Hey Bo here.
I wanna talk about the downsides of passive income and automated sales.
You hear people talk about the upsides, but they don't talk about the downsides.
And even me, I've talked about this a lot, like the benefits of automating your
business and having these systems set up that sell your product for you 24 7.
And I think that's something you can work towards.
However, I think a lot of people don't understand the downsides of this,
and they don't see that it actually.
Creates more work for them than they realize.
They think that this automated business is gonna be less work
because it's automated, but it can actually create more work for you.
And let me tell you why.
So first of all, let's say you have an online course that you're selling and you
want to automate the sales, so you put it inside of an automated sales funnel.
Well.
There's a couple things they don't tell you.
First of all, if you put your course in an automated sales funnel, it's
never going to sell as well as it would sell during like a live launch.
There's always gonna be a decrease in conversion rate when you're automating
something, so if your course isn't already selling amazingly well in a live launch.
Then automating it is probably not the best idea.
You wanna make sure that that course is completely dialed in.
That that the sales page is amazing, that the marketing around it is
amazing, that the product itself is amazing, that it's getting
amazing results for your customers.
Like that thing needs to be dialed in before you automate it, because if
you try to automate something that's not working, you're just gonna create.
More work for yourself and it's not going to be worth the effort.
So people don't tell you that.
People also don't tell you, like when you have an automated sales
funnel, like you still have to drive traffic into that funnel.
And that's a full-time job.
Like you have to be constantly driving traffic into that sales funnel if you want
to keep making sales from it, you know?
And so I think.
People like people hate on the live launch model.
You know, people talk about how they hate launches, how
they're so stressful or whatever.
First of all, there's a way to make launches much less stressful, but
I wanna talk about why you might want to lean more towards a live
launch sort of business model.
Where you have like a signature course or a coaching program and you just launch
it a few times a year, like two to four times a year, and why that might actually
be a much better model for you than the automated sort of business because I.
Like, like one thing, first of all, you have to get used to though, if you're
gonna do a live launch model, is you have to be okay with the fact that your
income is not going to be as stable and as predictable as it would be with
a more automated type of business.
You, you will probably make more money though with a live launch model.
You'll make more money overall, but it won't be as consistent.
And it might be, it looks, it might look like a lot of peaks in valleys, you know?
So if you're doing a live launch model, let's say you launch
your product four times a year.
Let's say you launch in March.
Well, your income might look like January and February.
You make $5,000.
And then March, you make $50,000.
You know, so January and February you might look at it and be
like, oh, this is kind of scary, like I'm not making much money.
And you might think your business isn't working, but then
you make up for it in March.
You know?
So even though you only made 5,000 in January and February, overall,
if you average it out, you made an average of $20,000 a month.
So you'll make more money most likely doing this, but you just
have to be okay with the fact that it won't be as consistent.
If you put that same course inside of an automated sales funnel and you did
that, you might only make half of that.
You, you might only make say, $10,000 a month.
It's $10,000 a month every month.
So it's more stable, it's more predictable, but you only
make half the amount overall.
So you have to kind of weigh the pros and cons and, and ask yourself like, do
you want to make more money or would you rather have just more like stability?
Also, you have to ask yourself like, how do you like to work?
Because I used to think that I wanted that automated passive income
and like granted, it's great, but.
I realize now that it actually, it actually doesn't really fit with
the way that I prefer to work.
So I'm the type of person who kind of works in like short bursts.
So like I like to go very hard for a couple weeks or a couple months
on a project, dive really deep into something, and then I like
to completely step back and like.
Totally detach.
I, I like to go on vacation and like, not even think about work
for a while, and then I come back and then I go deep again, you know?
So I'm like on and off, on and off.
That's sort of how I work.
But some people, they prefer like the more consistent schedule, you know,
like they're just okay with like that steady rhythm, you know, every
day, every week they're doing the same things and they just like that
predictability and consistency in their work schedule and also in their income.
So you have to ask yourself like what type of person you, you are
like, are you the type of person who just craves that stability and
predictability, or are you the person that likes to go deep and then detach?
So I'm starting to realize that I, like, I used to think that I don't,
I didn't like the live launch model.
However, I'm starting to see that maybe it does fit more with my personality.
Because for example, like if, if you do the live launch model, it actually can
give you more freedom and it can help you.
Like really recharge and, you know, recharge your batteries so that you
can come back better every time.
You know, like if you're just always working like consistently every week
and you can never really like take a month off, then you can, you can burn
out doing that if you're not careful.
And so I'm starting to realize, like I would actually prefer a, a business where
it's like I can work hard for two months and then I can take a month off and then
come back, work, work hard for two months.
And then take a month off.
You know, I would really prefer that.
I think, and I'm starting to question whether or not the automated type
of business is even best for me.
Now granted, I think you should have both.
I mean, you should have at least one product that you sell that's in an
automated funnel, but, but that should be like a low ticket product, most likely.
So it's hands off, so you don't have to do a lot of maintenance.
It's not like your signature program, it's just more of a low ticket
product that people can buy anytime.
So that's hands off, that's automated, that's passive.
So you can bring in some revenue in between your launches, but then
your main program, the main thing, you sell your signature course or
your signature coaching program that you sell through live launches.
And I think that is a better model for a lot of people.
I think the, the whole like predictable, steady, regular
sales thing is kind of overrated.
Actually.
It's overrated because what people don't talk about is like if you have
that sort of model where your product is always available for sale or.
You, it's in an automated sales funnel even.
You still have to constantly be driving traffic into the funnel or you have to
be constantly trying to sell the product and trying to sell your coaching, getting
on sales calls or talking to people or sending emails and trying to close people.
It's like you're always having to work.
But if you do the live launch model, you can just focus that effort into
a shorter period of time and just focus that work into like a, say
a 30 day period four times a year.
So you're only really.
Selling like four months out of the year and then eight months out of
the year you're just creating content or taking some time off and just
kind of going, taking it more easy.
You know, you don't have to think about selling and I think I prefer
that, you know, I'm starting to think that I really prefer that.
Like because, 'cause I don't like to be always having to think
about sales and always thinking about promotions and these.
Products and how I'm gonna sell 'em and, and how I'm gonna
launch 'em and all this stuff.
Like, I would rather just have a more focused effort a few times a year and
I can go into that knowing like, okay, this is the month I gotta focus on
selling this thing, and then I can.
You know, after that I can just step back and then I can be more of my creative
self and just focus on creating content and, you know, brainstorming the, the
next thing I'm gonna do, you know, so I, I kind of prefer that, I think.
So ask yourself what type of person are you and which
model would be better for you?
Um, so I think we have to be careful about.
You know, just looking at the upsides of things, it's easy to
just see the, the shiny object and see how great this thing is.
Like, uh, another example is, uh, membership sites.
Like people talk about, oh, create a membership site or a
subscription or something, because then you got that stable monthly
income coming in every month.
But then they don't tell you like, if you have a membership site, then
you gotta constantly be in that membership site, keeping people happy.
You gotta be constantly creating content.
You gotta be constantly marketing the site to get new people in and.
It creates a lot of work for yourself.
And people don't talk about the downsides.
They only talk about, oh, the recurring income, the passive
income, blah, blah, blah.
It's like you have to be careful 'cause there's pros and cons
to every everything, you know?
So you just have to ask yourself, which one would you prefer?
Really?
Like, which, what are you willing to deal with and what are you not?
Um, so yeah, just, uh, something that was on my mind today.
Hope this, uh, helps you in some way and let me know if you
have any questions about it.
I'll talk to you soon.
Peace.