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

by Ali Abdaal · 7,784 words · 1,078 segments · language en · Watch on YouTube

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0:00hey friends welcome back to the channel
0:01in this video we're going to talk about
0:02nine different ways that you can make
0:03passive income and for each of those i'm
0:05going to talk about how hard it is to
0:07get started how hard it is to make 100 a
0:09month from it and how hard it is to
0:11maintain once you've created the thing
0:12in the first place for me in my business
0:14these nine different sources generate
0:16around 27 000 per week these days with
0:19varying degrees of passiveness and
0:21obviously this has taken me like eight
0:22years to build up so don't expect to be
0:24hitting those sorts of numbers when you
0:25first get started but this is the video
0:27that i wish i would have had when i
0:28started my financial independence
0:30journey many many years ago let's go for
0:32it all right so when i say passive
0:33income i always air quote it because
0:35there is really no such thing as passive
0:37income there is no way to make money
0:38without doing anything at all but when i
0:40say passive income what i mean is that
0:42it's money that is not directly tied to
0:44our time so let's say you were to write
0:46a book if you write a book you publish a
0:47book that book is now in bookshelves
0:49you've done the work kind of once to
0:51write and publish the book but now any
0:53time the book sells you make money from
0:55royalties that is passive income you
0:57could literally be making money while
0:58you sleep because you've created this
1:00thing which is out in the world which is
1:01generating income for you the other
1:03thing with passive income is that it
1:04always takes a very long time to get
1:06going so if you see any ads before this
1:09video talking about how you can get rich
1:10quick by whatever scheme or if you see
1:12people in the comments pretending to be
1:13me saying oh my god here's how you can
1:15get rich quick with crypto what's up
1:16this number that is all a scam it's not
1:18gonna work there is no way to get rich
1:21quick it is not a thing so if you're
1:22looking for a get rich quick scheme
1:24those things just don't exist so you
1:25might as well not even try and the way i
1:27think of this is that ultimately money
1:28is just a medium for exchanging value
1:30the only way to make money is to provide
1:32value and the only way to make passive
1:34income passive money is to provide value
1:37in a way that is not directly tied to
1:38your time so please please please do not
1:40try and join a get-rich-quick scheme
1:41they don't exist i've had lots of
1:42messages over the years from people who
1:44have tried signing up to a
1:45get-rich-quick crypto scheme or a
1:47gambling scheme or a hey here is how you
1:49kind of play poker online none of these
1:51things ever work people always end up
1:52losing money the only way to make money
1:54is by providing value and so let's talk
1:57about the nine different ways that you
1:59could provide value if you wanted to
2:00just before we dive in i want to tell
2:01you that i've just launched my brand new
2:02skillshare class about productivity for
2:05creators how to start a successful side
2:06hustle that's linked in the video
2:08description skillshare are sponsoring
2:09this video i'll tell you more about
2:10skillshare later on but i want to plug
2:12my own class because i think it's
2:13genuinely really good and people really
2:15like it and it will help you get tips on
2:17how you can start side hustles in your
2:18spare time anyway let's get into the
2:20video all right so let's kick things off
2:22with investing in stocks and shares and
2:24in this context the way that we provide
2:26value is by offering up our money
2:28providing money and investing in a
2:29service is in a way giving a form of
2:31value and so when we give our money to a
2:33company in the form of buying their
2:34stocks it makes sense that we would get
2:36some kind of return for that investment
2:39and we're starting with this because
2:40investing in stocks is the easiest way
2:42to make any kind of passive income if
2:44you have any sorts of savings and
2:45they're sitting in a savings account
2:46earning 0.01 interest they're not really
2:49doing very much for you whereas if you
2:50had those savings and put them in stocks
2:52you could potentially be earning passive
2:54income from the money that's otherwise
2:56just sitting there now i've got a whole
2:57video called the ultimate guide to
2:58investing in stocks and shares for
2:59beginners which is going to be linked
3:00over there somewhere so that is a solid
3:03half an hour long introduction to stocks
3:04and exactly how they work but the thing
3:06that i recommend for most beginners as a
3:07non-financial advisor and this is not
3:09financial advice purely for
3:10entertainment purposes only also people
3:12say
3:13or at least the thing that i do is that
3:14basically all my money that's in stocks
3:16and shares is invested in index funds
3:18now an index fund is something like the
3:20s p 500 and when you invest let's say a
3:22thousand dollars in the s p 500 that
3:24basically means that your thousand
3:26dollars is distributed amongst the top
3:28500 biggest companies in the us so
3:31you know weighted by how big they are so
3:32like you know two percent of it would be
3:34in apple two percent in facebook two
3:35percent in google two percent in
3:36microsoft and then you probably won't
3:39have heard of the 500th company on the
3:40list but basically all the big us
3:42companies you've heard of you end up
3:43investing in all of them a little bit at
