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Had an idea for somewhat passive income...

Discussion in 'BlackHat Lounge' started by SpellZ, Oct 22, 2010.

  1. SpellZ

    SpellZ Regular Member

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    First of all, my personality... I'm super lazy, but smart. I take my sweet ass time, never rush, just think it through, day dream about it for weeks and then once day it clicks and I do it.

    So with that being said...

    I was thinking of passive income lately...
    Pretty much income that comes to you on MONTHLY BASIS.
    A subscription is what it is..

    But when we think "subscription" we think ONLINE.
    I was thinking OFLINE SUBSCRIPTION..

    Things that can be paid monthly, but offline...

    If you guys had any ideas in your head, or want to add your 2 cents, or just got an idea in mind, please go ahead and share it... Some ideas that ran my mind is...

    Flower Subscription
    You get a Vendor's Badge (Vendor's Permit) and get flowers at wholesale price (retail red rose is $3, wholesale rose is $0.50 - $1.10). Tell people to pay $50/month, and each month you'll send them a bouquet that in retail will be worth $50-60, but in wholesale it'll be worth around $30.

    Florist + Flowers + Delivery
    500 people x ($50-$30-$10) = $5000

    $30 will cost for flower, $10 will cost for florist + delivery, $10 will go to you. So each month $5000 will go to you. Or something like that.


    T-shirt Subscription
    Create shirts that WordBoner makes and limit your subscription to 100 subscribers. 100 shirts + heatpress printing = $800 ($8/shirt), if you sell shirts at $25/shirt that equals to $2500 - $800 for printing = $1700 a month, month to month basis. A spinoff of that would be to create a 'competitor site' that you also run, but create a different shirt and make it also to 100 people. Now instead of $1700 a month, you're making $3400
     
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  2. penguin

    penguin Junior Member

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    Hi Spellz, Can you please brief more about that flower subscription ?
    I mean is that a kind of dropshipping ? where can we get a vendors permit, where to do we need to start this process ?
    Thanks for your lazy but solid ideas :)
     
  3. skagenweb

    skagenweb BANNED BANNED

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    Great ideas, but good luck getting 800 flower subscribers.
     
  4. SpellZ

    SpellZ Regular Member

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    I'm in the event hosting industry so yeah, I'm sorry I should of explained it a bit more in detail. A vendor's permit is a permit that allows you to buy goods (and services, depends on where you live) with out paying taxes and buying it at wholesale prices and you MUST sell them (even though 100% of vendors, keep some of the stuff they buy).

    To get a vendors permit (or called vendors badge in usa) just google "vendors permit YourStateOrProvince" and it'll tell you in detail. But there is ALWAYS a catch... for instance, when you have a vendors permit you need to spend a minimum amount of $$$ a month in certain stores, or your badge will get rejected.

    My favorite wholesale flower store requires a $2500 buy when you first apply, and then each month a minimum of $500 needs to be spent.

    So you get the people (I tell you how I get mine a bit later), sign them up for $50, lets say you sign up 100 people. That's a total of $5000.

    $3000 for flowers
    $500 for florist + labor
    $500 driver
    $1000 for you


    So you take your florist, go to the wholesale flower store and tell him/her to design a flower arrangment (with our without a vase) for $30, and trust me... $30 is A LOT! Flowers in store sell for 3x price! So if he makes $30 flower arrangment, in retail price, that arrangment will cost around $70-$90. So he makes one, you like it, you guys buy flowers for 100 people. You get either family members or some friends to help the florist, because you'll need to do the same thing 100 people. Then get those flowers to the driver and he/she will deliver them.

    HOW TO SAVE MONEY DRAMATICALLY:
    There is THOUSANDS of Floral videos online.
    See which one you like, copy it, DONE! You just saved $250 right there (because I think you'll still need to spend $500 for extra labor to do it 100 times).

    Then you can deliver the flowers and save another $500.

    If you can do the 100 flowers by yourself, then you'll safe that $500 as well.
     
  5. SpellZ

    SpellZ Regular Member

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    Not 800, but 500.
    But you could of also said, "Nevermind 500! goodluck getting 100!"

    And you are right! 500 is insane! 100 is a lot! 50 is waaay to many already!

    But again, it all depends how you can SEO your website, HOW you can get your family friends, friends and co-workers, etc.

    All you need is the first 100, then the word will get around.
    Trust me.... no matter how horrible you think you are with flowers (like me lol, I cant design at all!!!) you can't go wrong with a $30 wholesale flower bouqet! Its $70-$90 on retail! Go look at $90 flowers in online shops, print the picture, go to the whole sale store and tell them "can you find me those flowers", I gurantee you that when they'll get all the flowers, it'll be around $30.


