According to the IRS, most millionaires have seven different income streams.
1. Dividend income from investments they own
2. Earned income from their paychecks
3. Rents from rental real estate they own or invest in
4. Royalties from selling rights to use something they’ve written, invented, or purchased the rights to
5. Capital gains from selling appreciated assets
6. Profits from businesses they own
7. Interest from savings, CDs, bonds, or other lending activities
That’s seven different ways that they’re making money each month. Now take a look at your business. How many streams of income do you currently have?
The first time I thought about it, I was only able to identify two: my business income (I wasn't taking a salary at the time), and proceeds from my mutual funds. That's pretty typical for the average person. And if you fall into the category of just one or two income streams, it’s time to open up that creative part of your brain and create more income streams.
Passive income is kind of a misnomer. That's because there is still work involved in creating products or setting up different forms of income. But the difference is these streams of income can work for you almost on autopilot for years to come, long after the initial work is complete. So think of the creative process as work-heavy in the beginning while you can still earn money from them well into the future.
A Few Benefits of Passive Income
1. Increase your bottom line profits
This is the most obvious benefit, but certainly worth mentioning because, after all, who doesn’t want to earn more profits? If you created a for-profit business, adding additional ways to earn income are always welcomed. And, as you know know, many consultative or coaching businesses can be limited when it comes to scalability due to the 1 to 1 nature of the business model. This means passive income streams are even more important when your calendar is filled to capacity.
2. Regain time in your day
I know I just said that creating products and other streams of income takes time but jump ahead and think about the back end of the process, when your product or income stream is completely set up and the upfront work is done. With a consistent, strong marketing plan, you can easily earn money on these passive income streams without much effort, even while you sleep, which means you can take off a little earlier or take an entire day off for fun because your passive income is still earning money.
3. Increase your credibility by helping more people
Think of passive income as a way to share your expertise with an ever-expanding audience. A snowball at the top of a mountain is very small, which represents you with your inner circle of clients. But as the snowball travels down the hill, it gathers more and more snow until it reaches mammoth size.
The same is true of you as you reach out to more and more people, networking online and off, and providing guidance through your books, webinars, or courses. You’re leveraging your knowledge and showcasing your expertise to infinitely more people, which will lead to increased sales and an army of people who rave about your work. In this case, the snowball effect is a very good thing!
Planning Your Passive Income
Hopefully you should be clear by now on the benefits of having passive income streams. So, now, let's have a look at what those streams should be for your business. There are many different kinds of passive income these days. A few of them can be gleaned from the list above, embraced by millionaires. But most can be accessed by anyone at any income level. For example, you could engage in affiliate marketing, or writing a book, or creating courses based on your area of expertise.
This last one is something I've done many times on topics including Facebook Ads, Wine, and (to get really meta) How To Create a Course.. As an expert in one or more subject matters, you can easily organize information you know and produce a training around it that will also appeal to your ideal target market.
Create Courses for Passive Income
Getting started with course creation so you can begin collecting passive income might sound intimidating. However, when you follow the step-by-step process outlined in the Create Courses for Profit training, you'll be well on your way to getting your course online and sold.
When I created my first course, I made a lot of mistakes. And I’d like to help you avoid those same mistakes by recommending the Create Courses for Profit planner. You’ll come away knowing what to avoid and with actionable next steps so you can develop a course your fans will love.
You’ll be on the road to creating courses for a strong passive income streams, which can increase sales but also increase your email subscribers, your clients, and your social media followers. Courses are the way to go to grow your business so be sure you act fast before it goes away!
What's covered in this Create Courses for Profit training?
+The Secret to Course Success? Choose a Topic That THRILLS Your Fans
+Why Picking the Perfect Name Will Make or Break Your Course
+The Best Way to Design Fun + Valuable Lessons
+4 Key Reasons to Get Help Building Your Course
Inside you'll get… a text book, workbook, checklist, tools and resources guide, idea generator, infographic, and more.
But there's only one way to get the Create Courses for Profit training. And that's when you invest in the full collection of Profit Planners from NAMS, the Novice to Advanced Marketing System. The Profit Planners are monthly DFY system guides covering several different business categories, including List Building, Email Marketing, Affiliate Marketing, and Productivity.
There's a TON of material included. Focusing on one topic at a time and implementing with step-by-step instruction, checklists, workbooks, templates and resource guides is the fastest way to master those strategies and techniques. On the 25th of each month, Profit Planner members receive a new done-for-you system guide. You can subscribe on a monthly or annual basis, but when you purchase the one-time payment option, you'll get access to this planner, plus all the past and future planners too.