Friday, June 7, 2013

The Ways for a Health Coach to Make Money

There are primarily two types of income that a business generates: active income and passive income.
Active income vs. Passive income

Active income is the income you earn for services that you have performed. This income includes wages, tips, salaries, commissions and income from businesses in which there is material participation such as conducting a coaching session or running a class.

Passive income is the income you produce from business activities in which you do not materially participate such as the royalty fee you receive when a customer buys your book from Amazon.com.

One of the biggest mistakes that health coaches (and other healthcare professionals) make is that they tend to focus on producing active income and not passive income. By focusing on ways to generate both active income and passive income, you increase the opportunities for your business to generate a lot more money and reward you with more freedom and a better quality of life for you and your family.

Active income is what you get when someone hires you to do a job. You do the work; you get paid. Usually the amount of effort or time you put in directly relates to how much you get paid as active income. There is obviously a ceiling on how much you can make here because there are only a certain amount of hours in the day/week/month.

With active income, you get paid only once. In other words, the income is non-recurring. This may include public speaking, hosting conferences, one-on-one coaching, and consulting. You do the work in exchange for a fee. You are essentially trading your time for a one-time payment.

Passive income is just the opposite. It is what happens when customers pay you over and over again for the same work — work you only did once. In other words, it is recurring. Examples of this includes book royalties, affiliate commissions, course sales, website ads, and monthly membership fees. You are trading your time for an ongoing revenue stream.

Active Income Options
In general, most of a health coach's income is based solely on meeting with their clients and getting paid for their time with them. But, there are many other ways to generate active income, especially if you're running your own business. 

Here are some of the ways to generate active income for your health coaching business.

Conduct one-on-one health coaching sessions. This is the primary activity that most health coaches perform. However, you can expand this by conducting coaching sessions over the phone and over the Internet (i.e. Skype). This allows you to reach more people within the comfort of your own office or home!

Conduct group health coaching sessions. This is very beneficial to a family or a group of clients who can't afford to pay for individual sessions.

Conduct workshops, lectures, classes. This allows you to reach more people at one time. It also helps to build your credibility and reputation.

Conduct professional training classes. This allows you to reach other healthcare professionals. It also helps to build your credibility and reputation.

Passive Income Options
Now, that we've explored some of the alternative ways to generate active income, how about ways to generate passive income? Why is passive income so important? Think about it: What happens if you get sick? Or, what if you want to go on a vacation? Or, what if you want to retire, or you find yourself unable to work any longer.  Where is the income going to come from?

Some health coaches plan for these situations by working extra hours to acquire extra income to have available for the future, and for sick days or for going on a vacation. But, there is a better way to earn extra income instead of working more hours! It's called passive income.

Passive income is attractive because it frees you up to go on vacation or have enough of a financial cushion just in case you get sick.

And, if you desire to retire, or find yourself unable to work any longer, your income will cease to exist unless you have some form of passive income. In the past, this was accomplished by employee participation in company-sponsored pension plans.

Here are several ways to generate passive income that you can tie into your health coaching business.

Write an Ebook. Write and sell ebooks and other information products. Info-entrepreneurs make up a new class of entrepreneurs, creating and marketing information products.

Get Published. Write and publish your own book. Market it online to increase sales volumes and your royalties.

Write Online Articles. A lot of sites such as Demand Studios will actually pay you to write various articles online. Some offer up front type payments for the work, but a majority of the sites offer revenue sharing. This means that depending on how many views your article may receive, you would get a percentage of the profit. Here's where the nice part comes in though. If you do get any acclaim with the article views, then the profit you receive is generally each month- forever. As long as the article continues to get views you're getting paid!

Write for revenue sharing content sites, such as eHow, Xomba, HubPages, Suite101, Squidoo, Associated Content and Helium. Choose 2-3 sites to concentrate on and build up a large collection of articles on your chosen sites.

Develop a CD or DVD. Record your lectures and speeches. Then, create a CD or DVD to sell. This is especially great for people who don't like to write but love to talk.

