EPISODE 69 - 5 Passive Income Ideas You Can Add to Your Business

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If you have been looking for some ideas of what you could do to add a passive income stream to your business so you can start to scale your income without add more hours to your schedule, this episode is for you!

Danielle lays out 5 Ideas of ways you can add an additional Stream of Income to your business that are passive!

What is passive income?

You do the work ONCE, and get paid for it over and over again. Depending on the kind of passive income you create, it may require upkeep in creating and managing your passive income streams. Check out Episode 55 to get more information on how to stop trading your time for money and starting from zero every month!

Note - recurring revenue is different from passive income! More to come on that in a future episode.

Launching a stream of passive income doesn’t mean you ditch your “bread and butter” - it allows you to create more sustainable income in your business. Realistically, it is an additional stream of income that takes time to build. Dream big, start small now and watch the compound effect as your business grows and scales.

You NEED to know who your ideal client is as you develop streams of passive income:

  • Who are you serving?

  • What are their pain points/problems?

  • What do they actually want?

The more value that you can bring to other people, the more you can serve your ideal audience, the more successful you will be able to be in business.

5 Streams of Passive Icome

  1. Create A Digital Product

A digital product that you create once and sell over and over again.

  • Guides

  • Templates (Canva, Website Templates, Contracts, etc)

  • Ebooks (How to Design Your Own Website, Nutrition, Organization Hacks)

Benefits:

  • Scalable - you can sell infinite amounts of this one product, and since it’s available online, you can sell it virtually anywhere in the world

  • Time-Efficient - is often something you can create in just one day - often service providers already have the bones of a digital product that just needs to be repurposed for consumption.

    2. Create an Online Course

When you are teaching someone “how-to” usually using a framework - can be formatted in a video playback course, audio-only, workbooks, or even mixed media

  • Lifestyle - Cooking, Meal Preparation, Organization, etc

  • Business - SEO, Podcast, etc

  • Hobbies - Music, Art, etc

Benefits:

  • Scalable - you can sell infinite amounts of this one product, and since it’s available online, you can sell it virtually anywhere in the world

Challenges:

  • Time-costly - creating the framework, setting up the course and getting feedback prior to launch can take time

     

3. Affiliate Marketing

When you choose a product, service or course that you love that you promote on behalf of someone else and receive a commission on your promotion.

This works really well for products or services that are aligned to your products and services. 

Benefits:

  • Works really well if you have a blog or channel with high traffic.

Challenges:

  • Costly: Is really only worth it if you are able to receive at least a 30% commission.

4. Selling Stock Photos/Videos or Licensing Music

This works really well for creatives - photographers, videographers, or musicians.

Benefits:

  • Cost-efficient: If you sell on your own website, you get 100% commission

  • Time efficient: If you sell through a stock website, they handle all the marketing and exposure on your behalf

Challenges:

  • Time-costly: If you sell on your own website, you are responsible for all the marketing

  • Costly: If you sell through a stock website, they take a commission

5. Dropshipping 

When you set up and curate your own online store, fulfillment is handled by your suppliers.

Benefits:

  • Time-efficient on the backend: You are able to have a virtual storefront without the hassle of stocking inventory, packing or shipping to your customers.

Challenges:

  • Time-costly on the front end: You are responsible for marketing and driving traffic to your storefront.

Biggest Tip - Get a short-term and long-term marketing plan for your streams of passive income! As you invest your time in your services, you are building trust with clients so that they believe that you can solve their problems, so plan to solve them!

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TRANSCRIPT

[00:00:00] Danielle: Hello, and welcome to the podcast. We have a very interesting episode today, and I'm really excited to dive into this. So if you have been looking for some ideas of what you could do to add a passive income stream to your business, so you can start to scale your income without adding more hours to your schedule, then this episode is for you. I'm going to be going over five ideas of ways you can add additional streams of income to your business that is passive.

[00:00:31] So before we jump into today's episode, have you heard about our giveaway yet? And have you entered, if you haven't heard, we are going to be giving away three amazing prizes to three lucky winners and to enter, honestly, it's going to take you like two minutes, so you can do this right now. Pause this episode.

[00:00:51] So here's what you can win. You can win a power strategy session with me, which is one-on-one where we will strategize on your business. We can talk about how [00:01:00] to add some of these passive income streams, if you would like to. Um, and then you also have the option of having the session featured on the podcast, if you would like it to be featured.

[00:01:09] Number two is free access to our action takers club and our bonuses. And number three is a business feature. So we are going to give you a shout-out for your business on this podcast and on our business babes collective Instagram.

