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.


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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.

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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, 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.
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