Ever since my acute interest in the business world was first piqued, the notion of passive income/”money while you sleep” has deeply fascinated me for a number of reasons. Here are a handful of them:
1. It sounds so easy! Why does anyone bother to pursue any other income stream when you can literally earn money while you sleep?
2. I bloody love sleeping, and I’m good at it!
3. If it really is a thing, why isn’t everyone doing it from the get-go?
For those who are unfamiliar: passive income is, quite specifically, income you receive through sources you are not materially involved with. Rental property income and silent partners in various types of enterprises receive passive income, for instance. In the business of coaching (and other service providers) passive income involves a little more material involvement. It is typically attributed to the creation of products and fully automated systems to sell them for you… without you having to (further) lift a finger.
Turn the handle, watch money fall out.
… just like that.
Now, I’m not here to say that there isn’t such a thing as a well-oiled passive income machine that will generate you lots of income, because there is such a thing, and it comes in many, many different shapes and sizes. However, getting it to the point where you can wipe your oily hands on your overalls and walk away knowing it will do the rest of the work for you takes a great deal of work. That’s time, effort and money you might not have lying around. Which is exactly why everyone isn’t doing it from the get-go.
Just in case you do have some lying around, here are a few things you’ll need to make the passive income dream a reality:
- A relatively low-priced product (which you already know will sell – there’s a whole separate blog on this subject here)
- A landing page to sell the product from
- Ads pushing traffic to that landing page
- A way of fulfilling that product once it’s been purchased
… and those are just the basic components.
Yes, there are shortcuts such as Daily Deals sites which handle steps 2,3 and 4 for you, but they take a commission. A big one. This means half (or more) of that passive income you’re earning is swallowed up before you’re even aware of it. If you’re okay with that, great – we have a seminar on that subject and it’s a great way of getting started. However, for those who are dreaming of the revenue garnered and time saved first and foremost, you may be in for a bit of a shock.
So, is passive income a myth… or a legend?
Let’s look at this way: a myth is something that is regarded entirely as fiction, whereas a legend is usually based in truth, with a few mythical properties (i.e. exaggerations for the purpose of storytelling). So, for all intents and purposes, passive income is as much of a legend as, say, the “Get Rich Quick” scheme. Yes, there’s some truth to it (it’s something anyone can set up providing they have a sellable product and it is a great way of boosting revenue) but there is some storytelling at play.
Yes, you can make money when you sleep. But that’s only because you’ve already put the systems in place, which does take time. What passive income actually means in this context is well-leveraged time. Abandoning the notion that the only way to make money is to directly swap it for your time, on one:one or perhaps a one:many basis, and looking at ways to leverage your time well at one time to best serve you later along the line.
I quite like to think of passive income as what looks like a unicorn in the distance. You run over to it, only to find it’s actually just a pretty horse. And it’s (almost) as hard to catch!
If you’ve conceded that chasing the unicorn is a waste of time but you’d still quite like to catch the horse… where do you start?
Get a product to sell and gear the rest up as you go. Once you have your product, you have something to build the rest around – including a follow up campaign. But more on that in a later article.
Create a product, but do it for the right reasons: to get yourself in front of the right people and to start the conversation. The low price point is a means of entry, a gentle way of warming up the kind of leads that will ultimately become your coaching clients. It’s the carrot that will draw the horse to you. Catching that horse is an entirely different task, but at least it will be a little closer.
If you like the idea of creating your own product but don’t know where to start, we’re holding a workshop to help you get there on the 26th of August (2016). If you’d like to find out more, click the banner below.