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Do you know anyone that owns a pool table? Most people do. But, do they earn a passive income with a pool table? There might be a few less nods in response to that question. You might as, “How in the world could someone make a passive income with their pool table?” Well, let’s dig into it!

If you are serious about starting your pool table business visit our friends at The Pool Hall Business Plan, they have an amazing business plan, as well as consulting information.

Pool Table Income, One Coin at a Time

How to start a business with pool tables: In order to make money with a pool table, you’re obviously not going to do it by charging your buddies a buck every time they rack ’em up in your basement (although, I guess you could….but you probably wouldn’t be too popular), so you can rule that option out.

I’m also not talking about hustling your earnings by winning game after game of billiards at the pool hall. This is certainly not passive, and I’m also not sure that it’s even legal.

When I talk about earning a passive income with pool tables, I’m talking about those lovely coin operated pool tables that we’ve all seen. They only earn one dollar at a time, but have you ever thought about how many games of pool are played each day? And, how short is the return on investment for the owner?

Expenses of the Pool Table

In order to make money with a pool table, you’ll obviously have to own one. So, I searched eBay, and I was able to find a used coin-operated table for only $1,200!

There might be the occasional maintenance on the table as well, so let’s just factor in another $200 per table, per year.

Oh, and if you want to make this venture truly passive, you’ll have to hire a guy to collect the money each week. You’ll pay him $20 per pick-up, so you’re paying out $1,040 per year.

Potential Income of the Pool Table

Initially, you might be thinking that this idea doesn’t have much room for growth. After all, where are all the coin operated pool tables? Just at the bar, right? Not true. Just off the top of my head, I can recall there being pool tables in hotels, restaurants, college campuses, and even workplaces as well! The opportunities are out there, you just have to get your table into their establishments.

Now, once you find a place where a pool table might earn some income, what is the typical arrangement? Well, some of the time, you might have to pay a monthly rental fee in order to place your pool table on the owner’s property, but I’d say that most of the time, you could place your tables almost anywhere for free because it’s a win-win situation. Think about it – if your pool table goes into a restaurant/bar, it will most likely draw more of a crowd, plus it will encourage the customer to stay longer and keep ordering food and drinks. That pool table is going to earn the establishment more money, and every game that’s played will put another dollar into your pocket as well.

Depending on where you place the table, you could have anywhere from 5 plays to 40 plays per day, so we’ll use a nice round number and say that your table earns $20 per day with 20 plays.

• $20 x 365 days = $7,300

Are We Turning a Profit With This Passive Income?

If we were able to place just one table and paid no rent for it, how much would we make per year?

• Income = $7,300
• Initial Expense = $1,200
• Maintenance = $200
• Employment = $1,040
• Net Earnings in Year 1 = $4,860

In Year 1, you can see that we earned $4,860 of pure profit and we didn’t have to lift a finger. That’s pretty impressive huh? Well, what if we took it one step further and invested our profits into 4 new tables?

Suddenly, our earnings jump from $4,860 in Year 1 to $30,300 (=(Income – Maint. – Employment) x 5 Total Tables) in Year 2! Want to see what happens if we reinvest everything back into more tables in Year 3? $181,800!!! Obviously, life couldn’t be so perfect, and there is such a thing as saturation, but I think you would agree that it has amazing potential.

Do you think you’ll ever invest in coin operated pool tables? Why or why not?

I don’t know about you, but I think about passive income opportunities every day. No matter where I am or what I’m doing, I think, “How passive is the income that’s generated in this business?” Sometimes, it’s not at all, and other times, it’s nearly 100% passive. The concept just fascinates me – I think that I’m obsessed with creating a passive income.  That’s why I thought of passive income with a car wash.

Cleaning That Car of Yours

I live in Michigan and it usually gets pretty chilly here in the winter. The snow starts flying in November and doesn’t go away completely until March or April (this year is an exception, but I’m sure we’ll get loaded up with snow pretty soon). And, since it is so cold, the only way to get rid of the snow and ice is with salt.


