UWR 035 The realities of passive income
In today's episode, I'm speaking about the realities of passive income. Passive income, and the need to create it, has become a buzz phrase for online entrepreneurs. Except that most business owners speaking about passive income are often not speaking about anything that is in fact passive. The definition of passive as an adjective is accepting or allowing what happens, or what others do, without active response or resistance. That therefore means income, or rather revenue coming to you without your active involvement. Except that all revenue requires some kind of active involvement to flow to you. It requires promoting on social media, in marketing, often meeting advertising spend, campaigns needing managed and tweet. These things are active, not passive at all. Yes, there are assets we can create in our business where we create them once and then they are delivered multiple times, meaning we don't do not need our own personal involvement or the involvement of our team to deliver, but they are still not truly passive. They are not set and forget. They need tracked and monitored. Digital products which you create once and can deliver through tech are great, but let's be honest, they are semi-passive. They need promoted and monitored. Books which you write once can be bought by anyone at any time, but again they are semi-passive. They usually need promoted. Prerecorded webinars, again, semi-passive. They need promoted in some way. You get where I'm going with this. So don't fall into the trap of thinking that a thing that's going to save your sanity is to make your business income into passive income. Yes, these things I have mentioned, they are great as part of an ecosystem of products and services and should 100% be added to the mix, once you've got your one-to-one and group programmes before me for you, that is. They are additional revenue streams on top, but they are not set and forget at all. No revenue stream in your business is. While I'm covering off the ecosystem of your products and services, I am a firm believer that you need to get one area performing incredibly well before you introduce a second. My philosophy is that each revenue stream in your business needs to be hitting at very least a 100K a year in revenue before you even think about introducing a second revenue stream, then that one again needs to be reaching at the very, very least a 100K before a third is introduced, and so on. I believe that most businesses need to stack up their services where they offer one-to-one services first as their initial a 100K revenue stream, then you can add group and then you can add digital products. The reason is that you learn so much about your ideal clients when doing one-to-one work. You learn so much about your own signature system that you want to teach and develop, and only then can you understand truly how to support groups. Once you have one-to-one working, the next natural progression is to move onto group programmes, since you can start leveraging your time better that way and you are now much clearer on the support your clients need in order to get the results you promise. Only then, once you have your group programme working well and you're making at least a 100K year on that should you be thinking about the digital products. These are low priced things, and in the early stages they don't give you much bang for your buck in your business, so leaving them until this stage makes a lot more sense than trying to promote in the early stages when your audience is smaller and you would need to be seen by hundreds, if not thousands, to reach your revenue goal. I hope that this episode has been useful in giving you some things to think about in relation to passive income. I also want to invite you to step into the Uncover Wealth Community. This is my private community on Facebook. You can search Uncover Wealth Community in the Facebook search bar or go to annetteandco.co.uk/fbgroup.