The Top 5 Myths About building passive income: Busted!!
Today I want to talk to you about something that I think is hugely important to know before you start out on your passive income journey.
Whether you're currently spending your days tirelessly working for a boss, completing their designated tasks that do nothing to excite your mind or expand your soul or you're just starting to realize that you're just not willing to keep exchanging your time in order to pay the bills each month, then trust me I know exactly how frustrated you're feeling and how much a shining beacon of hope Passive Income can look.
Now before I go deep into this, I promise you I haven't made this blog post to crush your hopes and dreams of retiring this time next year and living off your multi-million pound passive income streams that were "effortless to build and grow" but if I want to stay 100% honest with my little budding community of passive income creators (which I always do) then I have to be completely truthful about my experience with building my own passive income.
And that's why I really really wanted to create this myth smashing blog article for your guys today...
...completely busting the crazy and quite frankly useless myths flying around the internet about how "amazingly easy and effortless" it is to create passive income!
If you've ever read any of those mind-boggling stories about how easy it is to make a six figure salary using passive income even if you have ZERO online business experience, then you'll know that what usually follows after those awe inspiring headlines is a wishy washy (super generic) run down of the most obvious and standard tips every passive income blogger mentions in at least one of their blog posts.
In otherwords... even if you followed that amazing "How I made £30,000 in one month" articles tips and tricks to the letter, there's still pretty much little to no chance that a complete passive income newbie will be raking in tens of thousands from the minute they release their very first online product or blog post!
Again I promise you guys I'm not saying this to dash your financial freedom dreams.
I just really want anyone thinking of starting out on their passive income journey to know the facts, be prepared and have the very very best chance at building income streams that are profitable, maintainable and most importantly SUCCESSFUL IN THE LONG TERM!
If you want to take building passive income online seriously then I really recommend you read this article.
I can't explain how much heartbreak and disappointment this would of saved me if someone had simply laid out the truth about what it really takes to create and build an online passive income business and start earning enough money from it to match my full time job.
Whether you're only just beginning to consider starting this type of income stream or you've been doing it for a while already and you just can't work out why it's not coming to you as easily as all those other bloggers who appear to be raking it in from day one?
Then let me share my experience with what it's taken for me to finally start earning real Cha-Ching from my online passive income streams in just under 2 years and how much time and energy actually goes into the 'build' before you get to sit back and let the money roll in.
I'm going to start by telling you probably the most important FACT of them all:
"Passive Income takes WORK!"
I know... I know... it's totally not what you want to hear! (It definitely wasn't what I wanted to hear when I first started looking to make easy money quick time!)
Surely the whole point of PASSIVE income is that it's passive right??
As in you shouldn't need to do all that much to earn it, hence it possibly sounding like the most amazing form of income in the WORLD!
But I'm going to be honest with you right here, right now...
Unless you're willing to pay the really big bucks to have someone else set up and run an online business for you or you want to go into investing in someone else's existing company or start-up (a whole different route entirely), then the only other effective way to build an online passive income stream is to roll up your sleeves, take a seat in-front of your computer and put in the initial hard work yourself.
Now don't get me wrong if you walk in with your eyes open and with realistic expectations about the time it could take and the work that's required to grow your income streams then anyone... and I mean ANYONE is capable of creating enough passive income to live off of each month.
But... just before you embark on possibly one of the most exciting and addictive adventures you're ever going to take to create a better financial future for yourself, I want to tell you guys exactly what you're getting into and what to expect along your passive income journey.
In the other articles on my blog I'm hell bent on teaching you exactly how you can make this journey way easier for yourself so you can reach your financial freedom goals a heck of alot faster then if you went it alone, but the first step to building any successful business or income stream online is to know exactly what you're up against so you can dodge those unrealistic hurdles #likeaboss!
In this blog post I'm going to be exposing the Top 5 Myths i've heard flying around the internet about passive income:
1. Making passive income is SUPER EASY!
2. It doesn't require MAINTENANCE to grow your passive income or keep it going once it's built.
3. It's SUPER QUICK to create passive income... (I'm talking so quick you'll be making thousands in a matter of a few days!)
