Teresia's Blog

Being self employed there is no such thing as maternity leave, at least not paid maternity leave. Well….that is not entirely true, if you are savvy enough to set your business up to create passive income, you could have paid maternity leave.  When we decided to start a family I became very motivated to have a passive income stream.  As I prepare for taking two months off completely from my business to be fully present as a new mom, I am taking some time to review my financial situation.  I have not quite reached my passive financial goals, but what I have created makes a difference!

Is it time for you to focus on passive income? If you are self employed why not incorporate passive income into your business plan.  Let’s first look at what is Passive Income? Passive income is money that comes in after you have completed working to get it.  It is income from work you have already performed versus work you are currently doing. Therefore, a passive income stream is a continued flow of income from a completed task.

One obvious source of passive income that illustrates the idea behind a passive income stream is a savings account.  You open a savings account with a certain amount of money, and that money gains interest as it sits there.  You never have to deposit any more money in order for that initial amount to continue earning interest for you.  Obviously the more money you deposit into the account, the more money you will make on it.

With access to the World Wide Web it opens up many options of passive income streams you can include in your business model.

Here are a few.

1. Affiliate Programs – passive income is derived from setting up a web site that pre-sell companies’ products or having other companies sell your products.

2. Information Products – ebooks, CD’s, books, ecourse, etc

3. Advertising commissions – on your website, newsletters or ezines.

4. Pay Per Click Campaigns – you can make money instantly by setting up a Google AdWords campaign for your product or affiliate program.

5. Referrals – create a network of people that offer services or products related to your business, set up an alliance where you receive a commission every time you refer someone.

6. Create a membership site – if you are an expert in your field and can provide the resources, knowledge and support, you can charge a monthly fee to gain access to your membership site. Because you are an expert in your field, you can also recommend other products and services to your members, from which you earn commissions.

7. Have associates – having a team of people working for your company that you receive a percentage of their service fee. If you are a coach or a self employed professionals check out our Creating your own coaching company ebook on how to incorporate associates as part of your business.

These are just some ideas of possible passive income streams.  Get together and brainstorm with your mastermind team (you have a mastermind team – right? If not read our blogs on the power of being part of a mastermind team) and decide which passive stream would best compliment your business and enjoy the benefits of this extra income.