Passive income - it’s everyone’s dream isn’t it? Before you wander into “make money on the beach” territory - of course, you can’t get anything for absolutely nothing. There’s no such thing as just magically pressing a button and turning on the cash. That would be great, but it’s not going to happen!
What is passive income?
First up, what is a passive income product? In our world of information based businesses, this is usually an information product of some kind: and e-book, an online course, even a paid recorded webinar would be passive income.
In essence, passive income means that you can spend time to make something once (like write a book) and be paid for it many times over. You can leverage your time. Instead of trading dollars for hours with 1:1 services, you can use that time to develop and improve marketing systems which will bring you many more sales down the line. But when is the best time to go for passive income in your business?
Focus on 1:1 first
There’s no question that passive income is great - when you have the skills and structures to allow you to profit from it.
I actually recommend you focus on 1:1 services when you’re just starting out, for a couple of reasons. Firstly, when you are in a corporate job, you want to quit ASAP. Selling a $2,000 1:1 package will allow you to earn a lovable income from your business much more quickly than selling a $500 course (or worse, a $10 ebook) because you need far fewer sales per month.
1:1 services are also fantastic market research for creating a programme down the line. With 1:1 clients your curriculum is bespoke to their needs, so you follow what they require from you. This allows you to see what is most important to them, what they struggle with, and what is missing from their knowledge. Down the line, this information will be vital to allow you to create a powerful curriculum for an online course.
Passive Income is More Complex
Creating a good income passively requires strong marketing structures - you need to know how to run launches, create funnels and constantly have people flowing into your programmes. You need to have great lead generation so you are always adding to your community - in far greater numbers than for private clients.
This all costs money as well - the marketing behind passive income is far more sophisticated, and it often requires a decent chunk of upfront investment to see any payoff. That’s another reason I recommend starting with private clients, so you have some extra income you can then invest into the proper structures for passive income.
What can you monetise now?
That being said, you can always complement your current 1:1 offering with smaller passive income products alongside. If you’ve run a webinar that how powerful training inside, you could offer the recording for sale.
You could re-work some of your blog posts into an ebook, and sell that on your site. Make sure the blogs complement each other, and help the reader overcome a certain problem so that the book has value.
You could also offer the recordings of a live group programme as a self study version at a lower price. This is a great way to attract newer members of your audience who perhaps aren’t ready to invest for the live programme, or joined your community after you closed the cart.
Do you have plans to create passive income products? Leave a comment and let me know!