How to create leveraged income as an online service provider

Want to know how to create leveraged income as an online service provider? If you run a service-based business online (such as a coach, consultant, designer, virtual assistant (VA), social media manager (SMM), accountant etc) then you are most likely earning money in a linear way. When you earn linear income your potential income is limited based on the hours you can work. Leverage income frees you from that limit and therefore is an appealing option for many business owners. Keep on reading to find out how to create leveraged income as an online service provider 

 

This page includes affiliate links, which means that if you choose to make a purchase, I may earn a commission. This commission comes at no additional cost to you. The content of CharelleGriffith.com is for informational and educational purposes and should not be construed as financial advice.

 

Linear income versus leveraged income

 

Linear income is where there is a direct relationship between the number of hours you work and the income you generate. You are essentially trading your time for money and if you want to earn more money you’d have to work more hours (or raise your rates). 

 

Leveraged income is where the relationship between the number of hours you work and the income you generate is broken. With leveraged income the amount you earn isn’t directly based on the amount of time you work.

 

Reasons why online service providers should consider creating leveraged income

 

If you are an online service provider or run an online service-based business the likelihood is that the majority, or all, of your current income is linear income. If you want to make more money you have to work more hours. If you want more free time you have to work less and as a result make less money.

 

Whilst there is nothing wrong with making your income in a linear fashion, and it is how the majority of the world earns their money, there are some disadvantages.

 

Firstly, when all of your income is linear income your income will be limited, because there are only 24 hours in a day (and you can’t work all of those hours since you need to sleep and do other things). Now this isn’t necessarily an issue. There are many business owners who have happily been running service-based businesses for years. It all depends on what the cap on your income is with your business model and whether you are happy with that or not.

 

Secondly, when all of your income is linear income you are in a vulnerable position because if you don’t work you don’t make money. That might not be an issue right now. You might be happy with the amount of time you are currently working, but will you be happy working that many hours 10 or 20 years in the future? Also, it isn’t always about whether you want to work or not. It is inevitable at some point in the future you won’t be able to work. You are a person not a robot and humans get sick.

 

HOW TO CREATE LEVERAGED INCOME AS AN ONLINE SERVICE PROVIDER

 

1. Choose what type of leveraged income is right for your business

So you’ve decided that you are ready to find ways to create leveraged income, but what type? There are a number of ways that you can create leveraged income.

 

Leverage Income Option 1: Move from 1-to-1  to 1-to-multiple services

One way to create leveraged income as an online service provider is to move from providing a service on a 1-to-1 basis to a 1-to-multiple. This is a particularly popular option  with coaches, consultants, trainers and educators. Now technically this option isn’t leveraged income as you will only get paid once for the work you do, but you get paid multiple times so it increases the amount you can potentially make working a certain amount of time. This is especially true if you provide the service online where you might not have to cap the number of participants/students/customers etc.

 

Some examples of this type of leverage income would be workshops, group programmes, memberships, masterminds.

 

You can find out more about moving from one-to-one to one-to-many here.

 

Leverage Income Option 2: Digital Products

Digital products are a great option for adding a leveraged income stream into your service-based business. Digital products are a true type of leveraged income where you do the work once (create the product) and then there is the possibility to be made multiple times in the future.  Digital products can range from fairly simple and low-ticket (printables and templates) to digital courses priced in the thousands.

 

Leveraged Income Option 3: Affiliate Marketing

If you don’t want to have to create a new service or product, but would like to create leveraged income then affiliate marketing might be a good option for you to consider. Affiliate marketing is where you promote the products and / or services of another company and then you earn a commission for everyone who buys via you. There are so many businesses that run affiliate marketing schemes that no matter what type of business you run it is likely you can find some suitable products and / or services.

 

Find out more about getting started in affiliate marketing here.

 

As you can see as an online service provider you have a number of options when it comes to choosing what type of leverage income to create. Without knowing your precise business I can’t make recommendations about what would be best. Through personal experience and clients I am well-versed in successfully  adding all 3 income streams into a business and can help you on a 1-to-1 basis (See below).

