The Three Pillars of Passive Income: which one is your path to easeful wealth?
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Have you wondered if it’s actually a possibility to replace your income with passive income?
The answer is yes! but there isn’t just one way. The best way to do this is to diversify. You need to create for yourself multiple paths to cash. That way you can create income security at the same time.
That’s where my three pillars of passive income in.
Note: These three pillars are designed for digital creatives, like photographers, videographers, designers, and illustrators, but consider how you could build your three pillars with your unique skills.
#1: Licensing Stock Photography, Videography, and Illustrations
Licensing is THE MOST passive income stream I can think of for a creative and it can literally pay you for years. If you have photos, videos, illustrations (and even more on Pond5) The average stock photo has a lifespan of about 10 years, and if you continue to add photos to your portfolio each year you should continue to earn more year over year.
You might be thinking, “That sounds great, but I literally know nothing about stock. How do I get started?” Well, the first step is to choose an agency. The three types are Microstock, Premium, and Multiuploader agencies and you can simply download this free guide to learn more and make an educated decision on which is the right fit for you.
After you have your agency, you can upload just about anything (with a few limitations of course.) Photos, video clips, and illustrations are all in high demand. You’ll need to ensure you have model releases for any people in your photos (you get this form from your agency) and avoid intellectual property in your stock content, like logos, artwork, etc. Learn more by downloading PHOTO to PROFIT, my stock photography starter guide!
#2 Monetizing your Tools
If you’ve been an entrepreneur for any amount of time, you’ve probably come up with your own systems, processes, templates, and other tools to make your job easier. The great news is you can package those and sell them to fellow entrepreneurs like you. If you had a need for them, chances are others do as well!
Think of these as resources. What would make someone else’s job easier? Some examples might include a done-for-you template, Instagram stories or reels ideas, captions, graphics, email templates, wedding day or shoot checklists, Trello boards, pricing guides, photoshop brushes, textures, lightroom presets, LUTS, Canva templates, etc.
These tools can be sold on an online marketplace like Creative Market or through your own website.
Want an easy way to come up with multiple tools that you can monetize? Create a list of the things you love about your business. Make this really specific (i.e., Responding to emails, using Pinterest, posting stories on Instagram, etc.) Add the things that you're really good at or known for. What resources did you wish you had when you started your business? Do you already have any templates and tools you could refine and monetize? Now take this list and let’s get to work!
#3 Monetizing your Knowledge
The market for online courses has blown up in the past few years, and it’s not slowing down anytime soon.
“According to the latest research study, the demand of global E-learning Market size & share in terms of revenue was worth of USD 144 billion in 2019 and it is expected to surpass around USD 374.3 billion mark by 2026, growing at a compound annual growth rate (CAGR) of approximately 14.6% during the forecast period 2020 to 2026.”- Global News Wire
This means more and more consumers will turn to online courses and e-learning for information.
When it comes to what kind of course to create, “the riches are in the niches”. There may be plenty of general courses for entrepreneurs out there, but consumers are often looking for more specific answers to their problems.
One thing you can do is validate your offer before you create it. Be specific about who needs this. Reach out to that type of person and ask if you can interview them or send out a questionnaire. You could also do a presale or launch a “beta” version of the course to see if there’s any interest.
Next, refine your idea. When I created Stock Photography Academy I refined my course content by teaching my clients 1:1 as well as in a small group. This allowed me to create and refine the process that would help anyone build a passive income stream through stock.
After that, you’re ready to create your course from this process. There are multiple options for course formats, so consider how you like to learn. It’s a good idea to take some online courses yourself. What resources are most helpful for you? You can create workbooks, videos, slides, audio clips, and more to help your students learn the content. Think about if you want to make it live or pre-recorded. Use a combination of formats for different learning styles. Then, continue to refine your course based on student feedback!
The last thing you’ll need is a platform to host your course. I use Stan Store and love it because it’s simple to set up as a creator and the user experience is great! I actually learned this by taking dozens of courses from other creators and comparing the platforms as a user.
Now what?
Now that you know what the three pillars are, where do you begin?
I recommend focusing on building one pillar at a time. The more intention you put in on the front end, the higher chance you have for building a sustainable passive income stream.
I recommend building the pillars in the order I’ve listed them. The first pillar is the most passive while the third pillar requires the most marketing and upkeep.
What are your thoughts on the three pillars of passive income? Which one is your path to easeful wealth?
***Want my help build these three pillars of passive income into your business? Book a month of coaching and consulting with me here***