Do you have a plan for generating income for your business in future months or years? Are you trading time for money in the work you do for clients?
One of the topics I talk about a lot with business owners who want to design their ultimate lifestyle is the importance of having passive income streams. If your business model is reliant on you working each day in return for payment, you are drastically limiting your income potential as at some stage you will hit a ceiling in available time.
Most of us start off in business this way but if you have a dream of achieving financial freedom, you will need to begin reducing the number of hours you work whilst at the same time increasing your income too.
What is passive income?
This is income generated 24 hours a day. When you are asleep or taking a holiday with your loved ones, your passive income streams continue to bring income into your business… sales you make repeatedly that require little effort on your part.
How can I generate passive income in my business?
Think about the knowledge sharing you do in your business now that you repeat over and over. Are you spending lots of time delivering training to clients that you could record into a CD, DVD or an online training program?
Are you writing the same reports over and over that could be written once and sold as an eBook? Are you running webinars that can be recorded and bundled in to a paid for video series?
Well, your customers all learn from you in different ways; some prefer to read copy, others are more visual or auditory and learn from hearing or watching the lessons you have to share.
So consider this;
Let’s say you have several webinars that you’ve converted into a video series. Your first product is a video… (Or DVD if you wanted a physical rather than online product)
If you had the videos transcribed, in addition to the video you’d have an eBook
You could strip the audio from the video to create a MP3 or CD series too
So, from several webinars that you have delivered and recorded, you now have the potential to create five products that you can sell or bundle as added value! Can you see the difference that could make to your lifestyle?
The key to passive income
If you are working towards your ultimate lifestyle, begin to consider the potential for products from everything you do. Ask yourself if this work is something you could make any future use of and take the steps to make sure you do what is necessary to realise the potential.
For example; a webinar will never form part of any product if you don’t record the live session…!
So today I invite you to spend some time thinking about how you could adapt your working style to create your own passive income streams. Do you already have content that could be converted to immediately begin generating income? What will you need to do differently in the future to create paid products?
One final point on this… it is important that what you create is a solution to the problems your clients are facing otherwise they won’t buy. If you’re not yet sure of the solutions they need, a great place to start is by surveying your current clients and asking them.
Are you feeling inspired to create your first product? Do you already have passive income streams in your business? Please leave me a comment and share what you’re doing to design your ultimate lifestyle.
This is a great article and so true Joanna. Thanks for sharing. I went to your 1 day then 3 day training training a couple of years ago and learnt the eloquent business model from you. It was a turning point for me. I think the first step is actually making a decision that you want to create passive income through your business – and then doing what you say – apply a full day per week towards this. The past 12 months has been amazing for me and my business now generates passive sales every day (7 days per week), and it just keeps growing. Thanks again for your advice and getting me thinking along these lines. Andrew
Its so great to hear the results you’ve been getting. You are so right- it all starts with a decision.
Great post. Leveraging the knowledge you already have and are already providing is such a great way to expand your business and technology makes it easier and more affordable
Technology is certainly making life cheaper and easier in business these days, isn’t it Lianne?
Great to see you on the weekend!