9 Passive Income Ideas - How I Make $27k per Week

Mon, 07/10 07:32AM · 31mins

Hey, friends, welcome back to the channel. In this video, we're going to talk about nine different ways that you can make
passive income. And for each of those, I'm going to 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 the thing in the first place. For me and my business, these
nine different sources generate around $27,000 per week these days with varying degrees of passiveness. And obviously,
this has taken me like eight years to build up. So don't expect to be hit those sorts of numbers when you first get started.
But this is the video that I wish I would have had when I started my financial independence 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 no such thing as passive
income. There is no way to make money without doing anything at all. But when I say passive income, what I mean is that
it's 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 in 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 be making 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 very long time to get going. So if you see any ads before this video talking about how you can get
rich quick by whatever scheme, or if you see people in the comments pretending to be me saying, oh my God, here is how
you can get rich quick with crypto, WhatsApp this number? That is all a scam. It's not going to work. There is no way to get
rich quick. It is not a thing. So if you're looking for a 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
make money is to provide value. And the only way to make passive income, passive money is to provide value in a way that
is not directly tied to your time. So please, please, do not try and join a get rich quick scheme. 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 crypto scheme or a gambling scheme
or hey, here is how you kind of play poker online. None of these things ever work. People always end up losing money. The
only way to make money is by providing value. And so let's talk about the nine different ways. That you could provide value
if you wanted to. Just before we dive in, I want to tell you that I've just launched my brand 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'll tell you more about Skillshare later on, but I want to plug my own class because I think it's genuinely really
good and people really like it and it will help you get tips on how you can start side hustles 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, the way 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 give our money to a company in the form of buying their stocks, it makes sense that we would get some
kind of return for that investment. And we're starting with this because investing in stocks 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 0.1% interest,
they're not really doing very much for you. Whereas if you had those stays savings and put them in stocks, you could
potentially be earning passive income from the money that's otherwise just sitting there. Now, I've got a whole video called
The Ultimate Guide to Investing in Stocks and Shares for Beginners, which is going to be linked over there somewhere. So
that is a solid half an hour long introduction to stocks and exactly how they work. But the thing that I recommend for most
beginners as a non financial advisor and this is not financial advice purely for entertainment purposes only, or so people
say. Or at least the thing that I do is that basically all my money that's in stocks and shares is invested in index funds. Now,
an index fund is something like the S and P 500. And when you invest, let's say, $1,000 in the S and P 500, that basically
means that your $1,000 is distributed amongst the top 500 biggest companies in the US. So weighted by how big they are.
So like 2% of it would be in Apple, 2% in Facebook, 2% in Google, 2% in Microsoft, and then you probably won't have heard
of the 500th company on the list. But basically all the big U. S. Companies you've heard of, you end up investing in all of
them a little bit at a time. So if you want to get started with that, all you need to do is sign up to a stockbroker. If you're in
the US, you can use Webull. I think I've got a link in the description. If you're in the UK, you can use Free Trade or Vanguard,
basically whatever country you're in, just Google the phrase best stockbroker platform. Your country name and you'll find
something that works for you and then it's very easy to be able to invest in an index fund. So within our famous side Hustle
assessment matrix, we're going to give the difficulty of starting a one star rating one out of five. It's very, very easy to get
started with stocks. How hard is it to make $100 a month by investing in stocks and shares? Well, this kind of depends
because it depends on the performance of the stock market overall. So in the last twelve months from 2020 to 2021, the S
and 500 has actually increased by about 50%. That is a lot. It's like gone up by a solid 50% despite COVID and everything

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going on. So if in April 2020 you had invested $2,400 in the S and P 500, the fact that it's gone up by 50% means you would
have made $100 a month. But obviously this is not the way to look at it because things can go up and down and the stock
market has different leverage levels of performance depending on what time period you're looking at. But if we average out
the last 30 to 50 years, the S and P 500 has had a roughly ten point something percent return, which means every year on
average, over the long term it goes up by around 10%. This is not inflation adjusted for any economists among us. And so if
we do some back of the envelope calculations, if we want to earn $100 a month passively through stocks and shares, we
would need around about $12,000 invested in the S and P 500 to make that 10% one $200 a year, which is $100 a month.