    Its A LOT OF FUN!

    + Lets look again at the idea of scarcity.
    Lets say you say "I have only 500 spots available"

    Once the 500 people fill up (which might be a bit faster, then without putting it) you'll be banking around $5,000/month (if out of those $50/month, you'll get $10). then your life is set!

    You have your 500 people.
    for 25 days you relax.
    26th day you see what kind of flower bouqet you want to make
    27th day you go to the store to pick the flowers
    28th day you pick them up
    28th day at 6PM till 6AM you make them
    29th day you start delivering
    30th day, you star relaxing again for 25 days with $5,000
     
    Last edited: Oct 22, 2010
  6. mahun3

    mahun3 Newbie

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    heres my two cents

    u could practically use that idea with any service for example u start a website for a football team.
    you then go into different forums and websites etc for that team and advertise your website.

    then offer a membership of some sort and promise them benifits like email upates on all the news of their team. trades, statistics, starters etc... also u could offer them authentic jerseys (which u would get from bhw for cheap & it would be a replica) for signing up .

    u could also play all the games of that paticular team live on your website. A lot of people dont know they can watch sports for free on the internet.also the website might as well sell other things related to the sport. helmets, pads, cleets, etc depending on whatever your sport is

    then all u have to do is make sure your subscription rate makes u a profit. also it doesnt have to be sports it could be something with anime also the is just impo think would work.
     
    Last edited: Oct 22, 2010
  7. SpellZ

    SpellZ Regular Member

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    but yeah guys, any other input on this?
     
  8. penguin

    penguin Junior Member

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    spellz -whats your opinion on mahun3's view ?
    can your idea is feasible for many other services? because this flower seems a bit confusing and also needs to have off-line labour works
     
  9. SpellZ

    SpellZ Regular Member

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    Yeah, you might be right...
    It gets a bit confusing for someone who never dealt with flowers before or anything...

    Here, I'll break it down again and then go to the second part:
    1. Get 100 people who are willing to sign up
    2. Get a vendors badge/permit
    3. Find a florist (newspaper, college/university student, or yourself)
    4. When the 100th person says "yes", then you call the other 99 people and say, "Okay, we got 100 people, lets do this, go to this site and sign up"
    5. 100 people sign up
    6. Now you have $5000 in your account
    7. Take the florist to a flower warehouse and let him design a design for $30 at retail price
    8. If you like it, buy it for 100 people
    9. As the florist will start making the flowers, help him with the labour part of it (cutting all those flowers, putting water in the base, folding the leaves, etc. that takes the longest of them all!)
    10. Flowers are done
    11. Get a van and deliver the flowers, which means that all those 100 people are located a driving distance from you
    12. Day is done, you're left with $1000

    Then 200 people, then 300 people, 400 and 500.
    Then lets say you deliver flowers on the 1st of every month.
    You decide you want to expand, then start a second signup sheet for another 500 people, but this time deliver on the 15th.


    -----------------------------------

    Second part of this answer is yea, the beauty of this model is that it can apply to anything (from what I think at least).

    From the top of my head

    - You can do it for people who smoke hookahs, they signup for $25/month, and you deliver them new shisha flavor every month (can be a dropshipper). To buy one flavor will probobly cost you $25, but if you go over 100, 100% they'll drop it down to between $8 - $12, so you'll be making around $12 profit... Which is actually $2 more then flowers, plus with A LOT less labor. But the downside of it is that you have to find people who smoke shisha, and there is like 100 flavors on the market, by if you do it for 100 flavors, one flavor a month... you'll be fine for a REALLY long time. A spinoff of that could be upselling with pipes, hoses, etc.
     
  10. gluco3

    gluco3 Registered Member

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    Maybe I don't understand but why do people want a monthly order of roses?

    Have you thought about Real Estate? Renting is a fantastic form of passive income plus you own the land/house which makes it an investment that is likely to increase over time. Income from rent can be anywhere from $350-$1000+ per month (and that is profit unless you use the banks money to purchase your property in which case, Bank Fronts Money - Tenants Pay Bank - You invest 0 and earn a property). Now is the prime time to buy real estate since the market is down.
     
  11. SpellZ

    SpellZ Regular Member

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    Hey gluco3,

    It is not just roses, its a lot of other flowers.
    Plus, YOU might not be the target market.
    Plus, a lot of people love fresh flowers at home, especially if they are nicely done. Subconsiously it most of the time represents celebration and happiness
     
  12. math182

    math182 Regular Member

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    Go for it mate, get a good business model, scale it up and live the good life:)