Warren Buffett, the third-wealthiest person in the world, utilized an underappreciated strategy to increase his company’s stock from $8 in the 1960’s to over $300,000 per share in 2019.
The Berkshire Hathaway Model focuses on two value buckets: The first bucket consists of an operating business in which the company holds a controlling stake. The second is marketable securities such as stocks, bonds, and mutual funds, most of which are held by the insurance subsidiaries.
In a previous post, I outlined the difference between active and passive income. Basically, active income is your full-time salaried or part-time job (bucket #1) while passive income is derived from earnings like business investments, webinar courses, royalties, etc (bucket #2+), where an individual may not have to be physically present to reap the benefits.
The two bucket system is an approach every average earner can implement into their daily lives to drastically increase their annual earnings. By combining your active income with several forms of passive income for a multi-revenue income stream, you are ultimately building financial independence and stability while providing a safety net in case your first bucket implodes.
“You become financially free when your passive income exceeds your expenses.”- T. Harv Eker
The truth is, most people only focus on one revenue stream- and that’s okay. But this approach leaves you vulnerable and unprepared, while also ignoring potential opportunities to work on something you love. Over the past year, I’ve experimented with various forms of passive income from freelancing on Fiverr to re-selling items on Ebay. I accumulated a lot of necessary skills and even had one of my passive income streams positively influence my career leading to an eventual promotion (more on that next week).
My intent with this article isn’t to offer you a “get rich quick scheme”. Instead, I want to provide several ideas to get the ball rolling on out-of-the-box approaches to your earnings.
It’s time to plant some passive income seeds and watch your wealth grow.
1. Resell Graphics, Sales Decks, Designs, & Templates
There are several different ways to go about this.
The first is to actually buy templates from other sellers, and then flip those templates for slightly more money. I used to see people doing this on Fiverr all the time. You can usually buy a stack of generic slicks for under $25 and distribute them as you please.
The second is to create your own templates in-house and sell them. High-demand templates like resumes, calendars, PowerPoint's, and info-graphics can be made with a little research and access to an Adobe application like Photoshop or InDesign. Paying for these platforms will be more costly upfront, but worth your while because you can re-sell the same template over and over again to new customers. In going with this option, you can eventually make a simple WordPress site that beautifully displays your best work. Customers can choose between an existing item or submit an order (for a higher cost) to have something custom-made. It doesn’t hurt to look at what popular marketing providers like HubSpot, Mailchimp, or Squarespace use for emails and landing pages to get a better idea of the popular templates businesses may be interested in.
Finally, if you have ever done freelance client work or built a personal website, some of this pre-work may already be done for you. I recently made a series of Photoshop graphics to display a portfolio on my website. Ideally, these could be sold as separate PSD mock ups so the buyer simply has to drop there own image into the proper layer.
2. Become A Mobile Brand Ambassador
Not every person driving around with a window decal works for the company they are promoting.
Websites like Wrapify give drivers a form of supplemental income that requires little to no effort. Here’s how it works, according to Wrapify’s website:
“When an advertiser wants to promote in an area, they come to Wrapify for help. If a driver spends at least 25% of their commute in the advertiser’s selected “campaign zone”, they are notified that there is an opportunity to cash in on their commute.”
While I have not tried this personally, it appears to be a relatively safe investment. Wrapify will pay for the wrap to be put on and removed, unless you decide to break the signed contract.
Your payment depends on how much of the car you wrap and the number of miles you drive every week. There do appear to be mixed reviews on the app store for Wrapify, however Wrapify is still a startup and could grow exponentially in the future.
Vehicle wrapping on its own is also an interesting freelance business idea. Is there anything stopping you from contacting local businesses and offering up premium ad space on your car?
3. Post An Experience On AirBnB
As AirBnB states, “ Earn money leading people on activities you love.”
Does it get much better than that?
This is pretty straightforward and a great way to profit from something you have deep experience in or a quirky hobby that niche audiences may find amusing. A dashboard gives you insights, feedback, visibility reports, payment tracking, and more for a smooth user experience. You can offer everything from “ DJ for a Day” to “Night Photography Light Painting”.
When I was in Seattle, I almost took a vegan ice cream making course in a women’s kitchen but the class times didn’t align with my schedule.
AirBnB is relatively easy to work with and the rules are transparently laid out on their Host An Experience homepage. It doesn’t require a home rental commitment and you can even co-host with someone else. Plus, you can do it as frequently as you want.
If you’ve been itching to host that silent disco in you living room, then AirBnB might be the perfect passive income source.
Whether you choose to build resumes for college grads, wrap your car in a Fanta bottle, or host gluten free baking courses on AirBnB, these passive income streams may or may not give you Warren Buffett wealth.
What these experiences will do is open your eyes to a new world of financial flexibility outside of your 9–5. There are endless options to diversify your revenue streams, and successfully stringing three or four together could eventually pay off your rent, student loans, buy a car, or surpass your active income.
If you try one of the three options above or attempt something new, let me know how it goes in the comments below.