5 Passive Income Ideas to Make $10,000 Per Month in 2024
Summary
TLDRThe video discusses building multiple streams of income for a creative services business beyond just client work. It recommends hiring others to take on production roles so you can focus on higher-level strategy, relationships and opportunities. Additional income sources include affiliate marketing, speaking events, group coaching, information products leveraging your expertise, and even selling your creative assets. The key is to maximize your time and money, delegate the work you used to do, develop passive income sources, and build authority and influence in your niche.
Takeaways
- 📝 Building a business that generates consistent revenue helps counteract the feast and famine cycle, providing a financial cushion without needing to expand the team or chase more clients.
- 💰 Diversifying income sources insulates a business from market fluctuations, industry changes, and the emergence of disruptive technologies, ensuring stability and growth.
- 📌 Transitioning from trading time for money to trading money for more money, through investments like stocks or real estate, can significantly increase financial returns.
- 💸 Investing surplus money into vehicles like stocks or real estate can turn passive income into a major revenue stream, offering both security and the opportunity for wealth accumulation.
- 🔧 Hiring people to do tasks you're currently handling yourself is a strategic move to buy back your time, allowing you to focus on more value-adding activities.
- 📦 Transitioning from a sole proprietor to an entrepreneur or agency owner involves managing a team and delegating work, which can scale your business and increase profitability.
- 💭 Developing alternative revenue streams, such as creating content for YouTube, can lead to passive income through avenues like AdSense and affiliate marketing.
- 🚀 Leveraging your expertise to become an authority in your field can lead to opportunities like speaking engagements, which further amplify your business and income.
- 📈 Documenting your insights and methodologies into products such as books, courses, or digital tools can create new revenue streams and strengthen your brand authority.
- 💵 Establishing a business model that includes consulting and coaching can significantly increase your hourly rate, providing a lucrative alternative to traditional income methods.
Q & A
What is the concept discussed for generating revenue during slow business periods?
-The concept discussed involves finding alternative ways to generate income that can insulate a business against fluctuations and downturns, ensuring a steady revenue stream even when the primary business slows down.
Why is it important to develop a cushion for your business?
-Developing a cushion for your business is important because it helps to alleviate the feast and famine mindset, providing financial stability and extra income without the need to expand the team or chase more clients, thereby reducing panic during downturns.
What are the risks mentioned that can affect business revenue?
-The risks mentioned that can affect business revenue include clients going away, industries changing, and disruptive technologies emerging that can take away your revenue source.
How can trading money for more money serve as a business strategy?
-Trading money for more money, through investments like stocks or real estate, serves as a business strategy by utilizing surplus funds to invest in vehicles that can generate additional income, thus leveraging financial resources for growth.
What example is provided to illustrate a bad investment decision?
-An example provided to illustrate a bad investment decision is selling stock in a company like Apple in 2008, just before the market recovered, showcasing the potential lost opportunity for significant financial growth.
How does the concept of risk relate to potential reward in investments?
-The concept of risk relates to potential reward in investments by highlighting that investments with greater risk, like tech stocks, often offer the potential for higher rewards, but also come with increased volatility.
What steps are suggested to transition from a sole proprietor to an entrepreneur?
-The suggested steps to transition from a sole proprietor to an entrepreneur include hiring people to buy back your time, thereby allowing you to focus on higher-level strategic work and business development rather than day-to-day operations.
Why is it important to manage the spread between your charge rate and the cost of hired help?
-Managing the spread between your charge rate and the cost of hired help is important because it ensures profitability, covers the risk of hiring, and justifies the decision to delegate work, allowing the business owner to focus on growth.
What alternative revenue streams are discussed for creative professionals?
-Alternative revenue streams discussed for creative professionals include creating YouTube content for AdSense revenue, affiliate marketing, sponsoring brands, and developing digital products like courses or ebooks.
How can speaking engagements lead to further business opportunities?
-Speaking engagements can lead to further business opportunities by establishing the speaker as an authority in their field, attracting coaching, consulting offers, and generating leads for their business services.
Outlines
💡 Building Business Resilience
This segment introduces the concept of creating a buffer or insurance within your business to safeguard against slow periods, aiming to eliminate the feast or famine mindset. The speaker emphasizes the importance of developing additional income streams to stabilize revenue against market fluctuations and unpredictable changes such as client loss or technological disruptions. The speaker uses the example of Chris Franklin's video-based business to illustrate revenue variability and the necessity of planning for a decrease in business volume. The discussion includes strategies for generating passive income and the critical advice to start immediately, highlighting the urgency of adapting to ensure business continuity.
🚀 Diversifying Income Streams
This paragraph delves into the strategy of diversifying income streams beyond traditional client work. It explores the shift from trading time for money to investing money to make more money, using examples like stocks and real estate to illustrate this concept. The speaker encourages the audience to think about ways to generate income that do not solely rely on direct labor, emphasizing the importance of creating a financial cushion. This includes building a business model that can sustain itself and grow over time, offering a safety net that allows for more strategic business decisions and financial security.
📈 Leveraging Time for Growth
The narrative moves to practical steps on how to transition from doing all the work oneself to leveraging others' time to grow the business. The speaker discusses hiring practices, focusing on roles such as video editing, to free up the business owner's time. This part emphasizes the importance of valuing one's time above the cost of hiring others and the shift from a sole proprietor mindset to managing a team. The goal is to work less on the day-to-day tasks and more on strategic activities that drive business growth, thereby increasing both revenue and personal time freedom.
🌱 Expanding the Business Model
This segment explores the expansion of the business model to include hiring and managing a team. It emphasizes the transition from working individually to running an agency, focusing on connecting creative talent with clients. The speaker discusses the risks and rewards of hiring, the process of training new hires, and the importance of delegating to scale the business. The discussion includes strategies for identifying leadership potential within the team and structuring the business to maintain a standard of quality while growing.
🔍 Focusing on High-Value Activities
The conversation shifts to prioritizing high-value activities and the strategic importance of focusing on relationship building and business development. The speaker warns of the risks associated with delegating client interaction and strategic roles, highlighting the value of direct relationships with clients in creative businesses. This section underscores the importance of protecting the business with legal agreements and the necessity of maintaining control over client relationships and strategic direction to prevent potential conflicts and ensure business sustainability.
