- 2 days ago
NYC, Entrepreneurship, & Healthy Living
Howdy, I'm Taylor. I'm a 20 something former management consultant and ivy-league grad from California turned solopreneur in New York City, and I love making videos that follow all of the above. Stick around 😊
Howdy, I'm Taylor. I'm a 20 something former management consultant and ivy-league grad from California turned solopreneur in New York City, and I love making videos that follow all of the above. Stick around 😊
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LearningTranscript
00:00Hello.
00:01This is Taylor.
00:02So today we're going to talk about five ways that you can make a passive income.
00:06And for each of them, we're going to go over how difficult it is to start, how difficult
00:10it is to make $100 per week, and how difficult it is to maintain once it's up and running.
00:14And we're going to see a good amount of variation among these categories as we cover the five.
00:18So let's dive in.
00:19So what do I mean by passive income?
00:21Put simply, it's money that is not directly tied to your time.
00:25You put the time and or money investment in once in the beginning, and then you put it
00:29out into the world for it to generate income without it needing more of your effort.
00:33An example, you write a cookbook with all of your recipes once, and then it can be sold
00:38repeatedly forever with little to no additional work from you.
00:41Now I think it's important to clarify that passive income is not this rosy, magical, get
00:46rich quick while you sleep thing that literally doesn't exist.
00:49You need to provide some type of value in order to make any income.
00:52I also think we often associate passive income with hustle culture, you know, starting multiple
00:57businesses on the side, Gary Vee, David Goggins.
00:59I actually think about it pretty much exactly the opposite because passive income plus diversification
01:04allows you more freedom and time to focus on other aspects of your life without the stress
01:09of relying on one sole source of income.
01:11So as with all income streams, even passive ones require your time and or money upfront
01:16to get it started.
01:16So here is to getting them started and let's kick it off with the king of all passive income
01:21streams investing with a focus on dividend stocks for this video.
01:24So this is one of the most straightforward passive income strategies out there, and I'm excited
01:29to talk to you about it.
01:30So if you're new to investing, dividends are shares of a company that pay you out a portion
01:35of their profits on a regular basis, usually every quarter.
01:38And that is cash being paid out directly to you without the need to sell the stock, which is
01:44truly passive.
01:44As with any investment, though, the key to making any money doing this is to choose the right stock.
01:49So when it comes to dividends, I would start by familiarizing yourself with stocks that are known
01:54as dividend kings.
01:56So these are a select group of companies in the stock market that have increased
02:00their dividend payouts for 50 or more consecutive years, which is really saying something,
02:05by the way, that means that even during economic downturns like COVID, dot com bubble,
02:09the great recession, when these companies likely had lower earnings, lower market cap,
02:14they still maintained their commitment to increase their dividend payouts to their investors,
02:18which I think just shows solid management of cash flow and reserves and a company's
02:22ability to withstand tough economic cycles.
02:24So after dividend kings comes dividend aristocrats.
02:27No, I'm not making these names up.
02:29I wish I was.
02:29And these are stocks that have increased their dividend payouts for at least 25 consecutive
02:33years.
02:34So besides the obvious reasons of why, you know, dividend kings and aristocrats would
02:37be a good place to start because they're consistent and reliable.
02:40It's worth noting that there are a lot of companies out there, a lot of young
02:43companies that might draw you in by offering really high dividend payouts.
02:47I would be cautious of these because it's just tough, kind of impossible to know which
02:51companies will maintain that commitment without a long track record to show for it.
02:55Now, our evaluation metrics.
02:57How difficult is this to start?
02:59It is so easy.
03:01One out of five.
03:02We're using my dog Willy instead of stars.
03:03So one Willy.
03:05All you have to do to start investing is download an investing app, deposit some money and buy the
03:10stocks.
03:10My personal experience, I started investing when I was 14, just little bits of, you know,
03:14birthday money here and there.
03:15And then more and more in high school as I started to make an income.
03:18And then after my internships in college and now I invest a majority of my income.
03:22So point is, it is not hard to start even at a young age.
03:25And good golly, will you thank yourself in 50 years if you do start at a young age?
03:29But no matter how old you are, the saying is the best time to start investing is yesterday.