But as I talk about in that video about stocks, over time we have compounding. And so if you put in $7,500 in the S and 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
very average figure of 10% a year, or if you invested $5,000 in the S and P 500, then ten years later you'd be 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 kind of just depends on how hard is it for you to make 5000, 7500 or
$12,000 in savings and put them into a the stock market index fund. And crucially, this is money that you shouldn't need to
touch in the next five to ten years at least. So basically how easy is it for you to make that sort of money? Obviously varies
massively depending on which country you're in and what your circumstances are and what your job is. But if you're in the
UK or the US, where the median kind of average salary is around about $50,000, something like that, then again, depending
on your circumstances, it's not that hard to get $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 going to give this roughly a three out of five star
rating for difficulty of getting $100 a month. Obviously, if you live in a country like India, where the average salary is $3,600
year, it's very, very difficult to make $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 going to give this a one
star out of five, because once you've got the money in, you just like set it and forget it. And it's not that hard to maintain.
There are other sources of passive income that require higher degrees of maintenance over time, but stocks and shares is a
very, very easy way to make passive income. And to use my personal example, these days, my store Oxen Shares Portfolio,
which I've been investing in since 2015, is now worth around about $350,000. And the vast majority of that is in the S and P
500 index fund. Now, I can't be bothered to work out the actual inflation adjusted returns for that, but again, if we assume a
very, very rough average of 10% a year, then that averages out to around $682 per week in purely passive income. All right,
idea number two for generating passive income is to start a YouTube channel. This is something I specialize in because I'm
here on YouTube and I actually teach a course called the Part Time YouTuber Academy linked in the video description,
where I teach people how to do this sort of thing. So let's use our Side Hustle Assessment Matrix and we'll talk about this.
How hard is it to start a YouTube channel? Well, I'm going to give this one out of five stars because it's actually very, very
easy to start a YouTube channel. You just go on Youtube.com, you click create a channel and you can upload videos by just
filming with your phone and uploading it. In reality, it's a lot harder to make good videos, and making good videos is how you
grow on YouTube. But getting started on YouTube is very, very straightforward. The real question is how hard is it to actually
make real money from YouTube? So, again, let's say we want to make $100 a month in passive income. What does that look
like? Well, firstly, to be eligible for monetization on YouTube, you need 1000 subscribers and 4000 hours of watch time. It
took me six months and 52 videos to get my 1st 1000 subscribers. And if we look at the averages, it actually takes on
average 90 something videos to get to a thousand subscribers. So that's quite hard. If you're thinking you're going to start a
YouTube channel and start making money from day one, that's basically not going to happen. It took me 52 videos six
months to get there. So if people message me be like, hey, I want to start a YouTube channel, I was like, look, you have to
be able to put in the effort and do this for a very long period of time, at least once a week, say for at least two years, before
you can expect anything in return. But let's say you've hit your thousand subscribers and your 4000 hours of watch time.
How hard is it to actually make $100 a month? Well, on average the kind of revenue per thousand views on YouTube is
around about $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 on YouTube to make $100 a month. Let's say you make one video per week.
And let's assume you're not getting any traffic on your older videos. That means every video you make needs to get around
about 12,500 views. And very roughly, the average YouTube channel can expect around about 20% of their subscribers to
equal the average view count for each video. So on YouTube, if you had 62,000 subscribers, very roughly, very averagely,
you can expect 20% of them. I e 12,500 views on each video. And assuming you have no evergreen content of the long
term, you would need around about 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 10,000 something subscribers. It was fairly
early on. But when it comes to assessing how hard is this to do, I'm going to give this a four out of five stars. It's actually very
hard to make compelling YouTube videos and it's very easy to get started, but it's hard to do well. It's totally worth it. It's a

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great skill set. It's really fun. You get to meet people across 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, actually getting that 1st 1000 subscribers is a lot harder than keeping it growing. Because once you've got a
thousand subscribers and once your channel is growing, it means you've landed on a formula that works. And so
maintaining it then becomes easier than starting from scratch. And so in our Side Hustle Assessment matrix, we're going to
give maintenance of a YouTube channel passive income stream to be around about two out of five stars. To use my
example, I made 70 videos before I started making any money from YouTube AdSense. And these days, the YouTube
channel makes around about $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 bulk of the amount of money that we generate from ads is
from older videos rather than videos that were uploaded this month. So with that caveat, $12,000 a month passive income
is around about $3,000 a week. Thanks to this YouTube channel and thanks to you guys for supporting it and all that stuff.
