6 Can’t Miss Passive Income Streams for 2020 1 | © Simple...
Transcript of 6 Can’t Miss Passive Income Streams for 2020 1 | © Simple...
6 Can’t Miss Passive Income Streams for 2020 | © Simple Economics 1
6 Can’t Miss Passive Income Streams for 2020 | © Simple Economics 2
The future can be unpredictable. You could be made redundant tomorrow. If
that happened, are you prepared? Sadly, for many people, the answer is no.
Thankfully, this doesn’t have to be the case. As we’ll learn, building passive
income streams isn’t as complicated as it appears. In this book, you’ll learn the
secrets to building a successful business. We’ll cover everything from
harnessing the power of social media, to profiting from the financial markets.
So, take control of your financial future today.
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Contents
Chapter One: How to Build a Business ......................................................................................................... 5
Step One: Come Up With a Business Idea ........................................................................................................ 6
Step Two: Decide on Your Business Model ...................................................................................................... 7
Step Three: Create a Business Plan .................................................................................................................... 7
Step Four: Get Started ........................................................................................................................................... 7
Chapter Two: How to Get Conversions ........................................................................................................ 8
Build Your Brand ..................................................................................................................................................... 9
Advertise ................................................................................................................................................................. 10
Build a Funnel ........................................................................................................................................................ 10
Track Your Conversions ....................................................................................................................................... 10
Chapter Three: Start Investing ....................................................................................................................... 11
Pros and Cons of Investing ................................................................................................................................. 12
Different Types of Stocks .................................................................................................................................... 13
How to Acquire Stocks ......................................................................................................................................... 13
Balance Your Portfolio ......................................................................................................................................... 14
Peer-to-Peer Lending ........................................................................................................................................... 15
Chapter Four: Creating an E-Book or Online Course ...........................................................................16
Find Your Niche ..................................................................................................................................................... 17
Create Your Materials .......................................................................................................................................... 17
Consider Getting Professional Help ................................................................................................................. 18
Create an Engaging Blurb ................................................................................................................................... 18
Promote It ............................................................................................................................................................... 19
Repeat...................................................................................................................................................................... 19
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Chapter Five: Rental Properties .................................................................................................................... 20
Pros and Cons of Real Estate Investing ........................................................................................................... 21
Types of Real Estate ............................................................................................................................................. 22
Responsibilities ...................................................................................................................................................... 22
Finding a House..................................................................................................................................................... 23
Using The BRRRR Method ................................................................................................................................... 23
Choosing the Right Tenants ............................................................................................................................... 24
Chapter Six: Using Affiliate Marketing ....................................................................................................... 25
What Is Affiliate Marketing? ................................................................................................................................ 26
Step One: Build Your Platform ........................................................................................................................... 27
Step Two: Use SEO To Get Ranked In Search Engines ................................................................................. 27
Step Three: Sign Up to Affiliate Platforms ....................................................................................................... 27
Step Four: Start Marketing .................................................................................................................................. 28
Chapter Seven: Earning on Social Media ................................................................................................. 29
Step One: Build Your Following ......................................................................................................................... 30
Step Two: Choose a Product .............................................................................................................................. 31
Step Three: Make Engaging Ads ........................................................................................................................ 31
Step Four: Measure Engagement and Adjust Your Approach ................................................................... 31
Chapter Eight: Conclusion ............................................................................................................................... 32
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Chapter One:
How to Build a Business
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Owning and running a business is one of the best ways to become financially independent. If you want
to achieve the life you’ve dreamt about, this is one of the best ways to do it. Yet, many people don’t
achieve their dream life. They feel that building a business will be too difficult. While you can expect to
face challenges, starting and running your own business is possible. You achieve the freedom of
becoming your own boss and not having to take orders from anyone. It is also one of the best ways to
build passive income, allowing you to make money without investing much time. To help you do this,
let’s look at some of the best ways to achieve success when building your own business.
Step One: Come Up With a Business Idea
One of the areas that people struggle with is creating a business plan. They feel that there are no good
business ideas left. However, this isn’t the case. All you need to do is identify a problem and come up
with a solution. For example, if you notice a lot of working professionals in your local area, you may
want to set-up a dog walking business. You may also want to consider some of the skills that you
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possess, and this can often tell you the type of areas that you should be considering. For example, you
may be skilled at working with children. In this case, you may want to consider opening a childcare
center. Remember to think outside the box, and don’t be afraid to dream big.
