The Value Component

You are NOT done reading this post until you’ve set your
passive income goal and have written it down. If you haven’t
done this yet, do it right now.

Prepare to succeed. Expect to succeed. Know that once you’ve
set this goal, you’re going to achieve it.

And if you’re going to achieve it, then you need to start shedding from your life
whatever would otherwise get in the way of your goal. Whoever can’t handle it,
drop them.

This will create space to invite much better relationships with people who
will support you on this path. The dead weight must be shed, so that positive support
can come through.

OK, on with the show.

Now that we’ve covered setting your passive income goal and
a bit about the mindset of passive income, let’s explore the
details of how to actually create passive income streams. We’ll
start out fairly high-level here and then drill down into the
specifics in future posts.

Here are the 3 basic parts of an income generating method:

  1. Value creation
  2. Value delivery
  3. Payment

Notice that these same 3 aspects can be applied to any basic
income generation method. When you work at a regular job,
for instance, you’re probably going to create and deliver
something of value to your employer, and then you receive
payment for it.

So what’s different about passive income? The difference
stems mainly from the second aspect: how value is delivered.

When you generate active income such as with a regular job,
your value delivery is usually done just once. Whatever work
output you’ve created gets handed over to your employer.

The same goes for contract work. You do some work for a
client (value creation), hand over that work (value delivery),
and get paid.

With a passive income strategy, however, the idea is to deliver
this value multiple times. Then you get paid multiple times,
once for each delivery.

So the heart of a passive income strategy is found mainly in
the approach to delivering value.

The words “passive income” suggest that it’s the third aspect
(payment) that defines the difference between passive and
active income, but the main differences are usually found in
the value delivery methods.

With an active income method, you hand over your work
product once and get paid for it once. With a passive income
method, your work product is delivered multiple times, and
you get paid multiple times.

The passive element means that this value is being delivered
without your direct personal effort. So you’re using a method
to get your work output into the hands of multiple customers,
but you don’t have to be the one personally delivering it. For
example, when I publish a new article to my blog, it gets
delivered to people all over the world automatically, but I
don’t have to personally send it to everyone. The value delivery
is automated.

Now here’s a good question to ask yourself: Why do you only
have one customer?

A person with a job is just a business owner who sells to
only one customer. If you take a passive income strategy
and apply it to just one customer at a time, you have an active
income strategy. One boss. One employer. One client at a time.

A person who generates passive income usually prefers to
deliver value to multiple customers simultaneously. Another
option is to repeatedly deliver value to the same customers
over and over, but without having to create that value anew
each time. A good example of this would be renting out property
that you own. You can generate passive income this way even with a
single customer since that customer can keep paying you rent
every month.

When people shift from an active income to a passive income
mindset, they usually start thinking about how to deliver value
to more people. Instead of having just one customer for your
work output, why not have 10 customers… or 100… or 1000?
Why not have 1,000,000 customers?

How many people are you capable of helping?

While you ponder that, be sure to check this out.

Set Clear Income Goals

Having a clear and specific goal helps me transition to thinking
about the “how”. Now I can start pondering ways to do this.

This also helps me rule out what I can’t do to create this income
stream. I can’t just do more public workshops or paid speaking
since that’s active income. I want to set something up once and
have it generate monthly income for at least a decade.

What happens if I don’t make the deadline? Nothing. I’ll set a
new deadline. The deadline is a focusing mechanism. I could
create a new passive income stream within a couple weeks if I
want to. And I’ll probably create other streams along the way that
I don’t blog about. But for this stream, I want to take it slow and
explain the process in detail, so you can follow along. But I also
want to keep moving towards some kind of release. I don’t want
to get stuck in perpetual idea mode.

The key to goal setting is to get into the habit of setting and
achieving goals. It’s not to set aggressive targets that you never
reach. You can always set a bigger goal later once you achieve
the original goal.

Sometimes I’ve set a big goal with a 2-month deadline, and I
achieved it during the first week or two. So I celebrated that.
Then I set a new goal with a new deadline.

As long as the goal seems motivating to you and it helps you get
into action, then I’d say it a good goal for you.

My suggestion would be to set a goal something like this:
I create a new stream of passive income by December 31, 2020,
that generates at least $100 per month on average and endures
for a minimum of 5 years.

I think this is a very achievable goal for most people. You don’t need
your own website to earn this much.

