– Hey friends welcome back to the channel. In this video, we’re gonna talk about nine different ways thatyou can make passive income. And for each of those, I’m gonna talk about how hard it is to get started, how hard it is to make$100 a month from it and how hard it is to maintain once you’ve created thething in the first place. For me in my business,these nine different sources generate around $27,000 per week these days with varyingdegrees of passiveness. And obviously, this has taken me like eight years to build up. So, don’t expect to be hitting those sorts of numbers when you first get started. But this is the video thatI wish I would have had when I started my financialindependence journey many, many years ago, let’s go for it.All right, so, when I say passive income, I always air quote it because there is really nosuch thing as passive income. There is no way to make moneywithout doing anything at all. But when I say passive income, what I mean is that its money that is not directly tied to our time. So, let’s say you were to write a book. If you write a book, you publish a book that book is now on bookshelves. You’ve done the work, kind of once, to write and publish the book. But now anytime the book sells, you make money from royalties,that is passive income. You could literally bemaking money while you sleep because you’ve created this thing, which is out in the world, which is generating income for you.The other thing with passive income is that it always takes a verylong time to get going. So, if you see any ads before this video talking about how you can getrich quick by whatever scheme, or if you see people in the comments pretending to be me(screenshot pops) saying, “Oh my God, here’show you can get rich quick with crypto, WhatsApp this number.” That is all a scam, it’s not gonna work. There is no way to get rich quick. It is not a thing. So, if you’re looking fora get rich quick scheme, those things just don’t exist. So, you might as well not even try. And the way I think of this, is that ultimately money is just a medium for exchanging value. The only way to makemoney is to provide value. And the only way to makepassive income, passive money, is to provide value in a way that is not directly tied to your time.So please, please, please, do not try and join and get-rich-quickscheme, they don’t exist. I’ve had lots of messages over the years from people who have tried signing up to a get-rich-quick cryptoscheme or a gambling scheme or a, “Hey, here’s how youkind of play poker online.” None of these things ever work. People always end up losing money. The only way to make moneyis by providing value.And so, let’s talk about the nine different ways(icons pop) that you could providevalue if you wanted to. Just before we dive in, I wanna tell you that I’ve just launched mybrand new Skillshare class, about Productivity for Creators, how to start a successful side hustle. That’s linked in the video description. Skillshare is sponsoring this video. I will tell you moreabout Skillshare later on, but I wanna plug my own class because I think it’sgenuinely really good, and people really like itand it’ll help you get tips on how you can start sidehustles in your spare time. Anyway, let’s get into the video. All right, so, let’s kick things off with investing in stocks and shares. And in this context, theway that we provide value is by offering up our money. Providing money and investing in a service is in a way giving a form of value. And so, when we giveour money to a company in the form of buying their stocks, it makes sense that we wouldget some kind of return for that investment.And we’re starting with this because investing instocks is the easiest way to make any kind of passive income. If you have any sorts of savings and they’re sitting in a savings account, earning 0.01% interest, they’re not reallydoing very much for you. Whereas if you had thosestay savings and put them in stocks, you could potentiallybe earning passive income from the money that’sotherwise just sitting there. Now, I’ve got a whole video called “The Ultimate Guide to Investing in Stocks and Shares for Beginners”, which is gonna be linkedover there somewhere.So that is a solid halfhour-long introduction to stocks and exactly how they work. But the thing that I recommend for most beginners as anon-financial advisor, and this is not financial advice, purely for entertainment purposes only, or so people say, or atleast the thing that I do is that basically all my money that’s in stocks and sharesis invested in index funds. Now an index fund issomething like the S&P 500. And when you invest, let’ssay $1,000 in the S&P 500, that basically means thatyour $1,000 is distributed amongst the top 500 biggestcompanies in the US. So, weighted by how big they are. So like, 2% of it would be an Apple, 2% in Facebook, 2% inGoogle, 2% in Microsoft. And then you probably won’t have heard of the 500th company on the list, but basically, all the bigUS companies you’ve heard of you