The salt typically does a great job melting away the snow, but it’s absolutely terrible for your automobile. If you avoid getting your car washed, that salt will start to break down the structure of your metallic frame and body. Then before you know it, your car starts turning into a rust-bucket! Then you step on that salt and bring it onto your floorboard. Without the proper floor mats, your floorboard will start to rip apart. Needless to say, where I’m from, car washes are pretty important.

Benefits of a Car Wash

Car washes are typically very passive. Once the machine is set up, all you need is a single employee to receive the payments and begin the wash (and actually, I can see this step getting automated soon as well). If your machines are built properly, there won’t be a huge amount of repairs, and your expenses are pretty low (water, electricity, soap, and…that’s about it)! This sounds like a money-making machine!

Initial Cost of a Car Wash

Initially, I started researching what it took to build a brand new car wash, and honestly, I don’t think it’s worth it. You’ll first need to find that perfect plot of land, then check the zoning, then you need to get a building permit, hire an engineer to make some drawings, contract a company to build the car wash, and then there’s absolutely no guarantee that it will make money because no one has tried to run a car wash in that location before!

The typical initial expense of a new wash can be anywhere from $400,000 to 2,000,000, depending on the number of automatic washes, and the number of bays if you’re running a self-serve wash.

If I were to invest in making a passive income from a car wash, I would start looking at the existing washes that are for sale. Then I know that the zoning is correct, I don’t need to hire an engineer or a contractor, and the best part is, I can look at the history of the business! The owner can show me the average washes per day, week, month, and the year. And, I can get a good look at the expenses!  Be weary of the previous owners income and reporting however, this is a cash heavy business and it would be very easy to skew your numbers.  You need to hire a CPA and sit down and go through all of the financials piece by piece so you can make an informed decision and also to start your business on the correct foot.

I looked into the average initial cost of the washes in my area and they ranged  between $259,000 and $1,200,000.

Recurring Costs of a Car Wash

After a little research, I have found that the average reoccurring expense is provided per car that goes through the wash – it’s typically $0.55 per car. This includes things like the water, soap, and electricity like I mentioned above, but it also takes into consideration the air compressors, the bay cleaning, and preventative maintenance.

If you really want to know how to start a car wash from the ground up here is a book on amazon which would be perfect:Car Wash Business 101: The #1 Car Wash Start-up Guide

How Many Cars For a Profit?

In order to create a profitable passive income with a car wash, about how many cars do you think you’ll need to pass through your wash per day?

Let’s say you have a $500,000 loan on your business which costs $4,683 per month and you run the business by yourself. For each wash, you charge $7, how many cars do you need to run through your wash to make it profitable passive income with a car wash (wow, feels like we’re in algebra all over again huh??)?

To break even in the car-wash business, you would need to have 727 cars go through your wash each month. That sounds like a lot at first, but when you break it down, that’s only one car per hour!

What if you could run an average of 4 cars through your wash per hour? You’d bring in a profit of $18,576 per month! That’s $223,000 per year! If you find the right location, this venture could easily be one of the best passive income sources out there!

This may sound great and all but there are pitfalls to the business as well:

1. You are at the mercy of the water company.  Remember water companies don’t look at individual businesses when they create their rates, they look at an entire city.  If the water company passes a bill to raise their rates over the next 3 years, your operating expenses will immediately raise and your passive income from a car wash will lower
2. Repairs and replacements of equipment can put a huge dent in the net profit for the business for the year.  Think if you only have one car wash creating a passive income.  You’re business is closed until you can get it repaired or worst case scenario which could close your business for one to two months.
3. Who and how is going to manage your passive income from the car wash?  Are you going to go to the business every day and pick up the coins or dollar bills, count them, and deposit them?  Will you hire someone to actually pick everything up for you?  Think about how long you would have to count money every single day you had to make a deposit?  $5,000 doesn’t seem like a lot until you are counting it in quarters.  Will you start a system which accepts credit cards and then you now have a service charge every time a card is used.

