Here’s a BIG success principle I’m eager to get off my chest about passive revenue…
Passive Revenue is a Myth!
It’s a myth because it ignores or tries to sweep under the rug all the work it takes to set up and maintain the so-called “passive revenue”.
And I’m guilty in the past of seeding this idea. But I want to come clean today and say it’s a myth… and… there is a MUCH better way, a much more accurate way, to think about this.
You see, when the Internet took, off people realized you could sell information and a whole industry was born: Internet Marketing. This included selling information products online. And this is when I got into the scene back in 2005.
I branded myself as the “Info Product Guy” and I helped a lot of small business owners take the information out of their head and turn it into information products, which included home study courses, CDs, eBooks, etc.
But I noticed something shocking with my clients. Only about 20% of them made a lot of money with their information products – in some cases multiple 6-figures. But the other 80% didn’t. Sure, the product opened many doors for them. They attracted new clients, they increased their visibility and prestige, and they got more speaking gigs.
But it really bothered me why they weren’t making even near what the other 20% of my clients were getting. What was the difference between these two groups?
As I analyzed this I discovered that my clients in the 20% group were already in business at least 3 years. They already had a list of buyers. They had a clear niche already established.
The other 80% group didn’t. They were in the early stages of their business and still figuring out who they were in their business, what they really offer, and whom they really serve. The problem was they were using info products as a way to try to figure all this stuff out. And that didn’t work for them.
So then I had to ask, “Well, these are smart, good people. Why are they jumping to info products when they didn’t have a solid foundation?”
I remember I was sitting at a marketing event listening to a speaker when suddenly it hit me. People are being told that trading dollars for hours is somehow really, really bad.
And now this false belief permeates the whole industry of coaches, consultants, healers, and all the other service professionals.
So what do people do? They latch onto the idea of, “I just want passive revenue! I don’t want to work with clients because I’m limited there.”
And now we have a whole industry avoiding what actually works! And I’m committed to help shift things back to a common sense way to build a thriving business.
I want you to succeed – so hear me out here…
The 20% of my clients who made great money with their info products had one major thing that the 80% who struggled didn’t have… They offered a service as a base to their whole business. They never started out JUST making and selling information products. No! For years they provided REAL value through services – usually good old-fashioned one-on-one service.
The info products they created were a SUPPLIMENT their solid, base line service income.
In other words, they had ACTIVE income before they ever had PASSIVE income.
They learned from actually working one-on-one with people what their market really wanted… and most importantly, how to sell their services face-to-face (or phone-to-phone) to real people. They offered real value and saw first hand how their knowledge and systems produced solid end results and benefits to their clients. They then took that practical, real-life knowledge and turned it into their successful information products.
That’s why they made money with info products.
So for me personally in my business, since 2005 I’ve been backing up how I help people more and more. I see the path for you so clearly now.
Let’s build a solid foundation first. Let’s design a service that provides real value first. Let’s get you experience selling your service to real people before we even mess with the Internet or information products. Once that’s in place and you’re earning $10,000 plus a month (from your services), THEN let’s supplement your income with products and programs.
I know this is counter to what you hear the Guru’s telling you. And I know I might lose some of you who insist on trying to do a business bypass and buy into the myth of passive revenue without any active revenue first… but I’m telling you how it works in the real world.
So I have an alternative way of thinking about this for you right now. This is really huge…
I invite you to banish from your vocabulary the phrase Passive Revenue and replace it with the words LEVERAGED INCOME.
Because the term leveraged income is MUCH more accurate and doable. This means focusing on common sense, reality-based strategies to getting better results with less effort.
For example, here are 4 ways to you can integrate leveraged income into your business…
1. Attracting More Clients
Look at what’s been the best, easiest way you’ve attracted clients in the past. Focus your energy on maximizing that WAY before you go off trying some complicated unproven new marketing method. Do more of what’s already proven for you in the past and make it better before chasing the next bright shiny object. That’s leverage.
2. Providing Real Value
If spent the time honing your craft and becoming truly masterful at what you do vs. scattering your energy trying to be all things to all people, then you will automatically grow your business. Why? Because you’ll get referrals – the heart of virtually all business. That’s leverage.
3. Getting More From Your Current Clients
One very simple, doable thing you can do right now in your service is raising your rate just 10%. It’s not a lot to your clients, but it adds up to quite a bit for you at the end of the year. That’s leverage.
4. Place More Importance on Sales Than Marketing
This might surprise you, too. But the more time and energy you spend practicing talking face-to-face or phone-to-phone with potential clients and sell them into your service, the more powerful you become. Yes, of course marketing and client attraction is important, but the soul of your business is your ability to communicate with people directly what the ultimate benefit is to them if they hire you. That’s leverage.
For now I want you to comment below. Share with our community here how you can start to leverage your business more. Share with me what you think of replacing the words passive revenue with the words leveraged income. Maybe share one small, simple way you can maximize and leverage your income from what’s already working for you.