end up investing in all ofthem a little bit at a time. So, if you wanna get started with that, all you need to do issign up to a stockbroker.If you’re in the US you can use a Webull, I think I’ve got a linkin the description. If you’re in the UK, you canuse Freetrade or Vanguard. Basically, whatever country you’re in just Google the phrase,best stock broker platform, your country name and you’ll find somethingthat works for you. And then it’s very easy to be able to invest in an index fund. So, within our famous sidehustle assessment matrix, we’re gonna give thedifficulty of starting, a one-star rating, one out of five. It’s very, very easy toget started with stocks. How hard is it to make $100 a month by investing in stocks and shares? Well, this kind ofdepends, because it depends on the performance ofthe stock market overall. So, in the last 12months, from 2020 to 2021, the S&P 500, has actuallyincreased by about 50%. That is a lot, it’s like gone up by a solid 50% despite COVIDand everything going on. So if in April 2020, you had invested $2,400 in the S&P 500, the fact that it’s gone up by 50%, means you would’ve made $100 a month.But obviously, this isnot the way to look at it because things can go up and down, and the stock market has different levels of performance depending on what time period you’re looking at. But if we average outthe last 30 to 50 years, the S&P 500 has had a roughly 10 pointsomething percent return. Which means every year, onaverage, over the longterm, it goes up by around 10%. This is not inflation-adjustedfor any economists among us. And so if we do some back ofthe envelope calculations, if we wanna earn $100 a month, passively, through stocks and shares, we would need around about $12,000invested in the S&P 500, to make that 10%, $1,200 ayear, which is $100 a month. But as I talk about inthat video about stocks, overtime, we have compounding, and so, if you put in$7,500 in the S&P 500 and you left it there for five years, then five years later you would be making roughly $100 a month, if we go by this veryaverage figure of 10% a year.Or if you invested $5,000 in the S&P 500, then 10 years later you’dbe making $100 a month in purely passive income. Again, assuming the 10% average. So overall how hard is it really to make $100 a month in passive income from stocks and shares? Well, it kinda justdepends on how hard is it for you to make 5,000,7,500, or $12,000 in savings and put them into astock market index fund? And crucially this is moneythat you shouldn’t need to touch in the next five to 10 years, at least.So basically how easyis it for you to make that sort of money? Obviously varies massively depending on whichcountry you’re in (laughs) and what your circumstancesare and what your job is. But if you’re in the UK or the US where the median kind of average salary’s, roundabout $50,000, something like that, then again depending on your circumstances it’s not that hard toget $10,000 in savings.Obviously, if you’re supporting a family of 15 people on $50,000, it’s different. If you’re a single person,again, it’s different but I’m gonna give this roughly a three out of five-starrating for difficulty of getting $100 a month. Obviously, if you livein a country like India where the average salary is $3,600 a year, it’s very very difficult tomake $10,000 in savings overall. And finally, the third category in our side hustle assessment matrix is how hard is it to maintain this income once you’ve set it up in the first place? And we’re gonna give thisa one star out of five because once you’ve got themoney in you just like set it and forget it and it’snot that hard to maintain. There are other sources of passive income that require higher degreesof maintenance over time. But stocks and sharesis a very very easy way to make passive income andto use my personal example these days my stocks and shares portfolio, which I’ve been investing in since 2015 is now worth a roundabout of $350,000. And the vast majority of thatis in the S&P 500 index fund.Now, I can’t be bothered to work out the actualinflation-adjusted returns for that. But again, if we assumea very very rough average of 10% a year, then that averages out to around $682 per weekin purely passive income. All right, idea number twofor generating passive income is to start a YouTube channel. This is something I well specialize in because I’m here on YouTubeand I actually teach a course called the Part-Time YouTuber Academy, linked in the video description where I teach people howto do this sort of thing. So let’s use a sidehustle assessment matrix and we’ll talk about this. How hard is it to start a YouTube channel? Well, I’m gonna give thisone out of five stars because it’s actually very very easy to start a YouTube channel.You just go on youtube.com. You click to create a channeland you can upload videos by just filming with yourphone and uploading it. In reality, it’s a lotharder to make good videos, and making good videos ishow you grow on YouTube. But getting