Make money while you sleep – Building Passive Income Sources

Building Passive Income Sources!

“If you don’t find a way to make money while you sleep, you will work until you die.”

– Warren Buffett

In one of my earlier articles, I had spoken about the different businesses that I had tried online.

..and also my story of how I failed in some of them.

But this one is different.

Because I didn’t fail in this one.

Instead I just decided that it was not for me. And hence I quit!

The year was 2010.

I came across a very unique platform where you could offer your services for only $5.00

You of course had the option of offering upgrades, but the base price was only $5.00. The platform was hence called Fiverr.

It didn’t take long before I found my first client on Fiverr..

It was all of 3 days!

I was offering –

1. WordPress installation services
2. Ghostwriting services
3. Press release writing and submission services

And, one client became 3 and then some repeat clients and my business grew.

I was struggling to meet demands.

In only 30 days my income had grown to $2,000.

And by the 41st day I had made $2,424 on Fiverr.

That was a lot of money for me.

In India that was the kind of money that top employees get paid as a salary. And I am talking about real good salary, especially in the year 2010.

But then on the 42nd day I quit freelancing on Fiverr.

Wondering why?

Because, the stress and long working hours was taking a toll on my body.

I was doing a full time job that was extremely demanding. It was not a 9-hour work day. Instead it would stretch to a 12-13 hours pretty much every day.

And I wasn’t able to find time for myself, my wife or, my little baby who was only a few months old.

I was losing out on seeing her grow!

Valuable moments. Isn’t it?

That’s when I thought!

The core reason for starting an online business was to get some free time and to work on my own terms.

But it wasn’t something that I was seeing.

So I decided, I will quit freelancing.

My reasons were obvious –

1. Because I wasn’t ready to trade my time for money.
2. Because I wasn’t ready to let a client decide my income.
3. Because I wasn’t ready to let someone else decide my work hours.

Because I wanted more freedom, not just independence.

Now, before we continue the discussion, let me tell you that I am not against freelancing.

Freelancing has helped a lot of people become independent.

It has helped a lot of people get out of the 9-5 rat race and live a life on their terms.

Yet, somewhere you still depend upon others for your income.

• will you get a client or not?
• will they accept your rates?
• will they come back once the project is over?

And when it comes to scaling, you have only two choices –

1. Work more hours, find more clients, sell more services
2. Start an agency, hire employees and sell more services

I wasn’t ready for that too.

Which is where I started looking for passive income models.

You see, I am inherently lazy.

I don’t want to work.

I want to get paid with as little work as possible.

And the only way this was possible was through something that can generate passive income.

Finally my search culminated at a book – “Affiliate Project X”.

The book was about affiliate marketing.

And it was probably the best book that I have ever read.

This book taught me about affiliate marketing or, referral marketing as a lot of people call it, these days.

Let me throw in some statistics:

• about 28% of movie ticket sales happens through word of mouth or, recommendation and the conversion rate is as high as 97%
• about 72% of doctor’s practice happens through referrals
• about 18% of electronic product sales happens through recommendations

..and do you know what is the funnier side of the story.

Companies and professionals are making sales out of your recommendations and referrals.

But you don’t earn a single penny out of it.

Affiliate marketing or, referral marketing makes this happen.

Which means, you make money on every referral you make.

I was immediately sold on it.

And I decided to get started.

Do you know what was the first thing I did?

I reached out to the creator of the book – Affiliate Project X.

And asked him if he has an affiliate program?

He said, “Yes” and gave me the affiliate link.

I made more than $8,000 promoting the book in 2011.

Remember that there was no social media back then and yet I was able to make that kind of a commission.

Today I promote more than 20 such products and services and run a full time business from them.

In fact, I refer products and services I bought from Amazon and make about $2,500 per month from the Amazon affiliate program.

This is not a pitch to sell you on starting an affiliate marketing business or, quit freelancing.

Instead, this is just an attempt to show you the various options that are available.

The decision and the choice is entirely up to you.

So, here’s how you can start making money from affiliate marketing.

Step 1: Pick a Niche You Care About

I am not a fan of the Cliche advice of “pick a niche”..

But in affiliate marketing, picking a niche doesn’t mean that you cannot market to other niches or, that you need to know everything about the niche.

Picking a niche is a good way to get started because it helps you focus on 1 person, 1 problem, 1 product.

And affiliate marketing works best when you’re passionate about the products or services you promote.

Your audience will notice if you’re genuinely excited about what you’re recommending.

Think about it.

If you love gadgets and tech, it’ll be easier for you to explain why a certain gadget is the best. Similarly, if you’re into fitness, promoting workout gear, supplements, or fitness programs would come naturally.

So, what gets you excited?

Is it health and wellness?

Technology?

Personal finance?

Travel?

Choose a niche where you have some interest or experience.

Tip: Focus on a niche that also has commercial potential. You want a good balance of passion and profitability.

Use tools like Google Trends or keyword research tools to validate if people are searching for products in your chosen niche.

Step 2: Find Affiliate Programs

Once you’ve chosen your niche, the next step is to find affiliate programs that offer products or services related to that niche.

Here are some ways to find affiliate programs:

Direct product searches:

If there’s a product or brand you already use and love, head to their website and scroll down to the footer.

Many brands have a “Partners” or “Affiliate” link at the bottom. For instance, Amazon has its own affiliate program, Amazon Associates, which is one of the easiest to join.

Affiliate networks:

If you’re unsure where to start, there are networks that house thousands of affiliate programs in one place. Some of the most popular affiliate networks are:

1. ShareASale: Works with various brands across multiple industries.
2. CJ Affiliate: Another top-tier network with loads of well-known brands.
3. Rakuten: A trusted network with a range of products.
4. Niche-specific programs: If you’re targeting a specific audience, say travelers or fitness enthusiasts, look for niche affiliate programs that focus on that market.

