Fellow Copywriters: Ideas for adding residual income to your copywriting business?

12 replies
So I'm sure I'm not alone in asking, how can we copywriters add some kind of residual income / additional income to our freelance copywriting services, without trading too much - or any - time for it?

For example, you have clients on the books who you've done work for. But they don't need you - or can't afford you - for a while.

I've been in the game for about 5 years now and I'm looking for creative ways to generate more money from clients, without having to put in the sweat equity.

Maybe I'll start this off:

- pitching them affiliate offers related to marketing their site, plugins, etc.
- passing them onto traffic management companies for a referral fee
- selling a course/templates

Anything else you can think of?
#adding #business #copywriters #copywriting #fellow #ideas #income #residual
  • Profile picture of the author shawnlebrun
    Nick,

    something I had been doing the last few years, before focusing on getting my ad agency up and off the ground, was to license out proven campaigns to local businesses.

    I had learned this around 5 years ago, or so, from Gary Bencivenga but took a year or so to actually get around and implement it.

    It wasn't until I read 24 Hour Cash Flow Miracle that I really started to use it.

    There are MANY ways to create residual income, and I'm not going to name them all... but just think of ways you can take your knowledge or work... and leverage it out to get more money without spending any extra time.

    I promise, if you think enough about it, long enough, some ideas will pop up into your head.

    I've taken books i had written years ago, created a sales letter for it, and then licensed it out for others to sell and use as their own.

    Back to Gary B. and Doug D'Anna... since fitness and real estate were two niches I had done a ton of work in... I created a system that real estate agents could use to get more listings and sell more homes.

    Basically, I created a direct mail piece targeted towards home sellers, and one for home buyers.

    Then, I sent out direct mail pieces to local realtors. Without getting into specific numbers, let's just say that I made a lot more licensing out these letters to 2 dozen realtors than I did with just a flat fee.

    Then I tried it in the personal training niche, since I had been a personal trainer for so long... I created a brochure/flyers/direct mail piece that personal trainers could use to land more training clients and get them to sign up for more sessions.

    That one worked better, since I personally knew a lot of trainers.

    I stuck with the 2 niches I knew a lot about, but you can conceivably do this in any service market where the seller needs clients in order to boost sales.

    Doug's book helped out with how to set up the licensing aspect of it as well.

    I wish I had done it sooner, because it was the easiest way to leverage some of my copy.
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    • Profile picture of the author MikeHumphreys
      Nick,

      If you create your own info products, there's some sweat equity invested but they can become a relatively passive income source for you.

      In terms of residual income, there's a number of ways I've done it and still do it to this day. I cover this broad topic in depth in a paid product of mine, Secrets of Marketing Your Copy. I'm going to be a bit vague here, out of respect to those who have purchased that product in good faith, and not give away the materials here for free.

      What I will say is that you can structure your copywriting deals to include things like ongoing royalties, bonuses, and even retainers depending on the scope of the project.

      A number of the major mailers do this so that the copywriter has some skin in the game to continue to work on the project and so they get to share the rewards of everyone's hard work. There's also no "you only paid for 4 emails so you have to pay again if you want more" types of conversations either.

      With some types of recurring income, there's still some additional copy work done even after the initial product launch.

      For example, when I wrote a freelance project for The Oxford Club, I didn't write a set number of emails or teaser copy as part of the project fee. I wrote as many emails and teaser copy inserts as they needed for my project. That way, they could promote it in multiple ways because part of my compensation was tied to how well the promotion did.

      Hope that helps,

      Mike
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  • Profile picture of the author Nick Brighton
    Great ideas guys. I definitely know that royalties can pay well. The idea of selling systems always seems a bit odd to me as each business is different and results can vary so much. I'd love a bit more insight on that?
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    • Profile picture of the author MikeHumphreys
      Originally Posted by Nick Brighton View Post

      Great ideas guys. I definitely know that royalties can pay well. The idea of selling systems always seems a bit odd to me as each business is different and results can vary so much. I'd love a bit more insight on that?
      That's one of the biggest myths about there. Every business is NOT different.

      Marketing is marketing.

      What works in one industry often will work in another. The key is in the research to hit the target market's hot buttons and minimize/discount the competition.

      Also, a bit of common sense need to be applied too... the tactic may be fine but the offer may have to be something completely different.

