{"id":1693,"date":"2020-06-15T01:17:00","date_gmt":"2020-06-15T01:17:00","guid":{"rendered":"https:\/\/profitmeetspassion.com\/?p=1693"},"modified":"2021-08-01T21:40:59","modified_gmt":"2021-08-01T21:40:59","slug":"how-to-create-passive-income","status":"publish","type":"post","link":"https:\/\/profitmeetspassion.com\/how-to-create-passive-income\/","title":{"rendered":"How To Create Passive Income"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"751\" src=\"https:\/\/profitmeetspassion.com\/wp-content\/uploads\/2021\/06\/How-to-create-passive-income_2-1024x751.png\" alt=\"\" class=\"wp-image-1695\" srcset=\"https:\/\/profitmeetspassion.com\/wp-content\/uploads\/2021\/06\/How-to-create-passive-income_2-1024x751.png 1024w, https:\/\/profitmeetspassion.com\/wp-content\/uploads\/2021\/06\/How-to-create-passive-income_2-600x440.png 600w, https:\/\/profitmeetspassion.com\/wp-content\/uploads\/2021\/06\/How-to-create-passive-income_2-300x220.png 300w, https:\/\/profitmeetspassion.com\/wp-content\/uploads\/2021\/06\/How-to-create-passive-income_2-768x563.png 768w, https:\/\/profitmeetspassion.com\/wp-content\/uploads\/2021\/06\/How-to-create-passive-income_2-1536x1126.png 1536w, https:\/\/profitmeetspassion.com\/wp-content\/uploads\/2021\/06\/How-to-create-passive-income_2-2048x1502.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>There are a lot of myths about how to create passive income and what it is. If you\u2019re an entrepreneur, you\u2019ve likely heard them all! Despite having a lot of misinformation, passive income can totally transform your business, so I'm here to share with you how to create it.<\/p>\n\n\n\n<center><iframe loading=\"lazy\" src=\"https:\/\/anchor.fm\/profitmeetspassion\/embed\/episodes\/How-to-Create-Passive-Income--my-journey-with-it-e15asvb\" height=\"102px\" width=\"400px\" frameborder=\"0\" scrolling=\"no\"><\/iframe><\/center>\n\n\n\n<blockquote class=\"wp-block-quote has-text-align-center\"><p><strong>This content also was shared on my podcast<\/strong>.<\/p><cite><strong>Listen to the episode above, or click the button below to subscribe to the Profit Meets Passion podcast \u2013 wherever you get your podcasts!<\/strong><\/cite><\/blockquote>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-100 has-custom-font-size has-normal-font-size\"><a class=\"wp-block-button__link has-white-color has-text-color has-background\" href=\"https:\/\/anchor.fm\/profitmeetspassion\" style=\"background-color:#f0b53f\" target=\"_blank\" rel=\"noreferrer noopener\">Click here to subscribe to the podcast!<\/a><\/div>\n<\/div>\n\n\n\n<p>First things first &#8212; yes, passive income is a must have for any entrepreneur who wants to have a thriving business. But I\u2019d bet that what you\u2019ve been told is passive income <strong>actually isn\u2019t.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-passive-income\">What is passive income?<\/h2>\n\n\n\n<p><strong>Passive income is income earned without actively working hours to receive that income.&nbsp;<\/strong><\/p>\n\n\n\n<p>For example: Sally earned $1000 this week from her coaching business, but she was actually on vacation (and a social media detox!)<\/p>\n\n\n\n<p>To further tease apart this point, let\u2019s say that Sally was on vacation, but she Instagram story\u2019d her entire day, including all those lovely swipe up links to her programs and affiliate products. <strong>This is not passive income.<\/strong> Sally is still actively working to drive attention to her business.<\/p>\n\n\n\n<p>So passive income occurs when you are not doing anything to actively earn income, but you\u2019re still raking in the dough!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-does-passive-income-really-work\">Does passive income really work?<\/h2>\n\n\n\n<p>So, what are the benefits of passive income? Let\u2019s break them down so you know if this is something you want to invest your time and effort into.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-benefit-1-you-have-the-freedom-to-set-and-manage-your-own-schedule\">Benefit #1: You have the freedom to set and manage your own schedule.