3:46a time so if you want to get started
3:47with that all you need to do is sign up
3:48to a stock broker if you're in the us
3:50you can use weeble i think i've got a
3:51link in the description if you're in the
3:52uk you can use free trade or vanguard
3:54basically whatever country you're in
3:55just google the phrase best stock broker
3:57platform
3:58your country name and you'll find
3:59something that works for you and then
4:01it's very easy to be able to invest in
4:02an index fund so within our famous side
4:04hustle assessment matrix um we're going
4:06to give the difficulty of starting a one
4:08star rating one out of five it's very
4:10very easy to get started with stocks how
4:12hard is it to make a hundred dollars a
4:14month by investing in stocks and shares
4:16well this kind of depends because it
4:17depends on the performance of the stock
4:18market overall so in the last 12 months
4:20from 2020 to 2021 the s p 500 has
4:23actually increased by about 50 percent
4:25that is that is a lot it's like gone up
4:27by a solid 50 despite covet and
4:29everything going on so if in april 2020
4:32you had invested 2 400 in the s p 500
4:35the fact that it's gone up by 50 means
4:37you would have made 100 a month but
4:39obviously this is not the way to look at
4:40it because you know things can go up and
4:41down and the stock market has different
4:43level levels of performance depending on
4:44what time period you're looking at but
4:46if we average out the last 30 to 50
4:48years the s p 500 has had a roughly 10
4:51point something percent return which
4:52means every year on average over the
4:54long term it goes up by around 10
4:56this is not inflation adjusted for any
4:58economist among us and so if we do some
4:59back of the envelope calculations if we
5:01want to earn a hundred dollars a month
5:02passively through stocks and shares we
5:04would need around about 12 000
5:06invested in the s p 500 to make that ten
5:09percent twelve hundred dollars a year
5:10which is a hundred dollars a month but
5:11as i talk about in that video about
5:13stocks over time we have compounding and
5:14so if you put in seven thousand five
5:16hundred dollars in the s p 500 and you
5:18left it there for five years then five
5:20years later you would be making roughly
5:22100 a month if we go by this very
5:24average figure of 10 a year or if you
5:26invested 5 000 in the s p 500 then 10
5:29years later you'd be making 100 a month
5:31in purely passive income again assuming
5:32the 10 average so overall how hard is it
5:35really to make 100 a month in passive
5:36income from stocks and shares well it
5:38kind of just depends on how hard is it
5:39for you to make five thousand seven
5:41thousand five hundred or twelve thousand
5:42dollars in savings and put them into a
5:44stock market index fund uh and crucially
5:46this is money that you shouldn't need to
5:48touch in the next five to ten years at
5:49least so basically how easy is it for
5:51you to them to make that sort of money
5:53obviously varies massively depending on
5:54which country you're in uh and what your
5:56circumstances are and what your job is
5:58but if you're in the uk or the us where
5:59the median kind of average salary is
6:01around about fifty thousand dollars
6:03something like that then again depending
6:04on your circumstances it's not that hard
6:06to get ten thousand dollars in savings
6:08obviously if you're supporting a family
6:09of fifteen people on fifty thousand
6:10dollars it's different if you're a
6:11single person again it's different but
6:14i'm gonna give this roughly a three out
6:16of five star rating for difficulty of
6:18getting a hundred dollars a month
6:19obviously if you live in a country like
6:20india where the average salary is three
6:21thousand six hundred dollars a year it's
6:23very very difficult to make ten thousand
6:24dollars in savings overall and finally
6:26the third category in our side hustle
6:28assessment matrix is how hard is it to
6:29maintain this income once you've set it
6:31up in the first place and we're gonna
6:33give this a one star out of five because
6:35once you've got the money in you just
6:36like set it and forget it and it's not
6:37that hard to maintain there are other
6:39sources of passive income that require
6:41higher degrees of maintenance over time
6:42but stocks and shares is a very very
6:44easy way to make passive income and to
6:45use my personal example these days my
6:47stocks and shares portfolio which i've
6:49been investing in since 2015 is now
6:51worth around about 350 000 and the vast
6:54majority of that is in the s p 500 index
6:56fund now i can't be bothered to work out
6:57the actual inflation adjusted returns
6:58for that but again if we assume a very
7:00very rough average of 10 a year then
7:02that averages out to around 682 dollars
7:05per week in purely passive income all
7:07right idea number two for generating
7:08passive income is to start a youtube
7:10channel this is something i will
7:12specialize in because i'm here on
7:13youtube and i actually teach a course
7:14called the part-time youtuber academy uh
7:16linked in the video description where i
7:17teach people how to do this sort of
7:18thing so let's use our side hustle
7:20assessment matrix and we'll talk about
7:21this how hard is it to start a youtube
7:22channel well i'm gonna give this one out
7:24of five stars because it's actually very
7:25very easy to start a youtube channel you
7:27just go on youtube.com you click create
7:29a channel and you can upload videos by
7:30just filming with your phone and
7:31uploading it in reality it's a lot
7:33harder to make good videos and making
7:35good videos is how you grow on youtube
7:37but getting started on youtube is very
