When you think of making money online through YouTube, you probably think of becoming a ‘YouTuber’. That tends to carry the connotation that you’re going to become an active content creator, film lots of video and probably build a large audience/following for your brand.
This is a great lifestyle that allows you to make money doing something you love, while also enjoying a modicum of genuine fame. It’s a lot of work and requires a lot of skill but it’s also almost definitely worth it.
But that’s not the only way to make money from YouTube. Actually, YouTube can be set up as a very nice passive income model that will generate revenue even while you’re resting. You can practically automate this money-making system and find it’s still surprisingly profitable. Read on to learn how…
Maximum Revenue, Minimum Investment
YouTubers can make money in a number of different ways. They make money from advertising their own products and affiliate products for example but they also generate revenue from PPC ads. These are adverts that pay out for each click – so every time someone clicks on an ad or watches it all the way through, they get a tiny amount of cash.
But while that amount is tiny, if you can rack up thousands of views a day, then it starts to add up. If you have a YouTube video that ranks in the top spot for a very popular search term, then potentially you can stand to make hundreds of dollars a day.
And if that content is evergreen, then there’s no reason why that video can’t keep making money for a long time to come!
Better yet, when you consider that you can probably make and edit a great video in a few hours… there’s nothing to stop you from repeating the formula over and over again until you’re eventually making hundreds, if not thousands of dollars.
Yes, it really is that simple – but there’s a couple of tips that will help you ensure you use precisely the correct strategy!
Quality and Brevity
When making your videos, think ‘quality not quantity’. That is not to say that you shouldn’t make a lot of videos, rather that they shouldn’t be overly long. Google actually encourages YouTube creators to keep their videos to around 3 minutes, as this will increase the number of complete views and thereby drive up revenue.
What’s more though, is that making your videos shorter means that you can make more videos in a shorter time frame and then have more content to upload that will get multiple views. That way, you can take a few days out of your regular gig, film some short videos and then upload them all in order to generate big revenue.
It sounds easy and it really is – as long as you are making those videos high quality (which needs the right equipment and good editing) and as long as the videos are in a popular niche!
Making money while you sleep or travel the world might sound like a dream to a lot of people but this is one of those dreams that can become a reality thanks to the transformative power of the web.
To earn a passive income, all you need to do is set up a system that allows you to sell products without having to put in any work to create and deliver said products. That could mean that you’re selling a digital product such as an ebook for example, or it might mean that you’re selling a product on behalf of another company – acting as an affiliate. It could even mean making money from advertising.
And there are a surprisingly large number of ways you can do this. Read on to discover some of the best methods you can use to make passive income and how they each work…
Sell an Ebook From a Sales Page
Creating an ebook is a simple matter of choosing a subject and then writing about it in a Word document. You can then save that document as a PDF file and start selling it from your website. If you don’t have the necessary writing ability, knowledge or patience to write an ebook though, then you can simply outsource this process by hiring a writer from a site like UpWork or Elance.
Add an automated sales and delivery system, creating an advertising campaign or evergreen website and you’re good to go!
Sell a Kindle Ebook
You can simplify the process of selling ebooks too by selling through Kindle. Kindle is of course the name of Amazon’s e-reader device and this also comes with its own store where users can find and download books. This makes it a highly effective ‘distribution platform’, meaning that it’s a very easy way for you to find customers, sell to them and deliver your product. You don’t need to worry at all about marketing, about handling payment or about delivering the product – Amazon does all that for you!
Best of all, it’s free to sign up!
Sell an App
Or why not make money from an app? This works just the same as selling a Kindle book, in that you have access to a ready-made distribution platform with a large, captive audience. And if you sell your app on Android, then you’ll only need to pay $30 to sign up and your app will be automatically approved in a matter of hours.
Don’t know how to make an app? Then just use an app builder tool or outsource the process!
Run a Website
If you can get enough visitors to a website, then you can use this as a means to turn a profit from advertising. Use AdSense and each time a visitor clicks an ad, you’ll get a tiny payment (usually of a few cents to a dollar). The hard part is getting enough visitors to your site without spending every waking moment running it – but if you hire writers, or if you create an ‘evergreen’ resource, then this can work well.
