Have you heard the phrase, “Make money while you sleep”? It’s a common phrase thrown around the internet marketing world that describes the power of passive income. Make a product one time but reap the rewards for years to come.
Passive income can benefit absolutely everyone, no matter what type of business you have. The key is to make the product creation as simple and as inexpensive as possible. This doesn’t mean your product will be cheap; it means you should focus on your area of expertise and solve a common problem among your audience.
6 Reasons Small Business Owners Need Passive Income Streams
1. Economic downturn
When I started writing this post, it included just five reasons small business need passive income, but then Covid-19 happened. Hopefully, the ongoing quarantines as we try to beat the coronavirus are a once-in-a-lifetime event, but what we can’t deny is that the economy ebbs and flows. Right now people can’t leave their houses and many business owners are unable to work. As terrible as this is – and as a nation it is easily one of the worst things we’ve endured in modern history – a recession always seems to be looming on the horizon.
Passive income will, ideally, help your business weather these storms a little easier.
2. Supplement your income when a client cancels
We’ve all been there. 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 immediately fill that space, you can approach the task calmly, knowing you have passive income to fill the gap temporarily.
3. 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. Using your products as a giveaway or pricing it on the low end will entice these newcomers to learn more about you and your coaching practices.
4. 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 marketing plan, the media will likely find you faster in their online searches. Adding these events to your media profile will immediately elevate your authority level, too.
5. Lead your prospects through a sales funnel, ultimately leading them to more expensive products.
A sales funnel is a must-have for coaches because people want to know about your practices prior to paying hundreds or thousands of dollars on a coaching package. Showcase your expertise with smaller, more inexpensive products first, then entice those buyers with your higher priced packages.
6. Use products as part of your overall marketing plan.
When you have products, you can run promotions which garner lots of 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.
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