Learn how to make a passive income by writing eBooks.

03rd Oct 2018

Not investment or financial advice. This is not an endorsement or recommendation to buy, sell or hold.  The staff of this site may own the asset/s mentioned on this page. Investing is risky and you may lose all your capital. Do your own research. See full disclaimer.

We receive no direct payments from the mentioned companies. Some links on this page are affiliate links, at no extra cost to you, we may receive commissions when you use them. However, we try our best to keep our articles fair and balanced.


Ebooks are amazing, anybody can write one and sell one! If you can write, read and have a passion for something you can turn that knowledge into a book. Your effort to create the book is only executed once, however it can be sold many many times. The sales are passive, meaning you do not have to keep investing your efforts to sell. Thus the resulting income would be passive income. See more: Why are the advantages of passive income?

How do you choose your content and theme of your Ebook?

There are many niches. Most of them have tough competition others less so. Building an ebook as about finding the new emerging niches where there is not too much competition yet. Stay informed about the cutting edge of something and eventually, you will find your own niche or create one from scratch.

There are two strategies; that of following the crowd in order to give them what they want or to create something completely new. The blue sky strategy is about creating something which no one has already through of rather than cloning existing material.

Some topics are very complex, with the info spread among many different sources. A good idea would be to create a well-structured FAQ for a certain topic and turn that into an eBook.

Another key factor is passion. If you follow your passion, you have a much higher chance of success. This is important because writing an eBook is a multi-week / month commitment. Remember though that this investment in your eBook may yield a lifetime of passive income. Seek out inspiring authors and research their motivation to writing, see an example here from George Orwell.

The first decision on your journey to writing an eBook:

Fiction or NonFiction? Use the Amazon Kindle Best-Selling Book List to understand the best topics which suit you best. Research keywords using the Google Keyword Tool to identify particular niches and use the Answer the public to find out common questions people are asking about certain topics.


People are interested to become more successful and they are looking for tools to do so. The nonfiction main genres of eBooks are Money, Love. Health, Self-help. The advantage of non-function books is that they tend to be shorter around 35,000 words and needs less creativity to write. Read More: How to write a self-help book.

Fiction subgenres:

If you would like to create a masterpiece of fiction, there is one piece of advice “show don’t tell” the second one is to choose your genre carefully. The main ones are Science Fiction, Thrillers, Detective stories. Fiction books tend to be around 50,000 to 100,000 words. Although there is a market for short stories and both types do have a great potential for passive income.

Once you have a topic in mind, create a mind map of all your ideas, identify gaps and read up on those. Use Lateral thinking to look at these topics in a way no one has done this before.

Once you have an idea of the main ideas! You have your chapters. Then create the subtitles in each chapter and then you have your book map or table of contents.

The book map or table of contents is the first step in your journey to build a passive income by selling eBooks.


There are two main ways to write a book, do it yourself or hire others to write it for you. Writers who write for others are ghostwriters. Those who commission a book need to find ghostwriters who have the right knowledge and attitude. This is not easy; Upwork is a site where you may find such talent. You can check their work for plagiarism by using copyscape , Grammarly or Google.

On the other hand, you can learn the skill of wordsmithing by becoming a ghostwriter yourself. You can hit two birds with one stone learning to write and making some money in the process. Although this is not passive income, it will make your first attempt at writing your own book much more efficient.

Time is one crucial element in writing, be it waking up a few hours earlier or later you need to find the time. There are several writing clubs both online and offline which will keep you on track and motivated. Keep in mind your ultimate goal in mind, whether it is just to be able to either leanFire or fatFire. The process of becoming financially independent is both a financial one and an emotional one.

DIY Writing tools:

Writing tools

  • OneDrive and Google Drive: A place to store all your texts. Backups are paramount.
  • LibreOffice: The free version of Microsoft Word
  • Grammarly: An advance spell and grammar checker
  • Thesaurus: learn different words.
  • Writing Schedule: block your agenda with time to write.
  • Writing books and Communities to help you learn about writing.

