In 2024, I hit a milestone of over $535,000 in income, and I owe it all to six AI-driven income streams that I built over the past two years. Unlike the typical passive income stories you may have seen, my journey wasn’t built overnight—it took focus, strategy, and consistent work. Today, I want to share how I built these income streams step by step and how AI played a central role in driving their success.
The AI-Powered Strategy Behind My Success
Many people think building a successful online business takes 5-7 years of work, but that’s not necessarily true. In my case, I built multiple income streams over just two years. My primary focus was to create something scalable using artificial intelligence, a field that has grown rapidly in the past few years. I also want to dive into the real costs involved in running these streams, as many people ask about the overhead, profits, and expenses. Let’s break down the AI-driven income streams that contributed to my $535K earnings in 2024.
Income Stream #1: My AI-Driven Etsy Shop ($76K in 2024)
My journey started with an Etsy shop where I sell AI-created graphic designs for sublimation crafters. Sublimation design files are used to create various products like t-shirts, tumblers, and more. My niche within this market focuses on high-quality graphic designs for t-shirts and tumbler wraps.
One key advantage of this business model is the recurring customer base. Many of my customers are small business owners who buy my designs, print them on products, and resell them. This creates a cycle of repeat business, as they continually need new designs to offer their customers. Each season brings new design trends, and my customers are always looking for fresh graphics for their products.
In 2024, my Etsy shop brought in over $76,000, with minimal active management. I spent just an hour per week on it, mainly uploading 10-20 new designs each week with the help of a virtual assistant (VA). This was a significant decline from 2023, where the shop generated over $423,000. The reason for the decline? I shifted my focus more towards content creation on YouTube and teaching online, so I reduced the time spent managing my Etsy shop.
While my income from Etsy decreased, it was still a reliable income stream that allowed me to focus on other ventures without losing momentum. However, the visibility I gained on YouTube also contributed to a higher level of competition, which affected my conversion rates. But even with these changes, my Etsy shop continues to generate passive income with very little effort.
How to Start a Digital Product Shop on Etsy
If you want to replicate my success, you don’t need fancy tools to get started. Here’s a quick guide on how to set up a digital product shop on Etsy:
- Editing Software: You’ll need software like Canva, Photoshop, or Inkscape. Prices range from $10 to $20 a month.
- AI Tools: Use AI tools like “My Designs” or “Canva” that come with built-in design features for easier creation.
- Etsy Fees: Setting up an Etsy shop is free, but each listing costs 20 cents. You can use referral links from others (like me) to get your first 40 listings for free.
- Automation Tools: To scale your shop, you might want to invest in automation tools like Vel or My Designs to quickly upload new designs.
While Etsy can be a great passive income stream, keep in mind that creating fresh designs each season means constant work. You can, however, minimize effort by focusing on low-competition, high-demand designs that can continuously generate sales.
Income Stream #2: Bailey Tumblr Designs Membership ($200K in 2024)
Two months after launching my Etsy shop, I created a membership site for my graphic designs. This membership allowed customers to access my designs for a lower monthly fee instead of purchasing individual designs each time. This created a steady stream of recurring revenue, and the membership quickly grew to thousands of active members.
In 2024, my membership site generated over $200,000, and it continues to be a reliable source of income. I was able to market this membership site to my growing email list (over 20,000 subscribers) and my Facebook group, which has over 10,000 members.
The key to a successful membership site is having an engaged audience. Since my Etsy designs were already performing well, it was an easy transition to offer a subscription-based option. The main cost involved in this business model was the platform hosting (Wix, around $75/month), which allowed me to maintain the site and handle payments automatically.
Income Stream #3: YouTube Channel ($116K in 2024)
Starting my YouTube channel in mid-2023 was one of the most rewarding decisions I made in 2024. By 2024, my channel had generated over $116,000 in revenue through AdSense. YouTube has become a powerful tool to promote my other income streams, particularly my Etsy shop and membership site. I use my channel to share my knowledge of AI graphic design, tutorials, and business strategies.
Running a YouTube channel is surprisingly cost-effective. It costs nothing to start a channel, and you can use your phone to record videos. However, editing can become expensive, depending on how much content you produce. I outsource my video editing to a professional, which costs me about $150 per week.
While YouTube is a valuable income stream, it’s not entirely passive. To keep a channel running, you need to consistently create, edit, and upload content. But the long-term benefits, like increased visibility and passive ad revenue, make it worthwhile.
Income Stream #4: Affiliate Income and Brand Sponsorships ($20K–$60K in 2024)
Affiliate marketing has been a significant income source for me, especially as I review and promote AI tools on my YouTube channel. As an affiliate, I earn a commission whenever someone purchases a product using my referral link.
This type of income is relatively passive. Since I’m already creating content around AI tools, I simply integrate affiliate links into my videos or blogs. Over time, these links generate commissions with little ongoing effort. Additionally, many companies sponsor my videos, paying anywhere from $500 to $1,200 per sponsored video.
The best part of affiliate marketing is that it doesn’t require upfront costs. It’s free to sign up for affiliate programs, and all you need is an audience to start earning.
Income Streams #5 & #6: Digital Products and Online Communities ($281K in 2024)
In 2024, I moved from selling individual courses to creating memberships and digital products within my niche. This shift allowed me to build a more engaged community around AI and Etsy strategies. The membership model has been extremely successful, bringing in over $281,000 in 2024.
These digital products and memberships are hosted on platforms like School and Stripe, allowing me to provide value to my community while generating recurring income. The cost of running these memberships is low, around $99/month for the platform. However, the value it offers in terms of community engagement and ongoing content creation is priceless.
To succeed with digital products and memberships, you need to focus on providing continuous value. Whether that’s through weekly content, Q&A sessions, or just being an active member of your community, staying engaged is key.
Final Thoughts: Building AI-Driven Income Streams
Building AI-driven income streams is not a “get rich quick” process. It takes time, effort, and a clear strategy. But with the right mindset and approach, AI can help you scale your business more effectively than ever before.
As you’ve seen from my experience, AI can be leveraged in numerous ways—from designing products on Etsy to creating engaging YouTube content. The beauty of AI is that it allows you to automate repetitive tasks, enhance creativity, and maximize profits.
If you’re considering starting an AI-driven business, remember: you don’t need a huge budget or technical expertise to get started. Focus on the niche you’re passionate about, and start small. As you scale, continue refining your systems and leveraging AI tools to streamline your operations.
Stay tuned for more content on how you can build your own AI-driven income streams, and good luck on your entrepreneurial journey!