Welcome to Episode 35 of the Nutrition Business Podcast with Libby Rothschild.
On today’s episode, I am chatting with Rachel Paul of @collegenutritionist about active vs. passive income, what they are, and what you should be focusing on in your business.
Rachel and I both work 1:1 with our clients, as well as have created a passive income course - Beat the Algorithm - to help us both reach our income goals and needs for our business. I think you will really enjoy this episode as a way to help you strategize and determine what things you should be focusing your time on in your business.
Want the transcript of this episode? Download it here.
Here are the takeaways from this episode:
Active income is any type of work you actively have to participate in, like 1:1 coaching.
Passive income is any type of work that you do once and then can promote it and make money off of without doing more work, like eBooks or courses.
The benefit of passive income is that you have the ability to extend your reach
With passive income, you do have to do work upfront, such as market research and promotion in order to sell your product, so there is still work involved.
A great way to figure out what types of passive income items you should create is by creating valuable freebies that your audience loves.
Affiliate marketing is another passive income source without having to put a lot of work into. Affiliate marketing is when you are referring people to products or courses you love and then getting a commission off of when they purchase.
Mindset plays a huge role in affiliate marketing - you have to believe making money off of influencing people to purchase something will work for you.
If you need more money upfront and have the time, focus on active income. If you don’t have the time to put into 1:1 coaching, focus your time on passive income upfront.
You do not need a formal business plan to create income - think in terms of quarters to allow yourself room to pivot your business if you need to.
Find a way to have external accountability so you can keep focused on the important things in your business.