Our world is built on the fact that you need money for anything. Cash for goods. Some have lots of it, and some have less. While traditionally, the job you have dictates what you bring home at the end of the month, in 2020 people are becoming more money-savvy and are recognising that there are plenty of other streams of income. We’re not talking ‘get rich quick’ schemes, we are focusing on ‘passive income’. Interested? We have Lisa Johnson, a self-made multi-millionaire business strategist and passive income expert to tell us her story and to help us out today on what exactly passive income is, and how we can start a couple of streams ourselves.
£30K Debt To Millions
Lisa says she was bullied badly and so left school without getting great qualifications. Growing up in a council house in Lincolnshire, England, she didn’t know anyone else who had their own business. “I climbed my way up in corporate and ended up in investment banking but then got pregnant with twins and went through a divorce shortly after,” she said. Lisa then decided that the only way she could see and spend time with her new babies was to start her own business as a Wedding Planner.
By the time her new business was off the ground, she was £30K in debt. After a while of struggling, Lisa’s business became successful, and she found that she was able to teach her skills to others and as such, Lisa Johnson Coaching was founded three and a half years ago. “This time it went great as I’d learned so much about business,” she said, “within a year I’d made £220k in revenue but felt like I had traded my 9-5 job for a business that meant I worked all the time!” Because of this, Lisa began looking into passive income. “I changed my business model and from that £220k I made two years ago, I now make £2-3m a year and work a third of the hours I did then.”
What Is Passive Income?
Officially, passive income is income that requires little to no effort to earn and maintain. Lisa says that passive income to her, is “simply not trading time for money.” However, she asks that you don’t believe the myth that it’s passive from the beginning – nothing is. “You build an asset and then make money from it time and time again.”
Lisa explains that if she creates a course for someone to buy, “I could do 10 hours work 1:1 and make £20k. Or I could do 10 hours work delivering a course (the asset) that I’ve already created and make £1m in the same amount of time.”
Other examples of semi-passive and passive examples are:
#1 Drop Shipping – a form of retail business wherein the seller accepts customer orders but does not keep goods sold in stock
#2 Affiliate Marketing – in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts
#3 Memberships – usually through a website in which people sign up to gain access
#4 Trading – according to our research, dividend stocks are one of the simplest ways for investors to create passive income (but you might need to know your way around the stock market before diving in headfirst!)
Earning Passive Income
Lisa believes that anybody can make semi-passive income from using knowledge they have in their head already. “I’ve worked with over 2,000 people and taught them how to use what they know to bring out courses or memberships.” Importantly, she says it doesn’t need to be something groundbreaking. For example, an e-book that you write showing people the best routes through Disneyworld and helping people save time by knowing what you know is a passive income stream that can generate hundreds. “My clients have memberships about all sorts, from theatre lovers through to potty training,” Lisa said, “You don’t have to be the biggest guru on a subject in the world – you just need to know something that some other people would pay to know.”
As a passive income coach, Lisa helps people step-by-step know what to do to build a passive income stream online including growing an audience, how to write a course and where to host it along with how to launch and use social media to sell it. Passive income is like a jigsaw puzzle – you need to know all the parts: “I’ve had clients throughout lockdown make hundreds of thousands from their courses and memberships in all kinds of fields.”
In conclusion, we can’t tell you EXACTLY how to create your stream of passive income. However, we can draw your attention to the possibilities and hopefully encourage you to discover what you can sell to bring in the big bucks for yourself. Good luck – the future’s bright!
You can reach Lisa via her website.