Step Two: Decide on Your Business Model
Recognize the three primary methods that businesses use to make money: First, offer a product that
someone else has produced. Then, create and distribute a product yourself. Finally, provide a service
for people. Once you know which model you will be using, you will be able to create a business plan.
Step Three: Create a Business Plan
Before you can begin to create a business, you will need a plan. This plan should tell you everything
you need to know to run it successfully. For example, you will need to allocate roles, so you know who
is responsible for what. You may also have to do some basic math. For instance, you will need to know
the number of sales you will need for the business to turn a profit. Take some time when preparing
this document, as it will be your blueprint for running a successful organization. You will also need to
show it to investors to convince them to lend you money.
Over time, you will learn more about how business works, and you will need to adapt to market
changes. For example, you may want to offer a different product to appeal to a broader demographic.
For this reason, you should be sure to keep adjusting the business plan. By doing this, you will always
know where the business is heading.
Step Four: Get Started
By now, you should have a clear idea of both the type of business you’re starting and how it will need
to be run. Once you understand this, you can get started, since it is the essential step. There are
multiple ways to achieve this. For example, you can start developing a product. Or, you can begin
approaching investors to get the capital needed to start.
Creating your business is only part of the struggle. You will then need to get customers, so you can
start making money. We’ll look at how to do this in the next chapter.
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Chapter Two:
How to Get Conversions
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For your business to grow and expand, you will have to learn how to get more customers. Often, this
means advertising yourself. While many people believe that this is complex and expensive, this doesn’t
have to be the case. Let’s look at how you can make your marketing easy and effective.
Build Your Brand
One of the first things that you will need to do is build your brand, that is what will come into people’s
minds when they think about your company. A brand encapsulates the kind of values with which you
want to be associated. For example, when you think about Disney, you know that they are designed to
be family-friendly, even if their marketing doesn’t explicitly state this. When done correctly, the brand
impression will stay with customers much longer than any single piece of marketing. For this reason,
you need to make sure that you take the time to build it correctly.
When building your brand, there are several steps that you will need to go through. First, you should
think about what values in which you want to be associated. Once you know this, you need to be sure
that they are reflected in your marketing materials. These are especially important when considering
the name and logo that you will be using. It would be best if you also were sure to learn from the
competitors in your niche. Analyze their branding and find out what they are doing successfully. Also,
you may want to do focus groups on your target, which will allow you to test how these are perceived,
making any necessary changes.
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Advertise
Before you can make conversions, you will have to learn how to advertise your brand. To do this, you
will have to make sure that you are focusing on the places where you can easily reach your target
audience. You will be able to use market research to help you find these locations. For example,
younger people tend to spend less time watching television, meaning that using this network to try to
connect with them won’t produce good results. When targeting this demographic, you would have to
move onto social media networks. In particular, you may want to focus on platforms like Instagram,
where young people make up the majority of the user base. We’ll discuss how to build a following on
social media later in this book.
Build a Funnel
Once you get people to visit your site, you will need to produce conversions, which occurs when you
convince people to make a purchase. There are a few techniques that you can use to achieve this.
First, you will have to guide them through a funnel, a series of steps designed to make them more
likely to purchase your products. Generally, you will first have to make people aware of the problem.
Next, you will need to convince them that your product can solve that problem for them. Once they
have made a purchase, be sure to stay in touch. It will be easier to convince previous customers to
make a repeat purchase than to convert a new customer.
Track Your Conversions
The key to increasing the number of conversions you receive is to track usage on your site. Tracking
will tell you potential problem areas that need to be improved. For example, you may notice that
multiple people are clicking off your site in the same place. When you see this, you may want to go
back and re-design this section. You should also be sure to monitor which campaigns are the most
successful, and doing so will tell you the areas that you should be focusing your time and money on,
to get the best results. By continuing to do this, you will be able to improve your conversion rate
dramatically, in some cases, by up to 50 percent.
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Chapter Three:
Start Investing
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Another great way of building passive income is by investing. While many people consider this to be
too complex, this isn’t true. If you are willing to spend a bit of time learning about the markets, you will
be able to reap huge rewards. These skills will allow you to build a stable financial future. The best part
is that you can do it from anywhere in the world. Often, all you’ll need is an internet connection. Let’s
look at how this works.
Pros and Cons of Investing
Before we look at the available investment products, there are some pros and cons that you may
want to consider. First, when you invest in the financial markets, you will have the chance to produce
strong returns. On average, you will be able to get a 10% return, which is a great way to grow your
money. However, you should be aware that there can be a lot of market variability, meaning that
there may be instances where you lose money. As we’ll discuss, you can reduce the chances of this
by creating a diversified portfolio. You will also have to be sure to research each investment option
before you invest.