      I remember hearing about a campaign done by a franchise marketing company's rep. The rep had their client, a local pizza shop, run a lead generation ad for a free report. The campaign bombed because it was the wrong offer... simply offering a free slice of pizza would have worked much, much better. Add on an in-person pitch from the cashier to sign up for the pizza shop's email list when they stopped by for their free slice would get those new prospects right into an email marketing funnel as well.
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      • Profile picture of the author Horny Devil
        Banned
        Originally Posted by MikeHumphreys View Post

        That's one of the biggest myths about there. Every business is NOT different.
        I'd beg to differ. Every business IS different. Vastly.

        Every business is different by virtue of the person that runs it. A successful business can be operated by an idiot, and a failing business is often conducted by a clever person.

        If every business were the same then every business would be equally successful, or equally fail.

        It's the person that makes the business, not the reverse.


        Originally Posted by MikeHumphreys View Post

        Marketing is marketing.
        You can be a marketing genius but if you manage the tools at your disposal incorrectly then you ain't going anywhere.

        Awareness of your competitors, strategy, astute spending, exploitation of innovative advertising methods, customer satisfaction, and a whole lot more.These are just a few of the skills you need to implement to ensure a successful business.

        Marketing is marketing, but the person behind it - or those who pay the bills - will determine it's success . . . or not.
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        • Profile picture of the author MikeHumphreys
          Originally Posted by Horny Devil View Post

          I'd beg to differ. Every business IS different. Vastly.

          Every business is different by virtue of the person that runs it. A successful business can be operated by an idiot, and a failing business is often conducted by a clever person.

          If every business were the same then every business would be equally successful, or equally fail.

          It's the person that makes the business, not the reverse.




          You can be a marketing genius but if you manage the tools at your disposal incorrectly then you ain't going anywhere.

          Awareness of your competitors, strategy, astute spending, exploitation of innovative advertising methods, customer satisfaction, and a whole lot more.These are just a few of the skills you need to implement to ensure a successful business.

          Marketing is marketing, but the person behind it - or those who pay the bills - will determine it's success . . . or not.
          Hey Devil,

          Re-read my post. I'm talking about MARKETING. I'm not talking about business operations.

          Big difference.

          A copywriter or marketing consultant is not brought in to run a business or handle the accounting or payroll. If they are, then they've become an operational person or a co-owner of the business.

          A successful business rarely is run by an idiot. If they are, it's because they bought it from someone else and drove it into the ground, regardless of what marketing they may or may not have in place. Franchises that fail to do proper due diligence on prospective franchisees are a good example of this.

          A successful business is frequently run by someone is experienced with how to run a business correctly. Or they actively work to overcome it by hiring the right staff (like an office manager) to cover those critical areas. Or they choose to getting additional training to fix those gaps in their skills.

          A failing business may be conducted by a clever person but it doesn't mean they have a lick of operational sense or any EXPERIENCE running a business.

          The lack of operational experience is what Michael Gerber refers to as "a technician having an entrepreneurial seizure" in his classic business book, The E-Myth. The technician starts their own business and quickly learns that there's a lot more things to do with running a business besides being really good at a trade or technical skill.

          Watch an episode or two of "Tattoo Rescue" and you'll frequently see a great example of "entrepreneurial seizure" in action.

          http://www.spike.com/shows/tattoo-rescue


          This is courtesy of the Small Business Adminstration (Bolding is mine):

          What are the major reasons for small business failure?

          In his book Small Business Management (published by West Publishing Co.), Michael Ames gives us the following reasons for small business failure:

          Lack of experience
          Insufficient capital (money)
          Poor location
          Poor inventory management
          Over-investment in fixed assets
          Poor credit arrangement management
          Personal use of business funds
          Unexpected growth

          Gustav Berle in The Do It Yourself Business Book (published by Wiley Co.) adds two more reasons to Michael Ames' list:

          Competition
          Low Sales

          What are the major reasons for small business failure? | SBA.gov

          Each one of the reasons I bolded can be controlled or even fixed through effective marketing. The other reasons for failure listed above are operational/administrative except for poor location.

          Poor location could be a matter of the owner picking a bad location (administrative) or that their potential customers don't know they are there (marketing) especially if it's a brick and mortar business with little or no outside signage (marketing).

          Mike
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          • Profile picture of the author karlisfoundhere
            I'm new to forums in general, let alone WF. You could say I'm a first time caller long time listener. My first experience here wasn't great, even though it was my own fault (lesson learned).

