The Holy Grail of anyone who eventually hopes to get ahead is having passive income–or as some would say, to “make money while sleeping.” But as Kristin Wong points out in “Most Passive Income Isn’t as ‘Passive’ As You Think” on LifeHacker, there really is not any such thing as a perpetual money machine.
Each of us is given the same number of hours in a day. Most spend that time trading hours for dollars to clients willing to pay for our time and expertise. Some of us have learned to charge according to the value of the work provided instead of how long it takes–and that is a step in the right direction.
The well-known drawback to providing services, though, is that when for any reason you can’t or don’t want to work, the income stops. There are two obvious ways to make sure you don’t run out of money when you aren’t working:
- Develop your skills to the level that you can charge so much when you do work that you can cover times when you are not working.
- Create products you can sell through e-commerce systems that will deliver them whether you are available or not.
Do freelancers and bloggers earn passive income and make money while sleeping? Absolutely, yes. But it is typically built upon a lot of work they’ve already done and will need to continue to do to keep the money flowing.
The myth of passive income is that you don’t have to ever work ever again to keep the income flowing…false!
Turn Your Expertise Into Passive Income
Regardless of which method you decide to use to generate income when you’re not working, most people prefer turning their expertise into something buyers can access around the clock.
The most common way to do this is by offering consulting services. Live consulting, however, is anything but passive, so many freelancers create either membership sites, or they create training materials to sell.
The key to earning a passive income is turning your expertise into something you can sell: e-books, training courses, videos, etc. First you have to acquire the knowledge, then actively make the products, and finally reap repeated income from sales that come in while you’re sleeping and any other time.
Start a Membership Site: Pros and Cons
Building a membership site can be expensive, and to maintain it while WordPress (WP) and other components are constantly being updated can be a nightmare. One SEO I know is abandoning a membership site she spent thousands to build because WP updates broke it and the original developer is not interested in recoding it; it would cost more to fix the site than to start over.
To deal with the frustration of membership sites not working with the latest WordPress or code updates, or merchant accounts not functioning correctly, many entrepreneurs are seeking alternatives.
New platforms like eKco allow unlimited storage of content and videos for as little as $29 per month.Unlike well-known platforms used for selling training, eKco allows you to use your own domain and maintain control of your users and pricing. This is very important, as you must control your own audience and how much you charge for your products in order to maximize your income and upsell new offerings without paying commissions repeatedly.