🤠 How To Create Complicated Passive Income Sources

Day 8:  Wow!   He's so Complicated! 

by Edward Smith

13 Jul 2020

Complicated Passive Income

Besides easy passive income sources like investments, other forms of passive income are more complicated. If you don't know what I'm talking about, check out my other article 🤠 How To Create Easy Passive Income and Make Your Money Work Hard For You.

Many of these types require investing in a new thing that hasn't existed before, or patenting something before your competitor does. The key with this stuff is you need to attract a customer base and people should be buying your thing over and over again.

For instance, when you create art, art does not sell itself because you make it. It is only when people pay to access your art, that your art becomes monetized and creates income. This income is tied to distribution.

The easier it is for you to copy and sell a thing, the easier it is to create income over a longer period of time. To make that work though, the thing has to remain popular. Music is a great example. Books work the same way. 

  

 

Real Estate is Another Form of Passive Income

Real Estate is by far one of the most expensive, but popular forms of passive income. It's weird to think of property like that, because property is impermanent, suffers fatigue, and can cost a lot to keep in good condition. Real estate though, when operated as a rental property, is categorized as passive income.

The rent income produced each month by rental property is reoccurring and is yours to keep. The key to making this work though can be complicated. You need to keep your renters happy, you need to keep your property in good condition, and you need to make more off of rent then you pay out in operating expenses. Renting is a business. Like all businesses, it can be risky and expensive to run.

What About Affiliate Marketing?

If you read my other article entitled: 🤠 How To Grow Gardens, Fail at Gardening, and Then Use What You Learn To Grow a Better More Glorious Garden Filled With Possibility, you will remember a section where I mentioned how I attempted to utilize Affiliate Marketing while producing YouTube Videos.

Here is a quick recap. Affiliate marketing becomes passive income when people click your links and buy the things that you showcase. It's like a product placement, except in this situation you stop your entire show to bring attention to the product and endorse it.

There are a number of affiliate marketing programs in existence. They all share a common premise. Your content stays out in the internet for years. Affiliate marketing embeds a link that if pressed takes you to a product's store page.

If that product is purchased you are paid a finder's fee for bringing in the customer. In theory, affiliate marketing can continue paying you out money forever. You just need to ensure your content is interesting, and that those watching want to buy what you're showing them.

My Personal Experience With Affiliate Marketing

When I was making videos, I attempted to use Amazon Associates: https://affiliate-program.amazon.com/home. I didn't know how any of it worked, so I fell on my face. I never made a dime, but the experience was interesting.


I found out, to make affiliate marketing work, it usually helps to have a really large audience of loyal fans before you begin. Gaining a following of that size can take years. By the time you reach this point, your fan base should be very large and they should be excited about what you have to say. Ideally they should want to support your content, and affiliate marketing just becomes a way for them to do that.


If you lack a strong fan base, affiliate marketing is probably not for you. Give it a try though, because you never know, it might work. Just don't rely on it as your big score.

Should I Pursue Complex Passive Income?

In this article, I discussed the topic of complicated passive income and I talked about how my experience with a non-traditional passive income stream went.

Over the years, I've looked into a number of passive income ideas. I did this even when I was working. Overall, I find investing to be the easiest option currently, and it's the one that I've had the most success with. Some of the other options like real estate are very daunting to me, because the barrier of entry is very expensive and I don't have the money or time to manage it like I would need to.

I encourage everyone to look at passive income as an option towards building future wealth. I also encourage you to consider passive income as an idea if you're trying to offset your expenses and stabilize your household's future income.

Conclusion

The whole point here is you have an option. You can keep working at your job at the same pay, hoping for things to improve, or you can take action and train your money to work for you behind the scenes in secret. If you do what it takes, you will improve yourself without needing your job to do the entire thing for you. Your boss isn't responsible for your future self, you are.

Build a passive income army and order that army to carry some of that future burden for you. Hup Two Three Four! Carry my burden maggots! That's an Order! Hoo-rah! Company Harch! Maggots Move Out!   

Next time, I'll be talking about kids and leaving a legacy of honor.   

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