423: Passive Income is a Scam. Click to Listen to Why.

Summary

Podcast Summary: The Heart & Hustle Podcast - Episode 423: "Passive Income is a Scam. Click to Listen to Why."

Hosts: Evie McLeod & Lindsey Roman
Release Date: March 4, 2025

In Episode 423 of The Heart & Hustle Podcast, hosts Evie McLeod and Lindsey Roman delve into the controversial assertion that "passive income is a scam." Through an engaging and candid discussion, they unpack common misconceptions about passive income, distinguish between different types of entrepreneurs, and offer practical strategies for building sustainable additional revenue streams. Below is a comprehensive summary of the episode's key points, insights, and conclusions.

---

Debunking the Passive Income Myth

Evie and Lindsey kick off the episode by challenging the prevalent notion that passive income requires minimal effort and can be effortlessly generated. They clarify that labeling passive income as a "scam" is not merely clickbait but a critique of widespread misunderstandings.

Evie ([02:26]): "Okay, so passive income is a scam that wasn't just a clickbait title. That is the truth. Technically."

They emphasize that the allure of passive income as a "get rich quick" scheme is misleading. Instead, passive income often demands significant upfront investment of time, money, and continuous effort to maintain.

Lindsey ([04:17]): "I also think passive income is a buzzword. And what a lot of people don't realize is not everyone who's selling that course is doing it passively."

Understanding the Types of Entrepreneurs

The hosts identify two primary categories of entrepreneurs who are drawn to the idea of passive income:

1. Overbooked/Burnt Out Entrepreneurs
2. Underbooked Needing Immediate Income

1. Overbooked/Burnt Out Entrepreneurs

These individuals are overwhelmed by their current workload and seek passive income streams to alleviate their time constraints. Evie and Lindsey outline the common pitfalls and misconceptions faced by this group.

Lindsey ([09:18]): "The first one is kind of the overbooked, maybe the workaholic type or just overworked person, burnt out maybe."

Key Insights:

• Misconception of Ease: Overbooked entrepreneurs often dream of passive income as a way to make money without additional effort, mistakenly believing it's a simple transition from active to passive revenue.

• Strategic Business Simplification: Before attempting to establish passive income streams, these entrepreneurs need to streamline their current operations. This includes raising prices, setting clear boundaries, hiring help, and automating processes.

  Evie ([11:01]): "You don't have time in my opinion to start a passive income stream right now in your drowning state."

• Creating Capacity: By optimizing their existing business, overbooked entrepreneurs can free up time and resources to gradually build and manage passive income streams without further burnout.

2. Underbooked Needing Immediate Income

This group comprises entrepreneurs who are not fully booked and require additional income to meet their financial obligations. They often view passive income as a solution to their immediate cash flow problems.

Lindsey ([15:51]): "The person number two in this scenario, the person who is currently coming who's like, I want passive income because I need money immediately."

Key Insights:

• Passive Income Isn't Instant: For underbooked entrepreneurs, passive income is not a quick fix. Building these streams typically takes months or even years, which doesn't align with their urgent financial needs.

• Alternative Immediate Solutions: Instead of solely focusing on passive income, these entrepreneurs should explore supplementary income streams that can provide immediate revenue while they work towards their long-term passive goals.

  Evie ([22:46]): "Can you think of an additional revenue stream? Whether it's 1 on this list or something out of left field that maybe we sparked an idea that you're like, I'm going to do that bootstrapping on the side."

Practical Strategies and Solutions

Evie and Lindsey offer tailored strategies for both types of entrepreneurs to navigate their unique challenges effectively.

For Overbooked/Burnt Out Entrepreneurs

1. Raise Your Prices: Recognize your worth and adjust your pricing to reduce the number of bookings, thereby managing your workload more effectively.

2. Set Boundaries: Establish defined work hours and limit the number of clients or projects you take on to preserve personal time and prevent burnout.

3. Hire Help: Delegate tasks by hiring virtual assistants or outsourcing specific functions such as marketing, editing, or administrative work.

4. Create Systems: Develop standardized workflows and utilize automation tools to streamline repetitive tasks, allowing you to work smarter, not harder.

   Lindsey ([13:49]): "Find ways to shortcut it, to automate, to use AI when you can, when it's smart to, to shortcut those, those times so that you're working smarter and not harder."

For Underbooked Entrepreneurs Needing Immediate Income

1. Freelance Services: Offer additional services such as editing, transcribing, or administrative support to other creatives or businesses.

2. Gig Economy Jobs: Engage in flexible part-time jobs like driving for Uber, Instacart, or Doordash to earn supplemental income.

3. Sell Digital Products: Create and sell digital assets like PDF guides, presets, or downloadable art on platforms like Etsy, ensuring they are well-marketed and aligned with your brand.

4. Leverage Existing Skills: Utilize your expertise in areas like blogging, social media management, or system setup to provide value-added services to others.

   Evie ([24:46]): "Be creative and think outside of the box. Have divergent thinking as an entrepreneur."

