Strategy Hour | Online Marketing for Business Growth
Episode 966: Can I Really Replace My 1:1 Income with Courses or Digital Products?
Release Date: July 3, 2025
Host: Abagail Pumphrey, CEO of Boss Project
Podcast Description: A twice-weekly show offering proven business strategies, expert interviews, and practical advice for growing an online business. Recognized by INC & Forbes as one of the best podcasts for entrepreneurs.
1. Introduction
In Episode 966 of the Strategy Hour, hosted by Abagail Pumphrey, the discussion centers on a pivotal question for online entrepreneurs: Can I really replace my 1:1 income with courses or digital products? Pumphrey delves into her personal journey, the challenges of transitioning from one-on-one services to scalable digital offerings, and provides actionable insights for listeners considering a similar shift.
2. Abagail’s Personal Transition from 1:1 Services to Digital Products
Abagail shares her personal story of transitioning from running a service-based agency to creating digital products and online courses. This shift was catalyzed by a life-altering event—a five-car collision—that underscored the unsustainable nature of her then-business model, which was heavily reliant on her direct involvement.
“The business I had built, the one that was really reliant on me ultimately was not sustainable.” [04:20]
Initially, Abagail planned a gradual transition. However, circumstances forced a more abrupt change, leading her to pivot swiftly to digital offerings. Despite the rocky start, this move ultimately provided her with greater freedom and scalability.
3. Challenges of Replacing 1:1 Income
Replacing 100% of one-on-one income with digital products is not straightforward. Abagail emphasizes that:
- Income Diversification is Key: Currently, digital products and courses constitute 40-50% of her income, with the remaining income sourced from brand partnerships, podcast sponsorships, minor one-on-one work, and affiliate marketing.
“Digital products and courses are not 100% of my income now. I make income from a variety of ways and I like having the diversification.” [12:45]
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Sustainability Concerns: Relying solely on digital products can be precarious. Abagail notes periods of both high success and significant downturns, highlighting the volatility inherent in this model.
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Asynchronous Business Model: While digital products offer scalability, Abagail's business still requires her active involvement in certain areas, such as managing brand partnerships and creating content for her podcast.
4. Diversification of Income Streams
Abagail advocates for a multi-faceted income approach to ensure stability and growth. Key components include:
- Brand Partnerships and Sponsorships: Leveraging relationships with other businesses to generate consistent revenue.
- Consulting and Coaching: Maintaining a limited number of high-value clients on a consulting or coaching basis.
- Affiliate Marketing: Promoting relevant products and services to her audience to earn commissions.
“Most people who are ultimately the most successful are not rinsing and repeating someone else's strategy. They might use that to get a leg up in one area, but they're following their intuition in a thousand other ways.” [32:10]
5. Marketing vs. Educational Skills
Transitioning from a service-based to a product-based business shifts the entrepreneur’s focus from service fulfillment to marketing. Abagail emphasizes:
- Marketing Skills are Crucial: Unlike one-on-one services, digital products require robust marketing strategies to attract and convert customers.
- Balancing Education and Marketing: Successful digital product creators blend genuine educational value with effective marketing.
“A lot of the people that you see doing well in this industry are great marketers, but they're not necessarily great educators. I would love to see more people who are genuinely interested in creating impact.” [24:50]
6. The Numbers Game: Understanding Income Goals
Replacing one-on-one income with digital products is fundamentally a numbers game. Abagail advises entrepreneurs to:
- Calculate Required Sales: Understand how many units of a product need to be sold to meet financial goals.
- Assess Audience Size and Engagement: Gauge whether the existing audience can support the desired income levels or if audience growth is necessary.
“If you sell a product for X, how many do you have to sell to hit the amount of income necessary to cover your expenses to pay for your life?” [16:05]
7. Audience Considerations
The size and engagement level of an entrepreneur’s audience significantly impact the feasibility of replacing one-on-one income with digital products.
- Existing Engaged Audience: Entrepreneurs with a dedicated and active audience are better positioned to successfully transition.
- Growing a New Audience: Those with smaller or less engaged audiences may need to invest time in audience-building to achieve their income goals.
“If you have an existing audience that is just ripe and ready and wants something from you, then this may be like a total no brainer.” [17:10]
8. Strategic Offer Creation
Developing a suite of interconnected offers can enhance income stability and growth. Abagail suggests:
- Create Multiple Offers: Develop various products that serve different needs or stages of the customer journey.
- Sequential Offers: Design offers that naturally lead customers to higher-value products over time.
- Avoid Overloading: Introduce new products gradually to avoid confusing the audience and to better assess their needs.
“Imagine you have a string of connected offers that feel like very obvious next steps for people. Now some people will buy all three or four things.” [18:45]
9. Mindset and Adaptability
A crucial element in successfully transitioning to digital products is maintaining the right mindset. Abagail emphasizes:
- Belief in One’s Ability: Confidence and belief in the potential for success are foundational.
- Flexibility: Being willing to adjust strategies and offerings based on performance and feedback.
- Resilience: Understanding that setbacks are part of the journey and maintaining the drive to overcome them.
“You can enjoy it. You can have fun. You can do new things. You can be creative, you can make a real difference in people's lives.” [35:50]
10. Conclusion and Final Thoughts
Abagail concludes by reinforcing the possibility of replacing one-on-one income with digital products, while acknowledging the challenges and efforts required. She encourages entrepreneurs to:
- Take Incremental Steps: Gradually transition and diversify income streams to manage risks.
- Focus on Value and Impact: Prioritize creating genuine value for the audience to foster loyalty and long-term success.
- Maintain a Positive Mindset: Confidence and adaptability are key to navigating the complexities of this transition.
“Everything in business, for the most part, a large part, you can flip on and flip off. You can start over, you can try new things. Nothing is forever.” [36:50]
Key Takeaways
- Diversify Income Streams: Relying solely on digital products can be risky; combining multiple revenue sources ensures stability.
- Master Marketing: Shifting from service fulfillment to effective marketing is essential for success in a product-based business.
- Understand the Numbers: Clear financial goals and understanding required sales volumes are crucial.
- Build and Engage Your Audience: A strong, engaged audience can significantly enhance the success of digital products.
- Maintain Flexibility and a Positive Mindset: Adaptability and resilience are vital in navigating the transition and overcoming challenges.
Resources Mentioned:
- Free Resources & Show Notes: bossproject.com/podcast
- Mindset Reset Workshops: Available inside the Co Op on bossproject.com
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This comprehensive summary captures the essence of Episode 966, providing valuable insights for entrepreneurs contemplating the shift from one-on-one services to scalable digital products and courses.