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00:00Passive income is one of the most highly debated topics in finance.
00:03Some people say that it's real. Other people say that it's a total myth.
00:06But in today's video, I'm going to share with you exactly how I made over $800,000
00:10in passive income last year alone. In today's video, I'm going to be sharing
00:14the seven ways that I've made passive income that actually work.
00:17I'll explain them here on camera, but I'll also take it one step further
00:20and switch you over to my computer so you can see real examples of all of these.
00:23Now, before we get into this video, if you guys know my style,
00:25I like to try to pack as much valuable information into these videos as possible.
00:29So for each one of these passive income streams, I'm going to share with you
00:32the biggest piece of advice that I can give you that I wish I had
00:35when I was starting out with each of these. So guys, without further ado,
00:38if you want a real video on how to make passive income,
00:40this is going to be the one and let's get straight into it.
00:43Okay, so we've got seven different passive income streams to cover in this video.
00:46For your guys' sake, I'm going to put the easiest ones first.
00:49And then as we get throughout this video, we'll get into the medium difficulty
00:52and the hardest ones to start.
00:53So the absolute easiest way to make passive income is to put some of your money
00:56into a high yield online savings account.
00:59Now, if you're not familiar with what a high yield online savings account is,
01:02essentially all it is is a bank account, just like your checking or savings account.
01:06But the bank is willing to pay you a higher interest rate.
01:09Now, I know it sounds like this is something that's too good to be true,
01:11but most people just don't know that these accounts exist.
01:13So if I switch you over to the computer here, if you just go to Google
01:16and type in high yield online savings, you're going to see a bunch of different results.
01:20What I would recommend is just clicking on one of these lists,
01:22and it's going to show you a bunch of different banks that offer these types of accounts.
01:26Now, the biggest thing you need to know about this one is that you do need to have money
01:28to put into these accounts in order to get passive income from them.
01:32So I say that this is the absolute easiest one to make passive income.
01:35However, the catch here is that this is once you start to make money,
01:38or if you have some money in savings, switch it over to a high yield online savings account,
01:42and you were just automatically going to get passive income from that.
01:45Now, as I mentioned before, for each of these, I want to give you the piece of advice
01:47that I wish I had when I was just starting out with these, and that would be the best banks
01:51that have high yield online savings that I've found over the years. And starting out,
01:55the very first one would be Capital One. Capital One has a performance 360 account.
02:00That's what this is called, and they offer 3.8% interest.
02:03The reason that I say Capital One is one of the best high yield online savings
02:06is because they are an extremely reputable bank, and a lot of people already bank with Capital One.
02:11So it is extremely easy to open up an additional account within Capital One.
02:14That is a performance 360 account and just transfer some money into that
02:17in order to get this started. Now, the other two banks that I really like for this,
02:20the second one is Ally. They have been around pretty much from the start of high yield savings
02:24accounts. They are offering 3.8% as well. And then the last one is Betterment.
02:28Betterment typically tries to keep their interest rate as high as possible,
02:31so they are offering a 4% interest rate on whatever amount of money that you put
02:35into their savings account. Okay, so with that one out of the way,
02:37let's get into the second way to make passive income. This is the first business on this list,
02:41and this one is the easiest and the fastest way to make passive income.
02:44So what this one is, is called Amazon KDP. So if I switch you over to the computer here,
02:48if you just type in Amazon KDP into Google, the first result here should look just like this.
02:53This is Amazon. If you click on this, it's going to bring you over to Amazon Kindle
02:57Direct Publishing. That's what KDP stands for.
02:59And essentially what this business is, is you can sell books on Amazon,
03:03but I'm not talking about either writing books as a full author and selling those
03:06or buying books and reselling those on Amazon. What I'm talking about is creating books like this.
03:11And the way that Amazon KDP works is all we have to do is upload this cover file,
03:16the front and the back, which this one is just blank on the back.
03:18And then what's going to go inside the book, which is just lined pages in this instance.
03:22And then once we've uploaded those art files to Amazon,
03:25Amazon creates a virtual listing on their marketplace.
03:28And anytime someone purchases this book on Amazon,
03:30Amazon actually prints that in their book printing facility,
03:33ships it out to the customer and handles all of the customer service.
03:36This is one of the easiest online businesses that you can start that makes money quickly.
03:40And it is strictly passive income.
03:42Once you've created those art files and uploaded those to Amazon,
03:45they stay on Amazon forever.
03:46And then as people make purchases, Amazon does all the printing,
03:50shipping and customer service.
03:51That is the definition of passive income.
03:53We do the work up front.
03:54Once we've uploaded it, there's nothing else for us to do,
03:57but to receive our split of the profit on every order ongoing into the future.
