For most of us, I imagine that the primary reason we went into freelancing wasn't because we wanted to get rich, it was because we wanted the freedom to use our talents and enjoy our day to day work lives. Getting rich would be a great side effect - but freelancing isn't necessarily a fast track to financial wealth. To make money as a freelancer, you have to have clients: you have to have work to do. No work = no money. No money = no independence.
Workloads are going to ebb and flow. Sometimes you'll have more clients than you know what to do with, and sometimes you won't have any. Sometimes, especially when you're first starting and don't have a huge savings account, you might wonder how you're going to pay your rent this month. Sometimes you might not even be able to. What then? Take an advance on your credit card? Get another job? Give up?
The key to making a steady stream of money as an independent contractor is much like the key to any other financial risk averting behavior: Don't put all your eggs in one basket. Diversify. Have income from a lot of different sources.
You might have read my post "The Five Truths of All Top-Level Freelancers". You'll recall that one of the five truths is that all top-level freelancers have profitable blogs and sell digital products.
This is called passive income and it's one of the most important things you can do for business if you want to be a top-level freelancer. Grab the Five Truths of Top-Level Freelancers Checklist over here to start outlining a passive income strategy >>
But wait.. how can you add a passive income strategy when you're already busting your butt freelancing? How do you have time to keep generating more, new income streams? How is one person supposed to do so much?
Well think about it this way: Freelancing is the opposite of passive income. Freelancing is an exchange of time for money. When you run out of time, you can't earn anymore money. Passive income, on the other hand, isn't tied to your time at all. So by carving out time to build a profitable blog and sell digital products, you'll be lifting on the cap on your earnings potential and freeing up your time in the long run.
Here are some examples of common passive income strategies:
These are just a few suggestions, and they having varying levels of viability depending on your current financial situation. The last one, however - selling a digital product - is one that can truly make a significant impact on your overall earnings and business strategy.
As a freelancer, you've already proven yourself to be smart, talented in your field, and capable of selling. That is a real recipe for success in many endeavors, not just doing work for clients. You can create products that will sell long after you finish working on them. The ideas are endless, but here are a few suggestions:
Whether or not these efforts become real money makers is up to you - but the idea is that you've already demonstrated you have the ability to succeed entrepreneurially, why not add to your repertoire?
Freelancing can be feast or famine - adding balance to your income through the sale of products not only will help protect you in the times of famine, but can also seriously increase the number of people (potential clients) that you meet and your authority on certain subject matter.
Not to mention, when you’re earning passive income, you’re freeing your time to do the things you really enjoy and lead a life that is more on your terms - which, if I had to guess, is why you started freelancing to begin with.
Now that I've convinced you, go grab the Five Truths Checklist I mentioned earlier in the post and start mapping out how you can integrate this strategy into your business and work flow. Get it here >>