Plus, 8 Things a Passive Income Can Do For Your Business
We all dream of making passive income, I mean who wouldn’t?
But exactly what will a passive income cash-flow do for you and your business? How can it literally change your life?
This is definitely something to think about. You need to know and truly understand the reason(s) why you want a passive income.
Also, the great thing is that passive income for women cannot be easier than it is today – with thanks to the Internet!
So with all this in mind, this is what we’ll talk about today.
- First we’ll talk about the 8 things an online passive income can do for you and your business.
- And then we’ll take a look at the 7 best passive income ideas for women in business.
- Adding passive income streams to an existing business.
- Creating a whole new passive income business model.
- What does an online passive income business look like?
So let’s look at all of this and discuss what a passive income ‘cash flow’ can do for you and your business.
Coaches | Virtual Assistants | Web Designers etc.
Beauty | Crafts | Mommy/Parenting | Travel | Food | DIY etc.
What Exactly is a Passive Income?
A quick look Online to see the definition of meaning which best describes ‘passive’ in our particular case is:
So in our case, a passive income means you don’t have to be consistently active in the running of this stream of income.
Many female entrepreneur’s earn their income via a service-based business where they are actively trading time for money. If you’re not active and don’t show up then you don’t get paid.
Whereas with a passive income, it will keep running and working for you passively in the background 24/7 without you having to see any clients or even go near your computer for a month.
Active Income = Trading time for money
Passive Income = Income received automatically 24/7
So if you’re a coach, web designer, virtual assistant, freelance writer, offer 1-on-1 services etc., then you fall into the first category (active income) and you may wish to consider adding a passive income stream alongside your main source of income (I outline the benefits of this below).
Now, as you and I both know nothing is an easy-ride if it’s worth having, and a passive income is no exception. You have to put in the hard work up-front in order to reap the rewards and benefits for months and years to come.
I’ve been creating an income from selling digital ebooks for over ten years now and it’s this bit of the above sentence that always keeps me going when I start creating a new passive income cash-flow:
“reap the rewards and benefits for months and years to come”
Yes it’s bloody hard work at the beginning and I often-times want to give up writing that ebook, BUT I don’t because I know that once its done, its done. And I still make monthly sales from ebooks which I’ve written five years ago.
So whilst putting the effort in upfront but also understanding that you’ll be collecting the returns passively for many years to come, is certainly a good motivator to put in the required work and get that passive income stream up and running.
8 Things a Passive Income Can Do For You
So now you know what a passive income is in respect to you, a female entrepreneur, let’s look at how a passive income can benefit both you and your business.
A passive income stream once set up, has the potential to makes sales for your every single day – on autopilot.
Passive income streams are the solution for the
overworked and overwhelmed female entrepreneur
Why? Because it allows you to have “margin” in your business. Margin is space; the necessary breathe of air you need in your business so it doesn’t overwhelm your life.
And that’s a very welcome ‘margin’ to have, right?
When you have a passive income margin in your business you can:
- Have peace of mind knowing you’ll still have an income coming in if you need to take some time away from your business (e.g. holiday, sickness)
- Alleviate stress, being overworked and overwhelmed.
- Feel free to turn down potential clients if they aren’t your dream client, allowing you to be more choosy.
- Charge higher rates; because you don’t need to take every possible client that comes your way.
- Take some time off with your family, knowing that your business won’t suffer.
- Only work the hours that you choose.
- Have more freedom to do what you enjoy doing the most.
- You can take the time necessary to scale and grow your business.
How to Build Passive Income into Your Business
Now you’re aware of the benefits of having a passive income, let’s take a look at the different ways you can include passive income in your business.
When it all gets boiled down, there are two main ways to earn a passive income online:
- Affiliate Marketing: Earn a commission by selling other peoples’ products.
- Digital Products: You create and sell your own digital products.
Let’s take a look at these in more detail.
As I briefly mentioned above, affiliate marketing is where you promote other peoples’ products and if someone purchases that product via your coded affiliate link, then you get a commission for that sale.
Think of Avon as an example as it works in a similar way. The Avon rep recommends various products to her customers, and if they purchase any of them, then the Avon rep gets a commission from the sale.
The key to being successful with affiliate marketing is to make sure that you recommend a product or service which is very tightly related to your own business niche. It must also be something that your visitors or customers want or need and will benefit extremely highly from it.
Best Ways To Recommend Affiliate Products
The easiest way to promote affiliate products is with banner advertising on your website. However, this is not really the most effective way, but it is the easiest.
So you can either put any banners ads – which you get from the merchant once you’ve joined their affiliate program – in the sidebar of your website or blog, and that’s it. Anyone who visits your blog will see these banner ads and may be compelled to click on them for further information.
