The reason I have decided to feature this today is because there is a bit of a ‘perfect storm’ happening right now, over on YouTube, between Gary Vaynerchuk and Pat Flynn from Smart Passive Income.
Gary V has just released a video called ‘The Truth About Passive Income’ and in all fairness he neither mentions by name nor refers to Pat Flynn or Smart Passive Income at all in the video, but as Pat’s main website is all about making Passive Income, obviously this was a bolt of out of the blue for him and more importantly, his followers. So much so, that it prompted Pat into taking action and releasing his own video response.
Before you go and take a look at both of the videos, which you can watch below, I just want to explain why I’ve chosen to feature this on my blog today.
I believe the important takeaway from both of these videos, is that Pat and Gary actually AGREE on what passive income is NOT.
It is not “essentially doing nothing and making a ton of money with the push of a button”.
Pat agreed with Gary 100% about what passive income really is and that he advocates that you cannot make money just by sitting in front of your laptop all day hitting the refresh button on your PayPal account.
There is a huge misconception about passive income online and that’s why I wanted to bring this to your attention and clarify it in this post.
“PASSIVE INCOME DOES NOT MEAN EASY INCOME”
It is perhaps better explained as work that you put in one time to create something once, that brings you income over and over again. Pat gives the example of writing a book that you sell on Amazon. You only write the book once, but you sell copies over and over and those sales bring you passive income. You still have to put the work in to research and write the book in the first place, but you don’t have to re-write the book for every single sale. This is of course just one example, there are many more despite what Gary V alludes to in his video rant.
Both men confirm that there are of course legitimate types of genuine hands off passive income – e.g. real estate investment, start-up company investment, stocks and shares etc. This however is not what most people think of when they think about making a passive income online.
Essentially the concept they both agree on, is that you have to put in the hard work up front and that for most people the passive income will not happen overnight, in fact it is usually the final step in your business, after you have worked your butt off to put everything in place. The idea is you should be looking to work smarter not harder and make sure that you optimize your time so that instead of working 1 hour and making $10, you work one hour to make $100 recurring and then learn how to rinse and repeat this so that you are no longer trading a fixed increment of time for a fixed amount of income.
These are exactly the type of passive income streams I will be investing my time and effort into and posting about here on my blog. The process, the successes, the none successes and why, and what lessons I learn along the way. This information will be invaluable in helping you on your journey toward working smarter not harder, by embracing the things that worked for me and giving a wide berth to those that didn’t.
Now go and watch the two videos and see what your take on it is. I would love to hear your opinions and feedback on this very ‘hot’ topic.
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