16 Oct Passive Income Through E-commerce
Why Every Entrepreneur Needs E-Commerce
Mentoring business owners I am often surprised at how many have not set up an e-commerce business. When I ask if an entrepreneur wants more free time, more freedom and more income while they sleep, I get a resounded “yes” from these business owners.
Let’s look at e-commerce as a means to passive income because that is the way to create the freedom in your business and your life.
A Look At E-Commerce
Let me define e-commerce. The e-commerce definition I like most is – the buying and selling of products and services, and/or the transmitting of funds, over the internet. Imagine you are sitting at home or vacationing with your family and you check your email and boom there are payments in there. This is why you should be setting up an e-commerce site. If you want more time to spend with your children, your partner, your community, your church, or even with yourself, then you must be ready to sell products and services on- line.
It’s really simple… you simply design your website with the ability to take payments. You can do this with a merchant account and a shopping cart or just do this with Stripe or PayPal. It’s really simple to have money flowing in quickly through PayPal and takes a bit of effort to get a merchant account set up. No matter how you do it, make sure you start taking payments on-line right away.
If you have been asking the question, “What is e-commerce?”, I’ve laid it out and made it simple. Just have your products and/or services available so that people can make purchases directly on-line. You don’t need them contacting you or coming to your location or to send them a catalog, etc. Every day, 24 hours a day, 7 days a week, people can shop on their own, when they want to and buy from you.
E-Commerce Sets You Free
Here is a client success story to illustrate exactly why you want to sell on-line. It’s one of thousands of client stories that I have on file.
Jessica’s Case Study
Jessica hired me to help her grow her business. She has been consulting and coaching and wanted to write a book and to become a speaker. Her coaching and consulting revenue were flat. She had not been able to grow her business and after 4 years she felt like a failure in business and was getting tremendous pressure from her spouse to get a job and stop working on her business. She was speaking to people on the phone day and night and doing complimentary coaching and consulting sessions and closed only one of twenty people per month and was working a lot of hours then delivering the coaching and consulting on top of doing all the free sessions to attempt to close people. She also had the problem of people hiring her and then waiting for them to mail checks and often they never did.
Her business model was broken. Even if she coached 20 people a month at $500 per month average she would only make $10,000 a month. This was far from her goal and she didn’t have 20 clients per month. To make more than $10,000 she would have to coach/consult more hours. Trading time for money is not an effective model and in my view, not a business. A business starts with the end in mind and the only reasons to establish a business are to sell it or to leave it as a legacy to your loved ones. If you are doing all the work then the business stops when you stop.
I had her create a coaching webinar series that we then sold online for $1,000. We set up the ability to take payments on -line and auto-replay on the webinar. I had her stop marketing and talking about anything else but this one webinar. We used the Internet and Facebook Ads to fill the webinar series which included 8 webinars, audios of the webinars (extracted automatically by the webinar service), and she would show up two times each week, over the 8 weeks, for all webinar series participants. One week she would do open coaching and the other week she would provide additional content.
Within 3 weeks, she sold 22 of these webinars. That is $22,000 in sales with her working 2 hours a week over 8 weeks – a total of 16 hours of work to make $22,000. She was now making about $1,375 per hour! The following month she ran the ads and took online payments again and brought in 19 more people. Another $19,000! All of this in about 7 weeks with only 2 hours a week to show up and work.
Once she had this passive income stream rolling, she then had time to devote to writing her book and to offering to speak for organizations and agencies. Her book will be published in the next 90 days and she has secured 4 speaking gigs so far.
Can you see how this model is useful? What are the takeaways from this article and what are you going to implement?