If they purchase the product from clicking through, then you get a commission for the sale. However the conversion rate, from clicking the ad through to purchasing the product, is very low with this type of promotion.
But there is a (slightly) better way…
1) Affiliate Resources Page
If you have not done already, you could set up a Resources Page on your website where you list all the resources which you use to run your business.
This could include your:
- Email service provider; Aweber, Mailchimp, ConvertKit etc.
- Hosting provider; SiteGround, GoDaddy …
- Website template; Thrive Themes, Divi …
- Graphics creation; PicMonkey, Canva …
So from here you would:
1) Sign-up to the affiliate programs of those services.
2) Grab your affiliate links for each program.
3) Create your Resources Page making sure you include your affiliate links, and
4) Display your Resources Page link on your website in your Menu bars.
As I said above, this isn’t the most pro-active way to promote affiliate products to earn affiliate commissions, but you could put up banners and do an affiliates resources page with the chance that you might make the ad-hoc affiliate sale.
2) Reviews / Tutorials
The best way to earn a commission through affiliate marketing is either by writing a review or a ‘how to’ tutorial around a certain product.
I’m in favor of the tutorial strategy as I feel that reviews don’t hold much weight with the reader (they will think your biased because you’re after the affiliate sale).
So if you go down the tutorial route, the tutorial should be around the 2,000+ word mark for it to have any substance and be of immense value to your audience.
This will probably take you around 2-4 hours, but once the hard work is done up-front, then you have created something which has the potential of being a nice little passive income stream on your blog.
Tell a story of how you use this product and how beneficial it is to you and how it also can be really helpful for your readers too. Include pictures of the product and sprinkle text links to the product too throughout your tutorial (or review).
Make sure you have your affiliate link embedded into the links (both graphic and text links) or you won’t get any affiliate commissions.
Finding Affiliate Products to Recommend
To find affiliate products think about what you are using now, and chances are your readers would like to use that same product or service too.
For example, if you use ConvertKit, Aweber or Mailchimp as your email service provider, then sign up to their affiliate program, write a tutorial on how you use Mailchimp (for example) and include an affiliate link.
- Beauty bloggers would review and recommend beauty products.
- DIY bloggers would do tutorials and recommend various art/décor/craft products.
- Food bloggers would recommend certain cooking products.
- Travel bloggers would recommend books, travel guides, travel bags, accessories etc.
- Fitness coaches would do tutorials/videos on exercise and recommend a piece of exercise equipment, gym clothing, fitness accessories etc.
… you get my drift I’m sure!
All you need to do is type keyword + affiliate program into Google and a list of companies with affiliate programs will pop up.
beauty products + affiliate program
travel bags + affiliate program
cross-trainer + affiliate program
wok + affiliate program etc..
Tip: Amazon is great as a affiliate because not only do they sell everything, they are a trusted brand and website and people do buy from Amazon. This means that your conversion rate will be higher using Amazon than recommending products from a website nobody has heard of before.
Plus… If people land on Amazon through your affiliate link, they sometimes also buy non-related items too of which you also get a commission on – cool eh!
Affiliate marketing networks are another great affiliate program resource as when you sign up for the network, you can access to hundreds of affiliate programs in dozens of different niches.
I’m a member of two and I recommend you join these too as they sell a massive variety of products and services:
I absolutely love affiliate marketing as I believe it’s the easiest way to make passive income online with no hassle involved!
I highly recommend you give this a try before you start….
Selling Your Own Digital Products
Once you have a good amount of traffic and are making some affiliate sales, it’s time to start creating your own digital products.
But, only create a product after you:
- Know exactly who your ideal customer is, and
- Know that you can solve a problem of theirs with your digital product.
Once you know that you can provide an answer / a solution to your target markets’ problem, you then need to decide in what format you want to deliver your solution.
To help you, here’s a run-down of the different types of digital products which you can create and sell.
3) Create an eBook
‘How To’ eBook
The easiest digital product to create and sell is a simple PDF ebook. If you can write blog posts which your readers enjoy, then you can create your own digital PDF download. It’s soo easy!
I’ve create many an ebook over the years and this is how I made my passive income from a couple of past blogs of mine.
Quick Steps To Create Your eBook
#1 Decide on your topic
#2 Type out your chapters
#3 Fill in each chapter and finish off your book.
#4 THEN decide on your book Title.
#5 Turn your document into a PDF document.
#6 Upload it to your hosting server or Dropbox/Amazon S3.
#7 Decide on a suitable price.
#8 Decide on an ecommerce platform. This will take your payments and automatically deliver your ebook.
#9 Put a link to a sales page on your blog.
#10 Tell everyone about it!
4) Printable PDFs
Printables are very popular and you can easily sell them from your website or Etsy store.
They are one-page printables which help the customer with organization in a certain area of their life.
