One of most powerful ways coaches and consultants can use to navigate their way out of the “dollars for hours” business model is to develop leveraged income streams. Let me explain what the difference is between passive, earned, and leveraged income.
I’m going to give a shout out to Tim Conley of Foolish Adventure Internet Business Radio for giving such a great overview of the different income models.
Passive income is money you receive without working for it. For example, if you have a rental property that generates income each month, that’s passive.
Earned income is the money you receive from engaging in labor or the management of labor. In other words, “dollars for hours”.
Now, most people talking about making passive income online are really referring to “leveraged income”, because if they stopped creating content or building links, their Adsense or affiliate marketing sites would tank and they’d stop making money.
Leveraged income involves using your organizational and managerial skills to leverage the labor of other people, machines & software to generate more income than you would normally earn through your own individual labor. A great example of leveraged income is the revenue generated from repeat sales of an online course with weekly or monthly QA calls. You create the course once. The more people who buy it, the more money you earn, WITHOUT you having to do more labor. The QA calls take the same amount of time whether 1 person or 100 people call in. It’s not passive income because you have to put effort into marketing the course, doing the monthly calls and dealing with customer support. But it’s leveraged and can be residual, recurring income.
So the best thing you can do for yourself is to understand that there is no such thing as a “passive business” – growing a business takes work. OK, ‘nuf said.
Today we are going to talk to Sean Ogle, of Location 180. Sean started as a blogger and eventually built an Internet business as a digital nomad in SE Asia. He now teaches others how to start location independent Internet based businesses through his membership site Location Rebel, which he launched – bless his brave soul, from the crappy, crappy Internet zone of Bali, Indonesia. In this interview, you’ll discover:
- Sean’s membership site sales funnel, laid bare.
- The fastest way, hands down, to create an information product.
- Sean’s product launch blue print, step by step.
- The nuts and bolts anatomy of a membership site.
- Different membership site pricing models, and whether it’s better to charge a recurring monthly fee versus a one time fee with lifetime access.
- Membership retention strategies that keep members highly engaged, and coming back for more.
- The biggest challenges and pitfalls that new membership site creators face.
Mentioned in this interview
- Chris Guillebeau – Art of Nonconformity
- Dan Andrews – Tropical MBA
- Visual Website Optimizer
- John Lee Dumas
Where to Find Sean
- Visit seanogle.com
- Follow Sean on Twitter
- Like Sean on Facebook
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