20 November 2023
The 411 on Making Passive Income as an Online Health & Fitness Coach
Lots of online health and wellness coaches aspire to generate passive income – but what does that REALLY require? And is it the best option for newbie coaches?
👉🏼 First, quick reality check: People who make lots of money via passive income usually have MASSIVE social media followings.
You essentially have to if you’re selling low-cost courses, guides or PDFs (which are some of the most common passive income sources for online coaches).
Here’s how the math breaks down:
❌ Let’s say you are selling a course for $27. In order for that to generate $50k in a year, you need to sell 1,851 courses – that’s 155 per month.
❌ This means you should have an audience of at least 4,000-6,000 people… to begin with. That’s because a typical conversion rate is 3-5% – so, if you have 6,000 followers, the best you’re *probably* going to do is convert 300 people.
❌ But 300 sales aren’t nearly enough (at this point, you’ll have only made $8,100). You need NEW eyes on your offer, so you should also be growing your social media following RAPIDLY – either organically or by running ads, which can easily cost $3-5k per month.
(note: I didn’t even consider running ads until I cleared half a million dollars in a single year as an online coach)
If all of that is making your head spin, I get it. That’s why I ALWAYS recommend new and beginner online health and wellness coaches start with 1:1 coaching.
To make $50k a year selling private coaching for $400 a month, you only need 125 buyers – and your audience can be MUCH smaller.
👉🏼 Now, let’s discuss memberships. Although they aren’t always 100% passive, they require FAR less time and energy than 1:1 coaching. Plus, because they’re more affordable, they can be a great way to get new people into your world.
However, if you aren’t VERY careful and intentional, your membership runs the risk of cannibalizing your 1:1 coaching offer.
For example, if your $49 monthly membership offers a workout and nutrition plan for fat loss – and your $350 per month private coaching offer *also* includes those things – why would anyone choose the more expensive option?
🚨 Spoiler alert: They won’t.
As a result, it is ESSENTIAL to differentiate the two offers and make that CLEAR to your audience in your marketing.
In short, your membership should NOT appeal to your ideal 1:1 client, and vice versa.
Another important thing to keep in mind: The average length of time someone spends in a membership is 2-3 months – once they’re gone, you’ll likely want to fill that spot with someone new.
This isn’t necessarily a problem, but it WILL require you to continue growing your social media following to get fresh eyes on your offer.
👉🏼 The bottom line? Making “good” money via passive offers is more complicated and time-consuming than most people believe – especially for new coaches who can’t afford to run ads.
As a result, I will ALWAYS recommend building your online health and wellness coaching business with private coaching, then expanding to include passive (or semi-passive) offers once you’re more established.
And here’s a bonus tip…👇🏼👇🏼👇🏼
If anyone tells you that passive offers are a one-way ticket to making millions, no matter how big your following is or how much you know about social media marketing, RUN.
Unless you’re a unicorn, it doesn’t work that way.
I’m sharing even more on this topic on ⚡️The Best Coach Ever Podcast!⚡️
🎙 Listen to Episode 98: The 411 on Making Passive Income as a Health & Fitness Coach wherever you get your podcasts (and if you’re listening on Apple Podcasts, don’t forget to leave a rating and review – I would love to hear from you)! 💜
Hey, I’m Lynette!
I’m a fitness coach turned 7-figure CEO and business coach.
With 8+ years of experience in sales, marketing, program development, and content creation, I help women take their businesses from shaky start-ups to thriving empires. Why? Because I know it can be done!
Once upon a time, I was trying everything I could to get people’s attention and sell my offers. (Well, everything short of standing naked in the town square!)
Now I’m running the 7-figure business of my dreams.