💼 Creating Alternative Revenue Channels
This part discusses creating alternative revenue channels through content creation and affiliate marketing, emphasizing the potential for passive income. The speaker outlines how to leverage a blog and YouTube channel to enhance SEO, attract clients, and earn through affiliate links and sponsored content. The strategy includes partnering with brands that align with the business's values and audience, demonstrating how content creation can not only support the business financially but also build authority in the industry, leading to more opportunities such as speaking engagements and consulting.
📚 Leveraging Expertise for Income
The narrative continues with leveraging one's expertise to generate income through speaking engagements, consulting, and coaching. The speaker outlines how establishing oneself as an authority can lead to paid speaking opportunities, which in turn can drive consulting and coaching business. This section emphasizes the importance of packaging and selling knowledge through courses, books, and digital products, highlighting the potential for significant income while providing value to a broader audience. The speaker encourages thinking creatively about monetizing the knowledge and tools developed over the course of running a business.
🔄 Building a Self-Sustaining Ecosystem
This final part ties together the themes of creating a self-sustaining business ecosystem that generates multiple streams of income through content creation, affiliate marketing, product sales, and consulting. The speaker emphasizes the importance of creating value at every step of the business process, from client work to content creation, and how every aspect of the business can contribute to overall growth and stability. The narrative concludes with a call to action for the audience to join a professional group for further guidance and to harness the full potential of these strategies in transforming their business model.
Mindmap
Keywords
💡Insurance in Business
💡Feast and Famine Mindset
💡Revenue Fluctuations
💡Alternative Business
💡Time for Money
💡Stocks and Real Estate
💡Hiring and Delegation
💡Affiliate Marketing
💡Passive Income
💡Agency Model
Highlights
Introduction to creating insurance in business to safeguard against fluctuations and slowdowns.
The importance of diversifying income streams to ensure stability and growth in business.
Highlighting the risks of not preparing for potential business downturns and disruptive technologies.
Strategies for video-based businesses to manage and increase revenue.
Understanding the importance of anticipating business downturns and preparing accordingly.
Discussion on transitioning from time-for-money to trading money for more money, highlighting investment strategies.
Insight into leveraging stock investments and understanding the risk-reward relationship.
The concept of using real estate as an investment to generate passive income.
Steps to buying back your time by hiring others, transitioning from solo work to running an agency.
The process of coaching and mentoring to fill the talent gap and elevate business standards.
The critical identity shift required to move from doing the work to managing and delegating.
Strategies for video editors to increase their rates and leverage their time effectively.
Understanding the value of relationships in business and how they impact brand loyalty and client retention.
Creating alternative revenue streams through YouTube content creation and affiliate marketing.
Leveraging speaking engagements and consulting as high-value, low-time investment business models.
The concept of productizing knowledge through courses, books, and digital products to scale income.
Encouragement to document business insights and strategies to create multiple income streams and products.
Transcripts
I want to introduce you to a couple of
key powerful ideas one is how can you
make sure you have some insurance in
your business when business slows down
and this is a really good idea because
it helps you to get out of the feat and
famine mindset to give you a little
cushion maybe a little extra spending
money every month that doesn't require
you to build a bigger team or to chase
after more clients if you're interested
stick around so this's this concept here
is that we're we're building a company
that is generating revenue for us so if
we look at a graph it'll look something
like this and
we'll talk about like this is the money
graph and this is time so what we want
to do is we're want to figure out
another way to make income that
insulates us against the fluctuations of
whatever's going on and this is
something I warn everybody about and
they never heed the warning and they
call me in a state of panic after the
fact so I say why weren't you listening
to me when I warned you about this
clients go away Industries changed
disruptive Technologies emerged to take
away your Revenue source and then now
you're CAU holding the bag and there's
nothing in it so you need to start
developing this today not yesterday
today okay here we go so Chris Franklin
you have a video-based business right
and so you're going to earn money and
this is kind of how your Revenue looks
okay if you do well this number will go
up if you do poorly it'll go down so the
way that we ensure against this because
we should just anticipate it going down
and act accordingly to assume that
you're going to lose say 25% of your
business how do you fill that so that
that that doesn't cause you to come in
State a panic and if your business grows
you have an extra 25% of money to sit on
top of that we'll just call peer profit
and so it's going to be some kind of
graduated scale so your video business
occupies this much in terms of Revenue
over time so the question is what can we
fill in here that brings it back to that
Baseline that you're looking at so
previously we were talking about
$300,000 a year in Revenue not in profit
everybody in Revenue so what we have to
do is fill it in so maybe the first year
it's not making that much much but over
time it starts to make a lot and this is
the really cool point when it reaches
the 50% mark this alternative business
that you generate you have to make a big
boy decision at that point you can say
to yourself should I invest more
resources into this alternative business
or should I just keep doing what I'm
doing and let this thing chill in the
background and that's a great thing
because you have choice choice is
powerful okay now what can we do to
generate more money without taking more
client work have to think about this
so historically speaking most of us do
this we exchange time your
time for money so what we're doing is
we're selling time for money makes sense
right that's why we get into this
mindset we're charging hourly there's an
hourly rate so x per hour or sometimes
we think about like x per
day but what I found that especially in
certain kind of communities let's just
call them rich people what people do is
they trade money for more money it's a
wild concept you trade money for more
money what are some examples that you
can think of where people trade money
for more money some simple examples that
everybody can understand stock stocks
that's excellent stock so you you buy a
stock or a future right that's what
they're called is you hope that the
stock grows in value that you've done
research you got a hot tip or you see
trend moving so you might invest in a
company like apple in
2007 the bottom of the market 2008 that
would have been a great time This
brilliant genius sold his stock in
2008 okay back to the show guys my
financial advisor says don't do it I'm
like bro get me out the Market's
terrible you remember when it crashed
and it started crawling up when it got
back to where I thought this is it I'm
out Steve job's going to die tomorrow
this company's going to happened I did
not see the genius and Tim Cook at that
time brilliant don't do as I I do do as
I say what's another thing that we can
do because some people say you know
stock is pretty volatile and the thing
