100% Passive Income?

By now everyone has seen the video of that guy in his garage with his book & Ferraris and that image is painted in so many peoples lives as the definition or the results of having passive income.  The truth is that it’s not.  100% passive income doesn’t exits.  There is absolutely NO way for you to do nothing and earn money from it.

Lets look at some examples of this.


Lie #1.  You can earn 100% passive income by running a business.

The reason this is number one on my list is because if you own business you would have to do some work in it.  If you start a business and don’t do anything to adapt to the changes in the market then your business will not last very long.  Even if you only invest in other business in order to gain some of the revenue that it generates.  You still have to do some investigation of that business and the market to make sure that it is a safe investment. That initial investigation is equal to work.   The percentage of passive income that you can receive from this source will require anywhere from 10%-50%.


Lie #2. You can earn 100% Passive income by creating social media content.

This is a HUGE lie!  Even though there are millions of people who are earning money through social media, there is so much work that they have to do initially that it can be burdensome or cause people to burn out.  The fact with social media is that you don’t even start to see any revenue until you reach a certain level.  So the question becomes ‘can you remain consistent with your content until you reach the level where you can earn some money?’  Most people give up before they get there.  But in looking at social media you see that there is tons of work that has to be don’t before to even get you to the level where you can earn any passive income.  My conclusion, you will have to put in time and effort to be consistent up front to make any money through social media.  Effort required consistently %100. However, as you continue to grow your social media following your revenue will increase accordingly.


Lie #3. I can earn 100% passive income by owning real-estate.

ABSOLUTELY NOT!!  I own some properties and similar to owning a business, you have to invest a lot of time up front to own a property.  First of all, buying a property requires some effort (inspection, time & money) before you sign the deal.  Secondly, unless you have a property management company that will manage the property for you, then have to do it yourself.  Depending on the tenants that you have and the amount of maintenance required, this could be a lot of work.  So the percentage of passive income in this scenario can range from 50-90%

Given those examples, I want to make sure my point is clear.  All types of passive revenue require some work. This work is done either up front before you even generate a dollar or ongoing through the life of the revenue source.   I don’t mean to burst your bubble, but remember that if you want anything is life you have to do some work.  Even if you win the lottery, you still had to buy the ticket.  Nothing in life comes to us for nothing so make sure that you put the effort and remain consistent & diligent with your revenue sources.   Make it happen!

Do you agree or disagree of have a different perspective?  Share your comments below and let me know.