7:39very very straightforward the real
7:40question is how hard is it to actually
7:42make real money from youtube so again
7:43let's say we want to make a hundred
7:45dollars a month in passive income what
7:47does that look like well firstly to be
7:49eligible for monetization on youtube you
7:50need a thousand subscribers and four
7:52thousand hours of watch time it took me
7:55six months and 52 videos to get my first
7:571 000 subscribers and if we look at the
7:58averages it actually takes on average 90
8:00something videos to get to a thousand
8:02subscribers so that's quite hard if
8:04you're thinking you're gonna start a
8:05youtube channel and start making money
8:06from day one you're you know that's
8:07basically not gonna happen it took me 52
8:09videos six months to get there um so if
8:11people message me like hey i want to
8:12start youtube i was like look you have
8:14to be able to put in the effort and do
8:16this for a very long period of time uh
8:18at least once a week i say for at least
8:19two years before you can expect anything
8:21in return but let's say you've hit your
8:22thousand subscribers in your 4 000 hours
8:24of watch time how hard is it to actually
8:26make 100 a month well on average the
8:28kind of revenue per thousand views on
8:30youtube is around about two dollars so
8:32this varies massively but let's say on
8:34average about two dollars per thousand
8:36views therefore if you want to make 100
8:37a month you need 50 000 views on youtube
8:40to make 100 a month let's say you make
8:41one video per week and let's assume
8:43you're not getting any traffic on your
8:44older videos that means every video you
8:46make needs to get around about 12 500
8:49views and very roughly the average
8:50youtube channel can expect around about
8:5220 percent of their subscribers to equal
8:54the average view count for each video so
8:56on youtube if you had 62 000 subscribers
8:59very roughly very averagely you can
9:00expect 20 of them i.e 12 500 views on
9:03each video and assuming you have no
9:05evergreen content of the long term you
9:06would need around about 60 000
9:07subscribers to be making 100 a month in
9:09reality you make 100 a month a lot
9:11before 60 000 subscribers i think i was
9:13making 100 a month when i had like 10
9:15000 something subscribers like it was it
9:17was fairly early on but when it comes to
9:19assessing how hard is this to do i'm
9:21going to give this a 4 out of 5 stars
9:23it's actually very hard to make
9:25compelling youtube videos and it's very
9:27easy to get started but it's hard to do
9:28well it's totally worth it it's a great
9:30skill set it's really fun you get to
9:31meet people across the internet you get
9:33to learn how to talk to a camera and how
9:34to film and video edit and it's really
9:36great but it's very hard to actually
9:37make money from youtube finally in terms
9:39of effort to maintain like actually
9:41getting that first 1 000 subscribers is
9:42a lot harder than keeping it growing
9:44because once you've got a thousand
9:45subscribers and once your channel is
9:46growing it means you've landed on a
9:48formula that works and so maintaining it
9:50then becomes easier than starting from
9:52scratch and so in our side hustle
9:53assessment matrix we're going to give
9:54maintenance of a youtube channel passive
9:56income stream to be around about 2 out
9:58of 5 stars to use my example i made 70
10:01videos before i started making any money
10:02from youtube adsense and these days the
10:04youtube channel makes around about 12
10:06000 a month in passive income from
10:08youtube ad sets now again this is not
10:10entirely passive because i keep on
10:11uploading new videos but actually the
10:13bulk of the amount of money that we
10:15generate from ads is from older videos
10:17rather than videos that were uploaded
10:19this month so with that caveat twelve
10:20thousand dollars a month passive income
10:21is run about three thousand dollars a
10:22week thanks to this youtube channel and
10:24thanks to you guys for supporting it and
10:25all that stuff there are other ways of
10:27monetizing youtube like brand deals and
10:29like selling merch and there's all other
10:30sort of stuff but it doesn't really
10:32count as passive income through youtube
10:33which is why i'm not including this in
10:34this side hustle assessment matrix idea
10:36number three for making passive income
10:38is to start a podcast this is generally
10:40easier than starting a youtube channel
10:41although growing a podcast is a lot
10:42harder than growing a youtube channel
10:44because because podcasts themselves
10:45don't really have a algorithm that's
10:47helping them grow in fact a lot of
10:49podcasts grow by having a youtube
10:51channel which is kind of weird right so
10:52how hard is it to start a podcast well
10:54again one out of five stars it's very
10:56very easy to start a podcast go on
10:57anchor fm and you can literally use your
10:59phone and you can pass your phone around
11:01between you and your friends and you can
11:02start a podcast you can use a website
11:04called riverside.fm that i've recently
11:06invested in as an angel investor
11:07riverside makes it very easy to record
11:09remote podcast interviews it's very very
11:12easy to start a podcast but how hard is
11:14it to make 100 a month in passive income
11:16from a podcast well again this is not
11:18quite passive income because the way
11:20podcasters make money is by relying on
11:22brand deals there is no youtube adsense
11:24for podcasts and so you need a
11:26sponsorship or a brand deal to make any
11:28money through your podcast generally
11:29speaking and apparently you can expect
11:31to make around 18 for a 30-second ad in
