You’ve heard the term before “Passive Income” and usually it’s either some young tech-savvy person or an older well-off person talking about it. However, passive income isn’t anything to be intimidated about, in fact it’s something you should show curiosity towards as much as possible.
What is Passive Income?
To clear the air once and for all… what is passive income? Passive income is simply income that is generated while not physically working at that point in time. For example, if I sell products on Amazon.com, it might take a lot of work to get started; i.e. sourcing the product, testing samples, preparing the product boxes, brand logos, shipping the inventory to the fulfillment centers, etc. However, once all that initial work is done, those items that I laid the ground work for are now passively generating income for me because I’m no longer exchanging my time for profits.
That last statement “no longer exchanging time for profits” or, income, is the key! The one resource that puts everyone on a level playing field is time and there in lies the power of passive income. It frees an individual from the typical equation which is working a set time for a set amount of money.
When you put affiliate marketing in motion through a well refined system, you can take care of other matters while that system is generating income. So there you have it – passive income – put simply in layman’s terms.
How Can You Get Started with Passive Income?
Now that you know what passive income is, I’m almost positive that you’re interested in building yourself a stream of it, and getting started isn’t as difficult as you might think!
The first step you want to take in starting your passive income journey is deciding on which method or approach to take. As of today, March 27th, 2020, there are a wide variety of different options for creating passive income. In fact this date is particularly important to the argument of passive income, because many people in the United States (and all over the world for that matter) are off of work due to the Covid-19, or Corona virus. At a time with so much uncertainty, wouldn’t it be nice to have an extra stream of income coming in? HECK YES! and I’m sure you’ll agree.
Amazon Associates is probably the best program to start with for beginners! The reasons I really like the Amazon Associates affiliate program is because it takes very little investment to get started. Unlike some of the other methods that take capital for inventory and ads, you can get started in this program with just a little elbow grease. If you’ve got some free time on your hands this is the route you should take!
How it works: As an Amazon affiliate, you create some form of content that acts as a lead. This content is helpful and either reviews a product that customers are looking for information on, or broadly covers a topic and helps a perspective buyer find the “best of” that product segment.
Take for example: “the best blow dryers for thick hair“. In this write up you’d do research on this topic taking into consideration a variety of experiences, reviews, price points, availability and any other helpful factors.
Once someone who is interested in this subject finds your website, they will read your information and hopefully find it helpful. If someone actually buys something after reading your content and clicking through one of your affiliate links, you will earn an affiliate commission.
The commission amount can vary, but for the sake of this example any item in the “beauty” category will receive 6% commissions. So if the blow dryer bought through your affiliate link costs $43.85 your profit would be $2.63. Before you say ONLY $2.63!!! Think about how many people in the world are searching for blow dryers each month. Trust me, there are a whole lot of women who are into their hair and will gladly spend $43.85- on into the hundreds of dollars- maintaining it.
In fact, just at glance the average blow dryer listing on Amazon will sell over 5,000 units per month for a whopping $90,000 in sales. Keep in mind that this is an average. But the highest selling blow dryer sales over 20,000 units per month for over $400,000 in sales. Just think of getting 6% of those numbers without ever holding inventory, worrying about customer service, or shipping! In case you were wondering, that would be around $24,000 in commissions per month!
Click Bank/Traditional Affiliate Marketing
Another way to generate passive income is by joining a more traditional affiliate program like “Click Bank”, “Share A Sale” or any of the other large affiliate networks. The overall concept is similar but instead of selling any product on Amazon, you’d usually be promoting digital products from smaller entrepreneurs.
One major difference in the two programs is that the traditional affiliate networks usually deliver heavier commissions, but that’s because they are harder to convert on. Most of the affiliate offers are swamped with other affiliates selling them and that makes them pretty competitive.
However, experienced affiliate marketers have no problems using these platforms and making a killing 😉 but as a beginner I would recommended starting with Amazon Associates and gradually working your way into other networks.
Amazon FBA holds a very dear place in my heart! I’ve actually built quite a few very successful Amazon brands, and to date have sold over $20,000,000 on Amazon. Every year, people come out with videos saying that its too saturated and its too late to start with Amazon Private Label but that couldn’t be more FALSE!
Amazon is constantly changing and products are always being innovated, and as long as those two thing continue to be true there will always be room for new sellers on Amazon.com. The problem most new sellers have is picking the wrong products to start with, aka not enough product research or jumping in without a solid plan.
If you have a good amount of money to invest in starting an online business I would definitely recommend starting a private label amazon business. One of my good friends Tim Sanders has a course named “Private Label Masters” and he goes from point A all the way to Z, walking his students though every step of the process. If you want to know more check out his website.
Shopify drop shipping was all the craze about a year ago. I don’t have much experience in Shopify but chose to include it in my list of great passive income options because I do know a few people who absolutely kill it with this method.
The concept is simple: the customer orders on your website, you buy the product from the supplier through a website like Ali-express, and instead of taking delivery on the products, you have the supplier ship them directly to the customer anonymously. And, the best part is you used the customers money to fund everything.
So you just sold an item for $25, sent $10 to a supplier and kept $15. That is what I call good math! Did I mention this entire process is done on autopilot through the robust Shopify platform. Although I’m not experienced in this method I can recommend you check on this website to learn more.
Now that you know what passive income is, I’m pretty sure you want to begin building your stream. What route will you take? Will it be Amazon Associates, Clickbank, or Amazon FBA/Private label? If you need guidance on EXACTLY how to get started, or which route is best for you download my Amazon Affiliates Quick Start Guide.