It’s easy to bite off more than you can chew with your first passive income idea. If you already have a track record of successfully completing large projects, then don’t let me stop you. But if you have a tendency to get discouraged and give up too soon, I suggest scaling down your ambitions. Start small by tackling a simple project that you’re confident you can actually complete.
It’s better to complete a 30-page eBook and sell it for £7 and generate a few sales per month than it is to tackle a 200-page writing project and never get it done. The former provides some genuine value to people; the latter will merely frustrate you.
Treat your early projects as training for your success muscles. The greatest predictor of future success is actually past success, so think about creating some simple successes by taking on modest projects and getting them done and released. Once you’ve done a few of those, then consider scaling up and tackling bigger projects. Even with seemingly simple projects, you’re going to learn a lot. You’ll get faster, and then it will be easier to scale up and tackle larger projects.
It’s so easy to underestimate how long things will take by overlooking details. With some of my early eBook projects, I’d estimate that I could crank out an app in 2-3 weeks, but in reality it would take me months. There are so many hidden steps that are easy to gloss over with an off-the-cuff estimate, such as creating the installation program, creating the music and sound effects, writing the documentation, setting up the online ordering system, etc.
If you’ve never created a passive income stream before, your first project may involve lots of one-time steps like setting up an online shopping cart. But once you’ve done that initial setup work, you can create similar streams with greater ease simply by plugging them into the same system.
Try not to get overly excited about making a killing with your first passive income project. Put your attention on learning the ropes and generate a nice little stream. Then you can scale up by creating more streams. If you can generate even £50 a month with your first stream, I’d say you’re off to a good start. It’s generally harder to go from £0 to £50 a month than it is to go from £50 to £500 per month.
Our goal is to find multiple income streams, and the more passive the better.