11:33a podcast and 25 per thousand views or a
11:36thousand listens for a 60-second ad so
11:38if you want to make 100 a month and
11:40assuming you have a stream of
11:41sponsorships who are giving you that
11:43level of sponsorship deal based on your
11:44download numbers you would need around a
11:47thousand downloads per episode if you
11:49have a weekly podcast so you would have
11:514 000 downloads a month and if you're
11:52putting a 60 second ad in there for 25
11:54dollars per thousand views that would
11:56make you around about a hundred dollars
11:57a month by having a thousand downloads
11:59per episode and four episodes per month
12:00this begs the question how hard is it to
12:02get a thousand downloads per month well
12:04it's a lot harder to get a thousand
12:06podcast downloads per month than it is
12:08to get a thousand youtube views per
12:09month because again youtube has so much
12:10distribution built in
12:12it's different to podcast also loads
12:13more people are on youtube than on
12:14podcasts but if we look at the stats
12:16then it's the top 20 of podcasts in the
12:18world that get on average more than a
12:20thousand downloads per episode to use a
12:22friend of mine as an example my
12:23housemate sheen started her own podcast
12:25around five months ago there will be a
12:27link to that in the description if you
12:28want to check it out and on average her
12:29podcast gets round about 400 to 500
12:32downloads per episode this is not bad at
12:34all especially considering she started
12:35five months ago and had zero audience
12:37when she started so she didn't have the
12:38unfair advantage that i did when
12:40starting my own podcast for example and
12:41because she's just launched season two
12:42of her podcast and has just started
12:44posting videos about it on youtube that
12:46will really help the podcast grow and
12:48i'm pretty sure that in the next six
12:49months she'll be she'll be getting to a
12:51point where she can quite easily make a
12:52hundred dollars a month from her podcast
12:54so going back to our side hustle
12:55assessment matrix starting a podcast one
12:57out of five stars making a hundred
12:58dollars a month i'm gonna give that a
13:00three out of five stars because it's
13:01hard but not as hard as maybe monetizing
13:04on youtube where you have this minimum
13:05threshold and finally maintenance well
13:07it's not really passive income because
13:09you do have to keep on making podcast
13:10episodes because the brand deals are
13:11associated with that but again once
13:13you've stumbled on a formula that works
13:14once you know how to be a podcaster it's
13:16easier to continue going once you've
13:18already gotten started as is the case
13:20with most things and so in terms of
13:21maintenance of the podcast i'm going to
13:22give that two stars to use me as an
13:24example so me and my brother have a
13:25podcast called not overthinking link in
13:27the video description if you want to
13:28check it out uh but we make around about
13:30625 per week from the podcast overall
13:33from brand deals and from our membership
13:35all right so idea number four for
13:36generating passive income is to become
13:38an affiliate marketer affiliate
13:39marketing means that you are selling
13:41other people's products but you're
13:42getting a percentage of the sales from
13:44those products now apparently 48 of
13:47affiliate marketers globally earn 20 000
13:49a year which is 1 660 a month which is
13:52actually not bad at all like people are
13:53doing very well with affiliate marketing
13:55overall so how hard is it to get started
13:57with affiliate marketing well i'm going
13:58to give this a 2 out of 5 stars
14:00basically you can just sign up to an
14:01affiliate program like amazon associates
14:03so amazon have their own affiliate
14:05program which i think is probably the
14:06biggest in the world and then once you
14:07have your little special links you can
14:09post those on your website or on twitter
14:11or on social media or whatever and if
14:13people buy the product through your link
14:15or in fact buy any product on amazon
14:16through your link you'll get like some
14:18tiny percentage of the sales so pretty
14:19easy to get started with affiliate
14:21marketing but how hard is it to make a
14:22hundred dollars a month well this is
14:24actually kind of hard so let's say you
14:25had a product that was fifty dollars
14:27that you were trying to sell and you
14:28were getting five percent commission on
14:29it that would be pretty good amazon
14:30doesn't offer nearly as much as five
14:32percent it offers like two or three
14:33percent something like that and let's
14:34say your average conversion rate i.e
14:36people visiting the thing versus people
14:38actually buying the product after
14:39visiting thing let's say that's one
14:40percent which is pretty reasonable for a
14:42conversion rate you would need 8 000
14:44visits to your website or whatever to
14:46make 100 a month it's actually quite
14:48hard to get 8 000 visits per month to
14:50your website to a specific product page
14:51and generally doing well in affiliate
14:53marketing requires lots of upfront
14:54effort in terms of either building an
14:56audience or building such domain
14:58authority in whatever space you're in
15:00that you're sort of organically getting
15:01traffic now other than amazon there are
15:03a few other affiliate programs that i'm
15:04part of one of them is skillshare who
15:06are kindly sponsoring this video i'll
15:07tell you about the sponsors segment
15:08later but skillshare have an interesting
15:10affiliate program where if you refer
15:12someone to sign up to a free trial of