<\/h3>\n\n\n\n<p>Let\u2019s say you\u2019re a health coach. If your business is based on passive income, <strong>you would be able to take time off without worrying about meeting financial goals<\/strong>. Since you aren\u2019t relying on working with people one on one, for example, you don\u2019t have to factor in someone else\u2019s schedule or invest the 2-3 hours (minimum!) per client.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-benefit-2-you-are-able-to-help-more-people\">Benefit #2: You are able to help more people.<\/h3>\n\n\n\n<p>Using the example of a health coach again, if your business is based on passive income, you will be able to help more people. Most people aren\u2019t able to afford a one on one session with a health coach, so that limits your client base. And then you are limiting yourself again because you only have so many hours in a week!&nbsp;<\/p>\n\n\n\n<p>But if you offered a passive income strategy like a self-paced online course, you\u2019d help way more people!<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-benefit-3-you-can-worry-less-about-money\">Benefit #3: You can worry less about money.<\/h3>\n\n\n\n<p>The whole point of passive income is <strong>earning money consistently<\/strong>, regardless of how much or how hard you\u2019re working. With passive income as the backbone of your business, you can more easily save up for expenses and even take that dream vacation without worrying about loss of income.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-benefit-4-you-have-more-availability-for-life\">Benefit #4: You have more availability for life!<\/h3>\n\n\n\n<p>Real talk: ever since COVID-19 hit I\u2019ve been working way less. But I still pulled in a livable income. How? Passive income is the backbone of my business. <strong>When you rely on passive income, you free up your time for what truly matters to you.<\/strong> I\u2019ve been able to spend more time with my daughter without worrying about making ends meet.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-common-myths-about-passive-income\">Common myths about passive income<\/h2>\n\n\n\n<p>While passive income really is as great as it seems, there is a lot of misinformation and mis-marketing about it. Let\u2019s bust some common myths about passive income.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-myth-1-create-an-online-course-if-you-want-to-create-passive-income\">Myth #1: \u201cCreate an online course if you want to create passive income.\u201d<\/h3>\n\n\n\n<p>Truth: Creating a course is not passive. In fact, it\u2019s one of the most time consuming things you can do in your business!&nbsp;<\/p>\n\n\n\n<p>Now, it\u2019s true that the income you\u2019ll receive from your course after the fact may be passive. <strong>But you still need to invest a significant amount of time and effort into creating a course<\/strong> in the first place&#8211;at least, creating one the traditional way. My course, <a href=\"https:\/\/wellnesscourseacademy.com\/\">Wellness Course Academy<\/a>, can guide you through creating a course in as little as 4 days.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-myth-2-launching-your-online-course-is-totally-hands-off-and-passive\">Myth #2: \u201cLaunching your online course is totally hands off and passive!\u201d<\/h3>\n\n\n\n<p>Truth: Depending on which launch strategy you choose (more on this in <a href=\"https:\/\/wellnesscourseacademy.com\/\">Wellness Course Academy<\/a>!) <strong>it could take several months to pull off a successful launch<\/strong>. Real talk: it\u2019s super draining. Definitely not what I\u2019d call passive!<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-myth-3-affiliate-programs-are-great-sources-of-passive-income\">Myth #3: \u201cAffiliate programs are great sources of passive income.\u201d<\/h3>\n\n\n\n<p>Truth: Teaming up with someone else to promote each other\u2019s products may seem like a great way to double your exposure and, therefore, generate passive income. But this isn\u2019t the case. First, you\u2019re now promoting someone else\u2019s product. Um, definitely not passive! Second, building these kinds of relationships with other entrepreneurs takes time and effort.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-myth-4-sponsored-content-can-create-a-lot-of-passive-income\">Myth #4: \u201cSponsored content can create a lot of passive income.