Understanding Passive Income – According to Two Virtual Entrepreneurs!

by Chris C. Ducker · 34 comments

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Following on from last week’s video with Dan Andrews from TropicalMBA.com, where we discussed Virtual Entrepreneurship, this week we attack the time-honored subject of Passive Income.

What follows is another light-hearted collection of random ramblings on the subject, peppered with a few golden nuggets of information, and a massive amount of props to my buddy Pat Flynn from SmartPassiveIncome.com (including a special appearance from Pat, too!).

I’ve discussed the subject of making money online a lot on this blog, particularly on the VBL Podcast with guests such as John Chow, Pat Flynn, Chris Garrett and Glen Allsopp to name just a few. Why? Because passive income is a massively popular subject, and shows no sign of slowing down anytime soon.

We discuss many points in this video, and break down what it means to incorporate passive income into your life as a virtual entrepreneur in general. You’ll find that this conversation was a little more serious than the first one – however, we did still have a few more out-takes for you at the end, just like last time.

If you have any specific questions on the subject of passive income that you’d liked answered, just drop them below, and likewise – if there are things that are working for you online, when it comes to your income that you’d like to share, feel free below, too.

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{ 34 comments… read them below or add one }

Sam Wilson May 9, 2011 at 18:33

Hi Chris

Another great video. Thank you.

I think there is a lot of mystery that surrounds a topic such as passive income. The number one things I thinka lot of people ask is ‘is it really possible?’. Is it.

If Pat comes here, can you answer one thing for me, Pat. What do you feel is the most ‘passive’ form of the income you make online? I’m curious to know that.

Chris, Dan.. Can you do more of these videos? I really like them and think that you could almost create an entire website of just the two of you together!!

Thanks.
Sam

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Chris C. Ducker May 10, 2011 at 00:11

Hi Sam

Thanks for the comment, buddy.

We have two more videos coming up in the series – they will both be live in the next week, to ten days or so.

I will ask Pat if he can make it over to answer your question, too, Sam.

C

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Sam Wilson May 11, 2011 at 03:51

Thanks for the reply and for contacting Pat for me, Chris.

I appreciate it.

Sam

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Chris C. Ducker May 12, 2011 at 01:37

You’re welcome, buddy.

Make sure you add Pat’s site into your RSS list. He’s worth staying in touch with, for sure!

C

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Pat May 10, 2011 at 00:43

Hey Sam, Chris invited me over here to answer your question (thanks Chris!).

A couple of things:

My most passive form of income would be articles that I’ve written for revenue sharing sites, such as eHow and InfoBarrel. I wrote 150 articles in December of 2008, and no more, and ever since then each month I get a nice deposit into my Paypal account. Absolutely no extra work has been done since 2008.

That said, the income from that totally passive source is between $250-400/month, which isn’t much when you compare some of my other income streams which I feel are passive as well, just not as 100% hands-off.

For example, my site at GreenExamAcademy.com, requires about 2 hours of work per month to answer customer emails and check stats, etc., but it’s generating between $4k and $6k a month (and at a time was generating between $20k and $30k a month with the same amount of work).

With my iPhone application business, we’re at a point in our business where all the work we do is for designing new applications. We’ve been earning income passively each month from our older applications since the beginning of 2009, without any additional work for each of those applications (except the occasional update once or twice a year).

I’m getting into niche sites as well which seem to have a very passive quality to them too. Again, nothing is really going to 100% hands off after it’s set in motion (except for the articles like I mentioned), but I guess that’s where differences in people’s definitions of passive income come into place. I feel that because my income is not related at all to how much work I put in during a week or given time period, the income I earn is passive because I can quite for a day, a week or even a month and be confident that I’d continue to earn an income.

Let me know if you have any more questions. Cheers and all the best to you!

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Pat May 10, 2011 at 00:52

By the way – Chris, I loved the “Cameo”, lol. You guys crack me up!

More please!

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Chris C. Ducker May 10, 2011 at 01:27

Hahaha…

We’ll do our best, buddy. Thanks for dropping by. Glad you liked your cameo, too!

