The Passive Income Myth.
Ahhhhh, the elusive passive income. The state of nirvana everyone is chasing – where we do absolutely no work, sip Gin Tonic on a beach somewhere in Bali, and the kachingggs keep rolling in.
You see the term passive income being thrown around a lot in the online business world, but does it exist? Is it true that you don’t have to work to make money?
The answer is Yes and No.
Passive income is any stream of income in your business where you’re not trading dollars for hours, and instead you’re creating some kind of content once and selling it over and over again.
So the work still has to happen!!
Sometimes that work happens when you’re making zero money and sometimes the money happens while you’re doing zero work.
So yes, passive income does exist but in the beginning there is quite a bit of work. And even after you’re “done" and it switches from “active” to “passive” mode, there is still the occasional “maintenance” work to keep everything running smoothly and consistently. You need to stay “active” for the “passive” to happen. Yes, it sounds oxymoronic. But you’re smart and you know this world is full of happy ironies!
This stream of income is great for adding recurring revenue to your business which can eventually run on autopilot with minimal maintenance. This will allow you to focus on other aspects of running your business (such as creating new products = new streams!).
You will want to create as many of these passive income streams as possible, no matter how itsy bitsy teeny weeny they are. Imagine each one as a little stream which eventually converges into one huge river. It all adds up.
Say Gin tonic!
You become financially free when your passive income exceeds your expenses.
Now that you're all stoked and want a piece of the passive income and big river rafting action, what's next? Check out my next article on Digital Products and the Advantages + Disadvantages (I'm all about full disclosure and brutal honesty!) of creating and selling them.
“Best thing since luncheon meat + egg sandwich!”
- Dan's Grandma
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