After 7.5 years in business, we wrote: Passive Income—the Hurt, Harm, and Broken Promises as a part of our Unhidden email series.
Here’s why: Passive income is defined as, “Money being earned regularly with little or no effort on the part of the person receiving it.”
And yet ... no business model in the world will ever *keep growing and improving* unless you continuously lead it, update it, strategize for it, market it, sell it, and care for it. So instead of chasing after “passive income” and wondering why it’s always, always, always out of reach … here’s what we recommend focusing on instead:
- Recurring revenue (i.e. “revenue that is predictable, stable and can be counted on in the future with a high degree of certainty”).
- Exponential revenue (i.e. a NEW term we came up with to describe revenue that doesn’t need you—as the business owner—to be the only one marketing, selling, and delivering the offering in order for it to succeed).
There are many real-world examples of recurring revenue, including online courses (with monthly payment plans), membership sites, service plans, coaching/consulting retainers, SaaS (software as a service), product subscriptions, etc.
But what fascinates us most of all is exponential revenue. Exponential revenue allows you, as the CEO, to approach your current business model and revenue streams with an all NEW perspective by asking the most important question of all: How can you remove yourself from marketing, selling, and delivering everything yourself?
So often, we approach pivoting/adapting (i.e. a natural part of business growth) as an “all or nothing” thing—one that will require us to burn our entire business to the ground in order to create something that really “works.”
But in our experience, “burning it to the ground” isn’t always the answer. Especially when, more often than not, burnout and broke isn’t the revenue stream’s fault … but a structural problem found within the marketing/sales/delivery process.
This is why we created this “real revenue” worksheet for you.
And why we’re recommending such resources as:
The Pumpkin Plan
The 80/20 Principle
The E-Myth Revisited
Profit First
Because yes, building a business takes active leadership and care. But “active” leadership does NOT = you doing everything yourself and sacrificing your sanity, health, relationships, or integrity in the process.
Think about it this way. There are multiple ways you can make $100,000 a year.
- You could sell 10 offerings at $10,000/each.
- You could sell 100 offerings at $1,000/each.
- You could sell 1,000 offerings at $100/each.
All three options add up to the same 6-figure revenue.
Then, when you factor in recurring revenue and exponential revenue, those numbers become even more attainable.
For example: You could sell a $1,000 offering with 10 payments of $100 (recurring revenue). And you could sell that same $1,000 offering alongside a lean team + some strategic systems that allow you to market, sell, and deliver that offering with a high level of excellence AND *without* you being the one responsible for every single task.
So with all of this in mind, it’s time for you—as the business owner—to analyze and realign what’s currently working (and not working) within your revenue streams.
During your CEO time this week, choose one “brainstorm sesh” from the list below and talk it out, write it out, or record yourself sharing your initial thoughts/ideas/answers. It’s important you do not self-edit, but allow yourself the freedom to brainstorm without judgment, guilt, or shame.
Brainstorm Sesh #1:
- How can you outsource, automate, and remove tasks from your plate?
- Who are you going to outsource to?
- Where can you automate?
- What can you remove?
Brainstorm Sesh #2:
- Start tracking your time (with an app like Toggl) and money (with resources like Mint, Freshbooks, You Need a Budget, or EveryDollar). Then, analyze your data.
- Where/how is the money coming in? Where/how is the money flowing out?
- Where can you raise your prices and decrease your overhead?
- Where/how are you personally overdoing, overgiving, and overcommitting?
Brainstorm Sesh #3:
- Does your current role within the business elevate your “zone of genius”?
- Are you 100% responsible for marketing your offering right now? If so, what tasks can you remove from your plate and outsource/automate, while still offering a 5-star experience?
- Are you 100% responsible for selling your offering right now? If so, what tasks can you remove from your plate and outsource/automate, while still offering a 5-star experience?
- Are you 100% responsible for delivering your offering right now? If so, what tasks can you remove from your plate and outsource/automate, while still offering a 5-star experience?
Brainstorm Sesh #4:
- Which revenue streams do you currently invest in?
- Which revenue streams are the most predictable?
- Which revenue streams are the most enjoyable?
- Which revenue streams are the most stable?
- Which revenue streams are the most profitable?
- How can you pivot/adapt so that your revenue streams allow you more opportunities for recurring and exponential revenue?
Brainstorm Sesh #5:
- Do you feel any guilt/shame for wanting more for your life?
- Do you feel any guilt/same for wanting more from your business?
- What “stories” or “old tapes” play whenever you think about making more money?
- What are the generational financial patterns within your family?
- What are the societal financial pressures you feel/carry?
- How has our culture affected your view of money, time, outsourcing, automating, or your role as a leader?
Next Steps:
- Schedule “CEO time” in your calendar and do NOT miss this commitment to your business and yourself. Above everything else you do, CEO time should be your #1 priority.
- Email us or message us on Instagram letting us know that you’ve committed to “CEO time” (so we can celebrate alongside you).
- Forward our Passive Income—the Hurt, Harm, and Broken Promises email on to a friend, colleague, or client OR share your favorite quotes/takeaways on social media!
With all our love for you,
Elise + Scott
Co-Owners of My Own Irresistible Brand
Co-Hosts of Nobody Talks About This