SPI 004 (Transcript): 5 Powerful Ways to Create Profitable Passive Income Products

Pat: Hey everybody what’s up and welcome to the fourth session, number four. I can’t believe it’s here already but now we’re cruising through and I’m loving doing the podcast. I’m hearing a lot of good feedbacks so thank you for that. And a special thank you to those of you who have taken the time to go into iTunes and actually leave me a review or rating. I really, really appreciate it, appreciate that. So thank you very much.

So today we are going to talk about five powerful ways you can create profitable passive income products.

Now there’s a lot of information out there about the different types of products you can create to sell online like eBooks or membership websites and those types of things. However there’s not much information on the different and creative ways about how you can create those products. At least not all in one spot and that is why I’m recording this session for you today. I dont have any special guests. It’s just you, me and your audio player so let’s get right to it.

The first thing you could do is create an eBook using the content that you have already published. This is exactly what I did with my eBooks at greenexamacademy.com. They’re actually made up of 80 to 90% of the same material that people could get for free on my website and you might be wondering well why would people want to pay for something they can get for free. Well they’re willing to do that especially you are an authority, especially if you are an expert and you’ve been helping people out.

When you come out with something to sell even if it’s the same stuff that you have on your website already, people will pay for it. Trust me that’s how I’ve been making a living. It might sound kind of fishy to you but I offer a 30 day money back guarantee and I have not given more than two out of over four thousand eBooks sold. People are happy with their purchases and of course when you write your eBooks you want to make them happy and you could do that by simply making the eBook organized and make it look nice and make it worth something to them. Make it something of value that they’ll be happy to pay for and especially if you’re helping them achieve something that they really want to achieve even if it’s the same as the stuff on your website it could make money, trust me.

Darren Rose from problogger.net. He’s an A lister blogger. He’s spent 31 days creating 31 different blog posts since you’re on the blog it’s all free information about how to build a better blog. So that series was called 31 days to build a better blog. Well guess what he turned that series, that 31 post series into an eBook and he’s been selling that on his website. I actually interview him about that process and he, he said the exact same thing. His book is made up of about 85 to 90% of the material that he wrote for free on his blog. And know that blog, that book 31 days to build a better blog is selling because he posts his numbers on his blog and I’m an affiliate for that product as well and I have made some commissions off of it.

So there you go you dont need to create an entirely new eBook. You dont need to be afraid of holding things back from your website because you want to save them for something that is paid. Include them in your paid material like include them in your free material in your blog and include them on your paid material in your book. As long as it’s organized and its look good and it makes sense and it’s ordered right, people will pay for it. I would pay for something that is more organized than flipping through different websites and possibly the internet goes down and I lost all that information and…because it’s something packaged together people will pay for it. Right? I can’t say that enough and it’s important that it’s in an eBook because that’s the most passive way you can repurpose your content.

If you actually turn it into like a print book you’ll have to do more work like go to the post office and worry about shipping and tracking numbers and all that stuff. That’s why I really love electronic products like eBooks, membership’s websites, software, wordpress themes and those types of things cause they’re all things that could be automated really easily. You can make money while you sleep. You can sell things to people halfway around the world like just like that.

And another thing that you could do is if you already have a print book you can convert that into an eBook as well. You know a lot of print books are obviously now downloadable on Amazon or off your iPhone or the nook which is Barnes and Noble’s e reader. There’s a ton of them and again it’s nice cause there’s no shipping necessary. Your store is open 24 hours a day, 7 days a week, 365 days a year even on holidays so if you have a print book or even if you dont have print book but you’re looking to get into the eBook market such as the ones on Amazon and Kindle those market places. The Nook and Sony reader and iphone eBook store, I think it’s called iBook store, I forgot the name exactly but you can go to smashwords.com again that’s smashwords.com, S-M-A-S-H words.com and that’s a great site that I’ve explored that you can use to upload your content in word format and it will turn it into all the different extensions, file extension that are required to submit to Amazon and have people download with their Sony e  readers and all that stuff and they have the marketplace their as well.

Another example of some or actually me using content that I’ve already written to create an eBook is my free eBook, eBooks the smart way which you can get totally free right now, ebooksthesmartway.com. Go ahead and check it out. It’s my guide that actually came from a series of ten blog posts that I wrote not too long ago about how to write an eBook? How to publish it? Sell it online and automate the entire process. I wrote that all down in ten blog posts which were free at my blog and I turned that into an eBook and that has been the free gift for my newsletter. A free gift for getting on my newsletter for a couple months now and I’ve already amassed over five thousand news letter subscribers just from repurposing that content that was already in my blog. So it really works. You can create an eBook using the content that you already have and you shouldn’t be afraid of holding things back. You shouldn’t be afraid of keeping things a secret just because you want to sell them. I dont believe in that.

