Unit 1 Of The Passive Income Series
We’re going to be talking about all things passive income:
- When should you use it in your private practice or in your brick-and-mortar business
- When should you spin it off
- How do you do courses, consulting, mastermind groups and affiliate links
What Is Passive Income
You hear this term all over the place and there’s people that do it well and there’s people that do it poorly and slimy. You don’t want to be on the slimy side so let’s talk about how you can do it well.
Passive income is just making money that’s not based on you sitting in a chair or your specific time. So for example I’m a mental health counselor, when I sit in the chair and I do counseling I get a great hourly rate, but that’s not scalable. This is not something that can grow beyond my time, if I want to make more money, I have to sit in the chair more.
Passive income is all about leverage, about being able to scale your business beyond just your own time.
Things To Know About
- It is all about figuring out some automations
- Figuring out things that people will buy or that they’re already buying, and that you can be a part of that process
Generating Passive Income
When we think about generating passive income in a typical brick-and-mortar business, that’s service based, you’ll want to think through a few things. Think about your website and what people are there for already. You don’t want to pull away from your current business.
If you’re a counselor counselor in private practice you want to know what the typical client is worth. Lets say you’re charging 150 dollars per session and your average person comes 10 times that client is worth $1,500. It’s not worth losing that person so that you can make a few dollars on an Amazon affiliate link or a few dollars on a course. Instead you want to look at how you can scale beyond your practice. That may mean that you need to set up a separate website that talks about the tools and the different things that you’re creating.
Ways To Grow Passive Income
Most people are already doing book reviews, there may be things that you’re already recommending. So you can refer people to that specific book. Maybe you write a blog post about why you love a book. You can then you mention how people can implement this. From there they may do more shopping on Amazon, that then allows you to get anywhere from 3-7 percent of what they purchase. Imagine if someone did all of their holiday shopping and then you got a percentage of that.
I wrote an article once that was about the refrigerator that I use in our lobby for drinks so that when people come to their counseling appointment they can have a drink from this refrigerator. I had several people buy that exact refrigerator and I linked to it in the blog post, I received 5% of the cost of that refrigerator just for sending people to Amazon.
If you have a brick-and-mortar business and you’re teaching people all about parenting for example, what are the things that people need to know before, during and after they do counseling with you. It’s important to think through how you can enhance those services. This can be a passive income stream, where people on a national or international level may pay to go through that course. You can use things like Teachable or Udemy to launch these courses outside of your own website and just have links from within your website.
One-on-one consulting and Mastermind groups
There may be people who want to know how you do what you do. If you have a brick and mortar service based business, there may be one-on-one consulting options and mastermind group options that you could launch. When you do this if we’re talking passive income, you don’t want to just switch from you sitting in one chair to sitting on a screen. We know that there’s going to be some time that goes into consulting or into a mastermind group, but you want to make sure that you have additional services that are part of this that builds a higher amount of money for those consulting clients.
In The Upcoming Units In This Series
We’re going to continue to get into all of this and talk about how you:
- Build membership communities
- Grow courses
- Grow consulting and mastermind groups
- Affiliate links and sponsorships
Mindset Of Passive Income
At its core you need to be solving a pain. You need to be thinking about what the thing is you can help people with. It’s about service, it’s not about just getting people to click on a link. You want to make sure that you’re actually offering something that’s helpful for people.
When you’re creating your passive income streams you want to use the acronym CARE:
Create your product or offering this – could be an online course or one-on-one coaching that has extra upsells.
Then we want to start to automate as much of this as possible using technology and using people. We know that technology and people can take everything off your plate. Automate it as much as possible. You only want to be doing the things that only you can do.
You want to be giving feedback to the people and technologies.
Look at how you can enhance the experience of the person going through this. How do you make it easier, how do you make it more effective.
Investigating vs. Curating
What you should really be thinking about is whether you are investigating or curating. Most people go online where they can get all sorts of things for free. They’re investigating as they’re going to all these different websites. What you’re doing is you’re actually curating the best of the best so that people can say ‘I don’t need to look around anymore, I trust this person and I’m going to go through their affiliate link/I want to go through their course/I’m going to go through their blog and their podcast so that I can continue to grow and I can do it faster because they have curated it for me.’
This free PDF walks you through exactly how to grow passive income. You will be able to apply it to your business and take massive action, it’s a great timesaver. We also have over 30 other resources that are totally free that will walk you through how to grow your business.
Joseph R. Sanok, MA, LLP, LPC, NCC
Joe Sanok is an ambitious results expert. He is a private practice business consultant and counselor that helps small businesses and counselors in private practice to increase revenue and have more fun! He helps owners with website design, vision, growth, and using their time to create income through being a private practice consultant. Joe was frustrated with his lack of business and marketing skills when he left graduate school. He loved helping people through counseling, but felt that often people couldn’t find him. Over the past few years he has grown his skills, income, and ability to lead others, while still maintaining an active private practice in Traverse City, MI. To link to Joe’s Google+ .