about stock which will teach us a
valuable lesson is this what stocks are
most likely to go up faster than other
stocks does anybody know tech tech tech
is usually more volatile when we say
volatility we talk about risk right the
greater the risk the greater the reward
so the percentage of risk is often tied
to the percentage of the reward we
understand that right so if you do Blue
Chip like IBM or one of the things they
consider Blue Chip it's a pretty safe
investment it's going to move a couple
of percentages uh Blue Chip could be
considered Disney to and now Apple's
Blue Chip it's not so volatile but if
you got early in on Twitter you would
have made like a bandit and the earlier
that you can get in Pre IPO
round a I I don't know all my my
terminology here but you're taking the
most amount of risk because they haven't
proven Jack so when I interviewed Gary
vaynerchuk and I asked him what was the
best investment you ever made what's the
greatest return return of investment he
said Twitter so they're talking about
like a 100x return so if you put in 10
grand they're looking at 100% X in terms
of their investment and that's how
they're able to use their money to
actually buy more money so your job
right now if we can think about this is
to make enough money that you have
Surplus money that then you can use that
money to invest in other vehicles to
make you more money here's another one
that we all understand real
estate if you buy a rental
property you have the capital and
capital moves things because not
everybody has money you invest in real
estate and hopefully the property
generates money for you such that the
amount of money that you put in um you
get more in return so you're going to
pay down your loan quickly or you can
get cash over the money that you
invested so it becomes um income
property for you right that's what you
do now if we just understand these two
things we can apply this a lot of what
we're talking about so the first order
business is get your business right side
up so that you have excess money and the
first thing you do when you have more
money is you buy back what my time you
back your you buy back your time so
phase one is to make money so you need
to you need to make enough money Surplus
money I'll just put this right
you make extra money and you use that
money to trade for your time back so you
trade the money for time so now you have
free time that would be the first thing
how do you buy your time back because it
sounds like an impossible idea how do
you buy your time back you hire people
to do what what you used to do and in
this that's right let's look at you as a
a sole proprietor and we talked about
this in our last
video you do all the work you play you
we all the hats okay and eventually you
make a little extra money and you have
to think well would I be better off
giving a percentage of that money to
someone else to help me so that I can
buy back my time so let's talk about the
video or photography business we're
going to keep it on that theme today who
else could you possibly hire to do what
job for you that would then buy back
your time Chris a video editor okay an
editor that makes a lot of sense I think
we listed something like six rols before
editing seems like a pretty good thing
so if you were to charge a client let's
use some hypothetical numbers but keep
it based in reality what would you have
to charge in order for you to cut the
video
$3,000 uh over how much time over four
weeks oh that's a lot of time so four
weeks is 20 days right so that's not a
lot of money right so let's use more
round numbers okay I'm going to say
let's say you're saying two grand cuz
the numbers are easy easier okay and it
takes you a month so that's four weeks 4
* 5 is 20 so it's $22,000 for 20 days
worth of work now if we do the math this
sounds pretty terrible you're basically
making 100 bucks a day so the first sign
is this is not enough not in a in a
developed country right so $100 a day if
we work an8 hour day what does that work
out to be mo like 15 bucks mhm that's
less than that it's like 12 12 a 12 and
a half okay your basic working 1250 an
hour now if you were to get a job at
Starbucks how much money would they pay
you at Starbucks depends on where you
are sometimes it's it's like 50 bucks
isn't it yeah sometimes what does
Starbucks pay right now we should know
these things what does Starbucks pay
just call it 15 I think is where they're
at so essentially right now you're
making less than you would if you were
working at Starbucks right and we have
to have this healthy honest dialogue
with ourselves what we're really earning
versus the fairy tale that we tell
ourselves that we're making $2,000 when
we break it down is not that good so the
first thing you need to do is you need
to charge more to do this than what you
can make a Starbucks right right okay
all right so if we were to revisit this
scenario how much money do we need to
make a day for it to be like reasonable
given our living expenses what do you
guys think I think the original question
was how much would it take for Chris to
be the one who both films and edits I
would call it on one shoot 10 grand
that's just me well let's let's go so I
don't have to do all the fancy math how
much a day it's 15 a day yeah like just
how going that be for two grand for for
four weeks I I'm trying to figure out
where the question was going and I was
trying to give you a
general round number if the truth the
truth of it is it takes us if we're
doing this in pure hours I'm going to
charge you
$88,000 and I'm going to give you your
video
back within seven within seven working
days is the is the like the actual
numbers of it all let's work the way the
question the way I asked you because
it's going to be too hard for me to sit
here and unpack all this stuff okay
if somebody wanted to hire you hey Chris
stop shooting I need you to cut this
video how much is it to book you for a
day for real for real the real number
here $2,000 a day yes for editing how
come your rate just keeps going up I
don't know an editor I got to pay 2
Grand a day no editing a video is so
vague to me that's why I'm trying I'm
just trying I'm just by your time okay
how much does it cost to book you for a
day if it takes you 17 days that's what
I pay you okay that's what I'm talking
about around okay what is the day rate
for an editor I hired a lot of editors
for a good editor it's about $500 a day
that sounds about right they work
anywhere from 8 to 10 hours a day
perfect Richie bringing us back to
reality beautiful okay thank you I live
in value land over here like what
problem don't try to get ahead of the
game you killing me this this is what we
need to know average rate in Los Angeles
is about $500 a day that seems about
right to me you can get fancier you get
a little scrappier you can go up and
down a little bit but that sounds about
right to me in Los Angeles okay cuz some
people are going to freak out because we
have an international audience where
people make literally $1 an hour okay so
average is that so if they wanted to get
you Chris Franklin what would you have
to charge in order to make it make sense
for you what would they have to pay you
to get you versus an average guy um
proba if I have the delegate it's
probably $800 to yeah I think that's
about right so like 8900 let's Call 850
okay absolutely all right so you need to
be here at 850
a
day and everybody use these numbers
scale them up and down it's all relative
right it's not quite double but it's not
like a 50 B $50 more this is and people
are a little silly like let me just add
$10 to this I'm going to be rich it
don't make any sense okay so this is
what it gets what what you're going to
have to charge to get Chris Franklin so
here's the Trap that people fall in like
I'm getting $850 a day why am I give me
some mother app for 500 I'm just going
to keep it because that's a lot of money
I'm going to do just fine and what else
am I going to do you know mow the lawn
what am I going to do so you hold on to
the money and you give up your time so
