 Why don't most people have sources of passive income? Well, it's usually because they haven't built any. See, you don't just magically get passive income. You actually have to build something first. And that's where most people get it wrong. Today, I'm going to break down my seven sources of passive income and tell you the biggest mistakes people make in building these seven sources along the way. Let's get into it. The easiest way to explain passive income is imagine that you own a house or you want to build a house so that you can rent it out to tenants. Now, once you build that house, you will get rent checks from those tenants every single month, whether you're on the beach or taking a nap or just taking the month off, right? That's what we consider passive income, meaning you're not trading your hours for dollars. Now, in the modern age, we can build physical assets with a hammer and wood, like a house, and we can rent that out, or we can use what's called technological leverage. And we can build what's called digital assets. These are things like online courses, iPhone apps, software, affiliate revenue, things like this, things where we've used the power of technology to get what's called leverage, meaning we have things doing work for us when we're not even around. Now, the problem that most people have with passive income is they want instant gratification because they're used to going to a job and what happens? They put in their hours, they get that paycheck every two weeks. If they don't get the paycheck, something's wrong and they'll have to quit or have a conversation with their boss. Now imagine you're building a house and you break ground on day one, right? The contractors are digging the hole in the ground and you show up at 4pm and you go, where are the rent checks? And the contractor says, what, dude, what are you talking about? It's day one. We just broke ground. We haven't even built the house yet. That would be absurd, right? And you would never think to do that with a house. But this is what most people do with digital assets. As soon as they break ground, day one, they start learning about how to build a digital asset, how to build an online course, how to start an online business, how to provide an online service, how to start a YouTube channel, a podcast, things like that. And the minute they're not getting the results they want because they haven't built the house yet they give up and they quit. So if you can just delay your gratification, delay expectations to actually make that income, that's how you get to the point like I'm at where you actually have seven or eight sources of passive income. So let's talk about each one so you can figure out which source of passive income is for you. Because I can tell you if you're only relying on a job, we need nothing more than the past year to prove to you that that is not a smart idea. I have been saying this for years with enthusiasm and people have not listened to me and people just go along and they think, well, I have the job now, so I don't have to worry. And of course, none of us could have seen this pandemic coming, but we're never going to see the blacks want to end coming. We're never going to see the financial meltdown. We're never going to see that artificial intelligence that wipes our job out completely. We're never going to see when our company outsources our role overseas and our job is gone. So there's always going to be unexpected events. We have to prepare now. We have to adapt to change. So my passive income source number one is digital products. This is basically cloning myself. It's making a blueprint of the things I'm already good at and turning it into digital form. So I sell probably about a dozen different online courses and different subjects, a couple of them are my main projects, but I have it in different niches. So I have business courses, I have snowboarding courses, I have courses in all sorts of things. And what I do is I just make a blueprint of my knowledge that I already have in something and I turn it into a digital asset. I build it up. I figure out the marketing angles. And then once the system works, I let it run on its own. So source number one, digital products. If you want to learn how to build those, check out blockbuster courses. I lay it all out in detail. It took me about three years of intense study to figure out how to actually make this work. Now, if you're wondering what makes a digital product work, it's actually figuring out the marketing that allows you to acquire customers who are less than they're worth to you. So if you can use paid advertising, that's what makes it passive income because you're getting technological leverage by using ads instead of you going out there and having to sell this course yourself. So the way we do that is through superior marketing, we reduce our ad costs with those marketing hooks. We'll teach you that in blockbuster courses. So passive income source number two is software. This is that leverage we're talking about those digital assets. So I learned this by developing iPhone apps. Now, I'm not a developer. I've never coded anything in my entire life. So I'd hire it out just like building a house just like you hire a contractor. We would develop those apps. We'd sell them in the app store. I'd get passive income every single day. And then I eventually sold those apps and got rid of them because I was sick of updating them every time there was an operating system update on the iPhone. But today I have software that is in your internet browser. So it doesn't need to be updated every time Apple decides to change something. So it's passive income source number two is software. And again, you don't have to be a developer. I've never coded anything in my life. When I develop software, I hire it out. Again, like building the house, people don't want to spend money upfront to build a digital asset, but you can't build a house without spending money on it. Doesn't have to be a lot. With the internet, you can spend a thousand bucks and develop a piece of software and sell that over and over again. Okay. Passive income source number three is affiliate income. What this is is if you refer somebody a new customer, they gave you a cut of that customer's income. So for example, ClickFunnels is one company that I work with as an affiliate. And if I refer people to ClickFunnels, it's a piece of software. They'll pay me something like 40% of that customer's monthly fee. And so I can't tell you right off the top of my head exactly how much I made an affiliate income last year, but I can tell you I definitely made more than an entry level job makes. And that's something that I never had to touch once. It's just completely set up in my system. I don't even look at it. Those checks just come in month after month. So that's source number three of passive income affiliate income. Source number four is credit card rewards. Now you might not think this is a lot, but if you have an advertising based business, which I just told you your other digital assets can run on advertising, then you actually get cash back every single month. And so if I spend $100,000 on my credit card and advertising in a month, and if you think, whoa, whoa, Christian, I don't have $100,000. How could I ever do that? That's not coming out of my pocket. That's coming from the credit card company and the customers bring more money back in. So I never see that money go out of my bank account, but the credit card company loves it when I spend that with them, they get processing fees and all that. And so I make cash back rewards. Now you can imagine if I spend $100,000 a month