You can't make money if you can't find people to sell to. These three tactics will help you identify the target markets for your passive income products and services.

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February
28, 2019

6 min read

The opinions expressed by the entrepreneur's contributors are their own.

The following excerpt is from Nightingale-Conant's book The Power of Passive Income: Making Money Work For You. Buy it now on Amazon | Barnes & Noble | Apple books | IndieBound

When you have a business idea, it's time to identify exactly who your customers are. We will identify them using three different categories – an objective measure, a subjective measure, and a third classification which we refer to as "ECB" or expected customer behavior. Let's look at these three categories in turn.

Objective measure

Basically, the objective measure is related to anything you can say about numbers about your customers. For example, can you determine which age groups are most interested in your offer? Let's use "old-time baseball" as an example. In this topic, consider which population group could make up the largest part of your website's viewership. You can find out how many people have visited websites dedicated to your interest. You can also find out how many people searched the Internet for phrases like "Early Baseball" or "History of Sports". However, this type of research is usually not effective in terms of cost and time.

You are probably the best source of objective information on a particular interest yourself. Most of the people who share your interest are likely to be very similar to you. This is especially true if you have found a specific interest. There may be millions of people who follow NFL football, but far fewer care what baseball was like a hundred years ago. And remember, this can work to your advantage. Even if there are only a thousand people across the country sharing your interest, you will have sizable passive income if you can get everyone to send you $ 10 a month to subscribe to a newsletter on your topic.

Subjective measure

Subjective actions by your potential customers are those that aren't simply expressed in numbers. They are generally understood anecdotally or in combination with numerical analysis. For example, during the presidential election debates, almost every candidate in the past 30 years has worn a red tie. It's just something voters want to see, and it goes beyond objective categories of age, income, or geographic location. Focus groups show that both men and women react more positively to someone with a red tie than a blue tie. It's just a gut feeling people have. It's totally subjective. But it's a fact, so why fight it? That is why you will see so many red ties in the debate stage.

It is important to be aware of your potential customers' subjective problems. For example, in each area of ​​interest there are certain phrases, names, and ideas that people use to recognize each other. We can call it slang, although this word can have negative connotations. It is really just a set of beliefs that a group of people shares and that form the starting point for a possible relationship. For example, if you want to connect with someone who likes motorcycles, be sure to mention the classic Indian motorcycle brand that was popular in the 1940s. Once you bring this up, a motorcycle fanatic will find that you have some interest. If he or she mentions the Indian motorcycle and you have no idea what it is, it is clear that your interest is less than that. So think about what those subjective touchstones might be for your prospects and make sure you use them.

Expected customer behavior

The final element on your customer profile concerns the beliefs that a customer has about you, your website, and any product or service you offer. This last element also includes the beliefs you have about your customers. All of this can be referred to as expected customer behavior (ECB). And no matter what kind of online passive income business you're looking to build, you can probably rest assured that at least one of three things is true.

First, if you expect someone to pay you $ 100 or more through your website for something that is not a tangible product, that expectation is very wrong. Online customers just won't. But there's another side to this coin: online customers also expect you to actually ask them to spend $ 100 or more. So if you refute that expectation by asking for less, you have a good chance of making a sale.

Second, if you edit your website or blog with the expectation that visitors will explore every corner of it, you will be disappointed. Even when web visitors are passionate about a particular topic, the vast majority of people spend less than five minutes, and often less than a minute, on a website. This is another reason why a simple, well-organized website is better than a more elaborate one. So, put your best information in the foreground, show the visitor what you have to offer, and make answering that offer as quick and easy as possible. This is definitely the most efficient way to build a passive income stream.

While it is true that expensive websites are a mistake, there is one aspect of a website that you need to take very seriously: you need to update your website as often as possible. Ideally, this should be done every day or every two days to start with. This is probably the most important fact that you need to know about any website business. Visitors can quickly find out how often a website is updated and come back accordingly. This is another reason blogs are so much better than more complicated websites. It's easy to update a blog on a daily basis. The few minutes you spend updating your website are the essential foundation for building a passive income online.

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