passive income ideas

Become an income-generating machine and passive income ideas

I have done lot of research regarding wealth creation, building system to generate passive income and investing. Among all, I found this wealth triangle to be most useful.

Wealth triangle concept is developed by multi-millionaire Dan Lok.

Wealth triangle Is divided into 3 parts:

  • High-Income skills
  • Scalable business
  • High return investment
The Wealth Triangle Graphic - Become an income-generating machine and passive income ideas
(Source)

High-Income Skill

High Income skill is a type of skill that can help you to generate more than Rs 5,00,000 per month. Here, I am not talking about high paying job or high paying profession. Early in your 20’s, spend time developing high income skill. That skill should take care of your expenses. Once you develop that skill, you will be easily able to beat normal job and stay on the path of riches.

High Income Skills Example:

Copywriting:

Copywriting means persuasion through your writing. If you have a basic writing skill you can become copywriter. Copywriters write copy. Copy is just an advertisement page that you find everyday in newspaper, different websites, hoardings. Product description in Amazon is a copy.

You will find copy everywhere, till now you were not even aware of whether you were reading a copy.

It’s all about marketing. You should have good observation skill, understand bit of psychology and basic writing skill. You can become copywriter easily.

Whenever you make any purchase by reading anything, that’s a copy.

I learnt to write copy from 3 people:

  • Dan Lok
  • Ramit Sethi
  • Neil Patel

Click here to learn copywriting from Danlok.

Digital Marketing

One of my favourite high-income skill. I have spent 2 years learning digital marketing. Digital marketing can help you earn passive income easily.

Digital marketing is a wide term. It Includes:

  • Content marketing
  • SEO
  • Social Media Marketing
  • Paid Advertising
  • Email marketing
  • Blogging

These are also ocean in itself. You can deep dive into anyone and make your career. The way people are coming online, there is a huge scope if you kick start your career in digital marketing.

High Ticket Closing

High Ticket Closing is something really interesting. Do you know how sales guy who can sell you anything?

Its just like this, but a level up. High ticket closing is selling a high-value product. This trick is used by many so-called motivational speakers to sell you their programs of Lacs of rupees.

If you are able to communicate better, if you understand your client’s pain points, you can become a high ticket closer.

Consulting

Do you have knowledge regarding a specific field?

Are you an expert at certain things?

If yes, you can provide consulting services online. There are many consultants who are earning in crores.

Let me give you a simple example,

If you become an expert at copywriting, digital marketing or high ticket closing, you can provide its consultancy and help other people to learn it and charge money for that.

That’s what Danlok, Ramit Sethi, Deepak Kanakraju, Sorav Jain, Neil Patel are doing.

Scalable business

A Scalable business is a business that can scale without a lot of infrastructures. There are businesses which require a lot of infrastructures before it can be scaled, such business blocks your capital.

I am talking about a business that can grow without a lot of infrastructures even up to 100 crores.  

Generally, such business can be scaled up online only or through creating a network. See any internet giant like ola, uber, Oyo, they don’t have an office in every city, still they have grown to billions of valuation.

High Return Investments

Once you start generating cashflow through high-income skill and scalable business, you can have a surplus to invest in high return products.

If you have proper knowledge of the business you can even fund a startup or join private equity funds or invest in stocks.

Passive income Ideas

Passive income has become a popular concept nowadays. You must have listened to people claiming like,

I earn money even while I sleep

No doubt that’s possible. But up to a certain extent.

Passive income business model can be set up by a building automation system. It’s not that you start earning passive income now and you can earn it forever. Some efforts from time to time are needed to maintain the income and system.

Remember this,

Passive income is highly scalable but return on investment is low & Active income has a high return on investment but it is not scalable.

Let me show you some example of passive income:

Blogging

A blog is an informative website that provides information regarding a specific field. There are fashion blog, financial blog, health blog, travel blog etc.

It takes 2 minutes to start a free blog. There are many free platforms like medium, blogger, WordPress, LinkedIn to start blogging.

I have been blogging since 2years. The journey was not that easy. I faced lots of difficulties In finding the right audience, learning technical stuff and most important digital marketing.

Honestly, I can tell you that blogging changed my life. I am much more different person compared to what I was 2 years ago. I got better clarity about my life, career and way of doing business. Blogging gave me an opportunity to connect with some of the influential people.

Blogging is a scalable business. One of my friend is earning more than Rs. 5 Lac through blogging.

Affiliate marketing

Affiliate marketing is marketing others product and getting a commission for each sale. Generally, bloggers provide information regarding some products and give a link to the product. The affiliate marketing industry is huge. There are many Indian bloggers, who have become millionaires through affiliate marketing.

Dropshipping

Personally, I don’t like dropshipping. Dropshipping is selling a product directly from wholesaler/manufacturer to customer. You just work as an intermediary. You can set up your dropshipping business, where you can show products available on Amazon, add your margin and directly sell to your customer. Here, you don’t keep inventory. It will be managed by Amazon. So, you are just a reseller. You can resale anyone’s product like Amazon, Flipkart, Mintra etc

My concern is that why people buy from me with a higher cost when the same product is available with amazon at a lower cost.

Still, people are doing this and are earning a good sum of money.

Rent

Your second home or shop which you are not using it, you can give it on rent. That will help you get extra income without your involvement.

If you have a high income and able to fulfil your basic needs and save for your other goals, you can try the following strategy.

Research a good property investment that can generate good rental income.

Get a loan with more time period, so you can get lower EMI. Make sure that EMI doesn’t exceed rental income.

Particulars Amount
       Rent Income (25000*12) 3,00,000
(-)   EMI (15000*12) 1,80,000
(-)   Propety Tax 5,000
(-)   Maintenance expenses 15,000
(-)   Legal and other expenses 8,000
       Net cash inflow 92,000

If you have extra surplus income, you can try out this way.

If you prepare a list of all passive income, the list will go on and on. I am not discussing all the idea here. But I will name some:

  • Create an app
  • Network marketing
  • Selling online courses
  • Selling e-books
  • Display Ads
  • CPC (Cost per click)
  • Create digital products
  • Freelancing
  • Selling domain
  • Selling business
  • Domain flipping
  • Podcast
  • Build sales funnel
  • You tube
  • Sell professional photos
  • Invest through a peer-to-peer lending platform
  • Developing SaaS (Software as a Service)
  • Ecommerce

Final Words,

Hope you enjoyed today’s lesson. Do comment your query regarding wealth triangle and passive income.


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Jigar Chavda

Passionate young guy for personal finance, wealth creation and marketing. He is following his dream and passion to be writer, speaker, blogger and advisor.

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