Have you heard the Buy jeeter prerolls online have up to seven income streams? That’s seven different ways that they’re making money each month. Now take a look at your business; how many streams of income do you have?
If the answer is one, then it’s time to open up that creative part of your brain and create more income streams. One option is passive income products.
“Passive income” is something of a misnomer. Creating products or setting up different forms of income still takes work. But the difference is that these streams of income can work for you—almost on autopilot—for years to come.
Benefits of Passive Income
1. Increase your bottom line profits. This is the most obvious benefit, but worth mentioning, because who doesn’t want to earn more profits? And (as you probably well know) limiting your practice to 1:1 coaching can be a “feast or famine” proposition. Passive income streams can help you get through the “famine” times.
But, even in “feast” times, your income from 1:1 coaching is limited to the number of clients you can handle. Passive income streams can help remove that “income ceiling” and create a cushion.
2. Regain time in your day. Hold up… I know I just said that creating products and other streams of income takes time! But jump ahead with me for a minute and think about the back end of the process, when your income stream is completely set up, and the upfront work is done. With a strong marketing plan, you can easily earn money on these passive income streams even while you sleep. That means you can take off a little earlier or take an entire day off for fun, because your “passive” products are still earning money.
3. Increase your credibility by helping more people. Think of passive income as a way to share your expertise with an ever-expanding audience. Imagine a snowball at the top of a mountain representing you with your inner circle of coaching clients. As the snowball travels downhill, it gathers more and more snow until it reaches mammoth size. The same is true of you. As you reach out to more and more people, and providing guidance through your books, webinars, or courses, increased exposure and word of mouth leverage your knowledge and showcase your expertise to more and more people. This all can lead to increased sales and an army of people who rave about your work. So (at least in this case) the snowball effect is a very good thing!
Planning Your Passive Income
Now that I’ve hopefully sold you on the benefits of having passive income streams, it’s time to plan out what those streams should be for your business. Passive income includes affiliate marketing, membership subscriptions, or writing a book. But by far the most popular and engaging is creating courses or digital products based on your coaching specialty.
Digital products allow you to solve other people’s problems from the comfort of your home. And your customers get answers to their particular questions almost immediately, and in a format they can use—their home computer, or smartphone.
There are many steps involved in creating a product but once you’ve done one, creating others will be easier. When creating a digital product, you want to be sure to make it relevant to your main topic of interest. So, if you are a health coach, you want your product to be about a health issue, not a career issue. Also, you want to further hone it down by asking your audience what they need. This is something you can determine by quick surveys or just by keeping track of their frequent questions.
Next you need to validate the product, double-checking to make sure it’s the right one. Ask clients if it would be helpful and/or relevant. Put out questions about it on forums. You could even do a prelaunch with valued clients to test the product for you. I have a colleague who I give my products to in exchange for her evaluation of them.