In this article we are going to look at how can you make money while you sleep. Most entrepreneurs master passive income, and have several streams of income coming through whilst they sleep. In order to have the lifestyle and financial freedom that you desire, you will also have to setup passive income which will free up your time and allow you to concentrate on other things.
What is passive income?
Passive income is money that you are earning while you are not actively working for it. Your earnings become automated with little to no maintenance on a monthly basis. This can sound scammy or even easy, but it’s far from the truth.
First of all, passive income is not a scam, it’s more than possible and perfectly legitimate. Second, passive income is not easy, it actually requires a hell of a lot of work up front with a lot of time and patience before it actually becomes passive. Although it is hard work and very slow at the beginning stage, once it is in motion and going, it will build up momentum and continue to move with minimal effort.
Most people fail because they cannot get past the hard work stage at the beginning. They will end up quitting before things even take off, which is a shame because if you make the sacrifice and put in the work now, you will be rewarded for many years to come.
The Problem With A Regular Working System?
Most people are a slave to the 9 -5 hustle. The problem with this way of working is you have to trade time for money. Even if you are a freelancer or work for yourself, it’s great because you do not have to work for anybody else, but you are still trading time for money. There is only so many hours in a day and only so many jobs you can do within that time frame.
This puts a limit on your earning potential and you can never break through this. With a passive income such as a blog (more on this later), once you reach a certain level, you can pull in a regular income on autopilot with just a little maintenance each month. This means that you will have a lot more free time to set up a second, third, and fourth stream of income.
Don’t let that put you off doing freelancing or some other form of side hustle. It’s actually a good idea because you will have extra money coming in which you can re-invest into your business. But you will also have to be working on passive income streams whilst your doing this.
If you don’t find a way to make money while you sleep, you will work until you die. – Warren Buffet
To get started with passive income, you have to understand that it requires some initial investment which comes in two forms.
- Effort/Time: You have to be patient and put in the required work needed to create passive income streams.
- Money: If you have a budget or money upfront then you can achieve your goal faster. For example, you can invest in paid ads for your business which will generate traffic to your blog or website faster. If you do not have money to start with, stick with the first option and put in the time and effort.
Mindset and principles
When it comes to mindset, it’s a subject that not many people are interested in and completely push it one side. The truth is, you will not succeed if you first of all don’t get into the right mindset to do so. Most people have a mental block and think certain things aren’t possible or achievable.
This is a huge topic on it’s own and I will not go into much detail in this post, but if you want to learn more about this, there’s a great article on this blog titled “How To Become A More Positive Person”. After you have read this post on how can you make money while you sleep, head on over to the post and there are some great tips in there on how to change the way you think.
How Can You Make Money While You Sleep
#1 Blogging (The Best Passive Income Method)
I’ve started with this one because it’s one of the best passive income methods out there, and something you should be doing straight away. It’s one of the most reliable ways of making consistent income on autopilot, and the benefits can last for many years.
If this method is so good, why isn’t everyone doing it and why are most people not successful when it comes to blogging? There are a few reasons why:
- It requires a lot of hard work
- It takes a long time before it becomes automated
- People quit too soon
It can take Google anywhere up to 8 months before a blog post reaches it’s full traffic potential. You could write 5 – 7 posts a week, every week for 6 months and still not see much traffic. The trouble with humans these days is they want instant results. So when they check their Google analytics and see a small trickle of traffic after months and months of hard work, they get disheartened and quit.
You’ve probably saw the above image many of times across the internet. This image really relates to a blogger. You’ve been slaving away for half a year, see little to no results, and then either setup a blog in a new niche because you think the current one isn’t working, or completely give up blogging all together.
If only you kept grinding away and continued to do what you were doing, you would eventually see a spike in traffic and be on track towards earning a full time income with your blog.
Everything that’s good in life requires hard work, you do not get anything for free. There’s no such thing as a push-button system or a get rich quick scheme. Although it is hard work to run a blog, if you stick to it with a never give up attitude, the rewards are life changing.
How to start a blog:
- Hosting and Domain
- Install WordPress
- Choose a blog theme
- Start creating content
How to make money with your blog:
- Pay Per Click Advertising
- Cost Per Mile Advertising
- Advertising Space
- Affiliate Marketing
- Product Reviews
- Create & Sell Your Own Product
- Be a Consultant
- Membership Site
- Online Shop
- CPA Networks
There’s obviously a lot more to setting up your blog, and can be quite complex for a beginner. If you need a more in-depth guide, check out this post here. You will also need to know which hosting companies to choose along with themes and other tools you will need to run a successful blog. You can check out my Resources & Tools page here for more information on that.
For more in-depth training you can download my FREE How To Start A Profitable Blog eBook.
#2 Start a YouTube Channel
YouTube is a great way to earn a passive income. You could have videos on your channel that will still make you money 2, 3, or 4 years down the line. This also works great if you combine it with a blog. You can do this buy turning your blog posts into videos. If you consistently put out blog and YouTube content on a weekly basis, you could build a serious source of passive income.
