Digitally She Does It Podcast

EPISODE 76: 3 easy ways to create passive income in your business

February 07, 2024 Karen Davies Season 1 Episode 76
Digitally She Does It Podcast
EPISODE 76: 3 easy ways to create passive income in your business
Show Notes Transcript

In this episode, I am excited to dive into the world of creating passive income in your business. Throughout this episode, I'll be sharing my own experiences with developing multiple income streams and the impact it has had on my business, especially during unpredictable times like the recent challenges posed by the COVID-19 pandemic.

Throughout this episode, I explore 3 easy and effective ways to create passive income in your business. I provide valuable insights and practical strategies to help you capitalise on the potential of passive income.

This episode is an essential listen for business owners and entrepreneurs looking to expand their revenue streams, achieve financial stability, and create a diverse portfolio for long-term success. Tune in to learn how you can unlock the potential of passive income and take your business to new heights.


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Karen Davies [00:00:00]:
Hello, and welcome to the Digitally. She does it show. This is episode 76. And in today's episode, I'm going to be talking about 3 easy ways to create passive income in your business. So let's jump right in, and let's get started. Welcome to the Digitally. She does it show. I'm your host, Karen, and I'm here to lift the lid on what it actually takes to creating a successful business.

Karen Davies [00:00:31]:
If you are an ambitious creative ready to build a business on your own terms and without compromise, then this podcast is perfect for you. With my award winning approach to marketing and expert knowledge in creating online courses, this show will leave you feeling inspired, energized, and ready to bring those big dreams to life. Join me each week for a dose of motivation and marketing know how along with actionable step by step strategies to help you accelerate your business' this growth. So let's dive in, and don't forget to subscribe to all my upcoming episodes which drop every Wednesday. Hello, and welcome. Thank you for joining me today. I'm your host, Karen, and I really appreciate you hitting the play button to listen to today's episode. Now in today's episode, I'm gonna be talking about a really exciting topic.

Karen Davies [00:01:25]:
A topic that I think is very appealing too many entrepreneurs and business owners, and it is all going to be about creating passive income in your business and how to get start it. And I'm going to be sharing 3 easy ways to start bringing passive income into your business so you can make that additional revenue. Now I love talking about this topic. Over probably the past, I would just say, I started probably in 2018. I very early on in my business, I made the decision that I was going to build different revenue pods because I've always had this belief that we should not be putting all of our eggs Into 1 Basket. And I do this in my personal life as well. My husband and I, we have property that we rent. We have other means of bringing money into the house.

Karen Davies [00:02:26]:
And so I replicated this in my business because I very much believe that as entrepreneurs, we have the ability and the means to create the life that ultimately we want, but, of course, that takes money. And a lot of what we're chasing is as well freedom. And the way we can really truly build freedom into our lives is by making sure that we are financially abundant, that we have money coming in from different places so that we're not just relying on one avenue. And this is where passive income comes in because there are many ways to create passive income. And I know this is something that many entrepreneurs are interested in because what you want to be doing is making the most of your expertise and not finding yourself caught in that trap of constantly having to trade your time for money because that's not going to bring freedom into your life. Trading time for money keeps you trapped because you can only make money when you are selling your time. And time is probably one of the most important things that we have available Tuas. And if you're anything like me, you're probably all thinking there's never enough time in the day and there is.

Karen Davies [00:03:55]:
It's just we have to be smart about how we're spending that time. And if we're only spending it serving our clients then our money the the money that we can then earn is always going to be limited. There's always going to be a ceiling. And this is why I think looking at ways to bring in additional revenue is smart because that will start to bring you freedom into your business. Because if you're making money in other areas, then you don't need to rely so much on selling your time. And it's how you can then go and scale your business because you're bringing in additional revenue. So in today's episode, I wanna break this down. I wanna talk about this, and I'm gonna share with you 3 easy ways to create passive income in your business.

