Passive income strategies for financial freedom

23 Best Passive income books I’ve analyzed.

The best ideas from the best passive income books

Introduction

We are all in a rat race. It feels trying to work day in and day out, with no end in sight. An endless marathon.

The problem is that you exchange your time for money. This is why you are working all the time.

Here I will explain how to stop selling your time and start selling your own products or services.

I know it sounds overwhelming … but it is not as complicated as you think it is. This post could literally change your life.

In this post, I will present to you the best ideas on passive income from 23 books.

Each book has its strengths, and on this page, I wanted to help you find the best book to help you create multiple streams of passive income.

This post is not typical. Rather than a  book by book review, I grouped the ideas into six groups. Each of these groups represents one step in your journey.

  • Picking a topic and a niche
  • Your Mental Framework
  • Developing your passive income idea
  • Marketing
  • Expanding your business
  • Reinvesting your profits

Each book is referenced using its abbreviation

  1. 4HWW: Four hour work week
  2. CI : Crushing It!
  3. CM: Click Millionaires
  4. ETF: Eat that frog
  5. GRC: Get Rich Click
  6. GRG: Official Get Rich Guide To Information Marketing
  7. HTW: How To Write & Sell Simple Information For Fun And Profit
  8. KC: KaChing
  9. MB: Minimalist Business
  10. PB: ProBlogger
  11. SAP: Start A Paid Membership Site
  12. SFS: The Six-Figure Second Income
  13. SUE: Scaling Up Excellence
  14. TEC: The E-Code: 33 Internet Superstars Reveal 43 Ways To Make Money Online
  15. TFD: The Founder’s Dilemmas
  16. TPP : The productivity project
  17. TRM: The Richest Man in Babylon
  18. RDPD : Rich dad poor dad
  19. TSR: Three Stories of Resilience
  20. FRF: Everything you need to know about Financial Resilience & Freedom
  21. MYF: Money is your friend
  22. JTR: John Treed Books on real estate investing
  23. TLB: The Little Book of Common Sense Investing

The best passive income books converge on one business model: Information products.

An info product is a product containing unique and actionable information. Users buy it so they can entertain or inform themselves about very specific topics.

With an info product business model, firsts an audience is built. This is done by publishing good quality info through various channels.

The next step is to sell your audience premium information, this is the info product.

When profits start coming in, they are re-invested in passive income investments LINK and other side hustles LINK. Compounding your money.

Many of us are in the rat race. We do not see it clearly. Those around us are running as hard as we are. We assume it is normal.

It is like, we are all in a matrix of hamster wheels.  Violently spinning.

The best years of your life are spent working for an employer that will fire you, the minute sales are down.

Side Hustles can be developed into Passive income resources. These are the gateway out of the rat race. You can switch off the spinning wheel and adopt a more human and humane life.

The ideas in these 23 books will create a road map from the hamster wheel to the deck chair (or at least your own office)

Why info products?

Many of these books, agree that info products have the highest ROI. While doing this research CM, suggest keeping a journal of all your thoughts and ideas. Get some pen and paper…

The advantages of Info products are

  • be created will little capital upfront
  • be super focused, which make it easier to market.

(WHWK) Info products can be sold an infinite number of times. They are in digital format and can be easily replicated.  The maintenance on evergreen info products is minimal. In addition, they can be easily upgraded and re-sold in different media formats at different price points.

Picking a Sub Niche

(KC) Niching down is key.

Niching down means picking a very specific topic. Take this as an example!

  • General news website
    • Regional General news website
      • Local General news website
        • Local news site focused on nightlife
          • Local news site focused on Saturday night events
            • Saturday night events performed by a particular DJ

(KC) In today’s super competitive world to succeed you need to to be unique and excel at it. Do it better than any other player in the game.

(4WHWK) A niche needs to be picked for both its revenue potential and your passion for the topic. Building a following is hard. There will be times when you will doubt the whole project. Passion for the topic that will make you pull through these hard times.

100S present a case study on a snowboarder who created a DVD course showing all his cool snowboarding tricks. That is an excellent match between profit and passion. The course yields more than $200k a year on this course! Be Inspired!

(TFD) Every person has “human, social and financial capital”. Make a list of your own resources. Use them to move your project ahead faster.

Human capital can give you access to advice and a network of contacts. Social capital is a potential client base and a source of ideas.

Choose a niche in the context of all your resources, including both the internal ones and the external ones. This will increase your chances of success. Resources come in many different forms. There might be some which you might have overlooked this article will help you uncover them: Consider the 7 categories of passive income.

Experts and Gurus

(CM) In a super specific niche, it is easier to become an expert and a leading voice. For example, getting a readership to your content on fishing is hard, because the competition on this subject is tough.

