Wealth Creation Secrets To Success

Many people think that the only way to acquire wealth is by inheritance or being able to save a large chunk of money overtime. While this may have worked for some people, it isn’t always the case. I am going to share with you my candid observation on how wealthy people get wealthier, and I am going to make this as simple as possible.

First things first, saving money alone can never make you wealthy. So, you may very well trash that idea. Of course, it is good to save a portion of all your earnings, but doing just that will not guarantee wealth. On the contrary, having multiple sources of income will make you wealthy overtime if you save right and invest wisely. And no! I am not trying to say that saving money is a bad idea, it is totally not a bad idea! But if the money you are saving is coming from one source only, then it is going to take you a longer time to call yourself rich and wealthy.

So, what does multiple sources of income really mean? And how can you get multiple sources of income? This article would give you the answers to these questions if your read further.

Warren Buffet once said, “If you don’t find a way to make money while you sleep, you will work until you die.” A lot of people who at one point or another read this may not have taken this literally, but a candid truth is that wealthy people are those who make money even in their sleep. Think about this for a minute, can you reflect on one wealthy person you know who doesn’t make money in their sleep? Mark Zuckerberg, Jeff Bezos, Elon Musk, Larry Page, and the list goes on and on. These people make money daily, and they do not need to be physically present to oversee every single business transaction. So, what do they do differently? You are about to find out.

The first thing to note is that there are three basic sources of income that exists:

1. Active income

2. Passive income

3. Portfolio income

#1 What is Active Income?

Let’s start here. From the name ‘active’ you can easily guess what this type of income means. Simply put, active income is money that you get in exchange for your time and effort. It is mainly determined by the amount of time and effort you put in. If I were to illustrate this type of income using a mathematical formula, it would be;

Time + Effort = Money OR Money = Time + Effort

This means that the more time you spend putting in ‘the’ effort, the more money you make. A good example of active income would be your 8-5, 9-5, or shift job. Another could be the money you get for the exchange of a skill or service. So, let’s say that you wash cars for instance, the money you make from washing cars would be determined by the number of cars that you wash.

Active income is the most common income source, and this is largely because it is easier to acquire, and typically more reliable and low risk. However, in recent years, the rate of employee layoffs has been on a steady rise. This makes regular jobs especially in the private sector to be somewhat unreliable, unpredictable, and more difficult to get.

#2 What is Passive Income?

The idea of making money while sleeping isn't just a fantasy—it's a reality that many people are living every day. This is the basis of passive income. Passive income is money that keeps coming in after an investment of time and resources has been made. It is indeed a game changer. And the reason is because it doesn’t require as much time and effort as you would need in the case of active income.

Here’s what I mean; when you write and publish a book for instance, you get to spend time, energy, and resources over a short period to create the book. Same thing applies to developing a mobile app or software. You can keep making money from these products in the years to come. Examples of passive income sources include money gotten from published books, courses, video tracks, music, webinars, mobile apps, software etc. The idea here is to create something valuable one time and then continuously get rewarded for your invention.

Some of the multi-billionaires you know today are billionaires because they set up systems that create passive income for them. For example, Mark Zuckerberg, the founder of the famous mobile app, Facebook, is a multi-billionaire today because he created an app that multiple users all over the globe use daily. Same thing applies to Larry Page, Bill Gates, Elon Musk, etc., these men have created digital products that the entire global population uses. While it may seem easy to create passive income sources, a lot of persons shy away from it because it is full of uncertainties and high-risk factors. I mean, it is one thing to launch an app or software and another thing to sell, right?

Passive income requires a lot of initial effort, time, and patience, but in the long run, it tends to yield more. Let us now look at the last income type – portfolio income.

#3 What is Portfolio Income?

Portfolio income is the return on investments, interests, capital gains, dividends, stocks, bonds, shares etc. When you buy shares, equity or land, the dividends and compounded interests are what you refer to as your portfolio income. This is also subtly related to passive income; however, it differs from it because you invest with money not time and effort.

I would be dwelling more on how to generate passive income, because this is one pathway to wealth that only few people are taking advantage of. As you read further, you will learn about the benefits and value of passive income sources.

How Do You Generate Passive Income?

One easy way to generate passive income is by selling digital products. Not only is selling digital products effective, it is also a scalable business model. You can create your own digital products or sell other people's products. Whichever you choose, there's an opportunity for you to succeed on a large scale.

Why Digital Products?

You might be wondering what makes digital products lucrative. There are several reasons, and I’ll list them below:

#1 Digital Products Have Low Overhead Costs

Unlike physical products, digital products don't require inventory or shipping. You create them once and sell them multiple times, which keeps costs low. I remember when I wrote and published my first eBook, it didn’t cost me anything except for internet subscription. I created it using just my phone. And afterwards, I was able to sell it multiple times online.

#2 Selling Digital Products Is Highly Scalable

A digital product can be sold over and over without incurring additional costs. This means that your revenue can grow exponentially with little effort once the product is created. All you need to do is to keep promoting it.

#3 It Offers Flexibility

Digital products come in various forms, including eBooks, online courses, printables, templates, software, audio, video and more. This allows you to choose a format that best suits your skills and interests. Let’s say you are good at recording selfie videos, you can create a video course in a particular niche and sell. This business is a suitable option for both beginners and experts.

#4 Your Products Have an Expanded/Global Reach

With the internet, your market isn't limited to your local area. You can sell your digital products to anyone in the world, expanding your potential customer base significantly. This is one major limitation of selling physical products as small business owners may not be able to handle international shipping. But with digital products, distance is never a barrier.

