Debunking 4 Myths About Passive Income

Creating multiple sources of passive income is a wise business decision, but don't be fooled by some myths about it. Do your research objectively and learn to read between the lines of the promises made to you.

MYTH #1: CREATING PASSIVE INCOME IS QUICK AND EASY

Anyone who has worked to create a product, write a book, create a niche website, or even promote affiliate links will tell you that this myth is false. You'll always have to work at first, and the amount of work and time you'll need to put in will vary greatly depending on your source of income. Anyone who promises you overnight riches without doing anything is either completely missing the point or trying to sell you a scam.

MYTH #2: YOU CAN CREATE IT AND FORGET ABOUT IT ONCE CREATED

This is only true if you hire a project manager to manage the day-to-day marketing and promotion plans for your chosen revenue stream. But even if you outsource the day-to-day management, at some point you still need to evaluate whether updates are needed or if the ROI is worth it.

MYTH #3: IF YOU CREATE IT, IT WILL SELL.

In real life, you can’t just set up a sales page or publish a book on Amazon and wait for the sales to roll in. Organic search traffic is always nice, but this type of free traffic is often low or non-existent. You’ll reap much greater profits if you actively market your products on social media, to your email lists, at live events, and through well-crafted advertising campaigns. In the digital world of millions of products and websites, you have to work hard to get the word out about your products. If you don’t make a little noise, no one will know what you have to offer.

MYTH #4: YOU NEED A LOT OF CAPITAL TO CREATE PASSIVE INCOME

Again, it depends on the type of income stream you choose to create, but unless you want to start doing real estate investing, online income streams don't require huge amounts of capital. Today you can start a website with a very cheap domain purchase and an equally cheap web hosting package. Even if you want to self-publish a book on Amazon, you'll spend more time preparing the manuscript than publishing it.

A little extra advice: try to focus on one income stream at a time until it becomes profitable. Once you have a stable income and have a process in place to manage it, start researching your next source of income. Also remember that not every idea will be a grand slam. If an income stream isn't working out the way you hoped, go back to the drawing board or retire that idea and move on to the next one.

LEARN THE 5 THINGS YOU SHOULD NEVER DO WHEN CREATING YOUR ONLINE COURSE

Creating online courses for your audience is a smart passive income idea because you can reach more people without being online 24/7.

But I learned the hard way that some mistakes content creators make reduce the number of sales. I'd like to help you learn from my own mistakes in my next Masterclass, so log in to my Facebook profile to receive notifications.