So many young people I meet are jaded with this idea of passive income being the answer to everything they want in life.
They have this notion that passive income will open the magical door to the world where nobody has to work for a living.
Don’t get me wrong: it is possible, and the vast majority of this world’s most successful people have at least one source of passive income. But it doesn’t mean they didn’t work their ass off to build the systems and the knowledge to be able to make that income.
Usually, it comes in a form of:
- Shareholder dividends. After building and optimizing businesses to a point of “automation”, company owners sometimes choose to distance themselves from direct management, taking a more passive role of a “spectating shareholder.” When the company grows due to good management, their share grows—hence, passive income, besides the dividends.
- Pure money investment. For people who are able to invest significant amounts of money, investment can become a major source of income eventually. Whether it’s real estate, the stock market or horse betting—if you’re good at foreseeing stuff and helping people succeed, you will make “passive income” off investment.
- Smart success-based agreements. Good service providers charge for their services; best service providers charge for success. When a major milestone is achieved, the work has already been done—hence, passive income.
- Network-based income. People who know a lot of people and have their trust are able to make money purely by connecting the supply and demand dots within their social circles. Finder’s fee is a very common—and, sometimes—a very profitable source of “passive income.”
But that’s not what you mean by passive income, right? You just want to play some ads on Facebook and move to Bali…
You might have noticed the common theme between all of these types of passive income. They require you to work your ass off before that income is even possible. No free cheese.
Even making your sales funnels work will require significant money and time investment, without any guarantee you’ll succeed.
“Passive income” the way it is understood right now is a myth.
Stay hungry and keep grinding.