There are other ways of monetizing YouTube like brand deals and selling merch and this other sort of stuff, but it doesn't
really count as passive income through YouTube, which is why I'm not including this in this side Hustle Assessment matrix.
Idea number three for making passive income is to start a podcast. This is generally easier than starting a YouTube channel,
although growing a podcast is a lot harder than growing a YouTube channel because podcasts themselves don't really have
an algorithm that's helping them grow. In fact, a lot of podcasts grow by having a YouTube channel, which is kind of weird,
right? So how hard is it 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 can literally use your phone and you can pass your phone around between you and your friends, and you
can start a podcast. You use a website called Riverside FM that I've recently invested in 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 is not 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 need a sponsorship or a
brand deal to make any money through your podcast, generally speaking. And apparently you can expect to make around
$18 for a 32nd ad in a podcast and $25 per thousand views, or 1000 listens for a 62nd ad. So if you want to make $100 a
month, and assuming you have a stream of sponsorships who are giving you that level of sponsorship deal based on your
download numbers, you would need around. 1000 downloads per episode if you have a weekly podcast. So you would have
4000 downloads a month. And if you're putting a 62nd ad in there for $25 per thousand views, that would make you around
about $100 a month by having 1000 downloads per episode and four episodes per month. This begs the question, how hard
is it to get 1000 downloads per month? Well, it's a lot harder to get 1000 podcast downloads per month than it is to get 1000
YouTube views per month because again, YouTube has so much distribution built in. It's different to podcasts. Also, loads
more people are on YouTube than on podcasts. But if we look at the stats, then it's the top 20% of podcasts in the world that
get on average more than 1000 downloads per episode. To use a friend of mine as an example, my housemate Sheen,
started her own podcast around five months ago. There will be a link to that in the description if you want to check it out.
And on average, her podcast gets round about 400 to 500 downloads per episode. This is not bad at all, especially
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 my own podcast, for example. And because she's just launched season two of her podcast and has
just started posting videos about it on YouTube, that will really help the podcast grow. And I'm pretty sure that in the next
six months she'll be getting to a point where she can quite easily make $100 a month from her podcast. So going back to
our side, hustle assessment matrix, starting a podcast, one out of five stars, making $100 a month, I'm going to give that a
three out of five stars because it's hard. Hard, but not as hard as maybe monetizing on YouTube where you have this
minimum threshold. And finally, maintenance. Well, it's not really passive income because you do have to keep on making
podcast episodes because the brand deals are associated with that. But again, once you've stumbled on a formula that
works, once you know how to be a podcaster, it's easier to continue going once you've already gotten started, as is the case
with most things. And so in terms of maintenance of the podcast, I'm going to give that two stars to use me as an example.
