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Publishing on Amazon: How To Create Real Passive

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Publishing on Amazon: How To Create Real Passive Income
В©Copyright 2010 Digital LowDown
Publishing on Amazon: How To Create Real Passive Income
Table of Contents
Begin by publishing on Amazon for less than $20 ..........................................4
Forget about managing websites ......................................................................5
Outsource your marketing tasks to Amazon....................................................6
Outsource your fulfillment tasks to Amazon....................................................7
Make more money publishing on Amazon .......................................................8
Set up multiple passive income streams..........................................................8
Expand your market: publish for Kindle...........................................................9
How-To books are hot ......................................................................................10
How-To topic ideas are endless ......................................................................11
How to get started.............................................................................................11
В©Copyright 2010 Digital LowDown
Publishing on Amazon: How To Create Real Passive Income
You’ve probably heard of “The 4 Hour Workweek” -- it’s the bestseller by Tim
Ferriss that gave millions of people just like you visions of living on the beach
sipping fresh pineapple juice and collecting passive income checks.
According to his book, the way Tim started was by selling sports supplements
and outsourcing all of his work. But finding competent workers, hiring them,
training them and managing them is not such a simple hands-off task.
So unless you want to create another job for yourself -- managing a crew of
people -- you still need to find a better way to generate hands-free income.
Even Tim Ferris has moved on from his original outsourcing model. In the
updated version of “The 4 Hour Workweek”, he teaches affiliate marketing.
As an affiliate marketer, you sell other people’s products. The passive income
benefits are that you no longer have to manage a work crew and there’s no
customer service.
The downside is that you don’t control your own products. You don’t control their
quality and if you discover a market that has no ready-made affiliate product, you
have no way to enter it.
There must be a better way to generate passive income than having to manage
other people or being stuck with someone else’s products and markets.
And there is…
Publish your own physical books on Amazon.
Read on, and you’ll find out how you can publish your own paperback book for
less than $20, set it up once on Amazon and collect passive profits with no
overhead, no employees to manage…for as long as you like without lifting
another finger.
And you can do it over and over again to create as many passive income
streams as you can dream up….
В©Copyright 2010 Digital LowDown
Publishing on Amazon: How To Create Real Passive Income
Begin by publishing on Amazon for
less than $20
The problem with some of the most well known passive income business models
is that you need to already have a chunk of money up front in order to get in the
For example, take a look at stocks and bonds.
How many investment gurus promise that if you just make the right picks, you’ll
never have to work again? But in order to have a passive income stream you
can live on, you need to invest plenty of money up front.
What about a portfolio of rental properties?
If you don’t already own the properties outright, you have to either have the cash
to buy them, or go into deep debt. If you mortgage them, you have to hope that
your cash flow covers the payments every month. Real estate is not such a
carefree source of passive income anymore, is it?
But when you publish on Amazon, your start up cost is extremely low.
You don’t have to worry about any of the over head costs that traditional
publishers pay for up front, like printing hundreds or thousands of copies of your
book and storing them.
However, you do have to pay for a proof copy of your physical book to get started
-- you need to make sure that the buyers are getting what you wrote! But that’s
usually only $15 - $20. That’s all you need to start your publishing empire.
From there, Amazon keeps a share of the proceeds, and you make an average
of $5 to $7 for each copy of your book that sells.
Can you think of any other passive income business model that you can start for
less than $20…and never have to pay cash out of pocket again?
Even if you sell products from a website that only costs $10 per month, you have
to pay that for the life of the site. It may not add up to much in one year, but over
the course of 10 years, you will have paid $1,200.
For a book that’s published on Amazon and can bring in ongoing profits, over the
course of 10 years you will have paid…your original $20 for the proof copy.
It’s kind of amazing, isn’t it? And it gets even easier….
В©Copyright 2010 Digital LowDown
Publishing on Amazon: How To Create Real Passive Income
Forget about managing websites
When you publish on Amazon, website worries are a thing of the past.
You don’t need to learn how to set up a website.
You don’t need to hire anyone to set up a website for you.
You don’t need to spend time managing a website even if you know how.
There are plenty of viable passive income models that have arisen thanks to the
For example, people can make good money by setting up websites in various
niches and monetize them with ads from Google or from other affiliate programs
that pay a percentage for every sale.
But if you’ve tried your hand at setting up a website, you know that it’s not as
simple as it seems.
Even if you enjoy being a webmaster, it can take up a significant portion of your
Managing a website is certainly not passive.
Online hackers are multiplying like rabbits. New viruses emerge every month.
And the search engines that used to bring automatic traffic are changing their
algorithms daily.
Websites that used to hold first position for search terms on Google are suddenly
hidden twenty pages back and getting zero traffic.
But when you publish your book on Amazon, you won’t have to worry about page
rank, paying for traffic, search engine optimization or any of the hundreds of
geeky bits of trivia that are needed to keep a profitable website afloat
(No offense to geeks – without you there would be no Amazon! And you can
finally take a week off with this business model, too. Just write your book about
all of that geeky trivia that the rest of us will never figure out on our own!)
