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how do digital nomads make money

Passive income ideas for digital nomads. (How to get residual income)

August 20, 2018 by David James 1 Comment

Everybody would love to be in a position to earn money without having to trade in their time or effort for it. Thankfully in this era, this opportunity is more widely available to people than it was say 30 years ago. For people that want to pursue the lifestyle of a digital nomad, this is very possible as well. There are digital nomads that are in a position where they work only a few hours a week, whilst the bulk of their income is being generated for them passively.

In this post, I want to talk about some of the passive income opportunities that I’ve explored. If you are new to being a digital nomad, you can look into using these opportunities to generate a passive income that will support your travel lifestyle.

Bank account interest.

This depends on the country that you are in as well as other economic factors. In Australia, the bank can give you over 2% interest per annum paid monthly into your bank account. This interest is also compounded.

The catch-22 is you need to have money in your account. It is a great and easy way for you to start building your wealth and one stream of income.

Realistically, you will need at least $100,000 in the account to generate $100-200 a month passively. If you do have access to that money, then it is one way to boost the passive income portfolio for you.

Share dividends.

I’m not an expert in the stock market, but I do own a few shares that pay out dividends twice a year. It isn’t my favourite passive income stream, as there is a risk that affects the chances of you being paid out on your shares and also the equity value of the stocks/shares that you are holding.

I currently hold 1000 shares in a bank that pay approximately 3-5% in dividends each year. So based on my current portfolio, I’d expect to get approximately $700 a year from my banking shares portfolio. If the share price increases, I will also benefit from the equity profit that I can make from the sale of the shares.

I also hold 2000 shares in a telecommunications company. The dividend payout for the shares are also around 3% per annum. So the combined total between both portfolios is approximately $1000 a year.

Obviously, the more shares you own, the more dividends you will receive.

Advertising web business – Adsense and ad networks.

Adsense is a good way to start making passive income inexpensively, however it won’t allow you to make heaps of money. The reason being is that advertisers want to get exposure to a target audience for as little as possible. The ad networks usually work on a bidding model and if you want to make any serious money, you will need to generate thousands of visitors to your website, app, video or digital platform per month.

Advertising models usually work on a cost per thousand views. As a rule of thumb, you can expect to make $1-6 per thousand views depending on your niche.

  • 1000 views will get you $1-6.
  • 10,000 views will get you $10-60.
  • 100,000 views will get you $100-600.
  • 1,000,000 views will get you $1000-6000.

This is an estimate. Some niches can allow you to make more. Others will be less.

You will need to have a steady traffic source that will allow you to make this income consistently. For example:

  • A list of email subscribers.
  • Followers on your social media, such as Facebook, Twitter, Instagram and Pinterest.
  • Referrals from other influencers.
  • SEO rankings on Google and other popular search engines.

You can click here to see 11 ad networks that you can join.

Advertising web business – Affiliate.

I like the affiliate marketing model because it is a win-win for everyone. It is also inexpensive to setup and when it starts to work, it can be the gift that keeps on giving. You will need to look into the rules of the affiliate platform and the affiliate program to see where you are allowed to promote.

Affiliate marketing is promoting other peoples products or services and receiving a commission in exchange for an action being taken, such as a sale or a lead enquiry.

There are many affiliate networks. It can be a bit challenging to work out which ones are ideal for the kind of things that you are working on. I’d recommend getting started with the following two affiliate networks.

Amazon Associates Program.

There are millions of products available. And you get commission for indirect purchases from your referral ID.

Click here to sign-up.

Max Bounty Affiliate Program.

I’ve recently signed up to this and the reason I find it appealing is that there are higher commission rates paid. However, I do find it more challenging to convert the offers compared to the Amazon Associates Program.

Click here to sign up to the affiliate program.

Recurring sponsorship.

This is great especially if you can get direct sponsorship on any assets or platforms that you own. The key is to get recurring revenue from the sponsorship. If you can secure a $50 a month placement, you will earn $600 per year. You could sell 5 spots on your website and that could generate you an extra $3000 a year.

If you had 10 platforms with this model, you could earn $30,000 a year in passive income.

Sell information products.

This can be quite lucrative if you target the right niche. There are so many different forms of information products that you can explore. For example, you can create an ebook, a cheat sheet, a training guide, training videos, training audio books or more and sell them to your audience.

The ideal price point is $100. However, if you can sell your products for $500-2000, you will make more money from your launches.

There is work involved in setting up the information product business. However, it can be scaled and run on autopilot once you have the products and processes in place, thus providing you with passive income.

E-commerce store.

In my opinion, this is the most lucrative if you can automate the processes. If you find the right niche and promote the right products, you can generate thousands of dollars in revenue. You can offer several different products that you own and that you sell on behalf of others.

There are different e-commerce fulfillment models such as:

  • Drop shipping
  • Amazon FBA
  • Affiliate sales
  • Reselling
  • Selling direct
  • Licensing other people’s products

Are there some other passive income models that you think will help you boost your digital nomad income? Please let us know in the comments below.

Thanks for reading.

Filed Under: Digital Nomads Tagged With: how can I earn residual income, how do digital nomads make money, how do you make residual income, passive income examples, passive income ideas, passive income investments, passive income online, residual income ideas, what are assets that generate income

Should you invest in shares for passive income as a digital nomad?

June 6, 2018 by David 2 Comments

The ideal scenario for travelling around the world fulltime is to do so by earning a passive income. This means having the ability to earn an income without actually having to trade in your time to do so. There are several ways to accomplish this, but one of the methods that has been promoted alot in the past is to do so by owning shares/stocks.

I’ve personally invested in stocks and shares over the years and I want to share some of the insights about using shares as a tool to develop your passive income portfolio.

Have a passive income strategy.

The minimum that you will want to earn annually per person is $24,000USD. You will need to build a stock market portfolio that will allow you to achieve that.

Your goal will be to acquire shares that provide a high dividend yield.

Ideally, you will be able to find shares that have a dividend yield of 4% or higher. The higher the dividend yield, the more cash you will receive when the company pays out its dividends.

You want to invest in shares that have low volatility.

The strategy that you will be implementing will be a buy and hold strategy. The intention is to never sell the shares, but to use the shares for cashflow. The higher the volatility, the higher the risk of the shares losing their equity value. This means you can lose money. And you want to minimise the risk of you losing money.

How much money will you need to start earning additional income from shares?

If you work to a rule of 3% of what you have invested, it will give you a figure. For example.

  • $1000=$30 a year
  • $10,000=$300 a year
  • $100,000=$3,000 a year
  • $1,000,000=$30,000 a year

Is it worth investing in shares?

It is an easy way to earn an additional income. There are a few reasons why I don’t personally like investing in shares.

  1. The management is under someone else. If they don’t manage the company well, then the profits and revenue growth won’t happen and you won’t benefit from owning the shares.
  2. The risk that you take is high compared to the dividend amount that is received.
  3. The risk of losing the equity value in the shares are high.

On the positive side.

  • You can earn an income without having to put any time into developing the business.
  • If you invest well, the share amount will increase over time and increase your net worth.
  • If you have a lump sum of cash and you are unsure of what to do, then investing in shares can be a good option for increasing your cashflow.

Have you invested in shares? What do you think?

Let us know in the comments below.

Filed Under: Making money online Tagged With: digital nomad investor, digital nomad trader, how do digital nomads make money, passive income digital nomad

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