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Top Five Ways to Develop Passive Income There are three primary ways for private practice professionals to generate income:
This article will cover the top five ways that you, as a helping professional, can generate passive income. If you are like most, you depend upon your earned income, and would like to earn more. One problem- your earned income most likely comes from exchanging your time for dollars, and you have a limited amount of time available. Even if you had a full practice, by the time you deduct your business expenses, living expenses, and pay your taxes, you most likely won't achieve your financial goals with what is left over. For this reason, passive income can be the difference between surviving and thriving. You most likely have an untapped gold mine waiting for you to discover it and put it into action. Review the following and note the ones that are attractive to you: 1. Create and market your own products Can you write? Are you a good speaker? Do you have something unique to offer the people in your niche and/or your colleagues? Consider writing a book, a manual, a personal growth program. Consider creating an audiotape/CD. As you exercise your creativity in your everyday work, find ways to capture the gems and create products from them. Once they are out there, they can generate passive income 24/7 for years to come. EXAMPLES:
2. Co-marketing Partnership You most likely have a network of people you communicate with regularly for your business; clients, former clients, prospects, former prospects, colleagues, referral sources, etc. Collaborate to market a service or product that you like and believe in to your network. EXAMPLES:
3. Affiliate Programs Most businesses that are online have affiliate programs. If you like a service or product for your audience, join their affiliate program! It is easy to add affiliate links to your website, e-mails, newsletters, announcements, etc. You most likely refer to them anyway, so with a little homework you can generate passive income from your recommendations. EXAMPLES:
4. Accepting Advertising If you have a website and/or newsletter, you can choose to offer advertising suitable to the people in your niche, either at a flat rate, or for a percentage of revenue. EXAMPLES:
5. Royalties/Licensing for Intellectual Property If you can create a unique product or service that your colleagues would like to use in their business, you can set up a business agreement giving them permission to do so for a reasonable fee. This is a win-win, as you can leverage your hard work, and they can enhance their business without recreating the wheel. This works best when your product or service has a proven track record and you have built a credible brand for it. EXAMPLE:
CONCLUSION If you are reading this on your computer, I guarantee you are able to implement at least one of the above options. While having a website and newsletter is optimal, anyone with e-mail can send an e-mail broadcast with an affiliate link (special tracking URL) to recommend a service or product to people that you know would benefit. If you don't have your own products yet, you can promote others that you use and like. In the beginning, the income from these activities can be quite small. As you continue to build your business, you will be amazed at how quickly this income source can grow. It is quite possible to build your passive income to the point that it covers your living expenses and your earned income becomes gravy- I know because I have done it! It is wonderful to build your business to the point that you serve your
clients because you want to, not because you have to. If you are like
me and you have no plans to retire, and don't wish to rely upon government
programs that may go bankrupt, your passive income can become the source
of your present and future financial security and freedom. |