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I recently started working on an e-commerce site to test my hand at earning passive income. I’m still in the early stages of setting everything up, but I’m already learning how much work it takes to get this type of project off the ground.
Only 20% of Americans earn passive income — usually through rental properties or dividends — with a median amount of $4,200 annually. If you’re looking to boost your bank account balance with passive income, here are a few things I’ve already learned that might be helpful to know.
1. It’s not exactly passive
The idea of earning money without having to do much work is the draw of passive income. But even for a relatively simple e-commerce project like mine, a lot of work goes into getting it up and running.
Many people tap out at this stage because putting an idea into motion is hard work.
I’ve spent many hours watching videos about search engine optimization (SEO), combing through the right keywords, creating posts, making social videos, and setting up my WordPress website. I’ve committed six months to getting my project up and running, which should be enough time to evaluate whether my efforts have been worth it.
2. I’ve had to invest some money
I’m sticking to a strict budget for my website because I want to see if I have a viable idea before I invest too much money. But I still have expenses, including website hosting, SEO research, and marketing tools.
No matter what type of passive income stream you might be interested in, it’s likely going to take some cash to make it a reality. The good news is that if you do most of the work yourself, you can probably keep your costs low.
3. It’s helpful to have an interest in the idea
The website I’m starting is within a range of my general hobbies, but it’s not my favorite thing to do. I’ve found that having some interest in the idea I’m launching is enough to make me want to do more research about it and spend time on it.
While some people recommend loving your side hustle, I think it’s perfectly fine to just pick something you can potentially profit from (as long as you have at least a little interest in it).
Some people try to turn their hobbies into money-making businesses and end up not having much fun doing what they used to love. I’m treating this project purely as a business opportunity, and the bonus is that I enjoy the topic a little as well.
4. I’m using old skills and learning new ones
I’ve had jobs in content management, public relations, journalism, and marketing, and all the skills I’ve learned from those jobs are helping me in my new project. For example, creating blogs and videos is fast for me, thanks to years of creating content and making social media videos for clients.
But I’m also learning lots of new skills as well. I’ve used SEO tools a little bit in the past, but I’m learning a lot more about seed keywords, finding the correct phrases within my niche, and how to use these tools to create a larger content strategy.
5. There’s no guarantee this will pay off
Whenever I work on my new project, I hear a little voice saying, “What if this doesn’t make ANY money at all!?!” I kindly reply, “That’s fine,” and get back to work. Yes, I talk to myself.
Investing time, energy, and a little money into something new can be scary. But I’ve thought about how I’ll be disappointed if I don’t try launching my project, which motivates me to keep going. I’m OK with “failing” at this and not making a single sale as long as I’ve tried and learned something new.
I’m no expert in passive income, but I’ve learned so far that you don’t have to know everything to get started. You can begin with just an idea and use a few of your skills to get the ball rolling — then learn more as you go. And if I make a few sales, then all the better.
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