what you have to do is you have to buy
back your time because your time is the
most precious thing that you've got okay
the classic thing is you can make more
money you cannot make more time so use
your money to buy back your time okay so
if you know what the market rate is for
someone who's good and good is just good
enough to meet your standards not
Academy award-winning editor you
understand that okay and the spread
between this number and this number is
what is going to drive your decision as
to whether or not you need to hire
someone I just want to stress the point
that you made in case some people in the
audience rewind again and listen to this
you have to make a very critical
decision here as a as a creative which
is you are no longer the one who does
the work meaning there's a lot of video
editors watching there's a lot of
videographers watching designers
watching it's like I'm the only one that
can do the work no you were
transitioning into becoming a business
bus owner at this point cuz I think
sometimes they hear this and it's like
well doesn't what am I going to do then
like literally we're going to get into
it what am I going to do Mo the LA but
they there's like can you just stress
the identity shift that one has to make
when they enter this Arena of like you
are no longer selling the fact that you
are the one who does the work you are
selling the fact that you have the
business that achieves the result of
that work so cuz or else they're not
going to be able to do this I don't yeah
I understand he needs to move from a
sole proprietorship yes or so preneur to
an entrepreneur to run an agency where
he's the agent for a lot of different
talented people and he's connector and
there's a lot of value and Power in this
and I think it's where you want to move
I'm not going to get into the ethical
moral debates about whether or not you
can profit from other people's labor
that's a video for another hour not
today Okay so we've we've made this
decision we're going from solo prur to
entrepreneur right and we're going to
create an
agency and we said in the last video
You're an agent to connect things okay
so on one hand you have
buyers of creative services on the other
hand you have makers so you need to
connect buyers and makers because they
don't know each other this is you you're
the
agency make sense makes sense okay so in
order for you to make this make sense
you have to cover the spread because
there's some risk in here that's
involved remember we talked about risk
with risk comes reward why is it risky
to hire this person what if flck out
what if they don't do the work What If
you hired the person that you thought
could cut you uh funny comedy videos and
they turn out they want to do
melodramatic films now you're screwed
you can't go back to your client said I
hired the wrong person they're going to
say what that's your problem not my
problem okay and they already accept
this that there's a certain amount of
risk as a business owner as an agency
that you take on that's baked into your
price you don't even need to tell them
telling them says I'm new in business I
don't know what I'm doing or I'm going
to patronize you and teach you how
business is done the chances chances are
if they could afford to hire you they're
better business person than you are
meaning they've already mastered these
principles not always but most likely
unless they inherited a lot of money or
they won the lottery okay so this is
what you need to start thinking about so
you're going to use your money to buy
your time back and so you're going to do
something very valuable that move moves
economies forward and I'll tell you why
this is really important for you to
understand so you give them money and
they give you labor it's how it works
and I'll tell you why it's important
because some of you think it's
exploitive to do this well guess what if
you're this person and you have no money
you'll be thrilled and delighted and
Overjoyed to be able to have the
opportunity to work with somebody so we
want to cover one other concept it's
called the talent Gap so you're like
well if you charge $800 or
850 there's no way this other person at
500
can do the same kind of work you can
that that might be the case but I know
there's lots of people who are really
talented but don't have opportunity or
don't want to work with clients don't
want to manage things don't want to take
on risk or cannot afford to take risk
but there is a talent Gap and what you
do is you need to coach them up through
ART direction or creative Direction and
tell them here's how I like to edit
videos here are my setups here's my
process and the way that you manage them
is you ask them to Shadow you here's
what I do and you're going to give them
a couple of tests okay I'm going to try
you out on a project just give me a
day's worth of work I'm going to teach
you what to do and the day let's review
and you keep testing testing until it
becomes abundantly clear this person is
easy to work with takes Direction well
is prompt has great communication skills
has a great freaking attitude and based
on that you can say why don't we advance
this relationship to the next level so
we start start them out with a trial
where we train them and we advance them
towards something where it's
semi-permanent you can book them for
longer periods of time and then at some
point you're like why don't we tie the
knot why don't we make this for real
real let's put them on staff and you
hire them full
time and it could be at some point
you're going to hire two three of these
people so we're going to clone them
right staff
two staff
three is this getting cut off no you're
good okay and one of them is going to
show leadership potential one of them is
going to show initiative it could be
multiple but based on a number of
criteria ease of work
professionalism um good client skills
great communication skills you're going
to promote one of them and th those that
one person is going to manage the other
two people so they're into a management
position so they edit a little bit but
they now do what you used to do which is
you know what your edits here here's
what you need to do to make it here
because we're selling a standard of
quality here or a style or something
like that does that make sense makes
sense okay so now if you continue to do
this you look at every role that you do
and you start to get rid of all
non-essential roles non-essential roles
is a role that only you can do right now
everybody's going to think oh I can only
it's got to be me to do all these things
I know that it doesn't doesn't the
essential role happens to be over here
it's usually on this side which is some
things like leg gen sales strategy maybe
like General Vision for the company
mapping out where you're going to be in
the next two to three years right those
are roles that are hard to delegate to
other people can I jump in here and just
ask for those in the audience that
actually for even even for me like what
if you what if that's not the role you
want to play in is it okay for me to
assume a role that is in the production
Arena right and get somebody who can do
that other stuff just like I would hire
an editor is that okay that is totally
okay we were talking about um Noah Kagan
he's like I don't want to run the
company I'm not sure I'm good at it and
I don't want to become a horrible person
so I need to hire someone else I don't
hear that many stories where that works
out and he's shrewd enough to set up a
deal where both people were benefit from
it I don't think he had to give up part
of his company and he was able to
compensate um amen for a period of time
and nean was able to help him build the
company but more often than that you get
people who aren't that good who aren't
that motivated and you just run in
circles basically right and then you get
really frustrated I hear more stories
where it doesn't work out than it does
work out generally speaking here's the
problem if we say where is the value in
the value chain is it someone who's
closer to the buyer or someone closer to
