Passive Income 101: How To Make Money When You Rest

Jenna Kutcher 

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October 11, 2017



If you’ve been following me for a while, you’ve likely heard me say “time is my currency”. And I truly mean that. At the heart of my being, “success” means working in such a way that I have the most free time- to get back to the things that truly matter in this lifetime. To me, running a business is a way that I can afford to see the world, take a weekend off, visit my grandparents, or spend a weekend at the cabin– while having money in the bank. Which brings me to today’s episode: PASSIVE INCOME 101, babies!

I could talk about this topic for a week straight, but I somehow managed to condense all my passion down to one episode, and I am letting you on my biggest takeaways from utilizing passive income!


Time, time, time! Whether you have accepted it or not, “time” is the most important thing in your life. When ya boil it down- how you spend your days is how you spend your life. Which is why you need to ask yourself “What do I want my business to look like?”. Think of it in terms of present and future. What does it look like right this moment, but also 5 years from now? 10? Could you work the way you are as a mom? A wife? Can you handle filling your weekends forever? You have to be really honest with yourself, and if you have any doubt that you can’t maintain the hustle you have now, you need to look into passive income.


I mean, I feel like I don’t have to try very hard to convince you that passive income is awesome! The big idea: work minimally, make money (even when you sleep!). BUT to get to that point, you have to put in a lot of work and preparations and I am sharing my top tips with you today!


With passive income the goal is to be as hands off as possible, which means creating efficient systems in every area of your business. If you are seriously working towards passive income, you need to become very diligent about creating rock-solid systems for every single part of your business flow: email, order fulfillment, education courses, launches, products, affiliates, customer outreach, E V E R Y T H I N G.  This may seem overwhelming, but you’d be amazed how much you can program ahead of time! Woohoo for efficiency! Step one towards passive income is done!

2. Sista, You Need Help

Okay, so after I just finished ranting about automation, I can’t hide the secret that some parts of your business simply need humanness to them– not everything can be run by technology so you need to enlist help! The next step in passive income, is creating a network to pitch in with your business. On my team this looks like email management, a podcast manager, an associate photographer, and a few tech gurus. How awesome is that? I custom designed this team to give me my best lifestyle while providing rewarding careers to my team! Regardless of what you do, you will need help! This is such an important part of the passive income journey.


Even though you may be relaxed while obtaining passive income, you absolutely must create a sense of urgency with your clients! Even if your product is offered year-round, come up with unique ways to pump people up about it! People are more likely to act under pressure sooo whether it is a limited amount, a contest, or a rare deal, create the “hook” for them to purchase!

4. make a funnel

This is huge in the passive income world. A “funnel” is a way to sort through your potential clients and see who actually becomes a client and who doesn’t. It gives you a great insight into different ways you can market your product and drive the bottom line. Once you get a great handle on your demographics, you can cater your email/marketing strategy to target those who “almost” buy. Be super strategic with this part, and you will see the results in your bank account!

5. Create urgency

THIS. IS. SO. IMPORTANT. With passive income, your product may always be available, but that doesn’t draw people in. Create “launches” and due dates to not only draw attention to what you’re selling, but to make people act fast. When there is a clear “end” whether it be a due date or a limited time deal, make it a clear yes or no. Market in such a way that your client can’t be on the fence- they have to either say “yes” or “no”. Embrace a “time crunch” to make them decide. And we all know, sitting on the fence isn’t very comfortable, is it?

Alright, folks! There you have it! My absolute best insight into creating a lifestyle of passive income– create a life YOU want to live by freeing up your valuable time. I truly think passive income should be the end goal of every business simply so you have more free time to enjoy yourself, but embrace this slow process. It will take work, patience, and diligence, and it absolutely won’t be overnight… but if you start working towards that today, just imagine what you’re life could look like.


Grab my outsourcing guide for the 5 questions to ask yourself before hiring.

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  1. Cristin says:

    Yes! My husband and I were just discussing this last night over dinner. We just started our family photography business, so I’m drumming up some ideas for templates and how to PDF’s. Gotta get in on some of this goodness!

  2. Beth says:

    I am absolutely thrilled that I found YOU!!!!! First, i found your podcast, then I found your blog & all the freebies that have gone a long way to answering a gazillion questions I had. Thank you from your newest fan!

  3. Love this episode.
    Branching out into a bunch of stuff to serve right now. An on line course about my brand Image. Thanks for all you do.
    Kerrie/ Australia

  4. Bekah Read says:

    I’m willing to work hard. I’ve defined myself by how hard of a worker I am (which is probably not great) and I have a ton of time after just moving to a new town and starting up my business/ not having a full time job and not having friends yet 😉 but what if I have nothing to offer? I am racking my brain for ideas and this is all I can come up with:
    1. My husband is a college XC coach and helped me run a 3:14 marathon – maybe I could sell his training plan and provide support?
    2. Real Estate social media tips and email templates (many of my clients are agents)
    3. Online course on adoption (this is my heart, although I don’t know a lot… I think I would need to do it first)
    Any input would be greatly appreciated!

    • Hey Bekah, Caitlyn here! All 3 options sound like ideas worth pursuing to me! Where is your heart and passions? What are you willing to work hard for? What do you see as a long term vision that you could do for a while? Also, know that you could do more than one! Think of how different and widespread Jenna’s passive income streams are 🙂


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Before you get any further... Hi! I'm Jenna Kutcher!

A small town Minnesota photographer, podcaster, educator and puppy rescuer, my happiest days are spent behind my computer screen sharing my secrets with the world. I'm glad you're here.

I’m an expert at online marketing, a nerd when it comes to the numbers, and my obsession is teaching others how to make a living doing what they love (without it taking over their life). 

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