“You become financially free when your passive income
exceeds your expenses.”–T. Harv Eker
Creating Passive Income
as a Home-Based Business Service Provider
When you’re a service provider, in many ways (unless you have a huge team) you are working by trading hours for dollars. With only so many hours in the day, your income will eventually top off. But, if you work in your spare time to create passive income, you can create a situation where you can overcome the “hours for dollars” trap.
What is Passive Income?
First, let’s define passive income. Passive Income is simply creating a product that will generate multiple sales, over time. An example is an author of a book who collects royalties for several years. It’s not really as easy as the word “passive” makes it sound. Initially, some form of work is required to collect an income for years to come.
Steps to Developing a Passive Income Strategy
The best way to approach creating passive income as a service provider is to focus on two main points:
- Consider who your audience is right now
- Find products and solutions that can help them.
As a service provider, there are many things you know about your clients, which can help you determine what they need.
For example, if you are a virtual assistant for life coaches, they’re going to need systems such as payment processing, course delivery, sales pages and more. You can become an affiliate for all of these systems that you recommend and help set up for your customers.
Here are eight ideas for creating passive income.
- Write an eBook:
You likely can teach other service providers how to do something, and writing an eBook is an excellent way to go about it. You can write the book and get it up on Kindle within a few weeks. You can also offer the eBook on your website and keep 100% of the profits.
- Develop a Membership Course:
You can turn your book into a course with the right set-up. You can put your course on a website, or you can use one of the cloud-based providers such as Udemy.com.
- Create a Blog:
A blog is a good way, though a long-term way, to earn some passive income by recommending tools, products and services to your audience. You technically can easily create two different blogs. One can be directed to a service provider, such as Amazon. Another can be directed to a specific website. For example, I will direct people to my Hall Content Writing Service when they read this blog. I can help my audience with creating content for their home-based business.
- Build an Online Directory:
A directory is a great way to collect some money to allow people to list their business on the site. You can make it “hands off” with the technology available using directory software. This could involve getting businesses in your area to pay a fee for listing on your directory.
- Promote Products as an Affiliate:
Your audience likely needs various products that you can recommend to them as an expert service provider. When they use the link you provide to them, you’ll earn a little bit of commission. This blog is a good example of this strategy.
As a service provider, you can become the public name of a larger entity when you outsource. If you can find people to outsource a quality product or service, you can make money without having to do the work. Your job becomes marketing the services, paying the cost of outsourced labor, and generating a profit for your business.
- Promote an App:
You may be able to come up with an idea for an app for your audience. Even if you have zero coding experience, you can hire a coder to make the app for you, then promote it to your audience as well as your customers.
Popular YouTube channels can earn a full-time income and you can get in on the action. You can either make videos yourself, or you can hire someone to make videos for you depending on which way you plan to go. A good strategy is to use You Tube videos embedded in your blog for your readers to enjoy. You can create a private viewing with a password to access the video. You would charge an admission fee for the password access.
Key Resource: YouTube: The Ultimate Guide to Creating a YouTube Channel, Audience, and Develop Passive Income, by Andrew McKinnon. Click here for the book.
Honesty is the Best Policy
Developing passive income sources as a service provider is a delicate balance. Always be honest with your clients when you recommend a product to them, telling them that you will earn a small commission. Nothing is wrong with that at all, but you have to be up front with them.
I post a Notice of my affiliate relationship with Amazon.com and with ClickBank. The small commission will not affect the price of the product by using my referral link.
Is Passive Income a Scam?
Passive Income is not a “get rich quick” scam. It takes time to create an audience that trusts what you have to say and recommend. This blog is a good example of an affiliate-based business. As a content writer, I provide a service that will help you create content for your own blog. Visit my website here or use the contact form on this blog for a quote. I look forward to working with you.