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What is the best way to generate passive income?

There are different ways to generate passive income, such as the rental of houses, apartments or commercial premises, the composition of music or songs, the writing and publication of successful books, obtaining royalties for the use of own patents, etc.

If in your current situation you do not have enough capital to acquire real estate or you do not have the talent to compose music, write or invent something, do not worry because if you have been practicing a profession for years, within a company or independently or you are an expert on some subject, be it a trade or a hobby, then it is very possible that you have knowledge and experiences to share through the internet, and it is probable that there are hundreds or thousands of people interested in what you know and who are willing to pay for it. For a person like you, selling, through the internet, your knowledge is the best way to generate passive income.

The moment is now

We live the Knowledge Economy. Knowledge is currently the most successful product being marketed on the planet. Corporations of the most recognized and vigorous in the market, such as Google, Amazon, Facebook, Uber, Airbnb, Waze sell knowledge and information that serves billions of people in the world, obtaining income from the most important globally, without large plants, factories, real estate, or massive workforce, because the asset they sell is knowledge and the sales channel is the internet.

One very relevant factor is that all these companies operate without borders, that is, their scope is practically global, and they are selling and operating with people from all countries.

These same elements: a knowledge-based product or service; its global reach and use of the internet as a channel for marketing, sales and delivery of its service are applied on a personal scale, in the marketing of knowledge and personal experience through the internet.

Take a knowledge inventory to share

If the knowledge you have seems useful or interesting to other people, you are probably wondering, where do I start?

A first step to start is to take an inventory of your specific knowledge of a professional or work order or of that knowledge derived from the practice of a hobby or a physical or sports discipline that you like a lot and that you practice and know so much about. Some examples:

Professional knowledge

Financial Area, Legal and Tax Issues, Audit, Sales, Building Maintenance, Construction, Public Relations, Mathematics, Organizational Development, Literature, Language Teaching, Excel Powerpoint, etc.

Hobies     

Cat or dog care, Coin, Stamps or records collector, Wine tasting, Cooking, Baking, Embroidery, Painting, Storytelling, Joke telling, Sports Anecdotes, Did you know that… etc.

Practice

Karate, Yoga, Zumba, Self defense, running, walking, Swimming, Golf, Tennis, Squash, Cycling, Meditation, Taichi, Acupuncture, Singing, Playing an instrument, etc.

Select from the topics of knowledge, hobby or practice, those that you like and are most passionate about to expose, write and advise other people interested in them, and that doing it is an activity that you enjoy and that allows you to nurture your clients when request it.

The path is not easy, but it’s worth it

When you take the first step, the important thing is not the progress but the direction. The awareness that you have knowledge and experiences that can be useful, and the decision to share it with other people, is the first step in the right direction, if you want to generate passive income.

After you have selected the knowledge you want to share and have an idea of ​​the general way to wrap it for sale, then you start a journey with different stages such as identifying the target customer, sizing the market niche, making the product, marketing, sale, collection, delivery, customer follow-up and loyalty.

This tour can be intimidating, if it is the first time that you use the internet for a sales purpose, but it is a necessary learning and it can be an enormously enriching tour. The internet is the way today. The faster you get to know it, go through it and make it a natural resource for your professional activity, the sooner you will see the results and avoid isolating yourself and falling behind in this race.

Keep in mind that, if you have been employed for many years or provide your services in person independently, this is a radical but essential change to reduce vulnerability derived from lack of work or customers and to ride the technological wave, instead of being rolled over by it.

On this tour, you are not alone

The Internet is like Aladdin’s lamp, it has the genius of millions of creators and entrepreneurs and if you know how to ask it, it will give you what you need in unimaginable variety and quantity. 

Everything you need to build your product, to market it, sell it and make it grow, is on the internet. Just ask Google “how to sell a virtual course” and you will immediately find 10 organizations offering to take you step by step throughout the process until the sale is complete.