03:34The second best time is today.
03:35So, and it's easy.
03:36Okay.
03:36Difficulty to make $100 per week doing this.
03:39This is where things get a little interesting.
03:41Let's do some quick maths.
03:42So companies' dividend yields are calculated on an annual basis.
03:46So let's start by annualizing our $100 per week.
03:49That's $5,200 per year.
03:51Now let's take Target, one of our well-known dividend kings,
03:53and their current annual dividend yield is 3.05%.
03:58So to make $5,200 per year or $100 per week just from dividend income with Target,
04:04you would need to invest, wait for it, $170,491.
04:10So I would give this category five willies.
04:12The capital investment needed to make a significant income from dividend payouts alone is quite high.
04:18Even still, any money is better than none.
04:20And you can kind of think of it as a tree that grows really, really slowly but steadily.
04:25And finally, difficulty to maintain.
04:27I would give this zero willies if I could.
04:30We'll give it half a willie because you might want to check it on your stocks to see how they're
04:33doing every now and then.
04:34But even then, the long game is the best way to go for almost all investors.
04:38So dividend stocks are certified passive.
04:41Final note on dividend stocks because I like to insert my little personal opinion here.
04:46I personally elect for all of my dividends to be automatically reinvested
04:51because I'd rather just have that money stay in the market and work for me for longer
04:55since I'm young and I can have a lot of years for it to grow.
04:57I would probably recommend doing the same if you're young and you have all that time.
05:01But at the same time, if you do have enough income invested for your dividend payouts to
05:06earn you a significant income, I can also see that being a really nice cash flow to have.
05:09So whatever works for you, that's just what I do.
05:12And none of that was financial advice, I think I have to say.
05:14All right, let's jump into our second passive income stream.
05:17And this one leans a lot more on the fun and creative side.
05:19So I'm excited to talk about this one.
05:21And it is print on demand.
05:23So what is print on demand?
05:25Basically, it's a way to create custom merch like t-shirts, posters, mugs, totes,
05:29you name it, without needing to hold inventory because the product is printed and shipped
05:35only after the order is placed.
05:37It's kind of like drop shipping for custom merch.
05:39Whereas with typical merch fulfillment,
05:41the products are created before the orders come in in anticipation for the demand.
05:45So it's a really great option for entrepreneurs and creators and side hustlers
05:48who want to sell custom merch without having to estimate demand or hold inventory.
05:53And for me personally, merch is something I've wanted to do for a long time.
05:56But there are two things that have just kind of made me put it on the back burner forever.
05:59And that is one, finding a good fulfillment and like production partner
06:04seemed like a really daunting task.
06:05And so I just never did it.
06:07And two, I literally don't have space to hold inventory in my New York City apartment
06:11in the event that I did any of the fulfillment myself.
06:13But print on demand solves those problems.
06:15So I can show you exactly how to do this.
06:17And I'm very lucky to have the world's largest print on demand network with over 140 production
06:22hubs in 32 countries, Gelato, sponsoring this portion of today's video.
06:27So I'm going to use their platform to walk you through this process.
06:29And it's going to be awesome.
06:31Anyone can do this.
06:31You don't have to be a creator with a big following.
06:34There are people making thousands per month on Etsy by selling custom pet merch
06:39and lots of other things, which Gelato fulfills for them.
06:42So if we browse through their product catalog, you can see there are lots of different categories.
06:47I'm going to do a mug because I like to drink copious amounts of coffee.
06:50I'm just going to drop in a picture of the love of my life.
06:53This is how it would look absolutely perfect.
06:57And that's it.
06:57Super quick, easy example.
06:59Plus, you can see that you get 50% off your first order.
07:01So if you're ordering a sample to, you know, quality check 50% off makes it like pretty reasonable.
07:06Now, this is just an item that I would love for myself.
07:09I like to think everyone loves Willy as much as I do.
07:11But if I wanted to sell custom merch, here's what I could do.
07:16So I just made three really quick custom pet templates.
07:20I used Willy, obviously, but I put your pet's name here so people can visualize what theirs would look like.
07:25And because Gelato integrates seamlessly with so many providers like Etsy, Shopify, a ton more,
07:31I could post these three things for sale on my Etsy shop directly from here.