Building Sustainable Passive Income

The hosts stress the importance of aligning passive income pursuits with long-term business and personal goals. They encourage entrepreneurs to diversify their revenue streams thoughtfully and research extensively before committing to specific models.

Lindsey ([27:45]): "Align the business model to your ultimate, like, life goals, your business goals and your income goals."

Recommended Resources:

• Podcast Episodes:

  • Episode 237 with Zim Flores: Discusses eight different types of income streams.
  • Episode 124: Focuses on creating multiple streams of income and diversifying your business.

• External Podcasts:

  • Smart Passive Income Podcast: Offers comprehensive insights into various passive income strategies.
  • BiggerPockets Podcast: Primarily real estate-focused but also covers broader topics on investing and wealth-building.

• Memberships and Courses:

  • Morning Assembly V by Zim Flores: A subscription-based membership hub providing extensive courses on dropshipping, buying businesses, and more.

Realistic Perspective and Encouragement

Towards the end of the episode, Evie and Lindsey balance their critical stance with encouragement, sharing their personal successes with passive income to illustrate its potential when approached correctly.

Evie ([36:38]): "We have a passive income business that we established five years ago now and at the time of this recording. And we love it... it's expanding, the business is growing."

They liken building passive income to farming—requiring initial groundwork, continuous care, and patience before reaping the rewards.

Lindsey ([36:38]): "It's like farming. You don't just snap your fingers and you have a full field full of ripe produce... you have to figure out the work, tilling the soil, planting the seeds, watering the seeds."

Final Takeaways:

• Passive Income Requires Effort: Contrary to popular belief, generating passive income demands substantial initial effort and ongoing maintenance.
• Tailored Approach: Entrepreneurs must assess their current business state and personal circumstances to determine the best path toward additional revenue streams.
• Continuous Learning: Investing time in research, education, and possibly mentorship can significantly enhance the effectiveness of passive income strategies.
• Balance and Patience: Achieving sustainable passive income is a gradual process that necessitates balance between immediate needs and long-term goals.

---

Conclusion:

In this insightful episode, Evie McLeod and Lindsey Roman provide a sobering yet hopeful examination of passive income. They dismantle myths surrounding its ease and accessibility, offering nuanced advice tailored to different entrepreneurial situations. By emphasizing the importance of strategic planning, realistic expectations, and continuous effort, they empower listeners to approach passive income with both ambition and practicality.

Listeners are encouraged to rethink their strategies, invest in their current business optimization, and pursue passive income with a well-informed and patient mindset.

Transcript

[A]

You're listening to the Heart and Hustle podcast. We are your hosts, Evie McLeod and Lindsay Roman. Listen up folks. I have just one thing to say to you. Passive income is a scam and we're gonna get into it today, aren't we?

[B]

Yes. If you have ever thought I need passive income, I am so intrigued by this. I want to build out a passive revenue stream. Or you're just curious as to what our thoughts are and what the heck we could mean by that being a scam. You're going to want to listen.

[A]

It's going to be good. You're going to get a lot out of it. A lot of tough love, but also a lot of practical takeaways.

[B]

Yes.

[A]

So if you're a business owner of any kind that's wanting passive income, stay tuned.

[B]

Let's dive in. All right. Do you want to be a destination wedding photographer but you feel like you can't because you live in the frickin middle of nowhere? Like anyone. Relate. Just a few years ago we felt that hard. As two girls born, raised and starting our businesses in the smack dab middle of the Midwest, it took some serious strategy and planning to get booked as a destination wedding photographer. It wasn't easy, but it is possible no matter where you're based.

[A]

We're here today to give you the tools we learned through our process to help you pursue destination wedding photography. To do so, download our free guide six tips to break into the destination wedding industry for a pep talk and learn our strategies to get your business booked out the wazoo in places that you've been dreaming of for years. Go to theheartuniversity.com destination to grab the freebie.

[B]

Hey.

[A]

Hey. I'm Lindsay Roman.

[B]

And I'm Evie McLeod and we are family and legacy focused serial entrepreneurs and the founders of the Hart University, a business education company with a mission to help you thrive in your business and life.

[A]

Welcome to our Entrepreneur cocktail hour where business and marketing strategies meet faith, real talk and raw in life changing conversations.

[B]

At the end of the day, we are all in this together, figuring out how to navigate the ups and downs, the messy and the beautiful and everything in between. This is a community where you can come as you are, get inspired and walk away equipped to build a legacy filled life.

[A]

You're listening to the Heart and Hustle podcast.

[B]

All right, friend, we're diving in.

[A]

We're going to just dive in.

[B]

Deep end, let's go. Put on your floaties.

[A]

Okay, so passive income is a scam that wasn't just a clickbait title. That is the truth. Technically.

[B]

I was like, you're not a clickbait title. I was like, well, but, but it is kind of a little bit of a, A lie within the way that.

[A]

You'Re thinking about it is a scam.

[B]

The way most people view passive income is a mirage. That's how I would say.

[A]

How do most people think about passive income?

[B]

You. I think a majority of entrepreneurs, we think of it as a magic button that once we just find this button we are able to press it and just get money in without doing anything. Without doing anything or without very immediate yes.