[00:01:25] So here's how you can enter. Number one is subscribing to the podcast. I think it's actually called following now. So hit that follow button on the right hand side on apple. And so if you are not listening on apple right now, go over to your apple podcast app and search business babes collective hit follow on the top-right corner. And then you're going to scroll all the way down.

[00:01:47] You're going to leave a rating, hit those five stars, and then take a screenshot before you actually hit send. You're going to leave a review and a testimonial of what you love about this podcast, [00:02:00] what it has meant to you. And then when you take a screenshot, send a message to me over on Instagram @danilivinglife, Dani with an I, living life.

[00:02:09] And yeah, honestly, if you've enjoyed this podcast at all, it would mean so much to me, if you would subscribe and leave a review. I absolutely love reading each and everyone that comes in. You guys are so kind and so nice. It really honestly keeps me inspired to creating these episodes for you. So, all right, now that you have, uh, paused this episode and gone and left a review. I'll give you a minute to pause this episode (wink wink). Alright, now that you have let's go ahead and dive into the episode.

[00:02:41] Welcome to the business babes collective podcast. I'm your host, Danielle Wiebe. In this podcast. You'll learn tangible business tips and strategies on how to grow successfully and sustainably. We'll also interview seasoned entrepreneurs, so you can listen in on their stories and see behind the scenes of [00:03:00] what it took to grow and scale their businesses. Let's dive in as we discussed the wild, exciting, crazy, challenging, roller coaster ride of entrepreneurship.

[00:03:11] I want to start this episode by saying none of these five things are one hundred percent passive.

[00:03:18] In fact, if you've listened to my past episode that I did on passive income, I shared some of my thoughts on passive income and how the idea behind it is that you do the work once and you get paid for it over and over again, which sounds amazing. And it is, it is amazing. Now it is possible to create, however, there's always going to be some upkeep with creating and managing your passive income streams.

[00:03:45] Okay. So it's not just like you create it this one time and then you never touch it again, and you just have streams of income coming from all different places. So if you're new to the podcast, I actually highly recommend you listen to episode [00:04:00] 55 of the podcast. I share four truths about creating a passive income business that are rarely talked about.

[00:04:07] So I would say that it's really important to go back to this episode and really listen to this after you listened to it or listened to that one after you've listened to this one, because you're probably excited about the opportunity to add passive income so that you can stop trading your time for money and have some extra cash in your business.

[00:04:27] And you don't have to start from zero every single month. So that's something that we're going to be talking about a little bit today. And I actually would love to do another episode on recurring revenue because passive income or passive revenue is actually different than recurring revenue. Right?

[00:04:43] So, maybe we'll do another episode on that in the future if that's something you guys are interested in. So please let me know, like send me a message on Instagram or send me an email. Let me know if some of these topics are things that you guys want to learn about, cause I'm happy to do another episode on that. But the [00:05:00] purpose in sharing these ideas is not so that you can completely ditch your bread and butter of the services and the products that you're currently doing that currently bring in income to your business.

[00:05:12] So if you are a product based business, or if you are a service-based business, I'm not saying, you know, completely replaced this and ditch all of those services and go straight to passive income. First of all, that's not really how it works. And I'll explain that in a minute, but also, you know, you want that income coming in every single month and you want multiple streams of income in your business so that you can have a really sustainable business.

[00:05:37] So, personally, I have streams of passive income in my business, but I also do do trade time for money. So for example, I do one-on-one coaching, also have a mastermind, which is recurring revenue, which we'll talk about in future episodes. But it is something that I show up for. So we have calls that I have show up for.

[00:05:58] I also do some coaching [00:06:00] with our mastermind members, that kind of thing. So there is that trading time for money. The services that I provide to our community also events is something that definitely is not passive, but that brings in a lot of profit to our business as well. So maybe another episode would be me explaining my different streams of income.

[00:06:20] If that's something of interest to you guys, I'm happy to do that. And kind of explaining maybe what percentage of income comes from, which stream, all that kind of stuff. So if that's something that you guys are interested in, happy to do that for a future episode, but basically the reason why I want to share this is because I want you to think about passive income as an additional stream of income in your business.

[00:06:42] And if it eventually surpasses the income that you have in your business, awesome! And if you're able to pivot, and maybe you don't love working one-on-one with clients, or, you know, you feel burnt out by certain things then great. If you're able to replace your income with some of [00:07:00] these passive income streams, awesome. Because this is something where it's not going to blow up for you overnight.

[00:07:06] As much as other people might like to make it seem like passive income is super easy, it's going to happen for you overnight, I just want to be realistic with you and I want you to dream big, but also start small and know that this is something that you can start now and that it will have a compound effect for you as you grow and scale your business.

