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Writer's pictureEthel Krivyan

5 Mistakes You're Making With Passive Income


5 Mistakes You're Making With Passive Income

So you've decided to join the income trend. You're envisioning yourself lounging on a beach enjoying piña coladas as your bank account grows effortlessly. Hold on a second! Creating an income stream is not as simple as it may appear. Here are 5 mistakes you’re making with passive income and some advice from our knowledgeable team to help you avoid them.


1. Overlooking the Investment Aspect

Ah, the allure of income; earning money while you sleep. However, did you overlook something? Perhaps the crucial step of investing time and money to kickstart it? Indeed, contrary to fairy tales, you can't just sprinkle some dust and expect cash to flow in.


Imagine this scenario; You've used up your budget on developing an online course for mental health support. It's refined, brimming with value and good to go. Oh no, marketing slipped your mind. Now you're left with a masterpiece akin to a gourmet meal. No guests at your table. It's a blunder we've witnessed at times – clients going in on creation but neglecting promotion efforts. The outcome? Silence. Make sure you set aside some funds for marketing or you might end up dining solo.


2. Your Pricing is Either Too High or Too Low

Determining the price point is similar to Goldilocks searching for the porridge. If it's too high folks won't be able to afford it; if it's too low they might question its quality. It's not just guesswork; there's a bit of science involved here. Market research acts as your weapon in this scenario.


Picture selling a course titled "Mastering The Art of Yoga" for $999.99. Seems pricey doesn't it? Offer it at $9.99, people might doubt your qualifications. Without market research you're essentially throwing darts in the dark. Dive into what your target audience's willing to spend and hit that spot where they exclaim, "I’m sold!”


3. You Skipped Market Research

Neglecting market research is like embarking on a journey, without a roadmap – you might reach eventually. Chances are slim that it’s where you intended. Market research is essential for understanding your audience, spotting opportunities validating your ideas and keeping an eye on your competitors (all within boundaries).


We’ve witnessed many individuals launch their dream products only to realize that their target market is as interested as a cat in a dog show. By doing research you can customize your product to meet the needs of your audience and distinguish yourself in the market. This way you'll steer clear of the disappointment of launching to silence.


4. Absence of a Marketing Funnel

You've built it. They're not showing up. Why? It's because you lack a marketing funnel. Haphazardly tossing banana peels against the wall hoping for one to stick isn't a strategy—its chaos. A marketing funnel leads customers from awareness to purchase; without it you're just squandering time and money.


Imagine investing in ads driving traffic to your website and then... Nothing happens. No email collection, no follow up— silence. Emails remain the method for sales conversion. If you're not collecting emails you're missing out on revenue. Establishing a marketing funnel ensures that you can nurture leads and transform them into customers. Otherwise you're just hoping that someone stumbles upon your website and decides to make a purchase on a whim.


5. Your Free Offering Isn't Up to Par

Who doesn't love getting something for free right? If your free offering is subpar it won't do you any favors. Your freebie should highlight your value proposition. Leave people eager for more. If it's poorly designed, lacks value or fails to resonate with your audience you're hurting your chances.


Think of your freebie as the impression. If it falls short people won't stick around. If your freebie promises more than it delivers you've just missed out on a customer. Ensure that your free offering is captivating enough to persuade people to share their email address and valuable enough to keep them engaged for the haul. Otherwise you're simply giving away items.


Other Mistakes You May Be Making With Passive Income 


  1. Overemphasizing the “passive” part: Building a passive income stream requires upfront effort, strategic thinking, and ongoing attention.

  2. You are not consistent with your marketing: Marketing isn't a one-and-done deal. It’s like brushing your teeth – you can’t just do it once and expect fresh breath forever. 

  3. Focusing on just one income stream: Diversifying your income streams is like having multiple eggs in multiple baskets – if one basket takes a tumble, you’ve still got eggs to work with.

  4. Your product doesn’t resonate with your target audience: Understanding your audience’s needs, pain points, and desires is crucial to creating something they actually want to buy.

  5. Overlooking maintenance: All income streams require some level of maintenance to keep them running smoothly. 


Let Mind Wellness Marketing Do The Heavy Lifting 

Establishing a passive income stream requires dedication, investment and some strategic planning. By steering off these errors you can transform your passive income aspirations into reality. So time you're tempted to rush through the groundwork remember; even Rome wasn't built in a day and it definitely didn't promote itself. If you find yourself riding the struggle bus through creating passive income, it’s time to let Mind Wellness Marketing do the heavy lifting. Let us turn your someday ideas into sellable features TODAY with our passive income marketing. The time is now, to schedule a free consultation with Ethel today, visit here!

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