04:01So guys, this is a business that I started back in 2018,
04:04and it has been generating passive income since then.
04:07There has been a stretch of over a year that I haven't even opened up this account.
04:10I haven't touched it.
04:11I haven't thought about it.
04:12I haven't even looked at it and it's been generating income all this time.
04:15Now, with that being said, this is absolutely a business that anybody can start.
04:19You can do it from anywhere in the world and you can start totally for free.
04:22And as promised,
04:23a really good piece of advice that I wish I knew when I was starting out in this business
04:26is that there are a bunch of different categories of books that you can sell on Amazon KDP.
04:31And of all of those categories,
04:33the absolute best one that sells really well is creating word search books.
04:37This is an example of an Amazon KDP word search book.
04:41When you open this up, it actually has word search puzzles inside.
04:44And the reason that these books sell so well on Amazon KDP
04:47is not many people know how to create the word search puzzles.
04:50So if you can learn how to create the word search puzzles
04:52and you know how to upload those to Amazon KDP,
04:54you are competing with very few other sellers that also know how to do this.
04:57Now, for those of you who this is the first time you're seeing one of my videos,
05:00I just want to share with you that if you do check out my YouTube channel,
05:03I have full step-by-step tutorials on how to do all of these businesses.
05:07I'm one of the people here on YouTube that shares things very openly.
05:09So I'm sharing all of my tips and tricks,
05:12the things that I've learned through trial and error
05:13and my exact processes on how I do these businesses.
05:16So with that being said,
05:17for those of you who are interested in creating word search books for Amazon KDP,
05:22I will leave a link in the description below
05:24to a full step-by-step Amazon KDP tutorial.
05:27It's 100% free. It's here on YouTube.
05:29So if you do want to watch that video
05:30and start an Amazon KDP business for yourself,
05:33that link will be waiting for you down in the description.
05:35So guys, as far as starting an online business that generates passive income,
05:38Amazon KDP is by far the easiest and fastest way to do that.
05:42However, it's not the only easy way to do this.
05:44This brings us into the next way to make passive income.
05:46And this one is also easy to start.
05:48So as we just discussed,
05:50Amazon KDP is for creating and selling books on Amazon.
05:52But Amazon has another very similar department called Amazon Merch on Demand,
05:56which is for creating and selling t-shirts on Amazon.
05:59So if you go over to Google and you type in Amazon Merch on Demand,
06:03this is the page you're looking for specifically.
06:05So if you click on that,
06:06this is going to bring you to their homepage for Amazon Merch on Demand.
06:09But essentially, this is the exact same thing as KDP,
06:12except you're creating designs for t-shirts instead of books.
06:15Guys, this is a business model that I started even before Amazon KDP,
06:19and it is still generating passive income.
06:21Now to show you a real example of this, let's go over to Amazon.
06:24And if you just look for funny golfing t-shirt, this is just an example.
06:27You can have t-shirts on any topic, but this will give you a good idea of how this works.
06:31So all of these shirts, they look like they are shirts that are actually printed,
06:34held in inventory and shipped out to customers.
06:36But as soon as you see all of these mockups that all look the same.
06:39So these are three totally different designs,
06:41but the mockup of that t-shirt looks exactly the same for all three of these.
06:45And then as you keep scrolling through, you're going to find more of these.
06:47That's the same exact mockup.
06:49These are all going to be done with Amazon Merch on Demand.
06:51So if we click on one of these,
06:52the confirmation that this is in fact done with Amazon Merch on Demand is the label right here.
06:57So essentially the seller has just created this simple design,
07:00uploaded that to Amazon.
07:02Amazon creates this virtual listing, just like the books for Amazon KDP.
07:05And then when someone purchases it,
07:07Amazon prints it in their t-shirt printing facility.
07:09They ship it out to the customer.
07:10And again, they handle all of the customer service.
07:13Now, before I get into the one biggest piece of advice
07:15I can give you before starting Amazon Merch on Demand,
07:17the big thing that I want to clarify here is that
07:19these are being sold for a lot more than what those Amazon KDP books are being sold for.
07:23So that means that the profit margin on these is bigger than Amazon KDP.
07:27However, the catch to that is that there are more people doing Amazon Merch on Demand
07:31than Amazon KDP.
07:32This is where the biggest piece of advice that I can give you comes in.
07:35My best piece of advice is to find out what are all of these small niches
07:39that other sellers haven't thought of yet and create your designs in those.
07:43Essentially all the big popular niches that all the other sellers can easily think of,
07:47they are all going to be full. They're all going to be oversaturated.
07:51A ton of people have already created designs in those.
