What is Passive Income?
Passive income is generally defined as the ability to earn money ‘in you sleep’ without your direct input on a consistent basis. In other words, passive income allows you to step away from the time for money business model.
For the sake of clarity, examples of passive income would be info-products, ebooks, online courses, physical products with an online store, and other things that do not require your direct input once the product is launched. Before you get too excited there are a few things you need to understand about passive income.
The ironic thing about passive income is it isn’t exactly passive because it requires a lot of behind the scenes setting up and if you create a product that isn’t evergreen such as how to use Facebook Ads in business, you will need to update it as the industry changes. Passive income streams will also require you to market them consistently. You can automate your marketing funnel but you will still need to put your course, book, or products in front of your ideal clients, so in a way passive income isn’t really passive after all. No matter what road you take in life nothing comes easy or without the need of effort or work.
A Great Place to Start
If the previous paragraph hasn’t turned you off passive income and adding multiple streams of income you’re probably wondering where you should start with multiple streams of income. It’s been my experience that one to one coaching and services is still a great way to start out with multiple streams of income. These one to one services allow you to understand what your clients really want on a much deeper level and reassure you that your signature system or method works and people will pay to work with you. Despite all of these benefits, one to one service isn’t really scalable because you’re trading time for money.
Your First Passive Income Product
Once you have a one to one service or coaching programme that your ideal clients are buying and getting results from, it’s time to start creating products for those people who want to work with you but cannot afford the price tag that comes with one to one services. The reason why I say to start here is because, if you want to create income long-term you need to keep your existing clients and fans of your business around. A client who may not afford your services today may be in a better position a few months down the road, and you need to keep at the forefront of their mind. So, if a client buys your online course and gets a great result they will automatically be looking for another way to work with you because they trust you and will be ready to commit to making a bigger investment and this is the beauty of having more than one stream of income.
When you create your first passive income product you need to create a product around providing a solution to your ideal client’s pains or problems. This solution doesn’t have to be grand like building your dream business, it could be a simple as finding your first clients, getting clarity on your business idea, or setting up your first marketing funnel. The key is to create products that compliment your one to one services or coaching programme, or signature process.
Take a look at your business model and the services you currently have and ask yourself what passive income products can I create that compliment the work that I am currently doing or want to do that will help me to keep my existing or future ideal clients and help them to achieve what they really desire.
As always, I have to ask; What are your thoughts on passive income? Will you be including multiple streams of income in your business in the near future? If so, share your thoughts on passive income and the products you are considering incorporating into your business or feel free to ask any questions in the comments section below. I want to hear your story. Let me know by leaving a comment below.
You owe it to yourself to stop dreaming and start creating a profitable online business.
Remember, how you spend your time in this world matters. So don’t waste your time in a job that you do not love, start working on your dream today.
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