In 2016, I had two jobs as a senior web developer and an adjunct professor. To make my life easier, I worked part-time as a freelance web developer. I knew almost nothing about the business.
Today, I have built more than 10 passive income streams, including multiple eCommerce brands, a YouTube channel, and an online school. Combined, these companies generate about $49,000 in passive income per month. I learned a lot about how to build a profitable business.
I always tell people that if they want to build successful side hustles and passive income streams, they need to stop believing in these three myths:
Myth #1: You have to spend money to make money
This is general business advice. For example, if you want to open a retail store, your expenses will include monthly rent, purchasing goods – to stock shelves and then resell them to customers – and employee wages. This is a traditional approach and an expensive one.
My favorite online business model is print-on-demand. I started my print-on-demand side business on Amazon in 2017 for $0 and have since expanded it to offer my products on Etsy, Walmart, and eBay.
DO NOT MISS: The ultimate guide to making passive income online
Print-on-demand allows me to sell items like t-shirts and coffee mugs with custom designs. I don’t pay a dime for inventory until a customer places an order, which helps me keep costs down.
After I receive an order, I pay a company like Printful, which specializes in printing and shipping products, to fulfill the orders for me. After I pay for the printer and the marketplace referral fees for Amazon and Etsy, I’m left with a profit.
Myth #2: You can make passive income without working for it
Dividend investing aside, building passive income streams always takes time and dedication. There is no shortcut to success. I worked a lot of early mornings and late evenings on my part-time jobs, especially in the beginning.
While I’m still heavily involved in the day-to-day running of my businesses, I know many people who have managed to step away from day-to-day operations – after reaching an income threshold they were happy with – and still carry on to build on what they were doing work to benefit.
Building my profitable passive income streams required a lot of discipline. I had to learn to be okay with the idea of delayed gratification. But in the end I’m so glad I made the effort.
Myth #3: You need a team to help you run your business
I’m not against a team, but in my experience it’s not necessary to have one to be successful. Seven years later, I’m still able to do this on my own, thanks in part to the many different tools currently available to entrepreneurs.
For example, for the first two years of running it, I spent three to four hours a day on my Amazon Merch business to help it grow. Thanks to advances in automation, I now only work on it for an hour a week.
I’m a big fan of tools like MyDesigns. It uses AI to automate design creation, create SEO-friendly product listings, and publish my products online in bulk. All this allows me to develop and offer more new customized items and saves me the most tedious work.
Using these tools strategically has helped me stay on top of things while giving me the ability to step away from work whenever I want or need to. This way I can truly live the life I want.
Ryan Hogue is a former web developer and adjunct professor who left both jobs to run his e-commerce company. Be Youtube channel teaches people how to make passive income using the “Ryan Method.”
Hogue is also an instructor in CNBC’s new online course, How to Earn Passive Income Online.. The course provides an overview of common passive income sources, tips for getting started, and real-life success stories. Register today and save 50% with discount code EARLYBIRD.