A lot of internet marketers have the singular aim of gaining passive income. Passive income is the ultimate aim in many cases because it means that you’re making money online without having to trade your time for money. Making money online is already highly liberating as it means you can work when and where you want. But if you’re working for a client, then ultimately you still need to do a certain amount of work every day to get paid, which means you still aren’t 100% free.
If your income is passive however, then you’ll be able to make money from your business even when you’re sleeping! If a friend turns up at your house and asks if you want to take a 5 day trip… you can! No need to tell clients and no need to lose out on money you could have been earning.
But that begs the question… what do you do when you start making enough passive income to quit your day job?
One option is to keep working while you earn passive income. If you’re making a full-time salary from selling an ebook, then you can carry on making a full-time salary from your job as well… and now you’re making two salaries. That can allow you to live a relaxed and indulgent lifestyle, free from financial stress and worry. Or alternatively, it might just mean that you can take an early retirement!
Pursue Your Passions
Better though, would be to quit your day job or your other online business and instead invest yourself into something you were truly passionate about.
That might mean that you start your own business that isn’t likely to turn a huge profit right away. Or it might mean that you take a relaxed day-job that won’t earn a fortune. Always wanted to spend more time outside? Become a park ranger! Wish you had time to write a best-selling novel? Go for it!
Many small businesses will create side projects like this in order to ‘bootstrap’. And with this money behind you, you can now go on to become a YouTube sensation, a famous blogger, or a recording artist!
Make More Passive Income
Another option is to move on from that passive income model and to set up another one. Passive income is endlessly scalable thanks to its minimum-input nature. The more models like this you set up, the more money you can earn and the more ‘resilient’ your business will be (meaning you’re not likely to end up destitute because one of the businesses failed!).
Become a Digital Nomad
Finally, you could always pack your bags and travel the world! You’re earning money online so you can carry on turning a profit anywhere you have your laptop. And because the income is passive, you’ll have plenty of time to explore those far-off lands! This is an amazing way to have a life filled with adventure and incredible experiences – and it’s something many people only ever dream of…
Passive income is what a lot of people think of as ‘living the dream’. If you’re earning a passive income, that means that you’re making money from a website, a digital product or an affiliate product that you previously set-up. Now you can sit back and relax while the money comes pouring in! Potentially you can scale this business to become very wealthy but either way, you get to benefit from no longer trading your time for money!
But is it really like that? Are you really heading for a life-time of making money while you relax on beautiful yachts?
This is Not a Get a Rich Quick Scheme!
Maybe. But the first thing to acknowledge is that this is in no way a ‘get rich quick’ scheme. This is not a method you can use to make money without putting in the equivalent amount of work and time up-front. You are still working for your income, the only difference is that you’ve done this work ‘up-front’ as it were.
The other thing to recognize is that this takes a lot of time and a lot of trial and error. In the vast majority of cases, you should not expect to be making hundreds of dollars a day for a long time to come.
Instead, it will take time, work and a lot of patience to eventually get to that point. If you start your passive income business model thinking that you’ll be able to quit your day job right away, then you should expect to be very disappointed.
Instead, the best way to think about passive income, is as a good way to add a little bit of extra revenue to your existing set up. Try to think of ebook sales or clicks on adverts as ‘extra’ income and as a way to improve your overall salary.
This way, you won’t be disappointed even if you’re only making $20 in ebook sales a week. That’s still $80 a month and $960 a year – enough to go on a good holiday!
But more importantly, once you start making this money and you enjoy making that much, you’ll find that it starts to increase. If you don’t get quickly frustrated and give up on your passive businesses, then they will grow over time and start to make more and more money.
That’s how you successfully grow your passive income and it’s what will eventually allow you to give up your day job.
The other great thing about passive income models is that they are endlessly scalable. Because you aren’t trading man-hours for money, that means there’s no limit to how many times you can repeat the same business model over and over again.
Making a profit from selling an ebook on Kindle? Then why not make another? And another? And another? This way, you can multiply your sales over and over again.
And eventually, you’re almost sure to land on that ‘big hit’ that will be your real cash cow. It takes time, it takes patience and it takes luck. But it’s worth it!
