It sounds so appealing. “Passive Income.” Make money sitting on the couch, because your website has turned into a cash register or profit machine – all you need to do is push the right buttons.
In these times, when a savings account in an American bank is lucky to earn 1% interest, do you really think having a “Profit Launch Machine 2013” or “Massive Online Income 3.0” product is going to whip you into a serious amount of financial shape?
BTW, we made those names up – but they could very well be names of products launched by Internet Marketing Gurus.
It’s 2013: There is no such thing as “Passive Income.”
Don’t believe the hype – even a “system” isn’t foolproof.
For instance, take the Multi-Level Marketers – “MLMers” – and look at some real numbers. These figures are from the Sunday, February 10, 2013 edition of the Chicago Tribune, and were provided to the Tribune by Herbalife, a direct selling business.
Quoting: “Of 493,862 Herbalife distributors, 434,125 did not receive commission in 2012…”
The chart goes on to show that only 194 of the 493,000-plus distributors made more than $250,000 in commission.
AND, endemic to both this discussion and this web page, 4,261 of these distributors made more than $10,000. That is LESS than 1% (roughly 0.863%). – source, Chicago Tribune.
(It should be noted that I’ve said plenty on the “Direct Selling” industry and some of the really questionable practices by one in particular, on the Area 224 site. Here’s a piece called “Marketing Without a Conscience.”)
Back to Herbalife – folks swear by the products, and, to be fair, the Tribune graphic also tells us that 39,151 distributors did make between $1 and $1,000 last year. And you do see people driving nice cars and living a good lifestyle because of MLM.
So yes, it CAN happen. But the odds…are not in your favor.
Part of the inspiration for this site is an attempt to shine a real light on those things that CAN work for you. But those things often require a heavy dose of hard work.
The Internet has made things a little easier – the hard work doesn’t have to involve building things with your hands or heavy machinery – but that doesn’t mean that the elements of TIME and SMARTS are all of a sudden unimportant.
What about the “Smart Passive Income” guy?
Glad you brought him up. We find him inspiring, and we think his approach of “radical transparency” is pretty darn cool, too.
The dude works his butt off.
While he’s making a nice income, his experience is definitely part of that 1% – of those who work entirely online in “internet marketing” and make really nice bank.
Getting to the point where you have multiple streams of income is great – but working your way up there takes time and smarts. And the income is not entirely passive – you have to keep working at it, whatever the “it” is.
Again, this site exists to help you make sense of savings, spending and earning – with the goal of putting an extra $10,000 in your pocket each year. In the days to come, we’ll talk more about some ways you can make that happen. BUT, and we can’t stress this enough, there’s WORK involved.