[00:07:30] So another thing that I want to start with is, before we get to any of these type of ideas, is that You need to know who your ideal client is going to be for any of these things that we're going to be talking about. I want you to really dive in and know exactly who you're bringing this value to, because it's really important before you start creating products and doing all these things that we're gonna be talking about, I want you to figure out who are you serving?

[00:07:57] What are their pain points? What are their problems? What do [00:08:00] they actually want? Right. And this is something that we dive into inside of action-takers club is understanding and attracting your ideal clients and choosing a niche, choosing a group of people who you can really, really be able to serve.

[00:08:16] Right? So the more value that you can bring to other people, the more you can serve your ideal audience, the more successful, you will be able to be in business. So now that we've gone through that, let's dive into the five ideas I have for you today.

[00:08:32] So number one is to create a digital product. So that could be a guide, a template, an ebook. This could include like Canva templates or an ebook on how to design your own website, or maybe it's a nutrition guide or organizational hacks. It could be anything. So it's a digital product that you were going to create once. So the benefit of this is that you create it once [00:09:00] and you can sell it over and over again.

[00:09:02] So the reason why I love the digital product space is because it's something that's so scalable. You can sell infinite amounts of this one product, and because it's available online, you can sell it anywhere in the world, right? And so the other thing that's really beneficial about this in particular is that it's not going to take you long to create it for digital products, especially if it's like a guide, an e-book a template, it could be something that you could create in one day. And often, you know, if you are a service provider, you might actually already have the content in a Google doc somewhere that you could actually repurpose into a paid resource. So that is number one is to create a digital product.

[00:09:47] Number two is to create an online course. So an online course is where you're actually teaching something. And normally there's like a framework that is attached to it. So this could be teaching someone how to [00:10:00] play an instrument, uh, how to create art. I've seen cooking or meal prep courses, makeup and hair tutorial courses, decluttering courses. Obviously within my niche, which is business, there is SEO courses or social media marketing.

[00:10:17] So many things. The list goes on and on and on of the things that you could teach and have as a online course. As for the format, this is actually totally up to you. I know a lot of people think like, oh, I have to have a video course. And yes, a video course is very beneficial. That's, that's how we have structured our course in action-takers club, where the course is structured that way.

[00:10:41] We have slides, There's a little video bubble of me in the corner, so you can see my face. But, you can also have courses where it's just audio based. And so I've seen a lot of people put courses out and it's all audio, and sometimes they have workbooks attached to it, whatever that looks [00:11:00] like you can be creative and do it however you would want to do it.

[00:11:03] Again, I would probably go back to your ideal client and ask them what is most beneficial for them? What, in what way do they like to learn? If you do do a course, that's all audio, I would also try to transcribe it as well, cause a lot of people like to read potentially instead of just listen.

[00:11:22] So however you want to do that is really up to you and I've also seen courses that are a mixture. So mixture of video, audio, resources as well, documents, workbooks. Ours is a combination of video, as well as resources and different templates and all of that as well. The benefits of creating an online course is again, you can create it once and sell it over and over and over and over and over again, which is so awesome. And it's very scalable.

[00:11:53] One of the challenges though, of creating an online course is it often takes longer to create. And you [00:12:00] also want to make sure that you create some sort of a framework where you can take your students through that makes sense for them, that supports them in the best way so that they can get to their desired outcome and that they have success with your course or with your program.

[00:12:16] So within action takers club, for example, we take everyone through this framework, which is called the profitable entrepreneur method. And it's something that I created that's step-by-step, we have homework, um, there's that accountability piece and all of that. And so that usually takes a longer time to set up, to create the framework, all of that. You want to also get feedback from the people taking it. I also really highly recommend this is a whole other topic, but I highly recommend if you're going to do a course, do a practice run with a group of students, maybe beforehand. And then do those tweaks before you actually record the video content or the audio content for the final version.

[00:12:57] Okay. So that's number two is creating online [00:13:00] course. Number three is affiliate marketing. So this is where you choose a product or service, or a course that you love. You don't own that course it's someone else's, but you are going to promote it on their behalf, and in turn, you are going to get a commission on any sale that comes through your promotional efforts.

[00:13:19] So I've done some affiliate marketing in the past, and this works great for products or services that are really aligned to your specific audience that you already have. So for example, for me, I've done affiliates with different online courses that are business based. I've done it with softwares or like the email marketing platform that I use for, with Flodesk, that kind of thing, because my ideal client, who is you, who is a female entrepreneur, who is looking to scale their business, you know, those are the things that they specifically want and need.

[00:13:51] Those are the things that you specifically want and need. So a tip here is, if you want to do affiliate marketing for a product or service and either, [00:14:00] maybe you haven't seen that they have an affiliate program, I would go ahead and ask them because most business owners would love to have other people promote their products and services and give you a commission in exchange.

