What “passive” really means.

I’ve gone through a lot of posts, comments, and questions on this sub, and I wanted to share my perspective.

Some people on this sub seem to think “passive” means “easy” or “free”. Nothing is further from the truth.

There is no such thing as truly passive income, in the sense of having something in place that just generates money with no work required.

Clickbank Promo Tools

The real meaning of “passive” is that the revenue is not directly tied to the hours of work put in.

A typical job (active income) paying $10/hr gives you $200 for twenty hours of work, and it stops there.

Passive income means you might only get $2/hr, but it’s making money 24/7, even if you’re only putting in 20 hours per week. But if you stop putting in those hours, the amount per hour will dwindle away to zero.

While this sub seems more directed to small startups, there are plenty of passive income examples in big business. When a bank earns interest on a loan, when a studio releases a movie, casinos, etc. They all put in major investment upfront, then get paid passively in return, hence the term “Return On Investment” (ROI).

For us normal people, it usually means countless unpaid hours of setting up an e-commerce store, building a youtube channel, etc – Massive amounts of unpaid work in the hope of generating passive income in the long run. Thing is, all of these ventures require upkeep; Hours of effort and possibly money spent.

Nothing is truly 100% passive. Nothing is truly free.

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