How I Make $36,000/year in Passive Income

in this video i'm going to break down exactly how much i make in passive income every month and hopefully inspire you to be able to do the same [Music] so first let's get on the same page with what passive income actually is passive income is revenue generated without you actively having to work for it now it requires upfront work and maybe an hour to a week to maintain but otherwise runs on autopilot whether you're sitting in an office laying in bed at night or maybe just sitting on a beach in the caribbean meaningful passive income sources always take a good amount of time and energy to get set up and running smoothly so if anyone ever tries to tell you differently they are probably trying to sell you something so passive income could be a rental property you own that you have a property manager handled the day to day of and maybe you just take the occasional phone call it could also be t-shirt designs that you've uploaded to redbubble and is completely hands-off or it could be dividends from stocks you bought after watching an andre dick video it is not money that you have to actively work to generate that would be the exact opposite of passive income okay we're on the same page now great second most passive income videos i've watched on the topic on youtube show a lot of revenue derived from that same youtube channel and that's fine youtube is a great source of passive income but it does take an enormous amount of time specific skill set and some luck to just make happen for you and that's just not attainable for most people so while i do earn most of my passive income from my other channel mango street i'm not gonna include any of that in this video the last thing i'll mention is my own personal goal with passive income is to take it to a hundred thousand dollars a year so that frees me up to spend my time how i'd like now let's just get into it back in 2015 i was buying and selling vacant land for profit the first parcel i bought was in los angeles county it was five acres but it was on the other side of the mountains really far away from la after doing some research on parcels in the area and negotiating with the sellers i purchased the lot for five thousand dollars after i got the deed in my hand i listed it on craigslist for sale and i offered seller financing a few days later i sold it to a guy who did want seller financing and the terms we agreed to was a 500 down payment and then he'd pay me 175 a month for the next eight years that ends up as a total purchase price of sixteen thousand eight hundred dollars leaving me with roughly eleven thousand dollars profit knowing what i know now i don't think i would have offered solar financing i would have just listed the property for maybe ten thousand dollars no seller financing because it did tie up a large amount of my capital in this long-term deal so while it was extremely profitable and i've been enjoying 175 dollars a month coming in without doing any work i probably would have changed the structure of that deal had i known what i know now literally the only thing i have to do with this passive income is twice a year i pay property taxes for it and then i just add it to the invoice of the buyer so i'm taking care of the property taxes up front to make sure they get paid but then he reimburses me for that now you may know that i'm also a photographer so the next source of passive income is stock photography and to be honest most of the stock photography income does come from my wife rachel but since we're married i'm gonna count it we both have accounts on the stock photography site stocksy and we often shoot each other or our dogs or when we're working with models we'll have them sign a model release allowing us to sell images of them on stock c and this has been a really great source of passive income over the years we actually made a whole video about this on mango street breaking everything down so if you want to take a look i'll put the link in the description the cheapest photo license you can get on stock see is 15 and we have a 50 50 split with oxy so on the low end we'd get 750 per photo but depending on the resolution or the license that the customer wants it could be several hundred dollars so it ends up being a pretty significant source of passive income for us they would just otherwise be sitting on a hard drive not doing anything collecting dust but by taking the time to keyword them and get them sorted and uploaded to stocksy we're able to generate hundreds of dollars a month if we had more free time we could do more dedicated shoots specifically to upload to stock c and really see a bump in passive income from that but we just haven't had the time really to do that lately so on average we make about 585 dollars a month from stocksie not bad at all since we're talking about licensing creative work for income let's talk about video since we're already filming videos often working with models often hiring videographers it only makes sense to monetize that footage in a way other than youtube art grid is a platform that we use to license stock footage but now we also contribute stock footage to it as well the way it works is a normal customer will sign up for an annual subscription ranging from 300 all the way up to 600 a year depending on the type of resolution that they want the way you get paid as a contributor is our grid sets aside a percentage of all their revenue from subscriptions and then they distribute it to all the contributing filmmakers based on how many downloads each person receives so if they have a hundred thousand dollars allotted for payouts for one year and there's ten thousand downloads across the entire platform that makes each download worth ten dollars so let's say our clips are downloaded 200 times that means we would get paid two thousand dollars the downside is they only pay out once a year at the end of the year so you can't really rely on it for monthly income and you also don't know how much you're going to get paid until they email you at the end of the year