Ahhh passive income, isn’t that the dream? The idea of seeing your Paypal account growing while you’re on the beach drinking margaritas is so alluring. Except, that’s not really what building a passive business is like.
Here’s why I’m offering services to clients after building a passive business.
Building a passive business is not passive.
Passive income requires constant lead acquisition. New customers need to discover you, develop a relationship, buy and then buy again.
Before you hit that beach to see people buying your course, you’ll be hustling hard building your sales funnel and usually one isn’t enough.
I spent a TON of time making freebies, webinars and sales funnels. Once that was done I realized that freebie was now stale, the webinar irrelevant and the sales funnel wasn’t converting. I needed to update them all. If you’re building a passive business you still need to be committed to updating, changing and revamping your courses.
It’s a daily hustle of connecting and selling. Which, was wonderful as an introverted entrepreneur who loved being home and had a full 40hrs+ to work on her biz. But as my life now has more touring on the road with my band I’ve needed something that takes less hours.
While it seems as though selling services would take even more hustling, done right, it doesn’t. In my case, I’ve partnered with Lindsey Bast my FB ads analyst. My work is on gaining clients for us and she works with our clients on a daily basis. This frees me up to hustle a bit less.
Building a passive business can be expensive, labour intensive or both.
Because you need multiple sales funnels and a steady stream of new leads you’ll be spending money on software for your
- Email subscriber management
- Webinar delivery
- Sales funnel delivery
- Updating your website
- Social media graphics
- So on and so on and so forth
You’ll also want to increase the pace of your lead generation by investing in advertising. While, ideally your advertising dollars are bringing you a return, it can take a bit of time to get there.
If you don’t want to spend all that money you’ll be looking to increase your exposure with “free” marketing options like being interviewed for a podcasts, doing live events, SEO, expending your social media platforms and yes, the list goes on. These events take more time in the research, hiring of a professional to help you or reaching out manually to get all this done.
When you’re building a passive business remember that products are harder to sell.
Passive products are only harder to sell because you need to sell more of them.
There is always a segment of the population who would rather pay 10x as much for a service than do it themselves. While a passive product (think courses or a book) may provide education and community; a service provides intimate support that people are willing to pay a premium for.
If you sell your course for $199 and working with you is $1,999 then you need to sell 10 of your courses to make up for 1 high-end client. That’s a breeze if you have a large market and lots of leads coming in – which goes back to #1 and #2.
The solution? A blend of Passive Products and Services
Even with the challenges of building a passive business, I love selling my online courses and playbooks. I do see sales while I’m on the beach. I like having a blend of both offerings.
In my case, I’ve set my business up so I can help people at different places in their business. Beginners on a budget can have access to my course and do their FB ads for themselves (which I always recommend is an important first step). High-end clients can have the expertise of myself and my team take care of their FB ads for them.
When you blend passive products and services the solutions you offer naturally complement and feed into each other – like any sales funnel would.