started on YouTube is very, very, very straightforward. The real question is howhard is it to actually make real money from YouTube? So again, let’s say wewanna make $100 a month in passive income. What does that look like? Well, firstly, to beeligible for monetization on YouTube, you needa thousand subscribers and 4,000 hours of watch time. It took me six months and 52 videos to get my first 1,000 subscribers. And if we look at the averages, it actually takes onaverage 90 something videos to get to 1,000 subscribers.So that’s quite hard if you’re thinking you’re gonna start a YouTube channel and start making money from day one your, you know, that’sbasically not going to happen. It took me 52 videos,six months to get there. So if people message me being like, “Hey, I wanna start a YouTube…” I was like, “Look, you have tobe able to put in the effort and do this for a very long period of time at least once a week.” I say for at least two years before you can expect anything in return. But let’s say you’ve hityour thousand subscribers and your 4,000 hours of watch time. How hard is it to actuallymake $100 a month? Well, on average, the kindof revenue per thousand views on YouTube is roundabout $2. So this varies massively,but let’s say on average about $2 per thousand views. Therefore if you want to make $100 a month you need 50,000 views onYouTube to make $100 a month. Let’s say you make one video per week and let’s assume you’renot getting any traffic on your older videos. That means every videoyou make needs to get around about 12,500 views.And very roughly theaverage YouTube channel can expect a roundabout20% of their subscribers to equal the average viewcount for each video. So on YouTube, if youhad 62,000 subscribers, very roughly, very average lead, you can expect 20% of them i.e.12,500 views on each video. And assuming you have noevergreen content of the longterm you would need to runabout 60,000 subscribers to be making $100 a month. In reality, you make $100 a month a lot before 60,000 subscribers. I think I was making $100 a month when I had like 10,000something subscribers, like it was fairly early on. But when it comes to assessinghow hard is this to do I’m gonna give this afour out of five stars.It’s actually very hard tomake compelling YouTube videos and it’s very easy to getstarted, but it’s hard to do well. It’s totally worth it,it’s a great skill set, it’s really fun. You get to meet peopleacross the internet. You get to learn how to talk to a camera and how to film and video edit. And it’s really great but it’s very hard to actually make money from YouTube. Finally, in terms of effort to maintain. Like actually getting thatfirst thousand subscribers is a lot harder than keeping it growing. ‘Cause once you’ve gota thousand subscribers and once your channel is growing it means you’ve landedon a formula that works. And so maintaining it then becomes easier then starting from scratch. And so in our sidehustle assessment matrix we’re gonna give maintenance of a YouTube channel passive income stream to be round about two out of five stars.To use my example, I made 70 videos before I started making anymoney from YouTube AdSense. And these days the YouTube channel makes a roundabout $12,000 a month in passive income from YouTube AdSense. Now, again, this is not entirely passive because I keep on uploading new videos, but actually the bulkof the amount of money that we generate fromads is from older videos rather than videos thatwere uploaded this month.So with that caveat, $12,000a month passive income is roundabout $3,000 a week thanks to this YouTube channel and thanks to you guys forsupporting it and all that stuff. There are other waysof monetizing YouTube, like brand deals and like selling merch and just all other sorts of stuff. But it doesn’t reallycount as passive income through YouTube, which iswhy I’m not including this in this side hustle assessment matrix. Idea number three formaking passive income is to start a podcast. This is generally easier thanstarting a YouTube channel. Although growing a podcast is a lot harder then growing a YouTube channel because podcasts themselvesdon’t really have an algorithm that’s helping them grow. In fact, a lot of podcasts growby having a YouTube channel, which is kind of weird.Right, so how hard isit to start a podcast? Well, again, one out of five stars, it’s very very easy to start a podcast. Go on anchor.fm and you canliterally use your phone and you could pass your phone around between you and your friendsand you can start a podcast. You can use a website called riverside.fm that I’ve recently investedin as an angel investor.Riverside makes it very easy to record remote podcast interviews. It’s very, very easy to start a podcast but how hard is it to make $100 a month in passive income from a podcast? Well, again, this isnot quite passive income because the way podcasters make money is by relying on brand deals. There is no YouTube AdSense for podcasts. And so you needsponsorship