telling you it's an interesting business model and it's becoming more and more common as consumers are demanding unlimited downloads of everything now video takes a little longer for us to prepare and upload to the site so we don't do it as often as we should we only have 49 clips on a profile right now we uploaded those late last summer and they paid out at the end of november even still that averaged out to about 25 a month in income from this handful of clips that had been uploaded for just a few months it's still a great opportunity to take footage that's otherwise sitting on hard drives collecting dust and putting it to work generating revenue for you when it comes to passive income i earn this is by far my favorite avenue our list is the sister site to our grid but for music licensing we have been using it for years to get music for our youtube videos and i was always curious about how the artists were paid like art grid it's an annual subscription and it's 200 a month but once again you get unlimited downloads so i actually have a background in music i played in bands throughout my teenage years and i went to school for audio engineering and i worked in recording studios so last spring i decided to learn how to make music in a program called ableton live i immediately started putting some songs together and came up with eight tracks that i liked enough to submit to our list so may of last year i got my eight songs uploaded to artlist now at this point i knew how their payout structure worked but i had no idea actually how much i would make off those eight songs well december rolled around and i remember we landed at lax after a flight back home and i got an email from artlist notifying me that my royalty payment of twelve thousand eight hundred and eighty eight dollars was ready after playing in bands for years this was hands down the most money i've ever made from making music so needless to say i was really stoked not only is it super fulfilling and fun for me as a creative outlet now it's also generating me passive income so i spent the first four months of this year working on a variety of different songs and different genres and then uploaded all them to our list so right now i have dozens of songs available on our list and have more that i'm uploading as we speak i'm hoping to triple the amount that i made last year but we'll have to wait and see i can see the statistics for how many downloads i'm getting and i'm definitely outpacing last year so right now it's averaging out to about two thousand dollars a month but i'm hoping it'll only go up from there so all in all from these passive income sources i'm able to bring hundred and in 2785 dollars which amounts to over thirty three thousand dollars a year okay real quick i'm actually in middle of editing this video and i thought of two things first i completely left out one other source of passive income that i just completely forgot about and that is streaming revenue from my music so i actually have all my music uploaded to streaming services like spotify apple music etc and i get paid per stream it's like a fraction of a penny but it all adds up and i completely forgot about it because i haven't made any withdrawals from all that revenue that's been generated so i checked in on it and it turns out i'm averaging three hundred dollars a month in streaming revenue which is super awesome so that brings my total to three thousand eighty five dollars per month which is roughly thirty six thousand dollars a year the other thing i want to mention is when we go on vacation or are on a business trip for other things we'll bring along a camera and either take photos or video for the purpose of uploading to stock sites so that we can make use of our downtime so one example of this is we were on a trip to new york for the moment film festival we had a short film premiering there and we paid our friend will one morning to walk around with us and we just filmed him that's where a lot of our our great clips came from it's just we're on a trip for something completely different and now we have this other way to make money from that trip so just an idea that can hopefully inspire you and think outside the box on how you might be able to make some extra revenue when you're doing other things if you're looking to get started generating passive income here are some tips to get started first identify your hobbies what do you like to do for fun or what are you good at two identify how the leaders in this niche are actually making money are they selling a digital product are they selling a physical product are they doing advertisements identify an attainable avenue to start generating income in this niche three if you know it has the potential to be profitable don't be afraid to put in the time and effort needed to learn new skills and stand out from the crowd you can learn anything on the internet for free i do it all the time plus if you enjoy doing it passive income just becomes an added bonus for instance i would still love making music even if it didn't bring me any money lastly trying to earn revenue from something that you enjoy doing can suck the fun out of it so if you truly love doing something don't feel like it's a waste of time if it's not generating you income that doesn't have to be your end goal now if you're looking for more passive income ideas let me know in the comments and i can do a video about that thanks so much for watching make sure you're subscribed if you aren't already and hit that thumbs up button for me it'll really help me out and i will see in the next video bye you

Channel: Daniel Inskeep

Views: 385,263

Keywords: personal finance, make money online, personal finance management, best passive income ideas, stock photos, passive income ideas, personal finance tips, artgrid, make passive income, stock music, music licensing, artlist, passive income, making money online, how to make passive income, personal finance 101, daniel inskeep, passive income 2020

Id: M9UUOEPWrGI

Length: 9min 52sec (592 seconds)

Published: Mon Aug 17 2020