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Different Types of Stocks
There are multiple different investment options for you to consider, allowing you to choose ones that
you find worthwhile. Some of the biggest ones are stocks, which will enable you to purchase a share
in a company. As the organization makes money, the value of your investment will rise. Also, some
stocks will pay a dividend, where the company pays you a percentage of their profits. Alternatively, you
may want to purchase bonds, which is like giving the organization a loan. In exchange, you will be paid
a percentage of the bond amount. When the bond is over, you will have your initial investment
returned. You may also want to explore Exchange Traded Funds (ETFs). These are a mix of stocks. For
example, you may want a combination of tech stocks or multiple American companies. Because you
are purchasing various stocks, you will be able to average out your results and help reduce your risk.
How to Acquire Stocks
While many people assume that purchasing stocks and bonds will be a complicated process, this isn’t
the case. You will be able to do it from your phone in a few minutes. First, you will have to find a broker.
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These will place the buy and sell orders on your behalf. There are multiple options from which to
choose. However, it would be best if you tried to find one that has low transaction fees. Once you’ve
found the broker, select the investment product that you want to purchase. Then, you will need to
decide on your order size. For example, the number of shares that you want to own. Finally, you will
need to determine if you wish to buy or sell. If you buy, you expect the price to go up. If you sell, you
assume the price to fall. Once you’ve checked the order, you can execute it. The broker will then place
your trade.
The process of placing an order.
Balance Your Portfolio
When you invest your money, you should be sure to keep a balanced portfolio. Avoid placing all your
money in one industry or company. If bad news comes out about that organization, you could be at
risk of losing a large chunk of your investment. You can do this by mixing individual stocks with ETFs.
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You can also reduce the risks by staying informed. While you won’t need to read in-depth articles on
the outcomes of trade negotiations, you should have a general overview of the market’s activities.
Peer-to-Peer Lending
You may also want to consider using a peer-to-peer lending site. These will allow you to loan money
to people who will pay you interest, similar to a bond. When doing this, you must find a trustworthy
site. Also, make sure that you understand the policies if the customers don’t pay on time, ensuring
that you don’t lose your investment due to an unreliable borrower.
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Chapter Four:
Creating an E-Book or Online Course
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Do you have a gift for telling engaging stories? Do you have a desire to help people? If so, you might
want to create a book or online course. While some people might feel that it will be too difficult, you
can create and sell these products. Once made, they can be a great way of producing passive income.
They will be able to provide income as long as people purchase them. For the average book, this can
be as much as 3,000 copies over its lifespan. However, some books can go on to sell much more than
this. Let’s look at how to make and market these resources.
Find Your Niche
The first step is to find a niche that works for you. To make sure that you produce the best possible
topic, try to find something that interests you. Once you have found the area, try to get as much
information about your audience as possible. For example, you might want to research the top-selling
materials, to find out what makes them so appealing. You can also look at the top search results in
that area, which will tell you what information people are seeking. Use all the information you’ve found
to create materials that will appeal to your audience.
Create Your Materials
Once you have done the research, you are ready to start putting it all together. As you do this, make
sure to keep your audience at the front of your mind. By doing this, you can make sure that you will
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provide useful information. It will help if you start by outlining, which will tell you in what order the
content has to go. You should make sure that each section builds on the last so that by the end of the
book or course, the audience has a deep understanding of the topic. Once you’ve planned everything
out, you can start writing the book or creating the course.
Consider Getting Professional Help
While some people might feel comfortable creating everything themselves, others will be dreading the
prospect. Thankfully, there are plenty of people who can help you make online resources. In the United
States alone, there are around 53.7 million freelancers. These talented professionals can help you put
the project together, making sure that everything is completed to a professional level. You can find
them on sites like Upwork and Fiverr. When you work with these people, make sure to give them clear,
detailed instructions, ensuring that they produce something that you can accept.
Create an Engaging Blurb
Once you’ve created your e-book or online course, you need to make sure that you create an engaging
blurb, helping to convince people to purchase your products. To make sure that it’s perfect, you might
want to create multiple options and test them on your target audience, telling you which one the
audience prefers. It would be best if you remembered that your audience would expect you to keep
any promises that you make. If you don’t fulfill these expectations, you might end up leaving people
disappointed, making them more likely to give a negative review.
