KeithProfit Center (USA) or Profit Centre (UK): A profit center is a part of a business which is expected to make an identifiable contribution to the organization’s profits.
In this case, that organizaton is YOU.
Let’s take the average working person. They tend to have one profit center (their job). If that job becomes untenable or the boss goes crazy and fires them, they get another job. In reality, they have swapped one profit center for another.
This is all OK until a person gets ill or maybe breaks a leg (heaven forbid), or something happens that forces you to give up work for a while. In the UK, we have SSP Statutory Sick Pay. This is paid at around a £100 a week for up to 28 weeks and is available after 4 days of sickness.
Imagine if you are in a £500 a week job and for the next few months you are getting just £100 a week. How long could you carry on at that rate?. Many people leave themselves exposed to hoping nothing goes wrong. “Fingers crossed” is not a good strategy.
Another downside of having a job as your sole source of income is trying to keep up with inflation when your pay doesn’t do the same. In real terms many people are actually “worse off” than they were ten years ago as pay in many sectors hasn’t kept pace with inflation.
Enter The Profit Center
A profit center should be something that doesn’t rely on you always being there at the helm. In other words, even if one profit center only makes you a measly $5 a month, it should be $5 that doesn’t require you to be there making it. Of course, once you have mastered how to make $5 a month automatically, you can increase this to several profit centers, all making $5 a month or more.
Let me tell you about a friend of mine who lives out in Bali. For the last 3 years he has been selling coloring books and puzzle books to Amazon. Each book costs less than $10 to make He now has over 900 books. Most of these books make absolutely nothing at all and his profit margins are only around $2 per sale, however this hasn’t stopped him from making a cool $5000 to $10,000 a month. He spends his time travelling around and creating more books to increase his monthly profits.
Book sales are like music sales, you earn royalties. Some of those royalties can go on for years. It’s a numbers game, most books won’t sell well but some will. You earn monthly from the ones that succeed.
This is just one example of a profit centre.
One source of income is like playing Russian Roulette, it might all work out, but there again it might not. Remember Covid?, a lot of people didn’t see that one coming. What about the war in Ukraine?
Profit centers are simple sources of income that don’t require much or any maintenance. In other words, once you set them up, they should work passively.
Print On Demand
Many people sell printed mugs and T shirts on Etsy, eBay & Amazon. By using these three platforms, you have ready traffic and by using the POD, Print On Demand method, your mugs and T-Shirts are printed, packed and Shipped by a third party.
You need to create the designs and list the products. Each designed mug can be a profit center in itself, if one mug just generated $5 a moth profit, a 100 could generate $500. Of course, I am playing this down as it is common knowledge that some people are generating multiple thousands per month per mug. Although, this is not the average earnings.
Fiverr/Upwork Arbitrage
This does require a bit more work and is not truly passive, however it is fairly easy. You simply list a service such as creating book covers on Upwork. You charge a nominal price, say $45 to $50 and you get the product designed and made on Fiverr for around $10 – $15. More on this here.
This is called “Gig Broking” and is relatively easy to set up. It costs very little to start and with a little work and a little time can produce some very nice profits.
The point here is to use your imagination. When you’ve figured out how to make $5 a month, step it up and create multiple profit centers. Don’t forget to run these alongside your job so that when and if you might have to take time off from work, your income doesn’t stop.
The more profit centers you have the better. Cover yourself against inflation and sickness by having as many profit centers as possible. They won’t all keep going month after month, year after year, but some will. Keep creating and keep those profit centers coming in. I hope you got value from this post. If you did, don’t forget to leave a comment below. What are you doing to make passive income each month?, let me know below.
Have a great day.
Keith
PS. If you want more ideas on how to make money online, click this link, or the image below
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