How to Make Passive Income as a FreelancerMay 12th, 2008 by Michael Kwan
Part of the reason why some people choose to embark on a freelance writing career is because of the potential for limitless income. If you are willing to work harder, smarter, and faster, there’s a good chance that you’ll be able to make more money. Unlike most conventional jobs that restrict you to certain working hours, freelancing opens up the opportunity to work at any given hour of any given day. Furthermore, you can leverage your reputation for maximum profit. The trouble is that many do not consider the possibility of making passive income as a freelancer.
If you were to ask John Chow about freelancing, he would probably tell you that freelance writers are still trading hours for dollars. When I write a product review, for example, I charge a flat rate. The money is earned when the review is completed, compensating me for the time it took to produce that review. Sounds like trading hours for dollars to me.
With this model of freelance writing, you have to keep working to keep making money. The moment that you stop writing those reviews or blogging for others, the cashflow comes to a screeching halt. It’s not a business that runs itself and as such, it’s not a business model that can produce passive income. That said, it is still possible to make passive income as a freelance writer. You can write it once and continue to make money for years to come.
How can a freelance writer make passive income? Here are a few strategies to consider:
Affiliate Marketing – This will depend heavily on the client and the nature of the work, but there is sometimes the opportunity to make additional money through affiliate marketing when you write website content for others. You may have noticed that in some of the killer reviews I do on John Chow dot Com, I include an affiliate link to the advertiser. If a reader is going to buy a premium WordPress theme anyways, I might as well get a piece of that action too.
Profit Sharing – If you have a good relationship with an existing client who provides you with ongoing work, you may be able to make more money through a profit sharing model rather than a pay-per-article model. It’s a gamble to give up the guaranteed income, so weigh your pros and cons carefully before proceeding. To hedge your bets, you may want to consider a hybrid of the two payment methods.
Write a Book – While the vast majority of your freelance writing work will be others, there is nothing stopping you from writing for yourself. Chris Bibey, for instance, has a few books published under his name. You will continue to collect royalties as long as the book remains available to the public. If you are ghostwriting a book for someone else, receiving an advance along with a share of the royalties may prove more profitable than just a lump sum payment.
These are just the tip of the iceberg. Passive income is the best kind of income, because it allows you to continue making money without putting in any additional work. This can provide more free time to spend with family and do the things you enjoy. And isn’t that what we all want anyways?
Filed under Freelance Writing.