This post will be about how you can create assets so that you can generate income regardless of whether you do the work or not.
You might be thinking that when it comes to the word “asset,” accounting stuff come into mind. But in this case, I’m trying to debunk that confusion in this article. Trust me, when I first encountered that word, I assumed that it’s only applicable to large businesses with their complex accounting systems and whatnot.
But as time went on, I realized that it’s not really what I perceived and knew. If you know the meaning and the reasoning behind it, you can work out towards your favor. Of course, only if you are willing to get to learn more and work your ass off so that you can earn income no matter how much you do your work.
Okay, since I said that the word ‘asset’ isn’t about complicated accounting stuff, then:
What exactly is an asset?
Simply put, an asset is anything that brings you income. I learned that from reading Rich Dad Poor Dad by Robert Kiyosaki, whereby anything you own that brings money into your pocket is considered an asset. If it costs you money instead, that’s a liability.
Now bear in mind that not many people could get a grasp of how an asset works, and even if they do, they assume that it’s not a big deal.
For example, let’s say you have your website stuffed with several articles with affiliate links or even have some advertisements placed in many places within your site.
If anyone visits your site, you gain some ad income since the ad displays the moment your visitor scroll through your website.
Also, let us assume that your article explains a particular problem and providing a solution or product which may help your readers. If they find your article resonates with what they are looking for and sign up or buy a product through your affiliate link, you get a commission percentage.
At first, you have to spend a chunk of your time writing an article and include some affiliate links within your article. But once you managed to attract your audience to read your article and click through your affiliate link, for instance, you pretty much don’t have to do anything. Sit back and watch your traffic and income grow.
That is one of the many examples of how assets work in theory. I said “theory” because the reality is that it’s not an easy process, and it can’t be achieved overnight (unless you have that superpower). So…
Why creating assets?
If you look through the writing article example above, you may feel that it’s not hard to accomplish, and I couldn’t agree more!
Thanks to the Internet, you can come up with what you want to write and….. write that damn article!
Of course, you need to consider your audience’s problems and how you can solve them by explaining in your article.
But tell me, how much does it cost to start writing an article? I can tell you: it’s ZERO.
Just a disclaimer: this post contains affiliate or referral links. This means I may earn a commission if you choose to sign up for a program or make a purchase using my link at no additional cost to you. Thank you so much!
Setting up a self-host website? If you host through SiteGround, for instance, the cheapest plan costs around $3.95 per month. That’s way more affordable than starting a brick and mortar business from scratch!
Researching your target audience? ZERO. Google has already done the market research for you. You only need to do the online search right.
Anyway, that’s an example of how you can create assets without costing you much money, or even zero. In this case, an article or blog post is considered an asset because it can earn income passively, of course, if you do it right, plus without being so salesy.
(I explained the difference between passive income and active income in this post!)
You could have purchased instead of creating the assets, right?
If you have the financial means to purchase assets from someone else or any listings on the web, then, by all means, go ahead.
But make sure you know what you are doing. Do rigorous research on what kind of assets you want to buy, and see if you do need some things before you can earn income from your purchased assets. Watch out for potential scams that may happen if you ever buy any assets.
For beginners, you may not have the means to buy an established website or any assets as the upfront cost may be high. So, in my opinion, it is better to create assets from scratch, especially when you have a little cash in your hands. As I mentioned before, setting up a decent-looking website would cost you $3.95 with SiteGround.
What are the examples of income-generating assets?
I did mention an example above. A blog post or article is one of the examples of income-generating assets.
Fair enough, having your own website, as in, self-hosted website, can be an asset if you can figure out monetizing in many ways. For example, providing freelance services through promoting on your site can potentially bring you income while helping your client achieve their goals through your work.
Another example of an income-generating asset is by creating an eBook. Nowadays, writing an eBook can be done by simply typing into a word processing software like Microsoft Word or Google Docs. If you have the design chops, you can even make your eBook more attractive by using designing software like Canva or PicMonkey.
Simply put, you create something once, you monetize it, and people would buy it from you at any time of the day repeatedly.
There are so many more examples of assets that can potentially bring you income, actively or passively, which I will explain in another article.
How can you create assets from scratch?
There are many ways you can kick-start your asset creation from scratch.
As I mentioned, creating a self-host website is one of the cheapest and fastest ways to get your digital property set up (you can sign up through SiteGround here!). Why would I recommend creating a website? Because you get the shots to decide on how you want to monetize your site and implement many monetizing methods.
Of course, that’s not the only way to create assets. You can also create an online product that can be done cheaply through any software. Also, you may want to consider charging recurring subscriptions for the products or services you frequently sell every week or month.
What is the best asset to own?
The best asset to own is the one you are familiar with, and you prefer the most. It depends on you and your passion :).
If you like creating websites, then you might as well creating and monetizing one. If you like teaching, you may want to create an online course and charge accordingly from there.
Similarly, if you are more familiar with certain assets and want to buy the existing ones, do it. Do due diligence and make sure you know the risk and reward of what you want to own.
But most importantly,
You (yes, you!) are the most reliable asset. Nowadays, you can learn pretty much anything on the web. Thousands of online courses sprang up. Some are free, and some are paid.
Don’t know how to create a website? Start learning it! Have no idea on how to market yourself? Learn it as well!
Either way, you know yourself better, and don’t let your confidence level dip because you don’t know how to do something. Just get out there, learn what you want to learn, and, most importantly, do it!