The writing process

  1. Writing consist of building blocks in your own writing style
  2. Write keywords expand them
  3. Read what you write and give it your individual touch
  4. Edit
  5. Re-read.
  6. Once you are happy to review it again after a week
  7. Then send it to a proofreader or an editor if you want to invest that extra bit in the project.
  8. Keeping focused on the end goal is important.

If you have completed this stage congrats you are well on your way to becoming an authorpreneur or author-entrepreneur. This is someone who has turned eBooks into a business meaning they have enough books to support their lifestyle through multiple passive income streams. Consider that the more books you write the greater a passive income you will make and the more time you will have to write books.


Tools like Jutoh and Scrivener might help you to edit your document more easily. However keeping a few things in mind such as not using page number, not using text boxes and following the platforms editing instructions from the start will help you DIY this rather than buying special formatting software.

Choosing the platforms on which you want to sell

Each platform has a particular fan base, which is looking for particular books at particular prices. Some readers are willing more than others to risk investing money in an eBook from an author they may not be familiar with. Others are looking for established names who have good reviews.

These are some platforms have the potential for generating separate passive income streams for each of your eBooks.

Setting the price.

A low price does not necessarily result in higher sales and a higher price is not congruent with higher profits. A price needs to reflect the value and the image of your brand and in particular your book. Amazon takes a hefty 35% of the sale price from your eBook. Once you are an established author you can set a high price during the first few months of publishing and decrease it over time.

Tips to increase the Passive Income from an eBook

  • Start with one book, but then keep writing. The more eBooks you have the more streams of passive income and the more likely you will be creating better eBooks.Eventually, you will create a superstar eBook! The more passive income you earn, the more time you will have to write more eBooks!
  • When you do stumble upon a winner, create a series of ebooks on the same theme exploring different aspects, that way you can piggyback on the success of your previous eBook.
  • Keep in mind the specifics of each platform, for example, the KENP system gives you 0.006 per page read what this means is that unfortunately well-written books that deliver info n one page rather than 10 will be paid less. Whilst you can opt out of the lending program, you will also be removing an important part of your market.
  • Passive income is the money you get from something that you created once (book, music, etc)


  • The marketing of the book needs to addressed from start to finish. From the idea until the conclusion and everything in between.
  • Idea: Something you want to establish yourself as an authority or something you are already known for. If you already have a fan base, give them something to buy!
  • Support from friends and family: This is your first line of social proof. They will help you with giving you time, support and encouragement while you create your eBook. They will also (hopefully) buy your book and give you reasonable ratings! They are your first line of social proof.
  • Your platform: Having a platform will help you launch you more easily, grow it over time. A platform means a medium where you can connect to many individuals. This can be your own site, Facebook, Twitter or Instagram, a mailing list or a telegram channel. These are your seeds your test market from which to launch your eBook. Given them free copies of your books and ask them to submit their honest review on GoodReads.com and Amazon. This is your second line of social proof.
  • Cover: You can create a well-designed cover or a cheap one from  https://www.fiverr.com/ or making your own with the Amazon cover builder. The cover should be adapted to your audience.
  • Promotions: Kindle Free Book Promotions, Facebook Ads, Google Adsense, in niche forums and blogs. There are many tools to promote your book, use money cautiously cause advertising campaigns can make money disappear in a jiffy!


A book is much more than writing. I would account for 50% in writing effort and 50% in the marketing effort. Be ready for this, and plan your marketing from day one. Your efforts to generate a passive income will be much better rewarded. Keep trying. Do not get discouraged, learn from each book you write and make the next one better.


Not investment or financial advice. This is not an endorsement or recommendation to buy, sell or hold.  The staff of this site may own the asset/s mentioned on this page. Investing is risky and you may lose all your capital. Do your own research. See full disclaimer.

We receive no direct payments from the mentioned companies. Some links on this page are affiliate links, at no extra cost to you, we may receive commissions when you use them. However, we try our best to keep our articles fair and balanced.


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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