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Want to Hit a Big Pay Day? Do This...

Want to Hit a Big Pay Day? Do This...

Most freedom seekers get this wrong...

April 15, 2024

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Welcome to another issue of Passionate Income.

Today we’ll be discussing what separates unsellable businesses from ones that can be sold for a fat payday.

In particular, the downsides of service businesses and why - if you want to hit it big one day - you should build a “sellable” business starting from Day One.

Let’s dive in.

This issue is sponsored by us - Passionate Income!

Struggling to get ahead as a freelancer?

Want to build a business, but hate the idea of having to get on camera and pretend you're some kind of expert?

With a Faceless Instagram Page, you can earn a living online without having to become a guru, import products from China, or spend a single dollar on ads.

Plus you can sell your business for 27 - 36x monthly profit on Flippa!

And on Thursday, we're doing a live training where we'll show you how.

As we've discussed in previous issues, the majority of self-made millionaire entrepreneurs do not build their wealth as a result of having a high income.

Instead, they make their millions when they sell their companies.

But don't worry: You don't have to build the next TikTok or OpenAI to cash out.

In reality, investors buy micro-businesses for as little as 4-7 figures.

The key is building a business someone is willing to write you a big check for.

Unfortunately, this is where most freedom-seeking digital nomads go wrong.

Constantly tempted by the possibility of earning a higher and higher income, they double down on coaching, freelancing, consulting or agency services.

While these avenues can help you earn a relatively high income, the cold hard truth is for every service provider earning $10K per month, there are another 99 who are earning $5,000/month or less.

But that's not the point.

Because the real problem with building a service business is that 99.99% of them can't be sold as part of an acquisition. Think about it...

If you're a coach, consultant or freelancer, you are the business.

You generate the leads. You do the sales calls. You fulfill on the service.

Meaning, if you quit, the "company" would cease to exist.

On the flip side, when buyers research businesses to buy, they want to see a well-oiled machine that isn't dependent on any one person.

They want to see systems and processes. Operations manuals. Staff that won't be hard to replace should they decide to quit.

So the question becomes: If the goal is to earn a big payday, what kind of business should you build?

Here are the most common business models that can be flipped/sold:

Amazon Kindle Brand
Amazon FBA Store
Drop-shipping Site
Niche Site
Faceless YouTube Page
Faceless Instagram Page
Newsletter
Micro-SaaS

As you can see from the examples above, none of these businesses are built around a Personal Brand, guru, influencer or expert. Instead, each of them is run by the founder and their team of contractors and/or employees.

Further, whether it's a newsletter, a faceless page or something else, all of the above can be operated using systems and processes.

From content creation to marketing, none of these examples are highly dependent on a rare and abnormally skilled employee.

Instead, most can be run with a fairly average team of part-time staff.

Admittedly, you can scale to $10,000 per month much faster with a service business. Generally speaking, most of the above models will take 6-12 months before they get remotely close to making $10,000/month in profit.

But what you gain in speed, you lose in equity value.

So if you want to cash out one day, make sure you build a business someone can easily step into and operate once you step away.

*Passionate Income falls into two of the buckets listed above (Faceless Page and Newsletter).

And this Thursday, we'll be holding a live training showing you how we did it and how you can build a side hustle that can be sold as part of an exit.

Click here to learn more.

💡 Takeaway: Every business model has its Pros and Cons. But if you want to hit a big payday, you need to build a business that runs on systems, processes, and staff that can be replaced in a moment's notice.

🎁 Resources: