Is Passive Income A Myth ?
Today allow me to potentially kill, or at the very least, question the sacred cow of passive income.
I know, I know…….
True passive income is the holy grail of a business owner…
At least that’s what every snake oil peddler, sorry ‘guru’ tells you when they try to sell you their magic money buttons that don’t really work…
But for reasons that I am going to talk about below, I believe passive income is far overrated and even misunderstood.
The truth is that very few business owners ever get to the point where they have true passive income.
Because true passive income is never once lifting a finger, sending an email, paying a bill, interviewing an employee, or doing literally anything…
And still getting paid.
This is far from any reality that the majority of people can ever achieve.
I personally still work many hours in my business and enjoy doing so.
Which is why I think about it more now as leveraged income.
Leveraged income is income that comes at a much higher multiple per hour that one could ever reach because of the systems and processes that are put in place to make that happen.
But it’s not 100% passive for me at least and never will be.
So why is passive income overrated?
Because passive income comes and goes.
You could have $10k a month in passive income coming in. But as soon as one client leaves or a successful product fails, (which is inevitable), that number will go down.
So you have to go back out there and do more work to get more passive income.
Like I said, passive income comes and goes.
But when you have new clients consistently onboarding, or a steady stream of products entering your business, you won’t have to worry about it moving forward, but it will involve work of some description.
