About the passive income, I know two types for increasing income: linear growth and exponential growth. For a simple example, the linear income growth means you sell your time to only one client, if you want to earn more money, you have to spend more time on more clients, such as doing the outsourcing projects.
The exponential growth type means you can sell your time to unlimited users, once you have a good product, the only thing you need to do is sell it, then the income will be increased faster than the former method.
In the past 6 years, I have kept trying exponential growth, because the product-driven business is easier to create the passive income channel. The passive income is very important for me, a workaholic who burn the midnight oil. I always worry about my health so that my family will fall into an economic crisis, sounds contradictory and why not choose a healthy lifestyle? Sometimes, I feel quite helpless, you know the income of freelancers is not always stable, I must do a lot of works to get ready for the raining day. Unfortunately, bad happens sometimes, I was sick.
While I was ill, I can’t do most of my works, even I forced myself on it. Fortunately, my product-driven business has never been stopped, it always drives the passive income stream to me, more or less. But on the other side, you know everything just like the sunrise and sunset, no absolute passive income. I still couldn’t plunge myself into the work, finally, the passive income went down exponentially.
Let’s imagine that if I haven’t built my product-driven business for earning the passive income, what do you think will happen? Just see the following chart:
Anyway, the passive income bought time to me so that I took rest, learned new knowledge, and thought about the idea for my next project.
In my story, I just want to let you know how important passive income is, especially for freelancers. The passive income streams can make you feel safe, make your business stronger.
How to create passive income channels?
There is no unified approach, it depends on the industry and your skills. The general idea is that you may have to find a niche market, do something can really resolve the pain points of people. If the industry which you are in is hard to build a product-driven business model, just learn new knowledge, expand your vision is a nice way to start your side project. Actually, slash youth is really cool, come on!
When you found a pain point in a specific field, you should make research to check if this pain point was already resolved or not. If not, just do it, or do it better.
Let’s say a simple example. I’m a web designer, one of the biggest pain point for me is to find the CC0 product pictures for my online shop website demo. I mean the product pictures such as below:
The product pictures with a solid background color or transparent background. It’s really hard to find nice product pictures that can match my web design style, even I know there are many free pictures download websites. When I search “CC0 Product Images Download”, “Shop Product Images” on Google, there’s almost no related content or less, or low-quality pictures, but I only found one company that offers the services that helping shopkeepers remove the product background.
So, at this time, if you can take some perfect product pictures with your camera, then build a membership website based on the subscription model, and provide commercial use license, that’s would be great for the web designers! Once you launch this picture platform, it will automatically run and earn passive income, the only thing you need to do is take more and more beautiful pictures and let more designers know it.
This is only an example for inspiration, you could use your imagination to find more ideas. Anyway, just remember that sell your time to multiple users.
Launch Your Business
Once you have finished your product and business model, the next step is to launch your business in the right way.
A very famous example: Jeff Walker’s Story.
He created a miracle, earned 1 million dollars within 24 hours. He wrote his story and the method to launch the product in his book.
It is not an advertisement here, because I think it’s 100% worth to read if you really want to know how to build your own business, whatever big or small.
Another book you must read is Growth Hacking: Silicon Valley’s Best Kept Secret.
As freelancers or individual business, maybe we don’t have much money to publish online advertisements everywhere. So, Growth hacking is a good way of thinking you might be inspired a lot, use lower cost to trigger fast growth.
The Final: Keep Thinking, Keep Discovering
Besides the income stream, another important lifeline of the freelancers is always to update the knowledge. So you may keep thinking, keep reading, and discovering the new trends, then, you will be able to get new opportunities.
Good luck, freelancers!