Not long ago I made a few hundred dollars while I was standing in Best Buy waiting to buy an iPad.
Let me tell you how I did it – so you can, too (5 tips below).
I didn’t close a new client… or coach someone on the phone.
In fact, I wasn’t working at all.
My website sold a copy of one of my information products. The beauty of it is, I haven’t done any work on this product for over a year. In fact, I’ve hardly even promoted it in the past two years; and yet it still ends up being around 10% of my business revenue every month!
That is the power of passive revenue. Work once… and profit over and over again for years.
I asked Andy Andrews, the brand and implementation coach from my Enlightened Marketing Million-Dollar Brand Makeover and Client Attraction Mastermind programs, to share the top 5 tips we’ve learned on our journey to passive income over the past 3 years. Here’s what he came up with:
5 Passive Income Lessons Learned
by Andy Andrews, Enlightened Marketing Europe
1. Start Simple
I think it’s important to tell you the complete, honest truth: setting up a stream of passive revenue can be complicated and difficult, but it does not have to be. So, while you might be thinking you have to model some guru’s fancy “home study kit” with videos, transcripts, CDs, a member forum and a bonus software, that is not the case at all. For your first information product, you can start with something as easy as a Word document you’ve saved as a PDF.
2. Go for Dollars, not Pennies
I have to admit that I learned this the hard way. I spent a lot of time, effort, and money chasing after 1000 x $1 before I realized that it was much easier to earn 10 x $100. Any passive revenue stream needs to be priced in such a way that you can reasonably expect to earn back what you invested in it in a reasonable period of time.
Pack enough value into whatever you create that you feel comfortable charging $47, $97 or even $197! Don’t worry about giving away secrets; that’s scarcity thinking.
3. Finish One Thing First!
Nobody wants to put all their eggs in one basket, especially when it comes to income. The failure rate is just too high when you are testing something new and unknown.
However, even a poor-selling product is a lot more profitable than 5 that are not finished. (Yes, that’s something else I’ve learned from experience!) Get started now, finish ONE product, and start offering it to your clients, subscribers and community.
4. Recurring Is Much Better
Remember how I said to go after dollars, not pennies? That does not mean you need to charge hundreds of dollars. In fact, I often recommend against it. The truth is that information products with a smaller price tag are easier to sell, especially as an intro to you and your business.
So, how do you turn this into real money? Amazingly, testing has shown that while cutting the price of a product from $197 to $97 quadrupled sales (resulting in twice the revenue), the product sold just as well at 2 x $97 (two payments of $97 apiece) as 1 x $97.
Smaller recurring payments mean affordability for your audience and steady cash flow for you, the business owner.
5. Leverage What You Have
Once they finish their first information product, the tendency of many is to promote it once, then forget about it. Not only should you consistently promote it; you should also keep in mind the many other ways to leverage it.
For example, the chapters of an eBook can become a membership program or a video training series. A workbook can be turned into a premium coaching program. The list goes on and on.
Hi! Samantha here again. A funny little story:
I couldn’t plant more in my garden this year due to travel commitments. One day in May I was futzing around with the place the garden had been – weeding and clearing – when I noticed a large number of “volunteers” from last year: strawberries and blueberries, flowers and herbs.
As I harvested an apron-full of strawberries for our morning cereal, I thought, “This is just like passive, recurring revenue! Work once and benefit year after year.”
Passive revenue has been such a game-changer for me and my business, that I urge you start adding it to your business now. Can I help you with that? Would you like to know more about this topic?
What’s your #1 question about getting started? Let me know in the comments section below.
* Money pic by Andrew Magill