Karen Davies [00:04:51]:
So let's start by just breaking down what passive income is and why it's important. Now passive income is essentially money that is earned with minimal effort or ongoing work. So you create something once, and then you put it out there, and then you sell it on repeat. Now I'm not going to sit here and say getting sales is easy because I think with anything, there needs to be a level of work involved and effort in order to get things going. However, once you have a strategy in place. Then you can then make money whilst you sleep which which, let's face it, we we all want. So that's why it's important because it helps to bring in that additional income so that you can be enjoying your time with your family or doing whatever hobby you enjoy doing, and you've got money coming in whilst you're doing that so you're not having to sit there chained at your desk in order to make money. We don't want that.

Karen Davies [00:06:06]:
That's too exhausting, and it just leaves leads to burnout. What we wanna do is we wanna make it easy for ourselves. And so with anything, there's always upfront work. And if you see things out there telling you that you can create 6 figure, you know, sort of amounts without having to do anything, then I would avoid them at all costs because the reality is that's not going to be the case. If you are looking to create success in any areas of your life or in business, then effort needs to be applied to it and focus needs to be spent on it so that you can get it to where it needs to be. But the thing about creating things in your business that lead to passive income is that you only build it once and then you sell it on repeat. So the model is very different, rent, and that's the point. It becomes easier with time.

Karen Davies [00:07:07]:
So in my own business, I have multiple income streams that I have created that bring in money each month based on sales, but I'm not having to do much with that. It's kind of money that comes in, and I'm just doing whatever I do through the month. Which is great because it means that whatever happens, I know I have a certain amount coming in every month based on the things that I'm selling. So for me, this has been quite instrumental change in the way my business is operating. And so that's why I sort of shifted into this space of teaching because I could really see how valuable how valuable it is and what a game changer it is as well. So for me, I spent a lot of my time focusing in on making sure that I am bill bringing in that passive income alongside the services that I provide and and and the products that I create as well. So I don't just focus on 1 area, but what I do feel is that it's really important to have different ways to earn money so you're never reliant solely on one way. I think the pandemic is a really great case study here because when COVID hit, many service based businesses stopped operating it because they couldn't see clients in person, and they couldn't deliver the services that they were delivering in person on a one to one basis any other way because they didn't know how.

Karen Davies [00:08:51]:
And then what happened was that income stopped coming into the business because those services weren't able to be delivered. And so I think that is a prime example of not knowing what's around the corner, not knowing what's going on in the economy or the greater world, but having whatever is going on affect your business. And we want to make sure that the business that we're building today is gonna stand on its own 2 feet tomorrow. And so the way we can do that is making sure that, as I said, we're not putting all our eggs in 1 basket. We're making money in different areas, and we're bringing in that passive income so that we know at the start of the month, you have x amount of money coming in. You know you're gonna be okay. You know you're gonna be able to keep the lights on in the business because that money is guaranteed. So that's why passive income or creating passive income in your business is really important.

Karen Davies [00:09:54]:
So if you do anything this year in terms of developing your business, I would advise you to look at ways in which you can create a passive income stream in your business that's going to help you going forward. Okay. So I wanna just touch on 3 easy ways or relatively easy ways to create passive income because you're probably sitting there thinking, well, that's all well and good, but, actually, how do I go about doing this? How do I get started? And how is this going to work for me? So I really wanna dive into that. And then hopefully, by the end of this episode, I've given you something that you can walk away with and start thinking about that you can then bring into your business. So the first thing that I want you to think about is in your business, if you are a service based provider, meaning you provide a service to a client, more or less you work with them on a 1 to 1. You most likely have a system, a way, a process, whatever that be, of working with that client. And I am sure that if you've been doing it for a while, you have created resources in your business that are helping you to deliver that service. So what I want you to do is I want you to really think about this and think about the things that are helping you to deliver the service that you're delivering or helping you to be productive or streamline your processes.

Karen Davies [00:11:30]:
And I want you to start thinking about if you can take that or take those resources and create templates from them. The digital resource market is huge. So many people are turning to purchasing templates and digital resources because they understand that their time is valuable and they don't necessarily have the time, the skills, or the expertise to create the things that they need to have in their businesses. Having said that, it doesn't just have to be resources for other business owners. It could be resources, guides, journals, templates for non business people as well. There are things that people will buy because, as I said, it's going to save them time. So things like checklists, cheat sheets, ways to streamline processes that's ultimately going to save people time. So think about what you have in your business that you are using on a day to day basis and how you can take that, turn it into a digital resource that you can then sell online.

