Diversifying Your Income Streams pt 3 – Creating Passive Income
In the last articles we discussed the need for diversifying your income streams and how adding to your title to expand your career is a way of diversifying your income. Now let’s discuss passive income streams.
With passive income you have the ability to earn money while you sleep, while you’re on vacation, while you’re sick, and, yes, even while you’re working. It’s super exciting! But how do you come up with something that someone will pay for over and over again? Easy! You think of what you do over and over again now that people already pay you for.
As business owners our businesses can often be very personal. This leads us to believe that our main value is in our ability to perform and deliver the work, live. However, as much as your clients love to work with you if you didn’t have the knowledge to perform and deliver the work they would not pay. What knowledge do you possess that is valuable?
This is where it is especially important to be a member of the Association of Virtual Assistants. We are often the worst at seeing the value in ourselves. Think about award shows and speeches. Here is this super talented individual who at one time or another did not believe in their ability and it was the powerful word of a family member, friend, colleague, or mentor that brought out the best in them.
Never forget that just because something is easy for you that it is not extremely valuable to others. Your value and what you can charge is not tied to how easy the work is for you. It should be easy! It’s called passive income for a reason! It’s one way of diversifying your income streams.
What does delivered product look like in passive income? It could be as simple as a checklist, ebook, or full length how to guide. It could be a pre-recorded class that people can pay to watch at any given moment. A how to video guide. An online course that is released in modules or all at once. The point is that you do it once. Give your time to developing it once and then the rest is pure income. You could serve someone at any moment that is most convenient for them anywhere in the world.
In the last article we asked you to add $100 a week to your current income. Then multiply that number by four which gives you $400 and then multiply by twelve to come up with $4800 of extra income a year to diversify your income. (Yes, there are 52 weeks in a year, just keeping it simple here).
Now, let’s add another small number which is your next income stream – passive income. Plan to make $50 a week, for the same period of time. That is $2400.
These are small incremental numbers that have big impacts. By adding two more income streams, one that requires very little of your time and another that requires none of your time you have increased your yearly revenue by $7200! How will you be spending or saving it?
When you join the Association of Virtual Assistants we’ll help you find those other income streams, set price points, support your launch, and tell others about your services. Take advantage of all the privileges and benefits that come with being a member of the AVA!