 

 

WANT TO SUCCESSFULLY ADD A LEVERAGED INCOME STREAM INTO YOUR BUSINESS?    When you already have services you have to think carefully about what is best to add in and how to market the additional income streams, without having a negative impact on the existing. I can help you to do just that with my 1:1 Business and Marketing Mentoring programme.   I offer 1-to-1 business and marketing mentoring for coaches, consultants and online service providers who are small in team size, but big in ambition.   I’ll help you to think about your big vision for the business and then ensure that choices you make right now will bring short-term success and be helpful in the long-term.   If you’re ready to fully embrace being a CEO (and that doesn’t mean taking on more people) and build a thriving online service-based business you’re proud of and that provides you with the flexibility and money you desire then I’m here to help.   For more information check out my 1:1 business and marketing mentoring programme here. And to discuss your precise needs book a free, no-obligation, introduction call to discuss your business here.

 

 

2. Create your new products or services

If you go with option 1 or 2 you will need to create the new products or services. It is one thing to think about having a leveraged income, but you need something to sell. If you are creating a 1-to-multiple service you might not need to  create the whole thing. You may decide to create a brief outline of what a buyer can expect and sell straight from that. If you are creating a digital product then you will need to create the product.

 

If you are going with affiliate marketing you have the pleasure of not having to create anything. Instead you’ll need to select what you would like to be an affiliate for and apply to join their schemes. Whilst you don’t technically have to create anything you may  decide that you want to create something that you offer as a bonus when someone signs up via you.

 

3. Set your pricing

Once you know what you are selling, and maybe have even created it, it is time to set your pricing. Remember the point of this is to add an additional income stream to your business, but since you already have .a service you need to think carefully about how you price your product or service. You’ll need to consider who it is meant for and how it will be positioned against everything else you sell.

 

For example, if you are a social media trainer who usually charges £500 for a 3-hour 1-to-1 training session and you decide to offer workshops on a 1-to-multiple basis it would be expected that you charge less than you would for your 1-to-1 session.

 

 

4. Create your marketing and sales strategy

You’ve got something to sell (whether it be your own thing or someone else’s) but you can’t just expect to make sales. You need to have a marketing and sales  strategy for how you are going to market and sell the products/services.

 

Given that this is in addition to your other service(s) you’ll need to think carefully to ensure that marketing your new leveraged income products/services doesn’t have a detrimental impact on your main services.

 

Some questions you should consider:

• Are the target markets the same?
• What marketing channels will I use?
• Will I use an evergreen or launch strategy?
• How will I  manage marketing the new products/services alongside your current services?

 

5. Start selling and enjoy having a leveraged income stream

At this point you’ve done all of the creating and thinking. It is time to start selling. Refer back to the marketing and sales strategy you put together in step 4 and start promoting and selling.

 

As a new income stream you should carefully monitor the sales. You want to ensure you are measuring the return-on-investment (ROI) for that income stream against your others. In addition, it is important to monitor whether adding in the additional income stream is having a negative impact on the other services you sell.

 

That’s it. You now know how to create leverage income as an online service provider

Deciding to create leveraged income as an online service provider is a great way to increase the potential revenue your business can generate and also give you the opportunity to work less but still make the same (or more) amount of money.

 

Let me know in the comments what leveraged income option you think is best to add into your business.

 

WANT TO GROW A THRIVING ONLINE BUSINESS THAT GIVES YOU THE MONEY AND TIME TO LIVE YOUR BEST LIFE?  Most online service providers want to add in a leveraged income so they can have more freedom. There is no point making great money in your business if you don’t have the time to enjoy it. If you are a solopreneur or small business owner that currently has a successful business that is relying on you delivering a 1-to-1 service and you are ready to take your business to the next level by expanding your business model and income streams I’m here to help. I’m a Chartered Marketer that specialises in supporting solo and small business owners that provide a service online and are looking to grow their business strategically. To find out more about my 1:1 business and marketing mentoring programme click here And to discuss your precise needs book a free, no-obligation, introduction call to discuss your business here.