Now the second thing you can do is, this is actually really cool. You can interview people that are very knowledgeable about something in a niche that you want to get into. So for example I find a market using a tool like Market Samurai or Google adwords keywords tool or something that I want to get into and it’s for like pet pigs or teacup pigs cause I know, I know they’re called too. They’re like little tiny pot bellied pigs that people have as pets. This is starting to get popular for some reason.

If I only had a product about it, how to raise these guys, bring them up healthy and how to potty train them. I dont even know if you can but I could do the research and do that all on my own, create the content myself. If I want that route it would take me a really long time because I want to get information that I knew was right because I dont know anything about this subject, about pet pigs. It would take a long time for me to feel comfortable about asking people to pay me money for something I publish about it. I could probably do it and learn enough about it and I think I have the skills in order to obtain that information but it would take a really long time I would think.

My advice here is to interview people that are very knowledgeable about something. So if I followed my own advice I could find people who have pigs for pets either in person or by phone or email. I could find them through twitter then contact them for an interview cause I’m sure people are talking about their pet pigs on twitter and just pick their brains as much as possible. Ask them tons of questions cause I’m sure they’re all really passionate about these little guys and they’ll be more than willing to help me answer some questions especially if I was really interested.

So like some questions for example that I might ask because I dont know anything about this which are questions that you want to ask this people and get them to say it would be stuff like, well first off is it legal? Is it legal to own pigs? How much does it cost? Where do you get one? What do they eat? How do you take care of it? How often do you bathe it? Do you bathe it in mud? I dont know but what kinds of other products and accessories do I need? And there’s some affiliate stuff that can go on with that and you can ask your friends to see what they would want to know if they were interested as well. So you could package all that together turn it into some audio, or cd, or DVD product and you have, you’ll probably have one of the best information products out there about that particular niche coming from the experts, coming from the people, interviews from people who know what they are talking about. It’s not just one person who claims to be an expert but all this different people especially if you have video in that product maybe if it’s a membership website or something and you had pictures of people with their pigs or videos, video interviews of people chilling with their pigs at home. I dont know but I think you know where I’m going with this.

There’s this product that was done by Ryan Deiss and Perry Belcher a long time ago. I dont know if it’s still available but it’s called Make Money with Your Microphone and this is basically what that product is about. It tells you that you dont have to know about your, the subject that you want to get into. You can just ask other people and your interviewees, the people you are interviewing will create the content for you. So if that’s really cool, that’s another tip. That’s number two. Interview people that are very knowledgeable about something and even if you’re, even if you know a little bit about raising pigs and teacup pigs I would just do this anyways cause you can get so much more content for whatever you are trying to sell by asking other people.

Alright. Moving on. Number three. Teach somebody something, record everything and sell that as some kind of course or product. So here’s another example. I know how to play the trumpet. I’ve been playing it since the fourth grade all through middle school. I did wind ensemble, orchestra, jazz band. In high school I did the marching band thing. I was even in pit orchestra. And in college too I marched for the Cal marching band and then got to travel with the football team and the basketball team too. NCAA tournaments in Dallas was so cool. I’m pretty sure I could teach someone how to play the trumpet. Anyways what I could do is I could find someone willing to learn for free. For free would be cool in exchange I’d have his or her permission to record all the lessons and sell them online. Well maybe each of these lessons are on a membership website or they come in like an eBook or a downloadable audio guide or DVD series.

I dont know but the fact is that people are willing to pay to learn how to do things that’s obvious.

Now I actually bought a product from somebody who actually did this. It was a how to punt a football product. I was interested because I was a really close to joining a flag football team here in San Diego with my buddies. That didn’t happen because I had a baby boy and that has been the most important thing to me right now. So I didn’t have time to join the football team but right before that I purchased this product online that I found, actually I found it through an adsense ad from a guy who created this product. He was teaching a guy how to punt a football and recorded it, sold it as a DVD course and I totally bought it and it totally helped me and I was kicking the ball 40 to 50 yards. I played soccer for like 18 years of my life so I knew how to kick a ball but I didn’t know how to punt a football and there’s actually like a ten step process that every punter takes before he actually makes contact with the ball. But I won’t even get into that but that’s just another example of someone teaching someone and selling that process. So you know it totally works and what’s cool, going back to the trumpet thing that I was talking about.

