How To Transition From A
Service-Based Business Into Passive Offers Without Losing Momentum…

June 22, 2022

Kimberly Ann Jimenez,
Digital Strategist & Founder

So, here’s the deal…

We love online service-based businesses around here. They require very little capital to get started and they’re one of the most profitable business models that you can run online (which means a faster path to profitability and that’s always nice). 😉

Not to mention, people are used to the service model, and because of that, services can be much easier to sell than say, courses or digital products.

The problem?

Services can often burn you out like nothing else.

They’re also not easy to scale… which is why at least a few times per week we get emails, DM’s, or hear from our community members in The Business Lounge who struggle with the service-based model and are either burnt out or have no idea how to scale beyond 6 figures without compromising the quality of their work.

If this challenge sounds familiar, you are not alone…

(And hey, if this isn’t you, pass it along to a service-based friend, chances are they’re struggling with this very thing and this episode can help!).

In today’s episode, we’re going to break down how to transition from a service-based business into a more passive business model without compromising your work.

And we’ll tackle how to do it the smart way! 

Too often we see service providers going full force to create a passive offer like a course, and work their tail off to launch it, only to get absolute crickets…

I want to avoid that pain for you because I’ve been there and there’s a MUCH better way…

Whether you’ve tried it before, and you’ve failed, or you’re thinking about working on the passive income side of your service-based business, here are four important steps that you need to take as you move forward in that process.

Let’s get into it.

✨ Snag Now: FREE Online Success Path

In this episode, you’ll discover:

  • How do you know if you should transition to more passive offers?
  • When is a good time to think about scaling out?
  • What kind of offers can you create (spoiler alert: you don’t have to only sell courses!)?
  • What do you need to do to make the transition profitable?

How do you know if it’s a good time to transition?

Feeling a bit burned out? 

Starting to attract more clients than you can serve?

Tried the waitlist method but found that clients quickly move on?

It may be time for a scalable move.

Chris and I often find that our service-based clients get so stuck working hard to see clients, it feels like there’s almost no time left over to work on growing the business.

And we’ve 100% been there too. 

Having scaled three service-based businesses in completely different industries, we get it.

So, when you feel like you’ve reached a ceiling with scalability, and you don’t want to bring in a partner or somebody else to expand your practice or expand your service-based business, it may be time to start thinking about passive offers.

Another scenario to consider scaling up in an out-of-the-box way is when you’ve entered into a different stage of life. 

Maybe you’ve recently had a baby and you want to spend as much time as possible raising your kiddo instead of seeing clients or patients (and major kudos! Raising kids the right way is one of the most virtuous, God-given assignments you can ever have). 

Perhaps you’re ready to travel more, or want more free time to spend with your spouse. 

Or maybe it’s something challenging like an illness, or taking care of someone you love.

There’s many different reasons to scale your business beyond the service-model, and all of them are valid. 

But here’s a really important thing that I always tell my clients;

You don’t want to get to a point where you are so burnt out that you don’t have enough energy to build an actual passive service, because nothing is truly passive.

Passive offers still take a lot of energy, a lot of building, and a lot of skill set when it comes to marketing.

So you need to start looking into transitioning when it’s starting to be exhausting.

When is a good time to transition into more passive offers?

 That’s going to depend largely on whether you have the marketing assets to transition smoothly. 

That means: 

Growing a quality email list. 

– Developing a bond with your audience. 

– Building your traffic. 

– Making sure you understand how to sell passive offers online (think lead magnets, landing pages, sales funnels, copywriting, webinars, etc.). 

– Growing an audience on social media.

And if you don’t have these skills dialed in yet, no worries. That’s exactly why we designed The Business Lounge and over 65% of our members sell services too!

Here’s the deal.

You need to know your stuff to start creating courses that transform people’s lives, to start creating a membership that makes an impact and difference, and to transition into a hybrid model, where you’re teaching and training.

Because teaching is something that you earn, it’s NOT something that you just go out, and you read a couple of books and all of a sudden you’re an Expert. 

You need some experience. 

I don’t mean to rid you of confidence or give you more impostor syndrome than you probably already have.

But if you have at least gotten results for 20 to 30 clients if you have a couple of years under your belt, if you have been able to show serious return on people’s investments, then you know what you’re doing, you have a methodology, you have a unique system, you have something of value that you can then transition into a course.