            I hope you all don't mind helping a total noob out. I have always wondered, when it comes to royalties or percentage 'backend' payments.... how can you possibly know they are being honest and paying you the true amount. Seems to me they could say "only made $1000 this week, when it was really $100,000. Is there a tool, program, method, code or anything to help the Copywriter actually monitor this? Looking forward to hearing back from you all. Excuse me if its a stupid question and I have missed something obvious. haha. :p
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            • Profile picture of the author Alex Cohen
              Originally Posted by karlisfoundhere View Post

              I'm new to forums in general, let alone WF. You could say I'm a first time caller long time listener. My first experience here wasn't great, even though it was my own fault (lesson learned).

              I hope you all don't mind helping a total noob out. I have always wondered, when it comes to royalties or percentage 'backend' payments.... how can you possibly know they are being honest and paying you the true amount. Seems to me they could say "only made $1000 this week, when it was really $100,000. Is there a tool, program, method, code or anything to help the Copywriter actually monitor this? Looking forward to hearing back from you all. Excuse me if its a stupid question and I have missed something obvious. haha. :p
              One way to know is to work with reputable companies.

              Another is to ask for audited financial statements.

              Alex
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            • Profile picture of the author gjabiz
              It is a good question. YES, dealing with reputable companies is always a good idea. Every agreement (contract) I've worked under, that had a royalty structure, always included the HOW of figuring out the royalty.

              Big and/or legit companies have transparency for these types of things, and processes or procedures in place. You probably don't want to be the first guy, if it is a new company or inexperienced with royalty agreements, to give them their training...so, you might want to stick with established firms.

              Make sure your attorney has a look, or in lieu of an attorney, educate yourself on contract law, and learn how to negotiate, because, most are not carved in stone. Be careful if they include an indemnity clause, make sure you have everything spelled out exactly.

              You can probably find sample contracts online use google or bing and read several of them over.

              IF you can sell, there is not a good reason why any company would want to cheat you out of your commissions, deal with established firms and you'll be OK, probably.

              gjabiz


              Originally Posted by karlisfoundhere View Post

              I'm new to forums in general, let alone WF. You could say I'm a first time caller long time listener. My first experience here wasn't great, even though it was my own fault (lesson learned).

              I hope you all don't mind helping a total noob out. I have always wondered, when it comes to royalties or percentage 'backend' payments.... how can you possibly know they are being honest and paying you the true amount. Seems to me they could say "only made $1000 this week, when it was really $100,000. Is there a tool, program, method, code or anything to help the Copywriter actually monitor this? Looking forward to hearing back from you all. Excuse me if its a stupid question and I have missed something obvious. haha. :p
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  • Profile picture of the author Mark Pescetti
    Mike is demonstrating how to add residual streams of income by mentioning his ebook.

    He leveraged his skills as a copywriter and made a product about marketing your copy.

    Do the same.

    Create your own products.

    Get involved in some JVs.

    Become an affiliate for a product you believe in and write your own copy to put your conversions on steroids.

    By the way...

    Once you've demonstrated your ability to convert (whether it's for you own products, client products... or both,) you'll be able to command some hefty backend action for new gigs.

    How many 10% backend deals do you think you need to live a comfortable life - while continuously developing more of your own products?

    mark
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    Do you want a 10 figure copywriter and biz owner to Write With You? I'll work with you and your team, on zoom. Discover More

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  • Profile picture of the author Nick Brighton
    I definitely think backend royalties are the quickest way to more income. I've done it a few times with product launches but offered it as "I'll write up front for a tiny fee, then you'll pay me a percentage for x weeks."

    I'd be interested to see how folks strike up longer term deals - I mean, why would someone keep paying you over and over for one gig, as opposed to paying you an upfront fee?

    I suppose there has to be an end in sight - a set timeframe? Especially if you're not going to be involved in it anymore as a copywriter?

    I can see why someone would agree to a long term royalty over a larger upfront fee - it minimizes risk and is easier on cash flow. What would you do if they turned around and said "we've stopped using your copy, so we'll stop paying you royalties now"?
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  • Profile picture of the author shawnlebrun
    To add to what Mike said well, marketing is marketing. And business is business.

    No business can exist without selling something and making a profit. Nothing happens in business until a sale is made.

    And once you learn how to market, write copy, and sell... the world is your oyster.

    SO many doors open... you can write copy for others, yourself, create your own products, consult, coach, etc... the list goes on and on.

    Personally, I have well over a dozen income streams.. ranging from copywriting, to niche sites, to coaching, to consulting, to my own products.

    And at the foundation of each... is marketing.

    So, that's why I mentioned earlier, if you sit and think of your business for a bit, you'll uncover MORE than enough ways to create residual, passive income.
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