The problem is, most people do not want to put themselves on camera. You have to be brave and just get over this. Most successful people when first starting a channel, the first few videos are always terrible. It’s just like any other skill, you will improve over time. Here are some other ways you can create videos without putting yourself on camera:
- Presentation Slides
- Animation Videos
- Using other peoples videos (Creative Commons)
By far the best way to do this is with a tool called Content Samurai. With this tool you do not have to put yourself on camera, and you can create amazing, professional looking videos in a few clicks. Get your 7 day free trial by clicking here
You can earn money on YouTube with:
- Ad revenue: Which you can earn through YouTube ads
- Affiliate marketing: You can recommend products and drop your affiliate link in the description or send them over to your blog.
- Your own products
You can also use a tool called TubeBuddy which will provide you with a ton of features which will help you make more money.
Writing eBooks is a great way of making passive income, because you do the work once and you can get paid over and over again. The more books you write and put out there, the more money you will start making. There are two different ways you can do this:
- Amazon Kindle: Selling on Amazon Kindle is a great option for beginners. The reason for this is because you do not have to build a website. Amazon already has a platform with an in-built audience. The downside is there is more competition, you have less control, and you won’t make so much money.
- Your own blog: Selling an eBook on your blog is a bit more complex, but you will be able to make more money and have the ability to control everything. You will also have to market and drive traffic yourself, but this is a great option for marketers with a bit more experience.
It’s estimated that around 2.14 billion people will be shopping online by the year 2021. Chances are it’s going to continue to rise higher than this as each year goes by beyond 2021. Starting an e-commerce store is something you should seriously consider and is a great way to make a passive income. The business model i’m talking about here is drop-shipping.
What is drop-shipping? Drop-shipping is a great business model for beginners because you do not have to spend money up-front buying and storing stock. The way it works is you will find a product cheap from somewhere like AliExpress, and list the item on your website with a big markup on the price. As an example, you could get something for $5, and list it on your site for $25
When somebody buys from your site for $25, you will go on to AliExpress, buy it for $5 and you pocket the $10 difference. The great part about it is, it will ship from AliExpress, straight to your customer, you will never see or touch the item. This enables you to sell on demand, you won’t have to purchase anything upfront or keep any stock.
Obviously it’s a bit more complex than this but this is the general idea behind drop-shipping to give you a better understanding. The main two platforms you can use to setup your shop are WooCommerce (on WordPress) or Shopify.
Once you reach a certain level, you can hire a virtual assistant who will process all of your orders. This then becomes a hands-off automated business in which you will make really good passive income.
#5 Create a Product To Sell
Creating your own digital products to sell on your blog is one of the best ways of making passive income. Most people are terrified at the thought of this but it’s not as hard as it may seem. With a bit of time and knowledge, anybody can do this. But as mentioned, you will need a niche blog to do this. This is why I say that blogging is one of the best passive income methods.
Things you can sell on your blog:
- Document templates
- Stock video and templates
- WordPress themes
The reason you can make so much money is because you can also build an entire funnel. So for example if you were doing a course on how to blog, you could sell the front end of the course followed by multiple different upsells. Some funnels include 3 or 4 different upsells. The last one could be one-on-one coaching which some people sell for a few hundred dollars. The earning potentials are just incredible.
#6 Affiliate marketing
Affiliate Marketing is a great way to make money online. Some people reading this post will not know what Affiliate Marketing is, so here’s a quick description. Affiliate Marketing is basically promoting other people’s products, and you receive a certain percentage on each sale that you make.
There are methods and ways to make money with Affiliate Marketing without a blog, but it’s not ideal. If you want to make some serious life changing money, then you need to be setting up a blog, and then finding some great affiliate programs within your chosen niche.
For more information an Affiliate marketing, check out this post I wrote called
“Affiliate Marketing Made Easy | The Ultimate Step-By-Step Guide” where you will get a more in-depth guide on everything you need to know.
#7 Create a membership community
A membership community is great because you will be receiving monthly recurring commissions. The way to go about this is by creating an area inside your blog which you will fill with exclusive content for members only. The more people you can get to sign up, the more money you will make.
#8 Print-on-demand products
Print-on-demand is another great method to make money online for newbies just starting out. It’s very similar to the drop-shipping model which I talked about previously in that you do not need to spend money upfront or keep any stock. You will place your design on to different products such as phone cases, cushions, t-shirts, framed prints, plus a ton more.
You will get charged a base fee for the product and you can choose whatever price you want to sell them for. You can set this up by connect your shop to the print-on-demand company you are going to be using. You can do this using either WooCommerce or Shopify.
There are also many different print-on-demand companies you can choose, but the one I work with is Printful. They are are great site and have some excellent products. When somebody makes a purchase on your site, a signal is sent to Printful and they automatically print and ship the order to your customer.
There are a lot of details and things you will need to know but I will cover a complete guide on print-on-demand in a future post.
Hope you enjoyed this post on how can you make money while you sleep. You should now have an idea of what you will need to do to set up one or even multiple streams of passive income online. Any questions just leave them below in the comments.
Just to remind you once more, don’t forget to check out my Resources & Tools page for everything I use in my online business on a daily basis.