For example, you can create a printables in the subjects of:
- Cleaning organization
- Closet organization
- Social media marketing
- Fitness training
- Meal planning and preparation
The list can go on and on.
In fact, Laura from I Heart Planners has made a whole business out of creating printables.
How To Create Printables
You can create printables in a variety of ways but deciding on which way is dependent on what platform you know the best and what you feel most comfortable using.
You can create printables using:
- Google Docs
- Adobe Illustrator
I’ve created printables in Word and Powerpoint because I’ve used Word for many many years and I’m so used to it.
However Laura from IHeartPlanners creates hers in Excel because she used to be an Engineer and used Excel extensively in that job.
Create your printables in whatever platform you feel the most accomplished in.
How To Sell Printables
It’s really easy to sell printables automatically from your website.
I’m a big fan of SendOwl and all you do is upload them into your SendOwl account and then put the coded Buy button in your website. Everything is done automatically for you after your initial SendOwl setup.
Of course there are other automated digital product delivery platforms such as eJunkie and SamCart, it’s just that I simply love SendOwl which is why I recommend it above any others!
5) Create Your Own Course
Online courses are all the rage right now especially with the involving simplicity of creating video’s and housing your course on platforms such as Teachable and Zippy Courses.
I’ve bought two courses over the last 18 months which cost $297 each, which seems to be the norm for Online courses. Both of these courses are hosted on Teachable.
Can you see the potential of how much you can earn with your own course priced at $297? Even if you only sold two per week that’s $2,376 per month!
Choose Your Course Platform
You need to chose a reliable platform to house your course.
There are many available now, but the main popular ones are:
All these course platforms have built-in shopping carts and sales pages so they really are an ‘all in one’ solution.
Teachable are giving away a ton of free resources to help first-time course creators get their course online. So take a look at this free information to learn exactly what it entails to create and sell your own course online.
As you can imagine, a LOT of organizing, planning and prep work has to go into a course with a price tag of $297. But believe me, a lot of people are willing to pay this if you have something valuable to offer and share.
From the courses I’ve purchased, they normally consist of 7 Modules and each Module showing 10-20 minute short video tutorials. So you could have 6 Modules consisting of 5 mini video tutorials (10-20 minutes) within each Module. So say an average course has 30 video tutorials at 15 minutes each, this would average around just under five hours worth of video tutorials.
You would probably want to include some handouts, worksheets, checklists etc. to go along with your modules.
So yes, it’s a lot of hard work up-front but once it’s done you’ll have an amazing passive income ‘asset’ which will bring you an income for months and even years to come.
6) Monthly Membership Subscription
How would you like to earn a passive ‘recurring’ income‘?
You cannot get past memberships for recurring payments.
Imagine, every month you know that you’re going to have a few hundred little payments going into your bank account like clock work. This is a great way to earn a monthly passive income to an existing photography business.
What could you offer on a monthly subscription basis?
- Meal plans and shopping lists
- Photography stock images
- Monthly fitness videos
The list can go on.
For example, if you didn’t fancy the idea of writing an ebook or creating a video course, then you could package that same knowledge up and instead of offering it in an ebook or video format, you could offer it as little mini lessons which go out on a monthly basis to your subscribers.
It would be the case of writing up your lessons and saving them as PDF documents. Uploading the PDFs onto your hosting server (or Dropbox, Amazon S3) and then sending out an email (which is automated) to let your subscribers know about their latest monthly lesson to download.
For the case of stock images, you would save them into a zip file and again, upload them onto your hosting server, or something similar, and send them to your subscribers on a monthly basis.
You can do this in three ways:
- Hook up your email service provider (e.g. Aweber) and Paypal account to talk to each other about accepting payments and adding subscribers.
- Purchase a membership site software/plugin and house all of your stock images and/or photography lessons PDFs within the membership. Then let the membership software send out monthly emails to your subscribers to let them know of that month’s download (must integrate with your email service provider).
Or, the easiest and cheapest option would be to
- Use a digital delivery service such as… SendOwl! Yes, SendOwl also delivers monthly subscrptions and collect monthly payments for you too.
You wouldn’t charge a lot for this subscription, something along the lines of $7-$15 per month. This is loose change in most people’s pockets and they wouldn’t miss this amount per month.
So for example, say you got 200 subscribers each paying $10 per month for your meal plans, that’s $2,000 per month!
Also, most people LOVE the thought of getting a new meal plan/video/printable each month.
7) Starting Your Own Membership Site
This passive income idea is probably the most in-depth and initially time-consuming, but it’s the most stable and robust passive income business model there is.
It’s so much more financially stable to acquire a customer as a membership subscriber and receive a monthly payment from them for months and years to come, as opposed to a one-off sale for a single product.