the maker what do you think it is the
buyer for sure the buyer so if you hire
people to do lead genen sales and
strategy and vision they have all the
power because you know what they've been
working with Mr and Mrs client and
they're like hey you need to pay me more
what are you going to do
now soon you'll be working for them
right what a genius setup you
got okay one of the beautiful things
that makes it possible for Noah to to be
able to do this is because he owns the
IP and owns the brand it's a software
sort of company right or it's a
Marketplace so it's not dependent on any
person but when we get into a creative
service business it's really about the
relationships no one is going to the
brand okay and I want to prove it to you
because something has happened recently
with one of my friends he had been
working with his partner for a long time
nine years it was understood that they
would come to a partnership agreement
where he would own a percentage of the
company so he wakes up one one day and
he's like hey you know how we've talked
about this we've never made it official
I'm concerned what if you die right what
happens to me I literally own 0% of this
company and I've been for the last 9
years hustling to build the brand okay
let's call this company Acme that's not
the real name of the company right the
Acme Corporation okay so he thinks
there's a lot of brand equity in this
name and lo and behold after bringing up
the issue with his partner the person
actually owns the company the partner
decides you know what you're not my
partner at all we're going to sever all
ties unbeknownst to him he's kicked
out all emails been shut off he hasn't
even have access to service the people
he already has a relationship with so
he's kind of L that in the cold and so
he and I talk and we're chatting he goes
Chris I've been putting all the work
into this
brand I said do you think that brand is
valuable he goes I don't know what you
mean well what is the strength of a
brand the loyalty of the
customer is the Loyalty in you so I'll
draw representation of
him or is in the brand he goes I don't
know I believe it's to me and so what
happened is he reached out to all of his
previous clients via a different Channel
and let's say there's a 100 of
them how many people stayed with Acme
and how many people went with with this
guy what what is your guess 90% WR with
him
90% 75% 75 good yeah 75 okay if you say
75% or whatever per that means the brand
is worth something and he's worth
something you know what how many people
went with him 100 no 100 wow why do I
want to tell you this story there's a
lot of things to learn from the story we
think because there's a label in a
company with a federal tax ID number
that the value is there where's the
value in the relationships in a
service-based business that's almost
always in the relationship I have story
after story to tell you where somebody
gets screwed from the corporation they
leave and the whole business follows
them because it's in the relationship
now you're like why are you telling me
stories is it because I like to tell you
stories well look at this you're here as
the agency owner you're going to put
somebody who's going to have all the
relationships that is the danger in
which you are going to look at hey
what's up featur donation I'm an eagle
driven person it hurts me that there are
other YouTubers who I think deliver less
value consistently that are
outperforming this Channel and you know
why cuz they have folks on their Channel
hitting subscribe can you do me the one
favor hit subscribe right now I'm not
saying 100% that's what you're doing
right because the salesperson sells you
you're the star you're the hero but
you're banking on a lot where the client
understands
that okay so that when you're or lead
gen sales executive producer type person
leaves that they're going to say no this
was always about Chris Franklin right it
was never about you right the unique
thing about my friend is he had the high
touch he was the one servicing some them
so it was no different right right so
there is some trickiness here so I
believe when this person leaves because
they'll leave because they're ambitious
they're driven that's why they're in
this position some will stay and some
will go that percentage won't be 100%
but it won't be great yeah because you
know we're trying to hold on to every
client that we work for this is
important so how you manage this this is
this if you want to go down this rout
we're going to have a non-disclosure
agreement we're going to have a
non-compete
Clause okay we're going to have a
non-poaching clause you cannot poach
clients or staff if you do you've
breached it I'll sue you and they'll
sign at the beginning because you have
all the leverage but you're dependent on
some pieces of paper to make this work
work right right okay cuz that person
could just sit there and if the other
client calls them and they haven't
solicited them oh called the non-solicit
Clause they didn't solicit I'm like I
have done no wrong they reached out to
me all I said is I'm leaving I'm no
longer there so then you get into grade
like I got to sue them and you're
running a creative business not a legal
service right so you have to think about
that okay so we understand the concept
we're able to then charge more because
we're taking risk we're managing people
and your job now is to build
relationship with buyers and to find
more makers more qualified makers right
does that make sense right is maker a
bad word no I love maker okay personally
okay that's what you need to do because
every once in a while you're going to
need this specialist that specialist
this person does this so you need to
build up a database of people that you
can call upon uh some people work
weekends some people have families to
manag and they're all degrees of talent
so what you do is you create a
card this this is Mary and Mary gets
this many stars for for skill and this
many price tags for like what Mary cost
and this might be primary and secondary
specialty specialization okay and you
might add in other information like
availability uh any special notes about
personality and probably link to their
work so you want to build these cards
for as many people as you can because
you cannot rely on one or two people to
do the work make sense everybody makes
sense all right mhm good good all right
let's move on now the old model is we
just keep doing this again and again but
we're talking about building a new model
so what can we do as a creative services
company to build something probably
product based or something else that
where we don't have to sit there and
sell to anybody I'll give you a clue so
Chris you already currently do YouTube
content so we know that you're creating
a YouTube video or YouTube channel you
have a YouTube channel right and you
create videos and we said like maybe two
or three a month yeah okay so he doing
two or three a month you get good views
on these videos yeah it it varies but
okay yeah decent decent decent views so
there's a couple things that we need to
do so what we want to do is we want to
start to create alternative channels of
Revenue more affectionately referred to
as passive income okay and people are
like w there's no such thing as passive
income kind of there
is there is it doesn't mean you don't
have to do any work but you don't have
to work so hard for it okay
MH so the revenue that you can create on
YouTube via AdSense or any these other
platforms like from Tik Tok to Instagram
or Facebook comes from views so what
matters is views right it matters a lot
the demographic that you attract and
depending on who you attract you get
this thing called the CPM a CPM is cost
per thousand m is from Roman numerals I
think m is a thousand right because
you're like shouldn't be million I think
it's cost per thousand do you know what
your CPM rate is I can look it up but I
don't know the top of my head uh I can't
guess I can't guess that's fine the
channels that make the most money have
certain things in common and I need to
just tell it to you okay number one they
