Passive Income Ideas: 3 WAYS I've TRIED plus a big FAILURE #Best Education Page #Online Earning

hey what's up its Doug Cummington here

we're gonna talk about three passive

income sources that I've experimented

with myself actually I realized two of

them were failures not just one

basically I've worked through several

different passive income ideas a lot of

people will just talk about the ideas

and habit right um they can't speak from

firsthand experience and if they are

talking about it sometimes they will

talk about their failures and then tell

you how to do it they haven't like

successfully implemented something

listen ed the best advice first off I'll

tell you about like the biggest failure

this is a real estate investment and

basically I graduated from college in

2003 I got a job I lived in a couple

apartments rental stuff I was working at

a management consulting firm traveled a

lot blah blah blah none of my friends

were settling down buying homes that

time they were getting married and they

were basically settling debt I was like

hey I should buy a house I you know I've

been saving up some money I have a good

job and it looked stable I should buy a

house so I'm sure everyone remembers in

2005 to 2006 the real estate market was

depending on where you were located you

were you were sort of still growing the

values were quite high and that is

around the time that I bought my house

so I bought my place in December of 2005

so about a year year and a half after I

got my job which i think is probably

typical for you know someone in my in

that position I had a job for a little

while I was able to save some people

were settling down it's like the normal

narrative to buy a house if you could

afford it at that time it didn't even

matter if you could afford it or not in

fact I think I got approved for

something like six times my annual

income I had some like rolling credit

card debt of maybe like a couple

thousand I would pay it off and

basically the reason why I invested in

real estate you'll see how this like

escalated my parents bought their first

home

and you know I was like 2 or something

like that and I was like 1 or 2 they

moved out after 5 or 6 years it turned

into a rental home and it worked out

great for them in fact they did that

like twice and it worked out great so

they had a rental property in fact my

parents still owned the first home that

they purchased and they still rent it

out of course it was it's a huge

difference it was like 25 years later

and the market was totally different

basically I bought a place that seemed

fine it was a good location it was sort

of a an area that was turning it and by

the way this was in Atlanta so it was

one of the areas it was it was hit sort

of hard I know different you know

California Florida probably a little bit

worse but Elena it was hit pretty well

in 2008 I'll fast forward and say my

plan was to buy the house live there for

a few years fix it up a bit

move out probably you know get married

and that sort of you know again that

sort of narrative the problem was the

mortgage was too expensive for like the

home and again we all know that the home

prices crashed in about 2008 and I was

upside down on my mortgage by quite a

bit so I bought the place and I could

just throw real numbers here because it

doesn't really matter I bought the place

for like 185 and for a year the you know

the value and the appraisal was in the

like low 200s so like it worked out at

first but by the time I got married and

moved out of there the value of the home

was probably like a hundred and forty or

so and by the time by the time I was

ready to rent it out again it was a

rental property so or I would intended

it to be a rental property so by the

time I moved out I wasn't able to cover

the mortgage of which I had to I

financed like 99 percent of it or

something like that I wasn't able to

cover the mortgage with the amount that

I could charge for rent even though I

kept it occupied the whole time I went

on for like two to three years trying to

make it work and you know this is

classic like sunk cost fallacy

situation and of course with a mortgage

you have to think about the different

options that you may have a whole

different story for some other day which

I can get into more but I could tell you

eventually it didn't work out it was a

failing preposition and I don't have the

home anymore yeah it was just a bad deal

so I mean I didn't limp along it

couldn't afford to pay the two to three

hundred dollars per month that I wasn't

covering from the Reds so I could cover

that and it was basically like throwing

away two to three hundred dollars a

month and by the way you get a rental

home or any kind of investment property

the part that you people sort of neglect

to tell you is there's gonna be

maintenance cost right it's hard to

estimate that but there's definitely

going to be maintenance cost

I had the a/c go out I had a leaky roof

at some point that I had to you know

take care of there were a few other

things but again normal maintenance

painting leaky faucet there are a number

of things that come up and just about

everything costs you know a hundred

bucks or more something big like an AC

issue like when the air conditioner goes

out in Atlanta you have to kind of take

care of it and that's multiple thousands

of dollars so that's the thing that you

you know you gotta consider so the

investment property stuff didn't work

out for me a lot of it was you know

inexperienced I was young buying a house

to live in to turn into a rental

property those don't always match up so

obviously a rental property can be very

profitable can be a great investment you

can fix it up rent it out and then sell

it some years later and you know it just

works out great but you have to have

like the right inputs you have to buy

you know the right property you have to

buy the right stuff before it to work

out if I could have put say 40% down on

the house and had a much smaller

mortgage well that changes the whole

equation right there I mean that's

completely different than you know any

other scenario because at that point the

payments each month would have been you

know a fraction probably

half to 75% of what I was paying and

