Unicorns, vampires, and Big Foot, oh my! There are plenty of myths out there, and some would lump passive income into that category. (What is passive income, you ask? Why, passive income is when money comes flowing into your bank account without you lifting a finger to “earn” it, like if a person buys a book or information product from your website and they automatically receive their purchase while the money gets deposited directly into your bank. It’s a beautiful thing, really. There’s nothing quite like seeing email notifications of sales rolling in when you’re nowhere near the office, or maybe doing one-on-one work with clients, or even catching some zzz’s.)
Some people argue that there really is no such thing as truly “passive” income because there is some work involved.
True. To an extent. You do have to write the book, or record the paid webinar training, or whatever else you’re selling.
BUT (and this is a big but) there comes a time when passive income is truly passive.
With that in mind, here are 3 reasons why passive income is NOT a myth:
1) Once you cover your upfront expenses, you’re in the passive income zone. Yes, there is some work involved with generating passive income. You do have to create the info product (or find someone else to create it for you). You have to set up your shopping cart (or have someone else do it for you :)). You have to send traffic to the page, whether that’s through writing emails to your database, sending out social media shouts, or whatever other method you choose. But here’s the thing: it typically only takes a few sales of your information product to cover your upfront time or investment. Everything above and beyond that is gravy.
Let’s run through a quick example. Say you typically charge $100/hour, and it takes you 5 hours to create your information product, plus another 30 minutes to set up the shopping cart link. That’s $550 you’ve put in upfront, right? If you sell your information product for $49, your first 12 sales would cover your upfront costs. Up to that point, you’re not operating on passive income. You’re getting paid for your time spent creating the product. After those first few sales, though, your upfront investment is covered and everything else is…wait for it…passive income.
2) After you do the work upfront, you don’t have to lift another finger to keep earning income. Here’s how it works: potential clients visit your sales page. Those who decide to purchase your product use your shopping cart, which has been set up in advance, to place their order. The shopping cart then sends your new clients to the link where they can download their goods (or an autoresponder email set up in advance sends them the login details). Your clients get immediate access to their product, even if it’s 2 a.m. on a Tuesday (and you’re peacefully sawing logs, or maybe out dancing the night away…whatever trips your trigger), which means they can get started right away on whatever transformation you provide. Their payments get automatically transferred into your bank account, so you get paid for holding up your end of the deal: providing the tools and resources folks need to get ahead.
Nutshell version: your client gets the info they need, you get paid in full (not to mention the warm fuzzies of knowing that you’re out there providing the resources that can truly make a difference in the lives of others). Everyone wins.
3) You do the work once and get paid over and over and OVER again. When you do awesome work with one-on-one clients, your reward is feeling the satisfaction of a job well done, and perhaps earning some referrals so you can do awesome work with other one-on-one clients. Right? Because even if clients LOVE what you do, they’re not likely to say, “You know what? This was so great, I’m going to pay your invoice twice!” Hm, not likely. So that work you’ve done, as amazing and worthy as it might have been, is often a one-time gig. And then you go to the next client and start from scratch, often walking them through the same (or highly similar) steps and solving the same challenges.
But how awesome would it be if you could essentially clone yourself and end up not only helping TONS more people (cuz after all, there is only one of you now and only so many hours in the day for one-on-one work) but free up TONS of time in your own calendar at the same time? Now, I’m not suggesting there’s anything wrong with working with folks one-on-one, or that you should give up that aspect of your business if it’s something you enjoy. I’m just saying that there are ways to greatly expand your reach without burning yourself out by serving one-on-one clients around the clock. After all, we’re human and we do gotta rest sometime, right? 🙂
By capturing the essence of what you do in an information product, you can do amazing, life-changing work one time and get paid over and over and over again by folks who buy your downloadable product and can work through it on their own. How cool is THAT?
You can serve up life-changing info to 50, or 100, or 1000 (or even MORE) people in the time that it previously took you to work with just one or two. And there will still be folks who want (or need) one-on-one interaction with you, and who will pay dearly for it. But for the rest of the folks who either don’t need (or can’t afford) your one-on-one work? You’re no longer leaving them out in the cold. You’re giving them another option for getting the help they need in a way that works for them.
Now, THAT is a beautiful thing.
Want a fill-in-the-blanks template for writing your first (or next!) passive income product, plus 11 fill-in-the-blank title formulas to help your product stand out from the crowd and get folks excited about your solution, and lots more? Check out the Instant Passive Income Product Template for everything you need to whip up a client-attracting, passive-income-earning information product in a hurry. Click here to learn more and get your copy now.
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Tammi Metzler, founder of The Write Associate, is a self-professed “word geek.” Her greatest joy is in playing with words all day to find just the right combination to get folks all fired up. In the daytime hours, this means writing online marketing copy that grabs the attention and interest of readers so that they “get” the awesomeness of the product/service in question and think “I gotta get me some of that!” After hours this often means finding just the right words to get the response she’s looking for from her husband, 8-year-old daughter and/or toddler son (grin). She offers tons of resources about creating compelling marketing copy that excites & engages your ideal clients on her blog at www.WriteAssociate.com.