Every three months I detail all the passive income profit my online business has earned. Passive income is money you can earn in your sleep. Or, to put it another way, money you earn from a business asset – for example, the selling of a digital product. If you sell more of the product, you therefore make more money without having to work more.
I know my passive income reports have proved useful to other entrepreneurs and business owners and I’m delighted for that. However, the last report showed a profit drop which has caused me to re-evaluate my business – more of that later.Passive income is money you earn in your sleep because you have built (or own) an asset Click To Tweet
My passive income
As I say, passive income is income you can earn in your sleep. My various passive income streams include: the sales of digital products (such as e-books and video courses), affiliate commissions and advertising revenue.
Last quarter I made $13,578.49 passive income profit. The target for this quarter is $25,000. Let’s see how I got on.
I had been averaging over $5000 per month. This quarter, again, we only got only $11,646.15 – less than the $15+k quarters of a few months back. And I released a new course in this quarter.
I’m looking forward to the last quarter of the year (which includes the best month – November) to see how we get on.
Big news: Skillfeed, another online learning platform, decided to shut up shop on September 30th 2015. The income was around $400 a month. Nice while it lasted. But there will be no more from Skillfeed. 🙁
Skillshare is hopefully going to “replace” the earnings I’ll lose from Skillfeed. I do seem to be gaining traction on this platform.
Other online learning platforms and deals sites
There are many more places where you can put courses. I’m sure there is more money to be made out there. For example, Stone River eLearning made me: $146.90 this quarter. And, Dealfuel, which is a “Deals” site, I made $116.39 in revenue from them in the last three months.
Here’s an article I wrote about alternatives to Udemy.
Kindle publishing is great for a personal brand like mine. Having multiple Amazon bestselling books certainly sounds good but I’m not sure if the meagre revenue is a great return for the amount of time I’ve put in to writing, publishing and publicising the following seven 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
- 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
Again this is plateauing at a lower level than before despite having more books.
The red line above constitutes book sales. The three peaks are from promos – either from an email promo to my newsletter subscribers or from Buck Books.
The blue line above are the amount of pages read by the people who’ve “borrowed” or downloaded my book through the Kindle Unlimited program. I have been making less money since Amazon changed the commission structure for Kindle Unlimited.
|Period||Number of books sold|
So, I have revised my Kindle strategy. I won’t be writing any new books in the foreseeable future but, instead, I’ll be updating old titles and re-promoting them. I’ll tell you more about this in subsequent blog posts.
My membership site
A bit of good news! (Well, it’s all good, but … )
Back in Q1, I did a “Jeff Walker style” launch of my course: Earn $5000+ a Month Passive Income Selling E-books and Video Courses. This involved creating 4 free videos of 15 minutes each and a lot of extra work. And in that quarter I made $3,681. But in this quarter, Q3, I did very little except mail my list about a special discount on one of my courses and I made $2405.01 in sales.
So, no more “Jeff Walker style” launches. But plenty more one-off course discounting for my subscribers.
Google advertising income
This is revenue from ads on my YouTube channel as well as a little bit of Adsense on my website.
A friend of mine suggested I reduce the Adsense on my site which may account for the slight drop here.
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||2014 Q4||2015 Q1||2015 Q2||2015 Q3|
|Genesis WordPress theme||$253.53||$777.95||$240.28||$298.14|
|WPML WordPress Multi-Lingual plugin||$885||$712||$675||$296|
|Aweber email marketing and delivery||$72.90||$77.70||$86.40||$104.70|
This article shows you how to make money with affiliate commissions by blogging.
So, if we add it all up. My passive income revenue in the third quarter of 2015 was: $19,027.20 that’s slightly up from $17,708.49 last quarter.
Here are the expenses I’ve incurred for this quarter.
|What?||How much per quarter?|
|Outsourcing (oDesk, Elance and direct)||$1800 (est.)|
|Email marketing (Aweber)||$400|
|Cloud storage (Dropbox)||$30|
|Video storage (Vimeo)||$30|
|Audio storage (Libsyn)||$30|
|Domain registration (NameCheap)||$25|
|Kindle editing, formatting, and promos||$400|
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. So, bear in mind that these figures are always an underestimation.
This quarter’s total passive income profit
So the revenue ($19,027.20) minus the expenses ($3,000) is … $16,027.20 which is, again a slight improvement on last quarter’s $13,578.49 – but still far from my best.
This lower plateauing has caused me to re-think a lot of my business strategies. I will explain more about this in a subsequent article on this blog.
A really important point is this. Profit size isn’t important! OK. Money is important to business but so is re-investing profits. I’ve suddenly realised a really painful truth: I have been holding back from spending money because I’ve wanted to show larger profits here and that is really stupid!
I will be investing a lot more of my profits from now on in various areas. Some I will tell you about; some I won’t. As I say, stay tuned for further developments.If your business has a surplus of cash, reinvest the profits to grow further Click To Tweet
Comparison with previous quarters
Target for next quarter
My target for next quarter, Quarter 4 2015, is: $20,000 passive income profits.
Previous passive income and business reports
You can do it
You can make this much passive income if you just follow what I’ve done. All the details can be found here in my free mini course on passive income.
I’m interested to hear what you think in the comments.Yet more evidence that you can earn life changing passive income from great content Click To Tweet