that can add up to a couple thousand dollars a month in cashback rewards. So all of a sudden all of my living expenses, my clothes, my food, my nights out, my coffees, my lattes, all of that can be paid for with that couple thousand dollars a month. Anything I want to name is on. I just use my credit card points and it's free. So I have no cash going out in that way. So that's passive income source number four, especially if you own an advertising business. But prior to this, I used what's called travel hacking and I would travel all around the world and get flights for free just by putting my daily expenses, things I'm spending money on anyways, insurance, utilities, things like that on the right credit cards, getting those rewards and then using that to redeem for flights and hotels. And I traveled for years for free like that. So credit card rewards is an actual source of passive income for me and it should be for you too. And if you're scared of credit cards, you don't understand them. Credit cards are an amazing thing. It's a cash flow tool that you can use to enhance your business and your life. You just have to know how to manage them. Passive income source number five is ad revenue. So I have multiple YouTube channels and I'm still building these channels up. So it's not my biggest source of revenue, but I do get what's called a mailbox check every month from YouTube, which means it's just a check that shows up in my account. I don't even have to think about it or look at it. So from those channels, I'm getting mailbox checks. I'm getting that money deposited into my account from ad revenue. That's from ads that YouTube shows on my channel. And then they pay me a percentage of that ad from the revenue they got from the actual advertiser. So that's some of the most passive income you can possibly have. Of course, you have to build it. If you don't build the YouTube channel, then you won't get that mailbox check. So again, it's like the house, spend the time to build it up front and then down the line, you get paid. And this is what most people just can't wrap their head around with passive income is delayed gratification. I'll say it again one more time because I see so many people want it right away. That's not how it works. If you want passive income, you gotta be patient and hang in there. So passive income source number six is what's called forced appreciation. Now I've heard people preach that owning your own home is a bad idea or it's a bad financial decision. And I just think this is a ridiculous thing to say. How can you say if something is a bad investment if you don't know how much I paid for it? What if somebody gave me a house for free and then I get to sell full market value? Don't you think that was a good investment? Yeah. So you cannot judge an asset class without knowing the specifics of the investment. So one of my sources of passive income is buying and selling homes. I bought and sold at least seven homes in my life and I've made money on every single one. And the way that you do this is you buy low. So you make your money in real estate when you buy, not when you sell. And that's where forced appreciation comes in. I'm not forcing the house to appreciate beyond market value. What I'm doing is I'm buying it under market value and then I'm forcing it to appreciate to actual market value. Usually this involves fixing it up or something like that, but it could just mean buying it from a distressed seller who needs to sell now. I know how to move quick deals like this. They really take kind of like some fortitude intestinal fortitude is a phrase I've heard before. You need to be able to make really big decisions really quickly and be aggressive. So for example, just one small tip in real estate is if you are not sure if you can figure out the financing for property or not, or you're not sure if you're going to be able to make the deal work, you can put that deal under contract immediately to make sure nobody else scoops it up. And then you can have contingencies in those contracts. These are clauses that allow you to get out of the contract if things don't go well. So if you can't figure out that financing after you get under contract, you can get out of that contract. But if you waited until you figured out the financing to make that offer, somebody else scooped it up before you. So you have to be able to make big decisions very quickly and you can buy real estate at a reduced price by finding the right deals and then you can sell it. Now, if you live in that property for two out of the last five years, you get a tax exemption on the first $250,000 in gains for a single person and $500,000 in gains for a married couple. So if you just live on the life plan of buying a new house that's undervalued every two years and then you sell it after two years, you get tax-free gains, you can do that over and over again throughout your entire life. So that's an easy way to force appreciation, buy it at a discount, fix it up if it needs it, make sure that the numbers work and then sell the house after two years, get those tax-free gains. So that's the sixth way that I make what I call passive income. You just buy a house, you live in it and you sell it after two years. I don't know what's really more passive than that, especially if you're buying nice houses at a discount. Now you're going to know how to find them or just have the right people in your corner. This house I'm in right now, my friends who are in real estate found this for me. So I didn't have to do the heavy legwork. I just made the decision quickly, we got a good deal and I'll make money on this in two years if I sell it. And then the seventh source of passive income is rental income. This is the traditional one that I talked about in the beginning. So in the past, I have Airbnb and my properties, these same properties that I buy at a discount and then I sell. If I want to go away and I want to travel for six months, I can go ahead and just Airbnb that out or rent it to a midterm renter or a longterm renter. So I've even rented properties for two years at once before. So that's the most traditional asset class when we usually think of passive income is real estate. Now real estate, again, if you buy it properly, if you buy it right and you know your numbers is an amazing investment, don't let anybody tell you that owning your own home is not a good investment. It depends what you buy it for. If you buy at the top of the market and you don't get a discount, you don't know how to buy distressed assets, then yeah, you might lose money on the house. If you buy low and you sell high, just like every other asset class, you're going to make money on that property. So that's it. The seven sources of passive income that I have in my business in 2021. Again, all of these took time and effort to build, all of them I had to use delayed gratification. I had to finish that house before I started getting rent checks. So let me know in the comments, do you have passive income right now or you're relying on one source of income, whether it's one business or one job. If you are, what sources do you plan to build in 2021 and do you think you can be patient? And of course, don't forget to subscribe to this channel for more info just like this. We're going to be talking about more passive income ideas in 2021 and beyond. I'm going to break down how I make millions and millions of dollars in revenue and show you each source and how you can do the same for yourself. So hit subscribe, like the video for the algorithm. That's all for today. It's Christian, the work from anywhere digital marketing guy. See you on the next one.