Passive Income: The SPI Definition
In order to build reliable passive income streams, we must first understand exactly what the term passive income really means. Definitions vary. In my experience, what most internet entrepreneurs crave—and what I focus on here at SPI—is:
Building online businesses that take advantage of systems of automation that allow transactions, cash flow, and growth to happen without requiring a real-time presence.
In other words, we don’t trade time for money. Instead, we internet entrepreneurs invest our time upfront creating valuable products and experiences. We work hard now to continually reap the benefits later.
The SPI Business Model
In the video below, I illustrate exactly what a passive income business model looks like. This is the foundation of my profitable online businesses as well as everything I teach here on SPI. If you’ve read The 4-Hour Work Week by Tim Ferriss, this will be somewhat familiar to you. That book dramatically inspired how I run my businesses.
What Passive Income Is Not
Let’s dispel with some myths and set realistic expectations before we go any deeper.
1. Generating passive income is NOT easy and it takes a lot of hard work.
Nothing in life comes easy. Making money online is no different. Many conventional internet marketers and online entrepreneurs will try to persuade you to think otherwise. Why? Because they’re trying to make money from false hopes. I’m here to tell you the truth: online business is hard. I’ll do my best to guide you and give you the information you need, but I can’t force you to take action; that’s up to you.
2. Generating passive income does NOT happen overnight.
I don’t live, teach, or believe in get-rich-easy schemes. My first online business took about a year of hard work before it was generating enough to support my family. There was nothing easy about what I had to do to get that business going. But in relative terms, it was “quick” because I decided to opt-out of the work till 65 deferred life plan and make my own luck happen. You can do it too.
3. Generating passive income is NOT impossible.
Passive income was just a dream for me until 2008. That’s when I was let go from my job due to the crumbling economy. With no other options, I bet on myself by trying to make my dream a reality. And you know what? The dream came true, and it’s totally awesome! I get to stay at home with my family, work when I want, and make my own decisions. This lifestyle is possible, and I want you to experience it too.
Types of Passive Income: What to Expect
I have three podcast episodes that I deem required listening for anyone who wants to get up to speed quickly on passive income business opportunities. Simply right-click on each link below to save the MP3 file to your computer.
Then listen at your leisure: while you’re at the gym, on the commute home, or doing chores.
- SPI 015 : Types of Passive Income and What To Expect From Each (Part 1)
- SPI 016 : Types of Passive Income and What To Expect From Each (Part 2)
- SPI 017 : Types of Passive Income and What To Expect From Each (Part 3)
SPI fans tell me all the time how much these episodes helped them understand the types of passive income opportunities. I guarantee they’ll help you too. And if you love the episodes, be sure to subscribe to the SPI podcast on iTunes to get new episodes as they come out.
Domain and Hosting Strategy
A website is an essential part of any profitable passive income business done online. There are a few free options like Blogger, Tumblr, or WordPress.com. Those are great options for some, but I don’t recommend that path for two important reasons:
1. When you use a free service, your domain name will almost always be an “extra” extension to the service provider’s own domain. For example, if I created SPI on Tumblr, the web address would be http://smartpassiveincome.tumblr.com instead of http://www.smartpassiveincome.com.
2. You have fewer customization options for design, functionality, and revenue. For example, I know that with free WordPress.com sites, you are limited to using only certain plugins, and you aren’t even allowed to advertise.
These two reasons alone are exactly why I recommend going with a self-hosted website. You have more control, it looks more professional, and you can truly call it your own.
Bluehost: The Provider I Use And Trust
I’ve used Bluehost since the beginning and trust them implicitly. All of my businesses run on them. I love their customer support, live chat, and reliability.
I hear horror stories all the time from other online entrepreneurs dealing with massive hosting headaches. I never have them with Bluehost.
The video below walks you through the exact steps to setting up your website on Bluehost. Four (4) minutes is all you need to register your domain, install a blog, pick a design theme, and write a post.
Disclaimer: I do earn a commission if you choose to go with Bluehost. There are obviously other hosting companies available, but again this is my recommendation based on my experience with the company since I started doing business online. If you do purchase through my affiliate link, thank you so much for your support!
My Newsletter And FREE eBook
Before I let you go so you can read take action, I’d like to kindly invite you to subscribe to my newsletter, which is full of exclusive content that you cannot find here on the blog.
Unlike other internet marketers, I don’t sell anything off of my list. I use it solely to give you awesome info and even engage with you at times. You can unsubscribe at any time, but I promise you will not be disappointed.
As a thank you, you’ll get instant access to my very popular eBook, eBooks the Smart Way, the most comprehensive guide available on how to publish, market, and automate your own killer eBook, which is exactly how I got started in this business. It has been downloaded over 15,000 times, and people have offered me money for it after reading it, but it will always be free.
Just enter your name and email below and you’ll get a copy of it right away.
I Appreciate You!
I just wanted to finish by saying that I’m here for you, not only as a guide while you begin or continue your online career but also as a friend.
I do my best to respond to all emails (it’s getting tougher as this blog gains in popularity, but I will always do my best to respond!). And I don’t hold myself above anybody. I’m not special; I’m just a guy who likes to work hard, work smart, and use the influence I have online to make the internet a better place.
Thank you so much for your support. And if you’ve made it this far, I’d love for you to come say hi to me on my Facebook Page. I’ll definitely respond, and I look forward to meeting you! Cheers!
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