What’s cool is that I know because I’m an experienced trumpet player, that trumpet players are somewhat egotistical. I’m saying that myself and if you’ve been in the marching band before you probably know that every trumpet player is trying to play a note higher than the other. There’s this old joke about trumpet players that goes like this. How many trumpet players does it take to screw in a light bulb? Two one to screw it in and the other to tell the first one how much better he could do it. Anyways this type of mindset is very common and most trumpet players have it and for most of them they want to play as high as possible and they’ll do anything for that. I would do anything for that. I’d purchased this special mouth pieces that were like, that had smaller holes so that the air travels faster and I could play higher. People are willing to pay for this type of thing. It’s just an idea but I could up sell some type of course along with the beginner course about how to play higher notes on a trumpet and I can do the same exact thing. I could tech someone how to do that and maybe it’s an up sell during the sell process where you know two weeks into the course I can say hey if you want to play higher you check this out for a low cost. I dont know. But I think you get my point here it just doesn’t have to stop with that first lesson, beginner’s lesson that you teach. You can turn it into an entire business for yourself. Really cool stuff. So again number three that’s teach somebody something, record everything and sell that as some kind of course. Kill two birds with one stone.

Now the next thing is kind of similar. Number four is you could do kind of a private coaching course for a small number of people. Make sure you keep all of your conference calls, teleconference calls, webinars, record all that stuff. Keep track of all your pdf action plans and lists of what to do and turn that, after the private coaching course is over, turn that into a membership website. And what’s nice is the first time you do this you might not know exactly what this students want or what people are looking for but as you go through and teach your students kind of almost hand in hand you’re going to find out exactly what they want to know and you can turn everything that you learned while you’re coaching this people into a really, really, really awesome membership website that caters perfectly for your audience. Now another cool thing about this is say you’re announcing that you’re going to take in ten students. Imagine how much buzz that would create especially if you’re popular and you have some authority in your niche. You’re going to take in ten students and hand by hand just show them exactly what to do and maybe you can hold some kind of contest to get people excited about it, build up social proof behind this opportunity and of course you’re going to turn a lot of people down so then you go through this coaching experience with this ten people and then afterwards you come back after you’ve created your membership website put everything up there that you should based on what you’ve learned from coaching this ten people about what you should put up there. You announced that hey I’m launching this membership website that has everything we’ve talked about in our private coaching course and guess what you can get it at a much smaller price. There you go that happens a lot especially in internet marketing. People take on students and then they turn that into a membership website and then from there you get a whole bunch of people on your membership website paying you monthly recurring income. Obviously it sounds easier that it actually is but it can be done.

I could talk a whole other podcast episode about membership websites and how that whole business model works but I’ll save that for later. But imagine a whole group of people in your membership website and then you announce to them hey I’m going to coach ten more people but I wanted to tell you guys first because I want to give you the first opportunity or the first shot to become a part of this group since you are in the membership website. And people will pay, pay for that. It’s like just going back and forth and making money both ways and what’s nice, what’s crazy is that this private coaching courses can cost a lot. I’ve seen, I’m pretty familiar with the internet marketing niche so I dont know, I can’t speak for other niches but some of this coaching courses go up to $2000 for like a few weeks or a few months of coaching. It’s pretty crazy and oh there’s one thing, one really important thing I want to point out is if you end up trying this method of coaching like a small group of people and then turning that into some type of information product. I would actually, I wouldn’t give away your primary private coaching opportunity, I wouldn’t do that for free. And here’s why, because you want the right students in that course because you dont people to drop out and if it’s free they’re not going to feel bad or they’re not going to put a 100% effort into it. And if they pay they’re invested. They’re vested in this opportunity with you and they want to succeed and I know you want them to succeed too and guess what the more they succeed the more money you’ll make off your membership website and future coachings.

Kind of like this example. I think I heard it from Ryan Deiss once. It’s pretty genius where he doesn’t offer a money back guarantee for his really expensive coaching programs because he knows that gives people the option to leave and sometimes just having that option there puts something in people’s heads that it’s okay to give up. So, so he went on further to say when he gets like personal training, he tell the trainer up front hey I’m going to pay for all of my sessions up front and please dont give me any way out. I dont want to get my money back if I miss a session. This way he’ll make sure he goes to every appointment and give himself the best chance to succeed and I haven’t seen him in person but he looks like a pretty big guy so that’s just kind of a mind trick you could play with yourself but again if you’re going to do this I wouldn’t do it for free. I would do it for some type of payment so that you get the best students in there. So that you could use them to help you build your membership website and put exactly what you need to put in there and help them succeed. Help them help you. There you go.

