How to Create a Passive Income with No Money
The U.S. Internal Revenue Service categorizes income into three broad types, active income, passive income, and portfolio income. It defines passive income as only coming from two sources: rental activity or “trade or business activities in which you do not materially participate.”
To me a passive income is having an income flow in the future from work you do now. A good example of this would be building a website, (performing the work now) and have it generate an income stream for years to come.
So why isn’t everyone doing it?
A lot of people do try to start an online passive income but fail because they do not understand what it takes to create an online business. Read that heading over carefully and let it sink in.
90% of all the people that try to start an online business to create a passive income thinks it can be done overnight, or in a week/month. It cannot!
Building an online passive income stream takes TIME. You can spend 3-6 months building your site and not see any activity. Its during this time that most people give up saying it doesn’t work or just get frustrated.
But if you can have the patience and determination and get past that point, you can get an income stream started. Once it starts it will be residual. It will keep coming in and increasing with time.
One thing you don’t want to do, as many others have done, is just say right now it’s too much work or it’s not as easy as I thought, and a year from now look back and say, “if I had just done it then, I’d be doing well now”.
Why do you want to create a passive income? People have different reasons, so what is yours? A new car, better vacations, your child’s education, a vacation home, a better life? Whatever you reason is it has to be strong to get you through that 3-6 months of working on your site.
You know what it is already or you wouldn’t be looking for a way. So write it down, find a picture and put it by your work space so when you get frustrated, (and you will), take a good long look at it and get back to work.
You will need a focused niche
My definition is “a group of people looking for something specific”. Think of it this way. What do you like? What are you passionate about? What you decide will be what your building your new website about.
Choose an interest you have. Maybe your a bird lover and want to sell products related to wild birds. Maybe you like to work with your hands and want to build bird houses or feeders and sell them online.
Maybe your a golf nut (like me), and want to sell golfing products. Good niche but its too broad. You have to narrow down your niche (passion) to be a focused niche. I have a page on how to focus your niche. [Read More]
Now that you understand what it’s going to take, time patience and determination, and you have a strong why and a niche you’d like to focus on, The next step is to create a website for that niche.
The website and Hosting dilemma
Free offer Below
There are a lot of places to buy your website name (Domain name) and have it hosted. There are sites that you can get a free domain name, but your going to pay for hosting plus a lot of other add-on’s.
I have a tab on the top of my site labeled, “website hosting reviews”. You can read through them but I caution you with any of them that are owned by EIG. They own about 80+ website hosts and all of them are going downhill.
Once you add up the hosting, Adding WordPress, (the easiest and most popular website building program), site security etc., it can cost $30.-100.00 a month to have your site and have it hosted. That’s $360-1200.00 a year.
I recommend the site below because you can start for free (Buying a domain and have it hosted). Most importantly is the training, (if this is your first time) and the community of liked minded individuals that are all eager to help, free keyword search’s and more.
When your building your new website, there are things you will need to understand. You will need a keyword search platform, free when you sign up to the site above or you can subscribe to one which usually runs about $19.00 a month.
You will be using the keyword search platform to create your website name and your page titles. Your page titles will be more important than your website name. [Read More]
Your content, (information you write) has to be informative, educational, solve a problem or answer someone’s question. Your site should have reviews on the products you want to sell and its competition.
The most successful online businesses do not focus their website or it’s content on selling products, they focus on helping people.
People today do more research on products and services before making a purchase or committing to a service. They want information, details and help to make an informed decision. Provide that information and you’ll do very well.
Understanding the online customer buying stages is important as well so you can build your content to target them at the right stage. [Read More]
My website is full of pages of information on every step of building a website. Remember that every site you see online started at the same place. An idea, a blank website and a dream.
My final opinion is to take your time, understand what it’s going to take, make sure you have a strong why and a focused niche. Don’t start this venture if your not well aware that it’s going to take time, patience and determination.
You can read through the top 10 reasons that people fail in online business here. Also at the website host I have recommended, where you can sign up for free, get 2 websites and hosting free, I also recommend that you do that, jump into the live chat, which is always full of people day and night. Ask them about building an online business, what it takes, is it worth it?
Use this opportunity to get some additional information and details without it costing you a cent. Some of the members there are extremely successful and are willing to talk with you about anything regarding online businesses.
I hope you found this information helpful
All my best to your online success,
PS: Please leave a comment if you have a minute…Thanks
- Published On : 1 year ago on August 17, 2018
- Author By : Douglas Schmitz
- Last Updated : September 5, 2018 @ 2:42 pm
- In The Categories Of : building online business