5 Easy Ways to Make Passive Income Streams for Life Coaches

“You become financially free when your passive income exceeds your expenses.”

– T. Harv Eker

Introduction

You can make six figures by coaching clients one-on-one, but if you aim to hit seven figures, you’ll need to rethink your strategy. That’s where passive income comes into the picture – an effective and popular strategy that lets you boost your revenue without being constantly hands-on. 

In this blog, we will share:

• What passive income is
• Why life coaches need passive income
• 5 easy and effective ways to make passive income streams to grow your life coaching business

What is Passive Income?

Passive income refers to earnings generated with minimal ongoing effort after the initial setup, such as from valuable resources like courses, eBooks, or webinars that continue to generate revenue without your active involvement. 

For life coaches like you, this can include the revenue from digital products, membership sites, and affiliate marketing, among others. 

Essentially, while active income relies on the work you do—such as 1:1 life coaching services or group coaching programs—passive income is based on the assets you create and own.

If you want to know how much you can earn as a life coach, then read the blog Life Coach Pay Rate: How Much Can You Make in 2024 to get the clarity you need.

Why do you need passive income as a life coach?

Diversifying passive income streams is important for life coaches like you to reduce risks related with economic fluctuations, changes in client demand, and personal circumstances. 

By having multiple income sources, you can ensure a steady flow of revenue even when one stream faces a downturn. Additionally, diverse passive income streams can help in reaching a broader audience and boost your brand’s visibility and impact.

Passive income comes with a bunch of perks such as:

1. Financial and personal freedom: Passive income grants you the freedom to make choices that align with your values and desires, rather than being dictated by financial pressures. With a steady income stream, you can be more selective about the clients you work with, reduce your coaching hours, and spend more time on personal pursuits like traveling or being with family. This combined financial and personal freedom allows you to create the flexible lifestyle you envisioned when you became a coach.
2. Scalability: Unlike one-on-one coaching, which is limited by time, passive income allows you to scale your business exponentially. Through digital products, courses, or memberships, you can reach a much larger audience and grow your revenue without adding to your workload.
3. Sustainable income: Passive income ensures you have a consistent flow of money, even when you’re not actively working. Whether you’re on vacation, dealing with personal matters, or just taking a break, your income continues, offering peace of mind and financial security.
4. Security: Passive income diversifies your revenue streams, reducing reliance on active coaching alone. This flexibility allows you to make strategic business decisions, invest in growth, or take time off without worrying about immediate financial impacts. Even if you need to step away for a while or invest more heavily in your business, you still have additional income streams beyond just coaching.
5. Risk management: Spreading your income across various sources reduces the risk of relying too heavily on one. If one income stream falls short, others can compensate, ensuring that your overall financial stability remains intact.
6. Financial stability: Passive income streams act as a financial safety net, offering security during unexpected emergencies. This steady flow of income helps you manage unexpected expenses without disruption.
7. Audience reach: Diversifying your income sources lets you engage with different segments of your audience. By catering to varied interests, you broaden your influence and connect with a wider range of potential clients.

You’ve seen the benefits of passive income. Now, what are the different income streams, and how do you start building them?

Let’s find out.

5 Ways for Life Coaches to Create Passive Income Streams

1. Online courses
2. Workshops and webinars
3. Membership programs
4. Blog, newsletters or podcasts
5. ebooks

Although passive income can take a variety of forms, these are some of the best passive income streams that you can try:

1. Online courses

According to the Business Research Company, the e-learning market is expected to grow $320.96 billion in 2024 at a compound annual growth rate (CAGR) of 14.1%. This means that the industry is growing fast.

So, why should you join the market being a life coach?

Because, online courses are one of the best passive income streams for you.

You can use your coaching methodology to build your online course.

Basically, your experience with private clients has given you insight into their challenges, helping you to create a course that’s more effective than what many new course creators might offer.

Additionally, if you already have an established audience, you can market your course directly to them.

What is the secret to making selling online courses truly passive?

The secret to creating an effective passive income with online courses is in setting an evergreen sales funnel.

An evergreen funnel automates the sales process for your course, allowing it to sell without your direct involvement. Simply put, the funnel does the selling for you.

