Ever since my first year as an entrepreneur, I’ve been fascinated by the idea of using passive income to create more time freedom in my life and business.
I remember sitting in front of my computer for 8+ hours each day, rushing from one deadline to the next, doing something I had always thought I enjoyed (writing and editing web content for high-end corporate clients).
But if I was completely honest with myself, I wasn’t feeling nearly as free, joyful and fulfilled as I thought I would when I first started my business.
While I loved working from home, getting to make my own schedule, and no longer having to commute to a distant city 3 hours each day, I still wasn’t traveling for fun as much I wanted to, I was constantly putting my own creative ideas on hold, and ever so often, I found myself taking on clients who weren’t a 100% yes—because I thought I needed the money and couldn’t afford to say no.
About a year into my business, I knew something needed to change. I began to explore passive income as an alternative way of making a living. It seemed like the perfect solution that would allow me to travel more and free up time for my creative passions, too.
I celebrated some first successes after adding some ads and affiliate links to my website. I already had a heavily search engine optimized blog that was getting a fair amount of traffic, so that part was easy.
But somehow, things still felt sticky. And I still woke up with that same dreadful knot in my stomach each morning.
It wasn’t until I ventured into unknown territory in a bigger way that things finally started moving in the right direction. On a sunny afternoon, I was sitting on my balcony, brainstorming ideas for an e-book I wanted to write, and boom: I realized that what I really wanted was to start a blog about spirituality and angels.
Which was the beginning of my career as a spiritual teacher.
While I did eventually go back to offering services because I enjoyed supporting my clients through 1-on-1 life coaching and healing sessions, I’ve also continued to pursue my love of passive income since then.
I’ve monetized spiritually themed blogs with affiliate marketing, earned money on YouTube, sold online courses, guided meditations, my own oracle card decks, and more.
And to this day, I do the happy dance each time I receive a payout from CD Baby, Teachable, Google & co. There’s definitely something special about making money in your sleep while also knowing that your work is making a real difference in other people’s lives.
In fact, I love it so much that I’ve decided to place much of my focus on increasing my passive income this year, while also helping my clients create more ease, time freedom and fulfillment in their business. :)
If you’ve been craving more passive income in your business, and if you’re wondering whether you have what it takes in order to succeed with this endeavour, here are a few things to consider before getting started.
Are You Ready for Passive Income in Your Business? 3 Things You Need Before You Get Started
1. Have a Clearly Defined Business Idea + Niche
Even though passive income is sometimes promoted as a get rich quick solution, it really isn’t! Passive income is a long-term investment in your freedom that takes your willingness to commit and put in the work over an extended period of time.
While it doesn’t need to feel like an endless hustle that totally burns you out (after all it’s your business and you can make it as fun and easy flowing as you want), you do want to make sure you have a solid foundation you can build on.
If you already have a service based business that you love and that is generating steady income for you: Great! You can use that as your foundation and add passive income products to your existing sources of revenue.
If you’re just getting started: Begin by choosing a clearly defined niche that you’re passionate about and that you can commit to serving over a longer period of time. (Need help with this? Ask me about my 3 Hour Life Purpose Clarity Intensive.) :)
2. Create a Content Plan for Massive, Consistent Traffic
Next, you’ll want to be super strategic with the way you’re creating content to promote your business.
If you’re mostly selling high-end services and packages, it can be pretty easy to maintain a consistent inflow of leads and sales through social media posts and networking alone.
To generate steady passive income, you need more automated traffic sources so you can reach a larger audience without having to do all the work manually over and over again.
You can do this through paid advertising, search engine optimized content, or both—but if you’re a creative soul like me and you love sharing lots of amazing content with the world, I highly recommend including at least one organic traffic source in your marketing strategy.
Great places to publish your own SEO optimized content include your own blog, YouTube, podcasts, and to a certain degree, online shopping platforms such as Amazon, iTunes, Spotify, Creative Market, and so on. As an additional source of organic traffic, you can utilize guest posts and PR opportunities on external platforms. (Start with one, then expand from there.)
Whichever you choose: Make sure you have a solid content plan that you can follow consistently right from the start. It’s much easier to do things properly from the get-go than having to fix a broken strategy later.
3. Pick Your Passive Income Sources + Monetization Strategy
Finally, you need to know what types of products you’ll use as your passive income source(s).
There are many different ways to create passive income, including your own products, affiliate links, advertising, and referrals.
If you already have a working service based business, you may want to create an online course or membership site to share your knowledge with a larger audience.
Perhaps you have already created some products such as a series of guided meditations or an awesome freebie that you could repackage and turn into a paid product.
If you love blogging, you can recommend your favourite products and get paid each time someone makes a purchase through your link.
As a YouTuber, you can monetize your videos with Google AdSense.
And so on. The possibilities are endless!
>> Want more ideas to set up your first (or next) passive income stream in the next 24 hours using what you already have? Download my FREE passive income inspiration sheet here!
YouTube Earnings Calculator (A useful tool that will help you find out how much you can expect to earn per 1000 video views.)
Affiliate Income Calculator (Calculate your potential monthly affiliate income based on your expected number of page views and sales.)
Any questions or anything you’d like to add? Share away in the comments! :)