I just read this article about Passive Income

It started out by saying that “Passive Income is horse-shit” . . . (pardon my French) !

But quite frankly . . . I have been saying this for ages.

And I have written on the subject a number of times, including here . . .

http://hotpinkwebsites.com.au/no-1-3-wealth-creation-myths

and here

http://hotpinkwebsites.com.au/heres-a-wake-up-call

The truth is that everything that generates energy-out, (in the form of money), requires some energy-in, (usually in the form of labour or money or some other resource).

Some input has to be exhausted to produce some output.

It’s basic physics . . . if this were not true, then no-one would have to work for a living LOL

Really?

OK ! Name any one source of so-called Passive Income, and I guarantee that there is some energy being put in somewhere to generate it.

Spruikers of business opportunities suggest that you can build passive income. But the reality is that those businesses do require ongoing input to grow, or even to mark time.

Proponents of real estate investment will suggest that you can build passive income. But the reality is that those properties require management and maintenance in order to continue generating income.

And owners of more conventional businesses might think that they have passive income because they no longer work at the “shop counter”. But the reality is that all businesses require management and maintenance to keep them running effectively.

It is the Law of Thermodynamics and Entropy.

The detailed explanation can be found here: https://en.wikipedia.org/wiki/Entropy

But a simple way to look at it is that the universe is in a continual state of decay and reverting back to “nature”.

It’s all around us . . . the fruit that you buy from the grocer is on a path of decay back to the earth whence it came. We apply electricity and a refrigerator in order to stay the process somewhat . . . but eventually it prevails.

Introduce Recurring Income

So after that pessimistic dissertation, what hope is there for business owners trying to grow their business?

Stop thinking about Passive Income
and start thinking in terms of Recurring Income.

Then start building the systems and structures that, with ongoing input, will continue to generate ongoing output (money) for you.

That is the foundation of all good businesses.

The only way to build recurring income in your business is to continue to add recurring value to your customers’ lives and their businesses.

There are some amazing examples of how Recurring Income is being applied in contemporary businesses, and I am going to write more about them in future articles . . . so stay tuned!