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.