15:14skillshare uh you can get seven dollars
15:16in affiliate commission just for that
15:17thing so if you wanted to make 100 a
15:19month from affiliates you would need 15
15:21people every month to sign up for
15:23skillshare with your affiliate link
15:24thing how hard is it to get 15 people a
15:26month to sign up with your affiliate
15:27link well it's not that hard if you have
15:28an audience and it's not that hard if
15:30you have your own classes on skillshare
15:31like i do i have like nine of them and
15:32so if i want to make money through
15:34skillshare affiliates i can just tell
15:35people hey guys i can tell you that guys
15:37i've just released my latest skillshare
15:38class productivity for creators how to
15:40start a successful side hustle so there
15:41will be a link in the video description
15:42if you want to check that out like that
15:44would be hopefully so some of you will
15:46see that we'll click on that link in the
15:46description and then that will be me
15:48getting some affiliate income from
15:50skillshare for this video so going back
15:52to our side hustle assessment matrix how
15:53hard is it to make 100 a month i'm gonna
15:55give this a 3.5 star rating because
15:59again you need an audience and as we
16:00always talk about on this channel the
16:01way you build an audience is by creating
16:03useful content putting it for free on
16:04the internet once a week and doing this
16:06for at least two years if you just
16:08follow those three steps i guarantee
16:09you'll have an audience and you'll be
16:10able to make some kind of money through
16:11this passive income stuff but that's
16:13quite hard to do no one sticks to it for
16:14at least two years so we'll give that a
16:163.5 star rating but the good news is
16:18once you've created it and once you've
16:19started making money from affiliates
16:21it's actually quite easy to maintain
16:22because especially if you have evergreen
16:24content the sword that isn't relying on
16:25like current affairs or the latest news
16:27the sort that people might search for
16:28over a long period of time this becomes
16:30like real relatively reasonable passive
16:32income now if we look at me in my
16:33business uh these days from skillshare
16:35we make around about eleven thousand
16:37dollars per month in affiliate income
16:39which approximates to around two
16:40thousand seven hundred and fifty dollars
16:41per week and from amazon um on average
16:44like it's around about 450 a month from
16:46the amazon uk store and a little bit
16:49more from the us and canada all right
16:50method number five of making passive
16:52income is by selling digital products
16:54now these are products that you create
16:56once like an ebook or a download or an
16:59app or something like that so you create
17:01it once and then you can sell it
17:02multiple times because selling digital
17:04products doesn't usually have any cost
17:06associated with it one really good
17:07example is this guy called traff who i
17:10follow on twitter who made an ios 14
17:12icon set and sold it for like thirty
17:14dollars a pop a few months ago and ended
17:16up making i think like three hundred
17:18thousand dollars in the course of like a
17:20few weeks just because loads of people
17:21around the world wanted to buy his icon
17:23pack so he put the work into creating
17:24the pack and now he's selling it for
17:26lots of money another example is my
17:27youtuber friend olio who has made as he
17:30says seven hundred thousand dollars from
17:31selling his website tumblr themes since
17:342014. so he made the website themes for
17:36tumblr uh he sells them and he makes
17:38seven hundred thousand dollars on
17:39average uh well overall since since
17:412014. that's pretty cool so how hard is
17:43it to get started making digital
17:44products um i mean
17:47anyone can write an ebook an ebook
17:48counts as a digital product so i'm gonna
17:50give this a two star rating two out of
17:51five stars but obviously like again
17:53money is an exchange of value so the
17:55thing that you're selling you have to be
17:57providing enough value to compensate to
17:58make up for the price that you're
17:59selling it for and that's often quite
18:01hard especially if you don't have any
18:03experience in this sort of field and how
18:04hard is it to make a hundred dollars a
18:05month well you know it's very easy to
18:07create an ebook but it's a whole
18:09different ballgame trying to get people
18:10to actually buy your ebook or buy your
18:12icon set or buy your app or buy your
18:14website themes and because the market
18:16around this stuff is so competitive like
18:18you have to be genuinely really good to
18:20get people to buy your stuff and the way
18:21you get people to pay you money for
18:22something is that you identify a problem
18:24that they have you solve that problem
18:26and then you charge money for it and if
18:27you can do those three things then
18:29it's
18:30you know i wouldn't say it's easy to
18:31make a hundred dollars a month but it's
18:32very doable to make a hundred dollars a
18:34month you just genuinely have to have
18:35something that solves a pain point that
18:37other people are willing to pay for so
18:38we're going to give this a 3 out of 5
18:40stars to make 100 a month from selling
18:42digital products and finally in terms of
18:44maintenance we're going to give this a 2
18:45out of 5 stars because usually you do
18:47have to maintain your products a little
18:48bit but it's often easier to do like
18:50it's much easier to maintain a product
18:52than creating a product in the first
18:53place idea number six for passive income
18:55generation is to create an online course
18:57an online course is sort of like a