Now were on to the last thing number five. Again starting from the top we’re at number one was creating an eBook using the content that you already have. Number two was interview people that are very knowledgeable about something again that’s Make Money With Your Microphone just like I was talking about earlier. Number three teach somebody something and record everything and sell that as some kind of course. Number four which is similar to that one is you could do a private coaching course for a small group of people and turn that into some type of information product. And the fifth one which is probably the coolest one because you can get a lot done is make money by doing something you were going to do anyways. Or something that you want to do.

For example you want to learn something like how to pass an exam. You start a blog. Post up all your notes to help you pass that exam and eventually people find you via search engines and you are seen as an expert even though you’re still learning all about this test. Well this is exactly what happened to me and although I didn’t start greenexamacademy.com initially to make money after several months I had that ability to create my own study guide and of course this was after I passed the test. And I ended up grossing over $200,000 one year later from those eBooks I was talking about. The eBooks that I was talking about in number one which were made up of 80 to 90% of the same material that was there for free on my website. See how this working? Sounds easy I know but it’s not. I just want to tell you up front and if you join my newsletter you’ll know that one of the first newsletters you get is me telling you seriously that it takes a lot of work. This is not a get rich quick type of thing. If you’re here for that, I’m sorry it takes a lot of hard work but it does pay off. It’s hard because when you’re creating passive income especially in the beginning stages like when you’re writing an eBook or you’re still setting up a membership website you’re not seeing any income come in. So a lot of people give up on those stages because they dont, they dont see any money come in but you’ve got to give yourself a fighting chance. Finish the projects that you are working on and give them a chance to make you money. You might fail once or twice but the more you do it the more you are going to learn and you are going to eventually hit one out of the park so…

Another similar example to someone doing something they were going to do anyways and making money money form it was, is from, I’m sure many of you know J.D. Roth is. He’s a blogger over at getrichslowly.org. He created that site to teach himself and to teach other people how to get out of debt and now he’s out of debt and he’s one of the most popular personal finance blogs in the world. I think he has almost a hundred thousand subscribers right now. Just from our assess feeds and he has a podcast and he just came out with his own book all cause he was doing what he wanted to do anyways so…A lot of personal development blogs do the same thing and actually smartpassiveincome.com is similar too. I’m learning and sharing as I go and because of that I’m making money along the way so… Another example kind of on a different level by making money by doing something you were going to do anyways is maybe you have some kind of problem and it’s possible to create some kind of software that would  help you solve that problem or do something for you a little faster. I dont know but if you’re going to pay someone, I mean you might as well pay someone like a developer or something to do it for you and then sell that software because if you have that problem chances are someone else out there has that exact same problem and would love your solution. This is how a ton of word press plug ins get created and how people make money off of that because they’re solving problems and they’re sharing that with people who have similar problems.

For example wpwishlist that is a wordpress plug-in that actually creates a membership website on your wordpress site, totally cool. And there’s another one called subscriber’s magnet which helps people easily setup and opt in form for email list on their wordpress site. Now if, its, there’s, the possibilities are endless so one thing you could do is I mean if you listen to session number three with Glen Allsopp, one of the things he mentioned was when picking a niche is to think about your problems. This is one way you can solve that problem and make money at the same time is just to have someone else develop some of the type of software if your problem involves those types of things. Make money at the same time. So those are the five things that’s pretty cool and we’re coming up to the 25 minute mark in today’s session which is good cause that’s my target. Sometimes it goes more especially if we have a guest and I have special guest actually coming on the next session for you. There’s some really cool stuff. He’s making money doing something that he loves to do that I never thought was possible to make money from. So stay tuned for that. So that’s the end of the show guys. Again these are five powerful ways to create profitable passive income products. Hopefully there are things that you may never heard of before or didn’t think of or maybe they are and then they might just spark something in your head to do something because like I said it is a little difficult but this makes it a lot easier for you. So again thank you for listening today. If you have time, feel free to check out my free eBook which I talked about earlier which you can get at ebooksthesmartway.com and if you want to say hi come over to face book page, facebook.com/smartpassiveincome. I’m always there. We’re always talking about random stuff and I will say hi I promise. So thank you guys. Take care and I’ll see you in the next session. Peace.