Passive Profits: Do It Once and Profit Forever - Dividends, Pensions, and Other Interest

Dividends, Pensions, or Other Interest From Investments

With a large enough investment, it’s possible to pay your living expenses from the interest. While it can take a significant amount of time to accumulate enough assets to see a significant amount of money, it’s entirely possible long term.

Ponder these tips about investments:

1. Start saving and investing early. Even $100 a month can result in a huge nest egg if you start saving and investing early enough. Go online and work with some interest calculators to see various scenarios that could work for you.

    

     
2. Leave your savings alone. To accumulate wealth, avoid withdrawing it for any reason.

    

     
3. Focus on growth early on. Your early years are the time to focus on stocks. Later on, you can focus on other investments as your retirement nears.

    

     
4. Take full advantage of any retirement accounts. Look into any pension plans your employer offers. If you’re self-employed, you’ll have different retirement options available.

    

     
5. Think about taking your profits from other sources of passive income and investing them. The key to maximizing your wealth is reinvesting your profits into other projects that will provide even more earnings.  

One thing to remember is that if all of your money is invested in other forms of passive income, you may lack the liquidity you’ll require if an unexpected expense comes along. Therefore, it’s a good idea to set up an emergency fund equivalent to several months of living expenses.

"Financial peace isn't the acquisition of stuff. It's learning to live on less than you make, so you can give money back and have money to invest. You can't win until you do this."

- Dave Ramsey

 

 

Earnings From a Business That Doesn’t Require Your Involvement

Most of us dream of owning a business that would pay us at least $100,000 per year. But if you’re running the business, other opportunities are limited. You’ll once again be strapped for time. But, what if you had that $100,000 business and could hire someone for $50,000 per year to run it? You’d still be making $50,000 and have all your time free.

Consider the other opportunities you could still pursue in this scenario:

1. Start another business. Consider how much you could earn if you owned several businesses, but didn’t have to spend a lot of time running them. You could just keep adding businesses to your portfolio.

    

     
2. Spend your time expanding your business. Most business owners are too busy running the business to expand it. If you spent 40 hours a week expanding your business, how big could it grow? How much would you earn then? Maybe you could franchise and have hundreds of franchise owners giving you money each month. 

    

     
   
3. Create another source of passive income. Maybe you’d like to own a business, several rental properties, and 25 websites.

If you’re interested in passive income, it’s important to pick profitable businesses that are suitable to you and your circumstances.

Remember to keep these things in mind:

1. A suitable business is one that requires little time and expertise. Pick something that can be handed off to another person, while you’re creating an additional stream of income.

    

     
2. It’s scalable. Some businesses are easier to grow than others. Think of a business that you can duplicate and grow easily.

    

     
3. Pick something profitable. Choose a business that will generate enough income to allow you to hire someone else to run it while still providing you with a decent income.

"Business opportunities are like buses, there’s always another one coming."

– Richard Branson

Create Something Once That Could Pay You Forever

Think about book authors. They can write a book, put it on Amazon.com, and then sell it for the rest of their lives. Songwriters get paid for writing a song, as well as profiting each time the song is performed or played on the radio. So, would it be a good idea for you to write a book? Let’s consider it!

Implement these easy steps and write your own book:

1. Pick a topic. There are two basic choices: fiction and non-fiction. Ideally, you’ll do a little research and pick a popular topic. You might know everything there is to know about the mating habits of bumblebees but is anyone interested enough to purchase a book about it?

    

     
2. Formulate an outline. One of the easiest ways to write a book is to create an outline and then fill in the blanks.

    

     
3. Start writing. A typical page is around 350 words, making a 100-page book about 35,000 words. It’s easy to write a couple thousand words each day, and in two to three weeks, your book could be finished and ready to sell!

    

     
4. Edit.  After you’re done writing, it’s helpful to edit your own work first. Then it’s a good idea to hire an editor to look it over. You want your book to be error-free.

    

     
5. Upload the book to Amazon.com. All the information about the uploading process is on the website. Pay special attention to the pricing information.

    

     
6. Tell everyone you know about your book. Ask your friends and family to buy your book. Post it on your Facebook wall. It’s entirely reasonable to make a few hundred dollars a month from a few weeks of part-time work. If your book becomes popular, you can make hundreds, maybe even thousands of dollars.

