How to Choose a Product for Your Passive Income Business
In your quest to make $30,000 per month like me, or whatever it is you’re shooting for – you have to decide WHAT PRODUCT(s) are you going to create. There are many ways to go about this, but follow along with me below and we’ll get this done. By the end of this article you’ll know how to go about narrowing your focus down to a product that can work for you.
First Decision – Physical Product or Service?
If you choose ‘service’ – you have to create something that is scaleable if you want to make the ridiculous amount of passive income. I mean $15,000+ or so per month passive income. If your service isn’t scaleable, you’re going to top out at some number and that’s going to be it. If your service is so technical that you can only find two other people in the WORLD to provide that service to your customers, then what are you going to do? You’ll top out and that will be it.
Choose a service that scales BIG!
Or, better I think, choose a product instead. Products scale easily!
Second Decision – Physical or Digital Product?
See, now we’re getting into it. There is nothing like the convenience of a digital product. Its weight is negligible. The speed of delivery is damn near the speed of light. You can send thousands of digital products for pennies. You can create them out of thin air for free once you’ve made them the first time. You can have other people sell the products as affiliates in just MINUTES by setting it up on Clickbank, e-Junkie, or some other affiliate programs. You can scale instantly and without limits with digital products.
Some of you are scared already. Why? You don’t think you have the skill to make a digital product. That might be true, you may not. However, you can create the product as best you can and then hand it off to someone who CAN create it and make it awesome.
Work with your strengths and hand things off that you cannot do exceptionally well!
A physical product can work too. We have an ecommerce business where we sell physical products. It works because the products are very small, lightweight, and we can mark them up by 500% to 1,500%. The customers are amazing! Why? They’re Buddhist. It’s really a lovely little niche. Unfortunately, if you’re not in Thailand, or if we don’t sell you this business, you’re going to have a helluva time setting one up for yourself.
We are interested in selling it though because in 2015 we are refining our focus and we don’t need the distraction. It’s distracting because it makes $1,500 to $4,000 per month after expenses and so it’s hard to ignore it completely. We want to, and it’s getting to the point where we are finally getting serious enough about the $30,000 goal per month that we will have to start doing just that. We’ll sell it for $29,000 – including multiple websites, and the huge inventory. It’s been successful for 6+ years, constantly growing. We can send you all the inventory we have too – 2,500+ pieces of Buddhist jewelry, hundreds of necklaces, and thousands of bracelets. All inventory included! Anyway, contact me about it if you’re interested. Back to ” HOW TO GO ABOUT CHOOSING A PRODUCT!”
I S-T-R-O-N-G-L-Y suggest you choose to create a digital product.
It just makes sense. You might as well go about it the easy way and create something digital. Yes, that’s the easy way. Creating a service, finding other people to help you provide it, or creating a physical product and engineering it, shipping it, etc, it’s all too much pain in the ass and you should just get your heart set on a digital product for your digital business.
What Types of Digital Products Might You Create?
- website with information you put ads on to make money
- membership website
- website with online applications people can use for a fee, or with ads on the pages
- computer software
- mobile software (apps)
- ebooks (fiction, non-fiction, children’s)
- emagazines (travel, product focused, scientific, hobby/interest focused)
- videos (informational, tutorial, showing someone living ‘the dream’)
- art, photographs, scans, maps, printable posters, info-graphics, etc.
This isn’t a comprehensive list. You get the idea. I’m not telling you anything new here. You know what is possible. Even some things that haven’t been possible in the past, are becoming possible now.
There are positives and negatives to each of the above digital product types. Personally, I like ebooks, video training tutorials, and I’m strongly considering producing mobile apps. I have a ton of ideas, and this year is the time to jump in if you also have a great mobile app idea.
What Other Questions to Ask Yourself About Choosing a Digital Product for Your Business?
Let’s say you’re going with the highly recommended “Digital Product” uhm, product. How do you know WHAT to create? You might already know. You might be a photographer and a graphics whiz and you might have an idea to create a series of info graphics that turns the world upside down. Nice! Or, you might know a great way to teach people how to play the xylophone in eight easy steps. Perfect!
Me? I am all over the place with my ideas. Here’s how I’m going to figure out which digi product to create and sell…
Ask yourself – “What am I so excited to create, that I can’t stop thinking about the possibilities it has?”
Ask yourself – “What do I see myself doing in a year?”
Meaning, do you see yourself creating a non-stop line of products continually for the next year, five years? Or, do you want to create one product that you keep revising to make better? Do you want hundreds or thousands of products, or just a couple?
For me, I see myself creating one good product that I use as a springboard to complete a few more products in the same or a similar niche. I think the success of one product is more likely when you’re focused on it 100%. Just make one to start – and hammer it. I mean make it as amazing as you can, using the feedback of critics to do so. Make it so good that nobody can criticize anything about it. Get that product selling like mad and then decide if you need to make any more products to increase your sales, or maybe just keep improving that one product over the next few or even scores of years.
Ask yourself – “Is that one product able to make me $30,000 per month after expenses?”
If not, have a plan to get there. Again, I am using $30,000 as my goal, not yours. I hope you are GOING BIG on this, but up to you.
Ask yourself – “What are my SKILLS?”
Write every skill you can think of out on a huge piece of drawing paper. I buy these drawing pads a the school supply store that we’re always visiting for my daughter. They’re 14 inches by maybe 9 inches. Perfect for a lot of information. Look, here’s a page I wrote up this morning about how to get to $30,000 per month.
I’m working on the “Products” page right here, right now. I figured, might as well share it with you as I do it. This is as much for me as it is for you!
Ask yourself – “Who Am I?”
No really. Who are you? Here are some of the things I put down for who I am on my huge piece of paper:
- Thailand expert
- Hawaii expert
- exercise fiend
- motivational nut
- big picture seer
- photographer, videographer
- protector of my family
I have forty to fifty things written down for this. Take the time and do it for yourself.
Once you know WHO YOU ARE and WHAT YOUR SKILLS ARE, you can start to see what might work for your digital product. Choose something you’ll be happy working on for the next five years, or rest of your life.
I’ve been watching a lot of Gary Vaynerchuck’s videos lately. He started this series since I stopped watching him a couple years ago – it’s killer, and I’m watching all the back issues. He’s always talking about going with your strengths, and forgetting about your weaknesses. Stop working on your weaknesses, just go full-on with your strengths and hand it off when you don’t know how to do the next part of your product development as an expert.
The digital products you create must be expert – in this day and age. There is no room for schlock. There is no room for half-assed. Do the best you can, and hand it off to someone that can do the next step, or create the final product. I wrote books that I thought were excellent. I published them, they didn’t do much. I wondered – WTF? I gave them to my sister, an English Lit graduate at Penn State. She tore those books limb from limb and put them together again. Then they sold like MAD.
I’m good at writing, maybe even great. I am NOT good at grammar! Know your strengths and weaknesses and hand the project off as you get out of your talent zone.