On this episode, James and Megan are continuing the theme of multiple income streams. In this show they talk about a passive income stream that can enhance your active income streams: Small Products.
Our Kryptonite today: Developing Small Products
Why offer small products?:
- Small products allow you to reach and help more people without taking up more of your time.
- They help you move away from exchanging time for money. It’s a passive income stream. You do the work once and it generates revenue for you multiple times.
- Small products can also be a gateway to larger projects or client work. By having lower priced, introductory items, your target market can get a taste of what you do and the value you provide without breaking the bank or making a huge investment. These products help develop trust and a solid reputation, leading to more work.
What kind of small products should you consider?:
- These are not high dollar, complex products. They should be near the top of your income funnel, high volume, low price.
- Examples include e-books, audio products, home study products, and other informational products. Basically, anything you can package and sell, whether as an online downloadable product or a physical product.
- Make sure they align with your overall business. If you offer IT consulting services, it probably doesn’t fit to offer a cookbook (unless it’s for cooking Raman with Mt. Dew on energy from your computer fan).
- Your small products should point directly toward the additional products and services you provide. Give them a taste of what you do and why they should want to do more with you.
- At the same time, make sure you provide a high quality product. Make sure there is real value in what you’re selling. If it’s junk or fluff, they will think everything else you do is junk or fluff.
- So make it awesome! An audio download should sound professional and have great content. An e-book or printed book should look awesome and have great content. Do what you do with excellence. Make the investment required to do a good job.
How do you create small products?:
- Start by looking at the content you’ve already created. Is there a way to repackage and repurpose it into a product you could sell?
- What are the most frequent questions or requests you get from existing clients? Can you address those things in a product that helps them decide to purchase a bigger offering from you, while still adding great value on its own?
- Once you know the product to be built, build it! Use content you already have. Build it yourself if you have the skills (and time) or hire an experienced virtual assistant or product creator to put it together for you.
- Physical products can be drop-shipped so you don’t even have to touch them. Digital products are instant downloadables with very little cost after production.
- You’ll still need to promote and launch these small products appropriately, but by having an entry-level product that serves as passive-income, you can expand the middle and high end products and service offerings you have.
- Evaluate your target market and their needs. Define a high value product you can create that would serve them well.
- Look at what you already do and have around you. What can be repackaged or repurposed to produce a small product quickly?
- Get it done! Do the work or hire it out, but start producing these small products to generate a passive income stream and grow your existing business.