4. Only ONLINE EXPERTS can create passive income... "Because it's like so technical and tricky to do no average joe could possibly do it?!?"
- Huh hmm I think I'm literally testament that that one isn't true!
5. If you just create the PERFECT product then the crowds will come flocking to your online shop or blog and BAM you'll be rolling out thousands of $£$€ overnight!
I'm going to be honest here. I would love to tell you most of these myths are absolutely true!
After all I like to think you have to have a touch of 'belief in the unlikely' to be an entrepreneur and reach for more in the first place, but in my experience and those of so many others I know its the soul destroying "get rich quick" mentality that makes people give up way too quickly on their passive income goals and miss the big picture...
That if you stay focused and persistent on what you're trying to build, eventually the rewards will come!
I kinda think that rule goes for so much of life but especially i've found in building passive income.
So in order to help you set way more realistic expectations and goals that you can actually reach for, kick butt in and succeed at... I'm going to go through each of these popular myths and tell you the reality behind what to expect as you build your passive income.
Yeh Ha...Buckle up butter cup there's a whole lot of knowledge about to be had on this here blog post...
Myth 1: Making Passive Income is super easy!
I hope by now you've kind of got the inside track to this Myth.
Passive Income takes HARD WORK!!
And depending on how fast you want your income source to grow you might need some major "get your head down" time in order to reach your ultimate passive income goals.
How quickly you succeed is largely due (like most achievements) to how much time and energy you put into creating it and how willing you are to invest in helping it grow.
It might not be the glamorous truth you wanted to hear but knowing that you'll need to carve out time in your daily or weekly schedule to help your passive income grow is a fricking must if you want to succeed in reaching your goals.
Now I know that if you have a full time job just like I did when I first started out, the thought of adding even more onto your workload just seems insane but I kind of like to think of it as this...
If your boss told you that if you stayed 2-3 more hours after work for the next 12 months she would pay you double or even tripple your salary for every month you worked your normal hours after that would you take it??
So what if instead of giving those precious extra 2-3 hours to your boss, you went home jumped on your computer and used that time to start growing an online passive income business instead?
If you gave yourself an entire 12 months to grow and nurture and expand that business to something profitable, enjoyable and most importantly successful in the long term. How much do you think you could be making extra each month at the end of that??
Yes, it means you have to give up some of your free time right now but in the long run once you've taken the time to create and grow your passive income you'll get to sit back, relax and reap the rewards of your hard work. (Preferably whilst chillin' on a sun lounger in the Bahamas!)
Of course it's up to you to decide how fast you want to grow and how much time you want to invest and honestly if you don't feel ready to dive in all guns blazing then don't worry, why not just think of building your first passive income stream as a really small side hustle?
I know that with all the hype there is flying around on social media about solopreneurs earning six or even seven figure incomes per month from their low maintenance blog or online shop that it's super easy to put intense pressure on yourself to start earning a full time passive income overnight, but trust me when I say driving yourself to insanity to try and attain the same goals as a seasoned professional when you're just starting along the road is a quick way to burn yourself out!
How much work you want to put in to start with is completely up to you and just rememeber every moment you put towards your goals (even when it's only a little) is another moment your future self will thankyou for it in the long run.
Another reason why I think this myth's damaging for a passive income newbie to hear is that it also implies that the traditional attributes an entrepreneur needs to have don't apply to creating this form of income such as determination, drive, passion and a willingness to keep working on your goals even when the going gets tough.
Passive income takes FOCUS and PASSION... and plenty of it!!
You need to be prepared to keep pushing towards you financial freedom goals and unless you're able to afford to hire a work coach to bully you into finishing each of your tasks and keep growing your online income then you have to have the self motivation to go it alone and do it yourself.
I personally think it helps to be passionate about whatever it is you're trying to create whether its building a blog, opening your first online shop or writing your first ebook. Passion really has been my fuel in the times i've worked late to finish another batch of art printables for my shop or fumbled around on graphic design websites and automation programs trying to work towards building more passive income.