07:36And one of the things that makes your life so much easier is that when the orders come in on Etsy,
07:41they're fulfilled directly, automatically through Gelato.
07:44They do the printing and shipping for you literally while you sleep once those orders come in.
07:47So a thought that I had that you might also have is with the print on demand model,
07:52does that mean that shipping times and lead times are a lot longer
07:55since you don't already have the item ready to go when the order comes in?
07:58Well, turns out 90% of Gelato orders arrive within five days of ordering
08:03and 90% are produced locally because they have so many global print providers,
08:07which kind of blew me away.
08:09Let's say your Etsy customer lives in Australia.
08:11Gelato will find its nearest print partner in Australia to produce and then ship locally that item.
08:17So to bring print on demand back into the context of passive income,
08:21let's run it through our evaluation metrics.
08:23So difficulty to start, I would give two willies.
08:26Of course, there's going to be some time and creativity involved upfront because
08:30you've got to make the designs and you have to make them good, otherwise they won't sell.
08:34But with such sophisticated platforms like Gelato with a ton of customization and functionality,
08:39it's honestly easier than ever to get a shop up and running without even having to make a financial
08:43investment besides probably ordering a sample for the thing that you want to sell just to check
08:47for quality, you know?
08:48So it's very low risk with this model to start.
08:51You don't even need a proof of concept.
08:53Okay, difficulty to make $100 per week.
08:55I've been doing a lot of research on this and here are some interesting facts.
08:59So merchants with 10 to 50 products have an average of 7.5 times the revenue
09:04compared to merchants with less than 10 products.
09:07So it behooves you to have a lot of things up for sale,
09:09which you can do using this method with no additional cost.
09:12So combining the low risk nature of starting this and the ability to scale it globally,
09:17my research deems it very doable to make $100 per week doing this if you have a creative design.
09:23So let's give this category two and a half willies.
09:25And finally, difficulty to maintain.
09:27I would give this two willies because you're probably going to want to post more items for sale
09:32as time goes on and monitor your sales, which is some time investment.
09:35But for the most part, once the designs are created and up for sale, it is quite passive.
09:41So if you're interested in trying this for yourself,
09:43you can try Gelato for free and get 50% off your first order if it's placed within 72 hours
09:49of creating your account using my link in the description below.
09:52And thank you to Gelato for enlightening me on print on demand.
09:55All right, jumping into our third passive income stream.
09:58I'm also excited to talk about this one, kind of excited to talk about all of them,
10:01and it's to create a digital product.
10:03So this is something that you create once, like a budgeting template or an ebook or an online course
10:09or a video scripting template, you name it.
10:11But before talking about a brainstorming exercise that you could do to figure out what you should make,
10:16let's talk about a few of the reasons why digital products are such a great business model for passive income.
10:21The first is really low overhead costs.
10:24So similar to print on demand where you're not holding inventory,
10:27a digital product is something that exists on the interwebs.
10:30So there's no production or shipping costs or any other logistic constraints that you typically have
10:35with a physical product.
10:36And with those low overhead costs and no physical inventory comes a really great ability to scale globally.
10:43It can be sold repeatedly without additional ongoing costs,
10:46which also typically means a higher profit margin,
10:48because your cost is basically zero besides the time and effort put into making the thing.
10:52And finally, it is easy to update.
10:55So let's say you have a bonus chapter for your ebook or a bonus module that you want to add later.
10:59You can do that with a digital product, which is pretty cool.
11:01Okay, so those are some reasons that I'm such a proponent of digital products.
11:05But the hard part is making something that people will actually buy.
11:10The key is to create something valuable that your audience actually needs,
11:14whether it's sharing your expertise or a tool.
11:17Same with YouTube videos.
11:18So for example, let's say you're a content creator that focuses on personal finance and entrepreneurship.
11:23Maybe there's a budgeting template that you made and show in your videos that your audience asks you for.
11:28Or if you're a cook and you want to share all of your recipes in one place,
11:32a downloadable ebook could be a great option.
11:34Or an online course is a really great business model for people who have
11:39expertise in one particular subject and want to consolidate all of their knowledge in one place
11:43via typically video modules.
