Why You Need to Create Passive Income Programs
As a coach, consultant or service provider you’re used to trading hours for dollars. But, hours are finite since time cannot be generated and is not in never ending supply. This is why passive income is an important stream of income to add to your business if you want to create a balanced work life.
If you’ve spent a number of years building up your knowledge and expertise in your niche your time is a premium. If most of your income comes from working with one-on-one clients through consulting, coaching, or some other service, it’s time to start thinking about how to turn what you know into passive income.
What if you could wake up each day without having to set your alarm? What if you could work anywhere in the world, from any place with an Internet connection? Or imagine finally earning six figures or multiple six figures without working more hours or burning yourself out.
Passive income doesn’t mean that you never do any work. It means that you typically do the work once, make minor updates and tweaks now and then, but get paid for your work over and over again. A really good example of passive income is writing a book. The author writes a book once, then sells the book, over and over again.
Every service provider, coach, or consultant should be seeking out passive income ideas. Generating passive income not only increases your profit, but it can also bring you more clients for your 1-on-1 services.
One way to generate passive income and stop trading hours for dollars is to develop information products. Fortunately, they’re not that hard create.
How to Create Information Products
The easiest way to get started is to repurpose content you already have. Start by looking through all the content you already have and figure out what you can compile into a product. What you put together may not be a complete product, but you can easily fill in any gaps by adding more content, graphics, video, and/or charts. Then you can have it professionally formatted to turn it into a real information product.
Transform Your Product Into Multiple Formats
You can easily sell the product in multiple formats. The other form will be either more or less comprehensive depending on the format you choose. For instance, perhaps you started with an ebook that teaches your audience how to solve a common problem typical to your niche. You can repurpose the ebook by breaking it into lessons that you send out as an ecourse delivered via your autoresponder for a small fee. So now you have an ebook and an ecourse. You could then add PowerPoint slides with audio to each lesson along with some worksheets and put it on Udemy.com or Teachable to create an online course. Now you the eBook can be sold as an upsell or bonus to your course.
You can set the price for your product based on how much information is included. The most comprehensive product will be the most expensive. Your online course with worksheets and slides, will have more depth than your ecourse or your ebook. You can even create more lucrative upsells by offering personal coaching or consulting.
Keep Going to Fully Develop Your Product Funnel
Now you have an ebook, email course, and online course that can be packaged together and sold as a bundle. You could also add it to a membership site where members pay a small monthly fee to get access to products. You can even set up your membership site to offer different levels: ebooks and online courses at the lowest level, group coaching with a forum at the next level, and the highest (most expensive) level including all that plus personal guidance and feedback from you.
As you continue to repurpose your information product into new formats, you add value to your offerings for your audience in addition to increasing your passive income.
Flip Everything To Free Up Your Time
Everything starts with your product funnel. Once you have enough passive income products or programs, you can reorganize your business so that you earn most of your money passively. Take a look at your product funnel and decide what types of products and services you can add that are passive in nature to the widest side, and at the most narrow point put “one-on-one” time. This means you’ll be making one-on-one services and time more exclusive. One-on-one time can include telephone, email, task based services, or anything that you do on an hourly basis for just one client. These tasks should be near the smallest part of your sales funnel. The easier it is to accomplish the higher up toward the wider part the service or product can go.
Your product funnel might look like this:
This is just a very basic outline, but no matter what sort of niche you are serve, you can add all of these ideas to your product funnel. Try to make your product funnel as elaborate as possible to ensure that you’ve filled any potential gaps with passive income programs or products such as ecourses, online courses, podcasts, ebooks, Kindle books, and more.
A well defined product funnel creates more entry points for potential clients. The more places a lead can enter your funnel the more potential clients you’ll have in your pipeline, waiting to be nurtured. And the more people you have waiting, the higher you can raise your rates. The higher your rates climb, the more freedom you’ll have from time constraints. And freeing up the time you now spend performing services creates more time in your schedule to spend with your family and enjoy your life.