serve an audience that's rich generally
speaking North America and Europe so if
you happen to serve poorer countries
where that's the majority of your
audience your CPM is going to be really
low because the annual income average is
pretty low they know that so advertisers
want people who can afford to buy their
products and services otherwise you have
to do a giant volume so North America
Europe that generally is the richest but
you know and the other thing is if you
teach them something your
audience that's related to finance
investment real estate those kinds of
things they generally will pay you more
because not only do they have money CU
they're living here they're actively
looking for ways to make more money
they'll get some really high cpms like
$36 CPM if you contrast that with say um
video game streaming they'll make $2 per
thousand so you can see on on scales of
magnitude if you have the same views you
need to have content that teaches people
fundamentally business skills on how
they can grow and make money because
those people have even more money than
the general populace okay make sense so
you need to kind of look at that okay
our channel does about $28 or something
like that CPM yeah so what we generate
in just making content that we love to
help the people we care about is
somewhere in the neighborhood of like
say $10,000 a month sometimes more do
you know mo off the top of your head 15
15 okay it goes up and down yeah it's
seasonal it's all kinds of weird stuff
so we do currently about 15K a month so
if you multiply that by 12 mon what do
we get because we do 12 months in a year
130 no 180 180 yeah Chris Franklin
bringing the math dude you're breaking
all kinds of stereotypes right now
brother hey yo no for real dude
Mississippi guy making videos just CR
he's like like Raymond over there he's
like Raymond definitely 18 180,000 you
are you a math wizard I love math oh my
God this is freaking awesome I I didn't
know this about you patterns yeah you
were cracking out the numbers before and
now I'm like it's for real for real okay
so the most we've ever made in a single
year was 360,000
a lot of people watching this like it
would be really nice to make 100K clean
profit okay that's just AdSense okay
here's where it gets really interesting
there's something called affiliate
marketing which I think you do right
right okay affiliate marketing is just a
very simple concept companies like
Amazon B&H and all these other people
they don't spend a ton of money on
Advertising they would rather pay you a
spokesperson to talk about a product to
review it to give your honest opinion
about it about what you like and what
you don't like and you can sell that way
here's the weird thing about how Amazon
works I think it's like four or 5% right
they'll pay you somewhere between four
to 5% until you sell more they will then
bump you up to the next range which is
like 6 to 7% and what's really cool is
there's this thing like it's cookie
technology so if you send a link to say
a lens or filter they go there and they
see other things as is the case often
and you can even buy cars on Amazon now
so your cookie is active for a few hours
it's not just for the time in which they
just touch it so I don't know what it is
these days right it's 24 hours okay
that's a good bit Richie tells us it's
24 hours okay I have a friend who does
who has an entire business model built
on affiliate marketing do you know what
he does a year $1
million $1 million so what he does is he
employs I think seven full-time writers
this is making you upset isn't it yeah
yeah I I see your body language you
doing think about it what are you doing
with your lives okay so he hires six or
seven full-time writers overseas who who
basically make no money really but in
their country they're balling right
because they're doing like eight grand a
year and they're they're like and I do a
white collar work I just sit there and
write right so he manages them the agent
who connects Talent right and so he
winds up selling a lot of adobe
subscriptions he's in the top tier of
people affiliate marketers who sell
Adobe subscriptions so not only does he
get the normal pay he gets bumped to
higher tier and guess what he has a
direct relationship with Adobe this is
freaking cool okay now I'm going to
introduce you the third concept and it's
all related to this okay this I just
learned this past week and I'm like oh
my god I've not been thinking right I'm
Chris Franklin like what what's wrong
with
me let's get this money why do I work so
hard for no freaking reason check this
out you guys this is bananas Gwen
Stefani ba give us the goods
man hey no more half singing no more
poorly constructed lyrics and off key
notes okay here's what happens remember
before when you were creating YouTube
content and we said you know what you
need Omni Channel Omni presentes and
you're going to create a blog page right
yes okay the blog page is not really for
readers but it is for SEO and it's also
to warm your audience up for leads okay
so what you have is you have your
episode okay and you have all this
description and people reading it so
you're getting lots of views to it what
are we doing over here huh huh affiliate
marketing down at the bottom call to
action hey book me for this right so now
eventually for certain keywords that you
care about you're going to be ranked top
10 in Google that's the goal and
apparently it is not that hard to do
that if you consistently put out good
quality content that's rich with SEO
that people want and are finding you for
the goal everybody top 10 organic which
we rank for for many many terms okay but
we're stupid we just want to work really
hard for no money okay so you have this
affiliate link I'll draw the chain here
okay it's really cool So eventually you
start moving the needle for the company
and they will take notice they will and
you'll know because all of a sudden
every month you're getting a bigger and
bigger check and at first it will be
nothing at first it was like it'll pay
for lunch and eventually it'll pay for
really nice dinner and then it'll pay
your car payment and then your rent and
now you're starting to move things
imagine what kind of affiliate numbers
you have to do to get a million dollars
okay so the math would be less than 100
Grand but pretty up there right so let's
say you're doing like 5K in affiliate
payout per brand well most of us would
just be happy to do the rain dance we're
pretty good but here's what you'd get
really smart you would call up cold hey
Brand you know I just got this check
from you I don't know where I rank in
the tier of affiliate marketers for you
but if you find valueing this I happen
to have a channel would you like to
sponsor the channel so now you get a
double dip on this thing this is the
thing that blew my mind crazy this makes
perfect sense and you don't have to do
just one because you what these long
articles have a lot of room for stuff do
you know what I mean there's a lot of
room and you know what people are like
hey Chris Franklin is an awesome guy the
future they're awesome people well if
I'm going to buy a subscription or do
this or that and here's the thing do not
get greedy here only promote and link to
products that you like and use this is
critical so we have to make choices we
love this brand we do not that's it okay
if you don't love it don't do not do it
because you will screw over the
relationship with your consumers so like
hey you recommended some books I talk
about books a lot of times check this
out Amazon affiliate to the book it's
not going to make me any money it's a
$30 book but it lingers for 24
hours that's the key so I say keep
shopping friends it doesn't hurt you it
only helps all of us I can do this okay
but the new move is to do the brand play
and get them to sponsor
you and now guess what you have a
relationship with someone somebody that
you could not get any other way because
you know what you started with an
exchange of value first cuz if you're
making 5K you could know that they're