11:45But what if you're not a creator that's already in a specific niche
11:49and you're trying to figure out what digital product to make?
11:51Again, going back to providing value, whether it's your expertise or a tool,
11:55think about what you specifically could provide value on.
11:58What is your competitive advantage?
12:00That's where I would start.
12:01How you can transform something that you are extra good at into a tool that someone else could use.
12:07So difficulty to start.
12:08I would give this one and a half willies.
12:11Really anyone with a phone or a laptop could do this.
12:14That's the beauty of it being digital.
12:15The hard part is what comes next.
12:17And that is actually making something that's worth buying and making sales.
12:21So without focusing on the $100 metric just for a second,
12:24let's talk broadly about how difficult it is to make any money at all doing this.
12:28The reality is for you to be successful with a digital product,
12:32it has to be genuinely very good because it is such a competitive space.
12:36There are just so many digital products out there, a lot of which are free.
12:40So yours has to stand out in some way for it to actually move.
12:42And as I think about market entry, I usually think about something being first, different or better.
12:48Obviously, those are not mutually exclusive categories, but let's say your digital product is first.
12:53It's the first of its kind on your market.
12:55You have a first mover advantage there.
12:56Let's say it's different where maybe your product is something that's been done before,
13:00but you put your own personal spin on it, or maybe you added different features.
13:04Or third, it's better.
13:06That's something that's been done before, but yours just offers more value in some way.
13:10Now, let's say that you get to that point where you figure out a digital product
13:13that is genuinely really good.
13:14From there, I would say that making $100 per week on this is very doable.
13:19Admittedly, creators or someone with an audience will definitely have a tailwind here,
13:22because you likely already have some folks that would buy your product just because it's yours,
13:27which is something of value in itself.
13:29So I would give this category three and a half willies.
13:32It's not easy to make a digital product that is very good.
13:35But once you do, I think that hitting the $100 per week mark is very achievable.
13:39And finally, difficulty to maintain.
13:41So there usually is some upkeep here, whether you're updating your product
13:45or checking in on sales to make sure everything's running smoothly,
13:48maybe some customer service.
13:49But the hard part of creating the product in the first place is over,
13:54and it's out in the world to serve as a really, really great passive income stream for you
13:58with little to no additional cost.
14:00Is it certified passive?
14:02Yes, but with some light maintenance involved.
14:04So let's say it's passive light and give this category two willies.
14:08Also, give this video a thumbs up if you're finding it helpful so far.
14:10All right, we are getting there.
14:12Let's now cover our fourth passive income stream, which is affiliate marketing.
14:16So what is affiliate marketing?
14:18This is income that you could make from promoting someone else's product or service.
14:23And every time someone makes a purchase through your referral link,
14:26you earn a small commission of that sale.
14:28And this is very passive income.
14:30All you do is generate the links, pop it in the description somewhere, and the work is done.
14:34Probably the most popular affiliate program is through Amazon.
14:38It's called Amazon Associates.
14:39And literally anyone with a social media account can sign up for this and start making those links.
14:44So I have some top secret insider info here that I've picked up from my other
14:47YouTuber friends over the years, and we're going to get into it.
14:50Some of it might be surprising.
14:51But starting with how difficult it is to start, it is so easy.
14:55Again, you just sign up for an affiliate network like Amazon Associates or LTK.
15:00So I'd give this like one willy.
15:01Really easy.
15:02Now, difficulty to make $100 per week through affiliate marketing is,
15:06as always, where things get a little more interesting.
15:08So I have a lot to share with you here.
15:10Depending on your business model, it can either be really easy or pretty hard.
15:15So I touched on this in my annual income video,
15:18but I have some creator friends who are making over $40,000 per month just from affiliate revenue.
15:24And those are just like friends of mine that I know personally that have talked to me about it.
15:28I'm sure there are tons of creators, big creators who are making a whole lot more than that from
15:32affiliate revenue.
15:33So what type of creator easily makes $100 per week doing this?
15:37Typically, it's creators with a focus on products.
15:41So I know I use him as an example a lot, but my friend Shervin makes a lot of reviews on health
15:46and fitness and technology items, which are typically more expensive things.
