I hear all the time that being an entrepreneur is like being on a roller coaster, and that ups and downs are just part of the ride. I’m calling massive #bullshit on that.
Let’s reframe: Being a successful entrepreneur is like being on a rollercoaster that only goes up.
Because nobody I coach wants to worry about how to make rent next month. Because nobody I coach wants to work 100 hours a week to hit their sales targets this month. Because EVERYBODY I coach wants to work to live, not live to work.
You can get all the thrills you want from launching new offers and still count on a consistent stream of income every single month.
“Wait a minute, isn’t that just recreating the steady paycheck I walked away from in Corporate?”, I hear you ask. Heck to the yes! Plus, so much more.
Because you control the steady. No more 2% pay raises every year. How does a 100% pay raise sound? Because you can have both the exhilaration of the revenue hunt and the peace of mind of revenue consistency.
Create the Right Mix of Recurring and Impact Revenue
Recurring revenue is the percentage of your company’s revenue that you can reasonably expect to continue in the future. These revenues are from memberships, payment plans, subscriptions that have terms that last months or even years. These revenues are predictable with a high degree of certainty.
Develop these revenue strategies with recurring revenue targets of 60-80% of total revenue. The remainder? Impact revenue, or one-time revenue, that gives you an instant cash infusion. Events, masterclasses, and one-time private client sessions are good examples of this.
Knowing how much money you are going to make over the next six months is essential for two reasons.
One, it eliminates worry and builds confidence so you can focus on long-term thinking that will help you scale your business. Two, recurring revenue means recurring clients that are a captive audience for new offers.
Build Passive Income
In a nutshell, passive income is income that requires little to no effort. And because of that, passive income is scalable. You only have so many hours in a day you can work. There are only so many 1:1 coaching calls you can do before you enter the burnout and no-growth zone. The revenue opportunities for passive income are theoretically limitless because you are not involved in making the money on the daily.
Think about this: how can you package an offering and sell it to a thousand people in the same amount of time it would take you to sell it to one? The amount of time you need to put into this does not increase with the number of sales that you make. Scalability is ultimately about finding a way to serve more people.
Do you want a couple of examples of passive income products?
First, a fully-automated evergreen course, meaning a course with content that never goes out of date. That long shelf life gives you the opportunity to continually market your product. One way of doing this is through a pre-recorded webinar that you record once and play every day, every week, or every month that will upsell people into your evergreen course.
Second, you can repurpose and re-bundle existing content. Let’s say you did a free live stream series to promote a course. After a period of time, go ahead and take all those live streams and sell them at a low price to downsell the people who didn’t buy the course. You’ve now created a digital bundle that requires very little effort because the content already exists.
Automate Your Income
Automating your income means creating standard operating procedures and leveraging systems to do some heavy lifting in your business. Take a hard look at which parts of your business you have to be personally involved in and which parts of your business you can automate.
This goes for sales, too. Is your bright, shiny self really always needed to make a sale and generate revenue? #hellno. Look at ways to automate, organize, and systematize the process of selling digital products for passive income.
One way of doing this is by using Facebook Ads. Another way of doing this is to have batched out, written out, recorded out email sequences, social media posts, and visual content needed to sell your product. Maintain your content bank and repurpose it continually.
Automate your revenue process, so you can set it up once and watch it work its magic time and time again.
This article originally appeared on SabrinaPhilipp.com
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