What are the Best Passive Income Sources for Boomers?
You’ll be immediately steered to courses or memberships if you think passive income. But, are they really passive? Let’s start with the definition.
What is Passive Income?
Passive income can be defined as money you make that doesn’t require any active work to maintain. In essence, all the work is done upfront and it doesn’t take much extra effort to do the rest.
This definition is what we will use when we look at the following revenue streams.
You’ll also find out their advantages and disadvantages, as well as how passive I consider them in my business model.
Tripwires are low-cost products that you can sell on your thank-you page or one-time offer pages. They are usually available as soon as someone signs up.This allows you to convert subscribers quickly into buyers. This product is great to add,especially if your list is just starting. Why? Because it is difficult to make the first sale!
Because you are still building trust and content-expert associations, don’t put your first product behind a paywall.When your audience is still learning about your brand, you don’t want them to be forced into a”take or leave” situation. For a first-timer, this is a risky proposition.
They have literally just joined your mailing list. It’s a bit sleazy, isn’t?You’ve been there!I felt the exact same way once. Then I realized how people find my work and joined my list. It doesn’t matter how someone finds you or buys from your company. Your content and brand are familiarized with many people before they sign up for your email list. You’re a winner if your free content builds just enough trust, and then you offer your audience a low risk, low-cost deal.Are you thinking about adding a tripwire to your business?
These are the pros and cons of adding a tripwire to your business.
It is easy to validate your tripwires quickly so you can see what works and doesn’t.
A tripwire can be up and running in a matter of minutes.
It should not take more than two weeks.
Any more than this and you will likely add too many or complicate the product.
This prevents you from creating a catchall offer with a large course or a membership.
This gives your audience a glimpse of your paid content.
You can only use Tripwires with very specific products.
People struggle with their tripwire because they don’t know the characteristics of a tripwire or how it connects to the customer journey.
It’s almost a careless attitude to think that anything can be packaged quickly into a tripwire.
Tripwires are not all low-cost or small.
Tripwires that work once may lose their luster over time, as new products and players enter the market. Your market and your audience may change.
Digital marketing is all about courses.The eLearning industry was valued at $176 billion in 2017, and it is projected to grow to $398 billion by 2026. Are courses right for you?
These are the pros and cons to be aware of:
Courses can help you establish your authority and build trust with your target audience if
you want to be a leader in a specific topic.
Flexible payment options such as 3- or 6-part payment plans can help you to have
consistent income for a long time after your launch.
You can make a course and sell it long after you created it.
Launches are your only way to sell your courses. This will cause huge drops and spikes in revenue.
You can make your monthly income predictable by making your courses evergreen. This could be done via automated webinar funnels or email sequences.
These require significant time and resources to test, tweak, and refine. These are not easy to do right the first time.
These funnels need to be monitored and evaluated over time.
It can be difficult to deal with defaults. Some people may sign up for a 6- or 12-part payment plan. However, not all people see the value in making a monthly payment.
Others may abuse your guarantee, refund policy, or request charge backs. This is even though they have consumed your content and found it useful.
Your course messaging might change or become outdated. Your market and the needs of your audience may change. It is possible that what worked one time may not be the best at another moment.
You can become a published author with the help of platforms such as Amazon, Apple Books,and Barnes & Noble.However, how efficient is it as passive income source?
These are the pros and cons of self-publishing.
You don’t have to submit proposals or contact publishing companies in order to obtain a book deal, unlike traditional publishing.
Self-publishing your book is possible and it can be made available to huge marketplaces that could have millions of buyers.
It can be used to establish authority and credibility. You can refer to yourself in your bio as a best-selling author. This is a favorable opinion by many clients.
Even though your books were published many years ago, readers can still find them and buy them. Books published in 2017 and 2018 still sell well for most authors.
You can nurture your readers by creating a path for them to sign up for your email list.
They can continue to read your books.
Your audience experiences different outcomes and greater transformations as they go along the journey.
Because they are getting different solutions that satisfy different needs and help them achieve different outcomes, a reader can stay with your company for many years.
Your book will need to be edited and formatted. Your book cover design is also important.
Although you may feel tempted to do this yourself, hiring professionals will give your book an edge in the highly competitive book publishing market. It’s not cheap and you will need to pay upfront.
It can be difficult for your book to stand out among the countless other books available.
You must not only “play by the rules” of the platform, but also do research on the books in your niche to position your book so that it is attractive to the right audience.
To reach new audiences, you must promote your book constantly.
Self-publishing one book won’t make it a passive income source. To build an audience,you need to publish more books.
Memberships are more than one-time transactions. They’re a long-term, ongoing relationship with your audience.There are several types of membership models available: Community, Coaching, Training or Hybrid.
If you’re new to the world of online business and audience building, memberships are revenue streams that I recommend.They are more effective when you have an established audience who trusts you and your framework.
A membership can be a reliable and recurring source of income.This is a new way to reach your audience. It allows you to build a stronger relationship with your members. You can also get to know their businesses, lives, and needs.
Because memberships often combine a number of different items, it is more difficult to market them.
A recurring cost is not for everyone. Churn is something that you must deal with on a regular basis. Your audience will see your membership as an expense that is regular and helps your business grow, which will reduce churn.
It’s important to provide a great on-boarding experience and encourage people to use your membership, regardless of how it’s organized. It’s more popular the more people use it.
A training calendar is essential for your membership. It also ensures that you are providing value on a daily and monthly basis. To maintain a membership, you must put in the effort.
These income streams are real and effective. If you can start publishing books, set up tripwire offers, create memberships, or start online courses in your field, you will earn passive income online.
There are many other passive income streams available and I hope to bring more to your attention in a future blog.
All the Best. Jim
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