15:51Now, if he makes a commission on one of those more expensive items, you could do the math.
15:55That's obviously more money in his pocket.
15:57Plus, it's pretty often that expensive products have an affiliate program of their own.
16:02On the other end of things, have you seen those videos come up on Instagram reels
16:06or shorts or TikTok or whatever?
16:0810 Amazon finds that you have to buy and it shows cute little like kind of useful things from Amazon.
16:14Those videos are made for affiliate revenue.
16:17So those are not high ticket items, but they are high quantity.
16:21As in millions of people watch those videos because they're fun, short, easy to digest.
16:25And even if there's only a 1% conversion of audience to clicking on your affiliate link,
16:31that is a nice payday for that creator.
16:34So for creators that have a focus on products, it is, I would say, much easier to make $100 per week.
16:39Finally, last point in this section, if you're someone like me who doesn't focus on products,
16:44but still pops links in my description to things that I get asked about a lot or that I just use to
16:49make my videos, I would say it's actually pretty difficult to make $100 per week.
16:53It is certified passive income for sure, but you kind of need two things.
16:58One, an audience.
16:59Two, pretty big numbers, whether it's the ticket price of the item you're promoting
17:03or the quantity of clicks that you're getting to make a real dent.
17:07So since there's a number of criteria to kind of meet here in order to make $100,
17:11I would give this category four willies.
17:13I still think any creator should pop affiliate links in their description
17:16to the things that they use to make their videos at least.
17:19But I just wouldn't expect to make a significant income from
17:22this unless you're a product focused creator.
17:24And now, breath of fresh air, difficulty to maintain is literally zero willies.
17:29Once the links are in place, it is so certified passive that it's not even funny.
17:33We'll give it half a willy because over time, you'll probably want to update the links and
17:37add new things as you start using different products.
17:40But yeah, once the links are there, the work is done.
17:42All right, saving the best for last in my very biased opinion,
17:46the fifth income stream is to start a YouTube channel.
17:49Okay, hear me out.
17:50Putting my personal stake in YouTube aside for now,
17:53it is actually a really beautiful business model that can generate a lot of passive income.
17:58Now, you might be thinking,
17:59Taylor, how is having an actively running YouTube channel passive at all?
18:04And you'd be right, it is incredibly unpassive to create a new YouTube video.
18:10But the way that they generate revenue is largely passive.
18:13Let me explain.
18:14All of your videos, including old ones that you haven't even touched since you first posted it,
18:19will continue to generate ad revenue so long as they get views forever.
18:23So yes, of course, there is a time and effort, perhaps money investment upfront to make the video.
18:29But once it's up, it's making money without any additional effort from you
18:34for as long as it lives on YouTube.
18:35So a real life example of this passivity, let's look at some of my own numbers here.
18:39So this video of mine has generated a little over $19,000, which by the way,
18:44actually is not a lot for a video with, geez, 5.8 million views, but I digress.
18:49So you could argue that this is the subjective timeframe that doesn't count as passive
18:54because it's the ad revenue that I earned like pretty shortly after posting the video.
18:57But look at all of this passive income that it has generated
19:01over the last two and a half years without me doing anything.
19:04Look at all these coffees this old video is buying me.
19:08$52 coffee, okay.
19:09But down to business.
19:10It's all fun and games to talk about, but how viable is it to actually start,
19:13make money from, and to maintain?
19:15Starting a YouTube channel is easy.
19:17You just have to open an account and film a video with your phone and then press publish.
19:21The barrier to entry is extremely low.
19:24You don't need fancy equipment.
19:25You don't need to spend money.
19:26You just need a computer or a phone and some internet connection.
19:29So let's say two willies.
19:31It's what comes after this that is the hard part.
19:33Now difficulty to make $100 per week in YouTube ad revenue.
19:37Let's walk through it.
19:38First, you have to become eligible to make money on YouTube.
19:41And for this, you need 1,000 subscribers and 4,000 watch hours.
19:45Typically, a lot of creators hit this milestone anywhere from six months to a year plus after
19:52starting.
19:52And that's if you post high quality videos consistently, which is the hard part.
19:56But once you're monetized, what do we need to make $100 per week?
