How to Create Passive Income Using Your Expertise
April 5, 2016
Across the world, entrepreneurs are rushing online in an attempt to make money. It’s the new gold rush, and many are packing their bags and heading for this new terrain.
Unfortunately, many end up working more hours than their traditional jobs, only to make significantly less money. All of which poses an imperative question:
How can you build revenue without spending every moment in front of a computer?
The answer is simple: yes you can – with passive income. Simply put, expertise-driven passive income is about building products you can sell to multiple customers. When implemented successfully, you no longer trade time for dollars. Instead, you spend time creating products, attracting an audience and making sales.
It will take a lot of work. But the business owners that are willing to make the investment can reap huge rewards.
In today’s article, I’d like to share with you how you can use the expertise you sell to clients to build a new, hands-off stream of income.
1. Identify Your Marketable Skills
The best passive income ideas develop from building on your skillset and teaching others how to enrich their lives through them. For example, if you’re a professional home organizer, you’d want to help others organize their home.
Take a few moments and identify the skills that you’re selling to clients.
It’s these skills that will serve as the foundation of your product. A professional home organizer could sell a video course called, How to Completely Organize Every Room of Your Home in 60 Days or Less.
2. Understand the Types of Passive Income
There are several types of passive income, ranging from investing to renting out a room in your house. But for today’s article, I’m focused on using your expertise.
These other forms of income can be profitable. However, I want to talk about things that can directly impact your business, increase your authority and influence in the industry. And that’s where these passive income streams come into play:
- Write an eBook
- Create a Course
- Host Online Workshops
- License Music & Graphics
- Sell Stock Photos
- Promote Affiliate Products
When executed well, each of these income streams can build your brand and bring in additional revenue for your business each month.
3. Align Your Skills, Strengths and Audience
Residual income isn’t as simple as half-heartedly creating a product. To truly succeed, you’ll need to put in some effort at the beginning. And if you really want the best bang for your buck, find the overlap between the skills you have, your personal strengths and what your audience needs.
For example, a freelance writer may not feel very comfortable on video. So, it wouldn’t make sense to create a video course. .
However, if she has a knack for photography, she could sell stock photos that her ideal clients could use in their blog posts. Or she could write an eBook, develop a written course, or even promote software as an affiliate that would interest her target clients.
You should already have a list of skills. Next, it’s time to define your target audience. Finally, figure out where your strengths lie.
This means having enough self-awareness to know if you’re charismatic enough for video or if you should focus on written content. Can your create strong photos, or are you better at graphic design? Knowing these things will help you develop the best product possible.
4. Develop the Passive Income Stream
What many people don’t realize is that you need more than just the product. A truly remarkable stream will be supported by email sequences, marketing collateral, partnerships and a well-crafted landing page.
Let’s say you offer professional home cleaning. You’ve mainly built an audience on Facebook, but you also have several email subscribers and Instagram followers. As someone that does well on camera, you decide to create a video course called, How to have the Cleanest Home in Your Neighborhood Using Natural Cleaning Supplies.
To be ready for a strong launch, you’ll need to:
- Produce the video series.
- Create a landing page with strong copy.
- Write an email promotion for subscribers.
- Develop an engaging email autoresponder to follow-up and educate buyers on your cornerstone services.
- Setup the product delivery method.
- Design promotional images and videos to share across social media.
- Reach out to industry partners and ask for their help to spread the word.
And these are just the top-level points. A lot of people think passive means easy – it’s not and there’s a ton of work upfront. However, once you do this, you can sell the product over and over – meaning you’re no longer trading time for money.
5. Create an Optimized Marketing Funnel
Learning how to gain clients through marketing is a bit challenging. But with residual income, you can create an automated funnel that runs itself once you set it up.
While it can get a bit complicated, here’s a funnel that you could use:
- Outline a webinar idea on a related topic to your product
- Use Facebook ads to promote the webinar.
- Record your live webinar and include a pitch for your product at the end
- Direct leads to a sales landing page
- Use email marketing to deliver the product.
I really like making sales with webinars. It’s like pitching to 20-100 potential clients all at once. And it’s not just someone like a marketing coach that can benefit.
Let’s say you’re a lawyer specializing in Intellectual Property. You could create a webinar called 3 Ways to Protect Your SAAS Company’s IP and pitch a product like The Complete Guide to Protecting Your Digital Company’s Intellectual Property.
Use your expertise to teach some simple tactics to entrepreneurs. And by adding that value, it’ll be easier to convince them to purchase your product.
This same foundation can crossover into any type of service-based business.
Ready to Launch Your Passive Income Stream?
With each of these elements in place, you can create a profitable stream of income for your business. It’s just a matter of following these steps, making a highly valuable product, and promoting it to your audience in the right way.
Before you know it, money will come pouring in without any regular maintenance.
And that’s the real beauty of using your expertise to create passive income. Now, I’d like to hear from you… What is the name and type of product you plan to create? Share your feedback in the comments below.
about the author
Chelsei Henderson is a content marketing consultant helping freelancers and entrepreneurs build successful companies in the digital world.