Karen Davies [00:12:48]:
The great thing about creating digital resources is that there are lots of benefits from doing so. You have low overhead costs. So unlike physical products, digital downloads don't require any inventory. It does they don't require storage, and you don't have to pay for shipping costs as well. So if you had a product based business, you would have to front up a lot of those costs, whereas with digital downloads, you don't. You create it once and then you sell it, which means that you can create a higher profit margin without putting in a lot of upfront investment. So that's really worth considering. The other thing is scalability.

Karen Davies [00:13:30]:
Now digital downloads can be replicated and sold an unlimited amount of times without you having to add to your production costs. So this is going to allow you to scale and also to reach a global audience as well. So it means that you can sell outside of your backyard, and I think that's really important, especially in the world we live in. We have all of these tools available to us. Let's utilize them, let's expand our reach and sell to more people, get more eyeballs on your content, and get those sales. The other thing with digital downloads is that you have flexibility to create a wide range of products. So you might start by creating some templates, but then you can expand by creating ebooks, printables, courses, graphics. Whatever your field or profession is, I'm sure there is going to be things that you can be creating that you can then sell over and over again.

Karen Davies [00:14:35]:
And this versatility is going to enable you to cater to different customer needs and their preferences as well. So if you come across customers that have a real need for a certain type of template, you can create more of those templates. So I have an online shop where I sell digital resources and templates to creative entrepreneurs. People that are looking to create online courses and memberships and digital programs and need templates and resources that's gonna help them save time. Now the thing that I love about this is that the fact that I get freedom to be creative, and I get to share my expertise in various different formats, and I love that. I get to be creative with the content that I'm putting together and the way that I share it to my audience. And so digital products are a viable option in your business if you have things that you're already using. If you can save somebody time, then you can sell them what they need because we're always looking to save time.

Karen Davies [00:15:45]:
Not everybody is a graphic designer. Not everybody knows how to create beautiful visuals for Instagram. So there's an entire market out there that just focus on creating visuals for the Instagram platform, and they make really good money from doing so. So what can you create in your business that you are using? What can you create that you can sell to others who are looking to save time. Who is it that you can help by selling them a digital download or resource. So really do think about that because that in itself is a great way to bringing passive income. Okay. So the 2nd option of creating something to bring in, passive income is by creating an online course.

Karen Davies [00:16:38]:
Now I talk about this a lot because online courses are game changers. They can literally change your business. It is the only business model that's really going to help you truly scale your business and bring in money that's gonna make a difference. So the thing about digital downloads is that you sell digital download downloads for a small amount of money. So you're relying on selling volume to make large sums of income. With online courses, you can sell an online course at a greater price point. So rather than selling something for a relatively low amount of money, you can create and sell an online course for 200 pound, 300 pound. It all depends on the level of value that is provided in your course.

Karen Davies [00:17:36]:
So if you are selling 200 pound over and over again, that is going to soon add up. So depending on what your financial goals are and the kind of money you wanna bring in your business, online courses are a great way to scale your income, so they're definitely worth thinking about. Now the benefits that come with creating an online course is that, 1st and foremost, it is a lucrative revenue stream. You can sell your expertise and your knowledge to a wide audience without the constraints of physical location or time, which is going to give you that passive income. So people can take an online course wherever they are, you do not need to be there in person to deliver it. They can work through it in their own time, in their own environment, at their own pace, and that is one of the benefits of going down the road of creating an online course. Again, you've got scalability. Once you've created it, it can be sold repeatedly to an unlimited number of students without you having to incur additional costs.

