Like millions of Americans, Shannon Smith found herself unemployed during the pandemic. Initially, she was laid off from her waitressing job, and later on, she tried working as an online fitness coach.
However, the business demanded exhausting 10-hour workdays and only yielded a monthly income of $1,000 to $2,000.
In July 2021, Shannon decided to make a change. Drawing from her entrepreneurship experience, she leveraged her TikTok and Instagram accounts to promote wealth-building tools and online programs.
By October, her efforts began to bear fruit, and her TikTok following skyrocketed to over 40,000 followers. Since then, Shannon has been generating approximately $8,000 per month in passive income from affiliate posts, some of which are several months old, and recurring subscriptions to her educational programs.
Now, she dedicates just two hours a day to her work, primarily focusing on posting on social media.
When people inquire about creating a passive income-generating business, Shannon offers valuable advice. She explains that there is substantial initial effort required, but the rewards are well worth it in the long run.
Shannon’s best advice is as follows:
1. Automate your business
To achieve passive income, Shannon Smith advises setting up automatic systems right from the beginning of your business. By doing so, valuable time is saved as the most crucial tasks operate on autopilot. This approach allows entrepreneurs like her to focus on other aspects of their ventures while still generating income steadily.
Create a product that requires limited upkeep
She began her entrepreneurial journey as a personal trainer, but she soon realized that offering one-on-one coaching services meant constantly exchanging her time for money. To achieve passive income, she recognized the need to provide a product that didn’t demand excessive energy in its creation and delivery.
Affiliate marketing proved to be the solution to this challenge. Presently, Shannon sells products and services from other brands, eliminating the need to handle delivery herself.
Her objective was to create a product once and continue selling it over an extended period with minimal maintenance. Examples of such products include digital courses, subscriptions to online communities, and apps.
By adopting this approach, Shannon has been able to generate income without being tied down by continuous time-intensive work, allowing her to pursue other ventures and enjoy the benefits of passive income.
Generate sales funnels automatically
She explains that a “sales funnel” refers to the journey a customer goes through before making a purchase.
In her business, customers discover her on social media, and then they are directed through her sales funnel. This process involves them signing up for her email list, where they receive product offers.
To streamline this process, Shannon has set up an automated system on her website that creates the sales funnel for her. As a result, customers are automatically added to her email list and introduced to various products without her direct involvement.
For this purpose, Shannon utilizes a platform called ClickFunnels. She also suggests other excellent options like Builderall or Systeme that can be used to create effective sales funnels for businesses. These platforms assist entrepreneurs in efficiently managing their sales process and engaging with potential customers, making it easier to grow and expand their ventures.
Set up an email auto-responder
The “Rule of Seven” is a well-established marketing principle, rooted in research by Dr. Jeffrey Lant. It suggests that contacting a potential customer seven times within an 18-month period is necessary before they become ready to make a purchase.
However, in the current digital landscape, with the abundance of online advertisements, it might be even more essential to reach out to potential customers more frequently to secure a sale. To achieve this, Shannon Smith utilizes Aweber, a platform that automatically sends daily follow-up emails to prospective customers who haven’t made a purchase until they either buy or unsubscribe.
In her observations, Shannon has noticed other business owners employing GetResponse and Mailchimp, both of which offer the capability to send automated emails. These tools enable entrepreneurs to maintain consistent communication with their audience and build meaningful connections, thus increasing the likelihood of converting potential customers into actual buyers.
2. Don’t try to reinvent the wheel
Shannon Smith has noticed that many individuals make the mistake of attempting to completely reinvent the wheel with their social media posts in an effort to gain business exposure.
Through her own experience of amassing 109,100 TikTok followers, she has learned that the key to going viral and growing one’s audience is to study what already works for others. While originality is important, it is equally crucial to post content that people already find interesting and engaging.
To put a unique twist on social media posts, Shannon recommends the following process:
- Study the discussions happening in your niche. For instance, if you are selling wellness products, look for specific conversations or recurring questions in the wellness space. Incorporate these insights into your message or the information and advice you share.
- Observe the formats being used by successful competitors. Pay attention to whether they post spoken stories, dance videos overlaid with advice, or other formats. Also, note the length of their captions and whether the content speaks for itself. Use these observations to brainstorm ways you can adapt similar formats that resonate with your target audience.
- Focus on trending hashtags and sounds. Keep track of popular sounds and hashtags across the platform you are using. Save and use them in your posts to maximize your message’s visibility and reach a broader audience.
By utilizing these strategies, you can enhance the effectiveness of your social media content and increase the chances of your posts gaining traction, ultimately helping you grow your audience and establish a strong online presence.
3. Focus on solving a problem
The primary objective of any business is to sell its products or services. However, it’s essential to recognize that customers are primarily concerned with their own goals, dreams, and challenges, not merely what you are selling.
To effectively market your product, you should adopt an indirect approach that emphasizes how your offering can address your audience’s needs and assist them in achieving their objectives.
By understanding and connecting with your customers’ desires and concerns, you can tailor your marketing messages to showcase how your product or service can genuinely make a positive impact in their lives.
This customer-centric approach is more likely to resonate with your audience and lead to successful sales and lasting customer relationships.
4. To sell to your audience, engage with them directly
While individual posts on platforms like Instagram or TikTok serve as valuable tools for providing content and entertainment to your audience, they may not be sufficient for establishing a deep connection with your followers.
Building a genuine connection with your audience is vital because it fosters trust in your words and the products you offer, ultimately leading to increased sales. To achieve this, I engage directly with my audience by actively responding to their comments and messages.
Additionally, I go live on Instagram and TikTok, providing an opportunity for authentic and meaningful interactions through real-time conversations.
By engaging in these direct interactions, I can let my audience know who I am on a more personal level. As they get to know me, they begin to trust my intentions and the value I bring.
This process of authentic back-and-forth communication enables me to establish a strong rapport with my audience, which is crucial for fostering loyalty and driving business growth.
5. Be selective about what you promote
When starting an affiliate marketing business, there are several key factors that I highly recommend considering:
- High gravity: Gravity indicates the number of active promoters for a product. A high gravity score typically suggests that the product is well-received and of good quality.
- Low refund rate: Avoid promoting products with high refund rates, as this indicates a significant level of customer dissatisfaction. Promoting such products can erode your audience’s trust in your recommendations.
- Recurring subscriptions: Products with recurring subscriptions are ideal for promotion, as they offer ongoing commission payouts with each renewal of the subscriber’s membership.
- Positive reviews: Before deciding to promote an affiliate program, it’s essential to conduct thorough research and check for positive reviews. Ensuring that the product is widely liked and endorsed by customers adds credibility to your marketing efforts.
Additionally, I recommend promoting products that I have personally enjoyed and found valuable, such as the online course I used to kickstart my own business. By sharing personal experiences and endorsing products I genuinely believe in, I can build trust with my audience and strengthen my reputation as a reliable affiliate marketer.
Shannon Smith is an affiliate marketer who teaches others how to make money online. Follow her on TikTok @hustlewithshan and @shanxxxsmith.
Source: cnbc.com