How to Earn Passive Income Online (3 Legit Models From $5 Million Entrepreneur) #Best Education Page #Online Earning

- There are several different ways

to generate passive income and make money online.

And in this video I'm going to share

three completely different legitimate strategies

that you could choose from to build

a passive income business of your own.

Since 2008, I've built several different businesses

that have utilized one or more of these business models.

I've been featured in magazines

and articles across the globe.

And since I've started my journey,

I've generated over five million dollars in earnings.

In fact, all of my income and expenses since October of 2008

have been tracked and can be seen online publicly

on SmartPassiveIncome.com.

Now, instead of reading all of those income reports,

make sure you stick around

because I'm gonna distill the decade of learning

into three completely different business models

that you can choose from.

So you can decide which path you want

to go down from this day forward.

Those three models are the F.P. Model,

the A.A. Model, and the E.P. Model.

What are those?

- [Man] (screaming) What are those?

- Well, I'll tell you in this video.

But the real trick is finding out

which one actually best suits you.

And to help you, I'm gonna give you

a real life example of each of these and how to get started.

Hi, my name is Pat Flynn, founder of SmartPassiveIncome.com

and I'm here to help you make more money, save more time,

and help more people too.

Now let's talk passive income.

What is passive income?

Well, there are many different definitions of it.

But my definition and the way I like to teach it

is it's building online businesses that can work for you.

That allow you to generate income and grow and scale

without a real-time presence.

In other words, we don't trade our time for money.

You build something up front that can continue

to work for you over time.

- Pat, is this even possible?

- Yes! It's definitely possible.

- Is this something you can do

without investing a boatload of money?

- Yes! Unlike real estate or investing in the stock market,

you can build something with relatively little to no money

that can continue to pay you over and over again.

- And finally, is this something that's easy to do?

- No, definitely not.

Passive income is not easy.

Some people are gonna tell you otherwise.

They're gonna tell you about a magic button or formula

or a blueprint where you can get rich all by doing nothing.

And don't even get me started on the people who say

that this stuff can happen overnight.

It doesn't!

And if that's what you're looking for, well, I'm sorry.

You're in the wrong place because guess what?

It does not happen overnight.

It takes a lot of hard work.

You gotta put in the hours, you gotta work hard now

so you can build these assets

that can continue to work for you later.

Because once you start to build that passive income stream,

you start to have a little bit of flexibility and freedom.

You can have more time to do more things or do less things.

Or build even more passive incomes streams.

So please, as I introduce these

three business models to you,

do realize that they yes, take time,

but also, it's very much worth it.

Cool? Cool.

Alright let's get started.

The F.P. Model stands for the Freelance to Product Model.

Starting with freelancing and then finding a problem

that can be solved with a product.

Freelancing is working for different companies

and getting paid for certain skills

that you have that they need.

Now you might be thinking, Pat, what the heck?

You said this was about passive income,

well, freelancing is active income.

You are trading your time for money.

What's the deal?

Well the deal is, we're just getting started.

So, hear me out.

First of all, freelancing, I feel is the number one way

to get started in building a business of your own.

You're gonna learn a lot of skills

running your own business as a freelancer.

And not only that, you're gonna get paid much quicker too

than if you just started with trying

to make passive income first

because that's a great way to fail.

You need to start with the active income first

before you can convert that into the passive income later.

But beyond that, my absolute favorite reason

why I recommend freelancing to start is this.

You'll get to know the industry that you're in quite well.

Perhaps so well that you can find the holes,

meaning the opportunities, for you to create

a product-based passive income business.

In other words, by freelancing in a space you

have interest in, you not only have the opportunity

to make money now from your skill sets,

but you also have the opportunity to find opportunities

to build products that can continue

to help you earn money over time.

Let me tell you about my friend, Brian Casel.

He too was once a freelancer,

who was only making money by billing client after client.

- [Brian] I actually used to bill per project.

I come from a background as a freelance web designer

and I used to kinda build per project

and occasionally by the hour,

but either way it was still very much tied to my time.

I could only fit in a certain number of projects

and I was basically living like

project to project throughout the year.

- After doing web designer for years,

he eventually found a huge need for website and design

in the restaurant and food truck space.

