Making a passive income a reality is what I think makes people consider starting an online business.
Who can blame them though?
Just the basic benefits of making passive income include:
- Not having to “work” for money (huge disclaimer about this coming up),
- Making money while you sleep,
- It’s all done online (meaning you can be on your couch or on top of Mount Everest) and;
- It’s just a kick-ass way to make some great money (see how this guy is making $10,000 a month passively).
However, with all these benefits comes one little disclosure and fine print to it all and that is;
You have to work your ass off for months without seeing any results just so you can have a chance of making passive income in the future.
Does this sound like a good deal to you?
Most may agree that working 12 months for nothing only to make passive income in the distant future sounds like a plan they can manage but 90%+ of them lose hope within the first 1 to 4 months.
This sucks, and it leaves people with a bad taste of online income. My guess would be this is why online businesses have a “scam” vibe associated with it.
And it’s true; some products out there that allegedly teaches you how to make money online are scams, but that does not mean passive income is not possible. (You can see how to spot an online scam here).
Today I am going to be talking about the 5 rules for creating a long lasting passive income stream that will not only get you the benefits mentioned above, but way more!
See it’s easy to think “oh I can do that” but when you understand the sacrifices that need to be done before you go into it, I believe you have a much better chance of making it work.
And that is my aim with this website; showing people how to create a comfy income stream online without the heartbreaking failures that usually come with it all.
So, if you want to learn how to build your passive income starting today, chill out, get a pen and paper (or bookmark this post) and read these few ‘rules” I have for you today!
5 Rules For Creating A Long Lasting Passive Income Stream
It’s Not All Rosy
Making passive income sure sounds like a good way to live life but I assure you, the information you see online about passive income is not always the truth.
- No, you can’t work from the beach because sand does not go well with electronics and the sun makes it impossible to see.
- No, you can’t start today and make passive income tomorrow (more on this later)
- No; it’s not about fast cars, big houses and beautiful girls (Although Tai Lopez does this amazingly well)
- No it’s not a “boss free life”. (You need to be your own boss and you need to be one hell of a tough SOB! If you don’t work, then you won’t get paid.)
What I’m trying to say about all this is that chances are you have already some pre-conceived notions about passive income and they’re likely false so before we go on, make sure you rid yourself of these “day dreams” and understand that there is work involved and you likely won’t be a millionaire by the end of this year.
Although you will do okay, if you follow the right advice:
Know Passive Income Is Not Guranteed Income
Just because you made $1000 this month, doesn’t mean you’re going to make $1000 next month so make sure you take this in considerations when budgeting and planning ahead.
Surely if you’re making $1000 a month, you can expect something close to that each and every month (as long as you keep putting in the work) but some months it may be more, some it may be less.
Your niche, the seasonality of your niche and many other factors all play a role in how much you’ll be making on a monthly basis.
Just remember; passive income is not a fixed salary.
However it’s not all bad news. Most often than not; once you start making an income, chances are you will keep building on that thus earning more, however; there will be months where something goes off and you get a drop in traffic, sign ups, income, etc…
It’s just the nature of this business so do not panic or freak out. Just be careful with your spending and ride it out. As I said; chances are if you have a slow month or two, you will come back better than ever soon!
Just Because Something Worked Once, Doesn’t Mean It Will Work Again
Just because you succeeded once, doesn’t mean it will be a hit again later . A perfect example of this would be selling products online that you create yourself.
I am currently writing my next ebook “How To Win At Pinterest Marketing” and I have plans to sell this book on the blog, so I was enlisting some advice from my network of pro bloggers that have done this thing.
One thing they all said is that sometimes a book may be a flop or it may be a hit, you just never know.
Just because you made good with one, doesnt mean the next one is going to be good as well. Also if one was a flop, there is no reason why not to try again either. Just keep at it and I assure you you will be fine.
Hope this example has delivered what I’m trying to say. The main point I wanted to drive here is that; there are no guaranteed results.
You Need To Invest An Insane Amount Of Time & Energy
You just can’t make passive income online with a snap of your fingers. It takes months of learning how it’s done and applying the things you’ve learned to make your passive income dream a reality.
Waiting months for results for work you’re doing now is not something that most like to do (I hate it as well) but it’s a deciding factor of whether you will be successful or not.
Most of the students we get over at Wealthy Affiliate usually start seeing some significant results around the 6-8 months mark, which is a shame since data shows most people quit by month 4 or so.
That’s only 90 days away from starting to make a decent amount of money that has the potential to grow and change your life for the better, forever.
Just stick with it folks. If you want some inspiration, you can read my “success story” post; “Proof Success Takes Time”
Passive Income Only Works If You Do
If you follow all the right training and you follow the rules to how passive income works, you are guaranteed to get results at one point or the other.
In 5 years I have not met a single person that stuck with this business for more than a year and never made money; it’s just impossible! Eventually you will make it work and you will be making money (a lot of money as well).
This is when a common problem starts to show it’s head and that is; getting complacent and just plain lazy.
I do have a friend that was making close to $20,000 a month completely through passive income and once he hit that, he relaxed; he stopped working, stopped updating, start living the “rich life”.
The result; in a few months his income dropped by 75% and he was forced to go back and start completely from scratch.
That is what happens when you abandon your business; it will abandon you.
Passive income online needs to be maintained and worked at regularly. Yes you can hire help to help you do tasks you don’t like to do, but at the end of the day; you are going to be the one calling the shots and the buck stops with you.
Make sure you are giving your business the attention it deserves to keep you living the life you worked so hard for. Don’t blow it once you get it as that is just heartbreaking on so many levels.
This was a quick post today but I really wanted to share with you these “truths” and “rules” for creating a long-lasting passive income stream online that I have observed from years of experience and many mistakes.
It’s an amazing time to be doing this as we have all the tools necessary to learn from each other’s mistakes and there is an insane amount of information to get you going.
Yes, making passive income is amazing and I see no better option to make money then passively while you enjoy the life you want to live, but always remember that it can be gone just as “easily” as it came so make sure you follow the rules, work hard and yes; have fun.
Thank you very much for reading.
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Also since we’re on the subject about passive income, you might also want to check out Pat Flynn’s ‘The Smart Passive Income” blog. It’s a great resource of information for aspiring digital entrepreneurs and I have gotten a lot of practical advice from it.
Till next time.