Investing is Not Just for Econ Nerds

Investing is exciting and fun stuff. All you non-finance people, who just threw up in your mouths a little, that’s okay. Hear me out here. The whole scenario sounds intimidating, but it’s not. You find a company, like ScotTrade, or something like that, that handles investments, do a little internet research to find out what companies you want to invest in, and voila, you are on your way. Make sure you follow the buying and selling rules below, and you’ll be set. You can make a nice, tidy passive income while the stocks rise and fall.

The Buy In

You don’t have to be an Econ genius to understand basic market tendencies. It pretty much sums up like this: you, yourself, are a consumer. That makes you part of the market trends, you make little financial votes every day for companies that you believe in, just by walking in and buying something, you’re making a vote that those particular companies should go on living, and perhaps even grow. Take that principle and apply it across the spectrum of the world of businesses. If you’re a consumer, you have a little insight into what will make the market tick. If you stay up-to-date with new things, then when something uncannily wondrous crosses your path, you’ll notice it. And those are the things that are tomorrow’s best and brightest big ideas.

Take, for example, frozen yogurt. A humble food, but oh-so-tasty, it has had a hay-day with the market of late. Self-serve frozen yogurt places are popping up everywhere, and they’re cramming out the old fad: smoothies. Read this as an opportunity to garner a little extra cash for whatever suits your fancy.  Invest in companies you love anyway, then take the money that sat there and earned itself for you, and spend it on products at that company. Brilliant.

Your opinions are part of the market, so amplify them. If you like something, chances are that others do, too. Watch social media posts to see what people are talking about. It may sound over-simple, and maybe it is, but it works. Find things that seem to be beginning to trend (beginning being a key word) and invest when the ideas are just launching. With any luck, you’ll catch something on a big rise and win. It’s like playing the lottery, but with a treasure map of your own behavior and patterns to guide you to the winning ticket.

The only problem is that investing is a little addicting. Okay, a lot addicting. So, you’re gonna want to budget for it, make room for a little investing each month, and watch the money grow. I have gone from wanting one pair of shoes to wanting a shoe closet to hold my shoes. Keep in mind that the market is unpredictable. Investing doesn’t make you money on your time frame, so you can’t save up for things specifically. The market controls when you buy, sell, and put the money to use. It’s a blast to have money that works for you, and it generates an income for you while you work your 9-5.

Buy Low, Sell High

Sounds like some REALLY obvious advice, but it’s not so straightforward. When you get into the market, you will inevitably find yourself doing what most people do. You will also find out what makes the stock market a successful place for just a few people. This happens because the majority respond to inner psychology rather than reading the market and letting it tell them when to buy and sell.

When stocks rise, there’s this psychological tendency we have to think it’s going to go higher, so some people buy things because they’re “trending” and others hold onto investments until they actually can’t go any higher, and they start to sink. When they sink, we think they’re gonna drop further, so we sell. That would be called buying high and selling low, which is also known as losing money. Don’t do this. Think counter-intuitively. If it seems wrong, chances are, it could be very right in the stock market game. A few people get it right. They sell when their brains say to wait, and they buy when things don’t look good.

No one who’s walking around loaded with cash from the boom of Apple computers bought the initial investment when the company was already enormous. The people who made it big off of the rapid growth of a company found something that they thought could be big one day, and they took a chance on it. So, look for niche businesses that are heading in the right direction and invest. Start small. Learn how the market works with a little money at a time, and when you get good at it, you’ll start making a bigger and bigger passive income as you go.

Yes, investing in the global economy is a risky and somewhat depressing venture, but if you get out there and try your hand at it, you might find that this is the kind of passive income you’ve dreamt of making.

What are your thoughts? Share your investing stories with us!

In September of 2017, economist, El Erian pegged the Bitcoin price at a staggering $1, 300—a third of its present mark. In recent months, it hit a high of $3, 875—hardly a meagre number for investors, let alone buyers looking to fill their virtual shopping carts. Cryptocurrencies are here to stay, and if you have a head for computational puzzles and an internet connection, you could hammer together a decent portfolio.

