How To Make Money On-Line
Before you can create a passive income machine, you need to figure out how you want to make money online. That sounds really basic, but without direction, you will go nowhere.
The P.I. Machine can handle three types of products:
Physical products usually require inventory, storage and shipping, meaning you will have to invest money and possibly more time.
Alternatives to this would be products that can be drop-shipped by the manufacturer, or by selling through Amazon, as they can handle all warehousing, shipping and distribution.
This will definitely makes things easier, but you will be forever tied to the whims of the product supplier. If they decide to raise their prices or stop making the item, it causes you headaches. You then have to go online or pay someone to make site changes. If they stop making the product, you could possibly lose a stream of income.
The same is true with warehousing and order fulfillment. You are subject to their rules, regulations and fees. If they increase your expenses, you will be stuck reacting to their changes.
You can sell services online to generate an income stream, but they aren’t really passive. Still, online coaching can be a great way to get you started fast. As you grow, you can then focus on products that will benefit your clients. Coaching combined with backend products can really enhance your income level.
The biggest sellers on the Internet are information products. When people want to know something, they type it into search engines like Google, YouTube, Yahoo or Bing. If you have a solution you can put in front of them with an appealing offer, they’ll consider you. This is where you can shine, because everyone knows something, and chances are, someone wants to know what you know. You may not believe it, and you may not feel qualified to teach, but it’s true.
My first product was a course that teaches ventriloquism. I wasn’t born knowing how to do ventriloquism, but I had a firm grasp on the subject. I’d studied the best ventriloquism courses available. I had watched a bunch of DVDs, seen countless hours of bad YouTube videos and even taken private lessons with a ventriloquist. I was also a professional performing ventriloquist, so I was completely immersed in the art. I knew where I had problems learning, and I realized there had to be a better way to teach.
My initial goal for that course was to help people learn. I didn’t give much thought to the passive income possibilities until later, and maybe that’s why it is still a success. So golden rule number one:
When you create passive income products, focus on helping people.
You've heard the old saying that you’ve got to give to receive? Or the more you give, the more you get? That’s especially true online. I believe people know when you’re just trying to make a dollar, so approach each project you develop with the goal of helping others and you stand a much better chance of success.
Let’s go back to my first course. I wasn’t born knowing how to do ventriloquism. I studied the art from multiple sources. I threw myself into it, and I understood what it took to be good.
Vocal Versatility is another mini video instruction course I created. It teaches ventriloquists and puppeteers how to create unique puppet voices. Again, this was a subject that I had to learn myself. I studied from different sources, I practiced and played with the techniques, and then I took everything I knew and learned, distilling it into some unique instruction.
The P.I. Machine is the perfect example of education resulting in a product. When I first learned about passive income products, I knew nothing about how they worked. But I jumped in with both feet. I experimented, I learned and I failed. That actually helped me learn even more. I invested in my education, and I studied a ton of passive income options available. I learned about the software needed to create online products. That combined knowledge and experience, which created the information that I share with you in this course.
Even if you don’t yet realize it, you have skill, talent and knowledge just waiting to be tapped for your first P.I. product. Some of you are saying, “I don’t!” Well, I’m here to tell you that you do. I will help you uncover this knowledge in the next chapter. But, let’s just say, for argument’s sake, that you don’t. Then I have great news: you can. You can learn anything if you put your mind to it.
Imagine if you spent the next two months reading everything you could about sewing. You watched YouTube videos on how to stitch, how to layout patterns, how to cut fabric and how to use a sewing machine. You went out and bought some fabric and created a couple of outfits. You would learn what to do when sewing and, more importantly, what to avoid doing.
Now let’s imagine you devoted two to three hours every day to sewing. Would you know how to sew after two months? I’d say there is a pretty darn good chance. If somebody asked you a question about sewing, do you think you would have the answer? I’m willing to bet you’d have a better grasp on it than I would. So to me, that would mean you are the expert who can help me with a sewing problem, and lots of “wannabe” seamstresses could benefit from what you learned in your intensive crash course. Even if you don’t have a ton to share, which you would, you could help others shorten their learning curve. That’s a valuable thing, especially if you set out to help them by following the first golden rule of passive income products.
Now I want to stress something important. When you create an information product, it must be original. When you crash course and learn the subject you want to share, don’t just copy someone else's material — become a serious student of the topic. In fact, that should be golden rule number two:
Become a serious student of your own topics.
Learn from a variety of sources, and put the information into action to determine what works for you. Otherwise you’ll just be a hack, and your passive income attempts will fail. Passive income is all about putting the time in up front so you can reap the rewards for years to come. In fact, let’s make that golden rule number three:
Be willing to put in the time now to reap the rewards later.
In the next lesson, we will talk about discovering your areas of expertise. We are going to dig down to see how much you know that you don’t even realize you know. It will be more than you think.