Value-Based Fees: How to Charge—and Get—What You're Worth: A Guide for Consultants, Second Edition

11.4. PASSIVE INCOME

Technology allows for very diversified passive income. I once thought that passive income would become possible only after having built a strong brand, but I've since learned that a strong array of products and services enhances your ability to build a brand. (I'm continually surprised at how stupid I was two weeks ago.)

I define passive income more broadly than most people because I use two categories: traditional and local.

Traditional passive income is earned when people and organizations purchase products and services that do not require active participation from you. This is the stereotypical "make money while you sleep" situation. Someone buys a book, for example, from your Web site. You or someone else fulfills the order. You deposit the money in your bank account, or it's done automatically.

Local passive income derives from activities that take place in proximity to your office; even though they demand your interaction, they are easy to do, inexpensive to carry out, and require relatively little work (or pleasant work). For example, you might organize and conduct a one-day workshop ten minutes from your home to which people are attracted in significant numbers. You sleep in your own bed, commute a few minutes, and spend "a day at the office" earning money from every other person in the room. This income category also includes people visiting you, for a significant fee, for personalized one-on-one coaching. It also includes teleconferences that you ...