What is a passive income & how can it change your life? (My IRL examples)
Life is for LIVING and living means doing the things that truly bring you joy. If you spend all of your life working in a job that drains you, are you really living?
Whether you’re stuck in a job you hate or you’re fed up of the unreliable income from your business and want to work fewer hours, a passive income could be your way to freedom.
If you dream of an abundance of free time for doing the things that bring you joy like playing outside with the kids, gardening or traveling the world, creating a passive income could be for you. You can build it up alongside something else until eventually, you can leave that life sucking job you dread or work fewer hours.
With the current cost of living crisis spanning the globe, I am extremely grateful for the “passive” income streams that I have built and started to build in the past few years of my life. It’s given me the opportunity to work for myself which means more freedom and time to do the things I enjoy. It’s simple things like walking the dog, spending quality time with friends and family (that doesn’t feel rushed), surfing, traveling, pottering around our lovely home… all whilst knowing I have things working in the background making our little family money.
So, what the heck is a passive income?
A passive income is money you earn from an enterprise with little to zero ongoing effort. A passive income often takes upfront time and/or money to get going at first (finding your niche, building an audience), but eventually becomes one which you have no direct ongoing involvement with.
The best thing about a passive income is that it offers a great sense of financial security and freedom because essentially, you’re not working to earn, you can be sitting on the beach, watching the money roll in from work you did months or years ago! A passive income, when done right, isn’t connected to your time.
Some examples include investing, property, building and marketing an app, selling digital products such as ebooks or online courses, selling services you don’t participate in, online marketplaces, blogging and selling ads, directory sites, affiliate marketing, network marketing and so much more…
Let me tell you my story to a “passive”(ish) lifestyle.
What’s my story? What are my passive income streams?
For me, I never had the goal of creating a passive income but I did have the goal to run my own business, be my own boss and not work for anyone else (FREEDOM!) since a very young age — approx 8 years old selling ice creams to walkers walking through my front yard because it was a public footpath, my signage was using my best bubble writing ;).
I have, of course, been employed but it just didn’t work for me, I’d job hop A LOT. It came down to the lack of creative freedom and time to do what I want, when I want and I didn’t like the idea of working my arse off to make someone else rich.
I crave the freedom to design my life around creativity, meaning and fun. If something doesn’t feel right, I can stop and try something different. I love the variety and control over the hours I work so that I can do specific tasks when my energy allows.
If you’re reading this, you very likely feel similar. Maybe you’re stuck in a job you hate or maybe you run your own business that you adore but you’re tired of the financial insecurity. I still get the fear of everything just suddenly disappearing with nothing to fall back on but that’s why I try not to have all of my eggs in one basket and why I’m trying to build multiple passive income streams which don’t rely on my involvement.
I spent approximately 8 years of my life thinking I wanted to be a support worker, I enjoyed it but I became burnt out and wasn’t being valued like every other care worker in the world. SO, after working in care for 6 years, studying a Degree in Health & Social Care for 3 years, working in schools as an LSA for a while, I quit.
Kris-Sea — The Ocean Lifestyle Blog
I moved to a beautiful part of England to be closer to the surf in North Devon and started to discover more and more talented artists who were inspired by the sea and the environment around us. I have always enjoyed writing, so alongside working as a learning support assistant in a primary school, I started a blog and shared blog content across social media channels to present and showcase independent, small businesses who sold hand-made, beach related products in the UK.
The aim was to get their products in front of more people and their businesses to blossom as a result.
This grew into an online marketplace/boutique which I built on Shopify. I would list and sell their products to my audience as well as write about them on the blog and social media. It was super successful at the beginning, I made a commission on every sale and businesses paid me £5/month to be listed.
I absolutely loved it. But after a few years, it failed. I just couldn’t maintain it or give it enough time to grow it enough to allow me to live. But, it did help me to recognise the power of ecommerce technology and the world of opportunities online. In hindsight, I should have kept it going alongside a full time job and outsourced some of the tasks.
I made great friends through Kris-Sea, three of whom are some of my best friends (Cat made surfboard bags and so did Alice and Deepa sold sustainable swimsuits).
Freelance content marketing strategist and writer come agency owner
I left my job at the school and spent 6 months as a Digital Marketing Executive at an ecommerce web design & marketing agency to gain more insights and experience.
Working at the agency was good, I was writing every day, I managed 12 clients — their content marketing (blogs) and social media accounts. I learnt so much. The biggest thing I learnt was that I could do this by myself, not necessarily build an agency, but I wanted to have a direct relationship with my own clients and have the freedom to find my own niche (and dictate my hours of course.) I remember writing a really long email to my manager about why he should let me choose my own hours depending on my energy levels haha! I didn’t send it.