Your Tools

• To mine Bitcoins, you’ll have to purchase the hardware. In the past, you could use your desktop, but today, only custom Bitcoin ASIC chips have enough power efficiency to generate genuine returns.
• Alternatively, you can use a cloud mining contract like Genesis Mining, which offers extra bells and whistles such as promotional codes and upgrades.
• Software such as CGminer and BFGminer connect miners to a blockchain or mining pool. Choose one that provides analytics so that you can keep track of hashrates and speeds.
• Bitcoin mining pools allow you to work as a group at solving blocks in exchange for shared rewards. While it’s possible to mine alone, it takes significantly longer to earn this way. You could wait a full year before you receive your first payout.
• A Bitcoin wallet will be needed. You’ll be selling and buying Bitcoin, so you’ll also need an exchange. Keep your wallet on a device that lacks an internet connection because anyone who can access it can use your Bitcoins.

Mining

To mine, you’ll need to log into your account, set up an address, and enter it into your mining pool so that your Bitcoin will automatically be moved to your wallet. Once you’ve installed your software and signed in, choose your mining pool. It’s that simple—unless you actually intend on profiting from your venture.

How to Earn Genuine Returns

You will want to monitor the performance of your mining rig, so check your profitability. Much like stock trading, you’ll need to watch projections, market conditions, and the like so that you can buy and sell timeously. You’ll also receive a block reward, which was set at 25 Bitcoin in 2014, about every four years. This is the greatest incentive among most miners, but it diminishes as time marches on.

As with any investment, your security is created by your diversification, but instead of spreading your investments across investment types and regions, you will spread them across a network. Bitcoin mining difficulty is adjusted every two weeks to offset the computational power that’s being dedicated to it. You’re thus looking for a network that’s easy to mine and then moving to a new one as your current one adjusts. Of course, the more miners there are in a network, the smaller your payouts become.

If you’re not part of a pool, the rewards will go to the person who solves the puzzle first. If you have negligible mining power, your odds of receiving worthwhile rewards are insignificant, so your hardware investment has a direct effect on your pocket. Mining pools overcome this issue by splitting rewards evenly and increasing mining power exponentially. Cloud-based offerings overcome it by offering their hardware and power in exchange for a fee. You’re guaranteed uptime if you choose a reputable provider.

Is It Worth It?

Bitcoin mining gives you a relatively passive income, and it’s possible to earn about $2, 000 a year once fees, electricity, and hardware expenses are deducted. Bitcoin can be bought and sold, but online shopping could be more profitable. You can spend your profits on auction sites and at specialized Bitcoin stores.

Any smart entrepreneur wants to know how to expand thinking outside the space of a small business. Small businesses are the backbone of the country’s economy but clever thinking and new ideas can take a small business and grow it into something substantial. A small step that a business can make to grow is to outsource whatever staff responsibilities it can. Many small businesses may not have the financing necessary to support administrative and IT departments. It’s a good idea for a small business to outsource as much as possible and find “virtual assistants” to lighten some of the workload and grow the business.

Think about expanding into other countries. If you have a working website, you can do business in other countries. For the United States, it is easy to expand business into Canada and the United Kingdom. The language is the same. All you need to figure out is payment forms and shipping options.

When deciding how to expand thinking outside the space of small business, it’s important for entrepreneurs to figure out unique solutions to growing their business. Thinking outside the space of a small business can be difficult. A person needs to look for ideas and solutions in places where they usually can’t be found. An important tip is to always be listening. A good businessman knows the next great idea can be found anywhere.

Another smart way to think outside the box is for small businesses to advertise using non-traditional methods. Car decals and bumper stickers can be printed up for a relatively small expense. Best of all, this advertising is mobile and it can move around the city and see a lot of eyes. Premium swag is a good idea to give away at community events. Premium swag is stuff that can be branded with a company’s name and distributed easily. Items such as coffee mugs, pens, and t-shirts are all examples of premium swag that people will end up using repeatedly and thus always see a company’s name.