If your goal is to generate passive income, then you might well be hoping to accomplish that by selling a product. This could be a product you’ve made, or it might be a product that you are promoting as an affiliate marketer. Either way, you’ll likely have set up a sales page, creating an ad campaign to send visitors there and then hopefully begun to rake in the profits!
The problem is that it can be tough going trying to convince people who visit your page to buy. Your success in this endeavour comes down almost entirely to your conversions – the percentage of visitors that end up buying from you.
And to this end, many marketers will jump straight in with the ‘hard sell’. That means that they’ll heavily push all the positives of their product and try to get the visitor to click ‘buy’ as soon as they get there.
This doesn’t tend to work. Although you probably want to make your sales process as simple and automated as possible, it’s absolutely essential that you don’t try and go straight in for the kill. Far more effective is to try to capture leads first instead. Here’s why…
Why Cold Sales Don’t Work
Just because you’re making money passively, that does not mean that you should be impatient about how you are collecting your sales.
If you try and convert your visitors as soon as they land on your page, then this is the equivalent of walking up to someone you like in a bar and asking them for their number, without saying hello or even introducing themselves first. Or it’s a little like walking up to someone in the street and offering to sell them a watch for $500. Would you be receptive to that sales technique?
Of course not! And the reason is that you know nothing about the person selling, you know nothing about the product and you have no reason to trust that what they’re offering is as good as they say it is.
If someone lands on your page and you try to sell to them right away, then they’ll think your site is essentially spam and they’ll be frustrated at the lack of value. Chances are they’ll leave.
How to Convert
So instead, talk to them about how they can get free information by signing up to your mailing list, or provide them with an article and then offer to share more through your Facebook.
Now you have the opportunity to build that relationship and to build trust and eventually, you’ll find that this puts you in a position where they are more likely to want to buy from you!
You might be wondering how this model is still ‘passive’. In fact though, it still can be: there’s no reason you can’t use automated emails for example through an autoresponder. Or you can write a ton of blog posts and then schedule them to post over time.
You can still make your model passive – just don’t go straight in for the kill!
Earning a passive income may be synonymous with making money from a digital product or affiliate product but that is far from the only way you can make money while you sleep and travel.
In fact, what you’ll find is that it’s actually possible to make a passive income even offline! This is something we consider a lot less often but the strategy simply involves building a business that can eventually run itself. You hire staff and you train them up to replace you, so that eventually you can run the business while having very little actual input!
The same thing works online but you can get there a lot quicker by using freelancers. And this is what we call ‘arbitrage’.
What is Service Arbitrage?
The term arbitrage normally refers to trading and it effectively describes taking advantage of different prices in different markets. So for example, you might buy a product from one market and then sell it to another for more. This could mean stocks and shares or it could mean currency even.
So what is service arbitrage? Hopefully you’ve already guessed that this means buying and selling services, while scraping off a profit for yourself.
If you can find a client who is willing to pay $4 per 100 words for content writing and you can find a writing service that is willing to offer their writing at $2 per 100 words… all you need to do is act as the middle man! You simply look for the clients and then pass their order on to the writer – without even necessarily explaining that the work isn’t for you.
Better yet, is that you can automate even this small amount of work by using online tools that let you schedule tasks. Find long term clients and let them use these programs to schedule work, then use the writers to write the content for you.
The same of course works with a huge number of other services – from web design to video editing!
How to Find Cheap Services
The question is how you find the work and how you find the clients. That’s up to you but there are a few things to note that can help you.
Firstly, know that ‘white label services’ are services that are actually designed for this very purpose. If you can find white label web design services for example, then that means they expect you to hire them to do work for other people… and the prices normally reflect this!
You can also find cheaper labor by looking for students (and offering it as ‘experience!’) or by looking for services from other countries where the money is worth more.
You should also make sure to try different websites. Webmaster forums for example will often have a lot of more affordable services when compared with freelancing sites. So you can find work on the freelancing sites and then hire workers from Freelancer or Fiverr!
There is a lot more to service arbitrage but hopefully this short introduction has given you enough information to decide if the strategy is for you!
Check out my "Ultimate Passive Income" Report below, if you are interested to start your own passive income streams! First seed it, then harvest it! 🙂