Ideas for creating passive income

Ideas for creating passive income
  • Feb 18, 2016

Ideas for creating passive income

Generating a passive income stream requires ongoing work. The best time to start is now, because it is as much a mindset as it is a skill. Develop long term habits in the way you work and start earning passive income.

If you ask your web developer if he can create a passive income stream for you - you may be asking the wrong question.

If you asked have you successfully created a passive income stream for yourself, a client and across various industries you may get some insight into your chances of success.

Shopping Cart DressWhy across various industries?
Every web developer is entitled to a few failures - as with start-ups with the cost of entry being low the chances of success are also low. Also the odd fluke is possible so if your web developer has a habit of creating good income streams for clients it is a good sign.

If you listen to every CEO who explains the sudden downfall in a company - it is certainly not the same pitch that got them the CEO job in the first place.

No one is directly paying me to write this article but it will actually contribute to my passive income stream but it is hard to place an actual value on day to day work.
It's a bit like the old marketing saying -:

"Half of your marketing budget is wasted, the trouble is you don't know which half"

Half of your marketing budget is wasted, the trouble is you don't know which half

Marketing Lecturer Truth in Advertising

So whilst we are on a roll let's take a swing at the marketing gurus out there. The first thing they do is market themselves, second is often rearrange the deck chairs on a failed idea, third is explain that because you didn't follow every nuance of their 'standard' ideas it failed.

Cynical I know but from my position as a web developer occasionally meeting a 'marketing' person who get's the money first and may produce results, I took a disliking to being labelled the scape goat when a fundamental strategy was not tested or had little hope anyway. We need to look for ideas with a chance of success.

We often have more ideas than time so how do we concentrate on the ideas with most chance of success?

Testing Ideas for passive income - Failures can be good teachers

Even the best ideas for passive income need to be tested.

I lament one potential idea failed because the wrong assumptions were made early in the strategy - it was assumed that a plumber would want to install a water saving device for a certain fee.
This could have been tested by 5 phone calls and it decimated an acclaimed product.
Hence the designer had a great idea, it was unique, patented, had potential growth but the fundamental research did not include asking plumbers (the key installation personnel) how much they needed to install the device.
It turns out plumbers do not like driving to a location to make $50 in total - not when they can make $200. This was simple research, no where near as difficult as actually creating the product - but it turns out being the demise of the entire business.

Can the idea be easily copied?

We live in a copy cat society where people compete and constantly look over their shoulder at the competition. If your idea can be easily copied it will be. So build in some difficult to emulate strategies. Here is a simple example - that company that bugs you from India cannot create a simple effective video that promotes your business - then make that part of your strategy. You may have a geographical advantage to use.

Passive Income Cycle

Case Study - Adding value to a business

Hearing Aids
Hearing aids in Australia is an industry with barriers to entry, government regulation and what could loosely be termed as a cabal of European operators not competing on price, nor service either apparently according to some clients who contact us.
Large European based manufacturers bought up a lot of independent audiologist owned centres in Australia.
Marketing to hearing aid wearers in traditional forms (magazine, news papers, radio and TV) is expensive because most people reading are not remotely interested in your product unless it's for a person they know.
Hence you have a barrier for entry, a large market and a small number of competitors - a perfect opportunity if you can enter that market.
Most importantly our research discovered virtually no one would print hearing aid prices in Australia.
Enter the disruption of the hearing aid industry in Australia by simply putting prices online. This strategy worked.

Testing the market first
'I'll throw up a website and let's see what happens'
What happened is history now but it turns out many people were absolutely frustrated with the Hearing Aid industry that refused to be transparent with costs.
Many sons and daughters were interested in helping their parents not get ripped off. Those sons, daughters and parents themselves were used to looking up prices and being able to make easy comparisons on the Internet.

What they found with the hearing aid industry was attempts to avoid publishing prices.

They did not want to see pictures of senior people smiling 'trust us' - plenty of young and young at heart just wanted to know what the prices of the things are and whether they work or not.

I created a series of websites that reduced the expenses of independent Hearing Aid specialists. They were able to reduce advertising costs and offer quality service over all brands - they did not have quotas of a specific brand imposed on them.

The important issue here was to only expand in a controlled way and ensure the issues of poor service that plagued some chains were avoided.
I wanted to increase the market pie for hearing aids in Australia and offer independent advice by qualified audiologists.

'First of' Benefit

Just because someone is doing something does not mean you shouldn't try yourself.
Some industries are super competitive and others can supply niches. Some people will not enter a market because it is already done. You may actually broaden the market or you may see opportunities currently ignored by the competition.