[A]

I think people, not all people are under the illusion that you don't have to do anything. I think people think it's very quick and short and all of a sudden.

[B]

Get rich quick scheme.

[A]

Yeah. All of a sudden money comes and then you don't have to do anything else after.

[B]

Yeah.

[A]

And let's just paint a picture here. Like I think a lot of people, entrepreneurs, we're mostly going to be speaking to like creative entreprene entrepreneurs, photographers, service based providers in this episode. I think in that camp, when we think of especially moving from a service based spending time for money situation and we get either burnt out or overwhelmed, that that's not working. We think, okay, how can I make money easier? And we see a lot of people, especially in this industry making money through other ways, whether that's digital products or whether that there's just like a myriad of ways that you could make passive income. And they're like, oh wow, that person over there that has a course, I'm not, they're not having to go teach that course every single time it's sold so that I want to do that because that's faster and I'll make a lot more money because there's money in all those things.

[B]

I also think passive income is a buzzword. And what a lot of people don't realize is not everyone who's selling that course is doing it passively. Right. Like yes, they created the course one time, but do they need to update it? Do they have to launch it? Live launch every single time. And it takes a lot of marketing effort and a whole, you know, marketing run up Runway to sell it. And then they do, they have live coaching calls after. Like I think there's this misconception that additional revenue streams are always passive and that passive income is always passive from the start. I think that's the biggest misconception that I see.

[A]

Yeah. And I think our perspective on this episode is coming from A lot of past coaching students coming to us in that state of, like, feeling frustrated because they're like, I see so many people doing this, and I just want passive income. How can I do it now? Like, I want to start. I want to create a course right now. Or it doesn't have to be a course. It could be anything that's passive. I want to make presets right now. Or I want to do a PDF guide for copywriters. I want to do it now, and I want to sell it and launch it right now and make money right now and have money coming in now and forever without me doing anything.

[B]

I think that's the biggest thing is, is that's where I think the magic button mentality kind of comes in. Of, like, once I just decide on the idea, I just push the button and it all unfolds and it all happens. It's very instantaneous, and I just make money very easily.

[A]

But I think it looks instantaneous because it's not so visually trading time for money.

[B]

Yeah.

[A]

In the way that, like, if you book a shoot.

[B]

Yeah.

[A]

You're making that money and then you're going out and actively doing that thing.

[B]

Yeah.

[A]

And then you're coming home. Right. Like, it's. It's so. Or like outside of this industry, like, if you hire an interior designer, you are hiring them, you're paying them, and then they are coming to your house or giving you mood boards or like there. There's a service exchanged immediately in that moment. And I feel like it feels easier.

[B]

Yeah.

[A]

To see something be made once and then forever make money.

[B]

Yeah.

[A]

And we're not even saying that passive income isn't a thing that.

[B]

No, it. When we say passive income is a scam, it's.

[A]

We're.

[B]

We're being dramatic. And it is a little bit. And it is an amazing tool. I will say my husband and I have an amazing passive revenue stream and a passive income business that we established five years ago now and at the time of this recording. And we love it. And it has been amazing and it is expanding, the business is growing. But that's another thing. Yes, we have a passive income stream, but we also have chosen to make expansions to it that require time and money to expand it and to build it bigger. But passive income is not a scam in that it's impossible. I just think there's a misconception that it's like scamming people in their minds, that it's instantaneous, it's easy, and it's low overhead time and money. And that's just not true. Like most passive revenue streams take anywhere from two months to two years to start. And that's just talking about the time, that's not talking about money. Like most passive revenue streams require significant time and significant money to research, establish and get running and like rolling on its own to the point where it's passive. And that's where I think people don't understand. And they think that it's a magic button that can suddenly be giving them money without them putting in the time and effort or money, which just isn't the case. That's just not how most passive income works.

[A]

Yeah, basically passive income is not passive to start.

[B]

No.

[A]

Point blank.

[B]

Yeah. So we've noticed as entrepreneurs, but as entrepreneur coaches as well, working with a lot of service providers and creative entrepreneurs, we've noticed there are two camps that a lot of entrepreneurs fall in when they're intrigued with passive income. The first one is kind of the overbooked, maybe the workaholic type or just overworked person, burnt out maybe. Yeah, the service provider who is currently like drowning and wants to lighten their load by having money come in without trading the time for money because they're currently drowning, they're burnt out, their time is absolutely maxed out. So they get to the place where they're like, I need other income and I have no more time to give. And so there's this point where they're like, I need something else but I have no time to give to anything else. And that's a tough place to be in. But we'll talk about that. The other second person or the other camp that they would fall in is the under booked service provider who desperately needs more money now to pay their bills and isn't getting it from their main service. So they'd want to diversify to have other revenue options.

[A]

All right, so let's go to kind of unpack the person number one, the overbooked person or the burnt out person, if that's you, and you're finding yourself overworked, tired, and you're just like sick of trading time for money because you're burnt out. And you're like, I would love to have passive income streams coming in or, or do something where I work once and then it comes in regularly. Again, the work once and then it come in regularly is a little bit of a, of a false. What, that's, what's that called?

