The nine-to-five isn’t for everybody and, thankfully, the workplace is changing. With many of us struggling with a traditional work setting, could passive income be the key?
Nowadays, there might be more awareness of chronic illness, neurodivergence, and mental health conditions, but many individuals with one (or more) of these still find their workplace setup far from ideal. This might be due to an unsupportive employer, e.g. 39% of neurodivergent people feel they can’t speak to their boss about workplace challenges, according to a 2023 survey by instaprint. Or because they just don’t have the capability to work full-time hours, as 3.7 million people in the UK have work-limiting conditions.
While passive income isn’t about to make you a millionaire overnight, it can offer a real alternative for these people, or anyone who needs to work around commitments like existing health challenges. But what is it?
Put simply, passive income is a move away from the formula of hours worked = money paid. Instead, you spend time and energy in the creation and setup, with an ongoing reward or payoff after the ‘active’ work is done.
And, with the trading allowance allowing you to earn up to £1,000 from side hustles or self-employment tax-free, you have a little breathing space to try it out before stressing about HMRC paperwork (although it’s worth chatting to an accountant if you’re unsure of the rules).
Be warned: the term ‘passive’ can be a bit misleading, since you will have to do some work, whether creating something from scratch or promoting it on social media.
“The passive or semi-passive income model simply means selling one to many instead of one to one, so you are not constrained by the number of hours in the day,” says Sunday Times bestselling author and money expert Lisa Johnson, who’s made 90% of her income through passive/semi-passive streams, and teaches others how to do the same.
The key to passive income is finding something you’re passionate about. For many of us, work gives us a sense of purpose and pride, so combining a creative outlet with a business can be the perfect combo. After all, there’s no point starting a passive income business if it will cause you stress or bore you to tears!
Teaching others through creating a course.
Passionate about pottery? Buzzing about baking? Why not teach others something you’re knowledgeable about by creating an online course? This is a simple way to get going, and it’s not something you necessarily need qualifications for.
“The first thing that I tell everyone to remember when they are looking to create a course is simply this: your knowledge is not common knowledge. I guarantee, there is not one person in the world who isn’t an expert in something. And remember that the definition of an expert is simply the person who knows the most about a particular subject in an average-sized room!” says Lisa Johnson.
Creating a course can be on any topic, and the first step is to find your tribe on social media.
“To sell anything, you need an audience, and this is where the work needs to be done at the start. Being consistent and persistent is key, but remember, consistency is not the same as constantly. Work out who your average client is, and then tailor everything you do to them,” she adds.
Set up an Etsy store.
You can sell anything on Etsy – from handmade items to digital printables – so if there’s something you love to make, why not sell it?
“Setting up an Etsy shop is super easy and the upfront costs are very low, so it’s a low-risk way to try passive income,” says Sarah-Jane Lewis, an Etsy seller who also works with others to help them grow on the platform. “For example, it’s a $15 fee to open your account. Provided you set up your shop correctly, have a product that is handmade, or ideally personalised, and learn about SEO, you can do well. It can take three to six months for those sales to arrive, but you can speed this up the more promotion you do; I made £1,000 in my first month. What’s great is Etsy has a huge variety of products, too. I sell personalised prints, greeting cards, and sweet gift boxes.”
Start a blog.
Blogging, or any kind of writing, can be a great creative outlet, as well as a way to help you process your thoughts. So, if you enjoy writing, why not take it to the next level? “Publishing a blog is a great way to create a community around your interests,” says travel blogger and email marketing expert Kirsty Bartholomew. But how does it translate into money?
“Recommending products you have enjoyed and tried is one of the simplest ways to monetise it, and you don’t need a huge audience. Simply sign up for affiliate programmes for your favourite brands, and you can earn a commission when anyone buys through your link,” she adds. Affiliate marketing isn’t the only way, as sites like Google AdSense allow you to make money from advertising every time someone visits your site.
Write a book.
Self-publishing means you can put your ideas or stories into words and sell with minimal upfront costs. Creating an ebook has never been easier. There are many free tools, like Canva, that allow you to design your book, and sell it for free on places like etsy, payhip, or even Amazon. Amazon’s Kindle Direct Publishing (KDP) allows you to self-publish your book (even in print) in 10 countries, and can pay you royalties of up to 70%. “KDP gives everyone an opportunity to create simple planners and journals with no upfront running costs. It means you can build a passive income around your current commitments,” says Claire Clarke, a self-publishing consultant.
Passive income isn’t always an overnight success, and it’s important to research your options to make sure you’re prepared for the financial and time commitments. However, with proper planning and research, it can allow you to combine your passion with profits!
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