Aaron Hoos

In my recent blog post, I wrote that there are only 3 ways to grow your business.

The first way an entrepreneur can grow their business is through replicating their sales funnel. In today’s blog post, I want to talk about the second way that an entrepreneur can grow their business: By creating passive income.

“Passive income” is a phrase entrepreneurs use to describe something created once and then sold over and over (unlike a service or a manufactured-each-time product). An ebook is an example of a really popular form of passive income: You write it once and then resell it over and over again.

WHAT PASSIVE INCOME OPPORTUNITIES ARE AVAILABLE?

There are plenty of passive income opportunities available but they can generally be divided into two models:

• Access-to-information: This is where you create a piece of content and then sell access to it. For example, you might sell downloadable ebooks, reports, or templates; access to listen to audio files or view video files; access to knowledge centers; whatever. Your customer pays you in order to get access to information in whatever form that is convenient for you to create and for them to access it. You’ve seen these sites: There’s usually a “Buy Now” button for someone to purchase an ebook.




• Advertisements with content: This is where you create content and post ads on the content. As people click to your site and view the content, they also click on the ads and the ad revenue earns you money. In this model, you write and post the content and people view it for free and revenue is generated through ads. You’ve seen these sites, too. They’re the ones with Google ads or banners scattered throughout the content.

Of course, I’ve only described a really simplified example of each. You can mix and match and add layers to make it more effective. For example, one common way of selling digital content is with a two-step approach: Ask for your leads to become prospects by signing up for a free ezine. Then, build a relationship with these prospects and offer them your ebook.

You might want to also check out a related blog post entitled 5 levels of content monetization for a different way to look at passive (and active) content sales.

WHICH PASSIVE INCOME OPPORTUNITY IS RIGHT FOR YOU?

That depends on you and your subject matter. Here’s what I often recommend to my clients:

Posting free content with advertising is just fine but you only get paid when you send people OFF of your website to an advertiser’s site. And chances are, those advertisements are for a product or service that could be considered “competition” if you are also selling similar products or services to the same target market.

So, if you have a sales funnel that includes other products or services, don’t erode your sales in exchange for advertising dollars. Selling access to digital content is just probably better. However, if you don’t have any products or services but want to earn some income, creating content and posting ads can be a way to earn income from an industry.

Having said that, there are lots of sites out there with ads on their sites and they do just fine building traffic and earning advertising revenue. But most of my clients are real estate and financial clients and they want to build a long-term relationship with a customer, so the goal is (usually) to keep website visitors rather than send them to advertisers’ sites. The advertising model sends customers away while the access-to-information model keeps customers on your site and builds your brand’s value.

HOW DO I GET STARTED WITH PASSIVE CONTENT?

Start by figuring out if there are any services or products that you can turn passive. Pay particular attention to existing products or services that you tend to repeat. That’s a good start. This blogpost entitled Are your products and sales funnel taking up too much of your time? will help you to identify opportunities that can become passive.

• If you are creating content for the access-to-information model, check out my blog post How to sell an ebook on the web. (Note: I mention an ebook in the title but you can use this information for just about any information that you sell, no matter what the format).
• If you are creating content for the advertising model (free content on a site, plus ads) check out my blog post How to start a new business for $10: A step-by-step guide.

PASSIVE CONTENT TIPS

Be sure to create compelling, unique content that addresses a problem or issue in the industry you’re working in (I call this The Pickaxe Factor). By doing that, you’ll be more likely to attract potential readers. If they’re reading your content on your pay-for-access-to-information site, they’ll be more likely to pay to read. Or, if they’re reading your content on your freely-available advertisement-model site, they’ll be more likely to click the advertising.

If you’re creating passive content that you’ll sell through the access-to-information model, pricing your content effectively will prove to be a challenge (because it’s a challenge for a lot of entrepreneurs). Check out How much should I charge? A magic formula to easily find the best price for your product for some pricing ideas.

And remember: This might be called “passive income” but it doesn’t mean you should stop marketing. Passive income requires very active marketing, especially in the beginning. Have a plan to market like crazy so you can build traffic to your content (no matter which model you choose).

You’ve finished writing your ebook. You sit back in your office chair and breathe a sigh of relief. It’s a long document, brimming with a mix of wit, personality, and (of course) your expertise on the topic. You’re certain that it will offer your readers the insight they’re looking for. But something’s not quite right.

After you look at it again, you start to wonder: Is it just a giant “wall” of text? Does the ebook really pop the way you’d like it to pop?

A common, initial temptation is to google “royalty free images” to shoehorn throughout the content to break the up the text (and add to your page count!!!). But is that really the right thing to do? It’s tempting. It’s easy. But it doesn’t add value.