The Role of SEO

My platform is designed around SEO Search Engine Optimisation. Ever since as an IT lecturer at Griffith University I came across a paper about Google written by the original creators. That framed a mindset as to how a search engine fundamentally works.
This allowed me to create a platform that second guesses what a search engine would do to rank content. There are over 400 things.
Some aspects of my platform are unique - it is built to be lean and fast - something that is impossible to do with some platforms that provide everything on every page just in case you need it.
Well enter the search crawly that operates on a budget - it likes lean fast compliant code so it can quickly check if a page has changed and continue.
No SEO has a sure system to get you to the top of Google - we just have lot's of proven techniques that have a better chance of getting you to the top of Google.
Not everything we create is our own - there are some excellent helper products out there written by talented programmers. Check our article on SEO Competitor Analysis because if an SEO is engaging in illegal link buying schemes they are not only going to be expensive but could leave your business decimated from an SEO perspective.

Social Media

Having worked with award winning social media people (yes call and I will pass on their details) it seems that social media on it's own is not a skill. Include film making, award winning journalism, graphic design and media savviness then you have a social media expert.
The kid who plays with his mobile phone all day cannot compete against the multi-skilled professional.

Payments now - getting paid

Sometimes you only get a few seconds to get a sale - attention spans being what they are.
If the website is too clumsy or slow and does not eliminate all distractions when it comes to making a sale you can lose that sale.
A simply example could be a site with multiple ads happening on the final sales page - you must be kidding - give no buttons or options except to buy the products and you will sell more.

Mobile Site

A site designed for mobile devices is a must. Simple code that can remove content on a mobile device to avoid scrolling is also important. A responsive site is  a site that has CSS code created to adjust to various screen sizes. How responsive is your site? Test it by resizing the browser window.

Now that you have got this far!

Have you got an idea after reading this? The first thing I would do is NOT run down to the patent office. Who wants to defend the inevitable breach anyway.
A decent web developer will not rip off your idea, they will help you achieve it.

I have plenty of dumb ideas myself why take yours

A web developer is usually interested in long term 'passive income' not get rich quick schemes. The first thing to do is to apply some tests as mentioned above - does the idea stand up?
Throw up a website and see if it gains interest. Test the market. You may be the team to create the idea and find you are better off with others implementing it.
I failed to mention the 20 or so sites I have created that didn't have instant success - but those 'failures' or things that didn't make enough money to warrant further expense allow us to make better judgements for the good ideas that work.

In today's financial world, an exponentially greater valuation is attributed to a business that can successfully convince investors they have "subscribers" (re-occurring revenue) rather than plain old "customers."