The evergreen sales funnel works like this:

1. You create a self-paced course
2. Use scalable traffic methods (like paid ads or SEO)
3. Set an automated email sequence to promote your course
4. Invite your email subscribers to a webinar where you can present and sell your course

Start by identifying your traffic sources, ideally focusing on paid ads or SEO. We’d suggest you to prefer SEO as it often yields better returns than paid advertising. To enhance visibility and boost organic traffic to your coaching website, follow these actionable SEO tips.

This traffic will funnel potential customers into your email list. From there, your email campaigns will guide subscribers to a webinar that showcases and sells your course. This approach can help you generate income with minimal ongoing effort.

To chart out an effective email marketing campaign strategy, here is a guide that unveils the 5 proven strategies that help you grow your company without having to “sell” your services like a consumer company running a promotion.

Note: Developing a successful evergreen funnel requires time and is generally not recommended if you’re a beginner. If you’re just starting out with course creation, you might want to focus on traditional course launches first.

To learn more, here is a detailed, step-by-step guide on creating a sales funnel that will help you streamline your business marketing efforts.

Now let’s get into the steps to create and launch your online course:

1. Identify a topic: This is the most important step. Choose a subject that you are passionate about and that meets a specific need of your audience.
2. Outline the course: Plan the structure and content of your course, breaking it down into manageable modules.
3. Create content: Develop videos, quizzes, and supplementary materials for your course.
4. Choose a platform: Use platforms like Udemy or Kajabi to host and sell your course.
5. Launch and promote: Market your course through your website, email lists, and social media channels.

Remember THIS, the key is to zero in on a niche (the first point) where your skills truly stand out. If you try to cover too much, your course might end up feeling vague and unfocused. Wouldn’t you rather choose “Mastering Digital Marketing Strategies” over something vague and broad like “The Ultimate Guide to Business Success”?

2. Workshops and webinars

Workshops and webinars are excellent avenues for you to share your expertise while generating passive income. 

By hosting live sessions initially and then repurposing the recorded content into paid courses or webinars, you can reach a wider audience without compromising ethical standards. These sessions can focus on specific coaching techniques, personal development topics, or niche coaching areas like career transitions or leadership skills.

Here’s how to effectively generate passive income through workshops and webinars:

• Design engaging content: Create workshops that address common challenges or goals relevant to your target audience. For instance, a session on “Effective Stress Management Techniques” or “Building Leadership Skills in the Workplace.”
• Use technology: Use platforms like Zoom, WebEx, or GoToWebinar to host your sessions. Later, these can be sold as on-demand content on your website or through platforms like Simply.Coach or Kajabi.
• Market effectively: Market your workshops through your existing channels, like your newsletter, social media, or blog, ensuring your current followers are aware and can spread the word.
• Offer certifications: Providing a certification or a badge upon completion can add additional value for participants, making the workshop more appealing and justifying a price point that reflects the value offered.

3. Membership programs

Membership programs offer a sustainable model for generating income by providing exclusive content and continuous support through a subscription-based model. This approach aligns well with the coaching ethos by creating a long-term, supportive community that’s focused on growth and development.

Implementing a successful membership program involves:

• Exclusive content: Offer unique content that is not available elsewhere, such as members-only videos, articles, tools, and more.
• Community building: Incorporate a community aspect where members can interact with each other and with you. This can be facilitated through forums, monthly Q&A sessions, or group coaching calls.
• Regular updates: Keep the content fresh and relevant by updating it regularly and adding new resources that address the evolving needs of your members.
• Tiered pricing: Create different levels of membership, offering varying degrees of access and exclusivity to accommodate different budgets and needs.

By focusing on these ethical and sustainable methods, you can create significant passive income streams that not only benefit your financial goals but also provide immense value to your clients, enhancing your professional reputation and reach.

See this blog for successful branding insights from famous coaching titans like Marshall Goldsmith and Tony Robbins.

4. Blog, newsletters or podcasts

Blogs, email newsletters, and podcasts are excellent tools if you’re looking to generate passive income beyond social media. These formats help you connect directly with potential clients and build a community, offering great opportunities to promote your online coaching courses.