18:58digital product but generally online
19:00courses are in video format in fact this
19:02whole video is so long it could
19:03basically have been an entire online
19:04course maybe i'll do one about this very
19:06topic and in terms of getting started
19:07we're gonna give the starting difficulty
19:09a two out of five stars because it's not
19:11that hard to make an on an online course
19:14but generally you do need to know how to
19:15do video so yeah
19:17you actually could film an online course
19:18on your iphone or phone whatever phone
19:20you're using if you're one of those
19:21android heathens stick your phone on the
19:23side talk to the phone teach something
19:24so it's not hard creating one but in
19:26terms of making 100 a month again at
19:28that point your course needs to actually
19:30be good um and though the only reason
19:32people will pay for it is if the course
19:33is actually good now you can avoid
19:36having to charge for your online courses
19:37by using a website like skillshare who
19:39are very kindly sponsoring this video i
19:40have tons of classes in skillshare i
19:41think we've got nine on them in total
19:43i've been teaching on skillshare since
19:44september 2019 and i've actually just
19:46released my new online class called
19:48productivity for creators how to start a
19:50successful side hustle where i teach you
19:52the internet and how you can well create
19:54your own side hustle in your spare time
19:56without quitting your job if you want to
19:58check this out then the first 1000
19:59people to click the link in the video
20:00description will get 30 off the annual
20:02skillshare premium membership this is
20:04actually a really good deal i pay for
20:06skillshare i have been paying you for it
20:07for years even after i started teaching
20:09on it because it's genuinely a fantastic
20:11place to learn stuff they've got
20:12thousands of classes and all sorts of
20:13other topics but you should definitely
20:14check out mine like the nine that i've
20:15got there are three around productivity
20:17now like the fundamentals of
20:18productivity the sort of productivity
20:20equation which is how i think of
20:21productivity and productivity for
20:23creators i have two on how you can study
20:25for exams if you're in school if you've
20:26got exams to prepare for those
20:27apparently are really good they've got
20:29very high ratings and if you've already
20:30had a free trial of skillshare then you
20:32can still use that offer that if you're
20:33one of the first 1 000 people to hit the
20:34link in the video description you will
20:36get 30 of the premium membership and you
20:38can check out my class which i have to
20:39say is pretty good anyway thank you
20:40skillshare for sponsoring this video but
20:42genuinely skillshare is a great place to
20:44teach stuff because you can teach things
20:46on skillshare without directly having to
20:48charge for them which is why i love
20:50putting my courses on skillshare it's
20:51kind of like having something on netflix
20:53in that the end user does not have to
20:54pay directly for the product and the
20:56other nice thing about skillshare is
20:57that it's like the it's sort of like
20:59youtube in that anyone can upload a
21:00class to skillshare provided it meets
21:02certain quality requirements and so it's
21:04a lot easier than having to make your
21:05own website and create your own courses
21:07platform and all that kind of stuff so
21:08pretty easy to start we're gonna give
21:09this a two out of five but how hard is
21:11it to make a hundred dollars a month
21:13from teaching online courses now this
21:14kind of depends
21:16if you're going down the skillshare
21:18route then to make 100 a month on
21:19skillshare you need around about 1700
21:21minutes of watch time which is 28 hours
21:23of watch time so if you have a one hour
21:25class on skillshare you need 28 students
21:28to take that class every month and watch
21:29it with a premium membership roughly
21:31very broadly speaking and that will give
21:32you around about a hundred dollars a
21:34month at least those are based on my
21:35figures over the last like two years of
21:37being on skillshare now how hard is it
21:38to get 28 people a month watching your
21:40class well if your class is actually
21:41pretty good it shouldn't be too hard to
21:42get 28 people a month watching it if you
21:44have an existing audience it's very easy
21:46to get 28 people a month watching it
21:47because people already know like and
21:49trust you hopefully and so they'll watch
21:50your stuff and give you a shot because
21:52you've already built that goodwill with
21:53them but the nice again the nice thing
21:55about skillshare as a platform is that
21:57they have like their own algorithm so
21:59the good stuff rises to the top so if
22:01you genuinely have a really really
22:02really good class and you put it on
22:04skillshare then even if you don't have
22:05an audience there is still a high chance
22:07that if the class is actually good and
22:08people watch it a lot and people
22:10recommend it and give it high ratings it
22:11will rise to the top and it will start
22:13getting recommended to people who find
22:15it on the skillshare homepage or who
22:16search for it specifically the other way
22:17of making 100 a month from a course is
22:19to just charge 100 for a course and then
22:21if you do that you just need one sale
22:22every month so how hard is it to get one
22:24person a month to buy your course well
22:25again if it's good you know the world of
22:27online education is exploding so much
22:29every year more and more money is being
22:31spent on online education especially
