Is passive income for real? - Ep #12
Jul 14, 2020
If you are currently working your b... off, wouldn't it be nice if money was just flowing in while you were spending time sipping margaritas in the Caribbean?
Today's question is: Is there such a thing as passive income?
In this solo episode, I share how you can create smarter income streams, taking into consideration which tasks are related to each type of income and what it takes to succeed with each.
I am all in favor of complete honesty. For me to showing up authentically, I need to share also the areas where I am not necessarily in alignment with everybody in my industry.
I touched a little bit upon this in the previous episode
where I encouraged you to be clear on your opinions
about your industry, common strategies in your niche, and also about life in general.
Now, today's topic is one of those that can separate waters.
- Some will say you can for sure design a business that will require very little effort and where money will continuously flowing in because you were smart about your products and systems.
- Others will say it's a fallacy. It requires long work weeks and lots of hard work to be a successful entrepreneur and business owner. If you don't want that you should stay in your 9-5 job.
So where do I stand on this matter?
Well, first... we need more nuance here but my overall opinion is, there is no such thing as a passive business.
However, it is possible to incorporate passive income streams in your business system. Let me get back to some ideas of what those are in a minute.
But before you set out on this journey, I want you to think about what makes you happy. Why do you want a business in the first place?
- Do you love to teach, coach, and connect with people?
- Do you just want to not have a job?
- Is your primary driver that you need an income?
- Do you want to help people overcome struggles?
- What kind of impact do you want to have in the world?
- .... that kind of questions
One of the things that I often see entrepreneurs NOT take into account in their business decisions is that any business model and any business initiative implies some set of tasks to be handled - either by you or someone else.
When deciding which income streams you want to aim for, this should be a significant factor because NO income stream is going to provide significant income without certain tasks to be done. And I happen to believe, happy workdays is one of the key ingredients in a happy life.
Maybe you even left your 9-5 for that exact reason?
In this podcast episode, I dive into some of those types of income that are commonly referred to as passive - and what it ACTIVELY requires from you to make them work.
- Affiliate for other courses, tangible products, events, tools, etc.
- Digital courses
- Software or apps
Instead of talking about passive income, I prefer to talk about how you can
- Easily add supplementing income streams - without much effort
- that will not distract you from your primary goals and
- that has a short term or seasonal income potential
- Invest time in creating some significant assets to generate long-tailed income. Books are a great example of that. Signature courses is an example of that. A membership training library is an example of that.
The key takeaway here is to make sure, you have SCALABLE products that will allow you to grow limitless.
And that you consider how you can ensure they have LONG-TERM income potential so you can invest your time in developing something of extraordinary value that will last over time and that you can become known for. Something can keep evolving and create a real spike in your business as well as stability over time - both in terms of reliable income and in terms of how your work-life will unfold.
In conclusion, I suggest you pursue a lifestyle business instead of a passive income business. A business that will give you what you want - on all parameters: financially, practically, that gives you the relationships you want and with the greatest impact in the world.