I kicked off the first month of the year with good results for passive income. While my investments keep earning me passive income, my thoughts now turn to other hands-off ideas and business ideas to generate more passive income.
Let’s recap a few things before we begin.
Generating Passive Income doesn’t mean that you don’t have to do any work. Passive Income != Passive Work. Often, I found that there’s a lot of work involved at the beginning to create something that will generate you that passive income you seek in the future. For me, it was my RapidMiner Tutorials that still generate traffic and interest to this day!
I bring this up because of two ‘startup’ type companies that I’ve seen emerge during my time in the blogosphere. Both worked hard in the beginning but one is on the passive income journey.
The first one is StockTwits. I remember when Soren first created the ‘$’ cashtag on Twitter as a way to harvest what stocks people were posting about. Howard found out about it and StockTwits was born. I don’t know all the inner workings of why Soren left StockTwits but he went off to be Chief Data Scientist at another startup and StockTwits appears to be all run by Howard and his team.
StockTwits is run by a small lean dev team that managed to move a lot of people off Twitter and into their ecosystem. While it’s free to create an account and join the daily streams, my guess is they use all that sentiment data to build services and products in the background. After all, why go through all this trouble if you can’t make money at it?
While on the surface StockTwits appears to be low touch - at least that’s how the user feels - it has a lot of stuff going on in the backend. That requires a team of smart people, salaries, benefits, filings, etc.
A lot of activity for no noticeable income, at least to me.
Park.io, run by Mike Carson, is a darling. I remember talking with Mike many years ago when he first started flipping domains. Always looking at life through an entrepreneur’s eyes, he built his company from the ground up to help people ‘catch’ expiring domains. It’s a very simple fee structure and he makes over $1 million dollars a year. How do I know? I scrapped his recent sales for over a year and added up the sum.
Based on these two interviews, he runs his entire company by himself and only 4 hours per day. The rest of the time he spends with his growing family.
Passive Income vs Active Activity Payoff
No matter what you do in this life, you’re going to have to work and put in the effort to live. The question becomes do you want to just survive or thrive?
I shared with you the two stories above to highlight some very interesting differences and similarities.
Both are online services and the founders had to ‘hack’ together code to get them started. One founder left the emerging startup while the other kept refining his scripts.
Over time, one startup grew to have a team of people while the other has only the founder running the machine. One makes cold hard cash by providing a service and the other I’m not exactly sure how they make money.
Both require effort to run but one can be run by one person and the other is run by a team.
Which one generates passive income and which one requires a lot of activity?
It’s easy to see that Mike’s Startup is the best thing for Passive Income enthusiasts. It’s like having a money earning blog you have to first work hard to get it off the ground but once it’s up and running you have to spend time on upkeep.
Passive Income Ideas - For Introverts!
I’m a pretty introverted guy but I do have an extroverted streak in me. My daughter calls me an ambivert, someone who is professionally extroverted but personally introverted.
I like to go out but then come home to my castle with a big moat. Writing, blogging, creating content and passive investing make a ‘ton of sense’ to someone like me and it’s where I feel the most comfortable.
I know that many people are suffering from the Covid19 isolation but I’m thriving at it, I’ve never been so creative!
The ideas are flowing!
So what are some Passive Income generating ideas on my radar? I’ve come up with three main ones:
- Create an online service
- Invest in dividend and income-producing assets
- Create monetized content
The first one, create an online service is a long term goal for me. I want to create something like Park.IO but for something, I haven’t figured out yet. My first thought is to build a lead scoring web app and charge people 1 cent per row scored for their marketing leads. I could probably hack that together in a month or so.
Still, doing something like that requires me to interact with people on some level.
Don’t get me wrong, I love all my readers but I’m an introvert first and it stresses me out sometimes when I even answer your emails.
The last two, investing in dividend and income-producing assets and creating monetized content is something I’m already doing. The trick now is to optimize that and come up with new things that are valuable to my readers and where I can make passive income at.
The moral of this story is Passive Income is out there, the trick is the level of activity you need to do at the beginning and what idea you wish to move forward.
Everything depends on your personality and how you want to interact with the world. There’s a reason why people like me write, it’s to remain in the background and provide some shreds of valuable wisdom (hopefully).
Others, like Howard, like to be out front and Mike likes to run the big machine behind the curtain.
It always comes down to you.
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