22:32with the whole pandemic stuff so if you
22:34have a valuable skill that you can teach
22:35i think courses are one of the best and
22:37easy or easiest
22:39one of the best ways of making passive
22:40income because it's fun to create a
22:41course you can teach stuff you don't
22:43need that many technical skills like
22:45making a website or anything like that
22:46just shove it on skillshare and then
22:48people can take your course and learn on
22:50the internet and like you know it's just
22:51cool overall and the nice thing is that
22:53once you've made the course and once
22:54you're making a hundred dollars a month
22:55from it maintaining that level is
22:57actually quite easy we're gonna give
22:58that a two out of five stars because
23:00generally you don't need to update the
23:01course that often and you can do that
23:02once in a while and you just need to
23:04make sure you're getting a reasonable
23:05amount of traffic to it and hopefully
23:07that traffic will grow over time these
23:08days the vast majority of my online
23:10courses at least the very passive ones
23:11are hosted on skillshare and it's kind
23:13of ridiculous but these days they make
23:14round about sixty thousand to sixty five
23:16thousand dollars per month in purely
23:19passive income like i literally do
23:20nothing for my skillshare classes once
23:22i've made them other than reply to
23:23comments and other than occasionally
23:24plug them in videos and that's like
23:26sixty thousand dollars a month in
23:27passive income that means this is around
23:28about fifteen thousand dollars per week
23:30and this makes up the bulk of the twenty
23:32seven thousand dollars a week that this
23:33business currently generates in purely
23:35passive income idea number seven for
23:37passive income is by creating some kind
23:38of some kind of paid membership or
23:40community model now again this is
23:42generally a bad idea unless you have an
23:44existing audience which we keep coming
23:46back to like everything becomes easier
23:47when you have an existing audience by
23:49creating content that has been valuable
23:51over a long period of time very
23:52consistently that audience knows likes
23:54and trusts you and so when you say hey
23:55guys sign up to my patreon then some
23:57people are likely to do that thing the
23:58other way of doing a membership is by
24:00creating a value proposition that is so
24:02compelling that people would be willing
24:03to pay for a community-like service for
24:05this if we use patreon as an example my
24:07friend hannah witton who's a youtuber
24:09she's got around about 600 000
24:10subscribers on youtube and i think she
24:12has around 600 patrons 626 last time i
24:16checked which means if we look at our
24:18patreon stats which are public she's
24:19making somewhere between two thousand
24:21and five thousand pounds or like three
24:23thousand seven thousand dollars per
24:25month in passive income from this
24:26audience but it's like six hundred
24:28people out of an audience of six hundred
24:29thousand so one in a thousand of her
24:31subscribers have signed up to her
24:32patreon so clearly you know if those
24:34stats are true across the board and they
24:36kind of are if you look at matt
24:37developers patreon as well you need a
24:39big audience to make a significant
24:41amount of money from patreon
24:43again this sort of depends on how much
24:44you're charging for them and exactly
24:45what value you're providing another
24:46example of a paid membership community
24:48is my friend and lore who runs a website
24:50called nest labs and they have a paid
24:52membership community which is five
24:54dollars a month and she started this
24:56when was it in summer of 2019 she had
24:58zero audience at the time and she just
25:00wrote a hundred blog posts over a
25:02hundred working days and built up an
25:04audience such that in march 2020 when
25:06she launched a membership she had some
25:08paying members for it initially and i
25:09think last month she's just passed a
25:11hundred thousand dollars a year in
25:12annual recurring revenue which is pretty
25:14awesome from something that started less
25:16than two years ago so how easy is it to
25:18start a membership program well it's
25:20actually very easy
25:21we can give this a one star because it's
25:22very easy to start one you just make an
25:24account on some kind of membership
25:25platform like patreon but to make 100 a
25:28month you need to provide 100 a month
25:30worth of value and that's actually quite
25:32hard to do we're gonna give that a four
25:33out of five stars but the nice thing is
25:35again once you've got that formula once
25:36you're making 100 a month it's actually
25:38a lot easier to maintain it because the
25:40way the economics of membership
25:41communities work is provided you keep
25:43showing up and providing value in some
25:44capacity
25:46you know people have already signed up
25:47for the thing so it's not too hard to
25:48maintain that level of support that
25:50you're offering them for this business
25:51we have a membership community for our
25:53part-time youtuber academy for the
25:54alumni which is called the part-time
25:56youtuber inner circle and we make
25:58roughly 2 800 a week from this
26:00membership community it's not very
26:02passive we run like three or four events
26:04per week along with like twice a day
26:05co-working events on zoom and we have
26:07lots of stuff going on so it takes a lot
26:09of work but 2800 a week is pretty good
26:11for a membership community all right
26:13nearly there so idea number eight for
26:14generating passive income is creating a
26:16business that sells goods or services
26:18and then automating or delegating