With a membership site you don’t have to continuously keep marketing your membership because you would work on the retainment of your current members. As with a one-off product, such as an ebook for example, you would have to continuously keep promoting or recommending this product just to get a one-off sale.
It’s a myth that people only stay in memberships for about 3 months and then leave. If you have your membership site set up in a specific way to help and nurture your members AND guide them through a success path, then why would they want to leave after only 3 months?
By giving your members a clear path which shows clarity and a clear vision of what they are going to learn, how they are going to get there, and with added support and encouragement from you (and your team), then you have a very strong, sustainable membership business model.
The monthly payments for these types of membership sites typically range anywhere from $27 to $97 per month, obviously depending on the content and level of support inside the membership.
So if you took the middle range of $47 per month and times that by 1,000 members (which is not hard to achieve), then you’ll be laughing $47,000 PER MONTH all the way to the bank whilst simultaneously doing a little happy dance!
Membership Site Plugins
If you use WordPress then there are several plugins you can use to control and manage your Membership. I used WishListMember for my membership site and highly recommend it, but there are others such as MemberPress and MemberMouse.
Another thing to note is that if you do want to start your own membership site then I would either put it on a sub-domain or on a different domain altogether. You want to keep it as separate as possible from your main website or blog.
I could go on and on about setting up a membership site, but this is a whole other blog post in itself. So for today, I’ll leave that little seed which I’ve just implanted into your mind to mull over if setting up a membership site for a passive income is for you.
If you want to learn more about memberships sites, then I thoroughly recommend reading through the Membership Guys Blog. These two (girlfriend and boyfriend) are the experts in this field.
So those are the main and best passive income ideas for you to make money online.
I thought I should also mention two other ways to make passive income online:
- With an Esty store, and
- Creating an automated email sequence.
8) Digital Products on Etsy
Etsy is mostly well known for selling craft-like merchandise such as hand-made jewelry, bags & purses, clothing etc. But did you know that many Etsy sellers are selling their own digital products?
The most popular type of digital products selling on Etsy, which springs to my mind, are printables. Printables on areas such as finance & budgeting, household chores checklists, lifestyle planning etc. (as mentioned above).
There are other digital products you can sell such as hand-made stationary, wedding stationary, printable wall art etc.
>> Etsy Store
9) Create a Passive Income Sales Funnel
A passive income funnel is where you leverage the power of automated emails to make sales of your product(s), or affiliate products on a consistent basis 24/7.
You’ve probably heard of a ‘sales funnel’ before, well in this case we’re calling it a passive income (sales) funnel because you’re not trying to capture leads or new clients (to offer your services), you’re going to sell your own digital products passively via your automated email funnel (in a non-sales’y way!)
This is the automated backbone of my passive income system which I teach in my course.
You set up these funnels once, and it then it makes sales for you every single day – if you get a healthy, constant supply of new subscribers each day that is.
All email service providers have an automated email sequence setup, so you would simply write about 7-10 emails, pop them into your autoresponder and then sit back and let the passive income sales start coming in!
I use MailerLite. It’s free up to your first 1,000 subscribers.
But What Information Should I Sell?
Since you already have an existing business (or are thinking about starting one), then the next logical step would be to produce a digital product that is an extension of what you already offer.
This can be done in two ways.
Example Service-Based Business:
#1 You are a coach in holistic wellbeing and are fully-booked with 1:1 clients but feel frustrated (and overwhelmed) because you don’t have any more hours to take on extra clients.
Solution: Create a self-study pack such as an ebook and/or video series which covers the main lessons that you teach. You can then sell these digital products (via your ‘Product Suite’) to your visitors whom you cannot take on as personal clients.
#2 You are a coach in holistic wellbeing and are fully booked with 1:1 clients but they want more from you after their three month coaching program with you has finished.
Solution: Create an advanced ‘follow-on’ course or even a membership site to help further serve your already happy clients.
There’s no right or wrong way to do this. Just think how you can best serve your potential and existing clients/customers by packaging up your knowledge into different modalities of digital products and sell it to them via a Product Suite and/or a Passive Income Funnel.
So in summary, here are the seven best passive income ideas for women in business:
- Affiliate Resources Page
- Affiliate Reviews/Tutorials
- Monthly Subscription
- Monthly Membership Site
- Etsy Store
- Passive Income Funnel
Have I given you some food for thought about creating your own passive income?
Just remember, you can incorporate some of these into your own current business as additional revenue streams. There’s no need to start new websites, blogs or open up a completely different business niche.
Keep things simple for yourself by gently introducing one passive income cash flow at a time. Soon you could have a whole (digital) Product Suite displayed on your website earning you multiple streams of passive (recurring) income 24/7.
So if you think that you would enjoy creating and selling digital products as a business venture, then I invite you to watch my free workshop on how to create passive income with digital products and automation…
Good luck and let me know how you get on!