Karen Davies [00:18:48]:
So this is going to allow you to reach a global audience and ultimately maximize your earning potential. Online courses are great for establishing authority. If you can create an online course in a an area that you're expert in that is going to say a lot about you, who you are, and what you bring to the table. Because developing and teaching an online course is going to showcase your expertise in your field, and it's going to position you as an authority figure which is going to enhance your credibility, and it's what's going to help attract new clients to your business. And the thing is this is what can differentiate you from your competitors. Because if your competitors are not doing this, then this is something that you really need to be thinking about. The other great thing about creating online courses is is that you get to serve a larger audience. As a service provider working 1 to 1, you you are limited in numbers.

Karen Davies [00:19:50]:
You have a limited capacity, limited time allowance if you like, and probably a limited inclination to wanna work with so many people at a time. So the creating online courses removes that. It needs that capacity allowance so you can deliver your online course to as many people as what you want to deliver it to. If you're not you're not restricted by capacity. And, also, it enables you to deliver it to a more diverse audience as well. There's also flexibility in the learning method. So online courses gives you flexibility as the teacher, but it also provides your students with flexibility as well. So as I said earlier, they can access the thing that you've created at a time and in a place that suits them so they can fit their learning around their busy lifestyle.

Karen Davies [00:20:56]:
And for you, this means that you get to spend less time, having to be somewhere in person, and more time focusing in on areas that matter to you the most. And, also, it's a really great way to diversify your revenue stream. So as I sort of spoke about earlier, we don't want to be putting all our eggs in 1 basket. We want to be building out different revenue streams in order to support our this is and creating online courses enables you to create a business portfolio that is diverse, and it's going to give you stability because if you know what you have coming in through all your different pots, then that's going to help you feel more secure and stable in your efforts as well. So I think creating an online course is a no brainer. It's only gonna lead to increased revenue. It's gonna be able to it's gonna help you to expand your reach. It's going to enhance your authority, and it's going to give you flexibility so that you can actually focus on the things that matter to you the most.

Karen Davies [00:22:06]:
So, yes, there is work involved in creating the online course, but as I said before, once you've done it, you then focus on selling it. And there's lots of different ways to do that, but it is a no brainer, and it's a great way to really scale your business. I have online courses in my business. They have made a huge difference to my business. I have an online course that teaches people how to create online courses. So if you're interested in that, head over to www.pinkhyphenlemondigital.com. I'll pop the link in the show notes, but if you are thinking about creating an online course, then check out my online course, the profitable course road map and start thinking about creating your online course, and I promise you it will be a game changer. Okay.

Karen Davies [00:23:05]:
So my 3rd and final option is affiliate marketing. Now affiliate marketing involves promoting other people's products or services and then earning a commission for each sale that is made through your referral link. Affiliate marketing has become really popular with digital marketers who stand that by strategically partner partnering with other companies and brands that align with their niche, they can generate passive income through affiliate commissions whilst also providing that value to their audience. So affiliate marketing is something that is worth considering. If you are using tools in your business or you are just promoting somebody else's service because you have had a really great experience and you wanna share that with the people that you come into contact with. Then it's worth reaching out and seeing if you can become an affiliate. You can make decent money through this option alone. I do affiliate marketing in my business.

Karen Davies [00:24:16]:
I have tools that have made a massive difference with the work that I do. And I am more than happy to shout about the tours because I figured that if they make a difference to me, they're gonna make a difference to so many other people as well. And why wouldn't I want to share that? I'm here to help others. I'm here to champion other people's success. And one of the ways that I can do that is by sharing the tools that I use because I know firsthand how much they've helped me. So I have a selection of tools that I use that I am an affiliate for, and it brings me in commission every month. So what can you being a fit for do you use tools? Are you can you partner with anybody? Is there anything that you can share with your audience that we'll give you a kickback from. And this could also be people that you come across as well.

Karen Davies [00:25:15]:
And, like I say, you've used their services or products. So think about what you have experienced and things that you have enjoyed using and whether or not there's an affiliate scheme there as well. And if you can't see it on their website, just reach out to them because the the the company that you're being an affiliate for, they're winning because you are referring people to them. So often, they're more than happy to give you a kickback. And sometimes it can be as much as 30%, 40%. I mean, I know one of the tools that I I'm an affiliate for I get a I get 50% commission, which is pretty decent. There are many benefits from choosing this option. It's very low risk, high reward.

