Imagine kicking back and putting your feet up as passive income flows in without you lifting a finger.
That’s the dream of many online entrepreneurs.
But the reality is that most ‘passive income’ isn’t 100% passive.
Sure, if after a decade of work, you decide to sell your business and fully retire on the proceeds…you could have more than enough passive income flowing from your investments to do whatever you want.
One of my clients is in that position.
He recently sold his business for an 8-figure sum.
A deal like that takes months to close, and before it was finished, he was already putting together his next online business.
No riding off into the sunset of ‘retirement’ for him.
Of course, he is also someone who built a business that worked mostly without him.
And I’m sure he’ll do the same with his new business.
But did you catch how I used the word “mostly” without him?
He wasn’t required for the day-to-day activities, but he was still involved in the strategy, came up with new ideas to test, and kept an eye on the growth.
And that’s the truth about passive income.
The majority of passive income isn’t 100% passive.
You might have a property manager for your real estate, but it would still be a good idea to look at the books and check out your properties at times.
You might have virtual assistants who write for your blog, do the seo to generate traffic, handle customer service, and respond to your emails.
But you should still communicate with them regularly…even if it is only an hour a week or a month.
Books & courses you create may need updates.
Traffic sources may slowly decline or all of a sudden slap you.
Keep track of your KPI’s (Key Performance Indicators).
And be prepared to put new systems in place when needed.
Another client and I recently discussed his desire to cut back in business.
He’s had a profitable online business for years, and he was asking how he could modify it to create totally passive income with no involvement from him.
My suggestion was a slight change in that question.
A better question would be, “How can I create an enjoyable business I could run in one day a week?”
Another variation could be one hour a day instead.
This accepts the reality that most passive income requires some involvement on your part.
Freedom doesn’t mean no work at all.
It means you get to set the terms.
In the beginning it does take a lot of work to get the momentum moving. But as you grow, put systems in place, and get others to handle the day-to-day work, you can cut back and free yourself up to focus on high leverage activities you enjoy.
One of my favorite passive income models is selling online courses.
My Internet Lifestyle System goes into the details of how to choose a hungry market, come up with bestselling course ideas, create websites that sell, and attract buying traffic.
While it’s not 100% passive, meaning you ride off into the sunset never to be seen again, it can give you the freedom and financial rewards you desire.