Passive Income Streams – For Entrepreneurs
If you’re running your own business, you know being an entrepreneur can be a case of feast or famine. It seems you’re either inundated with clients struggling to finish all your work on time or there’s crickets.
Any entrepreneur worth their salt, knows the key to keeping your head above water during the lean times is passive income streams.
What are passive income streams?
But what are passive income streams, how do you set them up and how can they make you money?
Passive income streams are exactly what they sound like.
An income stream that once set up will earn you money without taking your active time and energy.
A passive income stream system is especially important if you’re not making consistent income month to month or year to year as it provides a buffer income that can help to balance your books in the lean times.
Let’s look at some passive income streams you can set up to start bringing in the cash.
The thing about being a service provider is that your services take time, research and energy to complete. So even if you have loads of clients lining up to work with you, you can only take on some, which means you’re losing out on potential income.
But, digital products could be the answer.
If you’ve created instructions or how to guides in the past for you clients, you can repackage these as downloadable digital products for sale on your site.
You can even design and create an e-course or e-book on your area of expertise and sell this through your site.
Once it’s all set up you’ve got a passive income stream that also acts as a sales funnel on your site, collecting emails for your mailing list and warming up potential client that could help you to scale your business.
Create an online channel
If you’re an entrepreneur, it’s a good idea to position yourself as leader in your industry.
Offering free online content is a great way to grow your reputation in your field and drive traffic to your page. A YouTube channel, or podcast can bring in a new sales funnel for your services or products. As a passive income stream, this content once created can continue to generate income through advertisements and sponsorships.
Get paid for referrals
There is always going to be something that a client needs that you don’t do and that’s not a bad thing.
The business world runs on referrals but have you stopped to consider that this in and of itself is a service?
If a client comes to you for one service but requires another and you take the time to consider a suitable candidate, research them do the leg work. And then put the candidate and the client in touch, you’ve provided a valuable service to the client and a lead to the candidate.
Build a community with those adjacent to or in your industry and set a system up for referrals. Ten percent of the overall project cost is fair and if you’re referring to each other you’ll pick up extra clients as a result.
Become an affiliate
If there are products, software or platforms you regularly purchase for client projects or suggest to clients you could be making money each time they purchase these.
Sign up to be an affiliate for the products and services you recommend and then when you send these recommendations to the client you can send your affiliate link and get a kick back for their purchase.
You can also add a page to your website that includes products or software you use and like with all your affiliate links and it can slowly tick over in the background, bringing extra cash.
Create a membership model
Building a community for your clients adds value to your services.
Other clients can ask questions and chat about what they’ve gained from your services and how it has helped them.
The key is to set this up from the beginning as a membership model. Meaning they sign up to pay a certain amount every month and in return they receive access to content others don’t, as a well as a community group where questions can be answered.
Make it worth it for your members by offering one smaller service per month as a part of the membership package. This smaller service could be a 30-minute coaching session, or a live Q and A in the community group. Then you’ll have dependable income and a collection of clients who will think of you as their first port of call for future projects.
Get into the Stock Market
Anytime you have a windfall, that windfall should be earning you money.
Make your money work for you by investing in stocks. The stock market can feel intimidating if you haven’t invested before but there are plenty of conservative investments that will still deliver dividends.
Consult a professional if you’re hesitant and get your money working for you.
Create an Application or Software
If you have a service that you’re providing that could be automated and you have an idea how this could work, contact a developer and work together to produce the software.
Once you have created the software or application you can then sell it as a subscription and it will generate passive income. Doing a SAAS (software as a service) or an application will help establish your authority as a thought leader in your industry and you can recommend it as a part of packages for your clients.
Get into the property market
Last but definitely not least is to invest in property. If you’re in a position to take on an investment property it is one of the easiest and safest passive income streams you can set up.
While there is a bit of work in researching and picking the property you want to buy as well as organising financing, once you have it sorted and rented out, you’re getting extra income every month.
And when you’re ready to move on, you can sell it for quick influx of cash which can be put into the next venture.
Building your passive income streams gives you piece of mind and gets your money working for you. What passive income stream suits you?
Once you’ve done all these things, you should probably then relax. So find a hobby that can help you do just that.