Have you heard the phrase, “Make money while you sleep”? It’s a common phrase thrown around the internet marketing world that describes the power of passive income. Make a product one time but reap the rewards for years to come.
Passive income can benefit absolutely everyone, no matter what type of business you have or what type of coach you are. The key is to make the product creation as simple and as inexpensive as possible. This doesn’t mean your product will be cheap; it means you should focus on your area of expertise and solve a common problem among your audience.
Let’s review why online business owners need to create a stream of passive income:
- Supplement your income when a client cancels their contract if you provide a service. No one wants to think about losing a client (or two!) but it happens. Instead of panicking at the idea of finding a new client to fill that space, you can approach the task calmly, knowing you have passive income to fill that gap temporarily.
- Expand your name recognition and attract new buyers from your target audience. The world is a big place and you always have the opportunity to reach new people in your target audience. Using your products as a giveaway or pricing it on the low end will entice these newcomers to learn more about you and your other products and services.
- Attract speaking or media engagements. Event organizers and reporters are constantly searching online for speakers or interview subjects. If you have products as part of your business and have a consistent marketing plan, the media will likely find you faster in their online searches. Adding these events to your media profile will immediately elevate your authority level, too.
- Lead your prospects through a sales funnel, ultimately leading them to your more expensive product and services packages. A sales funnel is a must-have for online business owners because people want to know about your practices prior to paying hundreds or thousands of dollars on a coaching package. Showcase your expertise with smaller, more inexpensive products first, then entice those buyers with your higher priced packages.
- Use products as part of your overall marketing plan. When you have products, you can run promotions which garner lots of attention on social media. Offer a freebie, a bonus if they buy a coaching package, or offer a chapter of your ebook as a teaser to entice them to buy. Unique promotions will attract attention from new prospects in your target market.
Passive income is a must have if you’re a business owner if you want to stop trading time for dollars. What kinds of passive income streams do you have in your business? I’d love to hear your thoughts in the comments below.