*I also remember him calling me asking me why I wasn’t at my desk yet — I had gone surfing.
Cut a long story short, after 6 months, they let me go and suggested I went freelance — So, I did. I was already planning on doing so but didn’t know it’d happen quite so soon.
After quite a lot of graft, I managed to build a portfolio of clients as a freelance content strategist and writer. I started out trying to work with local businesses, I tried to niche into health care organisations, but that didn’t work. I tried to niche into outdoorsy, adventure brands but that didn’t work either. Both due to lack of budget or they didn’t all see the power of content. I ended up just giving a lot of free support during “discovery meetings” and got nothing in return (a part from the time when I exchanged writing blogs for a surf and yoga retreat in Morocco!)
The pivotal moment 🤔
I was later introduced to my partner’s friend who ran an ecommerce technology company — he needed a content writer. This was one of those aha! moments — the best thing that could have happened, I LOVED IT.
This company then introduced me to an ecommerce agency (Shopify Plus agency) who I wrote for, for 2.5 years and then they introduced me to another ecommerce tech company (Shopify app company)… and so it went on…!
I got so busy with work that I needed to build a team of writers — I found some really talented writers who were even better than me — but I also had my fair share of bad writers who would instantly get the boot. My little freelance business grew into a team of very talented, niche content strategists, writers, editors and a dedicated project manager!
The key here was to NICHE. I niched down into working with ecommerce tech companies and then took the leap into solely working with Shopify App companies (Shopify is the most environmentally friendly ecommerce platform.) We have worked with companies like Okendo, Gorgias, Klevu, GoodCarts, Shopify themselves and so many more.
Is this passive?
Yes and no. Although this business had little overheads to startup, I spent MANY YEARS building on my experience and expertise. I also spent a ton of time perfecting the development of frameworks, systems and processes to ensure our clients get the highest success rates possible and this is also up for my review twice a year or more. It took me a very long time to gradually hand over tasks to others, I found it both stressful and freeing but I trust my team and have immense gratitude for every single one of them.
I am the head of marketing for Kollectify and I really enjoy building my network and overseeing business operations. But, I can pick and choose my hours and don’t need to be the person to do these things, I just choose to because I love it.
Kollectify feels *almost* passive because I’ve gone from doing all of the work, to editing work, to outsourcing editing and only doing the project managing to hiring a full time project manager. The only thing I focus on now is marketing our company and I’m gradually outsourcing that, too. Oh and client conflict if and when required. Our Project Manager handles inquiry calls which is the most recent thing for me to have delegated — I needed it to be someone I trust.
You could argue that this is not 100% passive because I still like to be involved in decision making and the creative side of the business. But, when I’m surfing in the sea and our incredible team are working hard at the things they do best, my business is making money without me so in my eyes, that’s “passive”.
MindfulCommerce
MindfulCommerce is a FREE online community for ecommerce businesses (merchants, brands, tech companies, service providers), united by the desire to protect our planet and reduce the environmental impact of ecommerce. We come together to learn from one another and collaborate on making the ecommerce world a better place.
I have always been a huge environmental advocate and when I recognised the fact that ecommerce was a big contributor to climate change, I wanted to do something about it.
It.is.the.best.community.ever.
We help ecommerce businesses to consider the environment through expert led training sessions based on our Sustainability Framework, online networking events, educational resources such as our Sustainability Guide and articles on our Education Hub, and we also have a podcast.
We have two Directories:
What’s passive?
Nothing (yet)… MindfulCommerce is where I currently spend most of my time — it’s my passion. I genuinely want to do everything in my power to help ecommerce businesses to reduce the environmental impact of their business, to discover tech and service providers who can help them to do so and to grow their businesses — mindfully.
The more I put into MindfulCommerce, the more it grows and the bigger our positive impact. I currently only outsource some content to writers I trust from Kollectify. Myself and my co-founder, Rich run the online events, run the podcast and create content.
The MindfulCommerce Programme (passive potential)
I recently launched The MindfulCommerce Programme which has made a grand total of £250 minus Stripe fees and I probably spent 10000000 hours building it 👍🏽
If we begin to promote this programme some more, this could have the potential to be passive but I offer 1–1 support as part of the programme soooo, is this passive? 🤔 yes, if I was to remove the 1–1 support, it could be.
The Community Member Contributions (passive potential)
Currently we have two lovely amazing members pay $10/month— we don’t push this, we have a small note inside the community saying people can contribute if they like — no one needs to pay to get access so we massively appreciate this when people do contribute as it helps sustain our activity.
I guess if we charged a membership fee, and this covered the community management, then this would be passive? However, we want to keep it open and accessible to all.
