If you are pursuing a passion, you may go into your business not 100% sure exactly how you’re going to monetise it.
I don’t recommend this but I also understand the vagaries of starting a business around something you love to do and would happily do for free if only someone else could pay the bills!
So let’s say you’re currently working a day job and at nights, mornings and weekends you start a blog all about gardening.
You love your garden and in your spare time you fill your blog & Instagram with images & videos about all the plants, hacks and tips you love to showcase in your garden,
You could spend every day all day in your garden but then the alarm goes and you know you have to head back to the job you’re tolerating until the day you can figure out how to turn what you love into a profit making venture.
Start with the end in mind
To turn your passion into a lifestyle business you need to start with the end in mind.
What do you need to earn to live the life you want to live?
How much do you need on a monthly basis to;
Give up your day job
Fund your lifestyle
Travel the world
Spend more time with loved ones
Live the life you dream about
In order to get specific and focused on your business you must get specific and focused on what you need your business to generate in revenues.
Get your research head on my friend and let’s get started!
1. The Ideal Lifestyle Budget Exercise
Take out a pen, piece of paper, google doc etc and do a cost exercise of your ideal life.
- Travel Expenses
- Doodads (stuff – clothes, cars etc)
- Everything you need to pay out to live the life you want to live.
If that includes a yacht and a helicopter, so be it, although I’d first ask whether you really want to own those kind of things or just rent when you need!
Talk to people currently living the lifestyle you’d like to emulate and get some numbers from them.
- How much actually does it cost to housesit my way across Mexico
- How much actually does it cost to move and live in Thailand
- How much actually does it cost to rent an apartment in (insert ideal city)
I think you’ll find that the amount you actually need to live the life you dream about is nowhere near the amount you think it is.
So many people believe they have to become a millionaire to be free!
When we moved to Phuket back in 2012, we were totally free at around $3000 / month!
Sometimes it’s about changing your circumstances to create the lifestyle you want.
Jon Morrows story about saving $100k a year on medical bills by moving to Mexico is super inspiring (especially if you’re of able body & mind and are held back by your own limiting beliefs!)
Dig deep here and get super clear on what a life of freedom means to you and how much it will cost you a month.
Now write that number in big bold letters and put it somewhere you can see it.
That is the goal. That is your ideal lifestyle number!
2. How are your competitors / collaborators monetising?
Armed with your ‘number’ you need to get out into the market place and see how other people in your niche are monetizing their brands.
So taking our examples from Day 2;
Here Alexander is monetising via;
- Affiliate links
- Blogging & writing workshops
Emil Pakarklis is monetising via selling a range of Photography courses
These ladies are monetising from every which way!
- Brand sponsorship
- Affiliate Links
- Air BnB!
My good buddy Dan’s new brand is monetising via;
- More to come!
Jenna Kutcher monetises via;
- Podcast Sponsorship
- Affiliate partnerships
- Brand endorsements
- Guides & Templates
Watch this space….
- Shop – Planners, journals, merch & travel gadgets
- Affiliate partnerships
- Book sales
- Podcast sponsorship
- (and something very different – to be revealed in about 5 years!)
3. Do a potential income exercise.
Now you have to really start digging. (Excuse the pun)
Going back to the gardening example;
- How much do you make from Adsense? How many visits / month do you need to make this worthwhile?
- How much can you make from Amazon affiliate links?
- Can you create a gardening video course? How much could you charge for that?
- Could you create and sell a beautiful garden picture book all about plant care? How much and how many do you need to sell?
- Could you start a gardening podcast and over time attract sponsorship? How does that work and how much can you earn?
It’s time to sit down and begin calculating how to monetise your passion to the point it covers your starting ideal lifestyle budget number.
By doing this you’ll also begin to form a picture of how long it might take you to get there.
Let’s give some tangible examples;
Let’s say your goal is to achieve $3000 / month.
1. According to Chris at RankXL;
Now if you read the article you’ll see he’s using very broad calculations, but as an approximate, you’ll know if you want to add Adsense and start focusing on content, SEO & blog traffic as your main goal for your business.
2. Now let’s say you create a beautiful picture book which you can sell for $19.95.
At your $3000 a month goal, you’d need to sell 150 books a month.
150*$19.95 = $2992.50
3. If you created a video course on garden tips & hacks, priced at $197, you’d need to sell 15 a month and if you did one to one coaching on plant care or garden design priced at $297 / hour, you’d need to do 10 hours of coaching to achieve your goal.
15 * $197 = $2995
10 * $297 = $2970
4. Perhaps someone else has created a fabulous course you’d love to recommend and it’s priced a $997 with a 30% commission for referrers.
997*30% = $299
So you’d need to sell 10 a month to hit your goal of $3000
10 * $299 = $2990
5. I’m not even going to start working out Amazon affiliate income as it’s totally dependent on the niche, but here is a great article on everything you need to know about Amazons affiliate program and their commission rate card;
4. Prioritise your options.
You should by now have your ideal lifestyle budget number and a list of ways you can achieve that.
Unfortunately we can’t do everything, or at least not at the same time, so to keep from getting overwhelmed you need to prioritise which path you’ll take.
Do you want to create courses, write books, affiliate for other people, build your audience etc?
Yes, I know all of the above, but in what order?
By getting super clear about this now, you’ll determine the actions you take building your content, your profile, your social media presence, everything!
Clarity is power my friend!
So get clear!
What we’re trying to do here is turn what you love to do into a profitable venture meaning you can do more of it! The goal being that you can fund your lifestyle doing what you love to do!
Imagine the freedom that gives you! So don’t skip this part.
Get super clear on precisely what you need to earn to fund your ideal lifestyle and the options available to you to make that dream a reality.