or a brand deal to make any money for yourpodcast, generally speaking. And apparently, you can expect to make around $18 for a 30-second ad in a podcast and $25 per thousand viewsor a thousand listens for a 60 second ad. So if you wanna make $100 a month and assuming you have astream of sponsorships who are giving you thatlevel of a sponsorship deal based on your download numbers, you would need around 1,000downloads per episode, if you have a weekly podcast. So you’d have 4,000 downloads a month. And if you’re puttinga 60-second ad in there for $25 per thousand views, that would make youround about $100 a month. By having a thousand downloads per episode and four episodes per month.This begs the question how hard is it to get a thousand downloads per month? Well, it’s a lot harder to get a thousand podcastdownloads per month than it is to get a thousandYouTube views per month. Because again, YouTube hasso much distribution built in it’s different to podcasts. Also loads more people areon YouTube than on podcasts. But if we look at thestats then it’s the top 20% of podcasts in the worldthat get on average more than a thousanddownloads per episode. To use a friend of mine as an example, my housemate Sheen started her own podcast around five months ago,there’ll be a link to that in the description, ifyou want to check it out, and on average, herpodcast gets roundabout 400 to 500 downloads per episode.This is not bad at all,specially considering she started five months ago and had zero audience when she started. So she didn’t have the unfair advantage that I did when starting myown podcast, for example. And because she’s just launchedseason two of her podcasts and has just started postingvideos about it on YouTube that will really help the podcast grow. And I’m pretty sure thatin the next six months she’ll be getting to a pointwhere she can quite easily make $100 a month from her podcast.So going back to our sidehustle assessment matrix. Starting a podcast one out of five stars, making $100 a month I’m gonna give that a three out of fivestars because it’s hard, but not as hard as maybemonetizing on YouTube where you have this minimum threshold. And finally maintenance. Well, it’s not really passive income because you do have to keepon making podcast episodes because the brand dealsare associated with that. But again, once you’ve stumbledon a formula that works, once you know how to bea podcaster it’s easier to continue going once you’vealready gotten started, as is the case with most things. And so in terms ofmaintenance of the podcast I’m gonna give that two stars. To use me as an example, so meand my brother have a podcast called Not Overthinking,link in the video description if you wanna check it out, but we make around about $625 per week from the podcast overall from brand deals and from our membership. All right, so idea number fourfor generating passive income is to become an affiliate marketer.Affiliate marketing means that you are sellingother people’s products but you’re getting apercentage of the sales from those products. Now, apparently 48% ofaffiliate marketers globally earn $20,000 a yearwhich is $1,660 a month. Which is actually not bad at all. Like people are doing very well with affiliate marketing overall. So how hard is it to get startedwith affiliate marketing? Well, I’m gonna give thisa two out of five stars. Basically, you can just signup to an affiliate program like Amazon Associates. So Amazon have their own affiliate program which I think is probablythe biggest in the world. And then once you haveyour little special links you can post those on your website or on Twitter or onsocial media or whatever. And if people buy theproduct through your link or in fact buy any producton Amazon through your link you’ll get like some tinypercentage of the sales. So pretty easy to get startedwith affiliate marketing, but how hard is it to make $100 a month? Well, this is actually kinda hard. So let’s say you hada product that was $50 that you were trying to sell and you were getting 5% commission on it.That’d be pretty good. Amazon doesn’t offer nearly as much as 5% it offers like twoor 3%, something like that. And let’s say your average conversion rate i.e. people visiting thething versus people actually buying the product aftervisiting the thing, let’s say that’s 1% whichis pretty reasonable for conversion rate. You would need 8,000visits to your website or whatever to make $100 a month. It’s actually quite hard toget 8,000 visits per month to your website, to aspecific product page. And generally doing wellin affiliate marketing requires lots of upfront effort in terms of either building an audience or building such domain authority in whatever space you’re in, that you’re sort oforganically getting traffic.Now, other than Amazonthere are a few other affiliate programs that I’m part of. One of them is Skillshare who are kindly sponsoring this video. I’ll tell you about thesponsor segment later but Skillshare has aninteresting