26:20aspects of that business so that the
26:21income that you generate from it is
26:23reasonably passive this is the stuff
26:25that tim ferriss talks a lot about in
26:26the four hour work week where there are
26:28a lot of businesses that you could make
26:29where you're selling a good or selling a
26:31service and then you can delegate
26:32outsource automate and intelligent ways
26:34to make the income passive so again
26:35using my friend ollier as an example on
26:37his youtube channel he talks about his
26:39one million dollar shopify store he
26:41designs manufactures and sells these
26:43really cool vegan leather kind of desk
26:45accessories and bags and mouse pads and
26:47that kind of stuff and this was loads of
26:48work in setting up but now he's got a
26:50team of three other people that manage
26:51the business and so he spends
26:53proportionately less of his time running
26:55that business and so it's sort of
26:56passive income for him even though these
26:58days he still does spend around 10 hours
27:00a week maintaining things equally if
27:01you're going down the service route i've
27:02got a friend who runs instagram and
27:04facebook ads marketing agency where he
27:06has clients who pay him some i think a
27:09few hundred dollars per month to manage
27:10their facebook and instagram ads and for
27:12him it's like a small amount of work
27:13initially to set up the facebook and
27:15instagram ads but then it's sort of
27:17automated and he's got a team around it
27:19and he's used using things like zapier
27:20to automate aspects of that business so
27:22that each month he has to do a very
27:24small amount of actual work to keep it
27:25ticking along so these are different
27:27ways of generating passive income from a
27:29kind of goods or service based business
27:30but it's quite hard to get started with
27:32this stuff to get started we're going to
27:33give this a 4 out of 5 star rating
27:35because again you need to create a
27:37business and it's quite hard to make a
27:38business that genuinely provides value
27:40equally we're going to give it a 4 out
27:41of 5 star rating for making 100 a month
27:44in revenue because again you have to be
27:46able to provide value and providing
27:48value is hard like it's not as easy as
27:50making an account on a stocks platform
27:51just putting some money in you actually
27:52have to give value to people which is
27:54kind of hard but the nice thing is once
27:55you get started like with anything
27:56maintenance is a little bit easier so
27:58we're gonna give that a three out of
27:59five star rating finally idea number
28:01nine for generating passive income is to
28:02build an app or a website or some kind
28:04of software product that you can offer
28:06either as a one-off or more likely these
28:08days as a subscription service and
28:10there's a whole category of this called
28:12sas software as a service now if you
28:13look at the website indiehackers.com
28:15there are like literally hundreds of
28:16examples of people who have built
28:18software businesses that are making
28:20passive income and they share their
28:22revenue numbers and they tell you how
28:23they got started and they give you their
28:24tips in fact i was recently interviewed
28:26on an episode of the indie hackers
28:27podcast which is really cool because
28:29i've been listening to it for years and
28:30like been following the website for
28:31years and i was interviewed around the
28:33concept of starting an online course
28:35like the part-time youtuber academy now
28:36i've had a bit of personal experience
28:37with this so um when i was at university
28:39i made a website called bmat ninja and
28:41uk cat ninja so software as a service it
28:43was a question bank for medical
28:45applicants applying to medical school to
28:47help them do well in the admissions
28:48tests and this was something that me and
28:50my brother coded completely from scratch
28:52um he and i both know how to code we
28:53learned when we were young and so we
28:55worked over the summer of 2015 to make
28:57these things happen i think in year one
28:59we made about ten thousand dollars and
29:00in year five last year it was around
29:02twenty five thousand dollars from bmat
29:03ninja so you know it's pretty good money
29:05but it was a lot of work to set these
29:07things up and so in terms of starting
29:08out i'm gonna give this a five out of
29:10five star rating because to make an app
29:12it's actually quite hard you have to
29:13know how to code for the most part you
29:14have to be able to offer something
29:15compelling and you have to actually
29:16build it which takes a lot of work and
29:18it's very hard but it's a lot of fun and
29:20then once you've made it i'm gonna give
29:21100 a month difficulty a four-star
29:23rating because again it's easy well easy
29:26enough
29:27you can make an app but then getting
29:28people to pay for the app is an entirely
29:30different cuddle of fish so we're going
29:31to give that four stars but the nice
29:32thing is like with everything
29:33maintenance is a little bit easier so
29:34we're going to give that a three star
29:36rating if you like this video and you
29:37want to get started with your own
29:38entrepreneurship passive incomey
29:40generating journey on the internet uh
29:42check out this short playlist over here
29:44which is some of my favorite videos that
29:45i've made around tips for entrepreneurs
29:47how i got started creating my businesses
29:49from scratch how i learned to code that
29:50sort of stuff that's all in the playlist
29:52over here thank you so much for watching
29:53and i'll see you in the next video bye
29:56[Music]

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