Mariah Carey recorded “All I want for Christmas is You” in 1994. That song has been making her money for 25+ years.
So far, Mariah Carey has made over $60 million dollars from that one song, and every year, she makes around $500,000 from the same song. Talk about passive income!!
Well, you and I are not Mariah Carey, are we?
We may never make that kind of money in our lifetime, but then, nothing stops us from waking up every day with the hope to make a hit.
Given that we now live in an age of abundance and the internet makes it even easier to scoop some of this abundance for ourselves, I firmly believe that in the next 25 years, over half of the world will be making all their purchases online.
Ecommerce retail sales were about 1 billion dollars in 2014. Fast forward 6 years and it now stands at 4.2 billion dollars in 2020 and is expected to reach 6 billion dollars in the next 3 years.
What does this tell us?
Now is the time to start building something on the internet. There’s never been a better time to start building your future online than now. All you need to have is access to the internet, a smartphone, and/or a laptop. Plus a little bit of ambition and you can create a million-dollar business for yourself online.
Build Once, sell twice
I came across this concept on Twitter by a guy called Jack Butcher. The concept is pretty simple;
Build something once, sell it as many times as you can
This is the main idea behind passive income that has been marketed and sold a million times by online gurus. It is a powerful concept that you understand well and apply it, you will attain massive success. Here are some ways to do it:
- Write and record a song once and upload it on streaming platforms like Spotify, Apple Music, and Youtube and it can be streamed a billion times. Every time your song gets streamed, you get a fraction of the subscription or advertising income of these platforms.
- Write a novel and publish it on platforms like Amazon Kindle and it can be printed and sold to a million buyers or read a million times as ebooks. This is a powerful way for self-published authors who can’t get into traditional publishing to attain success. There are self-published authors making multiple six-figure incomes a year, selling books on Amazon.
- Create a course and host it on platforms like Udemy or Gumroad and it can be sold to a million customers. People with specific knowledge or expertise in something like fitness or stock trading can share their knowledge with others by selling courses. A single course once recorded and uploaded can be sold over and over again.
- Create designs and upload them on platforms like Society6, Redbubble, and Amazon Merch, and once a customer buys a product with your designs on them, you earn a royalty. A single design can be printed on a million different products and sold a million times without putting in more effort.
- Build a useful app or game and get it on IOS and Android app stores and if it’s a hit, you stand to make a ton of money down the road. The work of building the app is done once while you keep on earning money for many years down the road.
The above examples all illustrate the power of creating once and selling twice.
The best types of income
I remember in economic class, I was taught about the different types of income: wages, interest, rent, dividends, profits, and royalties.
If you look at all of the above different types of income, you will notice that they can all become passive except for wages. Why so?
Because if you work for someone or for a company, you earn with the time you put in and time is very finite. There’s only so much time you can devote to work each day.
On the other hand, If you write a novel and publish it on Amazon, that book can be earning royalties for years without you putting in any effort again. You’ve written the book upfront and published it. That’s all.
How to build passive income
Making passive income is possible but it’s going to take upfront work to build. If you are broke right now, here’s the playbook you should go by;
Get a job and start to earn an income. Once you start earning enough income, don’t raise your living expenses, instead, live below your means and start to invest in businesses that will bring about the other four types of income. Your only focus should be to grow your income through all these various sources except for wages.
- If you have enough real estate investments that bring in a healthy income through rent, you can retire and live just from rental income.
- If you have content like music or books that earn you a healthy amount of royalties, you will not need a full-time job to make a living
- If you have a huge portfolio of dividend-paying stocks, you can quit your day job and live a dream life by the beach.
- Or if you own pieces of businesses that generate healthy profits, you can spend your life doing only the things you love to do without ever needing a job.
So, is passive income possible?
Yes, it is.
Just learn to build something once and sell a million times and you can live your dream life not ever working a 9–5 job again.