The phrase, “Work smarter, not harder,” has always been in the forefront of my mind since starting my equestrian lifestyle brand in 2016, but that saying is easier said than done, isn’t it? We spend full days knocking out to-do lists, answering emails, and putting out fires and before we know it, it’s 9 pm and we peel ourselves away from our computers to scarf down some food, roll into bed, and do it all again the next day.
No? Just me?
The true meaning behind passive income is earnings derived from an enterprise where constant action isn’t needed. I had a lot of misconceptions when I was first introduced to it. For so long, I thought it was a character flaw to have my hands in so many things, be multi-passionate, or pivot my brand. I felt insecure that if I made big shifts, it was a sign that I was failing in my business. I eventually harnessed my passions and implemented this three-step process to create and diversify my passive income streams.
The 3 Step Process to Create and Diversify Passive Income Streams
1. Take on the educator role.
Laying a foundation is something you need to do if you haven’t already. We always teach our workshop or online course attendees the idea, “Everyone is an influencer.” I know, it sounds so cliche, but you have the ability to influence your community with the words you say, the stance you take, and the products or services you stand by. Take advantage of this opportunity by taking on the role of the educator. Blog posts are a great way to show your knowledge in many different avenues and show your areas of expertise. You could also collaborate with others in your industry. Create a design or product to give away, set up a contest, or get together for a photoshoot to grow your community and elevate your position. You can also start a podcast or be a guest speaker on one.
One of the main reasons I started the Equestrian Podcast was to interview top professionals in the industry… but as a result I became viewed as an expert simply by association. Lastly, try pitching yourself to magazines and other publications. A really effective way to showcase yourself as an educator is through features on other platforms! Don’t be afraid to shoot some emails out or ask other peers who have already been featured for an introduction email.
2. Outline your potential or current passive income streams.
Let’s get into the nitty gritty of how to start seeing those passive income dollars skyrocket! Whether you have or haven’t started implementing passive income streams, you may already have some streams without realizing it! Make a list of all the areas of your business along with sub-categories where passive income could or does happen. Here is my passive income chart below for reference! Whether you have one singular business or you dabble in many, jotting them down like this always helps my brain find connections and create a plan.
For example: with the right property management in place, sponsored ads and ad space require little upfront work to generate income on a video, podcast, or website. Digital products, online courses, affiliate marketing, and e-commerce are set up so you can create a product once and reap the benefits on your website or shop. Membership or online community groups have monthly subscription plans, but besides a little interaction and structure, the members navigate and communicate with each other. Lastly investment properties are close to passive and powerful for long term wealth.
Outline what this looks like for you. How can you categorize your passive income? Diversification allows you to “divide and conquer” in a way where you can test out many methods and find what is the most successful for you and your brand. It also allows you to create passive income that pulls at all of those heart-strings within the passions of you and your community. Finally, something that may be selling like hotcakes one month might lay dormant the next. Diversifying your passive income streams allows you to maintain success within your business in different areas instead of having outside factors that are out of your control dictate your revenue.
3. Create a specific plan of action.
Once you have created and packaged all of your offerings, a clear plan of action is essential to finding true freedom within your passive income. If you put forth the time and work to launch these streams, they will be able to essentially run themselves in true passive income fashion. The launch of your offer can make or break your passive income. Develop a marketing strategy leading up to your launch. I like to set a launch date and work backwards to schedule paid advertisement, collaborations, content, and associated freebies.
Before you have officially arrived at the start of passive income, you need to manage all of these revenue streams. The key to this management is outsourcing. Make a list of tasks that need to get done in your business and assign yourself the ones you absolutely must do. The rest should be sent off to someone who has more time or can do it just as well (if not better!) than you. Personally, my two modes of outsourcing fall between my internship program and online freelancers. Consider bringing on college students as interns who need experience in your business niche. The majority of my interns earn college credit through their internship, so you can see if they have the option to get an independent study program approved with their advisor and school. From there, I like to screen record myself and go through all of the tasks I want my interns to do, save them in a Google Drive folder, and give them access as learning tools. On the plus side, you only have to do that one time and then they are ready for future interns. I also use freelancer websites to find the person who edits all the audio on my podcast. Not only is the price amazing, but he is so reliable and does an incredible job.
Any business can create and implement passive income into their business. And if done correctly, you can make a monumental impact in your community without having to sacrifice your sanity, quality time with your family and friends, or your passions in life. I want to encourage you to look into how you can benefit from passive income if you are a multi-passionate business owner such as myself. You can play out all your ideas in a way that still draws your ideal client back to your “why” in a cohesive way. At the very least, having multiple streams allows you to see what performs well and what doesn’t and pivot accordingly. If you can take hold of the educator role, develop a clear plan of action for your offer, and implement these tools into your launch and marketing strategy and you will be running on autopilot in no time!
Ready to start earning passive revenue and scaling your business? Get our Passive Income Ultimate Guide.
Plus, 5 more posts you might like:
- How to Sell via an Email Funnel to Earn Passive Income
- The 5 Reasons You Need to Create an Online Course or Membership
- How To Leverage The Connections You Already Have Through An Affiliate Program
- How to Pitch Yourself for Speaking Opportunities
- Dreaming of making passive income in your business? Do THIS first!