07:53However, if you learn how to do niche research,
07:55you can find all of these small gaps where people have not discovered yet,
07:59then you can create your t-shirt designs in those.
08:01Now, again, this is another business model that I have created a full extensive
08:05step-by-step tutorial on walking you through everything from the idea
08:08that you want to start this business to doing that niche research,
08:11creating your designs and how to upload them to Amazon Merch on Demand.
08:14So guys, for those of you who want to start this business model,
08:16again, I will leave a link down in the description below.
08:18So I really hope that you guys take advantage of this one or the Amazon KDP one.
08:22Both of them will walk you through everything you need to start those businesses.
08:25All right, guys, so those are the first three ways to make passive income.
08:28Those are all of my easy options for you.
08:30So no matter which one you are starting, those are going to be the easiest to start.
08:33The next three that I have on this list are going to be the medium category,
08:37and then the last one is going to be the hardest.
08:38So let's get into the first of the medium difficulty passive income streams to start.
08:42All right, so this next passive income stream has been around forever,
08:45and you've probably done this without even realizing that you've done it before.
08:48However, now it is available to do online using the internet,
08:52and this is what turns it into passive income.
08:54So what this business is called is affiliate marketing.
08:56Now, affiliate marketing is what this is technically called,
08:59but really what it is, is using companies referral programs.
09:02So in person, if any of your neighbors or any of your friends or family have asked you,
09:05Hey, what was a good one of these?
09:07Or who was a good person who did this for you?
09:09And you've given them your recommendation or your referral.
09:11That is what affiliate marketing is.
09:14However, what a lot of people don't realize is that almost every big company out there
09:17has an affiliate program or a referral program where they are willing to pay you a commission
09:22for every person that you recommend to them.
09:24Now, as far as doing this in person, it's not a very passive income business
09:27because you have to be having conversations.
09:29You have to be sending links to people.
09:30However, if you take this to the online environment,
09:33you can turn this into a very good passive income stream.
09:36So there's basically two main ways to do this.
09:38The first way would be creating a blog style website where you are writing information
09:42about different products that you recommend.
09:44People can then find that on Google.
09:45They can read your article and they can click directly on your affiliate
09:48or referral link to that product.
09:50It brings them over to the website where they can make that purchase,
09:53all of which will give you credit from the company,
09:55which they will then pay you a commission automatically.
09:58Now, that is kind of the gold standard on how to do affiliate marketing online very passively.
10:02However, there is another way to do this that works even better
10:05than creating blog style websites.
10:07And this would also be my biggest piece of advice I could give you
10:10that I wish I knew when I was starting out in affiliate marketing.
10:12What this is, is instead of creating a website and writing blog articles,
10:16create a free YouTube channel.
10:18And instead of writing blog articles, film those as videos.
10:21What I have discovered over years of trial and error with this
10:24is that people just want to watch videos nowadays
10:26instead of sitting there reading articles.
10:28I believe I read something that said that 70% of the internet traffic
10:31is watching videos now instead of reading articles.
10:34So if you can get yourself to create videos about products,
10:37giving you a recommendation and putting your referral link to that product in that video,
10:41that is going to perform so much better than writing those articles
10:44and posting them on your website.
10:45Now, I will say once you know how to do this, it does become easier over time,
10:49but there is definitely a barrier to entry that keeps most people
10:51from starting this business.
10:52Now, again, if you are interested in learning more about doing affiliate marketing
10:55to create passive income, I will put a link to a full affiliate marketing tutorial.
11:00Again, this one is here on YouTube totally for free.
11:02That link will be down in the description below.
11:04All right, so with affiliate marketing out of the way,
11:06that brings us into the next way to make passive income.
11:08And this one again is going to fall into the medium difficulty.
11:11What this one is, is specifically creating a YouTube channel.
11:14Now, as we had just talked about, you can do affiliate marketing on a YouTube channel.
11:17However, you can also make YouTube AdSense.
11:20Now, for those of you who don't know what YouTube AdSense is,
11:22it's essentially when those advertisements play before videos,
11:25during videos or after videos, the person who created that video
11:28and uploaded it to YouTube gets paid for each one of those ads.
11:31Now, I will definitely say that the amount that the video
11:33creator gets paid for each one of these ads definitely varies.
11:36And that's based on a few different factors.
11:38However, there is one specific thing that you can do to make sure that you get paid
11:41the most for each one of these ads.
11:43And this is also the biggest piece of advice that I can give you
11:45if you do want to start a YouTube channel.
11:47And what that is, is to understand that you can either create
11:49entertainment content on YouTube or educational content on YouTube.
