4 Lucrative Consulting Passive Income Ideas

  • residual income ideas

Consulting is a way of providing your expertise to a business or an individual consumer. As a consultant, your role is to help people get from their current situation to their desired situation. It really is as simple as that.

Consultants are hired for three main reasons:

  • Speed – Getting to the goal faster.

  • Lack of skill/knowledge – People/businesses don’t know how to get to their desired goal on their own.

  • Proven system – People want to follow a tested system that they know works.

  • Speed – Getting to the goal faster.

  • Lack of skill/knowledge – People/businesses don’t know how to get to their desired goal on their own.

  • Proven system – People want to follow a tested system that they know works.

(I’ve recently written a compact review on a popular consulting course by a guy called Sam Ovens — feel free to check it out!)

Let’s get started!

The Backseat Headhunter

I came across a post on Quora by an IT recruitment business owner and thought it could be an awesome idea for a passive income stream.

If you aren’t familiar with “headhunting”, these are the guys that find candidates for job vacancies. They usually focus on high-profile vacancies at the senior management level (they make more commission this way).

Speaking of commission, a headhunter can expect to make anywhere between 15-30% of a candidates annual salary for each one that lands a role. For an IT cyber security director on $150,000 a year that’s $20,000 at 15%. For one person!

Getting up and running

The expenses for this business are minimal. A laptop, phone, internet connection and a subscription to a LinkedIn Recruiter account is all you need to get started as a headhunter.

The process involves identifying suitable vacancies and finding matches for those vacancies through LinkedIn. You would then reach out to the prospects you’d find and go from there.

Having great soft skills is probably the most important part of this business. Building rapport and forging new connections is a regular requirement.

From a passive income perspective. You could incorporate a company and come up with a proven process for getting vacancy leads and landing deals with employers. By going through this yourself, you’ll establish what works, and what doesn’t.

If you can do this, you can employ and train other people to do it for you too.

The best way to hire recruitment consultants is to pay them a lower salary but offer them an attractive compensation package.

Incentivise the hustle!

You can find the original post with full details here (it’s the post by Nick Tsappis)

The bottom line

There’s great fortune to be made in recruitment. Headhunting is a low cost, high-profit business model with huge scope for outsourcing.

Cost of Launch
Difficulty Level
Profit Potential

The Coaching Business

Dreamt of being a coach or consultant? Passionate about helping people overcome something? Although not entirely passive, many successful coaching businesses are run by just one or two people.

Here’s an example: 

Meet Brittany Brown. She owns a coaching business that helps people overcome binge eating. Brittany has very cleverly taken a personal trauma and transformed it into a viable business. No special qualifications or certificates required.

Brittany’s business operates a three step process: 

  1. Identifying the problem(s)
  2. Conducting a strategy session.
  3. Taking on clients for her transformation program.

Her site isn’t optimised for the search engines. Instead, she gets her traffic from Facebook advertising. Facebook ads are perfect for this type of business because the targeting features are very advanced.

Brittany’s business was featured in a popular consulting training testimonial. Through this training, she was able to grow her business from $14,000 a month, all the way up to $60k+, per month.

The bottom line

While not entirely passive, a coaching business is an awesome way to share your existing expertise with the world. And get paid really well for doing it!

Many of us don’t realise that the obstacles we have overcome are valuable lessons that other people need to overcome the same things! You don’t need formal qualifications to build a thriving business.

Cost of Launch
Difficulty Level
Profit Potential

The Local Business Marketer

Local businesses are struggling to keep up with the pace and expansion of the internet. They’re seeing fewer customers come through their doors as more people discover better deals online.

Businesses are willing to pay good money for someone to manage their social media presence.

For example, most don’t have the time or resources to create, manage and grow their social media presence.

You can offer your services as a consultant and charge a monthly retainer fee for creating and managing social media for these businesses. Then you can outsource the grunt work to a freelancer while you sit back and collect coin.

Type of work involved

The actual work involved in managing social media accounts isn’t much at all.

Tools like HootSuite and IFTTT let us schedule posts, monitor activity and respond to updates automatically. You can schedule an entire weeks worth of content in under an hour!

The bulk of the work will be initially reaching out to prospects and conducting consultations, but once you have a few clients on retainer, it can be pretty passive.

The scope for scale with this type of business is huge. One or two people can quite easily manage twenty clients if they outsource things efficiently. Twenty clients x $1500 a month = $30,000 a month.

The bottom line

Social media marketing is brimming with opportunities. Most small businesses have no clue how to generate leads or increase their digital presence. This type of consulting has huge scope for scale and plentiful passive income opportunity.

Cost of Launch
Difficulty Level
Profit Potential

The Digital Agency Specialist

Another one that comes under the lucrative consulting umbrella.

A digital agency is a business that provides digital marketing services to their clients. These agencies usually specialise in a chosen field (to establish their expertise and charge more money).

A typical digital marketing consulting business could be one that helps dentists and chiropractors get more clients through Google Pay-Per-Click. Or one that helps plumbers and carpenters get more clients through Facebook ads.

Specialising in a niche

Specialisation is important. It separates you from the generalist agencies that do everything and appeals to people in your target market way more.

Generalist agencies struggle to produce 10x results for their clients. But by becoming an expert and mastering your niche, you can charge double or even triple what standard agencies do and still 10x profit for your clients.

Expertise is key. And so is the focus on results. Your goal is to make your clients business thrive – to setup proven, reliable systems for acquiring customers.

Most businesses don’t have a predictable way of getting new customers. They just rely on word of mouth referrals. A massive pain point in most industries. Some businesses are even forced to close because they just don’t have the customers.

Offering a solution to this problem is pure gold.

The bottom line

Many businesses struggle to acquire new customers in a predictable fashion. They have no proven process in place.

By providing a predictable solution that works, you can charge thousands per month to each client and build a wildly profitable, scalable consulting business.

Cost of Launch
Difficulty Level
Profit Potential

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By | 2018-07-09T13:53:10+00:00 July 9th, 2018|