The truth about passive income with digital courses

Today, I want to address the myth that digital courses are a golden ticket to easy, scalable income and propose a better way to grow your coaching or consulting business.

Consider this question…

If you only got paid by clients if they got results, would you offer them a digital course? Or would you give them a program that offers support in addition to information?

The Passive Income Trap

In 2006, I launched my first digital course. While I genuinely wanted to help people, I was also focused on building a business that would give me more freedom in my lifestyle.

Internet business gurus of the time sold the alluring lifestyle dream of creating content once, setting up automated sales funnels, and watching the money roll in while I enjoyed more freedom.

Clients could sign up any time (even while I was sleeping!) and go through the course at their convenience. It seemed like a win-win until I realized this approach had significant downsides.

While many students succeeded, many others struggled to reach the desired goal because they didn’t have the necessary support to make it over the finish line. Information alone was not enough for them to succeed.

4 Ways the Passive Income Trap Harms Your Business

It’s not only the students who fail with “passive income” courses. There are several ways digital courses can also slow the growth of your business.

1) A Jaded Market is Hesitant to Buy

Clients today are savvier and more jaded. Their “shelves” are filled with courses gathering digital dust. They are more hesitant to invest in information alone, no matter how good it may seem. This makes it harder to sell digital-only courses.

2) The Price Predicament

Digital courses don’t command as high of a price. Course creators quickly realize they must sell a much larger volume to reach their income goals. Moreover, the course creator hesitates to spend money on marketing because they can’t afford to give up a chunk of the profits. It leads to a vicious cycle of disappointment.

3) Fewer Success Stories = Fewer Sales

Success stories are your most powerful tool for marketing and sales. Yet, digital-only courses are less likely to deliver success stories, making it even harder to generate sales. This also leads to fewer referrals and repeat buyers.

4) Stagnant Content

Course creators lose the opportunity to improve their course based on student feedback when they have little interaction with their students. Passive income thinking can also lead to a set-and-forget approach where course content quickly becomes outdated.

Delivering True Transformation and Results

What does it take to design a program that delivers dependable success?

1) Feedback

Research shows that feedback has a powerful effect on student outcomes. They need timely, specific feedback that helps them course correct and validate their progress.

2) Flexibility

Success is not a formula. Each student has different timing, resources, strengths, and values. They need guidance to apply the course principles to their specific circumstances.

3) Group Interaction

Group interaction allows students to learn from each other’s experiences. Group camaraderie provides inspiration and accountability. Group discussion further solidifies learning.

4) A Motivational Lifeline

When students have a place to express their struggles and doubts, they are much more likely to overcome these hiccups and get back on track. Opportunities to be coached help them make the necessary shifts in mindset and understanding that lead to success.

When Digital Courses Shine

This isn’t a blanket condemnation of digital course content. I want to recognize that it has its when used well.

For instance, digital courses work great when teaching a specific process where behavioral change, mindset shifts, and group camaraderie are unnecessary to success. For example, a digital-only course could help someone set up an email list, tune up the gears on a bike, or write a compelling resume.

They also work well to give new clients a way to “dip their toe” into working with you at a lower price. In this case, the strategy is not to create an income stream but rather to attract new clients that eventually move up to an offer where they get more support.

Also, the group programs I create and help clients create consist of libraries of digital content. But once students go through the lessons, they have ample opportunities to get the kind of support outlined above.

Impact and Income, Flexibility and Freedom

Scaling your business and delivering amazing results are not mutually exclusive.

Since my early days of creating and selling digital courses, I’ve found an approach for designing, optimizing, and running group programs that grow your income, impact, and freedom without sacrificing results.

If you’d like to get started designing a premium, transformation group program that allows you to serve more people without sacrificing your freedom or their results…

Book a 20-Minute Rapid Group Program Assessment

I’ll help you assess how you can turn your existing content into a scalable group program.