Instead, here are 9 ways that you can add value to your next ebook. These ebook elements will help to break up that wall of text, they’ll add some visual interest, and they’ll help your ebook to really pop in the mind of your reader.

Ebook value-add #1: Callout boxes

These are boxes that you see in magazines all the time. They’re filled with additional information, facts, tips, and hints. They’re often pretty “listy” (bullet lists or numbered lists) although I’ve written plenty that were formatted as paragraphs. Use these to add extra context or background, or to add some additional tips that your readers might want to learn or be reminded of. Don’t add more than one per page and try not to add one on every single page. Check out some of your favorite magazines for ideas. In some of your callout boxes, you can reiterate ideas that were spread across several pages, or you can show how the current point fits into a larger list. This is also a good place for an anecdote, quick tip, or to highlight a special link that is related to the topic.

Ebook value-add #2: Examples

Although you’ve probably used examples in specific situations throughout the body of your text, (for example, in this sentence) it doesn’t hurt to pull together several concepts into a longer example that is formatted in a different way. I tend to use examples to illustrate several concepts with a fictional story. But on a related note, I also use…

Ebook value-add #3: Case studies

Case studies are (usually) true life examples (perhaps “anonymized” to protect the subject of the case study). These can be used in a similar way as an example. However, since case studies are usually true life, I tend to use them less as illustrations of a point and more as inspiration or proof of the content. So I tend to use both in my ebooks. Strike a balance so you don’t overwhelm your readers, but remember that everyone learns differently, and some people respond better to examples while others prefer case studies. (Personally, I’m a case study person).

Ebook value-add #4: Appendix

One appendix (or several appendices) at the end can be a great place to put all that background information that you want to write but that you doubt your readers will always want to read in the body of the text. It’s the stuff that is important to know but, once you write this, you think that most of your readers will probably already know quite a bit of it. Chances are, you’ll write it into the body of your text and pull it out. (In many cases, I’ll write the first 5 chapters of an ebook, then pull out the first 2-4 chapters and put them in an appendix because my good sense and experience tells me that those first chapters were just warm-up and the real reason people bought the ebook started in chapter 3, 4, or 5.) There are other things you can add into an appendix: Industry information, lists of tips and ideas, a long reference list, step-by-step instructions, interviews with people, etc.

Ebook value-add #5: Templates

I love adding templates to an ebook. I like templates because, if you are a business trying to build a brand, templates are a great way to get people printing and using stuff that has your brand imprinted right on it. On the other hand, templates that have been shoehorned into ebooks can look funny if the header, footer, and page number of the ebook appear in the template. Often, I’ll create a file that has the ebook plus individual PDF documents that are each a separate template. The sky’s the limit with templates.

Ebook value-add #6: Resource lists

I like to add these usually at the end of a chapter. These can link to other content in the ebook, other content online (including specific blog posts you’ve written, which is something I advise my clients to do), Squidoo lenses, Amazon books, and other digital products (via affiliate links). The goal here isn’t to replace your wall of text with a wall of links. I wouldn’t have more than half a page of links at the most, preferably less. Think of it like this: Many of your readers might skip over this resource list, but some of your readers will want more information, now or in the future. They’ll look to your chapter and they’ll dig into some of your links for more information or another perspective.

Ebook value-add #7: “You will learn” overview

We all learn in different ways. I learn best when someone gives me an overview of what I’m about to learn and then gets into the lesson. If I don’t get an overview first, I struggle with trying to fit each individual piece of information into the big picture. So devote the first part of each chapter to an overview (a bulleted list or a couple of “big picture” paragraphs) outlining what the chapter is about.

Ebook value-add #8: Glossary

You’re an expert but not all of your readers are. They need a little extra hand-holding, and that probably includes definitions and explanations of key concepts. A glossary can be arduous to write (trust me! I’ve written a ton of them) but your readers will find it helpful.

Ebook value-add #9: Now it’s your turn

I find that my ebooks tend to become a little academic after a while. They might start off with lots of practical advice but I’m just wired to talk about concepts over practice… and most people who are sharing their expertise will probably trend that way, too. So, by adding a “Now it’s your turn” element periodically throughout the ebook, you’ll force yourself to step back from the concepts and consider what your readers will want to do in this situation. Then give practical, step-by-step instructions.

A WARNING TO LAZY PEOPLE

Most ebook writers will read this post and hopefully find some ideas to inspire them to add value to their ebooks. But some writers — the lazy ones! — will see this as a way to add bulk to ebooks for a padded page count. That is not my goal here. You could use these ideas to add bulk to your ebooks, but that won’t generate customer loyalty or long-term profit. It won’t wow your buyers with extra value. It only wastes your time (time you could spend adding value) and pisses readers off.