Set up an Affiliate Blog. Build an affiliate blog, promote the blog, and use it to promote affiliate offers. This is by far one of the best ways to generate a source of passive income online.

Start with an affiliate site like ClickBank or Commission Junction. Find a few offers in a category that you know a bit about. Make sure they have good numbers, and do your keyword research to make sure there’s demand. After figuring out what keywords to optimize your blog for, start a new blog and write articles. SEO optimize the blog, and promote it around the web. Once the traffic numbers start going up, deploy some ads for affiliate offers. People click on the ads, and you get paid! Now repeat the process until you have ten or twenty blogs, or maybe hundreds if you want to make some serious cash online.

If you have a great product, then, recruit affiliates to sell your product. If you don't have your own product, but, you like someone else's product, then, you can obtain sales referrals fees by recruiting affiliates to purchase that product. Promote their product through your site, newsletter, email and social networking.

Perform Online Blogging. Some bloggers earn six-figure incomes from one niche blog. Once the blog is established, you will earn residual income from older posts as well as new ones.

Use Affiliate Sites. Many different companies have allowed the public to become affiliate marketers of their products for which they will gladly pay. Amazon is one such site as well as ClickBank. These sites allow you to choose from their vast array of products and services, and then allow you to advertise for them. In return, they give you a percentage of the sale profit. If done correctly and with much thought behind it, this can be a very lucrative business. The amount you may get per sale or per click will all just depend on the product or service you choose to market for the company. Some of the services on ClickBank boast up to $35 per customer that signs up!

Offer a Membership Site. Have a service you think is valuable? Think people might pay a monthly fee to have it? Then you might consider offering a monthly membership site for that service. You can always begin a small website, if you don't already have one, and then just add a shopping cart feature to it. With a little fine tuning and a stellar membership idea, eventually, customers will be clambering to become members of your service. You can even set the shopping cart up to bill people each time their membership expires automatically. This is where the real money will start to roll in, and better yet, with no work on your part.

Sell Your Photos Online. There are many sites such as Istock, that will gladly pay you if someone likes a stock photo you've taken. Once someone decides they'd like to use your photo, Istock will pay you a nominal fee each time they or anyone else uses it. If you have more than a handful of photos that are highly desirable, all you'd need to do is upload them to the site and then your work is all done. Then, you'd simply sit back and enjoy the proceeds that follow.

Multi-Level Marketing (MLM)/Network Marketing.  Find a product that you believe in and sell it to your family, friends, co-workers, etc.; and, convince them to also sell the product. The problem with this approach is that it’s very close to a pyramid scheme. In essence, you make money from signing up people who sell the product. Do your research first and make sure that it is a product line you are familiar with and passionate about selling. Otherwise you will be wasting your time and you'll end up pissing off your family and friends.

Website Ads. Add well-placed ads to your website or blog from places like Google and Media.net If a visitor to your site clicks on the ad and buys something, you get paid! But, it takes a while to build this up because you have to have a lot of people coming to your site.

Sell Advertising Online. In order to make money while you sleep, your site has to be self-sustaining and self-maintaining, which isn’t the easiest thing to do, because it requires a lot of traffic.With enough traffic the advertising revenue becomes passive income.

If you're successful, you will begin making money while you sleep and the hard work will finally pay off. Within the first few weeks you may be earning around $5 – $10 dollars a day. That may not seem like much, but, within a couple months, you may be pulling in $50 - $100 a day. Again, that may not seem like much, but a $100 a day translates into $36,500 a year! If your income continues to grow, who knows, you might reach 6 figures!

Warning: This is not easy -- this is hard work. Don't expect a minimum of effort to generate any significant passive income on a consistent basis. You won't get something for nothing.
       
Active income vs. Passive income

Active income vs. Passive income
       
Passive Income: Making Money While You Sleep
Passive Income: Making Money While You Sleep

3 comments:

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