The Smart Passive Income Guide (2015)
Chapter 5: Building a Passive Income Business
If you have determined that doing a passive income is a good idea for your needs, then it is time to get started. You have to be in the right frame of mind and know what is going on in order to build up your own business and make the passive income that you desire. This chapter explains how to build a passive income and some of the things that you should consider when getting started.
Knowing Market Demands
The first thing you will need to do is know the market demand in your area of interest. This is important because you need to be able to tell what a good idea is and if people will actually purchase your product. It probably is not a good idea to write another diet book, unless you have some extraordinary information or a new diet plan, because there are just so many diet books already out there.
Let’s start with the basics. A market demand is the total purchase amount of a product within the specified demographic. You can split up the demographic according to things like gender or age. Being able to assess the market demand for your given niche is important because it is going to help you determine if it is a good idea and if you are going to be able to grow in the industry. If you fail at putting together this important piece of the puzzle, it may mean that you are going into a market where you will not make any money and that you have more of a given product than can be sold. Without any profit, you will find that you will have to go back to your regular job because you are not able to survive on no or a loss of income. As you can see, getting to know market demands is critical if you want to actually be successful in your new career.
The way most people will evaluate the market demand is to implement an analysis of market demand. In this process, you will try to identify the consumers who are going to be attracted enough to purchase your particular product. This could take some time, depending on the product you are using, but it is actually going to help you out a lot. As a part of this analysis, the research will help you to figure out how large the market will be and if the idea is actually worth your time so you can determine if you will be able to start the new business.
This process is not something you will be able to do just once and be set. Market demand can often change. For example, think about this: if someone has already purchased your product, how likely is it that they will be willing to purchase it again? You need to constantly watch the market demand of your product. This will allow you to see when the trend is going down and when you might need to try something new or go a different way. For example, if you are in the line of selling lawnmowers, you might find that a special line of lawnmower blades can make a difference in the number of sales you are getting.
Not only will this process help you to figure out if your idea is any good, but it can also help you to predict trends. This allows you to beat out the competition and make even more money. This can also save you a lot of money because you can cut back on things if you think they are going to lose popularity and start switching over to something else in order to stay ahead of the curve.
Choose One Business and Stick With It
When you are in the business of passive income, it is important that you pick a business you like and stick with it, even if it starts to get difficult. There are a lot of people who feel they should be able to jump between as many endeavors as they want. While this is something you can do, it is not the best idea if you want to maximize the amount of money you will earn from this endeavor.
If you are not able to stick with just one kind of business, you will find that you are just stretching yourself too thin. You will have too much to get done and too many people trying to get your attention and it will become difficult to do it all. When you are spread out too thinly, it can become hard to do anything properly and all of the ventures might end up failing. To have the best results with a passive income, you need to just pick one kind of business and then stick with it. It is better to do one business properly than fail at several, after all.
Popular Passive Income Markets
There are many different ways you will be able to make a passive income. Each of them is going to call on different strengths and you may find that some are better suited for what you are able to do compared to the others. Here are some of the popular passive income streams that you can try out to make money.
Kindle publishing offers a unique way to make money, especially if you are looking to become a writer. Anyone is able to publish with this company, as long as the book is formatted the right way. You can also write as many books as you like and publish them on this site. But just because you are writing a lot of books does not necessarily mean you will be making a lot of money. There are many other competitors out there trying to make money with this method as well. The trick is not necessarily to make a ton of books, but to find a few niches that do not have a lot of competition and go after them as much as you can. This involves writing quality content before the rest of the competition does and marketing the product better than others. Kindle publishing gives you the tricks that you need in order to get started; you just need to learn how to use it in the proper way and get ahead of the competition.
Making YouTube Videos
Another way you can make some money is with YouTube videos. These can be a lot of fun if you have a bright and bubbly personality and like to do things with video. YouTube allows anyone with a Gmail account to use their services. If you sign up with YouTube, you can make some money off the videos you are posting. People will often set up their own channels and use these as a basis for their moneymaking.
When you are making your YouTube videos, you need to be at the top of your game. You are not going to get many viewers, or much money, if you just go through the motions and put something together in a few minutes. Even on YouTube people are expecting some effort to be put into the videos they are watching, and if it feels cheap and lacking in quality, people will choose to watch something else. Take the time to think about good content you can put into the video that people will find valuable, find a good camera that can produce high-quality video, try a few different angles, and use the best keywords in order to find the viewers who would get the most value out of your video. If you are able to make a good video, and then turn it into a good series, you will find that it is a lot easier to make some money with this method.
Another thing you can do in order to make some money through passive income is blogging. Blogging has gained a lot in popularity in the past decade, but it is still possible to make a good income from it if you work hard and go about it in a smart way. The best way to make some money from this is to find a niche others have not explored all that much. For example, there are thousands of blogs about parenting out there, but if you are able to find a new angle on this that others have not explored, such as gluten-free parenting or something like that, you may be able to gain an interested following looking for this kind of information.
For the most part, you are not going to be making that much money in the beginning with your blog. This might be something you should do on the side of your regular job at first because it can take some time for the money to begin to roll in. You have to write articles that are of interest to the reader and then you need to advertise yourself in order to let others know you are there. Even when you have done that, you will need to keep the content interesting; you will not make money if you write ten articles and then never write anything again. Your audience is will not any reason to stop and read again, so you will not get any fans or make any money from this.
Over time, if you do this right, you will start to build up a regular readership of people who will keep coming back every week or so in order to see what new posts you have. The type of people who come can vary between those who check back each day, those who know when you upload new content and check at that time, and those who will check up whenever they need some of the advice you give. You will need to get a strong readership before you are able to make some good money from this endeavor.
Once you have the readership, you will find that the rest is much easier. You will be able to go to various companies and advertisers and show them the numbers you have. The higher the numbers you have, the more likely they are going to be willing to pay you in order to advertise for them. This could include things such as billboards on the webpage or even getting you to write some articles about their products for the consumer. Blogging can turn into a pretty good income, but you have to keep your blog interesting and have decent writing skills.
Finally, another way you can make some money with passive income is with affiliate marketing. For this method, you will be helping other companies sell the products and services they have. You will be able to pick which products you would like to sell; there are many opportunities available, even with big companies. The company will give you a link that you will then need to disperse in various ways so others will see it. You can put it on your blog, on social media, on other websites and so on. When a consumer clicks on your particular link and purchases the product, you will make some of the money from that purchase.
This idea takes a lot of time and commitment because you will have to post the link on a lot of different pages and hope you stand out from the rest of the crowd. It might seem obvious that you should pick the most popular product to sell, but there are going to be hundreds of others selling that same product and you only make money if the consumer clicks on your particular link. Sometimes picking a product that is worth less money or that is less known is a better way to go.
So there you have it, these are just a few ways that you can make some good money with passive income and get away from the 9 to 5 work. In the next chapter, we will look into 5 of the best ways to earn passive income. Those 5 ways of making passive income are efficient and easy to get started. I highly recommend them. I will also provide you some pros and cons of which type of passive income streams, so you can easily get started no matter what your strengths are.