But again I'm going to have an honest moment with you here... don't let anyone make you feel bad about the fact that making money from your ventures is also one of your top goals!
Yes it is super important never to undercut your morals, your quality or your honesty in order to make a quick buck... it's not worth it and to be brutally honest your kind of doing yourself a major diss if you try and flock poor quality products and lie about it to your customers.
Growing an online business is about building trust and loyalty between you and your potential customers. If you're not willing to put in the extra work to create something amazing for them then trust me they won't be willing to show up for you the next time you decide to create another product.
In order to create amazing quality products, blog posts, ebooks, digital downloads etc you should also expect to give plenty of your time and focus to educating yourself and applying the new skills you aquire.
PERSONALLY I love this part of growing an online business and if you're hear trying to learn how to step out of the mold of everyday life and build your own passive income streams then I'm sure you will too.
When I started out all I did for the first few weeks between discovering passive income and creating my very first online shop was research, play around and learn as much as I could about the different ways to create low maintenance income streams and what exactly I would need to do to earn my very first passive income.
As you're here on my blog I'm guessing that's where you are now or you're at least far enough into your journey to know that research and aquiring new skills is a way of life for an online entrepreneur.
Whether I was learning how to improve my basic graphic design knowledge or educating myself on the steps I needed to take to open on Etsy shop or create products, all the way through my passive income jounrey I've had to learn new skills.
Unless you're already super experienced in exactly what you want to do then you can expect to spend plenty of time learning and discovering new ways to improve your income streams too but I personally think thats something to embrace with open arms.
After all learning can be fun guys!
I'm a firm believer that you'll never learn enough even when you're 90 years old, so although it might not sound as poetic as simply saying "Making Passive Income is Super Easy", the reality is that just like everything worth while passive income takes focus, hard work and a whole lot of trial and error to reach financial freedom.
• As you can kinda expect with learning new skills and building something entirely from scratch you can expect to see a fair bit of TRIAL and ERROR! If you're someone who has a knack for picking up new things then you might not have to worry so much about geeting it sooo wrong over and over again.
But if you are someone like me who funbles my way to the right answer. Then don't be diheartened if you sometimes get it wrong along the way. In fact try to look at it as a good thing. It's so much easier to learn from your mistakes then your successes and so you've kinda got the inside track when you mess up or judge something wrongly and it all falls flat on your face!
Hard to beleive but after i've spent so much time crating products, building online shops and trying to flog ebooks I kind of get it. Unless if your the type of person who doesn't learn from their mistakes... Once you've completely messed something up once you gather all the flaws in your head process your mistakes and come up with something even better or more effective than you had before.
*Finally remember that building passive income walks hand in hand with practising what I like to call the 2 essential P's... Persistance and Patience! As I have probably said a thousand times already in this video Passive income does take time and work. As much as it can be great to think that once you;ve started building passive income the money will easily come rolling in whilst you sit back and chill you need to be prepared for the reality that for most people growing their money pot takes effort and patience. I'm not telling you this to put you off, the opposite infact I'm telling you this because I really want you to succeed. If you know the rules of the game before you start then you're so much better equipped to build a strong strategy to help you reach your end goals and win rather than feeling constantly bombarded by surprises and let downs that knock your motivation and your focus off track.
Myth 2: Passive income streams don't require maintenance!
The second Myth I despirately want to bust is that passive income streams don't require maintenance.
This i've found from my own personal experience and the experiences of so many others is definately not true!
Even the most automated and well oiled of passive income businesses take at least a little maintenance from time to time. You might not always need to be chasing your online business around like a newly walking toddler once it's established but even the most successful six figure bloggers and solopreneurs need to keep a short leash on their income streams and keep them ticking over.
It might not be the most glamorous or fun thing to say on a passive income blog but again I want to be 100% honest with you.
Unless you're in a position to hand over the entire running of your online business to an amazingly competent manager who allows you to just sit back and enjoy your share of the profits (#dreamgoals) then you can expect that you'll need to maintain a certain level of control and effort in order to keep the cash flowing rolling in.
As an example I typically spend about 5-10 hours per week maintaining my online income streams. I have 3 of them and in truth their a mixture of maintenance levels.
