How To Make Passive Income (2021)

welcome back to whiteboard finance my name is Marco and I'm here to help you master your money and build your wealth today we're talking about seven ways to earn passive income in 2019 and the reason I decided to create this video is because I've gotten so many comments from people in my comment section about how hey you know your videos are only for people that make a hundred thousand dollars a year the average people can't make this my income is too low it doesn't apply to your videos so the reason I'm bringing this up is because I do understand when I reply to those people and say hey you know I have a video talking about how you can earn extra income on the side they always inevitably reply you know I'm already working 55 60 70 hours a week and I can sympathize with that I understand that a lot of people are already maxed out to their working capacity with time so I thought to myself what would be a better video than to create a video talking about passive income to earn money literally while you sleep okay so full disclosure I am NOT a fan of the phrase passive income the reason for that is because it's been bludgeoned to death by all these internet marketers and all these gurus that sell these pipe dreams to naive people talking about oh you can sip mai tais on the beach with the little umbrella and the drink and you know you'll just have thousands of dollars a day rolling in as you do nothing so that's absolutely not the case passive income is not passive at first you have to work for it so these seven ways and I implore you to please watch the entire video because some of these have to do with digital products some of these have to do with tangible products and there's I know there's a couple different types of personalities out there where they think oh I can never do the digital thing but I can definitely do something like real estate for example so check out these seven ways number one is obviously common sense because you're watching me on it right now and that's YouTube so what is YouTube YouTube is the world's second biggest search engine the first being Google oh and guess what Google owns YouTube so you're dealing with the two biggest search engines in the world when you decide to start a YouTube channel okay so the way YouTube works is that there's a revenue split so you're paid through ads so the ads that play in the beginning middle and end of this excuse me this video is split with Google and the Creator okay so I get half Google gets half or it's roughly a 55/45 split okay so think about it YouTube and Google have the platform I'm someone providing eyeballs to that platform eyeballs to the advertisers it's no different than when a radio station sells advertising space to their listeners so we get compensated through ads and the reason why I want to talk about YouTube is because in 2019 if you have an internet connection you can make money there's no there's no excuse as you guys you're only holding yourself back in real estate we had this phrase that says there is a butt for every seat well we set it a little bit different but I don't want to get this video demonetized with profanity but there's a butt for every see so if you know something about anything whether it's gardening I always use the example of paragliding you know left-handed puppetry if you will there's definitely a viewer for those videos trust me there's seven billion people on this planet and most of those people at this point have an internet connection and they are using YouTube on a daily basis so whatever you're good at whatever you're knowledgeable about I implore you to start a YouTube channel about it so the pros with the YouTube channel is that it's kind of like a little oil well so a part in my terrible art here but picture there's being like one of those oil wells that have the little hammer thing and it's digging for oil and it's shooting up through the ground it's the big Texas boom and that looks nothing like an oil well but just use your imagination here so the beauty of YouTube is that you create a video once and you don't trade your time for money anymore like you would with a nine-to-five job I have videos that are a year and a half old that are still making me money to this day granted it's not life-changing money but it's definitely still money coming in for doing literally nothing it's doing the work once and reaping the benefits and on some of the cons of YouTube are that it takes time to build up an audience and to build up a viewership of people that actually like know and trust you that way to keep coming back to your videos so that's what this is all about you guys so staying in the vein of the digital space if you will number two is something that works if you're a very good marketer or if you're someone who has an audience already in place so this may not apply to a lot of you people but membership websites okay so let's take someone who is a famous Baker or a chef and they have the best recipes in the world and they've built up an audience whether it's on YouTube or on their blog or whatever membership websites are beautiful because the pros of them are that someone is paying you monthly recurring revenue to get access to your content okay so say you're the best chef in the world and your recipes are so good that you know someone's gonna pay five bucks a month ten bucks a month to get access to that to those recipes now that may not sound like a lot but if you have a big audience imagine a thousand people paying you $5.00 a month you've now just created a revenue stream of $5,000 a month and you're only doing the work once okay so you create the recipe once you inform your group they come back however membership sites are