Is This The Way Forward For A Passive Income?

Ideally, the best way to make money is to have a passive income coming in each month.

It is the dream for many.

A lot of people strive to create a recurring passive income because it means that money is being deposited into their bank each and every month.

Truth is, creating a passive income can require quite a bit of work at first, and unless you have a system in place which outsources the running and managing of a passive income, it is going to be a semi-passive income really.

I for one would happily have a semi-passive recurring income over no monthly recurring income.

The reason for that is that the work involved running a semi-passive income stream can actually be very little.

The way forward for your own passive income is…

Own a business which has people paying you a recurring monthly subscription fee.

Before you panic and say that this is something that is out of your reach… it’s not.

Subscription focused businesses are everywhere. They surround you. You probably pay for several yourself already.

Mobile phone and internet providers are recurring subscription businesses.

TV and music streaming services like those listed below, are subscription businesses.

  • Disney Plus.
  • Netflix
  • Amazon Prime.
  • Britbox
  • ITV Hub.
  • Acorn TV.
  • Spotify
  • YouTube Premium.
  • Amazon Music.
  • Soundcloud (subscribe to specific individual musicians and artists).
  • Mixcloud (subscribe to specific individual musicians and artists).
  • Patreon (subscribe to specific individual content creators).

It’s not just music and television which has you paying a subscription. Many online newspapers are the same.

It happens regularly, I see an interesting article on social media, click through the link to read more, only to find that the article is on one of the many newspaper websites which requires readers to pay a small subscription fee to read their articles such as the New York Times or the Times.

Amazon Kindle and Audible also charge a subscription fee to access their products.

It is the way of the world today.

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Anyone and everyone is charging a subscription fee today.

What’s more, people are more used to paying subscription fees to access services and content.

That’s the point.

People are now so used to paying a small fee each month to access a product or service because they do it all the time.

Take music as an example, years ago people would buy records, tapes and CDs. Some music fans would spend a lot of money each month buying the latest releases.

Today, people stream music.

They have access to old, new and exclusive music 24 hours a day for the price of one album per month.

People also bought magazines from newsagents and supermarkets each month; some would subscribe directly and have them delivered to their homes.

Today, physical magazines are still being sold in newsagents and supermarkets, but like newspapers, a lot of them are now available online and charge a monthly subscription fee to access their content.

But it’s no longer the major publishers who are cashing in on these subscription business models.

Everyday people like you are making money selling subscriptions to products and services.

Thanks to the internet, the opportunity to build a subscription service where you can have a large number of paying subscribers is possible for anyone.

You could be living in a remote croft on Shetland, miles from the nearest neighbour, and still make money offering a product or service that has people paying you a subscription fee to access it.

It doesn’t matter where you or the customer is in the world; all that matters is that you offer something of value which is worth more than the fee you charge, and have a way to take and process payment.

Let’s say that you wanted to earn just £2,000 extra each month.

Here are the numbers you would need to make £2,000 at several monthly subscription price points.

£2.99 – 669 people = £2,000.31

£4.99 – 401 people = £2,000.99

£9.99 – 201 people = £2,007.99

£14.99 – 134 people = £2,008.66

£19.99 – 101 people = £2,018.99

Those figures do not include any fees that you need to pay to whichever payment processor you use.

As you can see, the cheaper monthly fee means that you need a larger amount of paying subscribers to generate the £2,000 target.

The larger the monthly fee such as £19.99, you will need less people.

A few things to remember here are:

  1. Thanks to the globally connectivity of the internet, you have the opportunity to find people from all over the world to buy your product or service. There is a huge pool of potential customers.
  1. A more expensive subscription product or service does not necessarily require more work to provide than a cheaper one.

The price of the product or service is a reflection of what it is and what it can do for a person. And so with that, it doesn’t necessarily take any longer to produce, in fact, it could be less.

A person providing a financial trading newsletter email at a price of £19.99 per month, may provide less written content than someone selling short fiction stories each month for the price of £4.99.

They would earn four times as much money for doing less work.

It’s all about what you provide and to whom.

It can take very little time to write a series of emails, update a website page, create a PDF newsletter or record a series of short video updates.

You do them just once, and get paid multiple times.

If you write four weekly email updates and sell them for a monthly subscription fee of £4.99, one customer would earn you just £4.99… but if you had 401 customers, those same four emails which you wrote would earn you £2,000.99.

It’s the same four emails.

The amount of work hasn’t increased, only the number of customers and the amount of income has increased.

I’ve given you a handful of price points, but there are some subscription businesses which charge £47, £97 and £197 per month.

You don’t need many people paying that to give you your desired £2,000. The more customers you get, the more money you will earn.

Once the income numbers are good, you can pay someone to do the necessary work allowing you to be completely hands off meaning that you now have a fully passive income.

Subscription businesses are the way forward for anyone who wants to earn a recurring passive income.

Discover more here:

How To Cash In With A Subscription Based Business

Kind Regards

John Harrison

PS… Once fully established, you could be earning thousands of pounds each month from work which takes less than a day.

A subscription based business is all about the numbers.

Give a large group of people something they want and need at a price they are happy to pay, and you can be paid multiple times for the one piece of work each and every month.

Here’s that link again:

How To Cash In With A Subscription Based Business