Passive income is becoming an increasingly popular buzzword - especially for therapists. More and more clinicians are finding creative ways to get information out there to help people - whether it’s a specific niche, the general public, or even other therapists. This could look like hosting a podcast, writing a book, starting a blog or a YouTube channel, monetizing social media, creating online courses or digital downloads, etc.
The outside observer may wonder, Why? Aren’t therapists supposed to sit in a gently lit room all day, nodding and listening to people cry? Why are they out here doing all this? If you’ve been a therapist for more than 2 years, you probably understand exactly why. In case you hadn’t heard, therapists aren’t paid very well and have SUPER high rates of burnout. Even if you’re in business for yourself, that comes with a great deal of stress and responsibility. It’s totally understandable why therapists are starting to get creative with how they make their money. And I think it’s great! Since I recently announced my own venture into the passive income world, I wanted to share more about why some therapists are going in this direction.
(An important disclaimer: The misconception about passive income is that it 100% lives up to its name. In reality, most forms of passive income require quite a bit of work up front. Once that is done, and the offering has been marketed to reach an audience, only then is the income from it truly “passive”.)
So, why are so many therapists pursuing passive income streams??
To share knowledge and help people on a larger scale
It’s no secret that therapists like to help people. Sometimes that desire extends beyond our clients - maybe we want to help other therapists, or a specific population on a larger scale. Things like podcasts and courses allow us to reach a wider audience, rather than helping one person at a time.
To create variety in their lives/schedules
Many of us have a great deal of knowledge to share, so it feels good to be able to do that in different ways. It can also get monotonous sitting in that chair, day in and day out, doing the same things over and over. Having a side project to work on (if you have the time and energy for it) can be a nice break. It’s still work, but uses a different part of your brain, so it’s rewarding in a different way.
To balance out or decrease client care hours
Doing one on one therapy is our bread and butter, but everyone has their limit. Whether you’re nearing retirement, raising children, managing health issues, or simply looking to diversify, you may find yourself looking for ways to make money that don’t involve direct client care. We only get paid if we show up (AND if they show up), but otherwise we’re on our own. It makes total sense to find ways to make money during our “off” time. Passive income streams can get you paid while you’re sick, on vacation, or taking a break. It can help you to decrease your caseload if you need to, or at least take the pressure off of your sessions.
To build financial stability and save for their future
Therapists, like anyone, need to be able to survive. But honestly, more and more of us are wanting more. We want to thrive. I think everyone deserves a chance at both. Just like everyone, we want to be able to go on vacation, feel safe if we get sick, give our families a good life, pay off our student loans, retire at a reasonable age… And those things aren’t always possible on our salaries. Passive income can help us regain some control over our finances, so we can work toward our goals in a bigger way.
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So whether you’re considering passive income streams yourself, or are just curious about the trend you’ve noticed, hopefully this gives you a bit of clarity. There is no shame in wanting something beyond survival. Building wealth does not inherently equal greed, nor does it have to involve harming anyone or making money at the expense of someone else’s wellbeing. Finding ways to make your money work for you is one of the most basic (and wisest) principles. It’s smart not only for your business, but for your own personal financial health.
I think a lot of therapists struggle with finding the time and focus to develop a passive income stream. I often suggest to find synergy with what you are doing in the moment, so that it feels like just an extension of what you're already doing.