The Community Support Packages (passive potential)
We have supporter packages which ecommerce tech companies and service providers often sign up for and this enables us to keep our community free and accessible to all. This is the biggest income generator we have but it’s not passive.
At the moment, these support packages include things like directory profile listings, content writing, and video content creation… so I’m exchanging my time for money - not passive. However, I am starting to commission this work to Kollectify to try to make it somewhat “passive” but I think I’ll be involved for a long time because, well, I love it.
Affiliate Marketing (kinda passive)
Affiliate marketing is when a publisher / content creator earns a commission if they promote a product or service developed by another business using an affiliate link e.g. promoting a specific retailer, or app created by someone else. The affiliate partner (the publisher), is given money when someone makes a purchase via their affiliate link.
Currently we are signed up to around 10 affiliate programs and we are yet to make a penny. Lots of great content + excellent SEO ✅ = $$$ 🙅🏽♀️
^^ We need to build a much bigger audience first, 5,000 hits/month apparently isn’t enough. But at least our epic supporters are getting a lot of exposure, right?
More content = bigger audience reached who are educated on important topics but it’s more time from me or more money to outsource… hmmm 🤔
What are some other passive incomes I have started to build upon?
Network Marketing
Network marketing is known by a variety of names, including multilevel marketing, affiliate marketing (as above), consumer-direct marketing, referral marketing, or home-based business franchising.
I’m going to talk about Multi-level marketing (MLM). MLM is a distribution-based marketing network that includes direct sales and a downline of distributors or introducers — sort of like sales representatives. They introduce a product or service to their network and receive a commission on sales made and sometimes, a residual income as a percentage of their customers monthly bills (hello passive income).
An MLM organization is not a pyramid scheme, pyramid schemes require people to invest in a false promise of wealth, MLM organizations sell real products or services that distributors believe in.
I’ve discovered a very unique MLM business which provides a healthy infrastructure and great training, plus extra rewards for high performers.
I’ve recently joined Utility Warehouse as a Partner — it’s different to most MLM’s because it is not only regulated by the Direction Selling Association, but also OFGEM and Ofcom, so there is nothing crooked about this business. However, like every business, you get what you put in, you have every opportunity to earn anywhere between £30k/month or minus £3/month. Many partners do nothing with it when they join and lose out on a host of opportunities at their fingertips.
It’s a ready made business opportunity where you simply help people to save money on their utility bills and earn up to £300 per customer that signs up, regular bonuses and access to residual income, free luxury holidays and more. You pay a small fee of £10 to join and after 3 months, it’s £3 per month.
UW is the only business of its kind where an immediate passive income can be earned. This is exciting to me! In the current energy and cost of living crisis, it just makes sense.
Introducing a utility company might sound boring but it’s really easy and rewarding when you save people hundreds of pounds per year. Unlike Avon or Tupperware, everyone needs to save money on gas, electricity, mobile, telephone, broadband and insurance— especially now. UW are unique in that they are the only multi-service utility company which means they can offer energy at 5% under the government price cap! Very attractive right now.
There are many other benefits as a customer like one bill, one password for all of your utilities and their unique cash back card, so I actually want to tell people about it.
*Fancy a free review as a customer? Book a call with Rich, here. Rich is my partner, he takes the calls :)
Other ideas
Rent out our North Devon home when we are not living in it
We are currently renovating our home but the plan is to finish it and turn it into a holiday rental on AirBnb. We are going to buy a van (probs a sprinter) and turn into a camper van and travel Europe (mostly Portugal) with our doggo and rent the house out whilst we are away.
Rent camper van out when not in use
Similar to the above, when we are not using our camper van and are living in our North Devon home, we will hire out our camper van for other people to use and pay us for the pleasure of using it :)…
Online store — bring back the marketplace…
MindfulCommerce actually started out as an online marketplace (we didn’t launch), selling products for outdoor enthusiasts who care about protecting our environment. But Covid hit us right at the beginning and we instead turned it into the community that it is today. Maybe we can bring back the marketplace vibes and do a full circle… watch this space… 👀
What will you do?
If you’re interested to learn more about how we have done any of the above, or wish to explore your passive income potential, I’d love to help you! Start by thinking about the skills and knowledge you have, what you enjoy doing and brainstorm a niche combined with some passive income ideas.
Passive income isn’t a get rich quick scheme, (although joining UW would be the quickest because the business is already there, waiting for you). It’s something you need to build and be consistent with, so my advice would be to start now, and chip away, you’ll notice it grow day by day, week by week and before you know it, you’ll be receiving enough income to quit the job you hate or work fewer hours.
Please remember, life is for living.
👉🏽 I’d really like to help you to find your passive income streams, send me a message on LinkedIn!