Thinking outside the box requires a small business owner and his team to think creatively. Inspiration can comes from the most random places so it’s important for a small business owner to always be listening and always be thinking. Every idea that a person comes up with needs to be discussed and thought about. No idea is too small or too far-fetched. A good idea is to have a brainstorming people where team members feel free to discuss any idea they may have. Take meetings outside the office. Playing sports as a company or participating in active team exercises are things that help get the creative juices flowing and allow a company to grow and expand its reach.

Living paycheck to paycheck is not just a malady of the working poor. Those who have higher incomes are often just as guilty. This is because many people spend as much as they earn; when their salaries increase, so does the amount of money they spend every month.

Those living paycheck to paycheck while earning six figures are hard to feel sorry for since it seems there isn’t much of an excuse. Unlike the working poor, who often call upon online installment loans for individuals because they aren’t earning a decent wage, those with cushy salaries but strapped for cash simply need to improve their personal finances. The way to do that is as follows:

Step one is resisting the urge to match lifestyle with earnings dollar for dollar. Just because it’s now possible to buy a bigger house or second car doesn’t mean you should follow through. Stick to going out only one night a week, like you did when you earned much less. The easiest thing to do is simply keep your lifestyle the same despite a boost in income. Take steps to further live below your means and only upgrade when it makes sense.

The next step is to deposit an initial amount in an account that is not easily accessible, such as an online bank. The next step is to examine your bills and find areas where you can save money. Next, develop another means of creating income that you can enjoy so it will not feel like another job. Finally, keep up the momentum, and, before you know it, you will have saved a fair amount of money without changing your lifestyle or feeling deprived in order to do it.

Another alternative is reducing debt by following a few simple techniques. Look around your home and find items that you no longer need or want, and sell them. Yard sales, eBay and Craigslist are popular methods to raise cash. If you receive a tax refund, apply it to your debt. Transfer balances to an interest-free credit card and try to pay it off, or down, during the “no-interest” period. If your children are now self-sufficient, and your spouse can maintain his or her livelihood, consider cashing in your life insurance and applying it to your debt.

Living within your means is still the primary goal once getting finances in order is achieved. There should be enough latitude for you to be comfortable in case of unforeseen circumstances. One of the biggest culprits is the habit of immediate gratification. Easy access to credit traps you into purchasing more than you can reasonably afford.

Set a budget and stick to it. Review it periodically to make sure you are still on track. Pay attention to where your money goes. If you spend haphazardly, you will not be able to see problems on the horizon, and they will overwhelm you before you realize it. Paying in cash helps you stay on budget. This takes a major commitment because it is too easy to pull out a credit card when you are at the point of sale and discover you do not have enough cash. This is a perfect time to ask, “Do I really need or want this?” Be critically aware of the actual cost of charged items. Verbalize how much you are actually paying for the items you charge, even sale items.

The more you earn, the more you spend. Unfortunately, that is an accepted practice in our society. Your personal finances should be paramount in your overall economic plan. Shopping is a landmine to be navigated. Make a list and stick to it, compare prices before buying large ticket items, find areas that you can cut out, or cut down, and resist the urge to splurge as much as possible.

As the economy is constantly fluctuating with the greatest amounts of changes in obligatory government spending, it is becoming more evident that people will be needing to tighten up on their budgets. As a great amount of the nation’s population struggles to consistently make ends meet, there have been experienced tastes of what it feels like to live paycheck to paycheck. In these struggling cases, one may wonder about what measures will be taken in case there is to be an emergency. A family that does not earn enough income to be able to purchase health insurance might find that they are in the most difficult of times in the case of an unfortunate health emergency. Therefore, it is imperative to ensure that individuals and families are constantly working to purchase only what they truly need, while setting aside an emergency fund for the possibilities of the most unexpected events and incidents.

