Passive Income Automation: An Example

Published: November 8, 2020 at 12:56 pm

Last Updated on November 8, 2020 at 12:56 pm

Here is an example of passive income automation. It seems obvious when you think about it, but not enough people pay attention to the fact that if income has to be really passive, then a major part of it has to be automated. We have been discussing the importance of passive income in a series of articles, and this is the next part.

Also, in this series: (1) Passive income is a crucial part of your retirement plan: How to get started (2) Passive income examples that work in more ways than one! (3) Can I invest in real estate for passive income after retirement?

An email funnel is an excellent way to automate passive income generation. A digital product like an e-book is one way to create passive income. For the book to sell, the content should be useful and unique. The effort to create this is one-time. For this to qualify as a passive income source, it must sell consistently say, ten sales a month.

Automation is essential to achieve this. This can be done in two ways: (a) exploiting the natural traffic to a website or (b) paid advertising. In both ways, the medium is email.

Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!
🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥

Suppose you are a financial advisor looking to get more clients. You have a website, and you write articles from time to time. There is a form in your site where readers can register their email to get article updates.

  • Step 1: Immediately after they register, you send them a welcome email, explaining what your site is about and some resources they can explore.
  • Step 2: After a day or so, you send them another email with links to three different articles or pdf files. (a) If you are below 30, this a money management checklist; (b) if you are between 30-40, you should be at this stage; (c) if you are above 40, are you ready for retirement?. These files are free.
  • Step 3: Another couple of days later, you point to another three files for the three different age groups. These are paid e-books or podcasts or videos with solutions to the steps or problems mentioned in the above step.
  • Step 4: Another email mentioning your financial advisory service. (you can send this only to those who opened email 2 or 3 or 4!)

You can even push your active income product (financial advisory) instead of the paid e-book. As new visitors come to your site, some of them may sign up for article updates (or the three free pdfs in step 2), some of will read email 1, a smaller number may read email 2 and an even smaller no, email 3 and a handful would actually buy your products. You can safely expect about 1 in 100 people who sign up to pay. If your content is excellent, this could go up to 10 in 100.

Notice this process of income generation has to be completely automated. Once you set up the email funnel (as it is called), no further intervention or maintenance should ideally be necessary on your part.

You can drive visitors to your website via SEO, social media sharing or via paid advertising. Now the problem is, many of the tools recommended by “experts” for creating this email funnel require high recurring fees. When you are just starting, your sales volume would be low and breaking even can take a long while.  Therefore keeping overheads low is crucial.

In addition to avoiding expensive and necessary products, what kind of content are people looking for? How much should I offer free? How to build trust? How to automate lead generation? How to set up a website in the right way so that it is visible on Google? I felt the need to create a course to answer these questions. Thus was born, Earn from Skills.

Course objective: How can entrprenuers, bloggers, side-income seekers, build actice and passive income streams that will last a lifetime based on their experitise and trust?

If you wish you learn how to get people to pay for your skills, build an income stream that will last a lifetime, join our exclusive Facebook community with (500+ members).  This is for anyone looking to earn extra income (aka side hustle) or passive income; anyone who wants to start a blog or YouTube channel or build a social media following; for entrepreneurs; small business owners; anyone who would like to build a business by showcasing their expertise, for example, financial advisors, insurance advisors, software consultants, writers, just about any service that requires an online presence. Check out the course contents + FAQ + 1st lecture.

Join 500 plus members and learn how to automate income streams, avoid expensive products and create a community of readers and viewers based on expertise and trust and generate an income that will gradually grow to become significant. The course fee is deliberately kept low to help young earners and small business owners get started.

Do share this article with your friends using the buttons below.

🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 5000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! More than 1,000 investors and advisors use this!
New Tool! => Track your mutual funds and stock investments with this Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.
Follow Freefincal on Google News
Follow Freefincal on Google News
Subscribe to the freefincal Youtube Channel. Subscribe button courtesy: Vecteezy.
Subscribe to the freefincal Youtube Channel.
Follow freefincal on WhatsApp Channel
Follow freefincal on WhatsApp
Podcast: Let's Get RICH With PATTU! Every single Indian CAN grow their wealth! 
Listen to the Lets Get Rich with Pattu Podcast
Listen to the Let's Get Rich with Pattu Podcast
You can watch podcast episodes on the OfSpin Media Friends YouTube Channel.
Lets Get RICH With PATTU podcast on YouTube
Let's Get RICH With PATTU podcast on YouTube.
🔥Now Watch Let's Get Rich With Pattu தமிழில் (in Tamil)! 🔥
  • Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
  • Have a question? Subscribe to our newsletter using the form below.
  • Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.

Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!

About The Author

Pattabiraman editor freefincalDr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.
Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition is!! Watch the first lecture for free!  One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course!  Increase your income by getting people to pay for your skills! More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!   
Our new book for kids: “Chinchu Gets a Superpower!” is now available!
Both boy and girl version covers of Chinchu gets a superpower
Both the boy and girl-version covers of "Chinchu Gets a superpower".
Most investor problems can be traced to a lack of informed decision-making. We made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? My answer: Sound Decision Making. So, in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parents plan for it, as well as teaching him several key ideas of decision-making and money management, is the narrative. What readers say!
Feedback from a young reader after reading Chinchu gets a Superpower (small version)
Feedback from a young reader after reading Chinchu gets a Superpower!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.
Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Do you want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
Our publications

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.

Your Ultimate Guide to Travel

Travel-Training-Kit-Cover-new This is an in-depth dive into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)