The Myth of Passive Income Instead start a business to earn money
Whenever I hear passive income, my blood starts to boil.
And it is not because I don’t believe that there are people who have managed to create assets which generate money without direct input of hours.
The problem I have with Passive income is more or less its definition, but moreover the perception people have of it.
You see when most people talk about passive income, they have this childlike view of what it is:
A giant pot of money at the end of a rainbow, which solves all their worldly woes…
And the definition: ”Passive Income”, doesn’t help either.
Because it suggests to people that it is easy money and we all know, there is no such thing.
Therefore they should call it scalable income.
Simply because that’s what it is.
People who don’t own a business, often make their money by trading their time for said money.
And with that money, they pay their bills and hopefully have something left to do something fun.
There is nothing wrong with making a living like this, but there is a problem with it:
It’s not scalable.
You work 8 hours, you get paid based on those 8 hours.
And at best you can stretch it to 10 or 11 hours, but if you do that for too long, you’ll burn out and work 0 hours for the time to come.
However if you start a business, like for instance a private label product or maybe just arbitrage, you can scale your income.
Simply because the income isn’t directly dependent on the amount of hours you put in anymore.
This is what a lot of people call Passive income.
Sadly when people talk about setting up passive income streams they often highlight the good parts.
They don’t tell you, that especially in the beginning you have to work harder than you ever worked before.
Not in the least because it is something most people have to do, after they have come home from work.
And although there are examples from people who have managed to pull through, most don’t.
Then what to do?
I would say you should start with arbitrage on Amazon as it can be done in 1 or 2 hours, you learn the Amazon ecosystem and make money as you go.
I have nothing against any of the other secondary income streams, like private label and affiliate marketing.
But they do require capital and a lot of your time and it may take a year or years, before you see any result.
With Arbitrage you can build capital and essentially spend 1 or 2 hours a day.
Once you have some capital going, you’ll be able to work less at your current job, or quit altogether.
This will allow you the time to learn marketing and other skills, so that you can start a business for real.