В©Copyright 2010 Digital LowDown
Publishing on Amazon: How To Create Real Passive Income
Outsource your marketing tasks to
If you’re like most people, when you think about writing a book, your mind
immediately starts conjuring up topics, titles, outlines and sources for your
Or you start playing with ideas for an opening line so powerful that when Oprah
reads it, she’ll call you personally to invite you to be on her show.
The point is, in the minds of most people, the process of writing a book revolves
around its contents. And once that’s written, edited and proofed you consider
yourself to be officially finished with writing the book.
But if you want to actually sell the book and make money from it, writing the book
is only half of the project.
In order to create your passive income stream, you have to market your book.
Some writers, especially those who are also public speakers, look forward to
being able to get in front of a camera of microphone and talk about their new
But most writers cringe at the thought. To them, the idea of selling and
marketing their book is as welcome as being stung by a swarm of angry bees.
If you’re one of those writers who panics at the thought of having to promote your
book, Amazon is the answer to your prayers.
With a monthly average of more than 60 million visitors (according to, the Amazon marketplace offers more potential
buyers than you could reach in a year-long promotion visiting
shopping malls throughout the country.
And by listing your book on Amazon, you never have to leave home or face a
microphone unless you really want to.
When you list your book on Amazon, they do the marketing and promotion for
So your original dream of being a published writer -- but not having to worry
about selling and marketing your book -- really can come true.
В©Copyright 2010 Digital LowDown
Publishing on Amazon: How To Create Real Passive Income
Even if you decide to hire a ghostwriter, which many busy people do (hey, do you
really think Donald Trump sat down at a computer and wrote his own book?), you
still won’t have to worry about marketing.
You can’t design a successful marketing plan more passive than that.
Outsource your fulfillment tasks to
The process of selling a book and getting it into the hands of the buyer includes a
number of steps that can take up a lot of your time if you try to do them yourself.
And they can eat up quite a bit of money if you have to hire, train and manage a
staff of workers to do them for you.
Here’s a list of materials and tasks that you need to handle when you self-publish
without using Amazon:
You need a way to take the order (website).
You need a way to take the payment (shopping cart software).
You need a place to print the book (printer).
You need a place to store the book (garage or warehouse).
You need people and materials to package the book for shipping (workers,
boxes & mailers, shipping labels).
6. You need a method to ship the book (Postal Service, UPS, FedEx, etc.).
7. You need people and a system to handle customer service (returns,
shipping issues, etc).
And remember that for all of those overhead costs, you’ll need to pay up front.
So you’ll need plenty of investment capital to pay for labor and materials in order
to start the ball rolling.
Or you can let Amazon do all of the hard work.
You won’t have to pay any ongoing fees for overhead. And Amazon will take
care of all of those fulfillment steps for you, from taking the orders to buying the
book mailers to managing the employees…even shipping your physical book.
And then they’ll pay you your royalty for every book you sell.
Now that’s real passive income.
В©Copyright 2010 Digital LowDown
Publishing on Amazon: How To Create Real Passive Income
Make more money publishing on
When you publish your own book and list it on Amazon, you’re profits are much
higher than if your book was published the traditional way.
You don’t have to pay a book agent to find someone who will publish your book.
And you won’t have to watch a publisher keep most of your profits.
When books are published by a traditional publisher, authors only receive
�royalties’, which are usually anywhere from $.50 - $1.50 per book.
But when you publish on Amazon, you earn much more per sale – more in
the neighborhood of $4 to $7 per book.
It makes you wonder why anyone would use a traditional publisher, doesn’t’ it?
There’s another issue -- when do you actually collect your money?
Unless you’re an author with a proven track record, don’t count on an advance
from the publisher. You’ll have to rely on royalties from the actual sales, and that
can take 6 months or more. (You can get the scoop about how authors really
make money from traditional publishers from best-selling “Twilight Fall” author
Lynn Viehl at -- it’s not
as glamorous as you think).
But when you publish on Amazon, you’ll get your checks within 30 to 60 days.
That’s a much better source of passive income than waiting for publishers to pay
you for your own book.
Set up multiple passive income
Once you know the ropes -- meaning once you’ve published one book and are
familiar with the system -- you can publish as many books as you want.
Many �how-to’ authors find a profitable niche then write several books in a series,
and you can follow their business plan.
В©Copyright 2010 Digital LowDown
Publishing on Amazon: How To Create Real Passive Income
For example, Jerry Baker is a best selling author of gardening books. Although
he doesn’t publish his own books, there’s no reason you can’t learn from his
publisher’s strategy.
Jerry’s how-to topics include books about growing greener grass, solving
backyard problems, growing tomatoes, growing perennials and dozens more.
So when a gardener who likes Jerry’s tomato growing book needs a book on
growing other vegetables, she’ll buy Jerry’s – and he makes an easy sale.
But the books you publish don’t have to be in the same niche.
