Phil, do like a turtle and pull your head in mate.
It never rains money, I know because I’ve been sampling the skies for years now.
Maybe you can make it rain money – shake that booty and do a little money rain dance. OK, jokes aside. What’s the best way to build a passive income? It depends on which path you want to take, there’s a few different options here and I’ll lay them out.
- Authority Sites
- Niche Sites
- Drop Shipping
- Learning Sites
Building An Authority Site
An authority site is where you position yourself, as the title suggests, an authority in the topic or subject you would like to cover. Authority sites work best when you are deeply passionate about something as they require more hard work compared to the others, but in the long run would probably pay bigger dividends. They require frequent updating with fresh and insightful content, and building a readership that continually checks back in for more. They say to jot down 5 or 6 of your biggest interests and look at the intersection of different combinations of these. The idea is that if you are quite good at each of these, then the combination of them will mean you become an authority as it’s like factorisation – as the number gets higher, your authority gets greater. You follow me? Let’s see if I can get yours correct:
- Learning Chinese Language and Culture
- Rock Climbing 😉
- Avoiding People
- Studying Automation Engineering
- Kendrick Lamar
So you might say, oh look, I love Chinese shit and I’ve really got a hankering for avoiding people. I could write an authority site on how to experience the Chinese culture while avoiding people, saying the best times to go visit places or learning Chinese language for introverts. You follow me? It is a bit tricky to find an intersection of interests that works, but if you manage one don’t underestimate the power of your passion (as long as you’re motivated ya lazy sh!t). C’mon get a move on! Jot them down now!
Building A Niche Site
On the other hand, if you were to build a niche site, it is very unlikely that you would find any real interest in the subject. This is because the success of niche sites primarily boils down to keyword competition and commercial intent. It is possible that you might find something you like when doing keyword research to find a niche, but I think it’s very unlikely. What is becoming very popular these days is to take a look at the Amazon best seller list, and filter down into the smaller sub-categories. Then take a look at the products and their prices (we want something that is at least over $20).
NOTE: Don’t perform keyword research on an exact match to the sub-category title that Amazon uses. This is because you will be going head to head against the big dog and it will make it very difficult for you to reach a good position on the first page of Google.
Once you find a product sub-category, or should I say, a product sub-sub-sub-category (or maybe even deeper), open up your Google Keyword Planner account and perform your keyword research. The bid amount for the ad tells us the commercial intent of the keyword – the higher the bid, the more likely it is to convert into a sale. From this keyword research, you should also be looking for a domain name.
There’s two acronyms I’ll alert you to here: PMD and EMD. These stand for – Partial Match Domain and Exact Match Domain. When we speak about these we always reference keywords. These can be quite powerful for getting your domain onto the first page of Google, but recently Google introduced an EMD filter in it’s algorithm as people were schooling the system and poor quality sites with thin content were ranking highly just because they had an EMD for the searched keyword. PMDs are still proving beneficial and I think that’s a good option to target, for now forget about EMDs.
As an example:
Let’s say you find a good niche with a best seller product, there’s commercial intent and relatively low competition. The product is SpongeBob SquarePants Meme Mask. You find in Google Keyword Planner that there are 600 searches monthly for Best SpongeBob SquarePants Mask with low competition. So you rub your chin a little bit and a lightbulb pops up over your head – turn it off immediately because you need to focus here! A good domain name might be www.bestspongebobmaskguide.com. It is a PMD and also includes guide which also gives it a little authoritative flair.
NOTE: Shorter is better though. Absolutely under no circumstances should you go for: www.bestspongebobsquarepantsmememaskguide.com. Google will banish you to the despair filled depths of the internet alongside other crummy sites like buzzfeed.com and kimkardashian.com.
Niche sites are good passive income earners because they require very little input. You set them up with enough articles and update them perhaps once a month with new content and they keep ticking over.
Performing Keyword Competition Analysis
Now this is the make or break part. Good keyword competition analysis will decide your fate as a successful online entrepreneur and take you from a wantrepreneur to a dead-set legendpreneur. The MOZ bar I told you about is critical in getting an understanding of your competition. The bar features a PA and a DA – these are Page Authority and Domain Authority.
Some say DA is no longer relevant and we should only focus on PA. I think when looking at competition, we are really cooking with gas if we find that the top two or three have both a PA and DA at or below thirty. If DA is high, but PA is less than thirty, this is OK but starting to get competitive. If PA is above 50 I would start looking at different keywords or niche.
So take a look in the screenshot above. The second set of red arrows show the Facebook page which has 100 DA – makes sense doesn’t it, Facebook is one of the biggest sites out there, but it’s PA is only 1 for the keyword which means you should be able to quite easily outrank it.
The first set of red arrows show a site which would be more difficult to outrank. It has good DA and PA.
If any of the following sites are on the first page of Google for your selected keyword, then it is not a good indication of an easy niche to target:
- WebMD or any online doctor stuff
If any of the following sites are on the first page of Google for your selected keyword, then it is a GOOD indication of an easy niche to target:
- Yahoo Answers
- Blogspot branded sites
- WordPress branded sites
I will endeavour to add dropshipping sites and learning sites early next week if you are interested. By the sounds of things an authority site would be the go for us or you, because you are legitimately interested in and passionate about helping others and so content creation should come easily. Please leave some feedback so I can make the content better 🙂
Sug og svelg, god helg!