We all started our businesses for a variety of reasons, right? To use our gifts and talents, to do something we love, to be our own boss, to step out of the daily grind, and to make the world a better place. If there wasn’t a financial goal, however, we would be content to offer our products and services for free.
But, knowing that what we have to offer has value in the marketplace, we launched our businesses to do all those things listed above and give ourselves the choices, freedom, and control that comes with financial wealth.
What’s a smart next step? As you consider future financial growth for your small business, we strongly recommend you consider adding passive income streams to boost (or even replace) your bottom line.
What is passive income?
Think of the hours and hours you pour into your business to make it successful and profitable. Meetings, emails, phone calls and texts, social media posts, planning, purchasing, billing, and then the ACTUAL work you do. Let’s call that “active income”—income you earn from a significant investment of your time, energy, and attention every single day.
The term “passive income” refers to revenue earned WITHOUT that hourly, daily hustle. Instead, most passive income ideas require an up-front investment of time and/or money, and then they generate on-going income with very little effort. Passive income allows you to earn additional revenue while you are working hard on the active parts of your business—and your life.
As a small business owner, there are many reasons why passive income is the next step for you: you already have an established product or service to leverage, you value growing and leveling up, AND you can build more financial wealth without working harder. Sounds great, doesn’t it?
8 Passive Income Ideas
Consider these ways to earn smart passive income and build greater financial wealth as a business owner. (Heard of any of these revenue streams before and wondered if they are legitimate or worthwhile?)
Option #1: Affiliate Marketing
Affiliate Marketing earns money by promoting the products of other people or companies. Find a product that you know and love and promote to your followers either on your blog or social media platform. Sales are tracked by affiliate links. Some affiliates pay you when a product is purchased. Others pay just if someone clicks the link!
Option #2: Online Courses
Digital Education through Online Classes allows you to teach, give recommendations, test products or impart good advice via online courses. What are your interests and areas of expertise? You are probably already producing this kind of informative content on your blog or via social media posts. Take it to the next level by creating digital classes.
Option #3: Template Sales
What templates have you created to help you run your business, family, and life? Consider offering them to the world through Template Sales! Using a website like Canva, you can make beautiful planners, checklists, workbooks, guides, or spreadsheets. You can easily post these items for sale on Etsy, Shopify, and Creative Market.
Option #4: Drop Shipping
With Drop Shipping you create a retail shop without stocking or owning any inventory. Instead, you accept orders which are fulfilled by a manufacturer, wholesaler, or another retailer. With Drop Shipping you don’t have to worry about keeping inventory piled up around the house, packing or shipping, or ebbs and flows in sales.
Option #5: Print on Demand
Similar to Drop Shipping, On-Demand Printing and Hands-Free-Product Sales give you the option of designing custom-made products (think t-shirts, mugs, and bags), which are only printed and shipped when a customer places an order. Like with Drop Shipping, this is a low-risk investment because you have no inventory. Checkout Printify to get started for free (this is what we use for the SOWBO Encourage Her Shop!)
Option #6: Advertisement Earnings
Advertisement Earnings refer to income that comes from displaying paid advertisements on websites, blogs, or social media platforms. It includes contextual advertising—ads related to your content—pay-per-click advertising, and banner ads.
Option #7: Digital Stock Sales
Digital Creation Stock Sales are similar to Template Sales, but with an artistic leaning. Photographers, artists, and designers can offer clients unique or custom digital photographs, art, music or graphic design templates. Etsy, Shopify, Creative Market, and stock image sites are all great arenas for your digital creations.
Option #8: Subscription Services
Finally, Online Membership and Subscription Services provides an opportunity for you to offer premium, exclusive content—like templates, guides, ebooks, or even podcasts—to members. This option is often utilized to scale active income and can feel more cumbersome than the other options mentioned above.
Ready to Learn More?
What do you think of these passive income ideas? Does this list get your creative juices flowing? Can you already see how some of these opportunities would enhance your existing business but are unsure where you should begin?
SOWBO wants to help you get started earning passive income, so we’ve planned an intimate 4-day Mastermind event at the gorgeous Graduate Hotel in Midtown Nashville. Just for you.
If you are ready to invest in the future of your business and build wealth through passive income revenue streams, please join us for our Online Passive Income event on September 7-10, 2021. Get ready to connect with our speakers—all successful online passive income earners—who will share their personal experiences AND answer all your burning questions. And, of course, there will be time for collaborating, networking, and enjoying the nightlife of the city!! Come and learn more about these passive income ideas to help you build financial wealth.
Let’s make that money, honey! (We need to get that on a t-shirt ASAP!)