The most established stream is almost completely passive now. I like to do some promotion work on that business from time to time and check in to see if there is anything I can do to grow it further when I get the chance but for the most part I'm happy to leave her ticking along nicely whilst I concentrate on my newer ventures such as my blog.
I know that it's happily bringing in passive income to me each month and when i'm ready I want to go back and add even more products to increase my profits but right now she's good.
My second business has been my obsession for about 10 months. I absolutely loved building her from scratch and so it's kind of unfair for me to say she takes tons of maintenance when she probably would of done just aswell without all my extra fussing. It's truly just because I love creating the passive income products for her so much and play with her branding and promotion that she's taken up more of my time.
The last 3-4 months I decided to start work on my newest passive income business and I finally felt ready to let my second start ticking on her own and thanks to the work I've put in in advance and the systems i've set up to allow her to run i've been able to sit back and collect customers and sales almost effortlessly with me just checking in on orders from time to time.
Finally my newest venture (my blog) has only just begun.
If you're new here then you might not know that Evaknows (the way she is now anyway) is pretty fresh in the big online world and as I've mentioned before new passive income businesses take work.
I'm ready to build her and i've hopefully learned a few handy tips and tricks along my journey to help her grow a lot faster than the ones before but just like I explained to you in myth 1 know that inevitably she is going to take work but with the right mindset and expectations I also know within a year I can reach my first passive income goal for my blog.
One other little thing I want you guys to remember is that if you choose to create more than one passive income stream then be prepared that multiple streams = more maintenance.
As I mentioned above, in the last year and a half I've been very steadily building up three avenues of passive income.
Could I of choosen to stay with one and keep the maintenance low?
But for reasons I won't go on about here I personally decided that creating several passive income streams and diversiying was right for me and my future goals (I'm not saying that growing more than one is for everyone though that's entirely up to you).
In short what I'm trying to say is that passive online businesses of almost any kind (affiliate marketing, writing ebooks, selling digital products, drop shipping etc) require at least some maintenance as they continue to grow.
Yes the cold hard truth is that passive income (bar investing) is almost never completely passive but don't let that fact discourage you from starting or growing a passive income stream of your own. The whole point of a passive income business is that you build it around the principle of reducing your work level as your passive income grows (I'll show you how to do this on my blog).
So even though the work load may seem like alot at the beginning believe me you really can reach the point in which you're earning tens of thousands of pounds per month for just 2-3 hours of work!
Myth 3: Passive income is super quick to create!
Myth 3 is another myth i've heard so many times flying around the internet.
Now this one is probably not as unrealistic as the two i've mentioned above and if you know what you're doing, have enough time and energy to put into your passive income goals and are honest with yourself as to what EXACTLY "super quick" really means in the real world then you could be earning yourself at least a small full time passive income within a few months.
But the thing that bothers me most about this myth is that it implies that if it takes longer for you to start seeing a return on your hard work or your passive income only starts to trickle in as opposed to waking up one day with £10,000 of passive income flying into your bank account that you're doing it wrong or worse that your idea isn't going to work!!
Well have you heard the saying "It takes ten years to make an overnight success"???
I pretty much live by this quote. Not because I'm prepared to sit back and wait 10 years before I expect to see a dine fall into my pocket but because it helps a ludicrously impatient person such as myself remember that my overall goal isn't about having overnight success.
Its about SUCCESS full stop.
I remember being at the start of my own passive income journey scrolling through hundreds of Pinterest pins promising to show me exactly how to make £10,000 of passive income in my first month.
I'll be honest with you, I even clicked onto some of them.
I've read the blog posts or website articles and i've discovered the mediocre completely generic tips they've listed out about starting a blog or online shop, magically driving thousands of customers to the amazing products they've told me to whip up and I've felt the disappointment and annoyance when (even after I've followed their advice to the letter) I still didn't see wads of cash transfer into my bank account at the end of my first month.
(Side note: I've also discovered a wealth of kick ass mentors who've guided me carefully and most importantly truthfully to my goal of a full time passive income and I've shared their resources and blogs throughout Evaknows).