When setting aside a certain amount of money for an emergency fund, the saver must realize that they should only live within their means. Meaning, if the top-earner of a family of four is making $40,000 annually, they should not be worrying about how to make payments on a new edition of an expensive and high-end vehicle. Instead, they should be set with an obligation of making small payments on an economical and inexpensive car, or have already paid off on their new and lower-priced car, or even a lower-priced used car.

As a lower or middle-class earner of income, there should be a practical budgeting plan set for their expenses. A good plan for setting aside a dependable emergency fund would be to save as much money as possible after obligatory living expenses. However, in order to keep one’s sanity while still having the opportunity to enjoy life, they should set aside an amount of expenses their budget for miscellaneous expenses. Miscellaneous expenses can consist of entertainment such as movies, nightclub, parties, or vacation. Even though lower and middle-class earners may not be making as much money as the higher-class earners, it does not mean that they are not working hard. Therefore, they should still treat themselves for the work they do.

Emergency funds may be needed to be used for many reasons aside from accidents or health problems. For example, a college student that had set aside enough money for their textbooks may have thought that the amount they saved was enough, until they realized that the cost is actually much more than they expected. In this case, the emergency fund can be utilized in order to cover the remaining expenses of their textbooks. The same concept can apply to a child’s college tuition expenses. The child’s college funds may have accumulated to a great amount, but with tuition rates increasing, enough may not have been saved as the parents may have thought. In this case, an emergency funding to fall back on would be greatly beneficial.

You see a lot of information out there on how to prevent getting your identity stolen. But what you do when your identity is already stolen? 

The key here is to minimize the damage the negative effects that occur with identity theft – and that means you have to work quickly. You need to contact the appropriate financial agencies as soon as possible so they can freeze your accounts and give you numbers. This will stop the criminal act as soon as possible.
Contact your:
– Credit card company
– Bank
– The three credit bureaus

The Credit Card Company
There are always financial specialists at your bank, who are monitoring your credit card use, they will often notice transactions that are abnormal and not in keeping with your spending habits. In most cases they will notify you by phone. They will call asking if you spend a certain amount of money at a certain store. If you have, then simply confirm expenditure. Otherwise, let them know that you have not made the purchase.By the same token, it’s probably a good idea to call your credit card company if you plan on traveling somewhere.If you do happen to lose your credit card or have it stolen, you should notify your credit card company as soon as possible. Legally, you have 30 days to make this notification.

When you report your card has been stolen you minimize your liability, and at most, you’ll only have a $50 out of pocket expense.

Problems arise when you don’t inform your credit card company of the loss. In this case you would be held responsible for any unauthorized purchase.Close your credit card account and ask them to reissue a new car for you. You’ll also want to use a different password, so that the thief cannot help but feel accounts in your name.

At the Bank
If your debit card for your checks or stolen, there are laws that also protect you. You must report card missing within two days of realizing the loss. If you do this, you will be accountable for up to $50 of the charge.
If you forget to report the card is missing within this allotted time, you can be held accountable for up to $500 of the unauthorized charges, and if you do not report an unauthorized withdrawal within 60 days, there is no limit to the damage you will be held accountable. When you lose your checkbook reported to the bank, close your account and open a new account.

The Three Credit Bureaus
Call up the credit bureaus to check and see if any new accounts are open, or if any charges are made. Call up the company that has reported the information and explain the situation. They will remove this information for you. You can also choose to freeze your reports so no one has access to them while you clear up the fraud.

Law Enforcement Agencies
Most financial institutions require you to file a report with the police agency. This offers a record of the identity theft. It also gives you proof to show when and if unauthorized financial transactions take place after the incident.

There are many different mind frames that are out there for investors. Some tend to look for income generated from their efforts. Others look for capital gains so that they can more control their income tax recognition. Others look for significant opportunities and then invest heavily in these investment opportunities. All different strategies can be ultimately successful and an investor can make money in a variety of different ways. The best strategy for investing depends on your investment horizon and risk tolerance. One additional factor that can go into play is the amount of capital that you have. How you do so will depend somewhat on the investment capital that you have.

