Every three months I detail the passive income profit I’ve earned. I earn “passive income” through video course sales, e-book sales, physical product sales, affiliate commissions and advertising. I also earn “active income” by providing graphic and web design services for clients.
However, one income stream has dwarfed the others – I have been making around $4000 a month from Udemy for nearly two years and, although I tried to get my other passive income streams to match Udemy, none have even come close.
And now the inevitable has happened … Udemy’s constant income stream has dried up into a trickle due to their pricing policies.
So, suddenly, my main source of passive income is more than halved!
Lucky for me that I have many passive income streams and lucky for me that I still earn active income from web and graphic design services. One of the reasons I publish my passive income reports is so that others can learn from the bad days as well as the good.
My passive income
Last quarter I made $16,027.20 passive income profit. The target for this quarter is $20,000. Let’s see how I got on.Never make all your money from just one source Click To Tweet
Udemy is an online learning platform. I thought I knew how to make money on Udemy as it had been my most consistent passive income earner for two years. However, Udemy is a company that has historically tested the patience of its stakeholders. Constant policy changes, fake reviews, fake student numbers, rampant piracy and poor communication are the oft-cited reasons for discontent.
This quarter, we have $6,829.22 – meaning an income source that would consistently turn in revenues of $4000-5000 a month is now performing at $2000 a month despite my publishing new courses.
Why the staggering drop? On April 4th 2016, Udemy introduced a new course pricing strategy and stopped deep discounts. At the time they announced this, I thought it would be OK. This is the third major pricing policy change in less than three years. The last one benefitted me. I thought, Udemy have more information about their customers than I do, they must know what they’re doing.
However, now I’m not so sure.
We shall see. But I’m almost giving up on Udemy as a viable income stream for the future. Here’s an article I wrote about alternatives to Udemy.Giving up on Udemy as a long-term viable income stream Click To Tweet
Skillshare is another online learning platform that I have my courses on. Again, it’s consistent passive income but not nearly at the levels of Udemy.
StackSkills is a site that bundles together courses and sells them at an irresistible price. I’ve been involved in a number of their bundles recently and will be next quarter as well. This quarter I made $2,978.51 there. But this won’t carry on forever.
However, they are launching a more general online learning platform, Skillwise, however I miss the chance to upload my courses there before their launch so I will have to wait before I see anything there. 🙁
Amazon Video Direct
I was very excited about the prospect of selling videos on Amazon Video Direct when it “launched” around April 2016. There was a lot of talk of the retail giant moving into education. At the moment, however, we have a pretty graph but not a whole lot else.
It’s difficult to see how this is going to play out. So far, my material is mostly viewed for free by Amazon Prime members. Sales of actual courses has been slow and this is despite my sending traffic there through my email list. My revenues from the last quarter? $12. OK, so not a lot to write home about.
However, this is Amazon so we’ve got to keep our eyes on this one. Read here on how to sell video courses on Amazon Video Direct.
Other online learning platforms and deals sites
There are many more places where you can put courses. Don’t forget deals sites like StackSkills, Dealfuel, etc. And another online learning platform, Stone River eLearning, made me $250.05 this quarter. I also received a $100 payment from SkillSuccess because I recommended an instructor to them.
Kindle publishing is great for a personal brand. You can make sure your Amazon Kindle can be a bestseller and watch royalties flow in as well as introduce new audiences to your funnel. I haven’t written a book for over 8 months though so that is why sales have steadily decreased. Here are my seven Kindle book titles:
- 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
- Build a Brand, Create Products and Earn Passive Income
- Create the Website You Want with WordPress
- Free Your Thoughts: How I Re-programmed Myself For Happiness And How You Can Too
- Free Yourself, Leave Your Job and Be Your Own Boss: A Guide for Entrepreneurs
My book about the travelling has been put on the back-burner.
The red line above constitutes book sales; the blue line borrows.
|Period||Number of books sold|
OK. So if you’re paying attention, you’ll see my book revenues have increased while my sales have decreased. What’s that all about? I’ve changed my method of calculating the revenues. I’m collating the total from the payments that come into my bank account, rather than the figures from the sales dashboard on the KDP site. Why the difference? I have no idea. Maybe they’re including CreateSpace sales.
