9 Passive Income Ideas - How I Make $27k per Week

17 Nov 2023 (12 months ago)

Intro (0s)

Discusses nine passive income sources that generate about $27,000 per week
Emphasizes a gradual build-up of income over eight years; no quick riches
Defines passive income as earnings not tied directly to time, emphasizing value creation
Cautions against get-rich-quick schemes, noting they are scams
Highlights that real value must be provided for income
Promotes a Skillshare class on productivity and side hustles

Investing money provides value and can earn returns
Easiest way to make passive income is through the stock market
Recommends investing in index funds, specifically the S&P 500
Suggests starting by signing up with a stockbroker appropriate for your country
Investment can potentially earn a 10% average annual return
Ongoing income depends on the amount invested and market performance
Maintaining stock investments is simple; once set up, they require little active management
Personal example: a portfolio worth about $350,000, mainly in S&P 500 index funds, yielding estimated passive income of $682 per week

Starting a YouTube channel is easy and requires creating an account and uploading videos.
Monetizing a YouTube channel is challenging, requiring at least 1,000 subscribers and 4,000 watch hours.
On average, it takes around 52 videos and six months to achieve 1,000 subscribers.
Making significant money, like $100 a month, requires around 50,000 views on YouTube.
An average channel with 62,000 subscribers could expect about 20% viewership per video.
Earning starts earlier than 60,000 subscribers but growing a channel to make substantial income is difficult, rated 4 out of 5 stars.
Once a YouTube channel gains traction, maintaining growth is easier, rated 2 out of 5 stars.
The presenter's channel makes about $12,000 a month in ad revenue, mostly from older videos.
Different monetization strategies exist, but only ad revenue is considered passive income in this context.

Starting a podcast is generally easier than a YouTube channel but harder to grow due to a lack of a supporting algorithm.
Creating a podcast can be done using tools like Anchor.fm and Riverside.fm.
Podcast income primarily comes from brand deals, not from a platform's AdSense-like system.
To earn $100 a month, a podcaster needs around 1,000 downloads per episode, assuming they run weekly episodes with sponsorships.
Only the top 20% of podcasts get more than a thousand downloads per episode.
Maintaining a podcast and earning consistent income is somewhat easier once finding the right formula, rated 2 out of 5 stars.
As an example, the presenter's podcast with his brother earns approximately $625 per week from brand deals and memberships.

Affiliate marketing involves selling others' products and earning a commission.
Globally, 48% of affiliate marketers earn $20,000 a year, equating to $1,660 a month.
Starting in affiliate marketing is rated 2 out of 5 for difficulty.
To start, one can sign up for programs like Amazon Associates, share links on various platforms, and earn commissions from purchases through those links.
Making $100 a month can be challenging with low commission percentages and a need for high website traffic.
Other programs like Skillshare offer different commission structures, like $7 for referring a free trial signup.
Building an audience is essential to succeed in affiliate marketing, requiring consistent content creation, typically for at least two years.
Passive income from affiliate marketing is rated 3.5 out of 5 for difficulty in reaching $100 a month due to the need for an audience.
Once set up, maintenance is relatively easy, particularly with evergreen content.
The creator of the video makes approximately $11,000 per month from Skillshare and about $450 a month from Amazon UK, with additional earnings from the US and Canada.

Selling digital products, such as ebooks, apps, or themes, involves creating them once and selling them multiple times.
Examples include Traf's iOS 14 icon set generating $300,000 and Oliur's Tumblr themes earning $700,000 since 2014.
The difficulty of starting to sell digital products is rated 2 out of 5.
Success depends on the value provided and solving a problem that prompts purchase.
Making $100 a month from digital products is rated 3 out of 5 for difficulty.
Maintenance of digital products is easier than creation and is rated 2 out of 5.

Creating an online course is a form of generating passive income.
Online courses are usually in video format and can be easily made with available tools like phones.
Skillshare is a platform where courses can be uploaded without direct charges to users.
Maintaining a course to earn about $100 a month is relatively easy once it's established.
Generating significant income on Skillshare depends on content quality and potentially an existing audience.
This method contributed roughly $60,000 to $65,000 per month to the creator's revenue, which is a large portion of their weekly $27k passive income.

Paid membership communities can provide passive income if a content creator has an engaged audience that trusts them.
Starting a membership program like Patreon is accessible, but it requires offering substantial value to retain members.
Examples given include Hannah Witton making approximately 3,000 to $7,000 a month on Patreon, and Anne-Laure generating $100,000 a year from Ness Labs.
Maintaining a membership program's income typically becomes easier after the challenging establishment phase.
The creator's own membership community for YouTube alumni earns about $2,800 a week, but requires active participation and is not entirely passive.
Automating a business involves selling goods or services and then delegating or outsourcing to reduce active involvement.
Successfully automating a business requires considerable setup but can lead to reasonably passive income once operational.
Examples include a $1 million Shopify store selling vegan leather goods and an Instagram/Facebook ads agency.
Starting and earning the initial $100 a month from such businesses is challenging due to the value creation involved.
Once established, the maintenance effort is less intense, hence easier to manage.