Creating Passive Income Streams Through Digital Skills
Have you ever wondered how you can start an online business?
The internet is a wilderness of opportunity. People all over the world, from all walks of life have launched and grown widly profitable online businesses, starting from scratch. People tend to have misconceptions when it comes to online businesses because they just don’t know how things work. They assume that it takes huge startup capital to get started. They believe you need to hire staff to manage operations and they think it’ll take a few years to turn a profit.
These are typical assumptions people make because this is what it takes to start a traditional business like opening up a bakery or starting a franchise.
Some interesting figures on online business:
- The industry of E-commerce generates $1.2 million dollars every second.
- 80% of Americans with internet access have purchased something online in the last month.
- 67% of Millennials shop online rather than in-store.
These numbers are pretty crazy, right? The one that got me was that 80% of Americans with internet access (which is most of America) have bought something online in the past month alone. The internet is truly changing how we start, run and grow businesses. We’re able to reach people in ways that we never could just twenty years ago.
What is passive income?
Passive income are two of the sweetest words in the English dictionary, when put together. It’s simply income that you earn without being actively involved. So it’s a way of making money work for you, rather than you working for money.
Passive income is superior to any other form of income because it provides time freedom. Most people trade their time for money but passive income isn’t reliant on your labour to produce the goods. Instead, it works through established systems and processes than continue to run without supervision. The internet is full of passive income ideas that you can exploit to build incredible businesses without having to fork out much money at the start.
The opportunities for building passive income businesses have never been so great. With the dawn of the internet giving to powerful new business models such as affiliate marketing and e-commerce, there’s no excuse for you to not to start your own business on the side!
If you’re looking for passive income ideas, you’re only a google search away from finding dozens of them!
How does it work?
There are two main ways of creating passive income streams:
Starting a business is one of the best ways to build your first few streams of income as many online businesses are low-cost to start and have the potential for high returns over the medium to long-term. The caveat with an online business is that it WILL require a lot of work at the start! It’s definitely not passive when you first start things up but once you put the work in and setup your systems that drive traffic for you, the rest is income straight into your account.
Investing is another great way to earn passive income. Investing your money can also be totally hands-0ff so you put your money aside and watch your asset grow as well as enjoy the returns. The downside to investing is that it takes a fair amount of startup capital to receive any worthwhile returns.
Traditional investments don’t tend to provide great returns. If you invest in stocks, bonds or REIT’s, you can expect a maximum annual return of just 12%. Another way of investing your money is to buy established online businesses. These businesses are already making money and can be bought at auction for a relatively small fee. We’ve personally seen online businesses that make up to $3000 a month sell for less than $30,000.
Think about this, you’ll make your money back in less than a year and after that, it’s pure profit.
How digital skills can skyrocket your prospects
So where do digital skills fit into all this?
Starting a business is difficult. We’ve seen an incredible rise in tools, resources and technology that simplifies things for people. The barrier has never been so low for people to get started in business. That said, being digitally literate puts you in a great position to start your own online business and build your passive income streams. If you know how to build a website and understand the fundamentals of digital marketing, you’ve got amassive advantage over everyone else.
Mastering digital skills has never been more lucrative than it is now.
In the past, technical hurdles stopped people for progressing online. But in today’s world we can build beautiful landing pages in minutes, setup online store’s in one day and integrate payments systems and products seamlessy, at the touch of a button.
It has truly never been easier to get started online, invest and build those streams of income.
Skepticism is Rife
Many people don’t realise the opportunities they have in front of them. They assume everything is a scam and that people are just out there to get them. This collective mindset presents incredible opportunities for people that are open-minded. The ability to objectively asses something without any innate biases is a very powerful thing. And many online business models are full of untapped opportunities because most people are just so skeptical about everything.
Being overly skeptical defeats the entire point of the thing in the first place. Skepticism is supposed to help stop you from diving head-first into things that will waste your time. For a lot of people though, it stops them from pursuing incredible opportunities.
Don’t let that be you!