Hi, it’s Neil here with Episode 37 of The Tutor Podcast – And today we’re going to be talking about PASSIVE INCOME – in other words, how to get paid for doing nothing or whilst you’re asleep.
For many of us in the tutoring and coaching business, our focus is on attracting students and clients. We want to be booked solid and perhaps even have a waiting list of potential customers for what we do.
Don’t get me wrong here – because if you are booked-solid with great people, it’s a fantastic position to be in – I’m not disparaging that business model in the slightest – after all, that’s the model I used to escape from my day job in finance and double my income, then treble it.
But here’s the thing: the booked-solid model is capped. I don’t care how you slice and dice it; there are only so many hours in a day that you can teach. Everything is limited - by either how much you can charge, and how many hours you can work.
So one of the best things you can do as a business owner is to add more streams of income to your business. The very best way to do this is to create income streams that require no time input from you once they are set up.
Once set up, each stream adds to your cashflow, and the best part about this idea is that everything is cumulative. Most people seem to think in terms of doing only one thing, but if you can change that and ask yourself “what else can I add?” you can – over time – create a confluence of income streams. Individually they may not be significant, but when you add them all up and keep adding additional streams, they can generate significant additional income with virtually zero time or money from you.
Adding more and more income streams works – in the last two years I’ve added multiple passive income strategies that run around my teaching business. They don’t take much time – a few hours a month - and they generate profits equivalent to 9 days full-time tutoring per month.
Now, if I can do it, anybody can. So here’s an overview of some additional income streams you can add to your teaching business
- Other people – but there’s a caveat here – people need more time than things
- Assistant instructor
- Associates who pay you for leads you don’t want, eg out of your area, poor match for what you do,
- Franchise your systems – if what you do is unique, proven, profitable and teachable – can you franchise it? McDonalds works this way – it sells turnkey business systems to franchisees, and receives royalties thereafter. Once you’ve created the system, you can sell it to other people who want to do what you do.
- Create products – a long tail. Create once and sell forever with evergreen content
- Books – words are free, and you can always make more
- Audio programmes – read your own books/sessions and sell the recordings
- Courses – package your way of teaching for people unable to get to you
- Music – song writing royalties. You don’t need to be the star yourself.
- Merchandise – design your own T-shirts, caps, and have someone else make and ship them
- Teaching tools – any special gadgets, graphics or gizmos you’ve invented?
All of these have a halo effect – positioning you as an expert in the marketplace.
- Rent out your teaching space – if you own it
- My studio – trusted friends only on this one
- Spare rooms – you can earn up to £8000 per year tax free by renting a room in your own home.
- Teaching room -
- Home office – my friend likes to work here when I’m teaching
- Parking space – I rent out the allocated space at one of my properties where the tenant doesn’t drive. This is worth a rent rise of 11% on the flat and requires zero input from me, because it’s all done via a 3rd party website.
- Hire out your gear
- My PA system for example – my friend’s bands and the local Am-Dram group hire out my PA system. 10 minutes pick-up, 10 minutes drop-off
- My wireless system and one of my digital recorders – a trainer uses it to record her speeches and presentations
- Property investment
- good if you have the funds
- can be leveraged, multiplying returns
- Can be profitable, despite tax changes
- Aim for cashflow – capital growth is not within your control
- You’re acquiring an asset, possibly for life
- Possibly building a legacy for your kids
- Crowdfunding – as an investor or promoter of an offer
- Consider partnering-up with someone trustworthy or experienced
- IMPORTANT: do your homework! I’m amazed how many people I’ve met who want to get into property investing who’ve never even cracked a book on the subject and who don’t have a clue about what they are about to commit a lot of money to.
- Affiliate programmes
- Sell for other people
- Halo marketing – other people’s reputation around you
- Free, so it’s good if you have little or no money to start
- Amazon, Audible, Ebay and many others
- You get a unique link to add to our posts, emails and shares – any click thoughts which result in a sale generate an affiliate fee – often it’s not limited to your recommended products, it’s for anything bought within a given time period, a day or two, a week, month or several months; it’s all yours.
- Share on your social media, Twitter, faceBook, LinkedIn, Instagram, Snapchat etc
- White-label goods
- Amazon strategy
- Research the market
- Find a product
- Design the packaging
- Locate a manufacture
- Order some product and have Amazon fulfil the delivery and logistics
Whatever you are going to sell or market, you must be ethical. Do not endorse or sell crap – only endorse and market what you believe in and know to be good.
Here’s a great tip for you: once a month, sit down and write at the top of a sheet of A4 “How can I add another income stream to my business?” and make yourself stay in the chair, answering that question until you have at least 30 ideas that you can consider. Do this every month and take action!
If you can add an extra £50 a month to your income, every month for a year it’s not much, adding just £600 a month to your bottom line. But what happens if you keep on doing it every month for 5 years? That would add £3000 to your monthly income – might that make a difference to your business and your financial well-being?
Now imagine adding £100 extra per month to your income, and double those numbers up...
Remember, it’s not rocket science – it’s just stuff you haven’t thought about, yet...
So, that’s my ten cents’ worth on PASSIVE INCOME... Let me know what caught your ear in this episode and how you get on putting the ideas to work in your business. What have you learned from outside of your field that made you a better tutor?
I’d love to hear it, so send them in to me, because I’m here to learn, too.
Just send them to [email protected].
In the next episode we’ll be talking about a Daily Journals – a vital weapon in the daily battle for your mind. Find out how this simple routine can set up your day for excellence and round it all off at the end of the day.
Until then, remember to subscribe to The Tutor Podcast and get all the updates and more tips to help you to Start, Grow and Love Your Tutoring Business.
So join me - Neil Cowmeadow - for the next episode of The Tutor Podcast - Have a Fabulous Day!