So I can assure you that you are not alone in this journey and that there are hundreds of people whose service is to guide and facilitate the journey for people like you, who decide to share their knowledge through this wonderful tool.

Conclusion

If you have a knowledge, experience, skill or activity that you are passionate about, as a result of your professional practice or your personal practice, you have a valuable asset, capable of being traded for passive income. You are in the knowledge economy.

There are different formats and modalities to share your knowledge with many people, allowing you to select the most appropriate one to facilitate access and use by your clients.

If the use of the internet for business purposes has not been your field, you may find it difficult to venture into online sales, however, it is a step that must be taken now if you do not want to fall behind, taking into account that you are not only in this tour, and that you will find numerous advisers on the internet to take you step by step to monetize your knowledge.

The possibilities are present, the opportunity is now and the decision is yours.

Your comments and questions are welcome and I will be happy to attend them.

mdragon

6 Comments

  1. This article is so encouraging. I left my nine to five job and wondered what I would do to earn a reasonable income. I see your point about using the skills and the experience you already have. Knowledge really can work for me. In addition I have always played my keyboards in a band and have been active as a musician since leaving school. I am now trying to find ways that I can use these skills to generate some income without physically going on tour for long periods. I am tired of the hassle and my family is also tired of it. I am going to do some more research to set myself up for passive income. Thank you for your tips.

    • Thank you for your comments JJ, 

      I am glad that you have found in my post support for your decision to reduce or avoid face-to-face work and find ways to share your knowledge online. I am sure you can achieve a good result.

  2. Knowledge is the powerhouse online. Often we think that what we know is unimportant and everyone knows it.  Not so true.  Experience is added to knowledge and your knowledge is individual to you.  Your views and ideas for successfully doing things can help someone with their lives.

    Yes, there is always a market for how to’s with technology, but what about sharing how you learned to color your own hair?  How you learned how much easier having a schedule is for keeping your house organized, clean and orderly.  How many of us would love to see the questions of enjoying living a vegetarian lifestyle in a small country town?  With only 1 grocery store, and COVID19 doing away with variety, quality and quantity?  There are so many holes in my knowledge base that I know someone out there has the answers to. 

    Actually, I have always been in a small town  with one grocery store.  I do know how to do these things and have already started my plan for some survival tactics for my daughters as per their request. Will it result in a site to help others?  Do you think there are some earning oppurtunities down in the subject?  Thanks for the food for thought.  I may have to did out the handbook about using vinegar!

    • Sami, thank you very much for your comments, Previous generations in a situation like yours would have had limited options to generate income for themselves and their children. Today the internet expands our opportunities in an unlimited way, it is only necessary to identify a knowledge or experience to share, find the market niche for that knowledge and rely on people dedicated to providing technical support to turn it into a product and sell it. I am sure you have experiences and knowledge of great interest to a good number of people. Go Ahead!

  3. This is a nice reinforcing piece so thanks for sharing.

    I’ve not long taken the step into a wed-based business myself so am still very much in the learning phase. One thing that remains in the black of my mind though is that if we step into some sort of advisory capacity and then others rely on our advise or suggestions and perhaps get injured or suffer a financial loss because of that advice, then we may be putting our business at risk. Financial advice, health supplement suggestions, self help guidance etc. Its a tough one but it does play on my mind. I’d welcome your thoughts on this? Thanks – Jason.

    • i Jason, Thanks for your comment. 

      In relation to your doubts to give a recommendation or advice for the risk of being wrong, I want to tell you that every action has risk. There are no perfect specialists. Giving a recommendation on a topic does not imply that it is perfect, you give the elements that support it and it is up to the person who receives it, to evaluate and decide. Surely, if those who follow your recommendation get a good result, their trust in you will be born, they will recommend you and will look for you again and if not, then it will have the opposite effect. So it is important to act responsibly and knowledgeably when giving advice or recommending a product or service.

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