So me and my brother have a podcast called Not Overthinking King link in the video description if you want to 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 four for generating passive income is to become an affiliate marketer. Affiliate marketing means that you are
selling other people's products, but you're getting a percentage of the sales from those products. Now, apparently 48% of
affiliate marketers globally earn $20,000 a year, which 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 started with affiliate marketing? Well, I'm going to
give this a two out of five stars. Basically, you can just sign up to an affiliate program like Amazon Associates. So Amazon
have their own affiliate program, which I think is probably the biggest in the world. And then once you have your little special
links, you can post those on your website or on Twitter or in social media or whatever. And if people buy the product through

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your link, or in fact buy any product on Amazon through your link, you'll get like some tiny percentage of the sales. So pretty
easy to get started with affiliate marketing. But how hard is it to make $100 a month? Well, this is actually kind of hard. So
let's say you had a product that was $50 that you were trying to sell and you were getting 5% commission on it. That would
be pretty good. Amazon doesn't offer nearly as much as 5%. It offers like two or 3%, something like that. And let's say your
average conversion rate I e. People visiting the thing versus people actually buying the product after visiting the thing. Let's
say that's 1%, which is pretty reasonable for a conversion rate. You would need 8000 visits to your website or whatever to
make $100 a month. It's actually quite hard to get 8000 visits per month to your website to a specific product page. And
generally doing well in 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 of organically getting traffic. Now, other than Amazon,
there 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 the sponsors segment later. But Skillshare have an interesting affiliate program where if you refer someone to
sign up to a free trial of Skillshare, you can get $7 in affiliate commission just for that thing. So if you wanted to make $100 a
month from affiliates, you would need 15 people every month to sign up for Skillshare with your affiliate link thing. How hard
is it to get 15 people a month to sign up with your affiliate link? Well, it's not that hard if you have an audience, and it's not
that hard if you have your own classes on Skillshare like I do. I have like nine of them. And so if I want to make money
through Skillshare affiliates, I can just tell people, hey guys, I can tell you that guys, I've just released my latest Skillshare
class, productivity for Creators how to Start a Successful Side Hustle. So there will be a link in the video description if you
want to check that out, like. Hopefully some of you will see that we'll click on that link in the description, and then that will
be me getting some affiliate income from Skillshare for this video. So, going back to our side Hustle assessment matrix, how
hard is it to make $100 a month? I'm going to give this a 3.5 star rating because, again, you need an audience. And as we
always talk about on this channel, the way you build an audience is by creating useful content, putting it for free on the
Internet once a week, and doing this for at least two years. If you just follow those three steps, I guarantee you'll have an
audience and you'll be able to make some kind of money through this passive income stuff. But that's quite hard to do. No
one sticks to it for at least two years. So we'll give that a 3.5 star rating. But the good news is, once you've created it and
once you've started making money from affiliates, it's actually quite easy to maintain. Because especially if you have
evergreen content, the sort that isn't relying on, like, current affairs or the latest news, the sort that people might search for
over a long period of time, this becomes like relatively reasonable passive income. Now, if we look at me and my business
these days from Skillshare, we make around about $11,000 per month in affiliate income, which approximates to around
$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 more from the US. And Canada. All right, method number five of making passive income is by selling digital products.
Now, these are products that you create once, like an ebook or a download or an app or something like that. You create it
once, and then you can sell it multiple times, because selling digital products doesn't usually have any cost associated with
it. One really good example is this guy called Traff, who I follow on Twitter who made an iOS 14 icon set and sold it for, like,
$30 a pop a few months ago and ended up making, I think, like $300,000 in the course of, like, a few weeks just because
loads of people 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 my YouTuber friend Olier, 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 he makes $700,000 on
average. Well, overall. Since 2014. That's pretty cool. So how hard is it to get started making digital products? I mean,
anyone can write an ebook. An ebook counts as a digital product. So I'm going to give this a two star rating, two out of five
stars. But obviously, again, money is an exchange of value. So the thing that you're selling, you have to be providing enough
value to compensate to make up for the price that you're selling it for. And that's often quite hard, especially if you don't
have an experience in this sort of field. And how hard is it to make $100 month? Well, it's very easy to create an ebook, but
it's a whole different ballgame trying to get people to actually buy your ebook or buy your icon set, or buy your app, or buy
your website themes. And because the market around this stuff is so competitive, you have to be genuinely, really good to
get people to buy your stuff. And the way you get people to pay you money for something is that you identify a problem that
they have, you solve that problem and then you charge money for it. And if you can do those three things, then it's you
know, I wouldn't say it's easy to 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 going to give this a three out of five
stars to make $100 a month from selling digital products. And finally, in terms of maintenance, we're going to give this a two
out of five stars. Because usually you do have to maintain your product a little bit, but it's often easier to do like it's much
easier to maintain a product than creating a product in the first place. Idea number six for passive income generation to
create an online course. Now, online course is sort of like a digital product, but generally online courses are in video format.
