Instagram is rapidly becoming one of the most popular social media platforms. It is estimated that Instagram now has 500 million active users, up from 400 million one year ago (25% increase in 1 year). Instagram is very easy to navigate, and we have found that it is one of the quickest ways to build a following. My brother started an Instagram page only two and a half years ago, and just last month he reached the 1 million followers mark. He now posts advertisements for small to midsize companies, sells tee shirts through a third party, and is now making about $5,000 per month. He does all of this spending a total of less than 2 hours per day on his phone using the Instagram app.
Youtube is another great social media platform to generate passive income. Youtube has gotten so big in the last couple of years, you can literally find a video on almost anything you can imagine. What are you interested in? Think of something you are passionate about… maybe you like landscaping. Start up a youtube channel on “how to” seed a new lawn, or how to install a pond in the back yard. If you can film quality videos and you post them up on a regular basis, over time you will begin to gain subscribers. When your videos start getting lots and lots of views, you can start making money through Youtube’s revenue sharing advertising. Youtube attaches ads to your videos and they share the money they make generated from those ads with you.
This was one of my first businesses I started when I was just getting out of high school and the main thing that really taught me the value of passive income. Billboards have a few very high barriers to entry: 1) they are very costly to build, 2) there is fierce competition with the big companies and 3) local cities and counties have tough regulations, permits and restrictions on billboards. To get around these barriers, I bought several used mobile billboard trailers each that had 8′ x 12′ billboard faces on them. I usually paid about $1,000 for each used trailer billboard. Instead of towing them around town, I found good spots along the highway that I thought had high traffic counts. I proposed to rent ground space from the land owners, and usually paid about $50 per month to place my billboard on their land. I then painted “your ad here” and my phone number on the billboard face. You would be amazed at how many calls I would get from people interested in advertising on the billboard. I was usually able to rent each billboard sign for about $250 per month. That meant that I was making $200 profit for each billboard sign I had rented. As I continued to grow, I began building portable billboards (about the same size as the trailers) out of wood. Each one of these cost me about $400 and usually only took me a few hours to assemble. With just a few thousand dollars and some dedication, anyone could build up a small billboard business and generate a few thousand dollars a month almost totally passive.
Rent Out A Spare Bedroom
If you own your home, renting out a spare bedroom can be a great source of passive income. Some friends of mine own a five bedroom house, and decided that they were going to rent out a few of the bedrooms for extra income. At one point they had 3 roommates and over $1,800 per month coming in from the rent. The best part was that because they were careful about who they rented to, all 3 roommates were almost always out of the house because of work and other activities. They rarely had people over and basically just rented the room so they would have a place to sleep at night. If you don’t like the idea of someone “living” in your home, maybe you might explore the option of Airbnb. This basically allows you to treat your spare bedroom as a hotel room. Many people will gladly pay $40 per night to rent a clean spare bedroom in your house rather than stay at the run down motel in the ghetto that costs $60+ per night.
License Your Million Dollar Idea
Have you ever had a million dollar idea that you wish you would have invented? I have had tons of them. Sometimes turning an invention into a multimillion dollar project is a lot more work than it seems however. This is probably the reason that most people don’t actually do anything with their idea except talk about how they would have been rich if they would have invented that product but someone else finally stole their idea and made millions. Well, what if I told you that many companies are actually looking to pay people money for their million dollar ideas? That’s right, big companies will often be more than willing to pay you a royalty if you license your idea to them. Here is how it works: You take your million dollar idea to the big company. They sit down with you and you give them a pitch of your product and why it is going to make their company a lot of money. You show them a prototype along with facts and figures showing them why there is a big market for this product. If they like your product idea they may be willing to give you up to 5% of the total sales of the product. That means that if they sell $10 million worth of your product, you will be receiving a $500,000 royalty check in the mail. Often times you don’t even need a patent to do this. The company may be willing to pay for the costs of getting the idea patented for you. If you want to learn more about licensing your ideas, go read the book called “How to License Your Million Dollar Idea” by Harvey Reese. It can be found on Amazon.com by clicking here.