[B]

Mirage.

[A]

Mirage, I guess. Yeah, that's not the word I was thinking of, but that could work. But before we even. Yeah. Before we even go to that place. I want you to almost, you have to, I think, fix in my opinion, the current state of your business because right now you're overbooked, you're overworked, you have no time. You have no time. And what she just said of like passive income. You can't, it's not a button. You don't, don't just snap your fingers and then all of a sudd. You have a stream of income that's.

[B]

Coming in business that you are establishing that requires all of the same amount of work to establish a business.

[A]

Unless you're like having buckets of money and you like buy a business that's already managed by somebody and is actively profitable and you make no changes in that case.

[B]

Make no changes. That's the key.

[A]

Yes. And make no changes in that case.

[B]

Because most of the time if you're buying a business, you're buying it to make changes to make it better, to make it more profitable.

[A]

Agreed. Agreed. But I'm playing devil's adv here.

[B]

Little exceptions.

[A]

There are little exceptions. We're not speaking fully across the board. Like you could in theory, if you had 100k plus probably buy. Yeah. A really great business that's already profitable, that is managed by somebody else and you're just the owner and get profits, whatever. Okay, that's not what I'm talking about right now. If you don't have time.

[B]

Yeah.

[A]

You don't have time in my opinion to start a, a passive income stream right now in your drowning state. I think if you're a service based business in that situation you need to one, raise your prices because if you're overbooked and you're booking too much, that means you're in too much demand. That's a great problem to have. Not for you right now in this current state of burnt outness.

[B]

As you drown.

[A]

Yeah, as you drown. But we're going to get you out of that. So raise your prices. Get out of the cycle of rat race. The rat race. So raise your prices. And then I would start setting more boundaries because oftentimes I think what leads to burnout is entrepreneurs following what's fun or following what feels good or even following the money. And it's like, oh, more bookings things.

[B]

Great.

[A]

Awesome. And what happens is we lose the boundary on our personal time, like our personal family time. We lose boundaries on our calendar and our business starts to take over our life because we didn't uphold those boundaries. So some boundaries that I'm talking About are like work hours. Establish work hours and don't go outside of them. Limit your bookings. If you. I'm going to use photography example, but this could apply to any service provider. If you say, okay, I only want five bookings a month once I hit that, I'm not going above it. Even if a dream client comes along, I'm not going to go above it because I know for my sanity and health and personal life, it doesn't, it's not good once I hit above that number or whatever. Hire help. Hire help is a great one, especially if you are feeling burnt out and you're a solopreneur and doing it all on your own. Hire a VA girl, please. Hire a VA boy, Please like get help or hire even somebody to outsource sending to publications or outsource blogging or outsource Pinterest or outsource marketing to a social media manager. Outsource editing. Like there's so many things you can outsource. Again, I'm speaking in photography lingo but you know, it applies to most service providers. Hire help create systems. If you're doing things from scratch over and over again for every single client, find ways to shortcut it, to automate, to use AI when you can, when it's smart to, to shortcut those, those times so that you're working smarter and not harder. Um, and then once you get your life and your business I think cleaned up and having breathing room from the overworked hustle, those open free moments in your like schedule can allow you the time to slowly start building up those passive income streams. Because it's. We're not sitting here saying, oh, you're overbooked, you can't ever do it. No sucks to suck. That's not what we're saying at all. It's just that you have to, you have to have that space in your calendar. Because like we said the myth, passive income isn't passive at first. It's. It takes a lot of work and even sometimes it still takes work even beyond. Yeah, even if it's little, it still takes like check ins or, or fixing or management or. Management's a good word for it.

[B]

Yeah. Like it's still a business model for the most part. It still takes management, upkeep, whatever, depending on your, your business model. Like whether it's real estate, if you have you, you bought a home and you're renting to a tenant and they have a maintenance issue, like there's still check ins, you still like, hey, you're late on your rent. Like, there's still elements of like managing it, but obviously it's very different than like, hey, I'm a photographer and I'm going out.

[A]

Yeah.

[B]

Every day to shoot and then spend hours editing at home. It is a different business model, but there's still work involved. So if you don't have capacity to not only establish the business, but also then to manage it and maintain any maintenance that's required on the passive income stream, don't try to do it right now. You will, you will burn out further. This is not the moment for you to add more to your overstuffed plate. It will all fall apart. The whole plate.

[A]

Simplify first.

[B]

Yeah, like let's simplify and let's get that established first. So that's the person number one that we see very often in this scenario who's really intrigued by the idea of passive income is the burnt out, overworked entrepreneur who's like, something needs to change. And we agree. And passive income is an amazing opportunity and it is an amazing. I would encourage every entrepreneur to look into a passive income stream and to look into additional revenue streams. Absolutely. We love it, we're such a fan of it. But make sure you have capacity financially and time wise. And if you're in the place where you're drowning, figure out how to swim, get to the shallow end, put on floaties, buy a boat, whatever you need to do to get your head above water and keep it above water before trying to put more on your plate.