\u201d<\/h3>\n\n\n\n<p>Truth: When you team up with a brand for a sponsored post, you then have to create content around the product or brand. This is definitely active, especially when you factor in the communication and editing you\u2019ll undoubtedly need to do.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-myth-5-creating-a-sales-funnel-is-passive\">Myth #5: \u201cCreating a sales funnel is passive.\u201d<\/h3>\n\n\n\n<p>Truth: Nope. Creating a sales funnel takes a lot of time, insight, and effort. <strong>An effective sales funnel could take four or more hours to create<\/strong>. In the context of an eight hour work day, that\u2019s half your entire day (though, let\u2019s be real: most entrepreneurs aren\u2019t having consistent eight hour work days!)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-myth-6-recurring-payment-plan-income-from-previous-clients-or-purchases-is-passive-income\">Myth #6: \u201cRecurring payment plan income from previous clients or purchases is passive income.\u201d<\/h3>\n\n\n\n<p>Truth: Money coming in from a payment plan from a client who purchased your program last month is not passive. Technically, <strong>it\u2019s just the money you\u2019re owed<\/strong>, but delayed. You still put in all that work to sell the product.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-passive-income-1\">What IS passive income?<\/h2>\n\n\n\n<p>Don\u2019t get me wrong &#8212; I love a good digital product! In fact, <strong>I consider digital products essential to running a successful wellness business.<\/strong> The distinction I am trying to make is that none of the above strategies are passive in and of themselves. <strong>It\u2019s how you leverage those strategies that can make them passive.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-example-1-reaping-the-benefits-of-a-sales-funnel-you-created-years-ago\">Example #1: Reaping the benefits of a sales funnel you created years ago.<\/h3>\n\n\n\n<p>When I put in the work to create my sales funnel for my nutrition program so long ago, I knew that I\u2019d be creating passive income for myself for years to come!<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-example-2-income-from-affiliate-programs-promoted-in-a-welcome-sequence\">Example #2: Income from affiliate programs promoted in a welcome sequence.<\/h3>\n\n\n\n<p>I\u2019m definitely going to talk more about this in later podcasts, but another great source of passive income is <strong>sales from affiliate products included in an automated welcome sequence<\/strong>. For instance, if someone signs up for a newsletter or freebie and is entered into your sales funnel, they\u2019ll see those affiliate products in your automated welcome sequence. If they purchase any of these products, that is considered passive income because you did not ACTIVELY promote them.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-example-3-diversifying-your-revenue-streams\">Example #3: Diversifying your revenue streams.<\/h3>\n\n\n\n<p>Having multiple sales funnels and welcome sequences for a variety of products and services generates passive income!<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-example-4-seeing-payment-notifications-about-a-product-or-workshop-you-created-previously\">Example #4: Seeing payment notifications about a product or workshop you created previously!<\/h3>\n\n\n\n<p>This is my favorite! Getting an email notifying you that you\u2019ve earned money from a product you created three years ago is such a rush.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-my-2019-journey-with-passive-income\">My 2019 journey with passive income<\/h2>\n\n\n\n<p>In 2019, I made $23,542.45 total in passive income.&nbsp;<\/p>\n\n\n\n<p>Note that <strong>I didn\u2019t earn that money from any of the new programs I launched<\/strong> or any payment plans I had from previous clients. None of that income is included in the figure above.<\/p>\n\n\n\n<p>I also <strong>didn\u2019t include income from any of my Beautycounter business<\/strong>, which is a huge part of my business overall.<\/p>\n\n\n\n<p><strong>That entire $23,542.45 was completely passive.<\/strong> I could have been sitting on a beach, phone off, and still made that money! Imagine if I hadn\u2019t set up the systems to bring in this passive revenue years ago. <strong>I would have been leaving nearly $24k on the table!