Start by using your blog, newsletter, or podcast to showcase your coaching expertise and promote your core services. If you’re seeing more consultation requests, you’re on the right track.

But there’s more to it. These platforms can also be monetized, turning them into sources of ongoing income. Focus on creating valuable, engaging content first—avoid making your blog, newsletter, or podcast feel like one big ad. A subtle touch of self-promotion is enough.

If you’re busy with your primary coaching work, don’t stress about managing all three formats. Choose the one that suits you best. Here are five ideas to get you started:

1. Record a Q&A session with a client and share it as a podcast episode.
2. Write a blog about your journey as a life coach and how you entered the field.
3. Share insights from your coaching sessions in a weekly email newsletter.
4. Blog about common mindset challenges your clients face and your methods for overcoming them.
5. Interview other life coaches about their career paths for your podcast.

How to create passive income with these formats?

Monetizing your blog

For blogs, you can make money through ads and affiliate links. To be successful, focus on creating high-quality, engaging content that resonates with your audience. Here’s an idea to get started:

• Share valuable insights or tips related to your coaching niche.
• Use affiliate links and offer sponsored posts to generate income.
• Consider offering exclusive content through a subscription model.

Monetizing your newsletter

Newsletters can be profitable through affiliate links and paid subscriptions. For instance, you can:

• Include affiliate links and partner with brands.
• Use platforms like Substack to charge a monthly fee for exclusive content or coaching memberships.

Monetizing your podcast

Podcasts are similar to newsletters in terms of audience building. To earn money:

• Provide engaging content to make listeners click your links.
• Use ad reads for sponsored brands that fit your podcast’s theme.
• Focus on growing your audience to attract higher-paying sponsors.

Keep in mind that most sponsorship deals require a large number of monthly downloads. Hence, prioritize growing your audience before you start focusing on monetization.

Earning potential

You can make five to six figures, or even seven figures with a large audience.

5. eBooks

Did you know that the number of ebook readers is expected to hit 1.1 billion users by 2027. Yes, eBooks can be a great source of passive income, especially if you can turn your popular blog posts into book content. This helps to establish yourself as a leading authority in your field.

Don’t worry about writing a lengthy novel; a concise, 20-50 page guide that addresses a specific skill or life change is often more effective. 

Create an eBook that provides original insights, practical strategies, or compelling stories that complement your coaching. Focus on your expertise and keep it targeted to provide real value.

To start earning from this passive income stream, write a book on a topic related to your life coaching services. Alternatively, you can offer other digital products like:

• Templates
• Planners
• Design tools
• Apps and games
• Workshops
• Editable graphics
• Stock photos or videos

However, there’s a catch with eBooks. Although making six figures from eBooks and digital products is possible, it’s uncommon. The reason? These products are generally inexpensive, with most eBooks priced between $5 and $20.

Even though self-publishing on Amazon Kindle is straightforward and free, making a bigger income requires selling a high volume of books. 

For example, to earn $1,000 from a $20 book, you’d need to sell 50 copies. If you have a clear idea, an existing audience, and a passion for writing, go ahead and publish your eBook to build your expertise or share your knowledge.

To give you clear idea on the steps involved in writing and publishing your eBook:

1. Choose a topic: Select a topic that showcases your expertise and meets your audience’s needs.
2. Write the manuscript: Draft and edit your eBook carefully, ensuring it provides valuable insights and actionable advice.
3. Design the cover: Create an eye-catching cover that reflects the content of your book. Use Canva to design professional-looking eBooks, templates, and printable downloads.
4. Publish: Use platforms like Amazon Kindle Direct Publishing (KDP) to publish and distribute your eBook. Then use other marketing channels like your social media and your blog to drive traffic to them.

Explore Simply.Coach – the leading digital coaching platform that helps you save time and makes your life simpler so you can focus on coaching. Read this blog to learn why Simply.Coach is one of the best life coaching platforms.

Conclusion

Developing passive income streams involves creativity, innovation, and persistence.

The most effective passive income strategies are those that reflect your values, use your strengths, and address the genuine needs of your clients.

Begin today, and see how passive income can elevate both your coaching practice and personal life!Interested in more expert tips to boost the visibility of your life coaching business? Click here!