[A]

That was a beautiful analogy to what I said. That was just like a beautiful picture that illustrated that perfectly.

[B]

Came out of nowhere.

[A]

We love that.

[B]

I love it. Okay, now let's chat about the under booked. The person number two in this scenario, the person who is currently coming who's like, I want passive income because I need money immediately. Like, I need another.

[A]

Like, what I'm doing right now is not working.

[B]

Yeah.

[A]

The service that I'm providing, I'm not getting booked, no one's hiring me. So I would like to supplement the lack of bookings right now with like something on the side that's regular.

[B]

And for a lot of people, what I've noticed who are in this camp a lot of times when they say I want passive income or passive revenue, what they're really meaning is that's the eventual dream. Because for every entrepreneur I feel like it is, I want 10 more passive revenue streams. So I'm with you guys. That is a dream and I think that's very attainable to have one or More revenue streams. So I'm not trying to hate on that, but I think for a lot of entrepreneurs, especially the under booked person who's like, I need more revenue, they're meaning I want passive income eventually, but at this current moment I simply need an additional income stream right now.

[A]

Yeah.

[B]

And passive income, nine times out of 10 is not a right now scenario. There are exceptions of course, but most of the time passive income is not a right now. It either takes the time or significant money to establish.

[A]

Yeah.

[B]

And then it takes a while to turn profitable depending on where you're at and what business model you're in. So what I would encourage for the under booked person, the person who's like, I simply. Let me rephrase it. I simply need an additional income stream right now. Let's talk about that. We're going to give you some thoughts, some suggestions as you work towards the passive income. We're going to talk about simply an additional income stream right now that could help you in paying your bills, keeping your head above that financial, you know, water and feeling better about where you're at with your money.

[A]

Yeah.

[B]

To have the, the freedom and the space to breathe to be able to look into building out a passive income stream.

[A]

Well, because I think when you need money now, unless again you're the person that's buying the 100k business that's already managed by someone, but that's not you because you don't have money right now.

[B]

Right. Like, like probably.

[A]

Yeah. So it's, that is the state where I think a lot of coaching students come to us and they're like, hey, I would love to have money right now because I need to pay my. In like two months. Or you know, it's like, it's.

[B]

I have this thing coming up, I just got given notice and I'm about to leave my full time job in three, two months and I need, I want passive income and I want to like start in two months so that it makes up for my salary.

[A]

It's like what I think a lot of people, and this maybe just might be coming from the photography industry and it might even because we did that line of like we started as photographers and then we dipped ourselves into education and then, and then went, and then.

[B]

We head first into education.

[A]

Right. And then we went on that route and I think people see us doing that, they're like, I want to do it too. And it's not that you can't do it, you absolutely can. But I think a lot of times when they come to Us, they're like, okay, I want to, I want to start doing something that's passive. So I want to like make a course or I want to have a digital product in like two months. And I'm like, okay, great. Have, do people know that you're an educator at all? Like have you established that? No. And I'm like, okay, like, like there's just. And again, not that you have to have an established brand in all passive income streams, but for a lot of I think specific like education industry, I think you, you do a little bit to, in, in order to convince people to buy from you or to trust you, especially in the education realm. And so there's just an element of like when you want passive income. Now that's, that's not usually the case of what can happen. Usually it's like you can start slowly building that out now.

[B]

Absolutely.

[A]

But it's not instantaneous. So we're going to give you some ideas.

[B]

Two months to two years. Right. And that's obviously a very broad.

[A]

I would even say two months would be for someone that's already like established with a brand.

[B]

If you are loving what you're hearing on today's episode, then we wanted to share something else you might love. The Heart Shop. It's our digital resource online shop for creative entrepreneurship. The Heart Shop is your one stop shop for all of our online courses, luxury website templates, PDF guides, social media, graphic templates and illustrations.

[A]

If you've been at your wit's end with your website design and you don't know where the heck to create a high quality pricing or welcome guide to give your clients an incredible branded first impression. Ooh, we got you. We created the Heart Shop to serve you with the best tools and resources you need to successfully run your business. Just head to theheartuniversity.com shop and start browsing the goods. That's theheartuniversity.com forward/shop and we'll see you there. Want to know what both Evie and I use for our skincare? Our absolute favorite non toxic skincare products are without a doubt primly pure.

[B]

Yes. If you've been searching for a natural non toxic skin care company you can actually feel solid about using, knowing that the ingredients won't harm you and are derived from nature, then I'm not joking when I say that you need to try Primally Pure.

[A]

Evie and I have been using Primally Pure for our skincare for a couple of years now and we are legit in love. Like we love that every product has Minimal, safe, all natural ingredients that. I'm not joking, smell divine and make our skin look and feel healthy and beautiful.

[B]

Yes. Some of our favorite products that we've used from primarily Pure are their charcoal deodorant, the cleansing oil, their lavender complexion mist, and their clarity serum. Like every freaking product of theirs, we're not kidding, knocks it out of the park as far as quality and making our skin feel incredible.