The point is I know how frustrating and disheartening it can get when it looks like everyone is leaping and bounding through the tropical passive income forest and you're slowly chugging along being overtaken by a tortoise.
If you're here to learn how to make a super quick buck with little to no effort required than you're in the wrong place.
I want to show you guys how you can optimize your spare time properly to help you build a safer, wealthier and more comfortable financial future.
I don't want to show you how to slap dash your first passive income stream, make a couple of hundred in your first month only to watch the cash flow dry up and wither within a weeks because you haven't taken the time to build and impliment the right infrastructure to keep your passive income stream strong and profitable in the long run.
Like I said above that doesn't mean that you can't still grow your passive income streams relatively quickly. With persistance and hard work at the start you really can create amazing streams that will pay you back 10 fold for your efforts month after month.
It's also super important to remember that in general the less experience you bring to your passive income stream at the start the longer it tends to take to grow it to where you want.
I personally think that inexperience is nothing to fret about.
If you've never created an online shop, designed a passive income product or promoted something before it doesn't mean you can't start.
I'll talk more about this in Myth 4, but I think it's important to set realistic expectations on yourself and your skill set before you start crying over why you've not managed to create a website, upload all your products, promote like mad and bring hundreds of thousands of visitors to your online shop or blog.
As you learn and you work your way along your online income jounrey you'll pick up the tips and tricks you need to start speeding up your passive income progress and believe me once you start getting the hang of your business and your preferred strategies your passive income really starts to build.
The main point of me breaking down myth 3 is not to tell you that it's gonna be one long pain staking slog to the finish line so why bother??
The complete opposite in-fact!
It's because I want you to remember that even if you do start off slowly and you're not seeing thousands in the first month that it's usually not because you're doing it wrong it's just because you need a little more time to grow.
Trust me hold on, keep learning and gaining new skills and within a few months you'll start to see your income really grow as you start to get the hang of what you really need to do to create your first passive income stream.
It might take 6 weeks, 6 months or even a year to reach your goals but trust me it will come and you'll be so glad you didn't give up in month one!
Myth 4: Only tech experts can create online passive income!
Myth 4 I think is getting pretty old and dried up.
It used to be a strong belief that only computer wizz kids and hardcore techies stood a chance at building their own small online businesses that could actaully compete with the online retail big boys that dominated the digital world, but thanks to the introduction of newbie friendly website platforms, marketplaces and graphic design programs the competition's recently been blown wide open.
So much so that you can now create an absolutely stunning selling platform or blog for the price of a few quid and a couple of hours playing around on amazing websites such as squarespace, wix, wordpress, Picmonkey and Canva (to name just a few).
With a little knowledge and guidance you can create your own online products, design your branding perfectly and learn how to reach out to your ideal customers all in the space of a few days, weeks or months depending on how much time to put in at the start.
When I first started learning how to sell digital products and ebooks online I had ABSOLUTELY no experience or know-how.
A computer to me was a place to do university essays or shop online and I'de never really considered that sat infront of me was a platform I could use to jump out the employee rat race and start growing income for myself!
Once I had my first taste I have to admit I was hooked. Every day after work I would come home, jump on my computer and learn more about how to build a passive income business, how to create my first products and where to sell them.
Eventually, when I was ready I took the first little plunge and uploaded my very first ebook to Amazon.
It was just a short story I created because at the time the only skill I thought I really had was that I liked to write (I couldn't manage a novel but a short story I could just about complete). I threw up a blooming awful ebook cover image to go with it that i'de tentatively created on Picmonkey with my limited graphic design skills (which at the time was like 2 hours worth of playing around on a simple graphic design website) and I crossed my fingers and hoped for the best.
Of course being a complete newbie and not having found the right online mentor yet I had no idea what I was doing. I had no idea about SEO or how to promote my products heck I'de never even heard of a target audience, but I waited and waited and after a few days PING I had my VERY first sale.
Ok so like I mentioned before I'de read a few articles on how you could create ebooks and make thousands off them in the first month and of course even though I was ecstatic that someone had found my book and liked it enough to buy it I can't deny that I was kinda devastated that my masterpiece wasn't simply jumping off the shelves and raking in millions from day one.
