In this episode I’m going to be sharing how you can create regular passive income as a self-employed person, so that you can still make money when you’re on vacation, while you’re sleeping, while you play with your kids or while doing anything you want!
One of the biggest fears people have around becoming self employed is that if they get ill or go on holiday, their income is going to dry up.
But it doesn’t have to be that way when you can set up your business to generate passive income.
What is passive income?
Passive income means that you are generating money that’s not a direct exchange of your time.
It’s important to think about this concept of money in exchange for time when you start a business. If you were a Fitness Instructor for example, and you made money through hourly training sessions with clients, there’s only so many hours in the day where you can actually do a personal training session with somebody.
That means there’s a limit on how much you can make and if you go on holiday, then your income will stop because you’re unable to do those hourly training sessions.
Passive income ideas
If you have a similar business model to this, then you could look at creating client retainers. So let’s say somebody wants to have 4 sessions with you a week, in that case you would get them to pay for a month’s worth of sessions upfront and all at once. Like this you can be flexible in terms of when those sessions happen but still secure that income.
That’s one idea of getting around it, but it still doesn’t get around the fact that there are only so many hours in the day.
You need to start thinking about ways to take your knowledge, your ideas, your expertise, your passion, and turn it into a passive income.
In this case you would take your knowledge, your ideas and your skills and turn them into a digital product, a course or even a membership site.
So back to the fitness idea – you could take the knowledge you have around fitness and training, and turn it into an online programme where you are not limited by the number of hours you have in the day.
You can serve hundreds, even thousands of people through your online programmes, where you teach them how to work out. You could either do it as a live training, an online course, an app, or you could have a programme where people pay you on a month-by-month basis to get your fitness workouts and your top fitness tips.
So that is an example of switching from somebody coming to physically see you and you exchanging an hour of your time to get paid, into being able to help lots more people all at once.
You can create exponential growth when you have a course, a membership or an app where people are paying you on a monthly basis to tap into your knowledge and your expertise, therefore making your business less risky.
These ideas generate passive income, because once you’ve set them up and people start buying from you, then people can be buying from you when you’re asleep!
So when you’re starting your business, or when you’re building a business, you want to be looking at ways to create different revenue streams of passive income that you set up once and then they keep generating revenue for you.
Being an entrepreneur is about serving people, but it’s also about being able to get intentional about the life you want to live, the business you want to build.
Get really clear on the kind of business that you want to build because then from that place, you can look at the different business models that would suit you.
Just remember that whatever your skill set, your knowledge, your ideas or your expertise, there is always a way to generate passive income.
And if you want more help with this we have tonnes of resources for you on this topic! Head on over to fea.link/passiveincome, and I will share all the resources that we have available for you so that you can get going with some of these ideas!
Just know that you can do it, you can generate passive income and it will transform your business and your life!
I hope you’ve enjoyed this video and if you’ve got any questions you would like to ask me then come over to Instagram @femaleentrepreneurassociation or leave a comment below!