What is the truth about passive income?
A passive income is one of those buzzwords these days. What does it mean to have a passive income? Is it that easy to start generating revenue? How do I start and what steps do I take.
Short summary of the content
Passive income does not mean you do not have to work for it. It is a sustainable income that is easy to scale but only if you are consistent and persistent.
To become successful you have to:
- Find a niche you love
- Provide a genuine service
- Build a list of followers
- Build a relationship with your followers
Once you have a list of loyal followers, you can start thinking about monetising your efforts. There are ample ways to do that, and that is food for another blog.
How active is passive?
Many people believe that having a passive income means that you get rich by doing nothing. But if you use your head and think this over, you will realise that such a thing is impossible.
Although that could maybe depend on your definition of ‘doing nothing’?
A success story
Let’s talk about this boy, Ryan. His youtube channel Ryan ToysReview generates millions of Dollars in revenue. That is the result of putting up a heck of a lot of videos that provide a service.
Provide a service
They fulfil a need. Kids love looking at the clips, and when they see something that looks like a lot of fun, they too want the toy. In turn, it gives parents a good idea about what toys are worth buying.
Be consistent and persistent
Getting these kinds of results requires persistent and consistent work. If Ryan stops creating these videos, do you think his channel would keep on generating income at the same rate?
Sure, he will keep earning for a little while. But as the toys become outdated and are no longer accessible, so will his following decline, thus will his income decrease.
So we can all agree that this income requires work.
Change your mindset
But do you think it feels like work to Ryan? Do you think his mom or dad feel like they are working when they film their son as he plays?
Maybe even more important is the question: do you think this concept started with profit in mind?
Breaking it down into chunks
The key takeaways in this story are that its success was the combined result of:
- providing a service
- being consistent at creating content
- persisting, never give up
- doing something you love
Component of luck
Ryan’s story is unique, and you could say there was probably a lot of luck involved. I don’t think his parents are marketing specialists that could have foreseen the potential when they first started.
So can we still use this success formula by removing the component of luck?
When we pretend that this story was all planned, we can see some clear strategies. It involves some hints around marketing and some tips around personal satisfaction and work ethic.
From the perspective of marketing we can see some really good practices.
- Provide genuine service, offer something to the community that they can relate to and find useful, you will attract followers.
- Nurture the followers by consistently providing more service, and you will build a genuine relationship.
Find a niche you love
That could be the single most crucial part. You have to find a niche that is appealing to you. Notice that I highlighted the words ‘to you’. You need to find something that you love to talk about with passion. Think of a subject for which you want to become the expert.
If you choose a service only for the potential of earning money, do you think writing about it will feel like a hobby? Don’t you think it will become a burden?
What makes income passive is how you perceive the work. If you do things that you love, it will never feel like a job. And sure, because of automation and building a good list of followers, your income can scale up without having to put in any particular extra effort.
But you have to keep providing service or that income will go away as quickly as it came.
Don’t have money on your mind
Do it for the sake of the service that you provide. That is so important! Become a teacher in your niche and do it to help others genuinely.
If you are in it for the money, you will become a hard salesperson. The kind that everybody hates. The door to door agent that puts his foot in the door just so that he can make that sale. We all know them and none of us like them.
If your service is genuine, people trust you. They start to look at you for advice, and you become the authority in your niche. Any product you endorse with honesty, and with the same mindset, that you genuinely believe will help, your followers will buy like cupcakes.
That is the truth about passive income.
How will you spend your passive income?
Do you want to know more about earning a passive income?
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