[A]

For 10% off your order, you can use Code Heart and Hustle. That's all caps, no spaces at checkout. Using the link in our show notes, we know that you're going to love Primly Pure as much as we do. Again, that's Code, Heart and hustle for 10% off your order today.

[B]

Or, or you have the capital to invest. Like you, you go, you do rinse.

[A]

And you, and you hustle and you.

[B]

Buy an existing business or you invest in real estate. You, you know, you buy a rundown property and put a tenant in it, right? And you're making $200 a month in passive quote unquote income from a rental property. You know, like, yeah. So that's why I'm like, there's so much variety in that, right? Passive income can mean a million and one things. So there's a lot of room for flexibility and, and everything.

[A]

This is mostly going to be for like the creative or the photographer that finds themselves in the under booked situation that they're like, I need money now.

[B]

Yeah.

[A]

And so I need passive income now. And we're lovingly saying, okay, you can do that, but that's building towards that. Start building towards that in the meantime, because you need money now. Here are some options of what you can do. Instead of being like, oh, I'm just gonna pull a guide out of my ass and it's gonna be great. And I'm like, okay, will it, like.

[B]

Once you create it and announce it and have three people buy, is that passive? Is that actually going to meet the need that you need? Like that. Is that gonna work long term? Right? Which a lot of times it won't unless you've established or built up a plan of like, hey, I'm gonna create a template that I'm selling on Etsy or a downloadable art print that I'm selling on Etsy. And even that I've had entrepreneurs who are like, I tried it, I got like two sales over two years. Like, it just didn't work. There are ways to make it work.

[A]

For things like that. That's where I go back to like, you need to Have a solid brand pumping out content, being on it.

[B]

But if you're like creating like a really good downloadable like print and you sell it on Etsy and you just, it's a dang good product and it ranks really high and people are searching for that.

[A]

I feel like it takes work to rank really high.

[B]

It does.

[A]

You can't.

[B]

Also takes work.

[A]

Put something on Etsy.

[B]

What people are looking for, what's trending, what digital product do they need? How do you market it well? How do you write a good description? How do you have good product photos? If are you doing mock ups? Are you? And all of that's why I go.

[A]

Back to like research having your own brand. Developing an email list.

[B]

Yeah.

[A]

I think that's if you have a personal brand, that's the best way.

[B]

Yeah.

[A]

Is to build through content. Yeah. Maybe ads if you want. Or, or avenues like podcasts or YouTube or social media and an email list and build up like a brand that can support those digital products that can, like, I'm a good example. I, I, I mean, you do too. We both sell presets and we made those once and quite literally I haven't really had to touch them.

[B]

Yeah.

[A]

And they've just been selling since and that's really great. But I was able to do that because I had already established a brand that was wide enough that I don't have to do a ton of work to sell them. And people still buy them.

[B]

And every time you post your work, you are subtly selling them. Like it's a whole, that's a whole other marketing conversation.

[A]

And that's obviously one type of passive income.

[B]

That's. Yeah.

[A]

Not conclusive, but. Okay, we're gonna, I'm gonna let Evie take it away with ideas. If you're in that camp of under booked and you're like, I need money now.

[B]

Now I'm gonna be honest. We're gonna give you some bootstrapping. Like, let's just throw spaghetti at the wall. And maybe one of these ideals will spark something for you. So don't be offended if we say something and you're like, what the frick are they saying to me right now? We're being creative and we're getting in that entrepreneur mindset of like, I'm gonna do whatever it takes to make my dream come true to, to work towards this passive income while I'm doing this on the side. So if you are actively a photographer listener to us or a creative listener to us, this one's specifically for you. If you're like, hey, I'm a photographer. I'm not as booked out as I want to be. I have too much time on my hand. I am posting because I'm doing all this stuff on my business to really push it, but I still have additional time and I need more money. Edit for other photographers. Like reach out to friends, friends of friends. Post in a Facebook group. Post on your Instagram. Be like, hey, I have capacity to take on, you know, one or two other wedding photographers and help you edit through busy season because you're not in busy season right now, maybe, or your busy season isn't as busy as you want it to be. Take on that side. Work, edit for other photographers. This one's gonna maybe offend some people, but let's just put on our entrepreneur thinking caps right now. Hey, you get money, you need to pay some bills. Drive for Uber, okay? Be cautious if you're a woman. Just safety first. Drive for Instacart. Doordash. Like, like, I'm sorry. Just be creative and be like, how can I make money in a flexible position where I can choose when I want to work and work three days straight and make a ton of money or not work for three weeks because I'm suddenly my business picked up and I'm busy? Like, yeah, be creative. Do va. Work for other creatives. If you're like, hey, I'm really good at the admin and logistics side of things and running, you know, the back end, offer to help some and, and help set up some systems for them. At the very least, if you're not doing ongoing work, be like, hey, I have my workflows down in Honeybook. I know Honeybook. I just, I. My brain works that way. Can I help you set up yours and do a one off, like project with them, make some money. Blog for other creatives, transcribe.