Personally, I’ve published books on Amazon about marketing, commercial
window washing and a few other topics – I’ll tell you more about them later.
You might consider using a pen name when you write in different niches, like I
did. It’s a business strategy that authors often use when writing for different
In fact, Steven King also used a pen name (Richard Bachman) in order to keep
his horror book franchise distinct.
The point here is that once you get started, you can expand on the basic passive
income stream business model in any niche you choose, and for any reason you
If you start a new hobby and want to learn about it, you can publish beginner
books about your experience as you go. You’ll help other beginners and create a
new passive income stream.
Of if you want to take an adventure vacation helicopter skiing in the Canadian
Rockies, publish a book about planning the trip and let the Amazon income pay
for it.
The number of ways you can use this business model are only limited by
your imagination.
Expand your market: publish for
Once you have published your paperback books, it’s easy to publish them as
Kindle editions to broaden your potential market.
В©Copyright 2010 Digital LowDown
Publishing on Amazon: How To Create Real Passive Income
Even though Kindle pricing is lower than the physical versions, you still earn 35%
royalties that become part of your passive income stream.
The number of Kindle readers is growing. According to Credit Suisse analysts
(as reported by…
Amazon’s sale of Kindle content was $135 million in 2009 and could
increase to $775 million by 2015 -- an increase of more than 700%!
When you have your book already listed on Amazon, you can easily tap into the
growing Kindle market -- and you won’t have to write another book to do it!
How-To books are hot
“How-To” titles sell more copies overall than fiction and they are easier to write.
So if you don’t think you could write a novel, don’t worry, you don’t need to.
People buy books that help them learn how to do things they don’t already know
how to do – it’s that simple. And they do it across an endless number of niche
Let me tell you about my own experience of publishing a book in a niche that
most people would probably never think of.
Before I became a business consultant, I owned a window cleaning business.
So I know the ins and outs, and tricks of the trade about how to make windows
Owners of shops with glass storefronts and managers of office buildings with lots
of windows already know how important clean, clear glass is for their business
image. Dirty windows leave a bad impression. Clean windows make a good
impression on customers.
That’s why good commercial window cleaners are in demand.
But people who are just starting their window cleaning companies, and owners
who want to tackle the job themselves, don’t know how to solve the problems
that come up the way experienced insiders do.
So I wrote about what I knew, and published “The Glass Restoration Handbook:
The Professional Window Cleaners Guide To Removing Hard Water Stains And
Oxidation Damage From Windows And Glass (Volume 1)”.
And it’s selling on Amazon!
В©Copyright 2010 Digital LowDown
Publishing on Amazon: How To Create Real Passive Income
So don’t worry that you aren’t creative enough to publish a book or that you won’t
be able to come up with a topic.
How-To topic ideas are endless
Although researching your niche for a topic that will sell is an important part of
the process, there are more niches to write about than you can imagine – and the
number is growing every day.
Here’s an example. In the year 2000, no one had even heard of an iPhone.
Today, it’s common equipment for millions of people.
And guess what?
There are dozens of paperback how-to books about iPhones selling on
From teaching people how to turn them on, to teaching people how to program
them or play games on them, these iPhone how-to books are selling everyday.
And making money for their publishers.
So if you think you can’t come up with a book topic, think again. Think of
something simple that you know how to do and could teach to someone else.
Publish a book about it and that’s one of your passive income streams.
How to get started
Let’s take a moment to recap. Here’s a business model you can use to create
as many streams of passive income as you like.
It costs less than $20 to start.
It costs nothing to maintain.
It lasts as long as you want it to.
So how can you get started?
Well, there’s a reason I told you about publishing my window cleaning book on
Amazon -- my experience is real and I’d like to share it with you.
В©Copyright 2010 Digital LowDown
Publishing on Amazon: How To Create Real Passive Income
I started out publishing a couple of paperback books in order to establish myself
as an �expert’ in my consulting business -- “The Six Figure Sales Funnel” and
“The Glass Restoration Handbook”. Honestly, I didn’t really expect any sales.
But sales happened anyway.
At that point, I decided to experiment in order to find out whether the sales were
an accident, or whether I had discovered a real passive income business model.
So I published a few more books in different niches, for a grand total of 7 titles.
By January of 2010, my books were selling and I got a check from Amazon for
In February 2010, my check from Amazon was $781.
And it was all passive income!
After publishing the books in my spare time, all I did was let Amazon promote
them…while I collected the checks!
Those checks were the proof I was looking for that publishing on Amazon is a
real passive income business model.
So now that I’m a published how-to book author, I decided to publish a book to
help other people duplicate my success on Amazon.
Of course, you can spend about 6 months experimenting to put together all of the
pieces to create your own system for publishing your own profitable book.
Or you can save 6 months and check out my book, “Amazon Publishing Formula”,
that tells you step-by-step exactly how to do it for yourself. I’ll help you get
started right away!
Wishing you publishing success,
В©Copyright 2010 Digital LowDown
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