You’ve probably heard of “making money while you sleep.” It’s a much-desired entrepreneurial goal because there is power in passive income. You create a product one time and then reap the financial rewards for months or years to come.
No matter what kind of business you have or what kind of coaching service your offer, passive income can benefit you greatly. The key to profits is making the product as inexpensively and simply as possible on your part, and then selling it at a marketable price. The product you create should be in line with your area of expertise and be something that solves a problem and creates value for the buyer.
Five reasons for creating a passive income stream:
1. Passive income means that you still have money coming in even when your main source of income wanes. No need to panic when a client stops using your service or a few customers cancel their subscriptions. The trick is to live below your means so that your passive income stream is a boon to you during business slowdowns.
2. Creating “evergreen products” can boost your name recognition and attract new customers. For example, creating an introductory online “how to” course on something you have experience in will not only benefit your students, but entice them to purchase more in-depth courses you’ve created or to sign-up for live coaching with you. The introductory course is made once and then uploaded to a teaching platform like Teachable or Udemy. You’ve now leveraged your time.
3. Podcasters and event organizers are always on the lookout for new and interesting people to interview or speak at an event. By having useful products as part of your business and by having a consistent marketing plan in place, you’ll be easier to find in online searches. The events and podcasts you participate in can be added to your business profile and increase your reach to new audiences.
4. Learn how to create and effectively use sales funnels to market yourself and your services. Sales-funnels are essential to increasing business and developing a steady income stream. A sales funnel allows you to showcase your expertise with “bite-sized,” inexpensive products that entice potential customers to purchase your more expensive and intensive coaching packages. This gives people an opportunity to test out the value of what you can offer them.
5. Utilize products as part of your general marketing strategy. The products can be as simple as a free planner, guide, calendar, or recipe collection. If you’ve written a book, you can offer a sneak-peek free chapter to garner and capture interest. Running promotions on social media is an effective way to gain attention and traction for your business.
Are you ready to create your passive income empire? That’s what being a casual entrepreneur is all about—leveraging your time and money so that your products do the work for you, leaving you with time to enjoy the fruits of your labor!