This is how you earn money when you are not technically working.

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Can
28, 2019

Read for 4 minutes

The opinions expressed by the entrepreneur's contributors are their own.

Whether you're a professional athlete, a fitness professional, a musician, or any other person with certain skills or products, you don't always have to grind to earn income. Instead, you can leverage and scale your past efforts to generate residual income. In other words, you can make money even when you are not technically working.

This may sound like a sneaky trick, but it's just a smart business strategy. There are only so many hours a day and only so much of you that you can actively give. So if you set up passive sources of income, you can maximize your resources.

For example, at this year's South by Southwest (SXSW) conference, I spoke to free agent NFL linebacker Josh Martin, who most recently played for the New York Jets. Like any professional athlete, Martin only has a limited number of years to earn a salary directly from playing the game. The advice I gave him, as well as others in similar positions, is to create your own paywall.

Power the paywall

With a paywall, an entertainer or influencer can bill for exclusive access and content without having to create original content for each subscriber. Martin could, for example, found his own community in which he gives fitness and nutrition tips based on his experience as a professional athlete. While he would have to invest the work to create content such as different types of training plans for a variety of goals, he could passively earn income if people subscribed to his community and paid to access that knowledge.

The more paid subscribers someone gets, the more they can earn without necessarily having to work more. This concept is similar to how a musician or writer earns royalties – he creates the content once and can then earn from it as long as people buy it.

Rather than being limited by time or the ability to develop new products or services, the only limit on passive income is the number of people willing to pay for the offers.

If a fashion guru with a large Instagram fan base uses his expertise and popularity to generate active income through personal styling, for example, his income may be limited by the number of customers he can reach in one day. Even if they were to reach a level through live streaming, they would have to devote the time for each session, which could cost time for other paid work or their own free time. However, if you put this content behind a paywall, you can earn money not only at the moment, but at any time.

Build a committed community to earn residual income

Passive income is great, but not easy to get. To get there, a community must be built where people are willing to pay for something they value.

For example, a popular musician could have a dedicated community of fans willing to subscribe to bonus content, such as: B. Recordings of the musician on tour behind the scenes. However, if a musician never deals with his fans until he wants to sell them access, it may not be well received.

On the other hand, a lesser known artist might still be able to build a passive income stream if he has built a committed community, for example by being transparent about his art and personal life on social media for a while. Even if they don't have a large following, the quality of their engagement could mean that their community is more willing to pay for access.

In addition, your passive income stream need not be of any particular size. Regardless of whether you have five or 500 paid subscribers, residual income can still be a great source of income and no one needs to know the size of your paid audience. Over time, you can add more and more paid subscribers, giving you a stable source of income and more flexibility in how you want to spend your time.

You can find more videos of Carlos Gil on his YouTube channel here. Follow Carlos Gil on Instagram @ CarlosGil8

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