making 50k or 500k and it's proof of
concept you're going to them literally
giving them money right so many of us
are too busy like can you sponsor me no
who are you again but if you move the
needle for them you want to sponsor me
absolutely okay let's keep moving on
okay there's a lot of things that we can
do here just just to generate money one
quick question so this kind of model
here is based on if you have like a
website where you're building a um like
a Blog where you're posting the YouTube
video on the blog you have the
description you have affiliate links
call to action at the bottom right this
is p going further than just posting on
YouTube is that correct just am I
understanding this correctly yeah this
was this was what we had this was what
we mentioned right when you stepped out
it was doubling it was basically
doubling down on how I can amplify my
SEO on my website so people can find me
because people in my area and people
outside of my area can't find me and so
this is making me visible in the old
days I'm talking about like six months
ago beging R days you know you would
have to like oh God I have to listen an
episode I got to write the article you
don't have to do any of that in the old
days you'd have to pay a transcription
service of some you know whatever person
sitting there typing it out for you
making sure you you got quality
assurance the new day it's happening for
you semi-automatically for almost no
money no money if you use these these AI
engines to transcribe this okay and then
you try to figure out how to summarize
in a way that's interesting for people
to read not just for SEO but you know
what it's there and so you have
additional benefit from this how do you
have additional benefit if you're high
an SEO for like podcast setups Dynamic
videos to help you convert on events
that you're producing or three things
event organizers miss when they're
looking at um video and social media
content guess what that's gonna draw
more clients it's almost like a perfect
loop it's a perfect loop I try to design
ecosystems that once you figure it out
it's
Infinity okay and you know what when you
call the brand to sponsor you things are
working by the way do you need people to
make your next Adobe Max video right cuz
I see these things all the time who's
making them for you happy with them what
can I do to so now you can be working
with the roads and the mackys of the
world right or the Cannons or the black
magic or Sony call me okay you can do
all that because you're proving to them
I mve the needle for you guess what
we're not done yet check this out we're
going to go back into the semi
alternative ways of making money okay
you start ranking you're moving the
needle for a subject right for a subject
that's aligned around a problem that
people are trying to solve when you
teach business owners not individuals
business owners which just say
businesses on how to use this creativity
to move the needle for their business
guess what they're going to do they're
going to ask for it they're going to ask
for something else they're going to
they're going to ask you to be a speaker
we'd love to invite Chris Franklin to
the stage uh in the last year he's shown
10 businesses how to quadruple there
their revenue their reach their
engagement through the power of video
etc etc and he's going to share his top
five key
insights now you make money as a speaker
so you're going to become Authority in
your space solving business problems not
creative problems using creativity and
so at first you might not make a whole
lot of money but eventually you start to
make real money especially because your
Channel's growing and your Authority is
growing and those two are linked
together so now they're going to pay you
some money let's just say a good goal
right now is you get paid $10,000 to
speak plus travel and hotel it's pretty
cool okay so you get paid that kind of
money but now you get to take advantage
of something that Erica needs talks
about something called the stage
effect this is where it gets really
interesting okay the stage effect is
this okay he says the quality of your
presentation times the size of your
audience equals your level of
attraction would you like to be more
attractive this is why there is this
Allure that speakers have because the
500 of us the 2,000 of us that are in
the audience the size of the audience
are looking at one person so you know
what you've already figured out how to
deliver the quality now that you're
invited you didn't even have to chase
the opportunities they're just going to
come to you and you've seen this all of
you have seen this some of you have done
this as soon as the speaker's done they
step off stage and there's a small group
of people who gather around them we'd
love to book you for our event how do I
work for you this helps you with uh this
part okay right right hey can we sponsor
you for
something can I hire you can you train
my
team so this will naturally lead you to
other ways of making
money naturally it's going to lead you
to
coaching and
Consulting we love how you set up these
things we want to automate our pipeline
we want to leverage everything this is
the way the world is moving we want your
help so now when you're doing consulting
your rate will be on orders of magnitude
more than it used to be for much less
output too like let's look at it from a
work production standpoint yes if I said
to you Chris Franklin um I just want you
to talk to me and I'll pay you $1,000 a
day would you rather do that work than
sit in front of the machine yeah yeah
easily okay I'm going to make it a
little bit better because when you're a
consultant you're going to charge $1,000
an
hour not a day people are going to pay
for your experience and your
knowledge to help them solve problems
this is super powerful you want to say
something I I live some of what he's
saying about this and have taken his
feedback on doing this even in my own
world like you have to be prepared to
assume a new identity for this to work
for this creative blueprint to work in
your life so I I deliberately left
coaching out for a reason okay because
you can do one onone
coaching which you may or may not be
able to command that kind of rate but
that's okay okay cuz we think Consulting
should be a little bit more than
coaching okay but if you do one to few
and you could decide how many of the few
are it's called group
coaching so now you have a choice to do
a few different
things you can
coach the dear Sons remember the Dear
Son the people who were like you on how
to transform their business the way you
did it or you can teach or coach
businesses on how to do this in
mass and then you say well Chris this is
not very scalable this is not passive
income I said these are alternative ways
to make money not all of these ideas are
passive income this you have to work for
still you're still exchanging time for
money but now you're changing exchanging
less time for way more money right align
with the things that you should be doing
right and the great news is the more you
do this the more well-known you become
the more confident you become the more
tools and resources you you have this is
a really big deal we're not even done
with this model yet okay so you're like
you know what I've been um Consulting
and coaching I've noticed some patterns
here I've noticed some patterns and
rather than me try to sit here and
regurgitate the information over and
over again I need to then document the
insights that I have and we can convert
that into other things so the arrow goes
up here now okay I'm going to document
it and what what can I do so the easiest
way to doent something is you're going
to
write so you can write a a white
paper you can write an ebook or you can
write a real book and you can publish it
and guess what every book and everything
that you write further goes to build
your Authority in the space and if you
put calls to action within the book end
of each chapter with some additional
resources or tools that drives more
traffic to the site more affiliate more
all of this is just one giant bubble
