching, then I would definitely recommend at least exploring the idea. There's tons of platforms online, where you can host your course and get tools to help
you develop it as well, like Skillshare for example. On that average, first-time
teachers earn $200 in their first month on Skillshare, with top teachers earning
upwards of $3,000.

Of course, to earn $200
in your first month, your course has to be finished. Let's compare that to
YouTube for a moment. I uploaded weekly videos
consistently for nine months before my channel was ever monetized. After that, I didn't
pass $200 in ad revenue until the end of that month. So for me, it took around 10 months of consistent weekly uploads before my channel ever
passed $200 in earnings. Do you remember what I said about not starting yet a YouTube
channel solely for money? But again, you can see still make money through affiliate programs
before your channel's monetized and you start earning ad revenue. Creating an online course is, again, something that takes a lot of upfront work and time, as well. Do you see a trend here? Finishing my course is something that I'm focusing
heavily on entering 2021, with a goal to finish it by Q2. The fifth passive income idea is one that basically everyone
should be doing right now, which is depositing money into
a high yield savings account.

Even if you're someone who
isn't interested in stocks or other passive income
sources from this video, you need an emergency fund. According to the federal reserve, 40% of Americans can't come
up with $400 in an emergency. I don't know if that's more shocking or just absolutely terrifying to me. Most people tend to keep their money in standard bank savings accounts or even checking accounts that are earning basically nothing. The biggest five banks have
50% of the deposits in the US. Wells Fargo and Chase
pay 0.01% on savings. Again, there's no reason
to leave your money in accounts with that low of an APY. There's a lot of great
online savings accounts that offer competitive interest
rates, which are way better than what most traditional
banks are gonna offer you. Some of these include Yotta Savings, Ally, CIT, Alliant, and many others. I'll throw some links in
the description for you. These all offer anywhere
from .5 to over 2% APY, which is among the most competitive that you can find right now. I've personally been using Yotta Savings for around the past few months, and it's been really fun.

It's essentially an online savings account with a lottery aspect. Contests are weekly, with
one random number drawn every night at 9:00 PM
Eastern Standard Time. The final number, which
is called the Yotta Ball, is drawn on Sundays, and that's when your total earnings for the entire week are determined. I've personally made over $44 on Yotta in the past few months, and in the month of November, I had a 3.09% APY, which
is actually really good. I mean, that basically
covers one of my bills or subscription services that I have. Overall, it makes saving money fun, and I'm earning more passive income than I would if I had my money
in a standard bank account where my interest rate was non-existent. If you sign up using
the Yotta Savings link in the description of this video or use promo code JOSHUA37, then you'll get 100 tickets for free after you make your first deposit.

Putting your money into a
high yield savings account may not sound like much
passive income right now, but it adds up in the longterm. And again, everyone
needs an emergency fund. Why not put your money into an account that will pay you competitive
rates for doing so? Passive income is really a
strength in numbers thing. All of my passive income
sources added up together comes out to a little over $3,700 a month, and I'm not making this video
to flex my passive income. There's so many people on YouTube making way more passive income than me, some of them making what I do
in a month in a single day. I really enjoy watching
other passive income videos like this one and learning
how people make their money.

Hopefully I inspired you,
or I gave you some ideas that you can start
implementing for yourself. But again, it's extremely
important to note that all of the passive
income sources and ideas that I mentioned in this video, they all require a lot of upfront work. You have to put it in to
earn the rewards later. In my opinion, the upfront
work is more than worth it. I'm just now getting to a point where I'm not constantly
exchanging my time for money. That's where all my
income used to come from. Exchanging time for money only gets you to a certain point financially. You really need things
that are more passive and compound over time. Again, links to all of
my passive income sources are in the description of this video. If you wanna get started investing and building your dividend portfolio, then use the links
below to get free stocks on both Webull and Robinhood. Be sure to follow me on
Instagram and Twitter. I post freelancing tips and also show you my work ethic and grind on those platforms basically every day.

Again, if you enjoyed this video but you haven't hit the like button yet or subscribed to the channel, (glass breaking)
will you do that now? Start today. Put in the grind and be
consistent on a daily basis. Thank you so much for watching. I'll catch you in the next one. On this end screen, I recommend checking out these videos. And be sure to hit that
round Subscribe button for weekly tech videos and
hit that notification bell so you don't miss anything. Thank you for watching and until next time. (upbeat music).

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