The Passive Income Illusion: It's Never Truly Passive Unless You're Doing This!
If you've ever read a book on financial freedom, surfed the web for creators discussing entrepreneurship, or read through our blogs. You might already be familiar with the term "passive income."
Passive income is the holy grail, bridging the gap between sitting behind a desk and sipping margaritas on the beach. That said, passive income doesn't just appear out of thin air! It usually starts as an active investment before it evolves into a steady, hands-off revenue stream.
Sure, you can build wealth with active income alone, but having passive income in the mix makes it so much easier and on autopilot.
I made $50 shoveling the driveway today!
As you may already know, active income is money earned directly from your time and effort. This could be from a traditional job, freelancing gigs like writing blogs, shoveling driveways, or even running a business where you're heavily involved in day-to-day operations.
Even if you own rental properties but find yourself dealing with tenants, termites, and toiles, that’s still active income.
The goal of every business owner is to eventually turn their business into a passive income stream as it evolves. But unless you’re an expert in hiring, managing processes, and leading a team, that’s not going to happen unless you’re leveraging technology and platforms like Amazon and e-commerce, for instance.
For Amazon sellers, active income is the beginning phase of getting your store off the ground, what we call “The building phase”.
This means finding the right products, sourcing them, and launching them into the marketplace. In this stage, you're not only the owner of your store but the employee of the month, managing every aspect of the operation.
What’s the biggest downside of active income? It takes time! You must dedicate your time and effort to get paid when earning actively. This is time that could be spent with family, traveling, golfing, you name it!
Why is everyone always talking about passive income?
Passive income is the cream of the crop, icing on the cake, or any other cliché you'd like to use. It's the money that grows in your sleep; it's hands-off and lets you enjoy that beach vacation without worrying about the lights at home going off.
Achieving passive income is the tricky part, but it is certainly possible! With an Amazon store, the transition from active to passive income will come after the initial setup, and once your business gets off the ground, and you’re at a certain income level when it make sense to begin automating some tedious tasks.
Truth to be told, an Amazon / E-commerce business is more passive than any other business by simply opting for Amazon FBA, selling your own brand, and outsourcing the way we and our clients do… The almost-automated way!
“Ok, I get it now. I need to build passive income. But how do I do this?”
The first step is to clearly understand the distinction between active and passive income. The second step is knowing when and how to invest your time and money actively to build passive income. From here, it is a matter of continuing to build and add streams (or to be more specific more products and more brands), eventually leading you to a massive business exit and a hefty payday.
Want to know the secret hack…?
Learn from others! Surround yourself with mentors and entrepreneurs that have already done it themselves. By learning from their experiences and, more importantly, their mistakes, you can avoid them for yourself.
If you’re looking for a place to start, consider reading our book “Almost Automated Income with FBA.”
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