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Promote It
Finally, you are ready to start selling it and will allow you to make money from all your hard work. There
are several ways that you can do this. For example, you might want to use social media sites.
Alternatively, you can write a promotional blog, design a website, or take out ads. The good news is
that when people find something that provides value to them, they are likely to recommend it to their
friends and family.
Repeat
Once you’ve finished one book or course, you will be more familiar with the process that you need to
go through, meaning that it should be easier to create a second one. Remember, the more courses or
books you have available, the more passive income you will be able to earn.
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Chapter Five:
Rental Properties
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Another great of earning passive income is by purchasing and renting out properties. Each month, you
will be able to collect rent. The more properties you own, the more rent you will be able to collect.
Alternatively, you might want to purchase and renovate a property. Then, you will be able to make a
big profit when you decide to sell it. However, like any investment, there are some tricks you can use
to maximize your returns. Let’s look at how you can get the most of your rental properties.
Pros and Cons of Real Estate Investing
Before you invest in real estate, you should make sure that you understand the pros and cons
associated with this option, allowing you to evaluate whether or not you want to earn passive income
this way. First, you should be aware that it can be expensive to purchase a real estate investment
property, making it harder to enter this market. However, once you’ve got a deposit, you will be able
to achieve a relatively stable rental income. Finally, you should be aware that property values won’t
always increase, meaning that you may risk making a loss when you sell the property.
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Types of Real Estate
If you do decide to invest in the real estate market, there are several types of property that you might
want to consider purchasing. For example, you might want to get a smaller, single-story family home.
Alternatively, you can choose to rent out an apartment building, which will cater to multiple families.
There are various options from which to choose. Each of these brings unique pros and cons. For
example, managing a multi-family property can be more difficult, but you will be able to obtain a more
significant rental income.
Responsibilities
There are several responsibilities that you will encounter if you decide to rent out the property.
Generally, you will be required to maintain an environment that is safe and habitable for your tenants,
meaning to be sure that your house meets all the necessary legal requirements. These will vary
depending on where you live. For this reason, you might want to consider hiring someone to inspect
the property for you, before you rent it out to tenants. They will be able to spot any potential safety
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issues for you, so you can have them corrected. You will need to be for some repairs. To help with
these costs, you will need to make sure that you have an insurance policy.
Finding a House
To make money from real estate, you will need to learn how to find a property that is in a good location.
When doing this, there are a few things for which you should look. First, you should try to find an area
that is close to the city. You might also want to consider the neighborhood. Try to find places that have
a good reputation and have low crime rates. Finally, you might want to consider the state of the
property. For some people, they want a well-maintained property, so they can start renting it out
instantly. However, if you intend to use the BRRRR method, you shouldn’t be afraid to purchase
something that is a little more run-down.
Using The BRRRR Method
One of the most popular ways of making money in real estate is by using the BRRRR technique. Let’s
look at some of the stages that this will involve.
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1. Buy. First, you will need to find a great property to purchase. To save money, focus on the
location and potential of the property, rather than its current condition.
2. Rehab. Next, you will need to refurbish the house. During this stage, you want to focus on
making it livable, meaning fixing significant issues, like plumbing leaks or holes in the ceiling.
3. Rent. Once you’ve fixed up the property’s faults, you should rent it out, allowing you to begin
making money from your property, recouping some of the costs that you spent to acquire and
fix it up.
4. Refinance. Once you’ve been renting for a few months, you should go back to the bank and
request more money. If they can see that you have been successful in renting the property,
they will be more likely to grant this request. You can then use this money to invest in another
house.
5. Repeat. Lastly, you will be able to start the cycle again. The more often you repeat this, the
bigger your rental income will become.
Choosing the Right Tenants
When you invest in the property market, you will need to find the right tenants. By taking a little extra
time to rent to the right people, you will be able to save lots of money. Good tenants will require you
to spend less money on property repairs. You will also have to resolve fewer disputes with the
neighbors. There are a few ways that you can find a great tenant. For example, you might want to look
into their rental history, to see how they treated other properties. You might also want to take note of
how they acted during the inspection. For example, did parents keep their children well-behaved?
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Chapter Six:
Using Affiliate Marketing
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If you are looking for an easy way to grow a second income, you will love the opportunity to become
an affiliate marketer. Depending on how good you are, you may be able to earn around $10,000 each
month, allowing you to be part of a growing industry, with advertisers expected to spend about $8.2
billion on this type of marketing in 2022. By mastering these skills, you will be able to build a steady
business, relying on the money from affiliate marketing.
