What is passive income?
The definition according to my favorite blog, Smart Passive Income is:
Building online businesses that take advantage of systems of automation that allow transactions, cash flow, and growth to happen without requiring a real-time presence. In other words, we don’t trade time for money. Instead, we Internet entrepreneurs invest our time upfront creating valuable products and experiences. We work hard now to continually reap the benefits later.
While having a service based business is viable business model, having additional steams of income, bridge the gap when:
- Business is slow
- You want to take an extended vacation
- You want to work smarter and not harder
For the last couple of years, I have been slowly growing my creative design business HNIK Creative. When I first started, I traded my time [designing websites + brand identities] for money. At first it was exciting and lucrative, until last year I got overworked, sick and landed in the emergency room.
I realized that at that point I had to work smarter not harder. Since I provide a service, in exchange for payment, how would I be able to make $, while not having to constantly trade my services for money?
Here are some ideas you as a solopreneur or service based professional, can make additional and passive income, in your field of work.
Workshops aren’t exactly considered passive income since you have to be present to conduct them, but they are a great way to generate additional income. Two years ago, I did a live workshop called Define + Design Your Brand, where I taught business owners and bloggers, how build a cohesive visual brand online. It was a 3 hour workshop, that included done-for-you files and the ability to ask me questions one-on-one. Workshops are a great way to not only generate additional income, but it’s a great way to network and offer a low price point to those clients, who aren’t quite ready for your more expensive options.
2. Digital Products
Digital Products are the epitome of passive income. Digital products only need to be created once, then can be downloaded over and over again. Think about something that your audience asks you for over and over again, and think how you can turn that into a digital product. I created a bunch of bonuses from my Define + Design Your Brand Workshop, that I can now sell individually for those who didn’t necessarily need the course, but wanted the bonuses. Market your digital products and you can make money while you’re sleeping. I created a popular Spreadshirt Course, that taught users how to Start a Free T-shirt business and style it out using WordPress. I make $1500 in a day, off of a $19 product.
3. Live Webinars
People love to learn in the comfort of their own homes. Remember that Define + Design Your Brand Workshop? Well I also did a paid webinar version of that workshop for those that weren’t able to make the workshop. I was able not only get live viewers, but I was also able to package it and sell the replay. The great thing about webinars, is you can make money in two parts. During the webinar and off of the replay.
These are just 3 ways you can create additional + passive steams of income if you have a service based business. There are tons of other ways to make passive income.
Do you have any passive income products or additional streams of income for your business? What other passive income ideas have you tried? Let me know in the comments below!