Fabienne Fredrickson

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Mistakes To Avoid When Creating Passive Income

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When your practice fills and there is no more room for new clients, you may decide to raise your rates, create a waiting list or even create a passive income stream. All three are great options but for today’s video strategy, I want to address two of the most common mistakes entrepreneurs make when creating passive income. These tips will save you a lot of time and frustration and will ultimately make you more money in your business. Ready?

Passive income allows you to provide what you do right now in your practice without you actually having to be there to deliver it—yet your clients still get the same results. It involves creating something once that you can sell many times over. I’ve been creating passive income in my own biz for a very long time. But I see many people who are self-employed make a lot of mistakes when creating passive income so I want to share two of those mistakes with you today so that you don’t make them in your own business.

Mistake #1: Creating a passive income program or service before their private practice is full. I’m not saying you can’t do that but from what I’ve experienced, if your practice is not yet filled to capacity, you may not be making a lot of money. Creating a passive income product can sometimes take a long time. My own The Leveraged Business Home Study System, from beginning to end, took me three years to create. Yes, it’s very complete, it’s very full, and it’s one of our best selling products. But it took me a long time to create it. For some people in the process of creating something new, they take their eye off the ball of marketing their private practice—which means that they spend all their time on the product and they neglect getting more clients. But here’s something very important to consider. In the beginning of your business, the fastest path to cash is through private clients. I’ve experienced this myself and my private clients have experienced the same thing. The idea is that you want to fill your practice first, and never take your eye off the ball of marketing it before you create a product.

Mistake #2 is creating a product too early before they have a list. If you have only 12 or 120 people on your ezine list, imagine that only .01 percent of your list will actually buy your product. That doesn’t leave a lot of buyers! So, until you have a larger list you may not sell a lot of products. You’ve got to pay attention to this.

Your Video Assignment

I want you to focus on filling your practice first, while at the same time building your list. While you’re doing this, you can start thinking about what to create. Then, once your practice is full and you have good income coming in and your list is substantial (because remember, only a percentage will buy…)that’s going to be the best time for you to create a product or program to use as a passive income stream. Congratulate yourself, you’re making huge strides in your business!

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