![]() Keep pushing, though, and eventually, the ball picks up momentum. Getting the ball rolling takes a lot of energy, and you’re only paid off with a little motion. Imagine you are rolling a weighted ball across the floor. Here’s a fantastic analogy from Megan Holstein that describes this reality of passive income: And the potential income to be earned (only if those first two steps are accomplished).The ongoing work required to sustain its momentum.The investment needed to get their idea off the ground.Would it make you more money for less effort if you simply get paid directly for that work? That’s the big question, and all too often people get suckered into the dream of passive riches without enough validation and concrete projection of: It sounds just like running any other business. You created a shitty machine - what a waste of all that time. ![]() Improve your machine to keep it desirable.Īnd that’s all assuming you did the initial research to determine if what you’re creating has value and market fit - otherwise, you’ll be trying to make passive income off something nobody even wants. You may have to constantly update your “passive” product to keep pace with new technologies, ideas, or customer demands. ![]() Help people use your machine, especially when it doesn’t work as intended. You may have to provide support to your customers. ![]() Learn how to build, and constantly maintain your machine and the ecosystem that supports it. You may have to learn new technologies to make those sales happen, or invest in new tools. You have to keep getting new people interested in your machine or nobody uses it. Next, you have to market and sell that product over and over again otherwise it stops earning you money. What they forget to tell you is that even after the initial investment to build your machine - write your book, build your product, or whatever else you plan on selling - the work has just begun. Once the machine is built, press the big green on button and income starts streaming in. Passive income gurus like to describe it as building a money machine. When people say “passive income” they usually mean “leveraged income” or “residual income”, which means taking a risk and paying a large price up-front (in terms of time, effort, or money) with the hope of reaping disproportionately large ongoing rewards down the road. Megan Holstein Passive income is really “leveraged income” “If passive income is a weighted ball, a traditional job is a weighted cube. You can work up-front as an investment into your business (passive income), or you can do the work as it comes in exchange for a paycheck (active income), but no matter what, you have to do the work. Some people think of property investment as passive income, but have you ever heard a property that requires no maintenance and finds its own tenants? But even then, it takes time and accumulated knowledge to choose the right investments to make, not to mention the work required to earn the capital used to invest. Unless the “passive income” comes from a truly passive investment source like stocks or bonds. All income comes from some form of work, the difference is simply when you put in the bulk of that effort - before, during, or after the income. There is no such thing as passive income because there’s no such thing as a passive business. Passive Income Is a Lie - Build Passion Income InsteadĪll businesses require work, but you can decide what kind of work and when to do it.
0 Comments
Leave a Reply. |