What to Do Before Creating Your Own Digital Products

Creating your own digital products might seem daunting at first, but it's easier than you think. You only need to do these four things as you begin:

#1 Identify Your Niche

I see a lot of people make the mistake of not niching their products and services. You need to know that you cannot serve everyone at once. Having said this, the first thing you need to do is to identify a niche where you have expertise or a strong interest. You may need to answer these questions for yourself - what are you passionate about and what knowledge or skills do you have that others might find valuable? For example, I've found success in the digital marketing space, leveraging my expertise to create valuable content and products.

#2 Research Your Market

Before you dive into the creation of any product, it is crucial to understand your market. You would need to conduct thorough research to identify existing gaps where your product can provide unique value. Tools like Google Trends, keyword research, and competitor analysis can help you identify these opportunities. You can also join forums, social media groups, and communities that are related to your niche to see what people are talking about and what they need.

#3 Validate Your Idea

Before investing a lot of time and resources into creating your product, validate your idea. This can be done by creating a simple landing page with a description of your product and a sign-up form for interested users. Next you need to promote this page through social media and gauge the interest. If people are signing up, it's a good sign that there's demand for your product.

#4 Create Your Product

I always advise beginners to start with something simple and grow progressively from there. An ebook, for instance, is a great first digital product. To create an eBook, start by drafting an outline of the main points you want to cover, before proceeding to writing the contents of your book. But be sure to provide valuable information that addresses the needs and pain points of your target audience. You can then use a tool like Canva to design a visually appealing book cover and an online book editor like Reedsy or Designrr to thoroughly edit and typeset your book. Before you publish make sure you give your manuscript to a few close friends or family members to proofread.

If you have been thinking of writing an eBook but don’t know where to start, click here for a comprehensive beginner-friendly guide on how to write an eBook using AI. It is also available on Selar if you are reading this from Nigeria.

You can also consider creating other digital products like online courses, printables, templates, software, and membership sites. But be sure to choose a format that best suits your skills and the needs of your audience.

What to Do After Creating Your Digital Products

After all is set and done, you can take the following steps to sell.

#1 Set Up Your Sales Platform

Once your product is ready, you need a platform to sell it. There are many options available, you can create your own website to sell, or make use of others like Gumroad (digital products & memberships), Etsy (printables & templates), Shopify (all product types), Selar (eBooks, subscriptions, and online courses), Expertnaire (online courses), Amazon Kindle Direct Publishing (eBooks). These platforms handle payments, delivery and even marketing of your products. Thus, making it easy for you to focus on creating and promoting your products.

#2 Market Your Product

Creating a great product is just the beginning; you also need to market it effectively. A book left on a shelf would not read itself, so you must put the word out about your product. And you can combine both social media marketing, email marketing, search engine optimization (SEO), content marketing and paid advertising to get leads that convert into sales. Now, one important thing to note is that you will chase potential customers if you seem too desperate to sell. If all your promotions focus only on asking people to buy, then you will get low conversion rates.

Selling Other People's Products

If creating your own digital product sounds overwhelming, you can still generate passive income by legitimately selling other people's products. To this you must have the permission to do so. And this is possible for products that have resell rights. Here’s how you can get digital products with resell rights:

Join Affiliate Programs

An affiliate program allows you to legitimately sell other people’s products and earn commissions from them. But first you must sign up for affiliate programs preferably in your niche. Some popular ones include Amazon Associates, ClickBank, ShareASale, Selar, Expertnaire, Stakecut, and Commission Junction. Many companies also have their own affiliate programs, so check the websites of products you love and use to see if they offer an affiliate program.

Choose Products to Promote

After signing up on any of these platforms, you will find that there are so many products to choose from. Do not attempt to sell all the products you find. Select products that are relevant to your audience and that you believe in. Your audience will trust your recommendations more if they know you're genuinely using and benefiting from the products you promote.

Promote Products

The next step to take would be to promote your chosen products. You can write about the value of the products on your blog, or let people know about them on social media. Alternatively, you can set up an email list to promote these products. Be genuine and share your personal experiences with the products. Write detailed reviews, create how-to guides, and share tips on how to get the most out of the products.

Create Valuable Content

There are so many ways to create valuable content. The trick here is to always ensure that your content focuses on solving the pains of your audience or simply entertaining them. Your blog posts and videos should provide value to readers and viewers, you can also develop courses that educate your audience. Then, include your affiliate links naturally within this content or send them through direct messages upon request. Make sure your content is informative, engaging, and helpful.

Build a Strong Online Presence

Establishing a strong online presence will help to build trust with your audience. This would require you to be consistent. Consistently share valuable content, engage with your followers, and respond to their questions and comments. The more you build a relationship with your audience, the more likely they are to trust your recommendations and click on your affiliate links. Remember that every new business takes time to grow, if you are consistent and patient, you can make a lot of money from selling digital products.

Track Your Performance

You should regularly keep track of your performance by using the tools provided by affiliate programs and optimize your strategies when necessary. Monitor your clicks, conversions, and earnings to see what's working and what needs improvement. Use this data to refine your marketing efforts and maximize your income.

Call to Action

If you're ready to start your journey towards building wealth, there's no better time than now. Whether you choose to create your own digital products, dive into affiliate marketing, boost your portfolio, work fulltime or remotely, the opportunities are endless.

Visit my Instagram page for more tips and resources on getting started with passive income generation. I regularly share top strategies and tools that can help you succeed. Remember, the first step is always the hardest, but once you take it, you'll be amazed at the possibilities.

Let's embark on this journey together. Your path to passive income is just a click away. Click here to explore my recommended tools and resources that can help you get started.