Note that with an active income strategy, income is a function of value creation. If you only have one employer, one client, or one customer for a particular work product, then in order to increase your income, you have to work harder, or you have to charge more for your creations.
But with a passive income strategy, you have an additional leverage point. You can deliver the same value more than once and get paid for each delivery. As it turns out, this is a powerful leverage point.
When you start thinking about how to scale your work, you’ll often find that you could do the same core work but also serve more people than you do now. You’d simply need a different way to deliver your value.
For example, you could write software for one company and get a pay cheque from them, but you could also develop and release your own software that lots of people can download and use.
You could work as an attorney and see one client at a time, or you could create and sell books with your best legal advice, thereby helping many more people.
Think about the work you do right now. How could you modify your work so that you can provide your value to many more people?
Chances are that your employer is already taking your active labour and applying a passive income strategy to it. You do the work one time, and they leverage it to generate long-term streams of income. Or you may be working to support the system your company developed to deliver passive income and capital gains to its investors and founders.
Sales are the lifeblood of any business. If you sell to only one customer, that isn’t much blood, so you don’t have much of a flow going there.
To enter the realm of passive income, start questioning the wisdom of running a business that sells to only one customer. And start thinking about how you could scale up the work you do, so you can deliver the value you’re already capable of creating to more than one customer simultaneously.
Generally speaking, the way to create streams of passive income is to deliver your value to multiple customers simultaneously and to get paid multiple times. If you’re going to work anyway, then you’re already creating value for someone. Why sell to only one customer? Broaden your horizons, and realise that if one employer is willing to pay you for the value you’re producing, chances are that someone else would be willing to pay you too — if only you weren’t so clingy with your one and only customer.
Our goal is to find multiple income streams, and the more passive the better.