Now some people will blow this goal out of the water; it will
be way too easy for them. Other people will find it a serious
challenge. Feel free to adjust the goal to something that feels
good to you.

If you were to achieve the goal above, you’d put at least $6K in
your pocket, but it’s not the amount that matters. The real aim
is for you to learn how to create a $100 per month stream of
passive income. Once you learn how to do that, you can surely
do it again. Do it 10 times, and you’ll earn $60K passively.

Once you learn how to earn $100 per month in passive income —
by actually doing it, not by reading about it — then it’s not that
difficult to learn to create bigger streams. So instead of creating
10 streams that collectively generate $60K, you might learn how
to earn that much with just one or two streams.

As you continue to develop your skills in this area, you’ll discover
how to earn larger sums with fewer streams and less effort. If one
stream dies, you’ll also know how to replace it with a new one.

I’m pretty comfortable creating streams that earn around $50K per
year. When I had third-party ads on this website several years ago,
one of those streams was earning more than $100K per year. Once
you get the hang of this, I think you’ll find it a fun challenge to
create new streams of income and to experiment with different

If you want more long-term financial security, you won’t find it in
the money or even in the streams of passive income. You’ll find it
in building your own knowledge and skills. You can take away all
my streams of income, my website, my assets, etc, and I’ll be able
to recreate the same level of financial abundance in a relatively
short period of time because I already know how to do it.

This is what I want for you as well. I want you to learn how to do
this, so then you’ll always have that option available. This know-how
will relieve you of much financial pressure. You won’t have to
scramble to get a job to pay your bills. You can just create more
passive income streams if you want more money.

While you ponder that, be sure to check this out.

Passive Income: The Long-Term Vision

So in evaluating my first passive income venture, was $10K
spread out over 10 years a good paycheck for 6 months of
work? No, I could easily have earned more money working
at a job. I was already earning more than that from contract
programming work before I wrote my first independent game.

The point of creating your first passive income stream isn’t to
achieve that big payout right away. The point is to learn how to
create passive income streams, so you can get better at it. Then
you can create bigger streams as your skills increase. Don’t expect
your first effort to be your masterpiece.

Today I can create new streams of passive income with a lot less
effort than I had to exert in the 1990s. The reason I can do this is
because I put in the time to learn how to do this, and I’ve continued
to refine my skills over time.

Don’t worry about how big your streams are in the beginning. If
you can create a $50 per month passive income stream this year, I
think that’s great. And it’s so much easier to do this today than it
was back in 1995 when I first started, so you have it much easier
than I did. Your cell phone is probably 100 times more powerful
than the computer I used back then.

There are also more opportunities out there day than ever before. 

Do set goals, but be patient with your progress. This is a skill that
will benefit you your whole life. Even if you work on this for 10
years, there will still be plenty more to learn.

While you ponder that, be sure to check this out.

My First Passive Income

Other than earning interest on my savings account, my first real experience with long-term passive income was when I wrote and self-published a computer game for MS-Windows. I think I released it in 1995. It was a simple side-scrolling shoot-em-up game. I did the programming and artwork for it myself (I wasn’t much of an artist though), and my friend at the time did the music and helped out with the sound effects.

The game didn’t sell particularly well. I put it up on my website, by my website had virtually no traffic. I also uploaded it to a bunch of free download software sites. I had a free demo with a couple of levels, and then people would get more levels if they bought the full version. Initially most of my sales came from people finding the demo on a game download site, and the demo would refer them to my website to buy the game.

I opened a Post Office box and started receiving mail orders for the game. Later I got a merchant account, so I could take credit card orders. Then I started accepting online orders. Eventually I set things up so that orders could be processed and fulfilled automatically.

On average I earned about $75 per month from this game. I didn’t do much in terms of marketing, other than posting it on my website and submitting it to those download sites, which was a one-time effort. Once the game started selling, I moved on to other projects.

This was a Windows 3.1 game with a fixed 640×480 resolution. It was strictly 2D, so there were no fancy 3D graphics or anything like that.

A year after I released it, the game was still earning about $75 per month.

Five years after its release, it was still earning about the same.

Ten years after its release, it was still earning about the same.

I varied the price of the game over the years, testing $9.95, $14.95, and $19.95. It earned roughly the same amount of money regardless of the price. I could sell 10 copies for $10 each or 5 copies for $20 each.

