This transcript was generated from the episode audio and may contain minor errors.
[Music]
Are you looking for a side hustle that provides sustainable recurring income with minimal daily upkeep? Well, that sounds impossible, don't look for that. Just kidding. Today's episode is packed with ideas from digital products to subscription models. We can, in fact, create passive income.
I do think it often requires some good work on the front end and then some maintenance usually as you go along just to be real with you 'cause I wanna make sure I'm always giving you promises that we can keep as opposed to like what you see on some YouTube videos or probably some Instagram videos as well. But it is possible to have recurring income, of course. So that's what we're gonna talk about. A listener, Sophia from Baltimore, she's been around for a while and is ready to take the leap. Specifically interested in ventures that provide subscription payments or recurring revenue and with as little daily micromanagement as possible.
Okay, so that's an admirable goal. Let's talk about it. She wants some guidance on what kind of side hustles might best align with the goal as well as understanding how to maintain it, maintain that income stream once it starts. So, I mean, that sounds good to me. Who doesn't want recurring revenue, right?
So let's look at the most common models and perhaps give you an idea to move forward with your own ideas, right? Because the whole point of side hustle school is to get you thinking and taking action. That's my hope. That's why we make this podcast every single day. What are the best hustles for recurring revenue?
Today's question, the detailed version from Sophia and my answer coming up in just 30 seconds. [Music]
Hey, Chris and team. This is Sophia Collinan from Baltimore. I've been a fan of the side hustle school for a while and I'm ready to start exploring ideas for earning recurring revenue myself. So what types of projects or side hustles do you think are best suited for generating that consistent recurring income?
Personally, I'm interested in ventures that don't require daily hands-on involvement, at least if you think that's possible. [Music]
Sophia, I love the question. I love the hustle and I respect the idea of looking for some recurring revenue with less day-to-day involvement. So a couple of categories to consider, if you know upfront, this is what I want. Number one, digital products.
Consider an online course or eBooks. If you are skilled in a particular area, which everybody is, everybody is skilled in something, everyone's an expert in something. So you can create a course that sells continuously on a platform like Udemy or Teachable. We've had lots of examples of that in the podcast archives. And as for how it becomes recurring, well, the right kind of course, if it gets in one of these platforms algorithms and it continues to sell, that is pretty cool, right?
And some of them can actually be sold on a subscription basis, which leads me to my next comment. Subscription models can work well in various niches or industries categories. Could also be a monthly subscription box. We've had a number of those stories as well. Gourmet foods, books, skincare products, and a lot of work on the front end.
But once you set up the suppliers and fulfillment process, then if you have enough of a base of users and as well as some new users coming in over time to account for those who cancel, that can lead to recurring revenue with minimal daily management. Next idea, affiliate marketing, starting a blog or YouTube channel or a TikTok channel. But I was thinking specifically of YouTube because some YouTube videos can continue to be seen over and over for months, sometimes years. Again, if it works with the algorithm, you have the right keywords, the content takes off. You know, there's a lot to it on the front end.
I don't want to minimize that. But the right kind of blog or YouTube channel using affiliate marketing, steering your viewers, readers, subscribers to make purchases from merchants. Some of those things, when they get set up, they can earn four months and years to come. So I mentioned these things because often when people think about recurring revenue, they think about rental properties and real estate. And yes, if you're open to that kind of upfront investment, then maybe that can work.
But I think it's going to be a relatively low return on investment. And a relatively high risk. So that's why I mentioned it last. One more thing I do want to say, like once your revenue stream starts, whatever it is, whether it's one of these categories or something else, it's really important to keep your subscribers or customers engaged. So I know that Sophia wants minimal daily work, I get that.
But somehow this has to be built into the process, periodically updating your content, staying responsive to feedback, you know, just making sure you are updated because that's what tends to happen with these kinds of projects is somebody built something for a while, and then they get a lot of money coming in, then they stop paying attention to it and it never evolves. And so eventually the project declines. And you know, just to be very honest and candid, I have done that a couple of times in my own life. You know, I'm really good at starting things and building things less good once that recurring thing is up and running. So it's something you have to just be aware of.
And some people do have a personality of wanting to continuously improve the same project. And that's great. If you have that, then you might be especially well-suited to a project like this. So I hope those comments are helpful, Sophia, cheering you on. As always, listeners cheering you on, sidehustleschool.com/questions.
Also some free resources on the site. We'll keep featuring your questions throughout the year, along with updates from other listeners as they launch their projects. Thanks for being out there. A new episode tomorrow. My name's Chris Guillebeau.
This is Side Hustle School. [Music]
From the Onward Project.