It is easier to get readers, for content, on fishing in a particular river you are familiar with. You have knowledge on that river no one else has. This is what turns average content into superb content.

(SAP) Being an expert is not enough, become a celebrity in your niche. There are many influencers who manage to bring their knowledge to such heights that they are considered Gurus.

These celebrities can practically print their own money.

Celebrities have the power because they are quoted in newspapers and are interviewed on the subject. Mentions bring in links to their site. Links are the lifeblood of Google rankings. More links more authority. The higher the authority, the more Google trusts a site, which makes their pages rocket to the top positions.

Market Supply and Demand

(SFS) There needs to be a demand for your chosen topic. The market needs to be craving this information so that your info products will sell like hot cakes. Make sure that your sub-niche needs to solve an actual problem.

People want to ease a pain point. They want things to be better; less costly, more attractive, easier to do. When your sub-niche addresses a paint point it will be much easier to sell them premium info products.

(GRG) Understand the market dynamics of supply and demand in your chose sub-niche. How much demand is there for information in this domain? Who controls the supply? What is the quality of the competition and do you have the potential to match it? What mediums are most commonly used?

(CM) The world is facing many huge problems all the time, trying to solve the big ones is a waste of time. Break a problem down into manageable chunks. Deal with something you can handle yourself. For example, trying to solve the problem of the unbanked at once is doomed to fail. Tackling a smaller part of the problem is much more likely to have success. Why not try to get a small village banked first and then move on to the next …

Blue sky thinking is about tapping into completely new markets. Ones which do not even exist yet. Think about inventions such as phones, electricity and planes. The market for these products was only created after the people realised all the benefits that these inventions can provide. It takes some extra effort not to reinvent the wheel. Inventions big and small create a USP (Unique Selling Proposition. In business it is all about differentiation and a USP will give you a moat to defend your market.

Other resources: Designing new business models: blue sky thinking and testing

Your Mental Framework

On Procrastination

(TRM) The best antidote to procrastination is momentum. Seize an opportunity quickly, act on it and then follow through. Do so quickly so you empower yourself.

If you feel you need a pep talk, SFS can provide a good dose.

Case studies are motivators, they show what people have achieved and how they did it.  SAP and GRG have a number of case studies about common people building passive income business, in particular, membership sites.

One of the short stories in 3RS features two ant colonies. Discover how their approach to wealth differs. Reading it can help you take massive action towards your financial goals.

Your Attitude

CI suggests six core values. A frame of mind is framing of thoughts according to certain values.

  1. Intent – Genuine intentions
  2. Authenticity – Be yourself
  3. Passion – A love for your sub-niche

  4. Patience – Think about the long term, do not go for the short term
  5. Speed – Do not allow yourself to get lost
  6. Work hard – Cancel Netflix.

(PB) Similar to CIs core values, PB suggests years of being kind, humble, hardworking and networking. Those who keep at it, will definitely find success.

Keeping the same frame of mind for a long period of time turns actions into habits: Lear more what are the seven habits of the PI millionaire.

(MYF) has a collection of prompter questions. These questions are for you. They will help you think about where you are financially. More importantl,y they make you think about the future. Your financial future.

This work is to help you identify “The Gap”.

This is the Chasm that separates you from your future financial objectives.

To Do lists

These books provide plenty of thoughts and ideas.

You very well know that as long these thoughts just stay in your mind, you will not see any tangible benefits.

You need to take action.

Action can be more easily taken when you have to-do lists.

I prefer paper to do lists, that get in the way and keep nagging you about the stuff that really needs to be done.

(ETF) In to do list jargon, frogs, are action items which keep jumping to the back of the to-do list.

Guess what, these to do items are usually the ones which have the biggest impact in your life.

So ETF suggests eating your biggest frog in the morning. Do the important things first.

TGR and ETF, tell us that single focus and clarity are the drivers of profitable action. TPP refer to this as a “Deep meaningful reason” as they say in French “raison d’être”.

“Failing to plan is planning to fail”. The Pareto principle 80/20 rule applies to your project management.

20% of your time should be spent planning and research. While 80% need to be acting on your plans.

In addition, 20% of your tasks will have 80% of your impact. Pick the tasks with the highest potential ROI FIRST.

All the tasks of the to-do list, are like a jigsaw building your masterpieces one task at a time. In 3RS, a story depicts of a one-legged street beggar. This man made a U-turn on his life through taking one single step in the right direction. He stood up for himself. A lesson we all need to be reminded of from time to time.

(4HWW) (RDPD) To do lists can become endless and one easy way to cut them down is by hiring the right professionals. Pay them well and take care of them and they will return that favour a 1000 times back.

