Let's consider your reason for starting an online coaching business. More money, more time, and less work. However, all too often we get stuck trading dollars for hours and the business that was meant to be our dream career has become a nightmare job. As service-based online entrepreneurs who want to make an impact through the work that you do long term, this doesn't have to be the case. If you know how to create a passive income, you'll be able to have that consistent recurring revenue coming in even when you decide to take a few days off.
When we talk about working less and earning more you need to look at how your time and earnings are being divided between the three types of income.
If you want to learn how to create cash flow, you need to know the types of income.
For this we teach what I call the Thrive Business Model. It’s like a tripod. Each leg is a source of income for your business.
Your High End One on One Coaching
Your dollars for hours type of income. You’re trading your time for money. This is an important part of your business and you don't need to completely remove it.
However if you want to work less you will need to scale down on this side of your business. You need to come down on hours so you can effectively launch the other income sources in your business.
One to Many Model/Group Coaching
You’re teaching or coaching multiple people at one. This is your leverage offer. You do the same process you would for your one on one coaching but have more than one person go through it at a time.
Some examples are a live workshop, or a group coaching program.
There are some benefits group coaching has over one on one coaching. First of all, you create an incredible community of people with the same goals. Everyone gets exponentially better results in group programs because they have the support of not only yourself but everyone else in the program.
This type of income requires an initial investment to set up but you can continue to sell it over and over again.
Things like affiliate promotions. You promote someone else's program, you get a commission for the referral, but don't need to actually deliver on the program.
Writing a book is passive income. You don't have to write the book every time someone buys it.
Courses are more or less a form of passive income. You record everything one time and you can continue to sell it multiple times.
Consistent recurring revenue is money that your business makes every single month consistently and predictably. The best way to create recurring revenue is to do it in a scalable way.
Another thing to keep in mind is making sure you’re not having to make the same sales over and over again because, and get this, it’s six to seven times more expensive to get a new client than to keep an existing client.
So with the Thrive Business Model you can service unlimited clients at different levels. And it allows you to naturally upsell. So you are extending your customer lifetime value, which is how much one customer is able and willing to pay you.
Here are 4 things you need to consider when creating recurring revenue stream:
Would you rather make $1,000 a month predictably or start at square one every month?
That is basically why consistent recurring revenue is so crucial for scaling business. It is what allows you to make money month after month after month and not have to start at $0 every month.
If you sell websites, for example, and every month you start with zero and you need to go and get clients. Then you end up in this rollercoaster, rat-race, or hamster wheel, whatever you’d like to call it. None of us want to be there and it inevitably leads to burnout.
So, if this is you and you’re ready to get off the hamster wheel nightmare and create your own leverage offer, then go ahead and download the Ultimate Group Coaching Launch Checklist and get started.