Making money in your sleep is a dream, right? Something that an overwhelmed business owner imagines when everything seems to be too much and too stressful?  

Recently, I did a poll in my Instagram stories asking you what your biggest struggle is when it comes to running a small business, and the answer wasn’t surprising: doing it all.

I have run two product-based businesses in the past myself. One was a handmade business and the other is my current side-hustle – a printable business. I learned so much from my first business. Including the truth that it takes a lot of work and time to run a business. So when my second business – my printable business – started to become more than an idea, I knew I needed to craft my business so that it was scalable and sustainable. I didn’t want to work 60+ hour weeks and not be able to spend time with my family.

So I had to get creative and figure out how to make it work! 

Do you want to know the secret I learned?!

PASSIVE INCOME!

Okay, so what IS passive income, exactly? Is it just an unattainable myth?

And how can it help your own unique business?

Well, let’s break it down by the 3 different types of businesses: Handmade Businesses, Product-Based Businesses, and Service-Based Businesses.

Handmade Businesses

It can seem like there is absolutely no way to create a passive stream of income if you have a handmade business. But there is!

You can collaborate with other business owners and feature them and their products in your shop for a commission. And you can potentially be featured in their shops, too! This gives you both more exposure as well as passive income that comes from the commission you take. 

Of course, when you select other products to include in your shop make sure that these products complement your own product line. You want something that appeals to your customer base rather than a random item that no one will purchase. 

You also want to think about complementary price points when you collaborate with someone. If you already have high-priced items, then bring in some slightly lower-priced items from another creator. And vice versa! 

You can also make your marketing semi-passive by creating a monthly subscription box so that you can have a steady stream of income without constantly searching for new customers. 

Product-Based Businesses

Do you want to know the easiest way to create passive income in your product-based business? Drop-ship your items! Drop-shipping is when someone else produces, packs, and ships your items for you. This means that you are the designer, but you have another small business (or a factory) produce and ship the final product. And all of this means that much of your income is entirely passive! Which frees up so much time and mental and creative space for you.

You can also create a subscription model for this type of product-based business too, which will cut down on the time and effort you have to put into marketing! 

Of course, just like with a handmade business, you want to make sure that you cover a range of price points. Think about it this way: someone might not be ready to spend a lot of money on a high-ticket item because they haven’t tried what you have to offer. They need a taste of the goodness you offer at a lower price. But once they are hooked, they will move on to your higher-priced items. 

Service-Based Businesses

Service-based businesses can also create a passive stream (or multiple streams!) of income. Of course, you can’t turn all of your streams of income into passive income streams. But you can streamline and simplify a lot. 

How?

Make sure that on top of the 1-on-1 services that you provide you have a digital product (or two, or three!) that you sell. Courses are the most common passive streams of income for a service-based business. But there are other passive income streams you can create, too, with products like ebooks or templates you can sell on your website. 

If you are a health coach or a business coach, for example, you could offer an ebook that helps solve the top 10 most common problems you see your clients deal with. Then you could go further and create a mini self-study course that helps your audience create one big change or achieve one big transformation. Both of these products would be at a lower price point than your 1-on-1 work, of course. This means you will get customers purchasing from you who otherwise wouldn’t sign up for your higher-priced coaching. Then they will be intrigued and want to work further with you, which means eventually they WILL sign up for that higher-priced coaching! (Especially when you utilize the power of your email list.)

Passive income is the perfect way to make the income you need to make, serve more clients, and actually take some of your time back for yourself. It lets you run your business and still have a life! Of course, you will still have parts of your business, including certain offers, that will not be passive. But you CAN turn several parts of your business into passive income streams. 

There is nothing I love more than hearing the “Cha-Ching” on my phone confirming I made a sale of one of my passive products and knowing I don’t need to do anything…because I’ve already done the hardest part is putting it into my store. The rest is passive! 

Are you intrigued to find out more about how to create your own passive streams of income (as well as other business and marketing hacks)? Then make sure you are getting my tips and tricks delivered directly to your inbox by clicking here!