Passive Income Doesn't Exist (Here's What to Do Instead)
Episode 590: Show Notes
We recently brought in an amazing cohort of clients inside of the incubator. Throughout that process we’ve read hundreds of applications, and there are two sentences that we found as a recurring theme and desire within these applications which we really want to respond to. We’ve got a lot to say on this topic, and we feel very passionately about it, so get ready for the rant! People have this elusive idea that they want to earn a passive income. In other words, they want to earn money in their sleep.
There is a version of this that does exist, and we’ll happily share that with you, but passive income isn’t what you think it is. If you believe that if you’re not chasing passive income then you’re doing business wrong, you need to listen to this. The way passive income is framed in the online industry is toxic, and can cause you to miss out on so many great opportunities. We know that passive income sounds like a perfect scenario, but today you’ll hear why it’s really not all that it’s cracked up to be!
The Work Behind the Scenes of a “Passive Income” Stream
Marketing that promotes passive income as the only way to make six figures is laced with so much misunderstanding about the resources that a person has. Getting to the point where you’re earning a passive income takes a lot of money, time, and support, and what too many marketers assume when they push the passive income narrative is that the people who they are talking to have access to all of these resources. And that’s simply not true! People who want passive income usually either want to sell a digital product, a course of some kind, or a membership. When a business like that is running perfectly, it’s very expensive, and most people don’t have the luxury of putting every dime they’re earning back into their business because they’re starting a business in order to make money.
How To Get Back Into Alignment With What You Say You Want (For Real)
Most people have a desire to have the financial freedom to choose how they spend their time. That looks different for everyone; while some people want more time with their kids, others may want more time to travel. Before you start building systems geared towards a passive income stream, think about what you really want for your life and what you want to be doing in your business. If you don’t want to do paid ads, or dance on TikTok, that’s okay, but if you’re not going to spend time on marketing, you have to spend more time serving. Think about what you are designed to do as a human. Where do you shine? Where do you impact people? Digital courses aren’t the only way to serve your clients and reach your financial goals. You don’t have to teach what you’re passionate about to everyone you know. You can implement it instead. No matter what the unethical marketers out there are trying to tell you, passive income isn’t as sexy as it looks!
The Only True Way What "Passive Income" Ethically Exists
Passive is defined as accepting or allowing what happens, or what others do, without active responses or resistance. That is not the way to create a business, or grow one. The word passive should not exist in the business world at all! The only truly passive form of income that you can create is where you put money into the stock market, you don’t touch it, don’t even actively manage it, and it grows. You cannot build a business by doing nothing and expecting it to grow on its own. Courses are not passive income, and even if you can’t see it from the consumer side, trust us when we say they require a ton of work!
Dangers of Social Media
Media is completely different to what it once was. It used to be the news outlets and the people with the cameras. Now, everyone is part of the media. We’ve created a world in which we’re heavily influenced by the people we surround ourselves with because we are constantly absorbing their content online. This is great, as long as what we’re subjecting ourselves to is actually helping us get to where we really want to be, and not just sending us down a path that is actually someone else’s dream. Some people on social media want to deceive you, but the majority of the time, the people who are promoting passive income on social media are doing it because they want it for themselves, but that doesn’t mean they necessarily know what that truly means, nor does it mean you have to want the same thing!
Quote This
Before you think about dollar bills, think about what you want your everyday life to look like.
Highlights
The Work Behind the Scenes of a “Passive Income” Stream. [0:04:36]
How To Get Back Into Alignment With What You Say You Want (For Real). [0:10:15]
The Only True Way What "Passive Income" Ethically Exists. [0:29:31]
Dangers of Social Media. [0:32:39]
ON TODAY’S SHOW
Abagail & Emylee
The Strategy Hour Podcast
We help overwhelmed and creative entrepreneurs break down their Oprah-sized dreams to create a functioning command center to tame the chaos of their business. Basically, we think you’re totally bomb diggity, we’re about to uplevel the shiz out of your business.
KEY TOPICS
Strategy, Passive Income, Marketing, Service Based Businesses, Goals, Growth, Social Media