Complete with ‘whooshhh’ sound effects and all…!!!
:-)

C

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Dan May 10, 2011 at 17:13

Yeah that was totally cool. Perhaps Pat appearances should become a more regular appearance!?

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Chris C. Ducker May 10, 2011 at 17:54

I don’t see why not…

We can do something along the lines of ‘Wheres Wally’….!!!?!?!! :-)

LOL

C

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Chris C. Ducker May 10, 2011 at 01:39

Thanks for answering, Pat.

Much appreciate, buddy – and quite an answer it was, too!!!

GreenAcademy is still doing around $5k a month on average for just 2 hours work each month. What would you have to do to get that doing say $10k a month now…? I mean all the tough work has already been done, right…?

C

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Sam Wilson May 11, 2011 at 03:54

Wow thank you Pat for sucha great answer. I really appreciate it.

I also like the idea of niche sites and Chris has done some good stuff on here on the subject which I have put into action and had some decent success with.

I will be spending more time on your site now and thanks again.

Sam

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Tracy Baker May 9, 2011 at 23:04

Hi Chris

You and Dan … wow you two just bounce off one another it’s very cool to watch :-)

Particularly liked Dan’s interpretation of team members being part of your DNA .. as an owner of a newly formed Virtual Assistant company it’s something I feel very strongly about, that team members should integrate themselves into your business and become an extension of yourself – I don’t believe there is a better way to do business :D

Thanks for sharing the out takes again too lol

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Chris C. Ducker May 10, 2011 at 00:10

Hi Tracy

That’s actually the last of the out-takes… We got more serious as the recording went on, burning off all that additional entrepreneurial ‘fuel’ quickly..!!!

Yep – the team is extremely important. I did a post a while back on the importance of good support, for growth. It’s still, and always will be, very relevant.

Thanks for dropping by, Tracy and good luck with the Biz.

C

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Chris Mo'e May 10, 2011 at 01:33

Ive been watching and reading your blog for a couple of months now. I’m just starting off and have used your site to help me learn a ton. Good job, your vids are getting better and better. the humor is great, I definately look forward to them when i see a new one in my inbox. Just as a suggestion i think it would be super cool if you interviewed one of your star employess, so for those of us that havent been to the Philippines or dont know much about there, could get a first hand look at a real live VA from the Philippines.

Anyhow. Great job and i will be applying for an affiliate account to promote your VA finder service on my site this week.
Pura Vida! from Costa Rica
Chris, Mo’e

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Chris C. Ducker May 10, 2011 at 02:23

Hi Chris

Glad you’re enjoying the content. An ‘Interview with a VA’ is coming, dont worry – its been on the cards for a while…

We look forward to you being in the Virtual Staff Finder affiliate program. I see on your site that your content is very ‘similar’ to that on ours. Be careful on that, Google won’t like it… And neither will we. FYI, we go after everyone that copies our web content with reckless abandon, and currently have 3 law suits on-going in relation to copyright infringement.

If you are simply wanting to promote VSF, exclusively through your site, thats all good, and we will help you as much as possible. Just ask, bud.

C

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Rob Cubbon May 10, 2011 at 04:03

Another interesting one. I really enjoy these. Interesting that Pat and Dan have a totally different approach to passive income. It’s certainly the holy grail for me at the moment. I set myself the challenge of making over $5,000 passive income this year and I’m miles off. So I need to get my butt in gear and stop writing this! Great show, fellas!

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Dan May 10, 2011 at 17:11

Follow Pat!! Good luck with your goal Rob.

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Chris C. Ducker May 10, 2011 at 17:52

Hi Rob

Glad you’re enjoying the series. We had a lot of fun putting it together, I must say.

Thanks for dropping by.

C

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Sam Wilson May 11, 2011 at 03:55

Me also Rob. I think this series of videos and the style in general are great. Easy to just sit back witha cup of tea and enjoy.

Chris why dont you do some more video? I actually prefer it to written posts if I was to be honest>

Sam

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Chris C. Ducker May 12, 2011 at 01:36

More video coming, Sam.

Promise, bud.