affiliate program where if you refer someone to sign up to a free trial of Skillshare, you can get $7 in affiliatecommission just for that thing. So if you wanted to make$100 a month from affiliates, you would need 15 peopleevery month to sign up for Skillshare with youraffiliate link thing. How hard is it to get 15 people a month to sign up with your affiliate link? Well, it’s not that hardif you have an audience and it’s not that hard ifyou have your own classes on Skillshare, like I do,I have like nine of them.And so if I wanna make moneythrough Skillshare affiliates, I can just tell people, “Hey guys,” like I can tell you that,”Guys I’ve just released my latest Skillshare classProductivity for Creators, how to start a successful side hustle, so there’ll be a linkin the video description if you wanna check that out.” Like that would be hopefullysome of you will see that, will click on that linkin the description, and then that will be megetting some affiliate income from Skillshare for this video. So going back to our sidehustle assessment matrix how hard is it to make $100 a month? I’m gonna give this a 3.5-star rating, because again you need an audience. And as we always talkabout on this channel the way you build an audienceis by creating useful content, putting it for free onthe internet once a week and doing this for at least two years.If you just follow thosethree steps I guarantee you’ll have an audienceand you’ll be able to make some kind of money throughthis passive income stuff. But that’s quite hard todo no one sticks to it for at least two years. So we’ll give that a 3.5-star rating. But the good news isonce you’ve created it. And once you started makingmoney from affiliates it’s actually quite easy to maintain because especially if youhave evergreen content, the sort that isn’t relyingon, like current affairs or the latest news, the sought that people might search for overa long period of time, this becomes like relativelyreasonable passive income. Now, if we look at me and my business, these days from Skillsharewe make a roundabout $11,000 per month in affiliate income which approximates toaround $2,750 per week.And from Amazon on average, like it’s around about $450 a month from the Amazon UK store and a little bit morefrom the US and Canada. All right, method numberfive of making passive income is by selling digital products. Now these are products thatyou create once, like an ebook or a download or an appor something like that. So you create it onceand then you can sell it multiple times becauseselling digital products doesn’t usually have anycosts associated with it. One really good exampleis this guy called Traf, who I follow on Twitter,who made an iOS 14 icon set and sold it for like $30a pop, a few months ago and ended up making, I thinklike $300,000 in the course of like a few weeks, just because loads ofpeople around the world wanted to buy his icon pack. So he put the work into creating the pack and now he’s selling it for lots of money. Another example is myYouTuber friend Oliur, who has made, as he says$700,000 from selling his website Tumblr themes since 2014.So he made the website themes for Tumblr, he sells them and hemakes $700,000 on average. Well, overall, since2014, that’s pretty cool. So how hard is it to getstarted making digital products? I mean, anyone can write an ebook an ebook counts as a digital product. So I’m gonna give this a two-star rating, two out of five stars, but obviously like againmoney is an exchange of value. So the thing that you’reselling you have to be providing enough value to compensate, to make up for the pricethat you’re selling it for. And that’s often quite hard, especially if you don’thave any experience in this sort of field and how hard is it to make $100 a month? Well, you know, it’s veryeasy to create an ebook but it’s a whole differentballgame trying to get people to actually buy yourebook or buy your icon set or buy your app or buyyour website themes.And because the market aroundthis stuff is so competitive like you have to be genuinely really good to get people to buy your stuff. And the way you getpeople to pay you money for something is that youidentify a problem that they have, you solve that problem, andthen you charge money for it. And if you can do those threethings, then it’s, you know I wouldn’t say it’s easyto make $100 a month but it’s very doable to make $100 a month. You just genuinely have to have something that solves a pain point that other people are willing to pay for. So we’re gonna give thisa three out of five stars to make $100 a month fromselling digital products. And finally, in terms ofmaintenance, we’re gonna give this a two out of five stars, because usually, you do have to maintainyour product a little bit but it’s often easier to do like it’s much easierto maintain a product then creating a productin the first place. Idea number six forpassive income generation is to create an online course.Now online course’s sortof like a digital