Building business online comes with many challenges and one of the best ways to bulletproof yourself to any financial struggle that might come is to create a source of passive income. Today, let’s talk about creative passive income streams: why are they crucial to your business and how to get started?!
First… What I mean by creative passive income streams?!
Those are rather fun and creative ways to earn passive income where you have invested YOUR ideas, your energy and your creativity. It’s not MLM business scheme but it is something you’ve created and do enjoy fully.
One more disclaimer before we move any further!
Passive income becomes passive ONLY after you’ve done all the hard work. Therefore, before getting into this article, be mindful of the work you’ll actually have to do before getting to that passive part.
Related book suggestions:
>> Put your mind to getting things done “Finish: Give yourself the gift of done”
>> More about building your own side hustle “Side Hustle: From Idea to Income in 27 Days“
>> Learn to set bigger goals and work for success “The 10x Rule: The only difference between success and failure“
Disclaimer: This blog includes affiliate links.
Why should you have a passive income stream?
REASON #1 Diversified online income = a smart choice
Regardless of what is your primary source of income, it’s always nice to have some backup plan.
For example, if you’re freelancing, you never know when your client could ditch you, maybe there’ll be some quieter time when you’ll struggle to find people to work with. If you’re selling physical products, your production cost could suddenly raise. If you’re working a 9-to-5 job you can get fired. So many unpredictable things can happen!
I’m not trying to make you think about the worst-case scenario… But it’s good to be safe – just in case!
And having creative passive income is a smart way to be ready for any financial challenges that might come your way.
REASON #2 More income = easier to save
Well, I just have to be Miss Obvious here and say that passive income won’t request as much of your daily time but will give you some additional income. How can this not be a good idea?!
If you want to make savings, having a creative passive income stream can be the ultimate way to do that.
Let’s say, you’re planning to get rid of your credit card debt, you’d love to have a new laptop or even any smaller goal will do – whether it’s a dress for your birthday party or a weekend trip with your loved ones.
If you make the decision to let your passive income go into savings, you won’t have to save from your daily expenses or cut out things you love. You’ll be actually able to save without making huge adjustments to your life! (Except for that part when you’ll have to work to make your passive income possible…)If you want to make savings, having a passive income stream can be the ultimate way to do that. Click To Tweet
REASON #3 New creative outlet = more motivation
If you’re a bit drained in your work, building a new creative passive income stream could be a fun way to get away from your daily rut and take a new approach to your business.
Many of us feel like we’re already “living the dream“. Whether it’s having your own business, writing a blog, working with your own chosen clients… Creating a passive income stream can turn out to be a great way to explore other interests and other fields you might get successful in.
In other words, it’s a great way to make your dream grow even bigger!
Besides that, having a new creative outlet to bring yourself into, is another powerful way to refresh your motivation and tackle your daily tasks with ease.
Things to keep in mind before starting a creative passive income stream
KEEP IN MIND: Coming up with a creative passive income stream is a lot of work (bummer!)
Very often people get into “passive income” because of how enchanting it sounds. Passive is associated with lazy, easy and simple. But this is not the case!
Creative passive income stream could take tons of your time, planning and energy. Therefore, you have to make sure you LOVE what you’re getting into and you’re really PASSIONATE about your idea.
Yes, some of the passive income streams are a bit lazier and easier than others. For example, if you decide to work with affiliate marketing instead of creating your online course, it can be faster and easier. But it’s not always the case! Besides that, it depends on your goals and the effort you’re ready to put in.
Don’t get into passive income because you want things to be easy. Think of how you can add more purpose to your own daily life, be more useful and do more good with your new income source.
KEEP IN MIND: To keep getting income – the maintenance has to be done!
Even when you’ve come up with your product, website, blog or whatever else is in the making, it will request some daily or weekly maintenance and… well… additional work!
If you want to make your passive income grow into something bigger…
You must understand that having a grand vision of your product or passive income source will request tons of work. If you are getting into this with big dreams, make sure to be ready to work hard for them!
Let’s say, you’re writing a book and would love for it to become a bestseller. One day, you want to call yourself a full-time writer. And maybe even publish the sequence. Amazing! Go for it! (By the way for setting big dreams I totally suggest this read: “The 10x rule: The only difference between success and failure“)
But you should understand that this will request tons of planning, many amazing ideas, many failures and a lot of dedication. This could request leaving your current job to put all your mind on your goals. It’s a completely another level of passive income – the level called not so passive…
If you’re interested in just a bit of additional online income…
The very basic passive income would include only a bit of your participation. Let’s say, you decide to become an affiliate of your favorite website hosting (like I’ve done with Siteground!). If you already have some following and readership, you can write a blog post about this, add a pop-up with lead to the blog post and send it out to your mailing list – and the leads will come in!
Will it give you the income you’ve been dreaming about? It really depends. But it will give you some additional income, as long as people read the blog post and sign up for this hosting.
If you want to automatize & outsource marketing and sales…
The midway is perspective #2. When you create a product that requests some ongoing management but you can easily automate or outsource it.
This case can be easily illustrated with online courses. First, you’ll put in at least a month or more to get the course done. It’ll be a lot of your time and energy but you can easily outsource the management and sales. For example, you can hire a social media manager who updates your social media accounts with information about your course. You can also get affiliates to sell your course for you.
Can you see the difference? You’re not putting in an insane amount of time yourself anymore but someone brings in the money for you!
That way, you can create other passive income sources and automate/outsource them as well or do something else that interests you.
KEEP IN MIND: The research is crucial
Getting into creative passive income just because you have an idea on top of your head is not always the best way to approach this.
The outcome could vary. You can either win a blind jackpot or you can just throw your time in the wind… Or you can end up with an okay income option.
Therefore, doing the research is a crucial part of your getting into creative passive income. The more long-term and bigger are your plans, the more in-depth should be your research.
For example – if you’ve decided to work with affiliate marketing, the research is crucial to find the best products to promote.
Let’s say, your audience is a crowd of 30-something food lovers. Being an affiliate for cookware could be a good idea without much of the research, as long as you know your audience.
How to do the research? Make sure to spot your target group. Who will be interested in your offering? Then, ASK THEM QUESTIONS. Just because you think that someone will want, like and need something, doesn’t mean they really do.
Very often, the very best ideas die at the research stage. But don’t give up so easily! As it’s said in Side Hustlers, make sure to review your idea and think through it one more time. Maybe there are some upgrades you can make for it to be more enchanting for your clientele? Maybe you can change your approach a bit? Or maybe, after all, you’re not speaking to the right crowd?!
How to build creative passive income streams?
Online course creation is my personal favorite when it comes to creating passive income.
Here are a few reasons why:
- It has a higher price point so you have to sell less to make more
- It’s a great way to use the skills and knowledge you already have
- Online courses are growing in their popularity, day by day
I have created a full guide to creating your own passive income from A to Z. Turn your 9 to 5 into passive income!
For years, I’ve helped online entrepreneurs to create and market their online courses, blogs and many other creative outlets they’ve built as their passive income sources. Now, I’ve decided to offer all of my skills and experience to you!
If you’re interested in starting any other passive income source, check out these ideas for your first digital product.
And a lot more!