11:53Entertainment content is creating vlog style videos
11:55or things that people are just watching just for fun.
11:58However, educational content is where people are coming in,
12:01trying to learn something from your video.
12:03If you can create a YouTube channel that is focused around educational content,
12:07the advertisers on YouTube pay significantly more for those ads.
12:10So each time someone watches an ad, you will make a lot more money
12:13compared to the entertainment style videos.
12:15Now, with all of that being said, once you create a video
12:17and you publish it to YouTube, it will continue to get views
12:20just totally organically for years to come.
12:22And when I say years to come, I'm not talking about one or two years.
12:25I'm talking about five, 10, 15 years down the road.
12:29The videos are still getting views,
12:31which means that you are still getting paid for every time
12:33someone watches one of those ads.
12:34Guys, if you are thinking about creating a YouTube channel,
12:37it is one of the most proven ways to create passive income.
12:39And if you're creating educational style videos,
12:41you can actually be helping your viewers
12:43by sharing the things that you've uniquely learned in your life.
12:46All right, guys, so I've got two more on this list.
12:47These are both proven ways to make passive income.
12:49The first one is creating digital downloads.
12:52Now, if you've never heard of a digital download before,
12:54essentially what that is is you create a file on your computer
12:57and then you offer that for sale to other people
12:59and they can purchase it online
13:01and it instantly sends it to them to download to their own computer.
13:04Now, if you haven't seen anything like this before,
13:05let me just show you a good example of this.
13:07If you go over to Etsy.com,
13:09I'm just searching for wedding invitation,
13:10but there are a million different examples of digital downloads.
13:13If you scroll through here,
13:14you're going to see that some of these are actual printed cards
13:16where they will print them and they will ship them to you,
13:19but others are just digital downloads.
13:20So for this one, for instance,
13:21the person who created this listing has just created this layout right here.
13:25And then as you scroll through the photos,
13:27you can see that the person who purchases it
13:28is just able to customize that specific layout
13:31and then they can print it themselves.
13:33This is a perfect example of a digital download.
13:35Now, as far as the biggest piece of advice I can give you,
13:37if you are going to create a digital download,
13:39it's to think about what you have learned in your life
13:42that you can share with other people that will save them time.
13:45So for this wedding invitation example,
13:47if you are a graphic designer,
13:48you can create these templates or these layouts that other people really like
13:51and they don't know how to create.
13:53You are saving them time.
13:54You are saving them the trial of error of trying to create it themselves.
13:56Another example in a totally different niche,
13:58just to give you some ideas here,
14:00is you could create a budgeting finance spreadsheet
14:02that has all the calculations built into each column.
14:05And you can sell that as a pre-made budgeting tool
14:07that people can purchase
14:08and it instantly downloads to their own computer.
14:10Now, guys, for those of you out there
14:11who do have a good idea to create a digital download about,
14:14once you do create that,
14:15you can list that on a marketplace website like Etsy,
14:18where there are several other ones out there.
14:19People will organically find it on their own
14:21by coming to that website's marketplace.
14:23And then every time someone makes a purchase,
14:24it'll automatically download to their computer.
14:26So just like that,
14:27we're onto the last way to make passive income in this video.
14:29This is going to be the hardest one on this list.
14:31And what this one is, is creating online courses.
14:34Now, for those of you who don't know,
14:35you can actually create an online course and sell it on Udemy,
14:38or you can sell it on Skillshare.
14:40And essentially, these are marketplaces
14:41that sell your online course for you.
14:43You're even going to see other YouTubers
14:45creating online courses just to generate more passive income.
14:48But all this is, is creating a very formally laid out
14:51step-by-step course teaching a specific topic.
14:54Now, although this generates great passive income,
14:56it is definitely in the hardest difficulty to start.
14:59And that is because before you can create the course,
15:01you need to have all these skills and knowledge
15:03in order to teach that topic.
15:05So my biggest piece of advice I can give you
15:07if you do want to create and sell an online course
15:09to make passive income is to think about two places of information.
15:12First would be your career, and second would be your hobbies.
15:15These, in the vast majority of cases,
15:17are going to be what you know enough information about
15:20that you could put together a full course on.
15:22So guys, I hope this video has helped you a lot.
15:24Don't forget about all of those full free tutorials
15:26down in the description.
15:27For any of the businesses that you do want to start,
15:29those will walk you through everything step-by-step.
15:32All right, guys, that's it for this video.
15:33If you enjoyed it, please give it a thumbs up.
15:35If you have any questions at all,
15:36let me know down in the comments.
15:37Otherwise, I'll plan to see you guys all in the next video.
15:40I'll plan to see you guys all in the next video.
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