Action

TPP, brings two important concepts: “time, attention and energy” and “biological prime time”. Take action on your important tasks, when your body and mind are their most efficient.

(4HWW) Setting up a passive income business will take a few 1000s hours.

Yes , that is thousands.

All the work of passive income business has been done upfront.

There is no free lunch in this world.

Performing the work when you are the most efficient and clear minded will cut that time in half if not less. A high-performance hour much more can be done than in drowsy afternoon hour.

(SFS)  Your info based business has two main drivers content creation and distribution. Make sure your tasks contribute directly to the success of these goals.

(TPP) The less action you take, the harder it will be to look back.

If you are proud of your past, it is easier to have a beautiful future.

Act accordingly.

How will your future self think of your past self, when no action has been taken on yesterday’s to do list.

What feelings will your future self have when, he or she have to start building the dream from ground zero?

There really is no excuse to start building your dream today!

Managing Costs

To be financially free your income needs to exceed your expenses. Many books focus on increasing income. Your lifestyle determines how much income you actually need to reach FI.

(MB) A passive income business is one side of financial freedom. The other side is cutting your business and living costs.

When cutting expenses, you save both time and money! Learn more about the two different types of FIRE (Financial Independence Early retirement) leanFIRE vs fatFIRE.

(SAP) Today setting up an info product takes little capital upfront. A few decades ago it was a massive investment in both money and coordination.

This makes it easy to start for you, but also for your competition.

Marketing

When the internet was still relatively a new thing, a blog post guaranteed traffic. It is not that easy anymore. Quality is your only way to get the attention of your audience.

Today users have clustered around several platforms such as Facebook, Twitter, Instagram and Reddit. A marketer’s job is to engage them on these platforms or (albeit temporarily) drag them out. Each interaction building trust.

Trust can then be monetized into sales and word of mouth marketing.

Ranking on Google is becoming harder as resourceful corporations have moved into the content game. They link to each others posts make it harder for newcomers to break into a niche.

A basic grasp of SEO is essential. GRC, have a checklist explaining such things as keyword research, quality content, blog post length and all the other things you need to rank your business on google.

(GRG) Affiliates are your allies. Sell your product through an affiliate network for more sales.  This puts your products on many more webpage. Affiliates are only paid sales on commissions.

(TEC) Autoresponders are emails which engage a potential client through information. An autoresponder will send a sequence of emails, one chaining the other in a period of days. Such a system tries to get the potential client to take action. (SFS) emphasizes how the success of autoresponders skyrockets when trust is built before a tentative for a sale is made.

Monetising it

(KC) The three business models that work in the info marketing space:

(KC) provide an excellent comparison between these three models. For example, Online Courses can be built and sold as is. Membership sites need to be continuously updated.

(100S) You can give the man a fish or a fishing rod if you give him a fishing rod you will never see him again. He will catch his own fish because you made himself succificent.

This is the problem with a business who sells one product which lasts a whole lifetime. That client will never come back for more. Recurring revenue is possible if the

  • first product sold is of extremely good quality
  • material leads the client thirsty for more
  • info is sold in chunks.

(SFS)  Membership sites are the best asset for recurring revenue. Members want to stay members because of the fresh valuable content you need to continue adding.

If you have a lot of content, users might want to subscribe for several months to consume it all. (PB) You can create stickiness in your community through quality, human interaction, gamification (badges) and other incentives.

Our article, How to create passive income assets with no money contains tips on community building.

This will keep visitors coming back for more.

(PB) Info products lead to other monetisation channels. Your content is your ambassador. This is the road to becoming a celebrity in your topic. Naturally, you will then be invited as  a speaker in conferences, consulting and even branded products.

eBooks , Mobile Apps and Youtube channels are an excellent way to diversify your revenue streams and to get more recognition of your expertise in your topic.

Pricing

(GRG) Underpricing is very common when selling info products. Price should reflect the full potential of the information once the consumer uses it to its full extent. The responsibility to make the best use of this info is the consumer. Do not be shy about your price.

(H2W) Content can be delivered in different ways, the same idea can be transmitted across different mediums. One strategy to accommodate all tastes is to repackage the same info in different mediums (video, text or audio). Each of these or a combination thereof will have a different price point.

(HTW) has some important lessons on repackaging The same information can be priced higher if it is delivered in a more professional way. The packaging works for both physical products and digital ones!

Expanding your business

(TFD) To expand you need to let go, give control to others. You can only scale with hiring new people.

Many founders struggle with giving away control of their creation. Each new hire will inevitably take decisions on your behalf, leaving you to focus on the bigger picture rather than the day to day.

Many founders who founded their business solo find this very hard. Those who do realize that their role is not to play King but to play coordinator, will unlock the tremendous potential of their business.