What Is Affiliate Marketing?
Let’s start by looking at what this approach is and how you will be able to use it to make money. Affiliate
marketing is where you make a network to sell someone else’s products. In exchange, they will pay
you a percentage of the sale. The more people you convince to purchase the product, the more money
you will earn. To give you a better understanding of how this would work, let’s look at an example. You
might decide to build a blog, dedicated to giving people information on a particular topic. Then, you
spot a product on an affiliate like Amazon, which you feel your customers would appreciate. You would
then make a post talking about the product. During the post, you will need to use your affiliate link,
which tells Amazon that you referred that customer. Then, if they purchase one of the products, you
will receive a percentage of the profits. Now that we understand how this works let’s look at some of
the ways you can build a profitable affiliate network.
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Step One: Build Your Platform
The first thing that you need to do is create your platform. For example, you will have to decide what
niche you will be targeting and why people will be attracted to your content. Once you do this, you will
be able to build a website to cater to this audience. You can find out what they will be interested in by
looking at search engine results. If you don’t have the skills or time to build your site, you will be able
to use the internet to find someone who can help you make it.
Step Two: Use SEO To Get Ranked In Search Engines
Once you’ve built your site, you need to be sure that you get noticed by the search engines, which will
deliver a great deal of traffic. To do this, you will need to use Search Engine Optimization (SEO), which
means placing keywords throughout your content. You might also want to organize guest posts on
other sites, increasing your exposure online and improve your engine ranking.
Step Three: Sign Up to Affiliate Platforms
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Before you can get your link, you will need to sign up to be an affiliate marketer, which usually means
filling a few online forms. There are multiple platforms that you can choose to explore. For example,
you can sign up with Amazon, eBay, and Shopify. Each of these sites will pay a slightly different amount
and operate a little differently. So, it would be best if you were sure to do your research before you
sign up to make sure that it is right for you.
Step Four: Start Marketing
Once you have a large enough fanbase, you can start your affiliate marketing efforts. To get the best
results, you should mix the ads in with useful information. For example, you might want to tell people
about a medical issue, and then offer them a link to a product they can use to help them overcome it.
It would help if you also started collecting emails. Doing this will allow you to refine your marketing as
you learn what products each of your customers are seeking. Once you have a great system in place,
you can consider hiring freelancers to write the content for you. Then, you will be able to spend your
time relaxing, as the affiliate system earns money for you.
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Chapter Seven:
Earning on Social Media
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While many people use social media as a fun way to connect with friends and family, you might be able
to use these sites to help you generate passive income.
Step One: Build Your Following
Before you can start earning, you will need to fill
your page with useful content. To do this, you will
need to choose a particular niche. Target that
audience with things that you know they will enjoy.
It’s also important to establish a regular schedule,
posting images frequently. Some more useful tips
can be found below.
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Step Two: Choose a Product
Once you’ve built your platform, you can start to think about monetizing it. To do this, you will need
to choose what product you can sell. You can either make these products yourself or become an
affiliate marketer.
Step Three: Make Engaging Ads
Next, you will need to make ads to help convince people to buy a product. You should make sure that
there aren’t too different from your usual content, ensuring that people will engage with them. Also,
you should have a clear objective in mind. For example, you might have a link that you want people to
click or a product you want them to purchase. Finally, you should make sure that the ad is optimized
for the social media platform.
While it’s fine to monetize your platform, you don’t want to use too many ads, which can risk
overwhelming your audience. For this reason, you might want to follow the 80/20 rule. This principle
states that 80 percent of your posts should be designed to entertain and inform, while 20 percent
should be ads.
Step Four: Measure Engagement and Adjust Your Approach
The final step is to measure how many people interact with each ad. As you do this, don’t be afraid to
try new approaches, to find out what works best for you. By doing this, you will be able to refine your
content so that you can create a more effective campaign.
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Chapter Eight:
Conclusion
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Earning passive income should be your focus. It will allow you to achieve
financial stability, as you don’t have to become reliant on one income source.
Throughout this book, we’ve looked at some of the best methods you can
use to achieve this desire. As we’ve seen, you don’t need any special skills or
equipment to earn passive income. All you require is an internet connection
and a phone. We’ve also seen that there is more than one way to earn a
passive income, which will allow you to choose the method that works best
for you and focus on mastering it. Or you may select a mix, building multiple
income sources. So, put this information to good use and achieve your
financial dreams by earning a passive income.