5 Reasons Why You Need a Passive Income Stream
You probably have heard the phrase, “Make money while you sleep”. It’s a common phrase that describes the power of passive income, i.e., make a product one time and reap the rewards for years to come.
Passive income can benefit absolutely everyone, no matter what type of business you have, whether it’s product-based or service-based. The key is to make your product creation process as simple and as inexpensive as possible. This doesn’t mean that your product will be cheap; it means that you focus on your area of expertise that solves a common problem for your audience, and create a quality product around it.
First, let’s review why coaches need to create a stream of passive income:
1. Supplement your income when a client cancels their contract. 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.
2. 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. Pricing products on the low end for passive income, can entice newcomers to learn more about you and your coaching practices.
3. 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 passive income marketing plan, the media will likely find you faster in their online searches. Adding these events to your media profile can elevate your authority level, too.
4. Taking your prospects through a sales funnel, starting with a low-priced passive income product, ultimately leads them to your more expensive coaching packages. A sales funnel is a must-have for coaches, because people want to know about your work prior to paying hundreds or thousands of dollars on a coaching package. Showcase your expertise with smaller, passive income products first, then entice those buyers with your higher priced packages.
5. Use passive income products as part of your overall marketing plan. When you have products, you can run promotions which garner 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.
Is Passive Income Really Passive?
There are many benefits of passive income as an additional stream of income, but some coaches have questioned if you can really ‘set it and forget it’ when it comes to creating passive income. Let’s explore this a bit further.
First of all, creating any kind of product takes some time. Even if you’re taking the information from your own experiences, you’ll need time to write it out or record it. You’ll need to allow time for proofreading and editing. If you outsource some of the editing and design tasks, you’ll have other people’s availability added to the mix. So time is certainly involved, but by delving into expert material you already know, the first part of creating the product should be simple.
Once your product is complete, you’ll have a launch to prepare for. As wonderful as search engines may be, you don’t want to hope and pray that people find your product; you have to tell them you have a product available, which means press releases, social media blitzes, a book release party, virtual book tour… the list could go on and on. To showcase your new product, you need to claim the spotlight.
After your launch is over, you can refocus your energies on your coaching clients; however, you don’t ever want to fall into the ‘forget it’ phase, because people need reminding. You don’t have to email them every day about your product, but don’t be afraid to mention it in your weekly newsletter or as a postscript in other email blasts.
Here are some additional actions you can take to promote your product(s):
· Add a graphic to your website home page with a link to your sales page.
· Create an affiliate program for others to promote your product for a commission and send out an announcement about it.
· Create a monthly social media message which includes occasional promotions of your product.
Organic sales are wonderful, and they certainly happen, but you shouldn’t depend solely on the search engines to bring buyers to you.
Paid ads on Facebook, Google, and YouTube can also get the word out about your product(s). Be sure to monitor your ad performances so you know what’s working and what’s not.
Passive income products can boost your sales, your business assets, and your confidence. I say “confidence,” because there’s nothing quite as bolstering as seeing sales coming in continuously from a product you created once.
You also can expand your name recognition and attract more media attention with passive income products.
Is passive income really passive? No, but the work that needs to be done to create a product which produces passive income, only has to be done once to bring in income for years to come.