But the fact that i'de made even one sale was a huge turning point in my life because to me (in that moment), I didn't look at it that I hadn't make my £30,000 target right away I looked at it that this amazing method that I had been learning about... a way to make money that didn't require me to get up and dressed everyday and traipse to a job I hated to hand someone my free time, could be done and from then on I was hooked.
I'm not telling you this story because I want you to run out and toss up and ebook on Amazon like I did. Through my experience I have definately learned that's not the way it's done, but I want to tell you that from that starting point (from no experience what-so-ever) I gone on to build and grow 2 thriving passive income businesses that now make me a full time income!
I think what it truly took and what it still takes today is passion, motivation and definitely the right guidance. And whenever any of these 3 wane a little I feel myself slacking in my work so I know that to me they mean a lot.
It also takes a huge willingness to learn. If you're not a natural or professional computer wizz then you will have to pull your socks up sometimes and hone your skills.
But what I want you to rememeber is that building a successful online business is no longer rocket science and with the right online resources and guidance (hopefully you'll find a ton of helpful advice here on my blog) then no amount of digital inexperience can stop you from reaching your passive income goals.
Myth 5: Create the perfect product and the customers will come!
Finally we reach Myth 5 which is perhaps in my opinion the most time consuming and income destroying belief there is out there about passive income heck I think probably with any online retail income.
That if you just create "THE PERFECT PRODUCT" and throw it online that the money will automatically come rolling in.
I think everyone would love to believe that the perfect product is absolutely all you need to drive in your customers and make a sale but the harsh and super important reality to this myth is that this simply isn't true!
The internet is awash with amazing (and not so amazing) goodies for customers to browse and buy and unfortunately all that blend of high quality goods and junk melts together to create the perfect flavor of over saturated soup!
It would be awesome to simply do your research, discover what your target audience needs, create the perfect passive income product and hand it over to them to drool over and purchase in the thousands whilst you sit back and smile but the honest truth is that the real work comes into play after your passive income product is done.
Branding your online store or blog, marketing to the right people and building your audience is where I'd personally say over 80% of the work really lies.
With passive income it's also essential to spend much of your time and energy (particularly in the beginning) creating the processes and automation systems that will enable you to eventually step away from your online business whilst allowing it to tick over successfully in the long run.
In my blog I will sharing tons of articles on the exact steps you need to take and resources you need to use in order to build amazing online businesses that you can step away from and still generate passive income but for now in this article I just want you to be 100% clear that just creating a great product and slapping online isn't enough to generate a full time passive income that remains strong in the long run.
Now don't get me wrong there is absolutely no need to panic over the number of elements that go into selling a product online. Learning how to grow your passive business, how to automate your marketing and how to create a smooth passive income stream that works exactly how you want is quite frankly all the fun!
All it takes is a little time, willingness and passion to learn a few new skills and you'll have everything you need to get your products seen my your perfect audience and have them flying off the shelves.
The sum up!
So there you have it the Top 5 Myths about Passive Income that I personally think should be squashed flat!
In truth making pretty much any form of online income takes at least a little work and contrary to some of the advice floating around in the big wide internet world, passive income isn't really any different.
I love building passive income streams because I don't mind putting in over 80% of my hard work upfront knowing that soon i'll be able to loosen the reigns and after a while that income source will start generating me income almost completely on it's own.
I started Evaknows because I really want to share with you guys everything I've learned from my 2 year journey building online passive income streams so far.
If I can help and inspire some of you guys to build your own passive income streams to create a more secure, fullfilling and most importantly time liberating financial future like I'm doing for myself then I'm super happy to help.
Learn from my successes, avoid my mistakes and leap frog to financial freedom using just your awesome mind and your laptop!
If you're interested in learning more about how to create passive income then check out my other blog posts on Evaknows.com.
And don't forget to come back often as I try to upload a new super helpful tutorial or blog post at least once a week!
what to read next:
The 7 Key Steps to Building Online Passive income! (Exclusive Content)