Passive income is every where now. Technology has changed our world and just by glancing at a person, we can no longer tell who is making money (and how much) (and how!!??) I have a piece of this pie with my digital art shop – Essem Creatives – the lovely little site you’re on. But this isn’t the first stream of passive income I’ve attempted to establish.
First, lets review the basics.
What is Passive Income?
Passive income is income from sources which do not require you to “process order” or to “work to order” basically. Which means, these businesses are easily scalable. More sales does NOT mean more work for you or any body else in your organisation – hurray for that!
How Do You generate a Passive Income Stream?
You set up a Passive Income Stream by creating one or more products which you sell digitally. It is not a custom service that you provide. You do not need to create or ship or make a new product each time you have a sale. By selling digital downloads (hosted on a secured server), you are automating the delivery part of your business model. This means, do the work once, and then reap its benefits over and over. Yes, tweak your product from time to time to update it and keep it relevant to your target audience. As long as you’re adding value to the lives of your customers, it will keep selling.
Before I set up my passive income stream, I used to hate technology (when I was a Blackberry wielding overworked corporate lawyer). The tiny little red beep on the corner of my Blackberry could send my blood pressuring rising. I used to curse technology which forced me to be “present” at work way beyond my working hours. I’ve done calls at 2 am. It was not pretty.
Enter passive income and I LOVE the same technology! I love that I can be connected with my lovely customers several timezones away through the power of the internet. I love that they can find my product when they look for it – all thanks to the internet! I love that I can host my products in a secure way and do not have to process each and every order separately! Now, when I hear that little “ka-ching!” sound on my phone (the Sell on Etsy app makes a “ka-ching” sound when you get a sale – how cute is that), I am all delighted doing a happy dance.
Because of this source of passive income, I no longer have to worry about when I take my holidays, knowing that my business will continue making sales even when I’m away. I do need to respond to support queries, but that takes up an hour of my time daily – tops. I can be spontaneous and travel when I want to. I can take a break whenever I want and get back on track just as easily. Yes I do need to stay focussed, but it is a very forgiving lifestyle. And I love it!
If you’re someone who is looking for more FREEDOM in your life – freedom of money, freedom of time – then consider creating products to set up a steady stream of passive income.
The world has changed in more dramatic ways than we can imagine in the last ten years. More and more people are now working from home, have sources of passive income (either as a side hustle income or full time), and do business very very differently. Get on with it, ask for what you want, do the research, put in the work and you will be rewarded with more than you even asked for.
It’s Not for Everyone
Having said all of the above, there are some downsides & also some questions you should ask yourself to determine whether this is for you.
First, if you are someone who takes great joy in connecting personally with those you serve, then this will NOT give you the level of satisfaction that comes with offering a service. When I was a photographer, doing custom projects, I ended up meeting so many wonderful people and kind souls who eventually went on to become FRIENDS. We had a personal relationship, and I knew exactly whom I was serving, and they knew me as well! This kind of connection is special, and comes only with offering custom services.
Second, if you are in an industry where the products need to be customised for your client’s use, then again, the passive income route is not for you. Instead, to make your life easier, DELEGATE! Find trustworthy resources to hire (even part time works) and start delegating work that need not necessarily be done by you. This will free up your time to create more.
Some pinspiration for you. Save it, read it later and dream up ideas to execute!