Happy New Year! Every three months (at the end of March, June, September and December) I report my passive income earnings. And now that we’re at the end of the year, I can also look at how my business is progressing year on year.
Why the image of a cat? Why not!
My passive income
Earning passive income means building assets that, once created, will earn revenue for months and years into the future without any further work. My passive income comes mostly from digital product sales, but also from affiliate commissions and advertising.
I was flabbergasted when my first client had found me online. That was 2006 and it seems like yesterday. However, I always wanted to move away from swapping my time for money.
My target for the last quarter in 2014 was $20000. Let’s see how I got on.
My biggest passive income earner is selling video courses on Udemy, the online learning platform. Here is my Udemy revenue:
Wow! I’m averaging over $5000 per month on Udemy alone now with a total of $15,473.59 this quarter. I actually made over $6700 in November, helped by the Black Friday and Cyber Monday promotions.
Skillfeed is another online learning platform run by the Shutterstock people. It’s similar to Udemy but has less traffic and pays less.
|2014 Q4||$1,000 (estimate)|
I have to estimate the Skillfeed earnings as I get the figures later. But it seems as though I’m getting about $1000 every quarter. $4000 a year is not bad for a completely passive income stream.
Making money from Amazon Kindle is a tough gig. For each book sale you will make $2 whereas with video courses you can make much more per unit. However, self-publishing is great for building an authoritative personal brand as well as providing another profitable passive income stream.
Here are my books:
- Running A Web Design Business From Home: How To Find and Keep Good Clients and Make Money with Your Home Business
- How To Sell Video Courses Online: How I make $2000+ passive income every month
- From Freelancer to Entrepreneur: Escaping work and finding happiness. Buy this one. No one is buying it. It’s really good. 🙂
- Build a Brand, Create Products and Earn Passive Income
- Create the Website You Want with WordPress
You can see the sales and the borrows (the blue line below is borrows and the red line is sales) in the above chart. New releases and promotions cause a lasting effect on daily sales.
I sold 1662 books this quarter compared with 1229 books in Q3 and 478 books in Q2. It’s still not a lot of money but the trajectory is pleasing.
Anyway, I’m really pleased with my Kindle sales in Q4 2014: $2410.45.
Sales of my PDF e-books
I have been selling e-books from my site since 2011. I don’t promote them much nowadays as I’m more committed on selling e-books on the Kindle platform.
|My product||2014 Q1||2014 Q2||2014 Q3||2014 Q4|
|Running a Web Design Business||$178.79||$123.52||$94.07||$43.83|
|How To Get Clients||$72.93||$103.13||$111.04||$134.15|
My membership site
I launched my membership site at learn.robcubbon.com six months ago. Make no mistake, setting up a membership site from scratch with 8 courses and 200+ videos is hard work. But it’s beginning to pay off:
In its first quarter my membership site netted me $331. In the second quarter, we’re on $974.
(Stay tuned because I’ll be sharing much more about my membership site plus I’ll be releasing a major new product on it soon!)
Google advertising income
This is revenue from ads on my YouTube channel as well as Adsense here on my website.
|Google revenue||2014 Q1||2014 Q2||2014 Q3||2014 Q4|
I am an affiliate for certain products that I recommend or mention here. I get a commission if a sale is made through one of my affiliate links.
|Affiliate product||2014 Q1||2014 Q2||2014 Q3||2014 Q4|
|Genesis WordPress theme||$356.78||$471.45||$307.76||$253.53|
|WPML WordPress Multi-Lingual plugin||$453||$376||$440||$885|
|GoDaddy domain name registration||$27.54||$0||$0||$0|
|E-Junkie shopping cart system||$7.20||$0||$0||$0|
|Aweber email marketing and delivery||$43.20||$46.20||$63.90||$72.90|
WordPress Multi-Lingual plug-in had a good quarter!
So, if we add it all up. My passive income in the fourth quarter of 2014 was (wait for it!): $21,624.45
Comparison with previous quarters
Nice to see that I’ve done over $20,000 this quarter which was my target. It was only two quarters ago that I exceeded $10,000 a quarter for the first time. Such is the way of passive income. How many times do I have to say it: it’s scalable!!!
Annual passive income total
This year I earned a total of $54,506.55 compared with $15,803.90 in 2013 and $8,553 in 2012.
In my review of the year 2013, I’d originally set my 2014 target at $30,000. I was called out by my friend Matt Ogbourne for being too unambitious and I raised it up to $50,000 – thanks Matt. You see, aim for the stars!
Remember: this is passive income – the earnings will continue to flow in the months to come even if I retired tomorrow (I won’t). I still have time to work for clients (although I do less of that now and I outsource a lot of it).
But, also remember, this is the revenue. What about the costs?
Expenses in the last quarter
I haven’t yet itemised expenses in these quarterly passive income reports. This has been because, frankly, I never spent much money setting up these streams. Most of the money I spent was on hosting and email marketing – and that money would have been spent anyway for my web and graphic design business. I have spent anything on advertising (OK maybe a smidge).
However, I’m spending more on outsourcing (video editing, e-book proofing and creation, web development for the membership site, etc.) these days. Plus, in January, I’m hoping to get a full time virtual assistant.
So, for this quarter my expenses would break down like this: Hosting is $100/month. Aweber is $50/month. And adding the outsourcing, I expect my expenses have been just shy of $1000 this quarter. Which means my passive profits for the quarter are still in excess of $20,000.
Target for next quarter
My target for next quarter, Quarter 1 2015, is: $30,000 passive income profits.
Target for 2015
My target for 2015 is to make $150,000 passive income profits.
Don’t worry, if I make these absurd amounts, I’ll still tell you exactly how I do it. Reach for the stars, my friends!
Previous passive income and business reports
You can do it
All this has been done with a blog, an email list and a few digital products. Anyone can do this. Everyone has expertise that they can sell online. You can do it.
But not now, first you’ve got to leave a comment.