The Top 5 Myths about
Passive Income Online
written by Irene
Isn’t passive income the dream of everyone nowadays? There are so many videos on You Tube about how you can build a sustainable online business and generate passive income with little to no effort. Or how you can become a millionaire overnight, quit your 9-5 job and spend the rest of your life travelling the world.
As a sceptic, I always found it hard to believe all those gurus proclaiming that I could also become that free of financial concerns millionaire with little to no effort. If that was the case, why did I struggle to build my online presence and it wasn’t until recently that I started gaining some revenue from my income streams?
Firstly, I’d like to make clear that I don’t believe in any form of 100% passive income.
Even if you happen to be the owner of multiple rental properties, you still have to manage them throughout the years. If you own stocks in the market, you need to watch the market closely. Nothing is sustainable on its own. So to make it short, I don’t like the term ‘passive’ at all. I think it would be more appropriate to talk about ‘semi passive’ or ‘low maintenance’ income streams.
Now, lets explore the Top 5 Myths, circulating the internet about making money online in a passive way and why you should demystify them very early on.
Myth # 1 : Passive Income streams require little to no work to build and are easy to achieve
Starting a new Business is not an easy alternative to working in a 9-5 job. While there are various online business models that can generate passive income eventually, setting them up is no piece of cake. It usually requires a significant amount of time and dedication. You will have to learn new skills like software or designing tools, get familiar with the basics of marketing and SEO, find solutions when you come across with a technical issue, even buy Online Courses related to your niche.
There is no way you can avoid the steep learning curve, which comes with expanding your knowledge and skills. Which by the way, I believe it’s a good thing.
We can’t make a true change in our lives if we don’t escape our comfort zone.
Myth # 2 : You don’t need to invest anything
It’s true that you can start an online business without investing all your savings. Opening an E shop selling digital products can be done with a small investment. Building your business site, requires having a hosting plan and buying a domain name which can be done with little money depending on what you are looking for. Writing on various platforms such as medium is almost free. Starting a YouTube channel is also free, but if you don’t own a decent camera and microphone, how exactly will you compete with the pros out there?
What I’m saying is that it is a low cost investment to start an online business with passive income potential, compered to that of opening a restaurant. In the second case you’ll have to rent a space, pay an interior designer, buy furniture and kitchen equipment, spend on advertising, hire employees and then open your business. But that doesn’t mean you can do it all for free, without investing a penny.
While some online business models have low initial costs, others may require a bigger investment. If you are serious about becoming a business owner, you have to make financial commitments.
Myth # 3 : It doesn’t require a lot of work to maintain Passive Income streams. You set it and forget it
Another myth about the so called ‘passive income streams’ is the ‘set it and forget it’ mindset, which couldn’t be more far from the truth.
If you assume that once you’ve established your passive income stream, it will run on autopilot and you’ll just have to check your bank account for revenue, think again.
In truth, your involvement in your business has to be constant and it’s the only way it can stay viable and grow within the years to come. You have to adjust as the markets change all the time and keep a close eye on your competitors, because you don’t want to stay behind.
While certain online businesses can become more passive in the future, getting to that point involves upfront work and active participation. Whether that is creating content, building an audience and an email list, setting up sales funnels, get involved with advertising and marketing your business. It’ s your responsibility to stay relevant to the market and offer your audience the best customer experience you can.
Myth # 4 : Anyone can do it even without any skills
There are a lot of passive income opportunities on the internet and are more accessible today than in the past. Does this mean anyone can start an online business? Of course not. It requires at least some knowledge in fields like web design or web development, graphic design or illustration, product design, content creation, digital marketing and much more. I am not saying you have to be an expert in all those fields, but some degree of knowledge is necessary.
In the process of building your business, you can outsource the set of skills you are not familiar with. But if you outsource everything, it will be a huge upfront cost for your business, which you don’t know if you’ll ever get back. Plus, you want to have control over it, so you need to know what you are doing. Relying on others won’t give you that power.
Myth # 5: You will not have to worry about money ever again
If you aspire to replace fully your day job income with passive income, you have to realise it’s possible, but won’t happen overnight. Becoming financial free with passive income streams, may take years to accomplish. Keep a long term perspective, plan your business steps carefully and be patient. It’s likely you ‘ll have to keep your 9-5 job for a long time before you feel confident to quit. And that’s OK.
If you are a beginner in entrepreneurship, or even if you’ve been trying it for a while, don’t fall into the trap of the ‘get rich quick scheme’ many people are trying to sell you.
Nothing is easy in the business field. All the successful people you admire, have put the work, the long hours, have tried and failed, had to change their path a couple of times before achieving success. A well-rounded approach to managing your finances, is crucial for your long-term security. Don’t put all your eggs in one basket. Diversify your financial plans.
I hope you got an idea of what to expect as a business owner. Avoid the myths, stay grounded and don’t give up with the first obstacle you’ll come across. Many people have done it, so can you.