product but generally onlinecourses are in video format. In fact, this whole video is so long, it could basically have beenan entire online course. Maybe I’ll do one about this very topic. And in terms of getting started, we’re gonna give the starting difficulty a two out of five stars,’cause it’s not that hard to make an online course but generally, you do needto know how to do video. So, you know, you actuallycould film an online course on your iPhone or phone,whatever phone you’re using, if you’re one of those Android heathens. Stick your phone on the side, talk to the phone, teach something. So it’s not hard creating one, but in terms of making$100 a month, again, at that point, your courseneeds to actually be good. And the only reason people will pay for it is if the course is actually good. Now you can avoid having tocharge for your online courses by using a website like Skillshare, who are very kindly sponsoring this video. I have tons of classes on Skillshare. I think we’ve got nine on them in total.I’ve been teaching onSkillshare since September 2019 and I’ve actually justreleased my new online class called Productivity for Creators, how to start a successful side hustle. Where I teach you the ins and outs on how you can well,create your own side hustle in your spare timewithout quitting your job. If you wanna check this out then the first of thousandpeople to click the link in the video description will get 30% off the annual Skillsharepremium membership. This is actually a really good deal. I pay for Skillshare, I’ve been paying you for it for years even after I started teaching on it because it’s genuinely afantastic place to learn stuff. They’ve got thousands of classes on all sorts of other topics, but you should definitely check out mine, like the nine that I’ve got. There are three around productivity now, like the fundamentals of productivity, the sort of productivity equation, which is how I think of productivity and Productivity for Creators.I have two on how you can study for exams. If you’re in school, if you’vegot exams to prepare for those apparently are really good, they’ve got very high ratings. And if you’ve already hada free trial of Skillshare then you can still use that offer that if you’re one of thefirst of thousand people to hit the link in the video description, you will get 30% of the premium membership and you can check out my class which I have to say is pretty good. Anyway, thank you Skillsharefor sponsoring this video but genuinely Skillshare isa great place to teach stuff because you can teach things on Skillshare without directly havingto charge for them. Which is why I love puttingmy courses on Skillshare. It’s kinda like havingsomething on Netflix in that the end-user does not have to pay directly for the product. And the other nice thing aboutSkillshare is that it’s like, it’s sort of like YouTube in that anyone can upload a class to Skillshare, provided it meets certainquality requirements.And so it’s a lot easier then having to make your own website and create your own courses platform and all that kind of stuff. So, pretty easy to start. We’re gonna give this a two out of five but how hard is it to make $100 a month from teaching online courses? Now, this kind of depends. If you’re going down the Skillshare route then to make $100 a month in Skillshare you need roundabout 1,700minutes of watch time which is 28 hours of watch time. So if you have a onehour class on Skillshare you need 28 students totake that class every month and watch it with a premium membership roughly very broadly speaking. And that will give youroundabout $100 a month.At least those are based on my figures over the last like two yearsof being on Skillshare. Now, how hard is it toget 28 people a month watching your class? Well, if your class isactually pretty good, it shouldn’t be too hard to get 28 people a month watching it. If you have an existing audience it’s very easy to get 28people a month watching it because people already know,like, and trust you hopefully. And so they’ll watch yourstuff and give you a shot because you’ve already builtthat goodwill with them. But again, the nice thingabout Skillshare as a platform is that they have liketheir own algorithm. So the good stuff rises to the top. So if you genuinely have areally, really, really good class and you put it on Skillshare, then even if you don’t have an audience, there is still a high chance that if the class is actually good and people watch it a lotand people recommend it and give it high ratings,it will rise to the top.And it will start gettingrecommended to people who find it on the Skillshare homepage or who searched for it specifically. The other way of making$100 a month from a course is to just charge $100 for a course. And then if you do that, youjust need one sale every month. So how hard is it toget one person a month to buy your course? Well, again, if it’sgood, you know, the world of online education is explodingso much every year more and more