kind of a double-edged sword because you have to keep creating new content that's fresh to keep your members in the group if you're in the group and the person's not updating the membership site you're most likely going to cancel your membership so that's one of the cons of the membership so this model is powerful if you can get a lot of eyeballs and a lot of traction to your membership site the third one is in a similar vein and that's creating a digital product okay so what is a digital product a digital product can be something that is very low overhead meaning that you're not taking up materials and time and all these different things to put together little widgets every time like you would if you're selling shoes for example or something that you eight a digital product is beautiful because you create it once okay so this could be an e-book if you want to stay with the gardening or the cooking example now this famous chef that has the membership site they create a cookbook they create the cookbook once but they sell it over time over and over and over again and if it's on an online platform it can be bought 24/7 365 so they truly can be on that beach sipping the mai tai they check their phone Wow look at that John Smith bought their cookbook for 10 bucks for example so a digital product can be anything from an e-book it could be anything that you create say for example my home affordability spreadsheet I gave that out for free just because I want to build credibility and value with my audience I could have easily charged five ten twenty dollars for that spreadsheet that took me about an hour to create if not a little bit less and I could have easily made like I said five ten twenty bucks every time I sold that but I chose to give it away for free the pros of this or that is that it's very little overhead there's no materials really it's all digital and the cons are essentially that it's a lot of upfront work to create the book to create the cookbook to create the spreadsheet but once you do it once the money keeps coming in okay so let's talk about number four here number four is going to be similar in that we're going to create an online course so the online course unlike the membership group is it's a course it's the same thing as creating the digital product you take the time upfront to create at once and that way just keeps selling itself over time so what I may consider doing in the future and I've had a lot of good feedback about this is creating a investing course so how to invest in stocks and things like that I may make a one-time course charge a fee for it and if you have enough audience members or if you know how to market really well you make the thing once and it brings you in money passively over time okay so here's the fifth and final digital way of making money and it doesn't necessarily have to be digit but that's primarily what the space is and that's affiliate marketing okay affiliate marketing so a lot of you have probably heard this and this goes down the slippery slope of these online gurus selling the passive income dreams right however again this all goes back to you know if you have an audience or if you know how to market properly with Google AdWords you can easily make money selling other people's products okay so picture and affiliate all an affiliate really is is a commissioned salesperson so sometimes I make money off affiliate links in my description below so whenever I recommend you guys a book that I truly believe has helped me whenever you click that Amazon link that plants basically a tracker like a cookie it's not it's not harmful there's nothing bad about it and it's no additional cost to you but Amazon knows when I refer you to Amazon and you make a purchase I get a small commission of whatever that purchase is so if you want to support the channel use the links in my descriptions below I do get compensated for those it's not life-changing money and it doesn't affect the cost the product to you however this can really build over time so say for example audible is one of the things that I recommend because you get two free audio books for signing up and I get a commission of I believe five or ten dollars every time someone signs up so it's a win-win situation whenever I recommend a book like the richest man in Babylon or Dave Ramsey's Total Money Makeover if you sign up for audible you get those books for free and I get a commission so affiliate marketing it can be it can work for pretty much anything any site that has an affiliate program there's a plethora of ways that affiliates get paid and this can be extremely powerful my good friend Ryan Scribner he's got a great financial education YouTube channel he is absolutely crushing it with affiliate marketing at this point okay so now for these people that are like okay you know I've watched all these digital methods of making money let's do something that you know is a little bit more realistic for me I'm not going to create a YouTube channel I'm not going to create a course this is one of the best ways to build wealth and get rich and that's dividend investing okay so I'll just call it dividend stocks so dividend investing is ultimately owning a stock that pays a dividend obviously you know it sounds like a no-brainer so how does this really work so say for example I'm just gonna use this for easy numbers I know not everyone has $10,000 laying around if you have $10,000 and you buy X amount of shares of a company that are going for a thousand dollars let's just say you bought a hundred shares okay you own a hundred shares of this company and this company pays a four percent dividend on these shares an annual dividend that means you're getting basically four hundred dollars per