then the math kind of works out and by

the way you probably need to make more

each month than your mortgage like as a

baseline because of the maintenance cost

that you're gonna have to deal with just

remember that okay moving on to number

two so my investment property stuff was

a total failure I tried to turn my

primary home to a rental property in the

you know worst time in the last hundred

years to buy a home so that just didn't

work out for me number two again this is

a failure this is around digital

marketing info products affiliate sales

and that sort of thing now it's a

specific model that I'm going to talk

about and in fact I drew a picture and

I'm going to show you in a second so

around the time I was getting started

with online marketing digital marketing

in general I came across digital

marketer com so great group of people

very smart they basically lay out their

plans for what they did in different

markets to you know market in a digital

way when you see the concepts it's

pretty straightforward in actually I

recommend you check it out it's a great

thing to understand it's all built

around email marketing and they lay it

out a little more eloquently but this is

the main idea again this is another

failure point so the main idea with

digital marketer and they're sort of I

guess the plane that they lay out it's

not necessarily like original it's it's

been used multiple times in different

industries but essentially you get cold

traffic through ads so you could do you

know any kind of ads it doesn't matter a

lot of times people work with you know

Facebook or Instagram stuff like that

and then you get them on the email list

so you have to use some sort of a lead

magnet or some sort of content upgrade

something free to entice them digital

marketer in fact uses like real physical

products so if you check out one of

their sites called survival life they

use you know multiple

small little items are from China got

one or two just to see what it was like

they're very cheap they're low quality

but they just have you pay for shipping

that cost like four bucks and you get

like a pocket back for something so you

get on the email list through these ads

so they'll show you and had you sign up

for the email list you get something

good and then they have a tripwire the

tripwire is a another like you know it's

a low-cost item under 20 bucks usually

and a lot of times it could be like

seven to twenty dollars so it's in that

range a little bit of investment the

idea is once you paid money to someone

like you're sort of you're more likely

to purchase from them again even if it's

a very small item so they called it a

tripwire the core offer is where you

have and I'm going along the blue lines

here the core offer is something more

expensive usually it's between you know

forty seven and five hundred dollars

depending on what you're selling the

value of it in the market in the core

offer is where a lot of the money is

made then after the core offer and these

are immediate so you sign up for the

email list and then they're like hey do

you want to you know get this you know

ebook for four dollars you can buy it

here if you go for that they'll say hey

do you want the core offer - that's a

hundred dollars and then after that

they'll trying to sell you something

else like some maybe a higher-end option

here or something that complements it so

if it's an like if the core sorry if the

tripwire is like in an e-book maybe they

try and sell you some physical books

here the core offer like a set of I'm

going to make this really dated like a

set of encyclopedias for example it's a

bad example but we'll just say

encyclopedias and then the upsells maybe

they sell you like video versions of

material in the the encyclopedias so all

of a sudden you have the potential for

someone to come in on and add sign up

for the email list in a very small

percentage will actually go ahead and

buy everything on day one the hope is

that those people that's very small

percentage that purchases will pay for

the ads

100% and then over time in the email

list you'll be able to build rapport

with the other people that didn't buy on

day one and then sell additional things

it's a great motto it obviously works

really well the digital marketer crude

they actually used this motto for the

digital marketer course of which I paid

you know 40 50 bucks a month for like 18

months learning the material so concept

is easy right I think people get it

putting it in practice it's harder right

I mean if it's your first time around

like it was for me there's a lot of

issues like most of the time you don't

picture projections so I would put in

some estimates for what I thought

could happen as far as conversions and

it never worked out it was never even

close so I was using sort of like

benchmark estimates and it was way off

and the problem is you have to pay for

the ABS upfront and if you don't have a

budget and you don't have sort of the

experience to understand what it takes

what to tweak it's really difficult to

make it work so it can obviously work

and I'm pretty sure the areas that I was

trying to to use this model they could

have worked really well but it would

take time you know tweaking the ads I'm

not a you know an expert in paid traffic

so it'd take some time to make that work

and then after that you have to develop

the products you have to deal with the

customer service there's a lot of pieces

to the puzzle here that they leave out

which is totally ok I mean to get

someone started you have to you know

give them something approachable so I

actually learned a ton about you know

ads in general and Facebook Ads

specifically and then email marketing as

well so that model didn't work for me

exactly but it was a great learning

experience it I tried it in two

different areas one in you know a

digital marketing area so if you've been

following me for like three or more

years you probably remember I had some

you know products that were under $10 I

had some stuff that was a little more

expensive and then I had like a bigger

video of course all of that is retired

you can't get it anymore it's all

out-of-date I tried that model and it

just didn't work out it was a big it was

a big failure but from the passive