Karen Davies [00:26:04]:
So as well as being an affiliate marketer for a company, you can also sign people up to be an affiliate marketer for you as well. So if you have an online course or a digital product or an online program, you can ask your students to become affiliate marketers for you so that they can go out and promote what you are selling to their audience. Now the great thing about this is that if you were to do that, you would only pay out on a result, meaning you would either get a lead or you would get a sale. So you would only pay if you're making money. So it's a really great way, a cost effective way of advertising what it is you have to sell. So it means you're not having to pay out for paid ads. You can actually get people to go out there and to talk about your products, which which is great. Equally, if you are the affiliate marketer, so you're doing it on behalf of another company, then you get paid every time somebody signs up as well.

Karen Davies [00:27:10]:
So if you are really passionate and you believe in the thing that you're talking about, you get paid for that, which which is great. The amount of times that I've been paid for something because I've mentioned a tool that I'm using, and I've only mentioned it because in that moment when I've been talking about it, it is relevant. And because it's been a benefit to me, that person that I'm speaking to has is interested and therefore wants to sign up as well. And I've not done any selling. All I've done is I've spoken about something that has worked for me, and then I've got sales. So affiliate marketing is a really viable way to bring passive income into your business. I think also one of the benefits of affiliate marketing is that it's build on partnerships and relationships, which I think in business is really important anyway. But by collaborating with affiliates, you get to increase your sales and build those long term relationships as well.

Karen Davies [00:28:10]:
So if you do have a product in your business that you would like more sales from, then bring people on board as affiliates to sell it for you. But by doing so, you're going to be building those relationships up. So with affiliate marketing, just to recap, there are 2 ways to do it. First way if you become the affiliate marketer. You go out and promote tools and, things that you're using, and you made money from that when people other people sign up. The only caveat to that I would like to offer is don't become an affiliate marketer for a product that you do not believe in. Because by talking about something, it is so much more powerful and so much more authentic if you can speak from experience. So don't fall into the temptation of choosing something because they have an affiliate marketing scheme, and you're only doing it to make money.

Karen Davies [00:29:10]:
Do it because you genuinely, authentically believe in the thing that you're selling, and then I believe that you'll get more sales from that. Because if somebody says to me that they love a product and it's done wonders for their business and whatever and I go and look into it, I don't wanna be sold down a rabbit hole. I want that thing to be the thing that they've said it is. And if they're selling something that they've not got firsthand experience in using, then, actually, what they're telling me is not true to form. So I would really advise you if you go down this route, stay true to yourself, stay with your values, and only represent tools and things that you truly believe in. And then I think by doing so, you can then increase you can then make money. The second way, as I mentioned, is by you offering an affiliate partnership with the people that have been on your product, who have purchased your product, and know exactly what your product is and can therefore go out and promote it to their audience. So with affiliate marketing, it's a twofold approach, the both approaches are really powerful, and both approaches can bring you in passive income.

Karen Davies [00:30:32]:
So there you have it. 3 easy ways to create passive income in your business. So whether you're thinking about selling digital products or you're thinking about creating an online course or perhaps dabbling in affiliate marketing. There's no doubt about it. Incorporating these income streams into your business is going to provide financial stability and freedom as you move forward.

Thank you so much for taking the time to listen to today's episode. I hope you found this episode of value, and, of course, please feel free to share it with others who you may think will also benefit from listening to today's episode. If you are feeling inspired and would like to know more about working with me, or maybe you would like to download my brand new free e guide, 14 digital products to create and selling your business now, then visit my website www.pink-lemondigital.com.

Karen Davies [00:31:36]:
I will be back next week with another episode, but until then, have a great episode of the digitally she does it show. Don't forget to check out the show notes for all the links and resources mentioned in today's episode. New episodes drop every week on Wednesday. So why not rate and subscribe so you never miss an episode? Thank you for tuning in today, and I will see you next time.