Having your own coaching or consulting practice can be an amazing experience. It can also be frustrating, depressing, and financially challenging.
When you first started your business, maybe it was your plan to have 4-hour work weeks where you only focused on the projects and clients you liked. Many service-based entrepreneurs discover that the majority of their time is spent attracting new clients and handling marketing and admin tasks. Typically they find themselves laying awake at night trying to figure out how to bring more money into their business so they can cover expenses and have a life.
Now if you’ve managed to stay in business for more than a few years, you’ve learned how to manage your cash flow and optimize your time so that you have more time to focus on the work you love. But after some time, you might start thinking about how to work less and bring in the same amount of money.
The solution for the new solopreneur and the established entrepreneur is to create an additional income stream by creating informational resources, learning products and coaching tools. The popular name for these kinds of products is info products or information products. Savvy service-based entrepreneurs have mastered “productizing” their expertise in order to generate passive income.
Simply put, passive income is money earned without adding additional hours to your workday.
A popular example is writing a book. You write a book and create systems to market and promote your book. Then you enjoy the royalties and profits from sales. Ideally, the majority of your systems are automated which means you spend more time working with clients than you do marketing your book. With the right system and promotion strategy, you can earn money from your book for years.
Many speakers, authors, and consultants fail to make more money with their books because they haven’t thought about how to monetize their expertise beyond the book by creating supplementary coaching tools and learning resources.
There are two types of models for generating passive income: residual and leveraged.
A book example is a residual income example. It would be a leveraged income model if you were to employ affiliates to sell it for you. In that case you’d be earning income from the work they do promoting and selling your book. For more examples of passive residual income ideas, read 50 Info Product Ideas for Coaches and Consultants.
Creating passive income opportunities is one of the best ways for service-based entrepreneurs to accelerate their income without increasing their work load. The infographic below outlines how much money you could generate by selling just 10 info products a month.
Tai Goodwin on a mission to help 10,000 women entrepreneurs create more joy and wealth in their life and business. She's the CEO of Aligned + Bankable and creator of the Bankable Brilliance Course. An intuitive business growth strategist and teacher, her specialty is helping clients create bankable business models that allow them to increase their impact and income without burning out. Tai is a former corporate trainer with a master's degree in instructional design and over 20 years of experience designing course, training programs, and certifications. She is also the author of Girlfriend, It's Your Time and founder of Brilliant Business Girlfriends.