Passive income is the ultimate goal of every living and breathing entrepreneur.
If you still don’t know what passive income is, which I totally doubt, it means an income stream you can create that does not require your direct involvement.
If you want to earn more money and work less the same time you have to find a way to shift and transform your business to a level that it does not require your direct involvement.
It doesn’t matter if you are just starting or running your business for a while, the sooner you understand how important creating a passive income is, the sooner you will achieve personal and financial freedom and live the life you have dreamed for.
Sounds good, right?
Well, it is not that easy. It requires motivation, persistence a lot of hard work.
When you want to succeed as bad as you want to breathe, then you’ll be successful and create a residual income for life.
My question is how bad do you want it?
There are many business models out there that can build a passive income for you, but I particularly like the ones you become successful helping other people achieve success. It is a win-win situation.
My personal favorite business models are MLM /Multi-Level Marketing/ and Information entrepreneurship /Information Marketing/.
I like these both business models as you can create multiple passive income streams using the power of leverage. No matter which one of them you will choose you can’t go wrong.
Let’s look at them in details:
MLM is a distribution system which channels goods or services from manufacturer to the consumer by the network of independent distributors. The main reason this business model became so popular the last couple of decades is because it cuts out the middle man.
The genius thing about MLM is that there is no big fat advertising budget and the retailing amount is paid out to individuals who spread the word.
Some of that money also goes back to research and development of new products and that is the main reason MLM products tend to be higher quality than the store bought brands.
MLM allows anybody to build a home based business without a large upfront investment, no franchise fee or employees are required.
MLM companies benefits from your success so it is up to their benefit to provide you with a helpful support network to educate and teach you how to run your business as well as to provide a generous compensation plan to reward your work and efforts and keep you working for them.
Recruiting And List Building
Recruiting new representatives and growing your list is a vital part of the business as the more people you sign up in your network the bigger residual income you create.
It is the so called power of duplication.
Here is how a MLM network looks like:
As you can see in the picture above you get paid when people you signed up sign up new people and when people signed up by the people you signed up sign up new people and so on down to the whole chain.
The question is how to recruit new people?
If I have to be completely honest it can be very tough in the beginning but since I used to work in the real estate business I have quite a lot of experience in recruiting new reps.
First things first. You have to understand that recruiting new people is a numbers game.
It really is!
Based on two years of searching for people hungry for success and wealth I can boldly say that from every 10 people you approach only one will enter in your network and work hard to build a passive income.
Only one of ten will share your business visions and these people are hard to be found as pearls in the ocean, so my main recommendation for you is to take some time and build your list carefully and the correct way.
Don’t hurry and take all the time you need!
Where to find new prospects and reps? Let’s look at my favorite places:
#1. Speaking Gigs And Conferences
One of the best ways to recruit new reps is to attend big conferences you are going to speak in. I don’t like to speak in front of such a big audience but since I run a consulting business and I’m an authority in my industry I have to do it every once in a while.
The worst thing at these events is that usually at the end of the night I end up with a hundred business cards of people looking to pitch me their products or services.
Good news is that my best consultants and clients I met on such workshops.
When you look it as a time investment this is really the most time consuming process to build your list but it’s worth every second you invest in.
#2. Phone Calls
This type of approach is perfect when you present the company you are involved in to people in network marketing industry looking to switch their organization for better conditions and compensation plan.
In this case you don’t have to necessary schedule a personal meeting as they are already working in the industry. You can recruit new reps based in distant locations too.
I must admit that pitching new reps over the phone has a down side. It tent to convert slightly less compared to personal engagement but in the long run you can achieve amazing results.
#4. Using An Online Platform
Building an online platform promoting your business is an amazing way to brand yourself and spread the word about what you do.
An online platform is usually a blog where you connect and engage with your audience. It builds credibility and most importantly generates new leads you can easily sign up.
Combining your blog with social media adds up some extra social proof and increase the trust in your brand.
Motivate Your Team
Motivation is an essential part in network marketing and can highly boost or affect your business. I’m mentioning it as somewhere on the path to wealth and success some people in your network will lose their hustle.
There is no way to avoid this, it is happening all the time. I’ve seen it many times and best way to limit this lack of motivation is to encourage your team regularly. You can organize lunches during the week, team buildings on weekends and at these events you have the opportunity to step up and pump your team.
I found out that running contests in your network works great to increase your team results and builds a momentum. I always reward my best performers. It is a must if you need to improve your long term results and passive income respectively.
Information entrepreneurship /or so called Information Marketing/ is a business model in which an individual is creating, marketing and selling informational products on a certain topic. This means that you get paid teaching other people things you are good at.
This is my favorite business model as people in this industry achieve success creating value and helping other people to succeed.
This type of business is really profitable as created products are digital, costs to build them are incredibly low and no shipping is required.
Information entrepreneurship is extremely easy to be scaled. It is the best solution for people looking to make more money working less.
It is the only way to demonstrate your expertise, become an authority and leader in your market and get paid the same time 🙂
How To Choose A Market
Choosing a market is crucial when it comes to information marketing. I recommend when you choose your market to consider what you love to do and what you are good at.
You can choose any kind of market but I figured out that if you are not passionate about it there is a big chance you will quit sooner or later.
My other recommendation is when choosing a market to be as specific as possible and go two even three levels deep if possible.
What I’m talking about? Check the following example.