Robert J. Pera Chairman / CEO, Ubiquiti Networks

Other Articles

Nov 5, 2020 Artificial Intelligence by Google
Aug 20, 2020 ACCC and News Corp vs Google and Facebook
Aug 7, 2020 YouTube Tips and Shortcuts
Jun 1, 2020 Web Video Marketing
May 20, 2020 Is that car oil leak serious?
May 14, 2020 Need a Motor Vehicle Accident Lawyer?
May 12, 2020 A kid in a lolly shop
Apr 21, 2020 River Cruise Gold Coast
Apr 14, 2020 Humans need ants to survive
Mar 31, 2020 Online Strategies for COVID-19
Feb 10, 2020 SEO Competitor Analysis
Jan 8, 2020 Writing for SEO
Jan 6, 2020 Influential Climate Change Journalists
Dec 13, 2019 Issues with Wordpress
Dec 4, 2019 Corporate Governance and Embracing the Web
Oct 9, 2019 SEO Tools for Leverage
Sep 5, 2019 Is Your Home Killing You or just making you sick?
Aug 28, 2019 Anxiety as a Contagion
Aug 22, 2019 HAPPINESS - Why Should We Believe Hilda?
Aug 12, 2019 What Communication Style Do You Use?
Aug 7, 2019 Telling your story
Jul 15, 2019 Business for Sale - Gold Coast
Jul 9, 2019 NDIS Support Coordination
Jun 18, 2019 Counselling De-Mystifying the Psycho in Therapy
Jun 6, 2019 How does NDIS pricing work?
May 14, 2019 INSPECTIONS Buildings, Pests and Electrical
Mar 15, 2019 Memorial Stationary
Mar 5, 2019 The Renewable Energy Race
Feb 14, 2019 PDF - Perfect Document Format
Feb 11, 2019 Climate Change, Power and Politics
Jan 31, 2019 Built to Rent
Jan 14, 2019 Swimming Pool Dreaming
Jan 8, 2019 The Moving Story of Max & Co.
Dec 31, 2018 Finding your core
Oct 9, 2018 Anatomy of a local Google Search
Sep 19, 2018 A French Affair and Dangerous Liaisons
Sep 17, 2018 Break-even Analysis for Bookkeeping
Aug 23, 2018 Recycled Timber Architecture Features
Aug 9, 2018 The Un-natural Art of the Wheel
Aug 3, 2018 How much should you spend on a website?
Jul 24, 2018 A Brief History of Kimono and Obi
Jul 11, 2018 Southport Mechanic
Jul 11, 2018 What do we mean by home automation?
Jun 6, 2018 Seeing Red over Cola
May 28, 2018 Why a Multi-Skilled SEO offers better value
May 11, 2018 How does the DREAM turn into a SCREAM?
May 7, 2018 The Alarming History of Geese, Dogs and Bells
Apr 5, 2018 Air Spider
Mar 13, 2018 Planting a hedge fence
Feb 9, 2018 Life Saving Tyre Accessories
Feb 6, 2018 The bakers oven stops
Dec 6, 2017 Relationship Counselling - the volatile couple
Oct 25, 2017 Plumbing, the Ancient Art of Managing Water
Oct 11, 2017 The Secret Life of Micropiles
Sep 29, 2017 Foundation Underpinning
Sep 8, 2017 Termites the secretive pest
Sep 7, 2017 Sharing your Google Analytics
Sep 5, 2017 Website speed test claims put to the test
Aug 23, 2017 Custom Timber Dining Tables
Jun 23, 2017 Kitchen Renovation Alfresco BBQ
Jun 12, 2017 Hire a photo booth
May 10, 2017 My Site Dropped out of Google
Apr 20, 2017 Recycled Timber comes with a story
Apr 8, 2017 Light Up Your Home
Dec 12, 2016 Evolving eCommerce with SEO
Dec 5, 2016 Image Manager 4 Released
Oct 14, 2016 Classic Gold Coast
Sep 26, 2016 Techheads who can market
Sep 9, 2016 Issues with childhood photography
Aug 30, 2016 Never Make an Impulse Appliance Purchase
Aug 15, 2016 Using the potential of YouTube
Aug 2, 2016 How to add a review to Google Places
Jul 26, 2016 Servicing your air-conditioner
Jul 22, 2016 Eco-friendly Home Building
Jun 13, 2016 Timber Floors
May 13, 2016 Timber Furniture Gold Coast
Apr 13, 2016 Interactive Charts
Jan 29, 2016 Better Childhood Photography
Dec 30, 2015 Gold Coast Real Estate
Nov 20, 2015 Feed-in Solar Tariffs Queensland
Nov 5, 2015 Kindergarten Photographers
Sep 23, 2015 Low Budget High Impact Web Videos
Sep 8, 2015 Pool Inspection Laws Queensland
Jul 23, 2015 Protection against power surges
Jul 13, 2015 Intelligent Security Systems
Jun 17, 2015 Advanced Security Cameras
Jan 15, 2015 Is your security provider licensed?
Jan 6, 2015 Inspired by Necessity
Dec 7, 2014 Social Media vs SEO for sales generation
Nov 1, 2014 Responsive Websites vs a Mobile version
Sep 8, 2014 Simplify Writing - Get that job
Apr 8, 2014 Cockroaches like BBQs too
Mar 27, 2014 Admin System Mark 3
Feb 12, 2014 HTML5 improving SEO and Social Interaction
Jan 17, 2014 TV Commercials with impact - on time
Dec 2, 2013 Negative SEO
Nov 29, 2013 A flexible e-mail system
Nov 13, 2013 Social Media Strategies for SEO
Oct 15, 2013 Web Video Production
Sep 26, 2013 Soft drinks can damage your teeth?
Aug 29, 2013 Haridresser Gold Coast
Aug 26, 2013 Boat Hire Gold Coast
Aug 6, 2013 Dental Site Videos
Aug 3, 2013 Gold Coast Tradesman Directory
Jul 2, 2013 Creating audio for your site via your iPhone
Apr 23, 2013 Yellow Pages Google Partnership Unfair
Aug 17, 2012 Facebook Account Security
Jul 6, 2012 Gold Coast a great place to Study
Dec 22, 2011 New Real Estate System
Oct 17, 2011 Managing your domains a quick guide
Apr 4, 2011 Our Facebook Application
Feb 1, 2011 Video Marketing
Jan 5, 2011 Questions to ask your web developer
Dec 28, 2010 Surfboard for sale site launched
Dec 28, 2010 Health and Fitness sites
Dec 9, 2010 Why is my content management system so slow?
Nov 26, 2010 Google now includes local places results
Oct 31, 2010 Getting Listed on Google Places very important
Oct 19, 2010 Security Systems site launched
Sep 28, 2010 Google Personalized Searches
Sep 13, 2010 Web Marketing To Green or Not to Green? Beware!
Sep 9, 2010 Jet ski or Jet boat Gold Coast
Jul 19, 2010 Java Web Hosting
Jul 7, 2010 Assess your eCommerce opportunities
Jun 11, 2010 DIY SEO
May 26, 2010 Planning a website
Apr 22, 2010 Enhanced Email Marketing Tool for your website
Apr 12, 2010 Site Speed is important for Google
Mar 26, 2010 360 degree Panoramas + Google Maps

A Gold Coast SEO and Web Developer