year by doing nothing because this company every quarter they payout essentially one percent okay one percent times one hundred it's a dollar four hundred times 100 shares excuse me four times 100 shares is four hundred dollars a year so I know I went over that kind of quick but the beauty of this and I will go into an in depth video of dividend reinvesting and all that stuff this is just very quick to show you how this is passive income these hundred shares not only can go up and down in value with the stock price but they're always throwing off 400 dollars per year companies can increase their dividend they can lower the dividend but let's just say it's flat for this example the beauty of this is that without touching anything or investing any more money than you already have every year if this stock price stays the same at $100 per share as we've determined you can buy four more shares per year through a dividend reinvestment program that's called a drip program meaning that this 400 bucks is used to buy four more shares at a hundred bucks so now you don't own a hundred shares you own a hundred and four shares throwing off four hundred and sixteen dollars a year then you take that four sixteen and you buy another four more shares so you have 108 for example and that's obviously assuming if this stock price stays at 100 bucks sher so you can see over time especially if you add money as well on top of that $10,000 dividend stocks are a great way to earn passive income and a lot of investors they base their entire retirement portfolio off of dividend stocks and a lot of people put those in a Roth IRA where the the share value actually increases tax-free over time then excuse me over time so you can see how diffident investing is super powerful and now finally the seventh way that you can earn passive income is obviously through one of the most powerful wealth building tools ever created and that's real estate so there's many ways that you can invest in real estate you can have rental properties okay these can be single-family homes you can invest in a syndication so this is where a bunch of people are pulling their money together to invest in a really big apartment building let's call it 300 units 300 apartments there's there's multifamily there's commercial there's industrial there's retail there's restaurants there's mixed-use there's a million different types of real estate that you can invest in and all of these have different risk profiles and also different returns especially if you're talking about Class A Class B Class C and obviously location dependent so real estate everyone is attracted to real estate especially single-family homes because that's what they know that's what they're used to some a lot of people have lived in a single-family home at one point in their life or they lived in an apartment so they know what that's like you know your typical investor will gravitate towards a rental property so the pros of real estate is that if you know how to systematize the business and you know how to screen for good tenants this really could become a nice passive mailbox money passive income stream however real estate the other the con to that is that it's not passive okay unless you have management in place or unless you have systems in place or if you have economies of scale it's very hard to manage you know real estate by yourself okay to turn it into a true business so a lot of people they're attracted to the allure of rental properties although they may not know the headaches that come with it however another truly passive model is real estate syndications and this is what I'm considering investing in in the future so these syndicators these are people that pull together a bunch of money and they put down the down payment on a much bigger much better much easier managed property like a 300 unit apartment complex Class B in Austin Texas for example they're looking for markets that are booming they're looking for apartments that are recession resistant and all you do is you invest twenty five fifty hundred thousand dollars whatever I know that's a lot of money I'm not saying it's not I'm just saying that that is a truly passive way to get mailbox money every month or every quarter and not only that at the end of five to seven years is typically when the investment pans out you get your money back that you originally invested plus you know eight ten twelve percent obviously you can lose your money as well but this syndication model and being a limited partner in commercial real estate is by far one of the easiest ways to collect quote unquote mailbox money so those are the seven different ways of earning passive income in 2019 this was a mouthful and it was not easy to create this video because I kind of just went off the top of my head throughout the whole thing I hope I provided value and I hope I explained these clearly and I hope you stayed till the end if you did that truly means a lot to me it would mean even more if you share this video with one friend thank you so much everybody we're at ninety-eight thousand subscribers at the time of this recording hopefully my next video with you will be at six figures and i truly appreciate every single one of you thank you so much and have a prosperous day [Music]

Channel: Marko - WhiteBoard Finance

Views: 597,387

Keywords: 7 ways to make passive income, how to make passive income, how to earn passive income, passive income, passive income for beginners, best way to make passive income, passive income ideas, make money online, how to make passive income 2021, passive income 2021, side hustles for extra money, best passive income ideas

Id: o1WWhRtJ4hI

Length: 17min 35sec (1055 seconds)

Published: Wed Jun 12 2019