So you’re absolutely ready to start your passive offers like a course, memberships, digital products, etc.

✨Next Level Content Plan: Content Calendar System 2.0✨ 

What kind of offers can you create?

If you are at that point where you have hit burnout, and have hit a scalability ceiling, you can start thinking about things that you can offer.

But, we need to start taking affordable steps. One step ahead of the other. 

Report an Audit, Audio, or Ebook

You can sell an audit like a guided meditation. 

Something simple that you can offer online, that’s like one hour of consulting work. 

And then you deliver that audit for the client, instead of bringing them on on a monthly retainer.

Record an audio series on one of the topics that people keep asking you about, the things that are really popular. 

All of those are highly valuable, even if it’s just a low-cost, kind of introductory offer. That’s still a big win, especially for service-based businesses.


Package up all of your know-how into a workshop that you can deliver live one time, for once a quarter, once a month, something simple that’s a little bit less expensive for people who can’t afford to actually hire you full time. 

Live Bootcamps

This is one of my favorites because you can charge very little and then sell and pitch your services on the Bootcamp to people who aren’t ready to work with you. 

Or you can sell this at admitting to your price, and still, make a killing. 

Hybrid Course or Service

This is something that’s really fun, and you can do this in a variety of ways.

You could have a basic introductory course, something small that you shoot over a weekend and then offer on the back end of that a higher tier where people can have access to you during office hours.

Digital Coaching

Do a Live on Zoom, once a week or once a month and you answer their questions. 

Or you could also do something like a Voxer (Walkie-Talkie App) thread, and answer questions via voice notes back and forth. It’s an awesome way to start transitioning a very time-consuming service into a not-so-time-consuming and delivered digital service.

Build Community

Have a community, like a paid Facebook group, or paid newsletter. 

Yes, it’s a thing. You can charge people for sending them a newsletter with your best insight every single month. 

✨ Snag Now: FREE Online Success Path

What do you need to do to make the transition work?

Here are the things you need to do in order to win:


You need to know your numbers. This is something most people do not even think about. 

You need to know and have a basic idea of what you’re going to price for your offer. 

And from there, you want to look at the time that you would be investing in delivering that product. 


Start thinking about how to get to your audience.

You need to have visibility and to get seen in front of people.

Have your pillar content, and start delivering value every week to the people on your list. 

So start sending emails, start creating content, and you need to start building up that relationship and that authority.

Dive Deeper— Our signature program, The Content Calendar System 2.0 takes you through the entire process of how you actually build an audience, create content consistently, and stay on top of it even when you’re super busy.

So hone your skills, learn how to write a copy, how to create awesome sales pages, learn how to run ads, what type of traffic you need to be attracting, leverage other people’s audiences, and then build a lead list of at least 5000 people.

I know it seems a lot, but trust me, you do not want to just start a membership without having a solid email.


You need to build your audience, build your tribe, and build your community, whether that’s on YouTube, or on Instagram, etc.

Build your core group of people and you want to serve them way before you sell to them.

Business is about two very basic things;

Selling and serving.
Serving and selling.

That’s what business is about. And so those are the two things that you need to do.

✨Next Level Content Plan: Content Calendar System 2.0✨ 


Okay, we have gotten into so many different strategies, we’ve talked about those four key steps that you want to take. 

And I truly hope that it has opened your eyes to the realities that very few people talk about in this space about what it really takes to transition from a service-based business into courses.

And listen, once you do, it is the most freeing thing ever. It gives you time freedom, financial freedom, and limitless scalability. 

We all want that. 

So I love digital products!

And hey, if you’re ready to take your business to the next level, hop on the waitlist to join The Business Lounge, and dive deeper to learn how to start an online business — even if you don’t have money, time, and resources.

And now, I would love to hear from you in the comments or DM me on Instagram @kimannjimenez.

What’s your biggest insight or takeaway from today’s episode?
And most importantly, how can you put it into action right now?

Kim ❤️

Join The Business Lounge!

Master Online Marketing, Turn Followers Into Buyers, & Increase Your Income…  
(All without feeling confused + overwhelmed trying
to figure out what to work on next).