I recently set a goal of creating a passive income stream of $300 per month by September 30th. I’ve spent the past few weeks thinking through exactly how I’m going to accomplish that.
I’ve mostly been trying to identify the right mindset. I find it somewhat odd that I’m working on my mindset, since I’ve already created a passive income stream before — my BrickBreaker site — which makes around $30 per month in passive income. You might think I already intuitively understand how to create passive income…but somehow the lessons of my previous small success are not that clear to me.
After pondering it the last few days while on vacation, I’ve come to realize that the key is first creating a stream of passive value. That’s what I did with the BrickBreaker site. I created some tutorials for how to beat that particular game and posted them online. I optimized the articles a bit so they’d do well in search engines. Sure enough, people found them and, based on feedback I’ve received on the site, found them valuable. This is an example of passive value being delivered to people.
The next step from there — creating passive income — was pretty easy. I just stuck some Google Ads on the site, and soon I was collecting $30 per month without doing any further work.
So, I’m going to focus on providing passive value, and assume the passive income will work itself out. I’m unsure whether I’ll be able to meet my $300 goal by the date I’ve set, which is September 30th 2012. After all, it took 2 years for my BrickBreaker site to build up its current level of traffic. Still, I don’t want to start worrying too much about the income side yet. I won’t get anywhere if I just focus on the income piece. I will keep my energies focused on the value piece, out of necessity, and assume the income side will work out in the end.
Further reading: Passive Value by Steve Pavlina.