What is the truth about passive income?
Title: The Truth about Passive Income | GrowthStart Insights EP10 In this Episode of GrowthStart Insights we will be talking about the truth behind passive income. What does it really entail?
Hosted by: Bernard Loots
Is Passive income truly about making money while you sleep? Well it’s kind of true, but there’s a lot of work involved. We are going to talk a little bit more about it in this episode of the GrowthStart Insights podcast. This is episode 10 and I’m your host Bernard Loots. Thank you for joining me and please subscribe.
So there’s definitely a myth about passive income. A lot of people tend to think that it’s something super simple and you just do a little bit of work and you are going to make money while you sleep. Well that is not the truth.
The truth is you need to put effort in to get a return. Real passive income is when whatever input you put in, whether that’s from your product or service that you supply or whatever it is, gets exponentially growing returns in time. So whatever effort you put in from the start has to grow, that might be a tremendous amount of effort and most likely it is going to be. It’s a hell of a lot of work to get started in the online business and selling a digital product or whatever product that you are selling, but the key is here to keep in mind, we want exponential growth and return on our investment.
As an example, let’s take investing in shares. You put money, which could be once-off into a fund and every quarter you’ll get dividends from those shares that you’ve purchased. The same thing as what I want from passive income. I want to create my digital product, online eBook or course, whatever it is and then I want that product to generate the money for the rest of my life hopefully.
It’s pointless if you are going to put in effort to get some return and then the next day we have to do the same thing all over again. You might as well just work for a company, do a job and you put your hours in for today and you receive wages for that time that you actually worked. The whole idea behind passive income is that we want to put in the work, we want to put in the effort, but then we want these returns to constantly and continuously come and we want them to grow over time.
Now the only way that we can achieve that is to have minimal ongoing input into delivering our product. So for myself, a service business is definitely not the way to go because you have to constantly actually do the work to provide the service. The best thing in my opinion is to have a digital product.
You can totally automate this on a website. All you need to do is make sure that people come in, that people get interested in what you’re selling and that people buy. For that reason, that’s why we make content on our website blogs that get ranked in Google and that drive traffic to our website. some of that traffic and not all of it is going to maybe buy something on our website. The same thing with YouTube, that will drive traffic drive traffic to our website or a lead magnet and we can capture their details.
That then goes into an automated email sequence where we drive desire in those people that are interested and eventually make them an offer and then we sell it this way. I do not send every single email that comes from the website. Once somebody enters into the lead magnet, that goes into an automated sequence. I don’t have to physically check my bank account because the system is automated in a way to automatically ship the product once the payment has been received. Then there’s email sequences after that purchase, maybe driving another product for an up sell or if the person didn’t purchase the product offer them something else, maybe at a lower price point.
The whole reason for this video is to make it clear that passive income does and will require lots of work. Especially in the initial upfront stages. As an example if we are going to create an online course, we have to do tons of research, we have to create the material, create a PDF, guidelines, guidebooks and action plans. We have to then do video content, record a video then you have to edit that and then put it on your website or put it onto YouTube.
There’s a lot of work that is upfront, but with all that work and taking the course as an example, we are going to do it once. We will be putting in a tremendous amount of effort and then over time we are going to sell that same product over and over and we don’t have to for every single person that we sold to provide that same course. We’re not going to have to deliver it a million times if we sell it a million times. We only have to provide it once.
Now that is the key to passive income. Yes, you are going to have to spend time and you might have to spend a little bit of money upfront, but over time the amount of return that it’s gonna generate is going to grow and it’s going to keep growing and growing and growing. The more effort you put in the more that it’s going to grow and you will have this huge amount of exponential growth and you are going to make money while you sleep.
Please subscribe and like this video and follow us for more content. We are going to dig deeper on this topic. Thank you for watching and take care.
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