Imagine for a minute getting paid to do nothing. Every month, money just appears in your checking account without a finger lifted on your part. It’s like clockwork. Every month, the money comes in. The amount may vary month-to-month but usually stays around the same. This monthly account deposit is everyone’s best friend; passive income.
Many people think the only way to make money is to trade in their time. Whether you have a full-time job working 40 hours/week or are a consultant charging $150/hr, the amount of money you receive is dependent on the amount of time you put in. Work more, get paid more whether you’re going into overtime or burning the midnight oil as a consultant or contractor.
If you’ve never experienced passive income before, getting paid every month when you haven’t stepped foot outside your door to go to work seems crazy. It almost looks too good to be true but, I assure you, it’s not. It’s merely extending the payment model you’re used to over a long period. The work still must be done, but you are paid not based on your time but on the value your work delivers.
Passive income is a general term that refers to putting in work for a limited amount of time and getting paid for that work for years to come. Passive income can be achieved lots of ways from building software or an online service and providing a self-service checkout, writing a book and collecting royalties, writing an eBook and hosting it on a platform like Leanpub and receiving a share of the revenue, having blog sponsors or any other activity that requires work upfront with payments over time.
The Snowball Story
A great metaphor to explain passive income is to compare it to a snowball.
Imagine you’re outside on a snowy day, pick up some snow and make a snowball. The snow is that wet, sticky snow, so you’re able to create this snowball easily. Holding the snowball in your hand, it weighs no more than a few ounces. This is the money you receive from royalties your first month via your first course. Cute but nothing to write home about.
That snowball in your hand reminds you of the mountains, so you decide you need to climb Mt. Everest to achieve spiritual enlightenment. Just go with me here. You battle the elements and take your little snowball with you to the top as a reminder of where you came from.
Once you’re at the top, you then decide to free your little snowball and roll it down the mountain. At first, it merrily bounces along down the mountain but soon begins to grow mowing down shrubs, grow some more where it’s now pummeling small trees, roll down a few more thousand feet and it’s taking out entire basecamps! By the time it gets to the bottom of the mountain, it’s on a mission and soon takes out tiny Tibetan towns.
Your once cute little snowball has morphed into a monster consuming everything in its path. Now imagine that snowball is your money and the altitude is time. The farther down the mountain the snowball goes, the more work you do and the more value you create exponentially growing your snowball and the bigger your bank account gets. In this metaphor the snowball eventually stops; it’s simple physics. But in our real, passive income example, the money keeps coming in month after month forever!
Building Passive Income with E-learning Courses
Passive income comes in many forms, but here at TechSnips, we provide this nirvana-like service in the way of e-learning courses. The TechSnips Course program partners with leading training companies that need online courses and we also publish our own. Regardless of where the course is posted, it will always be made for sale and will always be consumed by students over time.
A course provides value to consumers not once or twice, but, typically, for years. Since that value is spread out over time, TechSnips and you, get paid for the work that we put into building that course over that timespan.
For a course to be successful, it needs to meet three rough criteria:
- It has to be marketed well and in front of potential students
- It has to be packaged well
- It has to be a well-produced, quality course that students can learn from
TechSnips and our partners take care of the first two criteria, and the third is up to you. We help you build the best course possible, but it’s ultimately up to you to make the course awesome. To develop your monster snowball, the key is quantity. The equation is simple; the more courses you produce, the more money you make and the longer your passive income will continue over time.
Let’s Talk Numbers
We’re talking passive income here, but we also need to speak to the upfront payments you get when authoring courses with TechSnips. When a course is completed, you will receive anywhere from $800 to $2000+. If you’ve decided to go lone ranger on the course and are the sole author, that entire amount is yours. If not, that amount is then split between any other authors that are also assigned to that course.
The upfront payment isn’t bad but hardly worth the 30-50+ hours of work that may go into a 2-hour course. The real money is in the passive income!
A snowball can start its journey at various sizes, and no two snowballs will take the same route down the mountain just like course royalties and revenue sharing. The size of the monster at the bottom depends on a multitude of factors, but it all comes down to popularity. The amount of passive income you receive depends on how favorited your course is with its audience.
For example, Pluralsight uses its own platform to host courses for students and pays royalties based on minutes viewed. Packt, on the other hand, distributes their courses amongst many different platforms and pays you based on a percentage of revenue earned from your course. Either way, you get paid more if your course is popular and less if no one wants to watch it.
Once you’re approved as a TechSnips course author, you can build courses for many different training companies all with a single platform.
It’s tough to determine how much you can anticipate receiving per month in passive income. The number all depends on the TechSnips course partner, the time of year, how good the partner is at marketing your course, if your course is aimed at beginners, intermediate or experts and more. With that being said, I can provide a big range. If you are the sole author on a course, you can expect anywhere from $20 – $2000/month. I told you it was a big range! I can’t, with a good conscience, tell you exactly how much you will make.
How much you make solely depends on your ability to teach a great course and how many courses you produce.
Get Started Today!
If you’re currently not a TechSnips contributor or are and have yet to get started on your first course and are not presently seeing passive income, what are you waiting for? Go outside, pick up some snow and let’s see what kind of monster we can build together!
Adam Bertram is a 20-year veteran of IT and experienced online business professional. He’s an entrepreneur, IT influencer, Microsoft MVP, blogger, trainer and content marketing writer for multiple technology companies. Adam is also the founder of the popular IT career development platform TechSnips.