Unlocking Noah Kagan's Secrets to Earning Over $350,000 Monthly
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Chapter 1: Overview of Noah Kagan's Income Streams
Noah Kagan, a 40-year-old entrepreneur, is the mastermind behind sumo.com, a leading email capture tool. He also runs a YouTube channel where he shares insights on entrepreneurship and money-making strategies aimed at aspiring entrepreneurs. Recently, Noah detailed his "passive" income sources, which collectively yield over $350,000 each month. However, it's essential to understand that many of these income streams are not genuinely passive. Instead, they are the result of years of hard work that now allow him to enjoy the fruits of his labor. Without his earlier efforts, this level of income would not have been possible.
In this article, we'll explore the nuances of Noah's so-called passive income and what it genuinely takes to earn money while you sleep—hint: it involves working while you're awake.
Section 1.1: Digital Products
Noah earns approximately $2,227 monthly from two digital products he developed over eight years ago. The first is a book he authored after his departure from Facebook, generating $227 in Amazon royalties each month. The second product is a business course created with his team, which continues to bring in around $2,000 monthly. While this income stream has become fully passive (customers visit his website, purchase, and engage with the content), it required significant upfront investment in both time and resources to create.
Section 1.2: YouTube Revenue
Noah's YouTube channel, boasting 368K subscribers, generates about $3,700 from older videos. However, this success comes after an initial investment of $400,000 in content production that year, resulting in a negative return at the moment. As his audience expands and his videos begin to generate more revenue, the initial investment will likely pay off. Yet, for now, labeling income from these videos as "passive" may be misleading.
Chapter 2: The True Value of Blogging and Email Lists
Noah makes a modest $65 from his email list, which pales in comparison to other income sources. However, he emphasizes its value: it has connected him with remarkable individuals, like Tim Ferriss, who has become a close friend. As a fellow blogger and entrepreneur, I can personally attest to the importance of building an email list; it fosters connections and creates opportunities that far exceed mere monetary gains.
The first video titled "THIS is Why Elon Musk & Warren Buffett Don't Pay TAXES! | Grant Cardone Interview" explores the tax strategies used by successful entrepreneurs, shedding light on the financial decisions that contribute to their wealth.
Section 2.1: Business Operations
The majority of Noah's income, approximately $310,000, comes from his business ventures, which is not entirely passive for two main reasons:
- Operating a business demands substantial effort, despite the rewards.
- This figure reflects business income rather than personal income, excluding various expenses (e.g., salaries, office space).
His business income can be divided into three primary categories:
- Lifetime Deals on AppSumo: Founded in 2010, AppSumo is a daily deals platform for digital goods. One example is SendFox, which generates over $27,500 monthly.
- Sumo.com: This email capture tool earned more than $1.62 million from April 2021 to March 2022. However, Noah's gross volume decreased by 25% compared to the previous year, raising concerns about future revenue.
- Founder Salary: Noah also earns around $80,000 monthly from Sumo.com, a compensation that reflects his role as the company's founder.
The second video titled "Buy Profitable 7 Eleven Franchise In Australia | Minimum Gross Profit $350,000-$400,000 | URDU HINDI" discusses franchise opportunities, highlighting potential earnings and the investment required to succeed in business.
Section 2.2: Investment Strategies
Noah also invests in various assets, totaling $7,523 from cryptocurrency and $323 from Uniswap liquidity pools. These income streams are indeed passive, but the capital for these investments stems from years of hard work.
His strategies include:
- Staking Crypto: Noah holds 100 ETH, earning around $10,000 passively, although the value is subject to market fluctuations.
- Index Funds: Since 2004, he has consistently invested a portion of his income into index funds, which he notes can yield modest returns.
Finally, he invests in real estate through syndicates, renting office space, and managing Airbnb properties, collectively generating $22,500.
Conclusion: The Importance of Hard Work Before Investment
The key takeaway from Noah's journey is the emphasis on working hard before seeking passive income. While many promote "easy" passive earnings, Noah's success illustrates the necessity of dedicating time and effort to build a solid foundation first.
Invest wisely and only with funds you can afford to lose, especially in high-risk areas like cryptocurrency and real estate. Focus on building your income before enjoying the benefits.
Thank you for reading! I recently interviewed 50 productivity and business experts, compiling a comprehensive guide filled with actionable advice from those who excel in their fields.