Let’s assume that you own a bakery and you can bake any type of sweets and cakes. Go deeper into this market with just one level – from everything you can bake you focus on cakes. Let’s narrow the market even more – you can bake any kind of cakes but you focus on chocolate cakes only.
That’s it! Now you are targeting a specific market and group and you have to become the number one choice when it comes to chocolate cakes.
I’m sure you are wondering if you are targeting a specific narrow market isn’t that too small?
No, it is not!
When you dedicate to a specific group it is easier to get noticed and connect with this market.
When you become an authority feel free to go big and expand you market but first you must divide and conquer.
So far you have made the two most important steps in business – you took action and you defined your customer’s needs.
Now is the time to create a product or service to solve people’s problems and respond to their needs.
Let’s look at the product creation process.
#1. Product Outline
Product outline is the foundation, the skeleton of you product. In this outline you must break down the whole product into small chapters and modules – what problems you product solves, how it solves them etc.
Write down the product outline and develop it further!
#2. Product Formats And Tools
Since you choose information entrepreneurship to bring down your costs and avoid big expenses of physical products there are few product formats you should consider.
E-books became very popular the last five years. They are extremely easy to create, prices are usually higher than print editions, they save the environment and can be easy downloaded.
The only tool you need to create e-books is Microsoft Word. As soon as you are ready with you content the only thing you need to do is to export the document in PDF format.
That’s it! Your e-book is ready.
Video courses are my favorites. They engage the best of all other product types and their market price is higher.
The only down side is that video products takes more time to be created and you would need slightly bigger budget.
All tools you need to produce a video course are paid but since the profit margin is huge you need to sell only a few units to cover your expenses. Once you purchase the tools needed you need just a bit of time and creativity to get it done.
Presentation Software – Keynote for Mac users, Microsoft PowerPoint for Windows users;
Screencasting Software – Camtasia and ScreenFlow for Mac users, Camtasia for Widows Users;
Camera – any web or digital camera which records in HD would work;
Microphone – the most important tool for your video products. Invest some money and get a high quality mic as the sound needs to be clear and crisp. Blue Yeti mic is the best I have ever used but if you are on a limited budget Snowball mic is a good alternative.
Audio courses are the perfect solution for people spending a lot of their time traveling. Usually audio products are distributed in mp3 format which makes them compatible with all kinds of audio players, mobile phones, tablets, notebooks and desktop pc’s.
If you have a video course already you can just extract the audio from video files and BOOM… you have an audio product.
If you will build the audio from scratch please refer to the Microphone section above.
#3. Pricing Your Product
Pricing depends from the market you choose and type of product you created. Usually prices are as follow:
E-books – $1-$49;
Video Products – $7-$15 000;
Audio Products – $3 – $199.
#4. Market Your Product
You have worked really hard to put your product together. It’s awesome, it is looking great, content is great. Now is the time to do the marketing part and get it in front of as many eyeballs as possible. You have two options:
Using Your Own Traffic
If you are a leader in your market and have an awesome online platform with decent amount of traffic and engaging social following you are ready. Host your product on a website and point all traffic you have there and just collect the money.
You are just starting out, you have a product ready but no audience to market. Don’t worry. There are a few platforms with build in marketplace with millions of hungry buyers ready to pull out their credit cards for you.
I believe that ClickBank, Udemy and E-Junkie are great places to start with. They have huge customer database and do all marketing for you. Of course they get percentage of every sale but it is better to get percentage of something than 100% of nothing, right?
Plus, if your product answers to your market needs you will make a ton of money and build a passive income as everything runs on autopilot.
Money Is In The List
I bet that you have heard this million times before. Well, it is not entirely true.
I truly believe that money is in the relationship with the list. And if you are not building an email list, stop everything you are doing because you are missing HUGE OPPORTUNITY.
The only purpose of your business from day one should be building an email list. Best and only tool you will ever need is Aweber. Remember this name as this simple piece of software will create for you a passive income for life. They offer $1 special deal for the first month. Click and register now because this will be the best spent dollar in your whole life, I promise. Yes, that’s an affiliate link and I get 30 cents if you sign up.
“A loyal customer is ten times more valuable than 10 new customers!”
Amen! Building an email list is your most valuable asset as people bough once from you will buy again and again.
Having an email list will give you the opportunity to create traffic on demand. Time change, people change but your email list will remain your main income source forever.
Rinse And Repeat
Your product is ready, you are marketing it successfully and you are in the process of building an email list.
You created your first passive income source.
Now, breathe deeply, buckle up, sit on your butt and start working on the second one.
Rinse and repeat!
If something is working do it again, and again, and again. Create as many passive income streams as possible.
Information entrepreneurship is the most scalable business ever. I know it is hard in the beginning and a certain amount of work is required but you have to overcome laziness, stop finding excuses and get out from your comfort zone and do it.
I’ll ask again.
How bad do you want it?
Most of you say you want to be successful and build a passive income but you don’t want it bad, you just kind of want it.
When you get to the point you want it more than you want to party, more than you want to sleep, watch TV or be cool you will be successful.
I told you in the beginning, no matter which one of both business models you choose you can’t go wrong. Find which of them match your personality.
If I have to be completely honest for me Information entrepreneurship will always be my number one choice. I prefer it because in MLM business is required to speak in front to big audiences /which I hate/ and results depend on the performance of your network.
I like to have control on my entire business and my results to depend on my own efforts. If I don’t get the desired results I know which one to blame.
How about you?
What are your thoughts?