Then after getting tired of working

with client after client, he decided to turn

his service base business into a productized business.

- [Brian] I kind of wanted to move away from that

and get into a more standardized, predictable service,

and essentially a productized service

that just does one thing extremely well,

solves one problem exceptionally well,

and then it's really designed for one particular client.

And that just removes that whole discovery negotiation

from the table so that I can just focus

on providing a great service and kind of leave it at that.

- So what he did was remove all that individual client work

and then create actual templates and products

that would serve that market.

They would pick the product, he would serve it to them.

Either by just choosing it and having it already available

or having his team, other human beings,

actually create those things for those clients.

You can catch more of Brian in his interview on Session 158

of the Smart Passive Income podcast

which I will link to you in the description below.

All active businesses can be shifted

and turned into a more passive business

by either having products that are already made,

by having software do a lot of legwork for you,

or even other human beings do that work too.

Now let me tell you about how I made

my first passive income online back in 2008

with business model number two.

The A.A. Model stands for Alcoholics Anonymous,

Anti Aircraft, Alumni Association, Acronym Abuse.

Just kidding.

Sorry, I get a little carried away sometimes.

It actually stands for Audience and Advertising Model.

It's one of the most used forms

of building passive income online,

however, it does come with a fair amount of warnings

which I will share with you in just a minute.

If you're a YouTuber making money through AdSense,

then you are following the A.A. Model

because you're building an audience

and then generating an income through your viewership.

If you're a blogger and you're getting a lot of traffic

to your website and you are making money

through advertising and or sponsorships,

well then you're also following the A.A. Model.

A podcast, with sponsorships, A.A. Model.

You get the idea, right?

You have this audience, you have these advertisers

who want to get in front of that audience

and you marry the two and you get paid for it.

When I started building my architectural related business

back in 2008 online, my first dollar

was actually made through advertising.

I'd spent months building credibility in this space

and actually getting traffic to my website

and then I through an ad

on my website one day and I made $1.18.

I mean sure, I can sure that underneath my couch cushion,

but that wasn't the point.

The point was the fact that I actually was able

to build something online, put an ad,

and actually make money without me having to do anything.

Although of course, it took several months to create that,

but point being, it was possible.

It motivated me to move forward.

And eventually, I put more ads on the site.

My traffic started to grow and then I was earning

anywhere between $30 and $50 a day

just through advertising alone.

Now here's the funny thing.

I built a completely brand new website,

I got even more traffic to that one than my previous one.

I put ads on it and I didn't even make more than $50

after six months of advertising.

And that's one of the downsides of the A.A. Model.

Ads are not super predictable,

especially auto-generated ones

like ones who Google AdSense and such.

Secondly, although I've done advertising

and sponsorships in the past

and have made hundreds and thousands of dollars doing so,

the truth is, that it takes a lot of time

for this business model to actually start

to generate an income for you

because you need to build that audience first

and it takes time to build an audience.

And more than that, what happens when you build

this audience that are following on a platform

that ends up changing their algorithm

or how often you actually get seen

in front of this audience that you've built.

Super stressful for a lot of people

which is why I always recommend building an email list.

In order to build an audience, you need a platform,

you need to have something worth following.

Something worth sharing and valuable to others

and that of course, takes time.

Now that's not to say that you can't build a huge audience

in a very short period of time.

A lot of people have become quite famous

in a short time period.

(laughing)

As often as we hear about those stories,

we also don't hear about the stories,

the millions of people who are struggling every single day

just to get a few more fans and followers.

But the cool thing is, you don't need a huge audience

in order to generate passive income and make money online.

That's why if I had the choice,

I'd actually go with the E.P. Model.

The E.P. Model stands for the Expert to Product Model.

Now don't let the term expert scare you away

because it's probably not what you think.

Most people think an expert is somebody

who is a master at something.

Somebody with a special degree or special training.

Somebody who has put in those 10,000 hours

who is just great.

That's not the kind of expert I'm talking about.

I'm talking about the fact that you can be an expert

in the eyes of somebody else

just by knowing a little bit more than they do.

And guess what, you have experiences, you have ideas,

you have opinions that are all unique to you.

Your goal is to become just expert enough to earn the trust

from others so that can want to learn even more from you.