[A]

This is.

[B]

We're getting creative guys, transcribing things for companies. There's websites like Rev.com taking surveys for companies. You get paid to do both of those things. You can do Those from home, swagbucks.com or inbox dollars.com like, be creative friends. Think outside of the box. Be like, if I'm in a position where I'm saying I need passive income, which of course would be the dream. But what I really mean at the root of it is I need additional income right now. Can you think of an additional revenue Stream? Whether it's 1 on this list or something out of left field that maybe we sparked an idea that you're like, I'm going to do that bootstrapping on the side as I continue to build towards my dream business and my dream passive income goal. Which is awesome.

[A]

Yeah. I love just the idea. I think, outside of this topic, be creative and think outside of the box. Have divergent thinking as an entrepreneur.

[B]

Yes.

[A]

Those things will always serve you well and will always help you grow and thrive as an entrepreneur.

[B]

Yes.

[A]

This last section of this podcast episode is going to be advice on passive income. And I want you to take this nugget and, and take it beyond the. The little comfortable box that you might have. And what I mean by that is I think a lot of creative entrepreneurs are thinking, okay, I want passive income. And you're. You're mostly thinking in your industry that you're in right now.

[B]

Yeah.

[A]

And so I almost want you to like, open the world and open the box and be like, what would it look like if I stepped outside of that? Not that you have to leave the creative entrepreneur industry, but what would it.

[B]

Look like if I didn't do something connected to the photography industry?

[A]

What if I researched real estate? We just had Cameron Philgreen on the episode and he literally did that. He literally went from a photographer to like a thriving real estate Investor. Investor with $5 million worth of real estate property that he's like, thriving in. And it's because he just started learning. And so again, it doesn't have to be real estate, doesn't have to be photography. It doesn't have to be a course. It could be whatever you want. But just put on your divergent thinking brain and be like, how could I make money and how could I live a passive. Or how could I create passive streams of income in different ways that provide for my family, provide for my future, my kids future, and really help me thrive as an entrepreneur? So in, in this, I'm gonna say do a ton of research on passive revenue streams. And so when I say that, I don't just mean look into, like course creation. Not that that shouldn't be one, obviously look into that. But don't just look into like, I think especially in the photographer camp, there's just like, oh, I'm just gonna make some guides. Yeah. And again, not that that's bad. We've done it.

[B]

Or like presets or presets.

[A]

Again, we've done it, but like, look into real estate, look into, like stocks.

[B]

Look into just all different arbitrage, like selling stuff on Amazon.

[A]

Literally a million things. There was. Me and my husband literally almost did this where we would buy. We almost did It. We didn't, but we were going to buy, I think, mason jars. I think it was like big mason jars from either. Was it Marshall? Not Marshalls. What's that called? T.J. maxx. Mustard. No.

[B]

Oh, what? Mustard.

[A]

No, that's absolutely not it.

[B]

Alibaba.

[A]

No, it's like, it's like a outdoor store.

[B]

Mark. Oh.

[A]

Oh, Menards. Ah, that's it. Menards. Anyways, we were gonna buy cheap. What's that called? Mason jars from Menards. And then arbitrage and sell higher on Amazon. People do that all the time. We didn't do that.

[B]

But that's an example of with stuff from like TJ Maxx.

[A]

Yes.

[B]

That are discounted and then buy them.

[A]

On Poshmark or like.

[B]

No, they'll sell them back on Amazon. Hire.

[A]

Oh, yeah.

[B]

It's a whole business.

[A]

So again, lots of divergent options. So research, research into different streams that interest you, that are smart for your family, for your lifestyle, for where you're at in the world of just like maybe geographically or just the stage of life that you're in. And just, just keep you an open mind as you do that with that.

[B]

Listen to podcasts, watch YouTube videos, buy a membership or course in either passive income in general or specific type of passive income that you're looking at, or invest in a mentor or coach who either has a good understanding of passive income in general or they have the specific business model that you're wanting to establish as a passive income stream. Be willing to, like, invest if you're really at that point ready to take it that seriously. And then one of the biggest things I would say too, with, with passive income specifically align the business model to your ultimate, like, life goals, your. Your business goals and your income goals. Like, don't just be like, oh, that sounds cool, or oh, every other photographer I know is creating presets. I should. Is that actually something that aligns with what you're ultimately wanting or you like, hey, I'm probably going to step out of photography in the next year or two and creating presets right now and working towards that and like establishing it and marketing it when you're not going to really be able to have the business that promotes it alongside it in a year. Is that aligned? So even simple things like that. So really like sit and assess. Does this ultimate goal align or this passive income align with my ultimate goal in my life? One thing that we wanted to say with all of this, some recommendations, because there is, there's a million and one resources out there for you to Learn. And we want to encourage you to dive into all of them. But we're going to give you a starting point today. So we have a couple of passive income episodes that you should go back and Listen to. Episode 237 with Zim Flores. She's a good friend of ours. She's a queen of passive income. She's amazing.

[A]

Literally the queen.