<\/strong><\/p>\n\n\n\n<p>This year, I plan on putting more of my digital products into passive income systems. By doing so, I can anticipate <strong>earning at least double that amount in 2021<\/strong>, without lifting a finger next year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-i-m-going-to-grow-my-passive-income-system-to-earn-50-000-without-working\">How I\u2019m going to grow my passive income system to earn $50,000 without working<\/h2>\n\n\n\n<p>As I mentioned above, that $24k was just the tip of the iceberg. I have so much more earning potential in setting up more passive income systems.<\/p>\n\n\n\n<p>Here\u2019s my current plan to set up passive income systems in 2020:<\/p>\n\n\n\n<ul><li>Create limited time offers for all of my digital products<\/li><li>Create sales funnels for all of my digital products<\/li><li>Generate more affiliate revenue for my welcome sequence<\/li><li>Grow my Beautycounter team (note: this isn\u2019t totally passive, but I am including it because building these relationships with the women on my team doesn\u2019t feel like work to me!)<\/li><li>Generate more traffic to my website (check out <a href=\"https:\/\/podcasts.apple.com\/us\/podcast\/4-phases-to-monetizing-your-business\/id1495218516?i=1000462956690\">this podcast episode<\/a> to learn why this is so important!)<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-get-started-earning-passive-income\">How to get started earning passive income<\/h2>\n\n\n\n<p>First, start thinking about how you can leverage your current offerings for passive income. <strong>How can you use what you already have to create passive income?<\/strong> Break out your journal and start brainstorming!<\/p>\n\n\n\n<p>Check out my free email series, <a href=\"https:\/\/grassfedsalsa.com\/profit\/\">Keep Calm and Profit On<\/a>, on how to start making passive income in the wellness industry. You\u2019ll learn:<\/p>\n\n\n\n<ul><li>The phases of making money as a wellness entrepreneur<\/li><li>Email sales strategies that ACTUALLY work<\/li><li>How to beat the Instagram algorithm<\/li><li>AND how to make an Instagram sales funnel!<\/li><\/ul>\n\n\n\n<p>I\u2019ll dive in deep on sales funnels, marathon launches, email sequences, and so much more in upcoming episodes of the <a href=\"https:\/\/podcasts.apple.com\/us\/podcast\/profit-meets-passion\/id1495218516\">Profit Meets Passion podcast<\/a>!<\/p>\n\n\n\n<p>If you\u2019re ready to get started and you\u2019re willing to invest in coaching that guarantees results, head to <a href=\"https:\/\/wellnesscourseacademy.com\/\">Wellness Course Academy<\/a> to see how you can <span style=\"text-decoration: underline;\">get paid <\/span><em>while<\/em> you are creating your online course.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are a lot of myths about how to create passive income and what it is. If you\u2019re an entrepreneur, you\u2019ve likely heard them all! Despite having a lot of misinformation, passive income can totally transform your business, so I&#8217;m here to share with you how to create it. This content also was shared on [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1696,"comment_status":"open","ping_status":"open","sticky":false,"template":"elementor_theme","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[20,27,21,26],"tags":[],"_links":{"self":[{"href":"https:\/\/profitmeetspassion.com\/wp-json\/wp\/v2\/posts\/1693"}],"collection":[{"href":"https:\/\/profitmeetspassion.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/profitmeetspassion.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/profitmeetspassion.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/profitmeetspassion.com\/wp-json\/wp\/v2\/comments?post=1693"}],"version-history":[{"count":0,"href":"https:\/\/profitmeetspassion.com\/wp-json\/wp\/v2\/posts\/1693\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/profitmeetspassion.com\/wp-json\/wp\/v2\/media\/1696"}],"wp:attachment":[{"href":"https:\/\/profitmeetspassion.com\/wp-json\/wp\/v2\/media?parent=1693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/profitmeetspassion.com\/wp-json\/wp\/v2\/categories?post=1693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/profitmeetspassion.com\/wp-json\/wp\/v2\/tags?post=1693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}