In fact, this whole video is so long, it could basically have been an entire online course. Maybe I'll do one about this very

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topic. And in terms of getting started, we're going to give the starting difficulty a two out of five stars, because it's not that
hard making an online course. But generally, you do need to know how to do video. So you actually could 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 course needs 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 to charge 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 on Skillshare since
September 2019 and I've actually just released 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 time without
quitting your job. If you want to check this out, then the first 1000 people people to click the link in the video description will
get 30% off the annual Skillshare premium membership. This is actually a really good deal. I pay for skillshare. I have been
paying it for it for years, even after I started teaching on it because it's genuinely a fantastic 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've
got exams to prepare for, those apparently are really good. They've got very high ratings. And if you've already had a free
trial of Skillshare, then you can still use that offer. That if you're one of the first 1000 people to hit the link in the video
description, you will get 30% off the premium membership and you can check out my class, which I have to say is pretty
good. Anyway, thank you Skillshare for sponsoring this video. But genuinely, Skillshare is a great place to teach stuff
because you can teach things on Skillshare without directly having to charge for them, which is why I love putting my
courses on Skillshare. It's kind of like having something on Netflix in that the end user does not have to pay directly for the
product. And the other nice thing about Skillshare is that it's sort of like YouTube in that anyone can upload a class to
Skillshare provided it meets certain quality requirements. And so it's a lot easier than 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 going to 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 on Skillshare, you need roundabout 1700 minutes of watch time, which is 28
hours of watch time. So if you have a 1 hour class on Skillshare, you need 28 students to take that class every month and
watch it with a premium membership. Roughly, very broadly speaking. And that will give you roundabout $100 a month, at
least. Those are based on my figures over the last like two years of being on Skillshare. Now, how hard is it to get 28 people
a month watching your class? Well, if your class is actually 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 28 people a month watching it because people already
know, like and trust you, hopefully, and so they'll watch your stuff and give you a shot because you've already built that
goodwill with them. But again, the nice thing about Skillshare as a platform is that they have like their own algorithm, so the
good stuff rises to the top. So if you genuinely have a 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 lot and people
recommend it and give it high ratings. It will rise to the top and it will start getting recommended to people who find it on
the skillshare homepage or who search 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, you just need one sale every month. So how hard is it to get one person a
month to buy your course? Well, again, if it's good, the world of online education is exploding so much every year more and
more money is being spent on online education, especially with the whole pandemic stuff. So if you have a valuable skill that
you can teach, I think courses are one of the best and easiest, one of the best ways of making passive income because it's
fun to create a course. You can teach stuff. You don't need that many technical skills like making website or anything like
that. Just shove it on Skillshare and then people can take your course and learn on the internet and it's just cool overall. And
the nice thing is that once you've made the course and once you're making $100 a month from it, maintaining that level is
actually quite easy. We're going to give that a 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 reasonable amount of traffic
to it and hopefully that traffic will grow over time. These days, the vast majority of my online courses, at least the very
passive ones, are hosted on Skillshare and it's kind of ridiculous. But these days they make around about $60,000 to $65,000
per month in purely passive income. Like, I literally do nothing for my Skillshare glasses once I've made them, other than
reply to comments and other than occasionally plug them in videos. And that's like $60,000 a month in passive income. That
means this is around about $15,000 per week. And this makes up the bulk 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 kind of paid
membership or community model. Now, again, this is generally a bad idea unless you have an existing audience, which we

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keep coming back to. Like, everything becomes easier when you have an existing audience by creating content that has
been valuable over a long period of time very consistently, that audience knows, likes and trusts you. And so when you say,
hey, guys, sign up to my patreon, then some people are likely to do that thing. The other way of doing a membership is by
creating a value proposition that is so compelling that people will be willing to pay for a community like service for this. If we
use Patreon as an example, my friend Hannah Whitten, who's a YouTuber, she's got round about 600,000 subscribers on
YouTube, and I think she has around 600 patrons, 626 last time I checked. Which means if we look at her Patreon stats,
which are public, she's making somewhere between 2005 thousand pounds or like 3000 and $7,000 per month in passive
income from this audience. But it's like 600 people out of an audience of 600,000. So one in a thousand of her subscribers
have signed up to her Patreon. So clearly, if those stats are true across the board, and they kind of are, if you look at Matt
