If you have a service business you’ll understand that feeling of trading hours for money. Even if your business is thriving, you only have so many hours in the day and your business will eventually reach a natural ceiling.
But how does the idea of making money while you sleep sound? If this cap in your hours for money trade is something you’d like to overcome, you may want to think about creating one or more passive income products.
But, what are the benefits of creating passive income products?
- You put the effort in once and you get the reward over and over again
- You don’t have to deal with customers – you set out your offering with a buy button to purchase
- You can launch in a day – just put together a sales page and email your list
- Easier to sell – by offering a set solution with specific outcomes there’s no customised sales pitch to win customers
- You get paid up front – this is what customers do – and your price on value (solving their problem) not cost.
- Make more money – your income is not linked to how many pitches you win or the number of hours you or your team have in a day
- Automate sales and service delivery – you can create a process for automation of the outbound sales campaign and the delivery of the product once payment is received
- You’re building an income generating asset that you could sell – as sales and service can be automated the business doesn’t need you as an owner to succeed.
- To do this, start with what your customers repeatedly ask for. From there you can start creating a product that customer will actually want.“If you don’t find a way to make money while you sleep, you will work until you die.” – Warren Buffett
Once you’ve built a brand for yourself, you can make money off info products, programs, webinars, and more. And if you don’t want to build your own website, you could sign up with various online education websites and start offering your products through their marketplace.
Service providers have been making passive income off the need for education on a variety of subjects for years.
Some other examples of passive income products for an online service business are:
- Selling an eBook
- Selling advertising on your blog/website
- Creating a membership/subscription site
Now, to productise a service means to turn your services into product offerings.
Here are 3 steps to turn services into passive income products:
- Identify something you can replicate repeatedly – The idea behind a passive income product is that you want to be able to get paid for selling a “thing” and not selling your time. Also, you want to sell the “same” thing over and over if you are to achieve operational efficiencies and decent profits. Look around at what you do. Chances are, if you’ve been doing something for a while, you have developed a process you follow closely and it always delivers a good result. You may not even realise you have a distinct process until you set out to identify it – but you have something. If that something is in reasonable demand, you have the start of a “product.”
- Document it – Turn your process into a step by step guide. Break it down and document the steps that can be performed over and over, by your customers who are following the instructions.
- Put limits around your offering – Many services can be open-ended. For a product, you need the opposite — an offering that is well-defined. Set limits to your offering: time limitations; the deliverables included; a flat fee price; a name you can refer to your product by.
Own Your Goal!
p.s I’d love to hear your take on this topic.
What can you create to make money while you sleep?
Leave a comment below….
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THANKS FOR READING & SHARING!