20:00So the average RPM, which means revenue per mille or revenue per thousand views that you get on
20:05YouTube is around $2.
20:07That's the average.
20:08It's pretty low.
20:08So to make $100 in one week with a revenue per thousand views of $2,
20:14that would mean that you need 50,000 views in one week.
20:17That sounds like a lot because it is.
20:19The good news is if you are watching this video,
20:22the odds are that the content that you would make would have a higher RPM.
20:26In other words, videos that focus on personal finance or entrepreneurship,
20:30self-development, things tendentially related to these topics,
20:34famously attract a higher earning audience.
20:37And for that reason, advertisers will pay YouTube more
20:40to have their ads shown on those types of videos.
20:42And that means a higher RPM for you than $2,
20:45probably somewhere closer to $8 to $10,
20:49which also means you don't need quite as many views to hit that $100 mark.
20:52Now, these numbers sound huge and super unattainable.
20:55If it's any motivation, use me as a benchmark.
20:57I started making $100 in ad revenue per week when I had about 7,000 subscribers.
21:02So it's very doable.
21:03So anyway, taking all of this into account,
21:06I would honestly say that it is four and a half willies
21:09to make $100 per week from YouTube ad revenue.
21:12Mainly because the first part of really grinding to get your channel off the ground,
21:16to get it moving, and then to continue making high quality videos consistently,
21:20that's the hard part.
21:21And that is what ultimately would earn you the $100 per week.
21:24The good news is that it's not quite as difficult to maintain
21:27once you have this kind of in motion.
21:29Now, I'm really proud of myself for this analogy I'm about to show you,
21:32but if you guys ever took physics, do you remember kinetic friction versus static friction?
21:37Basically, it is much harder to get something to start moving than it is to keep it moving.
21:45Now, this is a silly example.
21:46It's not hard to do either because I'm so big and strong.
21:49But if you think about moving a couch, the hardest part is that little jolt to get it moving.
21:54And then once it's sliding, it moves relatively easier once the hard part's over.
21:58It's the same with YouTube videos as it pertains to passive income.
22:01So once you have a long catalog of great videos behind you,
22:05that can help you do a lot of the heavy lifting in filling up that $100 per week jar.
22:10The difficulty to maintain those is zero.
22:12I'll still give this category two willies because you still need to be
22:15honing your craft and uploading new videos to maintain this well-oiled machine.
22:19But the income on old videos is certified passive.
22:24So these five revenue streams, I think, varied quite a bit in terms of difficulty to start,
22:28make money at, and to maintain.
22:30But what they all have in common is that they can allow you to diversify your revenue
22:34without trading too much of your time for money.
22:36And it really is these types of revenue streams that I personally am going to be
22:41striving for in my life because that's what's going to help me lead a more balanced life,
22:45which is a big goal of mine.
22:46All right, question for you to leave in the comments if you made it this far.
22:49First, which of these five revenue streams would you be most excited to start?
22:53And second, if you could automate one part of your life, what would it be?
22:57If you found this helpful, please give it a thumbs up and subscribe for free.
23:00It helps the channel a lot and I'd really appreciate it.
23:02I also have more business and personal finance content coming soon
23:06that you won't want to miss.
23:07But until next time, Turtle out.
23:09Hello.
23:11Yo.
23:12Hi.
23:13I'm getting a thumbnail.
23:15Do you like the pants?
23:17I do.
23:18It's good.
23:18Yep.
23:19Yay.
23:23That all.
23:25Everything is quick.
23:26My future.
23:28You envy the vehicle.
23:28Hope to fill.
23:28We put on a bikinioraliseAH.
23:29All right.
23:30I'm stuck.
23:30Let's do it.
23:31Let's shoot.
23:31Let's go.
23:32Let's go.
23:32Let's go.
23:33It looks gonna be fun too.
23:34Let's get, hopefully, now.
23:35Let's look at various numbers for hours.
23:37Make sure it looks great.
23:38Get on.
23:38People are yet to try and choose the actual industry.
23:40What's ought to want you?
23:42I'm so yellow.
23:43Get on me.
23:44You've passed me on.
23:46Get on me.
23:47People are wrong console.
23:47You expect you.
23:48Well, you could question me.
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