Diavella's Patreon as well, you need a big audience to make a significant amount of money from Patreon. Again, this sort of
depends on how much you're charging for them and exactly what value you're providing. Another example of a paid
membership community is my friend Anne Lore, who runs a website called NestLabs, and they have a paid membership
community, which is $5 a month. And she started this when was it? In summer of 2019. She had zero audience at the time,
and she just wrote 100 blog posts over 100 working days and built up an audience such that in March 2020, when she
launched a membership, she had some paying members for it initially. And I think last month she's just passed $100,000 a
year in annual recurring revenue, which is pretty awesome from something that started less than two years ago. So how
easy is it to start a membership program? Well. It's actually very easy. We can give this a one star because it's very easy to
start one. You just make an account on some kind of membership platform like Patreon, but to make $100 a month, you
need to provide $100 a month worth of value. And that's actually quite hard to do. We're going to give that a four out of five
stars. But the nice thing is, again, once you've got that formula, once you're making $100 a month, it's actually a lot easier
to maintain it, because the way the economics of membership communities work is provided you keep showing up and
providing value. In some city, people have already signed up for the thing, so it's not too hard to maintain that level of
support that you're offering them for this business. We have a membership community for our part time YouTuber Academy
for the alumni, which is called the part time YouTuber 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 of work. But $2,800 a week is pretty good for
a membership community. All right, nearly there. So, idea number eight for generating passive income is creating a business
that sells goods or services and then automating or delegating aspects of that business so that the income that you
generate from it is reasonably passive. This is the stuff that Tim Ferriss talks a lot about in the four hour work week, where
there are a lot of businesses that you could make, where you're selling a good or selling a service, and then you can
delegate outsource automate in intelligent ways to make the income passive. So, again, using my friend Olier as an
example, on his YouTube channel, he talks about his $1 million shopify store. He designs, manufactures and sells these
really cool vegan leather kind of desk accessories and bags and mousepads and that kind of stuff. And this was loads of
work in setting up, but now he's got a team of three other people that manage the business, and so he spends
proportionately less of his time running that business. And so it's sort of passive income for him, even though these days he
still does spend around 10 hours a week maintaining things equally if you're going down the service route. I've got a friend
who runs Instagram and Facebook Ads marketing agency, where he has clients who pay him, I think, a few hundred dollars
per month to manage their Facebook and Instagram ads. And for him, it's like a small 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 has to do a very small amount of actual work to keep it
ticking along. So these are different ways of generating passive income from a kind of goods or service based business, but
it's quite hard to get started with this stuff. To get started, we're going to give this a four out of 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
going to give it a four out of five star rating for making $100 a month in revenue because again, you have to be able to
provide value. And providing value is hard. Like, it's not as easy as making an account on a stocks platform, 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, maintenance is a little bit easier. So we're going to give that a three out of five star rating. Finally, idea
number nine for generating passive income is to build an app or a website or some kind of software product that you can
offer either as a one off or more likely these days, as a subscription service. And there's a whole category of this called SaaS
software as a service. Now, if you look at the website indiehackers.com, there are like literally hundreds 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 recently interviewed on an episode of the Indie
Hackers podcast, which is really cool because I've been listening to it for years and following the website for years. And I was

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interviewed around the concept of starting an online course like the part time YouTuber Academy. Now, I've had a bit of
personal experience with this. So when I was at university, I made a website called BMAT Ninja and UK cat Ninja. So software
as a service. It was a question bank for medical applicants applying to medical school to help them do well in the admissions
tests. And this was something that 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 it's pretty good money, but it
was a lot of work to set these things up. And so in terms of starting out, I'm going to give this a five out of five star rating
because to make an app. It's actually quite hard. You have to know how to code. Them for the most part, you have to be able
to offer something compelling and you have to actually build it, which takes a lot of work and is very hard, but it's a lot of
fun. And then once you've made it, I'm going to give $100 a month difficulty a four star rating. Because again, it's easy.
Well, easy enough, you can make an app, but then getting people to pay for the app is an entirely different cuddle of fish. So
we're going to give that four stars. But the nice thing is, like with everything, maintenance is a little bit easier. So we're
going to give that a three star rating. If you like this video and you want to get started with your own entrepreneur, passive
income eternating journey on the Internet, check out this short playlist over here, which is some of my favorite videos that
I've made around tips for entrepreneurs, how I got started creating my 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 the next video. Bye bye.

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