money’s beingspent on online education especially with the whole pandemic stuff. So if you have a valuableskill that you can teach I think courses are oneof the best and easiest, or one of the best waysof making passive income because it’s fun to create acourse, you can teach stuff, you don’t need that many technical skills, like making a websiteor anything like that. Just shove it on Skillshare. And then people can take your course and learn on the internet. And like, you know,it’s just cool overall. And the nice thing is thatonce you’ve made the course, and once you’re making$100 a month from it, maintaining that levelis actually quite easy.We’re gonna give thata two out of five stars because generally, you don’t need to update the course that often. And you can do that once in a while and you just need to make sure you’re getting a reasonableamount of traffic to it. And hopefully, that trafficwill grow over time. These days, the vast majorityof my online courses, at least the very passiveones are hosted on Skillshare and it’s kind of ridiculous. But these days they make roundabout 60,000 to $65,000 per month inpurely passive income. Like I literally do nothingfor my Skillshare classes once I’ve made them otherthan a reply to comments and other than occasionallyplug them in videos. And that’s like $60,000 amonth in passive income. That means this is aroundabout of $15,000 per week. And this makes up thebulk of the $27,000 a week that this business currently generates in purely passive income. Idea number seven for passive income is by creating some call itsome kind of paid membership or community model. Now, again, this is generally a bad idea unless you have an existing audience, which we keep coming back to.Like everything becomes easier when you have an existingaudience by creating content that has been valuableover a long period of time, very consistently. That audience knows likes and trusts you and so when you say, “Heyguys, sign up to my Patreon”, then some people arelikely to do that thing. The other way of doing a membership is by creating a valueproposition that is so compelling that people would be willing to pay for a community-like service for this. If we use Patreon as an examplemy friend Hannah Witton, who’s a YouTuber, she’s got roundabout 600,000 subscribers on YouTube. And I think she has around 600 Patreons, 626 last time I checked,which means if we look at our Patreon stats, which are public, she’s making somewherebetween 2,000 and 5,000 pounds or like 3,000 and $7,000 per month in passive income from this audience. But it’s like 600 people outof an audience of 600,000. So one in a thousand of her subscribers have signed up to her Patreon. So clearly, you know, if those stats are true across the boardand they kind of are if you look at MattD’Avella Patreon on as well you need a big audience to make a significantamount of money for Patreon.Again, this sort of depends on how much you’re charging for them and exactly what value you’re providing. Another example of apaid membership community is my friend Anne-Laure whoruns a website called Ness Labs and they have a paid membership community which is $5 a month. And she started this when wasit, in the summer of 2019. She had zero audiences at the time and she just wrote a hundred blog posts over a hundred working daysand built up an audience such that in March 2020, whenshe launched a membership she had some payingmembers for it initially. And I think last month she’s just passed $100,000 a year inannual recurring revenue, which is pretty awesome from something that started less than two years ago. So how easy is it to starta membership program? Well, it’s actually very easy. We can give this a one-starbecause it’s very easy to start one, you just make an account on some kind of membershipplatform like Patreon. But to make $100 a month, you need to provide $100a month worth of value.And that’s actually quite hard to do. We’re gonna give that afour out of five stars but the nice thing is, again,once you’ve got that formula, once you’re making $100 a monthit’s actually a lot easier to maintain it becausethe way the economics of membership communities work, it’s provided you keep showing up and providing value in some capacity, you know, people have alreadysigned up for the thing. So it’s not too hard tomaintain that level of support that you’re offering them. For this business, we havea membership community for our Part-Timer YouTuberAcademy for the alumni, which is called the Part-TimerYouTuber Inner Circle And we make roughly $2,800 a week from this membership community. It’s not very passive. We run like three or four events per week along with like twice a day,coworking events on zoom and we have lots of stuff going on.So it takes a lot ofwork, but $2,800 a week it’s pretty good for amembership community. All right, nearly there. So idea number eight forgenerating passive income is creating a business thatsells goods or services and then automating or delegatingaspects of