income standpoint once you hone that

down

once you were fine you're you know your

offer the ads and so on it would just be

a matter of you know finding new

audiences to target and then potentially

developing like multiple core offers and

different upsells and once you have a

set of customers you can sell them you

know different material if you have

loyal customers they will buy more stuff

from you I know personally I've

purchased a couple big courses actually

I bought one multiple from digital

marketer one was their ongoing digital

marketer lab I was a member there for a

long time and then I purchased what they

called funnel blueprint which was sort

of a you know a playbook for designing a

funnel and just more in-depth material

on the topic that I just showed you here

next I'll tell you about one that worked

for me so this is the third as you

probably imagine this is Amazon

affiliate sites and there's a lot of

different sort of niche site models you

could build a site an Adsense you could

sell other affiliate products outside of

Amazon I did really well on the Amazon

platform I understand the content that

needs to be you know created and I

understand how to get traffic and then

how to convert the traffic over to

Amazon this worked well for me and

that's the one where you know I've stuck

with it in the point that I want to make

here I could going deeper with Amazon

affiliate stuff but I think a lot of

people are quite familiar but I could

describe it really quick essentially you

could have a website that or you know

any sort of platform you can have a

website you have an email list you can

have a YouTube channel you can have

social media presence and you can refer

people over to Amazon to specific

products or just a need to Amazon in

general if they make a purchase using

your affiliate link then you get a small

commissioned between one and ten percent

it sounds like a small percentage but

you probably know that a lot of people

buy stuff like Amazon like millions and

millions and people buy stuff on Amazon

all the time my greatest success is

selling a site for two hundred thirty

five thousand just a couple months ago

and it was just a simple Amazon

affiliate site a few hundred pages it

was like two and a half years old when I

sold it and it works out well the main

point that I want to make here is there

are many ways to you know create passive

income most of the time you have to have

something up front you either have to

put in time or capital so you have to

put in some sort of high value item up

front there's no way that you can create

a passive income source immediately and

start making money with the real estate

you obviously have to have like some

capital upfront or obviously I know you

can leverage you know other value and

get a mortgage you can get loans and all

that stuff but you do almost 100% of the

time have to have some kind of

collateral for that whether it's a you

know a job so that they know that you

could pay the mortgage back you have to

have some kind of capital upfront to

make the real estate work for the

digital marketer motto here where you're

running ads and selling you know

products whether they're your own or

affiliate products or whatever you have

to have some capital upfront number one

to run the ads and then after that you

actually need to have experience in you

know running ads optimizing ads

developing products or I guess working

with other affiliates because you don't

actually have to sell in these areas

here you don't actually have to sell

your own products you can sell other

people's products but of course you're

probably not getting paid as much and

once people buy other folks products

they're probably gonna sell them other

stuff so at that point you you don't

necessarily have a strong of a bond with

your email most

and for the Amazon affiliate site I

believe that is probably the one of the

lowest cost ways to get started you

probably can get started for you know

under 200 bucks you have to pay for

hosting probably a premium theme and a

couple odd odds and ends like like a

keyword research tool for a couple

months but you have to put time in right

so you can get started

cheaply but you have to put time in and

most of the time it's gonna take you

know four to six months to make your

first like to get to your first hundred

dollar month can people do it in a

shorter timeframe yeah you can do any

shorter timeframe if everything goes

right but if it's your first time around

it could take time and I can tell you

you know some of my peers that are doing

really well they're making tens of

thousands per month they get site

started the same way that we do it takes

them four to six months to make the

first hundred whether they're using

private blog networks and grey hat

techniques or if they're doing white hat

outreach it takes time no matter what

and you know once a science starts

getting traction then it can escalate

really quickly I did have a site last

year is making about a hundred and

twenty sixteen it was making about a

hundred dollars a month in January of

2016 and by December it was make it made

fourteen thousand eight hundred and

nineteen dollars I looked at that stat

recently so I just happen to know that

that's how much it was then after that

there is maintenance right so for an

Amazon affiliate site the maintenance

could be very minimal the site that I

referenced before this sold for two

hundred thirty five thousand it really

only took like an hour a week or so even

you know people are familiar with the

story even when Rob and I were working

pretty hard on the site to convert it

from gray hat to white hat we actually

were still only putting in like two

three hours a week max I mean it was

quite minimal so okay those are the

three sources and I'm probably going to

do more passive income stuff because

it's a topic I haven't touched on much

it's one level up from

you know what I normally talk about it

which is very tactical Amazon affiliate

stuff so I'll probably do a little bit

of content on this passive income idea

and just you know other related ideas

okay cool thanks everyone for hopping on

today just have a great day

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