I’ve also decided to include my Audible earnings, $75.59. So the total from e-book, audiobook and paperback book sales on Amazon is: $632.80.
Sales of my PDF e-books
I’ve added these PDF e-books as $9 products in some of my auto-responder sequences – I believe that’s called a “tripwire” product?
|My product||2015 Q3||2015 Q4||2016 Q1||2016 Q2|
|Running a Web Design Business||$0.00||$27.35||$7.32||$32.84|
|How To Get Web & Graphic Design Clients by Blogging||$21.96||$21.98||$7.32||$14.64|
My membership site
I recently took one of my courses off Udemy and to sell exclusively my own site: Earn $5000+ a Month Passive Income Selling E-books and Video Courses. I’m also temporarily selling my new WordPress beginner course for $9 there – that’s the cheapest it’s available anywhere!
Google advertising income
This is revenue from ads on my YouTube channel as well as a little bit of Adsense on my website.
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. The links below are affiliate links!
|Affiliate product||2015 Q3||2015 Q4||2016 Q1||2016 Q2|
This quarter’s affiliate revenues are coming from:
WishList Member: $444.60;
Your Digital Formula – Steven Aitchison’s amazing program to sky-rocket your Facebook Likes: $79.60;
This article shows you how to make money with affiliate commissions by blogging.
I’ve left the most exciting bit until last! A new passive income stream!
Amazon FBA, eh?
At last! My Amazon FBA business is showing profit. But, as I explained in my article, Amazon FBA Business: How Much Money And Time Before I Got Profit?, this is profit on a per unit basis. I’ve spent at least $5000 setting up the business but hopefully that will be paid off soon. However, I’ll be investing in 2nd, 3rd, 4th products as well as buying in new inventory so it’s going to be difficult to calculate going forward.
Anyways, my per unit profit from Amazon FBA last quarter was: $2,030.10.
I’m not sure if it’ll be the same or more next quarter as I employed a ZonBlast to boost my rankings (at the moment that’s looking like an expensive flop but we’ll give it time).
So, if we add it all up. My passive income revenue in the second quarter of 2016 was: $16,227.70 that’s down from $19,596.61 last quarter.
Here are the expenses I’ve incurred for this quarter.
|What?||How much per quarter?|
|Outsourcing (Upwork, Freelancer and direct)||$1200 (est.)|
|Email marketing (Active Campaign)||$400|
|Cloud storage (Dropbox)||$30|
|Video storage (Vimeo)||$30|
|Domain registration (NameCheap)||$25|
|Monthly Amazon payment for selling on Amazon FBA||$40|
|AMZtracker (Amazon FBA tool)||$100|
|MerchantWords (Amazon FBA tool)||$9|
|FeedbackGenius (Amazon FBA tool)||$20|
Remember that some of these expenses are company expenses that are incurred to support my active income. For example, web hosting is needed for my web design business which isn’t passive.
But I always like to err on the side of caution with these income reports as I’d hate to exaggerate here (and I get haters that suggest I do). So, bear in mind that these figures are always an underestimation.
This quarter’s total passive income profit
So the revenue (16,227.70) minus the expenses ($2199) is … $14,028.70 … I’m actually quite happy with this. It’s low. Far from my best ($23,000+). But Udemy is now only 40% of my passive income revenues – whereas it used to be around 75%. This can be only good news.
Comparison with previous quarters
Target for next quarter
My target for next quarter, Quarter 3 2016, is: $20,000 passive income profits. I hit it one day!
Passive income – You can do it
I have a great free mini course on passive income if you’re interested (it’s filmed in Koh Samui and Chiang Mai, Thailand, exotic, eh?) But seriously, this is free info on how to make a decent income, grow an online personal brand, blog, collect email addresses, selling on YouTube, Udemy, Amazon, and your own site, etc., while sleeping well at night.
But this is not get rich quick! Remember, you’ve got to enjoy it. You’ve got to create value. And you’ve got to collect emails!
I’m interested to hear what you think in the comments.Remember, you've got to enjoy it, you've got to create value, and you've got to collect emails! Click To Tweet