If I were to have a million dollars, how I would manage it would fluctuate widely form how I would if I had lower amounts of money. Managing large sums of money is very different than dealing with smaller amounts of money. For one, you have more to lose with larger amounts of capital. Secondly, you have less of a need to make a significant amount of money as you already have a large reserve of capital.

Many turn to capital preservation as a way of investing once they have a large amount of capital. Often this is done through a large allocation of their investment capital towards treasury bonds and corporate bonds which produce a steady amount of income. Many times managers of large sums of money also maintain a large cash holding. The goal with having a large amount of money is often to maintain that capital as opposed to earning lots on it.

While investing for capital preservation is often a good idea for older investors, many younger wealthy investors would only see an erosion of their purchasing power over time due to inflation. A pure capital preservation strategy may be the wrong answer for some of the investors with large capital amounts to handle.

As such, for larger amounts of capital we recommend that investors engage in a dividend growth portfolio by investing primarily in companies that pay dividends that escalate each year. By doing so, there’s a rising stream of dividends that they can move their money around if they do not need this money or can use to support their lifestyle. Companies that have a proven track record of raising dividends typically are reliable companies with wide economic moats that allow them the ability to outperform other businesses.

The benefit of having a large sum of money is that no one idea needs to capture your entire capital balance. Investors can pick and choose between a variety of different methods. Diversification is the key and you don’t want to have too much invested in any one stock. Some wealthy investors even turn to index funds as an vehicle which often paces more actively managed funds.

Managing large amounts of money is challenging, but so is any form of investing. Be sure to diversify with an eye towards capital preservation when you do.

Passive income is income earned regularly without having to put in a lot of effort to maintain it. It’s often used as a seductive term with falsehoods attached, whispered in people’s ears by those who know just how much people want a break from their daily grind. Passive income can help save your finances when practiced correctly, and just a small amount can change your life. However, before people decide to sign up, there’s a lot they have to know about passive income and how it really works.1. No Experience Necessary

This is a half truth at best. While anyone can technically set up websites, sell product and do all the things one needs to do in order to create a passive income, it still requires knowledge of how the markets work. Someone that doesn’t know how to get the word out about what he or she is doing, or who isn’t sure how to build a customer base, simply isn’t going to make any money. Knowledge is power, and experience is king in making a successful income stream.

2. Requires No Work

A passive income stream often requires quite a bit of work to set up, regardless of what a person’s method of choice is. Whether it’s creating a blog, making Youtube videos, writing a book, setting up a Dropshipping website, all of these things will take work. People need content, they have to market it, and in order to keep a fan base they have to maintain what they’ve created, come out with sequels, etc. While the royalties or ad payments might roll in, they don’t do so for nothing. The good news is that the work can definitely be worthwhile if you’re willing to put in the effort for multiple streams of income.

3. Runs ForeverOnce again, there’s no such thing as a perpetual motion machine. Even if someone does get a great income producer set up, like a blog that earns thousands of dollars every month, they can’t just let it sit. Eventually fans will get tired of waiting for updates, or they’ll get bored and income will peter off. While these income streams might be different than those one earns from a day job, they still need to be kept up and added to in order to keep earning money over the long term.

4. Every Entrepreneur is an Island

It sounds simple enough on the face of it; set up a vehicle and make sure to do some weeding to keep it fresh and fun. But that isn’t enough. People have to network with other online entrepreneurs, and make sure they build healthy, reciprocal relationships, in order to really get themselves and their vehicle seen and known by people. Once they manage that, then they’re a great deal more likely to achieve the sort of success they’re looking for.

5. “Passive” IncomeIt should just be called income; there’s not much that is passive about it. No matter how people set out to earn extra income, there’s going to be work involved. There’s likely going to be a lot of work involved. However, it can often be done from home, or in one’s off time, which is a huge bonus for those dedicated to their careers no matter what their income is.