One of the questions that I am asked the most is whether it is possible to generate passive income in times of crisis. Understanding Passive Income as those that are generated without us having to be present or dedicate 100% of our effort to them. Yes, it is possible that we generate them, since in crises is where more opportunities are generated.
There are many ways to generate passive income and residual passive income, that is, those that are generated automatically without us actively producing them. From my point of view the best way to do it is by finding in ourselves innate abilities. All human beings have skills that we may not pay attention to, for example, in every family group there is someone who has an aptitude for the kitchen, some develop expertise for carpentry, blacksmithing, goldsmithing, and we only strive to use these skills to entertain our family and friends.
Let’s imagine for a moment that we take that ingenuity, that art, and we produce to offer it to third parties, we will call this Active Income. Now let’s go further with our imagination, let’s think that since we have regular customers who like our product, we systematize our offer and offer online courses, we make a recipe book, a manual that we can sell online and that without actively working that manual or cookbook is sold alone. We will call this Residual Passive Income.
Do we see that it is possible to generate Residual Passive income? So what do we need to make it come true? Surely we lack tools, a methodology that allows us to exploit these techniques and generate income. How do we do it?
The first thing we must define is the Value and Purpose of our project, which must be useful and affordable to other people, what do we offer to others that differentiates us from the rest of the offers that exist in our environment? What is the price that we can offer so that we attract customers?
The second is to systematize what we do, write the processes we use to produce, so that in the future we can offer our knowledge in a remote way.
The third thing is always to consider that our product is scalable, that is, that we can grow in supply, that we can give courses, make cookbooks or manuals on how to make our products and we can sell it online, via networks.
Once this is done, we evaluate how to market it on the networks. Currently it is relatively cheap to advertise on Instagram or Facebook, and the most important thing is that we can choose the type of client we want to target, age ranges, areas, gender, etc. This will generate the traffic we want in our networks and if our product is of quality, has a good price and good service, it will materialize in sales. But our north should not be only to sell, we must go further, seek to retain the customer and retain it, we achieve this by always innovating so that our product offer does not stagnate and the customer does not get tired, or worse, they copy us and become become our competition.
The advantages of generating residual passive income can be summarized in that you develop a business system where money works for you and not you for money; It makes your working day more flexible since you decide how much time you dedicate to it and the point comes when the money enters your pocket without consuming hours of the day; and you work on what you like and are passionate about, which is the secret to the success of any project.
As advice, I always tell entrepreneurs to find a way to be the owners of their own dreams, to seek to be the protagonists of their own novels and not fall into “incredible businesses” offered by third parties where they are supposed to generate income without do nothing but put your money in the hands of others. Ask yourself “if the business is so good and so profitable, why do they offer it to you? Why don’t they work with their money or sell their properties to invest in their project? «
My biggest advice is that you focus on generating passive income and make money for yourself, build the path to your financial independence from now on.