You hear it all the time, diversify your investments to help reduce risks and never put all your eggs in one basket. Depending solely on one income in today’s market is very risky and God forbid should you lose your job or lose that client contract, what will you do? Well, you can apply those same principals to your job as well as your business.
Having multiple streams of income sounds oh so glamorous, but it’s not always easy to achieve. Anyone working two jobs can attest that eventually the hours will wear and tear you down. If you’re working full-time it can be exhausting trying to get your business off the ground on a part-time basis as well. The way to go about generating multiple streams of income is to focus on passive income. So what really is passive income? Glad you asked…
According to wikipedia, Passive income is an income received on a regular basis, with little effort required to maintain it. For example, rental income from property, dividends from stocks, website advertisement, etc. It typically requires upfront work to get it set up and then once the hard part is done, the money comes in.
One of the easiest way to figure out what type of passive income you should generate is to make the most of what you’re doing currently and seeking opportunities to expand on that. That’s what is nicely termed “leverage”. For example, let’s say you own a fashion boutique downtown. What are some other services that you could offer your customers? Maybe you can offer personal styling packages or professional makeup to go with their newly purchased outfits. Maybe you could partner with the hair salon next door and earn a 15% commission for every customer you refer. You get the idea right?
In terms of your job, how can you leverage your current skills to earn extra income? Can you package your knowledge into a tutorial ebook and sell it online? Can you sell products related to your services as an affiliate? Sure you can! Let’s say you’re an accountant or budget analyst. People will prefer buying accounting programs like Quickbooks or tax software like TurboTax from you as a trusted source. Therefore, you can earn commission as an affiliate just for making relevant product recommendations.
Think about the additional value you can offer your client before or after working with you. Another example is if you work as a wedding planner, you know that it requires a ton of work and skills before the big day. You can build your own team of strong referrals to what essentially looks like a full-service wedding company. Then you can charge your clients a one-stop shop planning fee and outsource to your referrals. Your client won’t have to stress about finding multiple vendors and you won’t actually have to do all that extra work yourself. That is how you deliver value the passive way.
The point I’m trying to make is to not stray too far from what you’re doing now especially if you enjoy it. Take inventory of the experience you currently have or the things that you enjoy doing. If others are being paid to do those things then chances are you can too. There’s nothing better than getting paid for what comes easy to you. Don’t make the mistake of going out of your way taking up extra jobs you know nothing about thinking that’s going to work for you long-term. That’s a pretty active and taxing approach, not passive.