As you know, each week I write to you with questions and answers that have cropped up not just in my business but with clients just like you! Over the last couple of weeks, several clients have been asking for my feedback on creating online courses because they want passive income.
Each of these clients has a specific reason for wanting an online course/passive income. One client is building his business on the side while he continues to work. Another client is a snowbird and spends a few months down south (lucky her!). Another client feels that this would b a great way to augment her income. Sounds good, so far, right?
Here’s the truth….. building and selling an online program takes time, money and energy! There is nothing PASSIVE about it. To set it up requires a huge investment of all three. AND, it requires that you have a significant tribe (or email list). In fact here are some figures that were shared with me … if you’re selling a product/program that is less than $497 then perhaps 2-5% of your email list will purchase from you; if you’re selling a product/program around $2000 then perhaps .5 to 2% of your list will purchase from you.
How does that translate….
if your list is 1000 ……. 1000 x 3% = 30
if your list is 1000 …… 1000 x 1% = 10
When you hear gurus talking about launches that bring in 6-figures …. they have lists of 100,000 or MORE. 100,000 x 3% = 300
DO YOU HAVE A LIST large enough and responsive enough to warrant the time, money and energy investment?
In the case of all 3 clients …. the answer was no.
There is a time and place for EVERY business activity. There is a definite sequence to building a profitable and thriving business. Building an online course before you have a significant list is like having the cart before the horse.
The moral of the story …. start building your email list while you are testing out and tweaking your Premium Signature Program. When you know that you’ve got the right program, the right marketing language and the right audience, then create an online course!
Believe me … it’s easier to build a profitable & sustainable business using networking and speaking as your outreach, than creating an online program! Yes you can get to $100K just using networking & speaking! And networking & speaking don’t require fancy technology, complicated sales funnels or expensive facebook advertising.
So how will you spend your marketing time, money & energy this week?
PS. If you want an online business, then go for it! Just realize, there isn’t anything ‘passive’ about it!
PSS — please take note of the NEW DATES for upcoming events below!!!