Imagine a life where you don't have to go to work.
You wake up in the morning and you have the whole day in front of you,
to learn new things, visit places, or lay in bed all day – all that while getting
paid and not having to worry about money.
Sounds ...too good to be true, right?
I mean If it's possible then no one would spend 8 hours at a job they usually hate.
But, most of the people do exactly that.
And it's because they don't believe that passive income is possible, or even if they do they
have no idea what passive income is and isn't.
Let me address what my interpretation of passive income is, and that's not the traditional/banking
definition of passive income – what I mean is that your income is earned through a passive
activity, meaning continuing to generate revenue long after the initial setup.
And if you think that passive income can be achieved without setting up a profitable system
in the beginning or that it's easy money and you won’t have work hard, well then, I guess
this video is not for you. Aaand you can probably leave.
Passive income cannot be achieved overnight or even in a week, it is a long process of
delayed gratification, patience and working hard AND smart, but once it is set up correctly,
it can literally change your life forever, you'll be free to spend your days however
you like, and do what makes you happy.
Let me tell you a story about Bryan and Adam, a story about two video makers and how their
thinking and patience can be the only difference between working your whole life and a life
of freedom.
Bryan and Adam were two college friends, studying video production and editing.
They both loved making videos and soon enough they became close friends.
After a few years, they both graduated and Bryan started working for a video production
company where he created animated videos.
The company paid a hundred dollars for a single video.
And because Bryan was really good at this job he was able to produce new videos daily,
and got paid 100$ after each day of work.
Adam on the other hand was also invited, but decided not to work for the same company,
because while in college he watched some small YouTube channel talk about passive income
and decided to risk one year and give the idea a shot.
On the first day Bryan created a video and got paid 100$, Adam also made one video, but
instead of giving it to the company he uploaded it online.
The night before going to bed, he looked it up, and was surprised when he got paid 1$
from advertisements shown on the video.
The next day Bryan created another video, and got another 100$ bill, while Adam earned 1$
dollar from his new video, and 1$ from the video he posted the day before.
He was disappointed when he realized that his videos are worth a dollar a day, while
Bryan's videos 100$ a day.
Nonetheless he kept making videos.
What he didn't saw is that after a year, Bryan will have only 1 video that is worth 100$,
the current video he is making for the company, but Adam now has 365 videos each earning him
a dollar a day.
The difference... is in the ownership of the videos.
At the end Bryan will be left with nothing, if he stopped working, he will get 0$ the
next day, because he traded his time for money.
On the other had Adam has ownership of the videos, each one working for him, bringing
him a dollar a day – and if he stopped working he would still get money, because he OWNS
the videos.
If you do the math, after a year Bryan will have made 365 videos each worth 100$ which
equals 36,500 dollars after a year.
Adam on the other hand will have 1 dollar on the first day, 2 dollars on the second,
3 on the third and so on, on the 365th day he will earn 365 dollars each one of his videos
will make him a dollar that day, so if we sum it up and do the math, after a year
Adam will have 66,795 dollars.
Heck even if the videos only got him 50 cents a day, that’s 33,397 dollars, roughly the
same as Bryan but now he wouldn't have to work a second if he wanted and he would still
get money.
The best part about passive income is scaling.
Let's look at Adams scaling options.
At this point he owns 365 videos each paying him let's say 50 cents so that's roughly 182
dollars a day.
Adam can use those money to hire someone like Bryan and give him 100$ per video.
So, he would take a hundred from his earnings and invest them in his system so he could
make even more videos without touching a single thing, giving him even more passive income
with the option to hire more Bryan's.
In the free time Adam can improve his knowledge about videos, sharpen his talents, find his
passions, be happy and generally do what he wants.
And that is the underlaying message I want to get across.
It's not about telling you to start a YouTube channel, to make affiliate sales, or that
you can sell your music online.
It's about understanding the power of passive income and that it really is possible, but
also to understand that passive income is not for everyone.
You have to work very hard at the beginning, setting up the system, being patient, seeing
what's working and what's not, and sometimes you would even have to work for free as opposed
to selling your videos for 100$ every time you make them.
And even after you set up your system, passive income still needs some kind of maintenance
effort.
But without a doubt passive income is one of the best incomes you can have, because
you can set up indefinite number of income streams and there is no limit of how much
money you can make.
In the next video I will share more types of passive income, but for this kind of passive
income where you create something, like mobile application, music, photos, videos, books,
courses the key point is that YOU are the owner of the finished product, because that
will enable you to get paid for the rest of your life.
For example, if you write an e-book – you are the owner of the book and for every download,
guess what, you get paid.
The difference between writing a book about meditation and writing articles about meditation
for a company, is that at the end of the day – you are the owner of the book and the
company is the owner of your articles.
And yes, it's easier to work for a company, finish 8 hours of work go home and get paid
than to write a book, design the cover, upload it on different sites, market and sell the book.
But hey, no one said that creating passive income would be easy in the first place.
Now that you know what passive income is and that you can use it to create your perfect
life, in the next video I will share some of my favorite ideas on how to set up you
own passive income stream.
It's a list of ideas, some of which I used in the past and some of which I currently
use, so hit that like button, subscribe if you haven't already and I'll see you in the
next video.