Business Tip - Create Scalable Revenue
Business Tip - Create Scalable Revenue
From a conversation with Josh Spector
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Identify one scalable revenue stream for your business that you could sell millions of times while you're sleeping.
I was a guest on Josh Spector’s new “I Want to Know” podcast recently. One fascinating topic we discussed was scalable vs. non-scalable revenue.
I’ve worked with Josh before when I hired him as my newsletter coach for a few months. He’s my go-to expert for all things related to building and monetizing an audience.
Non-scalable revenue (or income) is how many of us make a living. We work for a specific number of hours every day, and we get paid for that time (either hourly or on salary).
Any revenue stream that requires your active time working for an employer — or selling a product or service — is non-scalable by nature. You have to eat and sleep every day. There are only so many hours in a day and days in a year. So, your earning potential has a ceiling.
Scalable revenue comes from selling things that don’t depend on your active time to make that sale. Josh doesn’t like the phrase “Passive Income” because so-called passive income requires a lot of upfront work to create the product, and some ongoing operations, maintenance, refinements, and monitoring, of course.
But, it is scalable. Once you’ve created whatever it is you're going to sell (especially digital products), you can sell it millions or even billions of times with little extra effort required. Or, once you’ve invested in something you can “rent” (e.g., property, ad space), you’ll make money while you’re sleeping. This includes:
Books (print and ebooks)
Music
Digital art, photography, videos
Information products
Courses
Digital downloads
Software
Website hosting
Advertising
Sponsorships
Affiliate marketing
Memberships
Rental property
So, what could you create once and sell millions of times forever? What could you invest in creating or owning that you could rent forever?
I don't know about you, but I get really excited about scalable revenue (aka passive income). I hope the thought inspires you, too.
Larry Cornett is a leadership coach and business advisor. If you’re interested in starting your own business or side hustle someday (or accelerating an existing one), check out his “Employee to Solopreneur” course (launching later this year).
Larry lives in Northern California near Lake Tahoe with his wife and children, and a gigantic Great Dane. He does his best to share advice to help others take complete control of their work and life. He’s also on Twitter @cornett.