Chasing passive income can often hold you back in your business growth.
Today I want to talk to you about the bold statement I’ve just made.
Who doesn’t love passive income.
But I often see clients who are chasing passive income and they’re failing at their business growth, or even worse they’re creating enough just to sustain themselves to get them through, but not really living the life they desire.
Because they don’t make enough money in their business first for them to allow their business to grow.
So what they’re doing is they’re spending hours doing launches and selling a low-end product, which frankly is exhausting.
Recently I was talking to a girl who was bragging to me about her 15 sales – when I asked how much did she make, she answered two thousand pounds. But what she didn’t say was that she was exhausted and was a long way from hitting the income goal she truly desired.
So, me, I prefer to work with fewer clients, create more income to start with, then go on to create passive income with ideally higher ticket programs, which give you the money and sustainability to grow your business.
For example one of my clients is worth seven and a half thousand pounds, and I’d rather have one client than 15.
But it does depend on where you are in your business.
Passive income is about creating an asset that you can get paid for over and over again, without ever really having to spend time in that product or service or spending a little bit of time, maybe an hour or two a week.
There are a variety of opportunities for true passive income out there.
You could think about;
- Renting out your spare room,
- Selling affiliate products,
- Having stakes in other people’s businesses,
- Investing in share funds,
- Renting out your car (that’s a big thing in America at the moment),
- And many more.
For me my big passion is about creating income online with your existing knowledge and skills, and to do that you have to create an asset that you can sell over and over again.
To get the fastest results you need to put in more work up front, then it will gradually become more passive as you go along.
You’ll get better at delivering it.
You’ll record all your content.
You’ll create all your worksheets.
You’ll build a community.
And then you’ll have other people selling it for you.
And most importantly – make sure that you sell it before you create it!
If you’re just starting out and building an online business, the first priority to me should be leveraging your time. This looks like moving from working one to one, into a one to many model. Ideally at some sort of higher ticket price point in a packaged format, and ideally with your own methodology or process – such as an online coaching program, maybe a high ticket course or mastermind.
But moving from 1:1 to 1:Many stops you charging by the hour and you start to charge by the end result.
Then as you grow you create sustainable revenue long term and you can introduce a lower level membership as well that can continue to build up your monthly income.
Then you want to sell more passive products.
So is passive income good for your business?
But it also depends on where you’re at on your journey.
Don’t try to be like a guru, who is 10 years down the track in their business before you’re able to walk.
Your first priority is to look at moving from one to one, into a group format, increase your prices, create your assets and then get out there and build more recurring revenue.
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