3 Tips For Making Passive Income So You Can Quit Your Job, From Entrepreneurs Making $8,000 A Month Or More

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There are many ways to build passive income. One of the most popular, historically, is investing in a particular portfolio and growing compound interest and buying and renting real estate.

But as social media and platforms like YouTube grow in popularity, many content creators are learning that they can reap the benefits of passive income for themselves. For example, some make money by selling pre-recorded lessons online, others earn advertising revenue on their podcasts and YouTube videos, and others make money through affiliates of their blogs or TikTok.

Sometimes the passive income these creators build is big enough to quit their day job altogether.

If you’re looking to start earning passive income yourself and maybe even leave your job one day, here are three tips from entrepreneurs who are making thousands, or even tens of thousands, of dollars in passive income per month.

Sell ​​an existing skill to supplement your income

Graham Cochrane, 38, worked as a full-time music producer and was trying to make ends meet when he founded his blog and YouTube channel, The Recording Revolution. Initially, the idea was to share his knowledge of music and attract more customers for his production company. But he soon realized that both were ways of making money for himself. Today, that company makes $40,000 a month in passive income.

When it comes to starting your own passive income stream, Cochrane recommends leaning on the skills and knowledge you already have.

“The turning point for me was when I got the idea to turn my audio mixing and recording knowledge into an online course,” he recently told CNBC Make It. Selling digital products based on that “created a passive income stream and allowed me to make a lot more money in a day – while putting less time into it – than when I was working as a freelancer.”

After many years of growing its online business, Cochrane has a second business of online courses focused on teaching people how to make money from what they know and are passionate about. That brings in $120,000 in gross sales and passive income per month.

Within just a few years, he began to scale back to producing music. He now works only 5 hours a week on his online businesses.

Find out how others have found success to grow

Shannon Smith, 24, was fired from her job as a waitress at the start of the pandemic and took months to figure out how to make up for the loss of income. Initially, she worked as a fitness coach for about 10 hours a day. In July 2021, she started making TikTok and Instagram videos to teach people how to build wealth and online businesses. She now earns about $8,000 a month in passive income through affiliate marketing.

“I see a lot of people trying too hard to completely reinvent the wheel with social media posts to get their business in the spotlight,” she recently told CNBC Make It. But “I’ve learned that the key to going viral and growing your audience is to study what works for others,” she said.

Once you’ve found the niche topics you want to discuss in your content, Smith recommends studying and elaborating on the conversations people are having around them. What questions keep popping up around them? She also recommends paying attention to what your successful competitors are doing with their content. Are they talking to the camera? Using long captions? And don’t forget to use the relevant hashtags that you see appearing on your platform.

Smith no longer works as a fitness instructor and spends only two hours a day on her online business.

Diversify your income streams to make it easier to quit

Michelle Schroeder-Gardner, 33, started her blog, Making Sense of Cents, in 2011 to track the progress of paying off her student loans while working full-time as a financial analyst. She now earns an average of $760,000 a year in passive income after expanding her coverage to include investment advice and financial products.

Michelle Schroeder-Gardner quit her job in 2013 to work full-time on her blog Making Sense of Cents.

Photo: Sydney Hampton Photography



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