that business so that the income that you generate from it is reasonably passive. This is the stuff that Tim Ferris talks a lot about in”The 4-Hour Workweek”, where there are a lot of businesses that you could make whereyou’re selling a good or selling a service and then you can delegate,outsource, automate and intelligent ways tomake the income passive.So again, using my friendOliur as an example, on his YouTube channel, he talks about his $1 million Shopify store. He designs manufacturesand sells these really cool vegan leather kind ofdesk accessories and bags and mouse pads and that kind of stuff. And this was loads of work in setting up but now he’s got a teamof three other people that manage the business. And so he spends proportionally less of his time running that business. And so it’s sort ofpassive income for him. Even though these days,he still does spend around 10 hours a week, maintaining things. Equally, if you’re goingdown the service route, I’ve got a friend who runs an Instagram and Facebook ads marketing agency, where he has clients who pay him some, I think a few hundred dollars per month to manage their Facebookand Instagram ads.And for him, it’s like asmall amount of work initially to set up the Facebook and Instagram ads but then it’s sort of automated and he’s got a team around it. And he’s used using things like Zapier to automate aspects of that business, so that each month he hasto do a very small amount of actual work to keep it ticking along. So these are different waysof generating passive income from a kind of goods orservice-based business. But it’s quite hard to getstarted with this stuff. To get started we’re gonna give this a four to five-star rating because again, you need to create a business and it’s quite hard to make a business that genuinely provides value. Equally, we’re gonna give ita four out of five-star rating for making $100 a month in revenue. Because again, you have tobe able to provide value and providing value is hard. Like it’s not as easy as making an account on a stocks platform and just putting some money in.You actually have to give value to people which is kind of hard. But the nice thing is once you get started like with anything, maintenanceis a little bit easier. So we’re gonna give that athree out of five-star rating. Finally idea number nine forgenerating passive income is to build an app or a website or some kind of softwareproduct that you can offer either as a one-off ormore likely these days, as a subscription service. And there’s a wholecategory of this called SAS. software as a service. Now, if you look at thewebsite, indiehackers.com there are like literallyhundreds of examples of people who have built software businesses that are making passive income and they share their revenue numbers and they tell you how they got started and they give you their tips. In fact, I was recentlyinterviewed on an episode of the Indie Hackerspodcast, which is really cool ’cause I’ve been listening to it for years and it’s like followingthe website for years.And I was interviewed aroundthe concept of starting an online course like thePart-Timer YouTuber Academy. Now I’ve had a bit ofpersonal experience with this. So when I was atuniversity I made a website called BMAT Ninja and UCAT Ninja. So software as a serviceit was a question bank for medical applicantsapplying to medical school to help them do well inthe admissions tests. And this was somethingthat me and my brother coded completely from scratch. He and I both know how to code, we learned when we were young. And so we worked over the summer of 2015 to make these things happen. I think in year one, we made about $10,000 and in year five last year, it was around $25,000 from BMAT Ninja. So, you know, it’s pretty good money but it was a lot of workto set these things up.And so in terms of starting out I’m gonna give this a fiveout of five-star rating because to make an appit’s actually quite hard. You have to know how tocode for the most part you have to be able tooffer something compelling and you have to actually buildit which takes a lot of work and it’s very hard, but it’s a lot of fun. And then once you’ve made it I’m gonna give $100 a monthdifficulty a four-star rating. Because again, it’s easywell, easy enough. (laughs) You can make an app,but then getting people to pay for the app is an entirelydifferent kettle of fish. So we’re gonna give that four stars. But the nice thing islike with everything, maintenance is a little bit easier so we’re gonna give thata three-star rating. If you like this videoand you wanna get started with your own entrepreneurshippypassive incomey generating journey on the internet. Check out this short playlist over here which is some of my favorite videos that I’ve made aroundtips for entrepreneurs.How I got started creatingmy businesses from scratch, how I learned to code that sort of stuff. That’s all in the playlist over here. Thank you so much for watching and I’ll see you in thenext video, bye-bye..
