What is Passive Income? The Truth ABout Passive Income!
According to an article on Investopedia,
Passive income is explained as earnings derived from a rental property, limited partnership or some shared investments, usually the partner is not directly involved in order to have income flow to his/her bank account.
In contrast, many people like the idea of not having to work again, to have income doing nothing, to get paid for doing nothing.
I like that idea too! Who doesn’t, right?
Unfortunately it doesn’t exist!
The idea of passive income is a myth and misleading.
Why passive income doesn’t exist?
And what is the truth then?
The truth is, Passive Income Doesn’t exist.
There is No Magic, There is No secret to Financial Success whether it’s online or traditional Business.
You gotta put the work in…You gotta put the work in. That is the truth!
If you believe passive income exists, I challenge you to ask yourself how the Billionaires in this planet Actively work, Not Passively.
Think about the wealthiest people in this planet,
Jeff Bezos (Amazon), Warren Buffett, Bill Gates, Elon Musk, Mark Zuckerberg, they have something in common, they are Actively involved in Their investment and in their Business.
However, the biggest difference is, in most profitable businesses, you will continue to generate income for the work you put in the past.
Digital Marketing is the best example.
If you are a person who likes watching a video version of this content, please click this link here so you don’t have to read the entire post.
From the four core digital marketing models, Affiliate marketing gives you the possibility of “Leveraged Income”.
In other words, you create evergreen contents and publish them on the internet, then as you get “active traffic” coming into your content site, you continue to earn commission as long as your channel or your website is active.
There has to be some activities around your great contents that attracts consumers and make them buy your products, or
In monthly or yearly subscription, the subscriber has to keep the subscription for you to earn “recurring income”.
Another example, in a real estate investment, or in rental car business you have to be actively involved in your business. You don’t have to put lots of effort but you or your employees have to put continuous effort in order to grow your return on investment.
Therefore, I argue that the concept of Passive Income is Misleading, and it is wrong.
Instead, the concept of “Leveraged Income” is more accurate in any business model. I learned this from Dan Lok ( Financial Confidence and High Income Skill Educator).
Leverage technology and set up an autopilot,
Leverage people so they work for you.
Leverage your time to help people and then get a return on your invested time, because time is your greatest asset.
Let the money work for you, don’t work for the money, that is leveraged Income.
Don’t trade your time for money as many professional jobs do like nursing jobs and physicians etc. Leverage your professional skills and let the money continue to come in even in your absence.
The point is, effortless income doesn’t last long.
If you want long term success, have a creative mind set, have meaningful business life, love to continue to make a difference actively in people’s life.
The happiest people on the planet are the people who actively impact the world around them, who actively leverage income.
The happiest the wealthiest people actively look for meaningful success not for effortless success.
What’s your argument in this Passive Income Concept?
Feel free to drop your comment below and share your opinion.
I hope you got some values from this post.
Thank you for stopping by my post.
Peace, Health & Prosperity!