Passive Income Business Model

Key Takeaways

hey everybody what's up this is Pat Flynn from the smart passive income blog and in 3 to four minutes I'm going to show you exactly what a passive income business model looks like I'm actually going to draw it out for you on the screen because I want to illustrate for you exactly how a person you can generate an income without having to be totally involved in your business your business can run on autopilot and all you're doing is you know sitting back and watching the money come in and it might sound kind of crazy but let me draw it out for you so you can show you exactly how it works this is how I run my business is and if you've read the 4our work week by Tim Ferris you know the you'll you'll see this is sort of familiar so let's say for example you have a website out there about something whatever it is that you're interested in or something that you're passionate about or something that you are an expert in you have a website out there and on that website you also sell an ebook a digital book or some type of digital product like a a course or maybe some audio product or something but for this example let's say you have an ebook so what happens is people will visit your website maybe through uh Google or Yahoo or Bing or maybe from a friend or a link on another site people will go to your website and maybe they're interested in your ebook maybe uh they you have something great to offer which I'm sure you will so you have an ebook and they're interested in buying it so what happens is when they want to make that purchase they enter their billing information you know you've gone through this process before into a payment processor and after they click submit what happens in this business model model is that the payment processor will automatically send this person an email with a link to download that ebook or a link to download that digital product that happens immediately after the payment and what happens at the same time is the money from that payment goes directly to you so let me ask you a question looking at this business model and and this is this is the entire business model here just kind of barebone structure of it where are you in this equation how are you involved in order for a transaction to process and and be fulfilled right here the the only part that you're involved in is money coming over to you and this is is this is exactly the passive income business model that I use and and it totally it totally works let me give you an example one of my sites at Green exam academy.com you can go there right now and see my picture just to so you know it's it's me green exam academy.com this is a site that I have to help people pass the lead exam which is an exam that people in the architecture and design and building industry take so they go to this site and you know I sell a number of ebooks and study guides and practice exams on this site so they go to my site they want to buy those things they go through the payment processor and immediately what happens after that payment is they go and get that email again with that information to download that ebook or study guide and I get the money you know I get an email that says you've just made $44.95 .95 and you know I'll wake up in the morning and I will see a number of those in my inbox and and it's amazing uh it's just it's just crazy because you don't have to be there in order for transaction to happen I can't stress that enough and that's the beauty behind it now the thing is it's not 100% hands off because first of all you want to increase the number of people that come to your site and that that's not just going to happen automatically so you're going to work on marketing and stuff like that to get more people into your website also uh conversions the getting the people who do come to your website to actually buy your ebook so that's going to take a little bit of work but again it's not you're not trading time for dollars you're actually investing your time you're investing your time in the marketing side of things uh just setting this whole thing up in the first place you're investing your time to earn money more money later down the road so you know it's not 100% hands-off and you may have to deal with customer service sometimes especially with these ebooks you know uh there there's people out there that don't know how to open zip file for example and hopefully you'll have something like an FAQ on your site that'll help them with that and you'll you'll be able to uh build an FAQ for whatever products you're selling over time uh you know just little tip make sure to keep all those questions that people have in some type of database so you can refer back to those in the future but this is it this is exactly what the passive income business model looks like so I hope that excites you now the thing is this is just one business you know I have several of these setups so I have you know a whole whole bunch of them working for me all driving money into my bank account uh all different kinds of things like iPhone applications now for iPhone applications for example it's not a website that is you know holding all the uh product the product being a you know an iPhone application it's the iTunes app store uh and you know they are also the payment processor so someone with an iPhone finds an app that they like that I built and they purchase it it automatically gets downloaded onto their iPhone at the same time money gets into my account uh there's just a lot of you know different examples of of passive income that can happen and down below you know if you're watching this video on the website down below you'll see links to three podcast episodes that's podcast 15 16 and 17 that'll share all the different types of passive income that you know can go through this model so that you can figure out kind of what excites you the most because some of you might like iPhone apps more than writing ebooks or you know whatever so really you know you can go through and and scroll through everything go to the bottom where all the different articles are and such but I would recommend if you have the time you know listen to podcast episodes number 15 16 and 17 it's a three-part series you know and listen to it in your car or at the gym or even at work on a break of course uh and and and you know figure out what you want to do because uh this is this is a great place to start this is why I built this page this is why I reshot this video uh for you um I actually shot this this in the past but I wanted to redo it for you specifically uh because you landed here on this kind of Welcome or start here page so thank you for viewing this I hope this all makes sense uh if you have any questions please feel free to contact me Pat smartpassiveincome.com let me know what you think um yeah love to hear from you and again episode 15 of the smart passive income podcast go there now if you have the chance thanks take care bye