Creating passive Income and the BIG MYTH

Passive income is when you can make money without having to trade your time to earn that income. You don’t have to show up to work and clock in for it, you don’t have to manage other people to make sure they provide a service so you can earn the income.  

Creating passive income in our opinion, is the best way to make money because at the end of the day, it’s not about how much money you make, it’s about how you make the money. Do you trade your time to earn the money or do you make the money in your sleep?

Owning a business is not necessarily a passive approach

One of the biggest misperceptions that people have about starting and owning a business is that people tend to think that just because they own a business they have more time to do whatever they want and the money just magically appears.  This is a MYTH and let us explain why. Let’s say you create a business and it’s a brick and mortar retail store in a specific niche market place.

As the business owner, the owner still has bills that must be paid such as electric bills, rent for the store location, employee salaries, water and trash bills ect.  In this example, if the owner doesn’t show up to work or doesn’t have employees to work at the physical store then the business does not make any money.

This is what we refer to as the business owning the business owner.  There is nothing passive about this business model for earning income.  It’s this fact alone that separates investors from business owners.

The big difference between investors and business owners

Investors take a passive approach and look for their money to earn more money for them in their sleep. They look for a return on their money over time.

This is not to say that business owners are at a disadvantage because business owners can create a business model that revolves around creating passive income as well.  

From our experience however, the best approach is when you can combine both, a business model that creates passive income and invests the money that has been earned.

Our Passive Income formula

Since the birth of the internet we have seen many businesses flourish online. Just look at all the digital products that have been created by individuals through the years and sold strictly online with no overhead costs or shipping costs.  

We now have the opportunity to generate passive income online by creating E-commerce stores through websites like Shopify and create partnerships with other companies and promote and sell their products. We can go online and become E-Bay and Amazon sellers to earn income. The potential is huge for everyday people to build their dreams and make them a reality with very little overhead.  

So, what about passive income streams and how does that fit in with E-Bay Sellers or Amazon sellers? What does this have to do with creating passive income online, building an E-commerce site takes work right?  

The answer is yes but here is where things get interesting and where going online for business creates passive income.  Let’s say you build a website for your business and you are selling shoes. You build it up over time adding pages to the website, spending money on Advertising and marketing.  After 3 months of doing this you make your first sell on some shoes.

You keep doing this for another couple weeks and now you have sold 6 pairs of shoes. Now you are getting excited and continue marketing and adding content to your site. You keep doing this over and over until one day you are selling 6 pairs of shoes a day or even 10 pairs of shoes a day.

These type of results might be 6 months in, it might be a year from the day you start. The time frame can depend on many variables such as how much work you put in up front, if your niche is even a profitable niche or too saturated, how much you are spending on advertising versus the price of your product you are selling.   

The point here is that you aren’t having to drive to work, clock in and sell these shoes at a brick and mortar store that isn’t yours to begin with.  You don’t have a cap limit on how much income you can earn because you are not an employee, you are now a business owner. You put in the work on the front end once and reap the rewards on the back end of your efforts for as long as your site stays up and you occasionally stay on top of new trends, changes to the internet etc.  So, is it 100% passive? NO because you have to do some work up front to get the passive income started and this is why we say that earning passive income 100% of the time doing NOTHING is a MYTH. 

The good news is that once you accept this hard cold truth, over time the work up front that you do becomes passive and once the income is coming in passively, you have very little overhead hopefully which allows you to have CASH FLOW.  What we do is take the passive income that our business generates and create more passive income with it. How do we do this? By reinvesting in other assets and companies with the passive income the business created.

Conclusion

Look anyone that tells you that it doesn’t require any work to make money is full of it.  It’s just not possible to magically make money without doing any work.  When people ask us how to make a passive income online we tell them it really comes down to perseverance. 

You just have to START!  Build a business, invest and learn from your mistakes and move forward.  Don’t give up it takes time so be patient with yourself. 

This also goes for the experience we have with investing in the stock market as well. We have to take time to research our investments , read charts and look at the tax implications.  Then we have to decide what our strategy is going to be for getting in and getting out of the investment with a return.

All of this requires work. What we are showing you is a way to earn income with the least amount of work possible with the highest reward for doing so.  If you can do this and set up multiple streams of income that generate profits after you have done the work, then you can get in a position where almost 100% of your income you make, is passive income.  First you have to START with one thing or stream and once you get that asset to generate passive income then you can move to the next asset. 

If you want to know more about passive income or any other strategy we use or just want more knowledge on investing and the products you can use online to help you be successful, then SUBSCRIBE to our email list on the top right side of the screen.  You will receive the latest content that we put out and you will be the first to get that knowledge that can change your life for the better if you apply it.