Make money while you sleep is the big draw to start a passive income stream. Passive income can be a great way to generate cash flow especially when starting your business. Starting your passive income stream as a side hustle is a way to build a nest egg and security as you work a full-time job or build up your main stream of income.
The biggest myth they try to sell you is that passive income is just that passive - no work required. But the truth is that most passive income streams, if done right requires work, especially a lot of work in the beginning to lay down the foundation.
The other myth is that you will start making a lot of money overnight. The reality is passive income is not a get rich quick short term strategy. And while some people make a great living from one form of passive income, it’s more common that you will have small amounts from a few different sources coming in.
Your one business can generate multiple sources of income when you create different avenues and automate the process.
The key to passive income and why it should be at least one of your 7 income streams is because it can bring you money for years to come. Even when you are not actively working or limit your time to a few hours a week - it should pay off.
Here are 10 passive income ideas to integrate in your business:
- Affiliate Marketing
- Selling Info Products / Digital Products
- Create a YouTube Channel
- Write and Publish Books
- Create an Autoresponder Series
- Sell Products on Etsy
- Start an E-Commerce Store (with Shopify)
- Invest Your Earnings in Dividend Stocks
Side Hustle Nation has a great article "71 Passive Income Ideas To Stop Trading Time for Money" your should check out.
Even if you only have one stream in your business right now you can make your business more passive, move to the next level, and generate more income and leads when you automate.
Automate Your Business
There comes a time in every entrepreneurs business when you realize you simply can't do it all yourself.
When you are starting out you are everything to every one: “chief, cook and bottle washer.” But as your business grows, it becomes painfully obvious that trying to do everything is only going to lead to:
- Frustration (when critical tasks don’t get done and deadlines are missed)
- Burn out (when you’re working yet another 12-hour day)
- Overwhelm (when your to-do list is longer at the end of the day than it was at the beginning)
There are many ways to overcome this business-growth hurdle, but one of the best is automation. Imagine a completely hands-off system (passive system) that works for you even when you’re hiking or relaxing at a luxury day spa.
Automation also lets you scale your business. It gives you more time to do the money-making tasks such as networking, marketing and creating another income stream.
So what can you automate? Almost everything, but start with:
Create Your Email Funnels
What happens when a new subscriber joins your mailing list or someone buys a product? Do they just sit in waiting on your list until you have time to send an email?
While broadcast emails have their place—especially in time-sensitive promotions—be sure to also set up an autoresponder series to:
- Welcome new subscribers and help them navigate your website, products and services
- Nurture buyers, build relationships and turn them into repeat buyers
- Make additional offers based on what they already purchased or shown an interest in
And the best thing? Once your autoresponder is set up, it will continue to work even when you’re not.
Use ConvertKit to create unlimited forms, landing pages, and send emails to up to 1,000 subscribers for free.
Social Media Management
How do you spend 15 minutes a day on social media engagement? You automate your posts and updates. Batch schedule to save yourself hours of time each and every month. Not only that, but you won’t have to worry about missing an update, either!
SmarterQueue provides social media management and scheduling. The bonus is automatic rescheduling of posts.
If you have clients, partners, a team, or are often asked for interviews, then an automated calendar is a must. Rather than endless back-and-forth emails trying to find a mutually available time slot, simply send your calendar link and let your client, project manager, JV partner or anyone else choose a time that works for them. Your appointment will automatically appear on your calendar, and you’ll even get reminders (if your calendar supports that). Acuity and Calendly are two popular options.
Chasing organic traffic is an exercise in frustration. I know all about this. You’ll spend all your time creating content for your blog, other people’s blogs, YouTube, social media, and other online platforms. All that content creation leaves you little time to actually work with the clients you’re trying to attract.
Instead, invest in some quality paid traffic, and get off the endless content creation train. You’ll be happy you did.
In the beginning you may feel like you can't afford this expense but it will pay off in the long run.
Not all of us are going to get rich from our jobs. To achieve financial independence, you are going to have to start earning passive income and make it easier with automation.
There are dozens of options for automating every aspect of your online business. As you grow, and add new passive income streams you’ll find new and better tools to make everything run more smoothly. Implementing these ideas will save you hours every month.