[B]

She talked about eight different types of income streams and how to build passive revenue. So that's episode 237. We'll have these linked in the show notes. And then episode 124 is creating multiple streams of income and diversifying your business. That's another episode that Lindsay and I did. And then a couple of podcasts that we would recommend at least to get you started is the Smart Passive Income podcast and Bigger Podcast podcasts. They have BiggerPockets has several BiggerPockets money. BiggerPockets real estate. They have several. They tend to be a little bit more real estate focused. But the BiggerPockets Money podcast also has a lot just about investing and passive revenue and building wealth and bigger pockets is amazing. They have a lot of really good resources on there. So I would also highly recommend.

[A]

And then lastly, a membership from our friends in Flores who we just mentioned on the show. Her membership is called Morning Assembly V. Her company wealth and honor. Me and Andrew honors. Oh, sorry.

[B]

Oh, yeah. What did I say?

[A]

Well, wealth with honors, but it's called Morning Assembly. Me and Andrew were in it for about a year. I think. I think it's a little pricey. I think it's 250amonth. But it' because it's basically like a subscription membership hub where she has, I think like five different courses on creating an entire like drop shipping product company. You can do like she has. I don't.

[B]

I'm not buying businesses, right?

[A]

Yes, there's a course on buying businesses. It's like so meaty and so heavy. And then she also has a resource like a Facebook group with it where she has live calls with her and other experts.

[B]

Yeah.

[A]

And so it's, it's really valuable if you're wanting to step outside your comfort zone and learn new things and new skills on entrepreneurship world. Highly recommend her. She is just phenomenal. She's a world of knowledge.

[B]

Brilliant. She's so good, a gem.

[A]

And if you go back and listen to her, we've had her on twice on the show. She is just absolutely brilliant. So those are our recommendations.

[B]

Just to get you started.

[A]

Yes, just to get you started for sure.

[B]

There are a million and one out there. So just encouraged, go do your homework.

[A]

And in wrapping up, we just want to give you some love because the. I think the beginning of this episode could feel like, wow, they just pooped on my dreams.

[B]

You know, they wait on my parade.

[A]

Yeah. It's not that you can't do passive income. You absolutely can and you should. It's not a scam.

[B]

We're being dramatic.

[A]

We'll be being dramatic. It's a scam in the way that it's not instantaneous for no work at all.

[B]

Freaking buzzword. And that's the scam. People think like, oh, they just started a passive income stream overnight. That's the scam.

[A]

Yeah.

[B]

It's not a thing. It doesn't happen.

[A]

It takes a lot of work up front and oftentimes continual work to make a lot of money.

[B]

Yeah.

[A]

Case in point, like, we don't actively, I feel like market in the way that we used to like our courses. Right. Like, we used to do live launches, and so we don't make as much money as we did back when we, like, are we actively pushing them? And obviously there's evergreen models, there's live launch models. But in general, passive income streams usually require some sort of effort updating or even putting ads out there into different ecosystems. Yeah. Updating launching marketing plans or money to.

[B]

Pay someone to do that work.

[A]

Yes. So either time or money is required. It's not fully passive. So that's kind of the elusive lie that we wanted to smash for you today, but also provide you with helpful resources to give you a kickstart in knowing how to proceed, how to get where you're going and ultimately get to your passive income goals.

[B]

And I also just want to encourage, like, I know we kind of rained on some parades today. In some sense, we like, hopefully dismantled the scam that is out there and kind of like misunderstanding the mirage that is circulating. But I do want to encourage. There are ways, like, my husband and I have a passive. A pretty dang passive revenue stream that we make multiple six figures a year by hardly like any work compared to the majority of most business models. And we love it. We've had it for five years. It's incredible. It's an amazing business stream for us, a revenue stream for us.

[A]

Us.

[B]

It's perfect. And we are continuing to expand on it. So I just want to encourage. It is possible, like, Lindsay has a silent business too, that she and her husband are actively in the. In the process of, like, building and expanding and like, it's amazing is passive revenue is a powerful tool for entrepreneurs to invest in, to dive into, to research, to spend invest time and energy into. So I don't want to discourage you from doing it, but I do want to set a realistic expectation that it does take time and it does take time to build, to research, to fully understand which business model you want to get into and to be able to get the full like harvest. It's like the, the full analogy of like farming. You don't just snap your fingers and you have a full field full of ripe produce for you. You have to figure out the work, tilling the soil, planting the seeds, watering the seeds. It's very similar. And then you get to a point, hopefully with that business model where you just can come in and reap the rewards. But you have a system set up that's doing all of the backend and building it for you. So it is possible. Absolutely. We're not trying to discourage you from that, but hopefully gave you a little also dose of reality and encouragement of maybe some help that you need right now of slowing down building systems or just getting another additional revenue and bootstrapping it for a short season.

[A]

Hopefully you got a lot out of this episode. We love hearing feedback, so we want to know your thoughts on this episode. Hit us with the DMS or go into our Facebook group and we would love to hear from you on your thoughts on passive income as well. But in the meantime, we will see you on the next episode.