Are you looking for passive income ideas to grow your practice reach? Are you wondering how “passive” a passive income really is? Are you ready to build passive streams of income so you can work less and earn more?
Why Diversify Your Income?
We all have a different number we need to hit for our particular lifestyle or needs, and there is no shame in whatever that number is. Whatever dream you have – honor it. Then get the creative juices flowing to decide whether adding a passive income stream to your practice will help you grow your reach and achieve your financial dreams.
Generating multiple streams of income can have a significant impact on your finances. For those in private practice, an additional stream of income can help you achieve more income, time, freedom, and energy for a better life/work balance.
Build Passive Income and Stop Trading Time for Money
It can be easy to get stuck in the loop of trading time for money. Now is the time to shift from a limited mindset to a mindset of abundance. Adding income streams to your practice is possible.
- Expand your thinking to explore what your life could look like if you had diversified streams of income.
- How would you feel while seeing the clients in your practice?
- What would it give you in terms of your day-to-day life? (Less stress? Freedom? More time with family?)
- Fast forward a year later. If you did develop a passive income stream, what would be different? What would you have had to let go of to make that happen?
Are You Ready to Add a Passive Income Stream?
We hear a lot of private practice owners say that they want to create a “passive” stream of income. While the idea of a “passive” stream of income is a myth initially. Creating something of value and putting it out into the world carefully crafted to transform the lives of your ideal clients takes a lot of time and effort to create and to keep current.
Take Our Quiz to Find Out if You’re Ready to Build A Passive Income Stream
- I have a business plan for my private practice
- I have an effective long-term marketing plan including effective brand messaging, a killer website with a strong lead magnet, and valuable ongoing SEO content.
- I understand the financials of my business including my gross and net income
- I have already outsourced and automated the business tasks of my practice
- I have a cash reserve for hard times
- I do not feel panicked or desperate about my private practice
- During slow times, I have proven systems to get my phone ringing again
- I can survive on my current income
- I get consistent referrals to my private practice
- I have the time, energy, and money to create something new
If you’ve answered “yes” to 8 or more of these items, you’re likely ready to launch a new stream of income.
If less than 6, you might not quite be ready – but fear not! Now is the time to stay motivated, and focus on growing the reach of your practice. We can help.
If You are Not Quite Ready for a New Passive Income Stream
If you are not quite ready for an additional income stream, there are plenty of other opportunities to grow your reach to increase your income. Now is the time to get your house in order and make some changes within your practice so you’re then ready to add an additional income stream down the line.
There are generally three ways to increase your private practice income:
- Raise your fee
- See more clients
- Create an additional stream of income
Let’s look at each of these more closely with some examples:
Raising your fee
Private practice owner 1:
- Works 50 weeks per year
- Charges $130/hr private pay
- Sees 20 clients/week
- Gross income: $130,000
Private practice owner 2:
- Works 50 weeks per year
- Charges $120/hr private pay
- Sees 20 clients/week
- Gross income: $120,000
You can see how increasing your fee by only $10/hour results in a $10K gross annual increase in your income. That’s quite a raise!
Seeing more clients
Private practice owner 1:
- Works 50 weeks per year
- Charges $130/hr private pay
- Sees 25 clients/week
- Gross income: $162,500
Private practice owner 2:
- Works 50 weeks per year
- Charges $120/hr private pay
- Sees 25 clients/week
- Gross income: $150,000
While increasing your client load also leads to an increase in income, there is also an increased risk of burnout or not delivering your best services.
It is worth considering how shifting your current practice setup in terms of your fees, hours worked, and client caseload could change your bottomline. Ask yourself: what would help you make these changes?
Improving your marketing
Another consideration before spending the time, effort, and energy to build your next greatest thing should be whether you are maximizing your efforts toward marketing your practice.
What else could you be doing for your practice to increase your bottomline?
- Do you need a better website that will effectively convert leads?
- Do you need to invest in more effective on-boarding systems?
- Do you need an effective lead magnet and sales funnel to nurture leads and build a powerhouse email list?
- Do you have a strategic long-view marketing masterplan?
If you have marketed, outsourced, built, and converted and realize something still needs to change to earn more, creating a passive income stream can help.
If You Are Ready for A Passive Income Stream
If you’ve arrived at a place where your current stream of income is stable, and you have decided that you have the time, interest, and space in your life to create something new… It’s time to figure out what your big juicy offer is going to be. Keep reading for some ideas!
What are good passive streams of income?
Keep it simple – pick one thing. Too many options are confusing and could actually backfire and overwhelm your clients leading to indecision and lost sales.
Offer value – how will this offer transform the lives of your clients? Discover the “why” of what you want to offer, then articulate the value in your launch and marketing materials.
Play to your strengths – When considering what type of additional income stream to offer, think about what type of medium makes you feel most comfortable. Do you enjoy talking and making videos, or maybe you’re more introverted and really shine writing behind the computer? Think about what vehicle will best support your offer and your strengths.
Hire a professional – Once you have your idea, think about what part(s) need outsourcing to put your best professional foot forward. Maybe you need a new website designer, or maybe it’s time to go meta and take a course on course creation. Whatever you’ve chosen to do will likely require some financial investment and delegation to grow your idea into a true money maker.
Ideas for Passive Income Streams for Private Practices
Courses: Do your ideal clients continue to present the same problems or questions? Courses are great if you love teaching. You can create the course and sell it while you sleep straight from your private practice website. (Stay tuned for an updated version of our popular course that teaches you step-by-step how to create a course start to finish.)
Digital downloads: Share your expertise and make “passive” income by creating and selling worksheets, videos, or templates straight from your website.
Speaking and presentations: You can get paid to speak. Consider where your ideal client hangs out, and inquire about paid speaking engagements. Some ideas include contacting your professional associations, local memberships, or others with large followings who also service your ideal clients.
Books: Do you love to write and have a message to put out there to inspire your ideal client? Ebooks or good old fashioned hard copies can sell while you sleep but also take time to create. There are also costs to edit, design, and sell.
Retreats: If you want to reach a larger audience and enjoy teaching to larger groups, retreats can range from half-days to multiple days. The financial investment can vary depending on the size of the event. Example: mindfulness retreats
Group practice: Another route for an additional stream of income is to form a group practice. You can bring a community of like-minded professionals together, employ a team, sublet office space, and experience mentorship opportunities.
Common Mistakes to Avoid in Passive Income Streams
Creating passive income streams can be exciting, rejuvenating, and gratifying. There are also some pitfalls to avoid including:
Skipping a marketing strategy
Don’t just plop a new service on your website and call it good. You will want to develop a marketing masterplan to launch a new service including a lead magnet, sales funnel, and SEO.
Pricing it wrong
Value what you have to offer and your sweat equity. Remember your bottomline, and find a balance between serving others and caring for yourself.
Not describing the value
Communicate your expertise and value proposition appropriately. Describe what people will get from your offer and how it will transform their lives or businesses.
Growing Your Private Practice Reach
If you are ready to invest in creating a new semi-passive stream of income, look no further. I have helped hundreds of private practices just like yours learn how to diversify their income streams. I know what works.
Contact me today, and let’s grow your reach.
