The first thing Building Passive Income With Amazon going to require the effort, a lot more at the beginning than any other time right? Because you have to build it from scratch, but once you've built it and you built a product that's ranking on Amazon for keywords, you built a product that's got sufficient enough reviews - you have done it.
It's got that Foundation where it's not just making money once in a while. It's sustainably making money, right? Maybe you even have some external sources of traffic that are automatically sending people to your listing as well. Maybe you got Amazon ads turned on you got different ways or funneling into that. And so therefore that product can now provide back for you without much maintenance and work required for that's the process of how to make passive income on Amazon.
Now is there such a thing as a hundred percent passive income? Not really.
Let's say you build up your Amazon product and it's selling great, making you money. Let's say you decide just to forget about it for a year. You'd still be making money by the end of the year, but if you're not really proactively growing it and maintaining it, at least then in becomes either stagnant or slowly diminish and drop.
There's more competitors that come in and they're willing to put in work to compete with you or changes could occur on Amazon. And so that's why and that's by the way the case for most business models out there because there's no 100% passive income that really exists. Maybe investing in stocks that pay dividends can help, just set it and forget it not this basically no maintenance in that whatsoever but still there are risks. So, Amazon business can provide that passive income, but here's what I recommend is to maintain it right to check in on it to still, have certain things you do to help maintain it.
Now there are a few things you are going to have to actively do for this, either you do it or you can hire someone else to do it.
One thing is, you're going to have to reorder your inventory. So if you're running out of stock, running out of units to sell you're going to have to reach out to your supplier. You're gonna have to reorder that, create shipping labels and get that shipped to Amazon.
Another thing is customer support and shopify product research. This is something that is important, Amazon does handle a lot of customer support for you, but still sometimes customers will send you messages on Amazon or email you that it's your responsibility and Amazon expects this of you to respond to people in a timely matter. In fact, if you don't respond to people Amazon will, potentially shut you down. If you're not responding to people and being responsible with that, they usually give you warnings and whatnot first. They want people to have a positive customer experience on Amazon. And if they don't, then they know they're not going to come back to buy from him. So they want to make sure their sellers are responding to customers.
This is something that I do recommend outsourcing. You can hire a customer service rep in countries like the Philippines, India other countries around the world, where you don't have to pay them as much as you would versus paying someone in let's say North America, but they can handle the customer support for you. They might have some occasional questions for you that require your answer which you might have to chime in for once a week or so, that might require a little bit of work not unless you hire a manager that can do that for you. Okay, but that is something that will also be an ongoing responsibility.
Other than that, the only other thing that could require your time would be marketing. There's many ways to Market but there's some ways that are more active other ways that are more passive. So, for example a more passive way of marketing your product on Amazon (I'm talking about outside of Amazon), is getting traffic from Facebook or Google or YouTube or whatever might be, so some of my favorite ways are having a Blog. A Blog is something you're going to create content on, articles going to write them up related to your product and you're going to learn how to rank them in the search engines and Google, and when you create enough of these articles, they're also kind of like these seeds that you plant: At first nothing happens, you're getting no traffic, no visitors, but as you nurture it, you build it up and they rank in Google and they consistently start attracting people from the search engines and you funnel and Link that to your product on Amazon. I for example, my business I've got thousands of articles that are published on my website and a lot of them, they rank. I've got hundreds at rank in Google, it consistently makes me thousands of visitors every month. I don't do anything guys. It's just set it and forget it articles, that I wrote five years ago - five years ago that are still getting traffic and making me money. Same thing even to my YouTube channel. I've got videos that reach over 11.1 to 1.4 million views per month and majority of that, 89% of that is not my new videos or videos that I published a year ago, two years three, four five years ago. You might think: “well, blog YouTube channel. I'm going to consistently publish videos”. Not necessarily, I could stop publishing videos and all those other videos published before are still going to get views and still make me money and still build my business if I want to grow. Yes, I have to publish more videos because otherwise it could slowly decline, but I don't have to publish more videos or publish more articles. It's pretty much, I planted the seeds, the seeds have flourished and blossomed into trees and I haven't got a lot of these trees that keep providing for me. So content can be great for that.
Running ads like pay per click, advertising Amazon ads, Instagram ads. Those do require a little bit of active work because you have to optimize them. But the other way that you can look at this is - you can outsource a lot of this stuff, if you want to hire someone that could do this for you. They can run and manage that stuff for you.
Now, it is going to take time to plant the seeds and to water them and that's the time you're going to put in but you have to do so and believe in the vision, the potential of what it will therefore provide for you because you'll be able to reap the rewards of the benefits later. You have to just be willing to do the work up front. And then just be willing to maintain it there after that. Okay, if you're willing to do that, then you can be able to turn this into a great passive income model.