C

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Chris Mo'e May 10, 2011 at 04:46

Yes for the Va finding i was planning on pushing everything to your site, I will admin my VA Wrote all the content just recently and i have yet to compare it, i will be goin over everything to make sure she keeps a level of originality on it. THnx for the heads up.

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Chris C. Ducker May 10, 2011 at 17:52

Okay, good stuff…!

C

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Tony Ruiz May 10, 2011 at 11:58

Ha ha – that was awesome. Pat’s head just popping up.

Great conversation guys. You should do this more often.

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Chris C. Ducker May 10, 2011 at 17:53

Hey T

Glad you dropped by and enjoyed the video.

Pat Skyped me after he saw it and was cracking up… Mission accomplished, I guess.

Hope all is good.

C

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Martha Christie May 12, 2011 at 23:22

Hey Chris/Dan

Ok, I have to admit it – I fell behind in my blog watching – Today is a Chris C. Ducker afternoon and boy am I glad I took this time out – Yet another AWESOME video. Just a shame it’s the last of the out takes :(

Chris, I see Starbucks as your passive income! lol

I have procedures in my business and I ensure that those procedures are followed. I think that if a business doesn’t have these then it could get messy. Coming from a quality & best practise background, I ensure that they are followed, to the letter. Dan – You need to get a Virtual quality person in to ensure your procedures are managed and followed lol.

I value time (yes, time means money), but if I can dedicate my time to helping someone then I get that ‘warm fuzzy feeling’ because I have made a difference to them. Money comes second (believe it or not). Yes, we are all out to ‘make a million’ lol, but it takes hard work and determination and there are no ‘quick fixes’.

If you are looking for passive income, you need to do a lot of research – This can be done through outsourcing! By outsourcing, you are saving time. Chris you mentioned in one of the out takes that you only had something like an hour and a half left – Again, this is your time and you need to move onto your next task.

Passive income is something I would like to pursue however, I’m dedicated to my VA business for now. I’m now following Pat & Dan (I promise not to stalk lol) and will hopefully be on the route to ‘passive income’ soon.

Keep up with the great videos Chris.

Take care
Martha

p.s. having issues getting my ‘mug shot’ onto the avatar! Any direction would be appreciated (if you have the time lol)

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Dan May 12, 2011 at 23:26

Gravatar.com. Thanks for the stalk! :D

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Chris C. Ducker May 14, 2011 at 01:25

Hi Martha

Chris Ducker afternoon…… Wow! I’m so humbled… What does your husband say about you spending so much time ‘with me’, LOL :-)

I’m super excited and happy that you enjoy the videos so much, I love putting all this different type of content together, so when people make genuine comments like that, it just spurs me on to continue to try and do more and more.

Thanks for the support…!

C

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Martha Christie May 14, 2011 at 02:30

lol, my hubby prefers when I’m watching Michelle – He says she’s much better looking (no offence lmao).

It’s my pleasure – Just keep em coming ;)

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Martha Christie May 12, 2011 at 23:29

Cool, thanks Dan – I’ll stalk quietly :)

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Chris C. Ducker May 14, 2011 at 01:21

That’s a great domain name, right there………

stalkquietly.com

Is it available…..?!! :-)

C

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Martha Christie May 14, 2011 at 02:33

lmao – Actually that domain is available – Ok, I was sad enough to look ;)

Now my thinking cap is on!

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John Koen May 18, 2011 at 07:07

Chris & Dan,

You guys get along really well together on camera. I follow both of you (blog and podcast). Have you guys thought about doing a podcast together on a regular basis? You guys certainly have the chemistry for it!!

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Chris C. Ducker May 18, 2011 at 14:06

Thanks John.

Yeah, there’s a whole lot of chemistry between us, for sure.

Podcast – we’ll see… We’ve talked about it, but we’re also super busy, too!

I’m glad you liked it – the third part came out on Monday just gone, and final part comes out next Monday.

C

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Robert Pabelico May 21, 2011 at 13:53

It’s a very interesting view about passive income. It’s really is a very popular subject for people looking for financial freedom. The amount of information you guys discussed are very helpful to those who wants start an online business.

Reply

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