But to the rest of us — those who actually want to build a loyal and happy readership — these are useful ways to make your ebooks more valuable to readers. So, on your next ebook, why not add a couple of these elements!

In one of my very first jobs, I worked at a gas station. Once I made a mistake at something, and although I can’t remember the mistake itself, I remember my boss asking me: “If you didn’t know how to do it, why didn’t you ask?”

It was the most ridiculous question I’d ever heard because I didn’t know that I didn’t know or else I would have asked! I was doing what I thought I was supposed to be doing, I just did it incorrectly. There was no way for me to know that I was doing it incorrectly and, therefore, there was no reason to ask. As soon as the error occurred, I asked. But my boss couldn’t wrap his brain around that.

Our customers face a similar conundrum: They know they have a problem or need and, in order to search out a solution, they look for what they think is the best solution. But it’s not always the best solution. And that’s why Henry Ford famously said, “If I asked my customers what they wanted, they’d have said ‘a faster horse’.”

I see this in my own business: When I write for a client, I frequently hear something like, “we need to have more content in more social media.” But that’s not true. Businesses don’t need to access ALL social media to be successful. They need to say the right things to the right people in the right social media.

All businesses see some type of customer response like this. The customer does their best to figure out what solution is needed based on their perceptions of the problem. But maybe their perceptions of the problem are completely wrong! Or maybe the solution they believe they need is completely inadequate.

Dutch consultant Robbert-Jan Van Oeveren wrote a great blog post about uncovering what our customers are really after (even if they don’t know it themselves). He talks about how today’s businesses have the opportunity to put the customer at the heart of their organizations, and he offers some ideas (and a very useful graphic) to describe what businesses must do to understand what customers want.

Use Van Oeveren’s blog post as a starting point to rethink what your customers want. In fact, move beyond just thinking about customers and consider everyone in your sales funnel: Are you communicating to people at each stage of your sales funnel in a way that connects with what they are REALLY looking for?

Read Van Oeveren’s blog post here: Designthinking: How to convert need into demand.

A friend of mine wants to start a business. She’s successful at work but isn’t earning what she is worth. Like a lot of people I’ve met, she really wants to start a business but here’s the conundrum:

It’s hard start a business when you’re busy with a “regular” job. On the other hand, it’s hard to quit your job then start a business.

Here’s what I recommend:

START HERE

1. Choose what you want your business to be about. Even if you don’t yet know WHAT you want to sell, you probably have some idea about the topic. Are you a mechanic and want to (eventually) run a business that is mechanical in nature? Do you love jewelery and (eventually) want to do something in that field? It doesn’t matter yet what you sell, but choose your topic. It can be fairly broad.
2. Start a blog. Spend 20-30 minutes a day writing a blog post. Do it every single day. Build up a body of knowledge on the topic. (Okay, if “every day” is too much, then start off a little less — say 3 times a week — and slowly increase over time until you’ve developed a good habit of daily blogging). Aim for high quality, insightful posts that help to advance your reader’s knowledge of the topic.

That’s it. That’s all you have to do in the beginning. If you’re at this stage — a sort of “dreaming the entrepreneurial dream” stage — then this is all you need to do. Don’t worry about search engine optimization, blog design, social media, etc. (That’s good stuff, but it’s not the point right now).

Eventually, you can take it further and turn your blog into a business (as I’ll describe in a minute), but your top priority should be consistent, compelling blog posts every day.

What you want to do is build a body of knowledge, which will:

• Position you as an expert.
• Help you explore the depths of the subject
• Teach you things you didn’t know
• Build an audience (and they’ll be more likely to listen and respect you because you don’t have an agenda of selling them anything)
• Create an asset of information that you can later draw from

FAST FORWARD TO QUITTING TIME
Let’s say you stay with your company for another couple of years. You don’t love it, but the income is nice and the health care pays for your knee operation, but now you find yourself transferred to a department with a boss you don’t like. You can see yourself quitting in a month or so.

The good news is, you have been consistently positioning yourself as an expert for the past couple of years. You have 600+ blog posts and an audience of faithful readers.

Here’s what to do next:

1. Decide what you are going to sell. A product? A service? There are lots of options. Pick one or two that you can do now and shelve the rest for later.
2. Create your sales funnel. Describe the contacts at each stage of your sales funnel and how you’ll engage them at that stage and then move them forward. (Download this Sales Funnel Quick Reference Guide to get you started).
3. Implement the contact-engaging marketing that you’ve just outlined in the above step to engage and market to your Audience, your Leads, and your Prospects.
4. Quit your job. Woohoo!
5. Implement the contact-engaging content that you outlined a couple of steps above.