So quick story, remember that $1.18

I found in the couch among other things?

Well, even when that increased to $30 to $50 a day,

it still wasn't enough to live off of.

So I looked for other options.

In August of 2008 after a few people starting to know I was

and how I was helping them pass this exam on my blog,

I wrote an e-book that I sold for $19.95.

It included all the information I knew about how

to pass this exam and I just sold it simply from my blog.

On October 2nd, 2008 when I finally put that book online,

I sold my first copy which was an amazing feeling.

And then fast forward through all of October of 2008,

I ended up making $7,126.91 just from e-book sales alone.

The craziest part about all this is that I would wake up

in the morning and there would be more money

in my bank account because people bought my book overnight.

When you think about it an online store that sales something

that's digital is something that is open 24 hours a day,

seven days a week, 365 days a year.

In using tools and software and systems, you can automate

the delivery process so that you literally don't have

to do anything to serve that audience.

Now in the description below,

I'll put some of the tools that I was using

and also some more articles about that story

about how all that happened.

But let's continue, what's important to realize here though

is that with this exam that I was teaching people about,

I didn't get a perfect score.

In fact, I didn't even get close to a perfect score.

I passed, yes, but I also knew a lot about this exam.

Way more than somebody who was just diving

into the studying of this.

And it was because that,

because I was just a few steps ahead of them,

they trusted me to help them with that information.

I provided a lot of great, free value

to help them along the way.

I engaged in conversations in the comments section

and on forums to get known.

Most of all, I just really cared about those people

because I struggled big time with that exam

and I was helping people not do the same.

Here's the truth, guys.

A successful business is something

that successfully solves a problem.

You make more money by two ways.

One, solving more people's problems.

Or number two, solving bigger problems.

Now let's take this one step further.

The cool thing about this E.P. Model,

the Expert to Product Model,

is that sometimes these products don't have to be yours.

You can actually generate income through the recommendation

of other people or other companies products.

This is something called Affiliate Marketing.

It's how I've made actually most of my money

since starting in 2008.

First time I did this was way back with the same website,

the architecture exam website.

I connected with a company that also sold practice exams

and I got paid $22 for every person

who I sold one of those things.

And over the course of the years since then,

I've generated over $250,000 simply

by recommending that product alone.

Again, a product that was not mine,

but it was still helpful to my audience.

This was all done with just thousands of visitors a month,

not millions or hundreds of thousands, just a few thousand.

So, how do you get started with the E.P. Model?

Well first, you have to be an expert in the eyes

of those who you are looking to serve.

And remember, you do not need all

those qualifications and credibility.

Actually, some people gain expertise and credibility

through just sharing their experience

learning something too.

Which is what I've done on SmartPassiveIncome.com

and many other people in the personal finance base

or in fitness.

You think about it, they're talking about their journey.

They are building trust and authority

through sharing their experiences

and you can do the same thing too.

Another great way to get started is to actually

in an area of interest that you have,

go out and start talking to people.

And asking them questions like,

what are struggling with right now?

What are your biggest pains?

What's something that you wish existed, that did not?

And that'll give you some ideas about where to start

and what positions you might be able to take.

Remember, a successful business solves people's problems.

And at first, you're gonna have to do the work.

You're gonna have to do the legwork,

put in the time, put in the hours.

But of course, it's about building something now

so you can reap the benefits later.

Because using software, using tools, using automation,

using other people that you hire,

you can actually turn this business

that helps solve people's problems to something

that can be automated for you.

So you can generate passive income too.

For more info about passive income,

make sure you visit SmartPassiveIncome.com

or subscribe to the Smart Passive Income podcast

which would be really cool.

And if you like this video,

make sure you subscribe right now

and click on that notification bell

so that you get notice when new videos go live to you.

Now quick question for you to answer below

in the comments section before you leave and that is this.

Which of those business models makes the most sense for you?

And if you implement that business model

and earn an addition, let's just say, $500 a month.

What could an extra $500 a month,

generated passively, do for you?

Remember, it doesn't happen overnight, it takes work.

Hopefully this'll give you a great head start.

Make sure to check out SmartPassiveIncome.com

for even more info about how to do it all.

So, thanks again, appreciate you

and look forward to serving you in the next video.

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