Getting started on the road to passive income

Answering some questions on passive income

Sarah is new to the idea of creating passive income online. She's already working in a number of offline projects and has now turned her attentions to using the internet. She contacted me with a few questions that I thought I should share.

1. Do I need to have really good computer skills to make money online?
   There are two paths to choose between when first establishing a passive income stream online. The first involves creating products and perhaps the best example of these is ebooks (books distributed as PDFs or other digital formats). If you can type and have access to a word processing application, you can create an eBook.
   The second is to create a list of individuals or businesses with a common interest that may be interested in buying related products. For example, a list of people interested in generating passive income. (Beware of privacy and anti-spam laws when canvassing interest from individuals). Such a list could be created with as little as an internet connection and email program, but you can also adopt more sophisticated methods such as a website.

2. Is the Internet a good tool to make extra money or do you think it would be too hard because I’m not an Internet guru?
   There is no need to be an internet guru. Indeed, many of the people that are well-known in the industry (Mike Filsaime, Brett McFall, Peter Sun, Pete Miller, etc) are not at all techy. If you have an internet connection and email and you can type, you've got the makings of a passive income empire literally at your fingertips.
   Don't get me wrong - technology can improve your efficiency massively - but don't let a lack of knowledge deter you from starting. There are plenty of people with technical skills and knowledge that will be more than willing to help an enthusiastic 'newbie' on their journey...like me! :)

3. How much time and effort do I need to put in?
   This is one of the first questions you need to answer for yourself. The question is not how much you need to put in, but how much spare time you have, and how much of that you want to put in.
   Over time, you're likely to develop a number of income streams. What's important is not how much money they each bring in, but what the return on investment (ROI) of each is.
   Different products require different systems that require different investments in time. Decide first how much time you want to invest (and you're not going to get any money to start with, remember) and then look for compatible systems.

4. How much money can I make?
   There is simply no limit. However, my firm belief is that the success of any business is based on more than good ideas and hard work. I'd give a heap of sweat and hard work for a sniff of good luck, because that's often what it boils down to.

5. What do you need to do to make money online?
   Here's a good 3-point starter plan:

   1. Decide how much time you have/want to invest

   2. Set goals

   3. Look for ideas based on the above (and take everything you read with a pinch of salt...unless it's from me, of course!)

6. Do I need to spend any money to start?
   Did your email to me cost any money? Have I charged you for this advice? Seems to me that you've already started and it hasn't cost you anything, yet.
   Don't assume that you have to spend money to make money. It's not always the case, but does depend on your chosen industry (car plants and airplanes don't aren't cheap).
   Assuming you have a computer and access to the internet already, the only other thing I'd advise spending money on is a domain name. That will cost $39.95 for a 2 year registration of a com.au domain name (for which you need an ABN). Using services like domain-parking.com.au will allow you to establish an online presence for just the cost of the domain name.

I hope this has given some insight into how easy it is to start on the path towards generating passive income using the internet. I will be setting up an official mentoring program in the near future. If you'd like more information, or you have your own questions, please complete the request form below.

Thanks for reading.