    

     
7. Keep writing. Many writers create books in multiple categories. For instance, an author might write romance novels, dog training guides, and books about international travel. Many authors will use different pen names for each category. Potential buyers may be doubtful of your expertise if you claim to be an expert in multiple categories.

Related Ideas

If you like the idea of writing, but would rather tackle something shorter than a book, you could write articles and post them on revenue-sharing sites.

Basically, people read your articles and are exposed to advertisements as they do. You get a percentage of that advertisement revenue made by the website that is hosting your article.

It can take a decent amount of time to write enough articles to generate a real income, but many people make a full-time living using this method. Again, it’s important to find popular topics!

The more times your article is read, the more money you will generate. These articles can continue making you money for years!

What about photography or art? There are similar revenue-sharing sites for photographs and other types of artwork. Any time someone buys your photograph, you’ll get a commission. You could also have your own website to sell your work. In this case, you wouldn’t have to split the money with the revenue-sharing site, but you’d have to generate your own traffic.

"The important thing is not being afraid to take a chance. Remember, the greatest failure is to not try. Once you find something you love to do, be the best at doing it."

– Debbi Fields

Sell Affiliate Products With Your Own Website

If you’d like to sell something on your own website, but you’re hesitant to deal with customers and shipping, consider selling affiliate products.

You can find plenty of things to sell on websites like ClickBank.com and Amazon.com:

1. ClickBank has electronic products, such as e-books, videos, and audio programs you can sell. After signing up with ClickBank, you’ll be given an affiliate ID. Each product has a landing page (sales page), and a link is generated. If anyone buys a product after clicking on your link, you’ll earn money.

• You’ll usually earn 50-70% of the purchase price.

   

• It can be challenging to pick products because there are so many to choose from. The most popular categories are love, weight loss, and money because they are universal. However, these categories can be competitive.

   

• Pick a product based on your ability to generate web traffic. It might be wise to start with something less competitive until your SEO chops are up to the task.

2. Amazon.com. Amazon has a similar program, but the link you provide to your customers will take your buyers to Amazon’s website. Again, you make a commission when someone makes a purchase after following your link.

• The percentage that Amazon pays out in commissions is very small. Therefore, it makes sense to go after larger ticket items, such as flat screen TVs, so you can make more money.

   

    
• You could create a website that reviews new models of TVs, and then simply provide your affiliate link to the Amazon page.

   

    
  
• Create reviews from the ones already on Amazon. Read multiple reviews and then incorporate the information into a single one.

3. Other sites. Search on the internet for “affiliate products.” You’ll be surprised to find out how many different products have affiliate programs.

Making money as an affiliate has numerous advantages:

1. There’s only a minimal cost to become operational. There’s nothing to buy upfront and no inventory to store. Your only expenses are web hosting and a domain name. A domain name costs $12 or less per year. Web hosting is around $6 per month for an unlimited number of domains.

    

     
2. Someone else is dealing with the customers. Since another company is providing the product, they also handle the complaints. In our previous examples, ClickBank and Amazon will deal with any customer issues.

    

     
3. There are an unlimited number of products to sell. You can sell t-shirts, vitamins, lawnmowers, travel packages, and anything else you can think of.

    

     
4. The company providing the products deals with collecting payments and delivery. Everything is taken care of for you. In most cases, you’ll be paid your commission once per month.

Affiliate marketing has a very low barrier to entry and can be a great way to start generating passive income. Your websites will require a minimal amount of work once you get them created and ranked on popular search engines.

You could even do this without a website. If you have an email list, you can send out a mass email and direct your customers to the product. Anytime you have a website, do what you can to capture the visitors’ email information. A good email list is extremely valuable.

You can also sell your own digital products. You could even sell them on a site like ClickBank and let them do the work for you.

“Money is always there but the pockets change; it is not in the same pockets after a change, and that is all there is to say about money.”

- Gertrude Stein

 

We'll conclude this article next week with a quick review and conclusion.

If you missed any other parts of this series, just click below to find them.

Passive Profits: Do It Once and Profit Forever - Rental Income (Part One)

Passive Profits: Do It Once and Profit Forever - More Rental Income (Part Two)

Passive Profits: Do It Once and Profit Forever - Dividends, Pensions, and Other Interest (Part Three)  YOU ARE HERE

Passive Profits: Do It Once and Profit Forever - Conclusion (Part Four)

Now go and grow! 

Michelle R Russell

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