Hiring professionals (RDPD) is an easy way to access decades of experience for a relatively low cost. Employees are not seasoned professionals, they have a different mindset. Professionals are brought in to help set up frameworks and strategies, employees are there to execute that vision.

(SUE) Tired Brains do not work efficiently. When tired,  action is focused on the short term. Rested brains are more likely to take “slower” decisions which are long term and strategic. Take advantage of both your fast and slow thinking systems. Taking decisions slowly has many benefits.

Reinvesting your profits

(TRM) Pay yourself first. Save at least 10% of your income. The rest should be used thriftily. Spend less than you earn!

(RDPD) Buy assets not liabilities, the power of compound interest is to be used so money makes even more money.

(TRM and RDPD) The counsel of wise man (professionals) is expensive in the short term but cheap in the longer term. Use them to set up the most tax efficient vehicles for your investing.

Investing

There are three major avenues the passive income investor can take

  • Real Estate
  • Financial Investments
  • Passive income business
  • Risky Crypto

Real Estate

John Treed is a real estate guru who has over 40 years experience, he has written over 20 books on real estate investing.

Real estate investing is not an activity that should be taken lightly. As in anything, there is a learning curve. One needs skills in setting up a real estate investment strategy setting deals, financing and mortgage structures, increasing the value of properties, dealing with tenants and property tax planning. That is quite a list. Learn how to use AirBnB as an investor and how to pick the best real estate investment for you.

You can invest in real estate without the associated hassle through REIT investing and Property Crowdfunding

Financial Investments

(TLB) Boogle does a very convincing data driven presentation about investing in low cost index investing. He explains that timing the market and stock picking are futile, the majority cannot beat the average returns of the market.

Since it is very hard and expensive to find an underpriced stock, his suggestion is:  “haystack investing”. Buy a low cost index fund. Index investing is passive and allows your investments to compound over time.

Fads and market hype, lure investors into fashionable stocks. However, these fads always turn out to be profitable for the few. John Boogle is the founder of Vanguard, a provider of low cost investing funds.

Learn more:

Buying passive income businesses

(PB) has a good chapter on buying established blogs and then taking them to the next level.

Crypto

Crypto is very risky, the risk of losing all your capital is high. (Did I say crypto is risky) There are several risky ways to make passive income from crypto.

Conclusion

Passive income investing is a whole universe of mindsets, strategies, action, asset creation and financial planning. In this article ,we discussed ideas in passive income books which will let you build a product from scratch and then invest the proceeds to gather further income.

This article just skimmed on the content of these articles. I wanted to provide you with a birds eye view of their content so you can pick those which you think are most valuable to yourself.

PS:

Financial freedom, does not give you true freedom.

You cannot have true freedom without a noble cause.

Hedonistic financial freedom will not give you the eulogy you really want at your funeral.

What is a life if it does not leave its mark on this spinning orb of stone and metal?

Once free of the chains of 9 to 5, you can set on a journey to make the world a better place for all those still trapped in the 9 to 5.

PSS:

This post took a humongous amount of hours to write…

and I am giving it away for free.

You would motivate me to write more if you share it with your best friends!

 

References

  1. 4HWW: Four hour work week
  2. CI : Crushing It!
  3. CM: Click Millionaires
  4. ETF: Eat that frog
  5. GRC: Get Rich Click
  6. GRG: Official Get Rich Guide To Information Marketing
  7. HTW: How To Write & Sell Simple Information For Fun And Profit
  8. KC: KaChing
  9. MB: Minimalist Business
  10. PB: proBlogger
  11. SAP: Start A Paid Membership Site
  12. SFS: The Six-Figure Second Income
  13. SUE: Scaling Up Excellence
  14. TEC: The E-Code: 33 Internet Superstars Reveal 43 Ways To Make Money Online
  15. TFD: The Founder’s Dilemmas
  16. TPP : The productivity project
  17. TRM: The Richest Man in Babylon
  18. RDPD : Rich dad poor dad
  19. TSR: Three Stories of Resilience
  20. FRF: Everything you need to know about Financial Resilience & Freedom
  21. MYF: Money is your friend
  22. JTR: John Treed Books on real estate investing
  23. TLB: The Little Book of Common Sense Investing

Not investment advice. Not financial advice. Consult your financial advisor. Not a recommendation to buy, sell or hold. The staff of this site may own these digital asset/s mentioned on this page. Investing is risky and you may lose all your capital. See full disclaimer.

Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.

Author: Jim Reynolds
Jim Reynolds. Is passionate about finance, passive income and cryptocurrencies. He writes about his passions on NodesOfValue.com. He has worked in the tech and financial industry for a few decades. He holds a masters in business admin and a bachelors in IT. All his writings are not investment advice.

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