Why You Need to Build Passive Income
If anything, 2020 taught us the need to diversify. If something happens to your main source of income, you need a backup! Not only that, if you are only trading one-for-one your time for money, there’s only so much you can make because you are limited by the amount of time that you have. Scaling your business is so important!
Remember, nothing is truly passive
When people think of passive income, they think of making money without any work. The truth is, there is nothing that is truly passive! Every form of “passive” income, takes time to set up. Most forms of passive income also take maintenance, and some of them take more time to maintain than others. What we want is scalable income.
The best place to start is by offering low-ticket offers or products. You can sell a guide to something you know how to do like an outfit guide, equipment guide, workflow, checklist, or a system that you use in your business. You can also sell templates like timeline teimplates or copywriting templates where people fill in the blank. The benefit to these things is that you only have to make them once and then sell them/reproduce them!
You can also start educating others. Mentoring is a great place to start. You can scale part of it by creating the materials and curriculum. Then you can just sell the time you meet with your mentee but direct them to the curriculum for most of the work.
Group coaching is another option, and you can scale that even more by giving multiple people the curriculum and then hopping on a group call with them. In the long run, you can make more money this way than with one-on-one mentoring.
Next, and this is a big one, is courses. This is often the first thing people think of when they think of passive income. But guys, creating a course is A LOT of work. You have to research, plan, prepare, record, build funnels, market, and sell the course. It can definitely bring in a lot of money, but it does take A LOT of time to create. Not only that, you’ll have to spend a good amount of time maintaining the course after it’s out.
Another way to create scalable income is to plan events! You can do educational workshops, or you can do something like my amazing friend Nichole does! She plans styled shoots & invites other photographers to pay a fee to shoot at them. It works out perfectly for her because she is doing something she truly enjoys (styling) and providing a valuable product to photographers (portfolio building, experience, community building).
Lastly, you can look into affiliate marketing. Lost of people think affiliate marketing is not great, but actually if you are marketing a product that you actually love and enjoy I think it is a GREAT way to build passive income! For example, I use Hello Fresh A LOT! So I have no problem sharing about it with someone I know. And when I share my referral link, they get $20 off, but so do I! It works out great. You can also look into Amazon affiliate marketing. I’ve never tried it, but I know a lot of people have had success with it. With Amazon, if you share a link and someone clicks it, you actually make a small comission off of anything they purchase from Amazon for the whole day!
Bottom Line to Passive Income
The bottom line is that you want to think about what type of passive income stream you want to get into. Think about your passions and how much time you have to invest in it. Some of the options take more time to set up or maintain than others. If it’s something you truly enjoy doing, it can be really successful!
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