You know what never gets old in this business?
Don’t worry, I’ll tell you…
It’s waking up having more money than when I went to sleep. That’s something really awesome about that.
There are a number of ways that happens for me:
- A random sale of a product or service (rare).
- A sale from a recent email I’ve sent to my email list, or social media post I’ve made.
- Recurring payments from my membership site or monthly coaching/offers.
- Recurring payments from affiliate offers I’ve promoted.
- Random payments from affiliate offers I’ve promoted in the past (true passive income).
Here is my mission statement for the Laptop Lifestyle Business Club:
“I help business women use active and passive online marketing methods to create a true laptop lifestyle they love!”
That’s my mission.
For anyone willing to listen.
Since not everyone really gets what those online marketing methods are until they’re full into them I thought it would be a good idea to classify the three main income sources you can create when it comes to a earning an income from home online, and why you should consider them all as part of your business plan.
- Active Income – Creating active income in your business is a great way to make money fast. Active income is anything you do that directly results in income. This can be promoting a course or coaching program. It can be providing a service like Virtual Assistance or Website Design. It is anything that you need to be actively involved in to generate your profits.
- Recurring Income – Recurring income is income that comes in on a regular, recurring basis. This is the kind of income that you still need to do work to maintain, but you don’t have to keep making the sale after you do it once. The best example of recurring income would be a membership site. I HIGHLY recommend adding a recurring income source to your business. Before I did this I was seriously struggling each month to even make the bare minimum I wanted/needed to make in my business. Adding a monthly recurring membership allows me to have a “base” income so I know where I stand if sales totally tank in one month for some reason. Another example of recurring income would be a monthly coaching program like my Protege Program. I have to work to make that income, but I don’t have to sell my clients into the program each month.
- Passive Income – Now this is the holy grail of online income. Of course we all want it and lots of it! But it’s not to be had without effort and you can’t count on passive income forever. I love to tell people about the awesome stuff over at Coach Glue and that is a good example of passive income for me. I’m pretty sure if I didn’t do one more promotion I’d still keep getting affiliate payments because Nicole & Melissa are so freaking good at providing huge value that they get LOTS of repeat sales, which I get credit and commissions for from the people I’ve sent them. Of course it just makes sense for me to combine this passive with me continuing to promote (active income) so I can make immediate money AND grow my potential future affiliate sales. Affiliate marketing isn’t the only way to generate passive income. I can create autoresponders and an opt-in funnel that brings people through my system and makes sales. I can crate a product (active income) that leads to an affiliate offer that pays me monthly (passive) for the one time sale.
You see why it’s important to know the difference between these different incomes?
If you don’t realize they exist you may get stuck working on only one and not receive the benefits of them all. And you’ll most likely be missing opportunities to leverage your work efforts!
I have a habit of being stuck in the ACTIVE myself.
I mentioned to you I was so much in active earning that I was struggling to make enough. I was on the constant roller coaster of launching my coaching programs and then scrambling on the in-between times. I was so tired of being SO ACTIVE (even though it wasn’t client work, it was tiring). That’s when I focused on the recurring income.
The passive income… I have work to do there. I make some and I LOVE that but what you focus on grows and I need to put more attention there. However my little extra piece of the affiliate marketing pie is nothing to ignore! I get little commission payments that add up nicely! I’ll be adding to this in the future.
All in good time though because at the moment I’m still growing my recurring income to a monthly amount that I could live off if I wanted to and put my business into “maintenance mode” when needed. THAT is how powerful the recurring income part of it is and why it’s my number one priority at the moment.
It’s a process and a progress as most things I talk about.
It’s something you need to work on regularly and be aware of.
It’s definitely something we will support you in at the Laptop Lifestyle Business Club. Join us and see ;).
P.s. Want to learn more about Natural Email Marketing? It’s not too late – sign up today!