Tip: Some programs offer higher commissions than others, but don’t just chase high commissions. Make sure the product is something you believe in because your reputation is on the line.

Step 3: Build a Platform

Now that you have your niche and affiliate programs, where are you going to promote these products? You’ll need a platform to share your recommendations. Here are a few options:

Blog:

I come across a lot of people who tell me that blogging is dead. And I simply smile at them.

Because blogging is what is making me money since 2004.. and the income has only gone up and not down.

In fact, a blog is one of the most effective ways to promote affiliate products.

By writing in-depth reviews, tutorials, or comparison articles, you can drive traffic to your affiliate links.

Use platforms like WordPress, Squarespace, or Wix to get started.

Blogging is great for SEO, which means you can attract organic traffic from search engines over time.

YouTube:

If you’re comfortable on camera, video content can be an incredibly powerful tool. You can create product reviews, how-to videos, or unboxings.

YouTube’s organic reach can help you get traffic without spending on ads.

Social Media:

Now that social media is a craze, you can use platforms like Instagram, TikTok, and Pinterest for promoting affiliate products, especially for niches like fashion, beauty, or home decor.

You can create engaging content and include your affiliate links in the bio or swipe-up links (once you hit certain follower thresholds).

I have very recently started on LinkedIn and I can see that the platform has much better engagement that any of the other social media platforms out there.

You can get started on LinkedIn right away and be at an advantage because the platform is still very less used.

If you want to learn how to get started with LinkedIn and get it right, I would recommend the LinkedIn OS course from Justin Welsh.

That is how I started off on LinkedIn.

You can check out the course here!

Email List:

This is your secret weapon.

Build an email list by offering a free resource (called a lead magnet), and regularly send out content that adds value to your readers’ lives.

You can occasionally promote affiliate products in your emails.

Tip: Don’t limit yourself to just one platform. Repurpose your content across multiple platforms to maximize your reach.

Step 4: Create Valuable Content

Content is the backbone of affiliate marketing.

Your goal is to provide value and help your audience solve a problem or meet a need. If your content is helpful, people will trust your recommendations.

Here’s how you can create content that converts:

Product reviews:

Write or create videos about products you’ve personally used. Talk about your experience, the pros and cons, and why you recommend (or don’t recommend) the product.

How-to guides:

Show people how to use the product. For example, if you’re promoting a software tool, create a tutorial on how to use its features to solve specific problems.

Comparison posts:

Sometimes people are torn between two similar products. Create comparison content, explaining the differences and which one is better for certain situations.

Tip: Be transparent. Always disclose that your content contains affiliate links. Not only is this a legal requirement, but it also builds trust with your audience.

Step 5: Drive Traffic to Your Platform

Having great content is only half the battle; you need traffic to get clicks on your affiliate links. Here’s how to drive traffic to your platform:

Search Engine Optimization (SEO):

Optimize your blog posts and YouTube videos for search engines. Use keywords that your target audience is searching for. Tools like Ahrefs, SEMrush, and Google Keyword Planner can help you identify relevant keywords.

Paid Ads:

If you’re willing to invest, you can run paid ads on Google, Facebook, or Instagram. Just make sure the math works out: the cost of your ads should be lower than the affiliate commissions you earn.

Social Media:

Share your content on social media platforms. Be sure to join communities related to your niche, whether it’s Facebook groups, Reddit threads, or online forums. Add value to discussions and share your content when appropriate.

Tip: Traffic generation takes time. Be patient and consistent, and your traffic will grow.

Step 6: Track Your Performance and Optimize

Affiliate marketing is not a “set it and forget it” business. You need to constantly track your performance and optimize your efforts. Use tools like Google Analytics to see where your traffic is coming from and which pages are driving the most affiliate sales.

Pay attention to:

1. Which products are performing best: Double down on promoting those.
2. Where your traffic is coming from: Focus on the platforms bringing the most visitors.
3. Conversion rates: If you’re getting a lot of clicks but few sales, tweak your content or try promoting different products.

Tip: Split testing can be a powerful way to improve your conversions. Test different headlines, call-to-actions, or even layouts to see what works best.

Wrapping It Up

Affiliate marketing is a fantastic way to build a passive income stream, but like any business, it takes time, effort, and consistency.

The good news?

Once you’ve set up your systems, the work becomes minimal compared to freelancing or traditional business models.

So, why not get started today?

You’ve got the tools, the knowledge, and the blueprint to start your own affiliate marketing business. Whether it’s promoting products you love on your blog, YouTube channel, or Instagram feed, the possibilities are endless.

The choice is yours.

Will you take that first step toward building passive income?

Recommended Newsletters

Here are few newsletters that I would recommend that you sign up to if you are interested in learning the art of running a side-hustle:

• Write, Build, Scale – https://sparklp.co/p/40cf6480e8
• Why we buy – https://sparklp.co/p/6d27bbcf8b
• The Book Bub – https://sparklp.co/p/3bcef5f1d4
• The Stacked Marketer – https://sparklp.co/p/5c2039bc2c

Sign up to these and follow them. You will get a lot of information and content for your blog posts, podcasts and even social media posts.

I will share more such ideas in my future newsletters.

I put in about 18 hours every month to create this newsletter, starting from researching to writing and editing it.

So, If you enjoyed reading this Newsletter, I would sincerely appreciate it if you could recommend it to others. You can send them to https://theloudspeakeronline.com to subscribe to it for FREE!

What am I reading?

I absolutely love books and I read a lot.

In fact, I don’t just read a lot, but I also take notes on every book that I read.

I have pages and pages on information in my Notion Second Brain, so that I can find them and use them when ever I need.

Want to know more about the books I read. You can check it out here!

That’s it for this week!

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