Passive Income Stream — 5 reasons you need it

Have you heard the phrase, “Make money while you sleep”? It’s a common phrase thrown around the marketing world that usually results in me rolling my eyes and expecting another “Get Rich Quick” scheme. But on another level, it describes the power of passive income or the idea of making a product one time and reaping the rewards for years to come.

Passive income can benefit absolutely everyone, no matter what type of business you have or what type of entrepreneur you are. 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 for your audience.

Here are 5 reasons entrepreneurs need to create a stream of passive income:

  1. Supplement your income when a customer cancels their contract. 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 fill that space, you can approach the task calmly, knowing you have passive income to fill that gap temporarily.
  2. 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 other products or services.
  3. 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.
  4. Lead your prospects through a sales funnel, ultimately leading them to your more expensive products or services. A sales funnel is a must-have for entrepreneurs because people want to know about your practices prior to paying hundreds or thousands of dollars. Showcase your expertise with smaller, more inexpensive products first, then entice those buyers with your higher-priced packages. (Read how to create a sales funnel here.)
  5. Use products as part of your overall marketing plan. When you have products, you can run promotions that receive lots of attention on social media. Offer a freebie, a bonus if they buy a service 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.

Now the question becomes: How to create products your clients will actually buy.

Many entrepreneurs don’t know what to offer or think that their high-end products are enough to sustain their lifestyle. Sure, your clients hire you for your specific skill set and specialty but wouldn’t you like to earn more in your business? Wouldn’t you like to reach more of your target audience who aren’t quite ready to purchase your big-ticket services? This is why you need products to sell in addition to your primary services.

What Will They Buy?

A simple way to determine what your audience needs is to simply ask them. Create a survey with Survey Monkey and ask your followers on social media and on your email list to complete it. Maybe what they are looking for is a simple ebook or a workbook. Others may be looking for a class to resolve their particular problem.

Also, ask your current customers what they need. This is especially important to retain them as lifelong customers. What’s the logical next step for them to continue learning with you?

Identify Your Target Market

You have likely done this exercise already however it’s important to reanalyze your market and identify any changes that may have occurred. Have you stayed true to your initial business plan of attracting your target market or are your clients at a lower income level? How do you attract new prospects?

By creating lower-priced products, you’ll attract people who aren’t quite ready to purchase a high priced item. However, these are still good prospects to have in your sales funnel because they can start slowly with your lower-priced items and as their income increases, you can offer higher-priced items, eventually leading to your highest priced product. While they progress through your products, they will see you as a credible expert and will trust this expertise.

I hope this idea of passive income intrigues you because it could really be a game-changer in terms of your business income.

Originally published at https://karenrepoli.com on January 26, 2020.

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Business Strategist passionate about helping motivated entrepreneurs. KarenRepoli.com

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Karen Repoli

Karen Repoli

Business Strategist passionate about helping motivated entrepreneurs. KarenRepoli.com

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