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 . . .
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
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!
But in the meanwhile, work on getting your head around the idea that Passive Income does not exist.
By the way . . . here is the article that I was reading:
Well, that is quite simple really!
Watch this short VIDEO
No Such Thing as Passive Income
Doctor Who CD Review: The Entropy Plague
What should you do now?
- Get your head around the idea that Passive Income does not exist.
- Start thinking about how to continually add value to your customers.
- Want some help or ideas? Just contact us at Hotpink Websites now.
Only entropy comes easy.
~ Anton Chekhov
Remember – Passive Income is horse-shit