[00:14:12] Personally, I know everyone is a little bit different with this, but I personally believe that a good affiliate commission would be around 30 to 50%. I honestly just probably would not do any affiliates that were less than that, unless it was something, maybe I would do it, but I wouldn't really spend a ton of my energy, you know, promoting that thing because, if I could promote my own products and services where I'm making a hundred percent commission on it, it doesn't really make sense for me to promote something when I'm only getting like a 10 to 20% commission, if that makes sense.

[00:14:45] So everyone is different with this. Again, if you have like a blog or a YouTube channel or something where you have a ton of traffic, maybe you're, you're an influencer on Instagram or Tik TOK, or maybe you even have a podcast [00:15:00] and you know, you have tons of downloads, and then it could make sense for you to have more of these affiliate partnerships and affiliates commissions that are maybe a little bit lower because it's a higher volume, but that's just totally up to you. So again, everyone is different when it comes to this. So that's just my particular thought on that.

[00:15:17] So number four is selling stock photos or videos or licensing music. So this one is really cool. So this isn't something that I particularly have any experience in. But it's something that my community does and we have some people in our community who have done this. So this is a really great opportunity, obviously, for those of you who are creatives, photographers, videographers, or musicians, you can upload your work to different platforms and earn a commission. So it's kind of like earning a royalty on some of those things.

[00:15:49] So you can either sell it on your own website. Or sell it on one of these stock photography or stock videography websites or a music platform. Now the [00:16:00] benefits of course, of having it on your own website is that you get the full commission on it. However, you have to do your own marketing. Whereas these other platforms, they're doing the marketing for you, but they're getting, you know, a very high Commission on it as well. So hopefully that makes sense. So it's kind of like a reverse affiliate opportunity for you.

[00:16:21] Okay. So number five is drop shipping. This is the final idea for passive income. Now this is really cool because you can set up and curate your own online store. And I highly recommend having it very specific and very niche. And so you have a selection of products without the hassle of stocking inventory or packaging or shipping to your customers. So basically people come to your online storefront, they can purchase off of your storefront and then your suppliers handle all the back end fulfillment. So again, drop shipping is not [00:17:00] something that I have personally done, but many people in our community have done it.

[00:17:03] And again, this was would require you to do all the marketing on your end to drive traffic to your store, but then you save time and money on the backend where you don't actually have to do any of the fulfillment. So it's kind of like a lower risk for if you want to have a product business, but you don't necessarily want to create, like physically create the products and you also don't want to handle like the shipping and fulfillment and any of that then drop shipping could be a really good option for you.

[00:17:34] So those are the five ways that you can potentially add passive income to your business. To sum up this episode, there are so many different passive income opportunities. We just went over five today, but my biggest suggestion for you is to have a short-term and a long-term marketing plan for these. So for example, long-term marketing plan personally, [00:18:00] for me, I think having a blog, a YouTube channel or a podcast is really where you have to invest your time, because that's where you're going to start creating free, valuable content to your niche.

[00:18:12] And then as you build trust with your ideal clients, then they are going to come to you and, you know, want a solution to their problems. And these are some ways that you can offer really great value and really great solutions to your ideal client's problems. So it could be through your own products or affiliating for other people's products or again, having a dropship store, whatever that looks like.

[00:18:36] So I hope these were helpful for you. Thank you so much for joining us today. I would love to hear which one of these you would personally be interested in learning more about and potentially pursuing in your own business. Send me a message on Instagram @danilivinglife. You can also send me an email at danielle@businessbabescollective.com.

[00:18:57] And if you want me to dive into [00:19:00] any, any one of these specifically, I'm happy to do that. Obviously it would be one, two or three, because those are the ones that I personally have experience in. But if you want me to dive into creating digital products, online courses or affiliate marketing, I'm happy to do a specific episode on one of those topics, if that would be.

[00:19:18] So anyways, thank you so much for joining us today. Don't forget to enter the contest, pause this episode, press subscribe and scroll down, leave a rating and a review. Send it to me on Instagram and you'll be entered to all of our amazing prizes. We are going to be announcing the prizes and next week on the, contest ends on the 15th and we're going to be announcing it on the 16th, so don't miss out. Thanks so much for joining us, joining us today, and we will see you in the next episode!

[00:19:51] If you love this episode, make sure you screenshot, post, and tag us on Instagram at @businessbabesco. Want to know when the next episode [00:20:00] goes live? Subscribe on your podcast app, and while you're there, leave us a review! Until next time, keep dreaming big, setting goals and taking action.

 
 
Danielle Wiebe