Passive income is one of the most talked about concepts in wealth-creation. In networking marketing circles it’s known as ‘residual income’.
Passive income is money generated from passive investments such as real-estate, or dividends paid out from your share portfolio. Or, if you are an insurance agent or a mortgage broker, it is the residual income that you continue to earn long after the original sale has been made.
As a coach or consultant, you can take advantage of passive income opportunities as well.
Time and Money
As a practitioner you probably generate most of your income exchanging time for money. You know a lot about your area of expertise, you know how to deliver it a valuable service. But you are still in the grips of ‘time-money’ problem. You can earn more by working longer hours, but you won’t be tapping into the icing on the cake: passive income.
Have you ever heard this advice; ‘Go to school, get good grades, get a good job, get a steady salary, be on time, work hard – and you?ll live happily ever after?’ I don?t know about you, but I?d sure love to see the written guarantee on that one. Unfortunately, this advice comes from Tales from Fairyland, right after the tooth fairy story.
There’s nothing wrong with getting a steady fee-based income, unless it interferes with your ability to earn what you’re worth. Therein lies the catch, it usually does.
This line of thinking includes considering websites that generate membership income; it will also look at all the opportunities that you have to package your content (knowledge; specific subject expertise) into discrete marketable commodities: for example e-books that sell off a website.
Generating passive income on the Internet is possible, but not without some investment in time and money.
It’s easy – deceptively easy – to create a Web site, but it’s another thing altogether to create an effective passive income Web site.
The key lies in the value that you can develop in the information products for your website. In the personal development field the value of information lies in its ability to get people to buy the product on line. You can know for example that an E-book you produce is good but will somebody actually pay real dollars and buy it?
As noted earlier, sales won’t magically happen: it requires a marketing effort. In this highly populated world of the Internet, information products are produced in the millions – daily.
Add to that all the free information available on the Web and all the time people spend on social networking sites and networking sites such as LinkedIn & Facebook, some savvy marketing is required to create a as successful passive income stream based on information products. It is possible.
Passive income strategy
Your website givs you the potential to reach a target market. What’s required to market such products?
Here are some practical steps that can help you create a passive (although not so passive in terms of the upfront marketing that is the investment side of this equation).
* Create your Unique Selling Proposition, then test it in the marketplace with different keywords to see what sort of response you get.
* $500 will let you run a solid Google Adwords campaign to generate market research data.
* Analyse who bought? How many bought? This can then form the basis of your more automated campaign that operates while you sleep. Tweak continuously and keep trying new groups with key words.
On the Internet, the best marketer wins. Not the best practitioner or therapist. You can win at this because most therapists and practitioners are not great marketers and few would invest the sort of time and effort it takes to succeed in generating a passive income from information products.
Tip: Get used to testing different group targets with different key words. Don’t be surprised if you obtain quite low response rates. It’s not unusual for online response rates to be as low as 0.5 percent. For a targeted AdWord campaign, you may get a few hundred responses and only get two or three books sales. You need to get creative and experiment.
The results will, if you persevere, offer passive income possibilities. Although you may not be able to sit on the beach all day doing nothing, we are talking about additional income over and above your money-for-time exchange.