Thanks to your consistent effort, you have positioned yourself as an expert long before you made the leap out of your job into the world of business ownership.

ADDITIONAL TIPS TO MAKE THIS WORK

• Pick a topic you love and know something about and can spend years doing. Otherwise, it’s not worth it.
• This only works if you are consistent. I’ve seen people do this and succeed. I’ve seen people not do this and struggle. It really does work. Set an alarm, brainstorm some topics, and be relentless. Consider it an investment into your escape hatch. (Check out this blog post about blogging frequency and check out this blog post to discover what you should never, ever do).
• I mentioned earlier that you shouldn’t worry about search engine optimization (SEO) at this point. There are probably some SEO aficionados that are rolling in their graves right now but my reason is this: I want it to be a fun and simple effort. And search engine benefits will still be present in your blog, it just won’t be an intentional thing that you’ll do right away. You can always integrate that in later.
• Don’t fret about what you’ll sell while you’re working. That will work itself out, trust me. Here is a blog post about 5 different types of content monetization to get you started. There are other things to sell, too, but content monetization is an easy first step. If you can’t figure out what to sell, send me an email and we’ll talk about it.

Like anything that is effective, this method takes some effort. There will be days when you want to quit. But this is, in my opinion, the most effective way to start a business when you want to start a business someday but aren’t ready to quit your job just yet.

When I was a kid, I wanted to be a detective. Detectives are cool because they start with a hunch and then put together the facts. The more facts they can put together, the more “airtight” their case becomes. The airtight their case becomes, the more successful they are when bringing the villain to justice.

If you want a successful sales funnel for your business — one that churns out one Customer after another — you need to be a detective.

Here’s why:

People have problems and needs and they are willing to spend money to solve their problems and fulfill their needs. But they’re also skeptical about whether a proposed solution will do what it says, and, they are reluctant to part with their hard-earned money.

People want to solve their problems and fulfill their needs but that skepticism and reluctance keep them from trusting and eagerly buying from you. As you use marketing and sales techniques to move your contact through your sales funnel, you will start to break down the barriers that the contact has put up. But you need to do a thorough job — you need to build a case in your favor and you need the eyes of a detective to look thoroughly at the situation and plug any holes in the case.

So business owners need to be detectives to build an airtight case that…

• ensures the product or service being sold is going to solve the problems or meet the needs of the contact
• addresses a contact’s skepticism and helps them to overcome it
• addresses a contact’s reluctance and helps them to over come it.

Build an airtight case about these three thing and your contacts will become Customers every single time. (Conversely, the fastest way to lose a sale is to not have an airtight case).

BUILD AN AIRTIGHT CASE FOR A CUSTOMER-GENERATING SALES FUNNEL
The first step is to create a 3-columned chart:

• In the first column, list as many problems, needs, or reasons that a contact has for buying your product.
• In the second column, list as many reasons that a contact has for not trusting you (i.e. they don’t know you; they haven’t heard good things about you; they don’t know of anyone else who has used your product, etc.)
• In the third column, list as many reasons that a contact has for not handing over their money (i.e. they don’t see the value; they aren’t sure if your product will work; they wonder what recourse they have to get their money back, etc.)

Make the lists long. Spend a few days on this and don’t worry if your lists get ridiculously long. The longer the better!

Once you have these super-mega-long lists, the second step is to think about where your contact is thinking about these things the most. For example, someone who knows they have a problem to be solved, but doesn’t know you yet, aren’t thinking about your guarantee. So make sure your guarantee comes after building a relationship. (That one was easy but some of them are harder to discern what comes first).

The third step is to address each one. If your contact doesn’t know anyone else who uses your product or service, get some testimonials. If your contact is a little worried about whether you provide value, give them case studies and lots of ROI measurements. If your contact is wondering whether the purchase is safe, make sure you highlight your guarantee.

The fourth step is to weave every single point on your three lists into your sales funnel’s marketing and sales content. So all that stuff mentioned above about the guarantee, testimonials, case studies, ROI, etc. should be created and integrated into your sales funnel.

The fifth step to watch your contacts closely to see how they move through your sales funnel. Are people hitting an invisible wall and no longer moving forward? Maybe there’s a problem with one of the messages you are using. Maybe it should go earlier or later in the sales funnel. Or maybe there’s a critical point you missed when you were creating your lists back in step one. Go back and rework those lists to build them out further.

A detective builds an airtight case by exploring every possibility and addressing it, and by finding gaps and researching diligently to plug those gaps. As a business owner, you can put on your detective’s hat to create a sales funnel that compels contacts to become Customers.