right whereas it tries leave it gets
pulled back through the gravity back
into the system and is an awesome thing
well guess what when you write something
you have chapters you have organized
things you might design some Frameworks
or some mental
models that then you can then package up
teach and sell that or provide digital
or analog tools you can create
worksheets there's lots of things so now
you're going to be able to create a lot
of products what was interesting um I
think in the book re work um Jason freed
and David Hansen Hein Meer is he said
when you create one thing you create
many things in the process very true we
often forget the other things that we
create and we only sell the one thing so
in creating a video for your clients you
might have to develop ways of
storyboarding creating shot list of
calculating expenses and all kinds of
things and those are the tools that you
need in order for you to do the job but
other people who do the same job might
want to benefit from that as well 100%
you can design rigs that you can do 3D
printing on there's a lot of things you
can do well guess what you can make a
course or video based on this which we
touched upon last time which then you
can sell so you can say you know what um
many people don't have the budget to pay
me this kind of rate I recommend that
you look at the
course which covers everything that I
know for like
$4.99 or if you insist you can hire me
for $1,000 an hour it's your choice the
course is say six modules an hour each
so you're getting six hours of value so
you say6 times $11,000 is $66,000 right
right and then you put a slash through
it or you can get it for
$4.99 and guess what I'll include these
Frameworks the white paper and all these
things so you're doing what horos refers
to as value
stacking I'm going to Value stack it so
that it ridiculous
a ridiculous amount of value for the
price that you're paying for and then if
you need to you can throw in a
guarantee you can say you know what you
purchase this you do the work you want
your money back 30 days give your money
back no
problem and a small percentage of people
will return it because they're scumbags
a small percentage will return it
because they do get it and they got uh
into this buying State fomo they bought
it you just build that into the business
model so if you assume 10% % will refund
and just build it into the price you can
jack the price up by 10% if you wish and
that way the people will return it no
problem smart business people account
for these kinds of things and they bacon
into the pricing that's what you're
paying for so when you go to a store and
you buy something it's not really the
price of that thing what you're paying
for is overhead staff return products
bad products shipping you're paying for
all of it they don't want to burden you
with that so they just give you one
price and you're happy to pay it or
you're not happy and then you don't buy
it it so you're going to build this
thing out as many different ways as you
can well there's like a whole another
meta layer here that I want to highlight
because we started off this full day
workshop session for getting clients in
Leen every piece of asset that you make
as a document can then be turned into a
lead magnet which is the sample or the
tool or whatever to then get people back
into your funnel for clients or to get
people back in your funnel for
consulting or coaching so it's like this
constant sawdust example of like how do
you Leverage just saw us in so many
different ways especially since it's
digital too which is huge so you know
what since we're in my office here let
pull this out here you guys know this
author of this company this book is
called love sick and it is uh by Charles
S Anderson and Company okay and this is
a bunch of illustrations that are kind
of the 20s to 30s advertising things
okay which have all expired in terms of
their copyright so Charles S Anderson is
a designer who came up in the 90s and
somebody I look looked up to and still
look up to today but he started to be
the big guy who was taking things from
the past repurposing it with modern
context so it has this beautiful look he
worked with Fossil watches that entire
brand is built on what he's done wow and
the French Paper Company if you know the
French paper promotions if you're print
design you know this so Charles used to
do the illustrations or hire someone to
do it and eventually he's like well
people want to use illustrations that I
have redrawn so they're worth something
so then he hired illustrators presumably
to do this and he creates a stock
catalog which you can buy and license
per image wow so it's a beautiful thing
so at some point a company like Adobe or
Shutterstock or Getty Images will say
you know what you have such a vast stock
of these images we'll just buy you out
$20 million $100 million we don't even
know and then they can then resell them
for 100 bucks a piece they don't care
because they own the library they have
the sales vehicle for buyers and they'll
do that so that is an awesome way for
Charles to build a 401k plan based on
assets he uses today how powerful is
that concept everybody think about that
so when we say that we create all these
things we're just leaving almost
literally all these valuable things on
the table that we cannot exchange for
money so really look into what what you
use to create your
desktop your swipe files think about
that so when we can charge enough money
where is it enough money that we can
hire other people what should we be
doing with her
time making doing things like this
thinking about how to connect these dots
and we use the leftover money the $350
okay so now we've got somebody else to
do the work we have free time but we
also have additional money we can hire
some other kid in another country who's
desperate for work give them that money
said you're a good illustrator make this
for me I'll take the risk yes I'll pay
you for businesses I don't even know I
can make on and you keep doing this and
you don't have to have hits after hit
you could just get one hit instead of
turning into something does that make
sense that makes abundant sense okay and
so this is where I want all of you to
get out of this mindset that we always
have to exchange our time for
money we can document it and once we
document it in whatever form that you
want there's other ways to hook into
ways for us to make money and it's real
important if you can start to build this
if you see any value in here you're
going to start to look at this it's
going to look real pretty really fast
now when I say really fast that's all
relative will it happen in 30 days no
it's going to take time for you to build
this it's going to take time for you to
figure out what voice you want to have
in the world how you want to show up and
we still have yet to figure out who
you're serving and what you do to make
them super happy but if you can answer
that very difficult question make the
commitment today instead of saying well
I'm a journalist and that works better
for me if you can do this kind of
work you're going to change your
business and then ultimately change your
life okay that's it for this video and I
want to answer a question that you may
or may not be thinking like was this all
prescripted or was this just off as my
friend MO likes to say off the Dome this
is how my mind works I obsess over
Trends and connect dots that people just
don't see if you got value from what we
just talked about and you want more of
this the only way that you can do that
is to join the future Pro Group I do
calls just like this where people are
put in a hot seat situation where I look
at their specific problem and give them
tactical advice just like what you just
saw so check the link in the description
right now it'll take to your sales page
and you have the opportunity to talk to
someone so you can have your questions
answered or you can just join us right
away check the link in the description
below see you inside the proog
group
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