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“Make money while you sleep.” Have you heard this phrase before? It describes the power of passive income. Shopify defines passive income as income that requires little effort to maintain. In other words, you create a product and then enjoy ongoing sales. You may also hear “set it and forget it” when it comes to creating a passive income stream.To be clear, you must put in the work to create and market your product but you don’t have to continuously do active work to earn.
Passive income has the potential to benefit any type of coaching business. The crucial factor lies in simplifying and reducing the costs involved in creating a product. This doesn’t necessarily imply that your product must be inexpensive; instead, focus on your expertise and offer solutions that address problems that your audience faces.
In a previous post, we highlighted passive income as a benefit of creating online courses in your coaching business. Here we go deeper into why you should create a stream of passive income:
1. Supplement your income
Unplanned situations can occur, for example, your client unexpectedly cancels their contract. While losing your client may be daunting, having a passive income stream in place can help alleviate the stress of finding a replacement quickly. With this income as a fallback, you give yourself a grace period to find a new client.
2. Increase your visibility
With the vast number of people in the world, there’s always the possibility of reaching untapped markets within your target audience. Consider offering your products in giveaways or pricing them affordably to attract these potential clients. Then, encourage them to explore your coaching programmes. By providing a low-risk entry point, you can build trust with new clients, create interest in your brand, and ultimately increase your client base.
3. Attract speaking or media engagements
Event organizers and hosts are always searching online for speakers. Do an online search for podcast guests and you will find many results. If you have products in your business and a consistent marketing plan, it’s highly likely that people will find you much faster in their online searches. Also, when you add your speaking experiences to your portfolio, you will immediately elevate your authority level. This then makes you the ‘go-to’ coach.
4. Lead your prospects through a sales funnel
Your passive income products are not intended to be the final destination for your clients. Your ultimate goal is to lead them to your more expensive coaching packages. This is where a sales funnel comes in. People want to know about you and your coaching style before spending hundreds or thousands of dollars on your coaching package. So, use your sales funnel to showcase your expertise by introducing potential clients to your smaller, low-cost products. After they buy in, make them aware of your higher-priced packages.
5. Include products in your overall marketing plan
By offering a freebie or bonus incentive with a coaching package purchase, you can entice potential clients and create interest in your brand. Another approach is to provide a teaser chapter of your ebook. Promotions can be a powerful tool to generate buzz and attract attention to your products. They can help increase brand visibility and ultimately drive sales. With a well-executed promotion strategy, you can effectively leverage your products to grow your client base and boost your success.
Now to hear from you. Are you ready to create a passive income stream in your business? Which of these five reasons resonates with you?