The game was initially available on 3.5″ diskettes, then on CD-ROM. More than 90% of the customers bought the instant download version.

I also did some licensing deals for this game with LCR publishers (LCR = low cost retail). These publishers found me as a result of finding my game on some download site. They’d put together collections of cheap games and sell them on CDs for under $10. I didn’t earn much money from these deals, but they gave my game wider distribution, and every copy included a link to my website.

Occasionally the game got some special attention, and there was a surge in sales where it might do double sales for a month. So overall it probably earned in the range of $10-15K over its lifetime.

It took me about 6 months to write and release this game. I had a lot to learn, so it was slow going. I got much faster as I learned and practiced. Writing a similar shoot-em-up game in 1998 only took me about 2 weeks, including the design, programming, artwork, and sound effects.

Eventually I released three more games at about the same level of quality. And again, each of these added another $75 month in passive income, so with 4 of these titles, I was up to $300 per month.

Finally I got smart and spent 6 months creating a much better game and put more effort into marketing it. It did $500 in sales its first month and was up to $2K per month a few months later. I kept building it up from there with two expansion packs and a deluxe version that sold for $24.95. The game did very well and dwarfed the results of my previous games. I also did more licensing deals for it, including one that had a minimum guarantee of $5K per month just from that one source.

I developed this hit game with a $0 budget. I did the design and programming, the artist worked for a percentage of royalties, so I created a passive income stream for him.

Then I went on to license and republish games from other developers, which created new passive income streams for them and me. Eventually I built up a suite of about two dozen games, which means two dozen streams of mostly passive income. Some streams were pretty good. Others were just a trickle.

In 2006 I finally took my games off the market when I shut down my games business. By this point I was earning so much more from blog that I didn’t want to divide my focus by keeping my games business going. But the passive income stream from these games helped me launch my personal growth business. My games income covered all my expenses while I got my other business up and running.

While you ponder that, be sure to check this out.

𝗧𝗵𝗲 𝗥𝗲𝗰𝗶𝗽𝗲 𝗳𝗼𝗿 𝗮𝗻 𝗜𝗿𝗿𝗲𝘀𝗶𝘀𝘁𝗶𝗯𝗹𝗲 𝗢𝗳𝗳𝗲𝗿

For the most part, people are genetically coded the same way. Here is what we know for sure about people:

  • People are drawn to blood and misery faster than they are to good news. That’s why most of the headlines in my ads are negative. Show people a negative and they seek to survive the negative by learning about it.
  • People like people who are like themselves. It’s call rapport. Your first goal should be to get the reader to nod their heads and say, “this guy is talking about me.” You accomplish that by being the reader. In my copy, I’m identifying with every networker’s worst nightmare—things I know they have felt before.
  • People will do more to avoid pain than to gain pleasure. That’s why I don’t generally advertise the pleasure. Because I know the genetic code of people, I gain their attention by identifying and highlighting their pain. Based on people’s preconditioned disposition (to avoid pain) they have NO CHOICE but to read my stuff.
  • People buy through emotional impulses before they begin to sort information logically. It’s easier to tap into a person’s subconscious when they “hear” your voice (including your writing voice) but they cannot see the face who is speaking. That’s why all hypnotists will ask you to close your eyes when they are trying to elicit a reaction.
  • People HATE to be wrong. That’s why if you put additional links and resources in your body copy, people will not be able to RESIST the temptation to “challenge” their own belief in what they just read, so they will go through all of the information options for one reason: To VALIDATE themselves.
  • People will do almost anything to avoid making a BIG decision. They also HATE change. That’s why I like to offer a price that is lower than the perceived value. People will feel compelled to order just so they don’t lose out on the phenomenal deal. In the words of Vito Corleone—make them an offer they can’t refuse.

So what makes people say “Sign me up?” It’s human nature to take the path of least resistance. That’s why we invented the hammer, the wheel, electricity and every other convenience know to man. And any good automated marketing system is considered a convenience (think Holy Grail) to many networkers.

Moral of the story: Give value, establish rapport, and alleviate pain and people will usually feel compelled (law of reciprocity) to buy from you. 

While you ponder that, be sure to check this out.

Your Passive Income Goal

OK, before you move forward in your journey toward passive income, let’s first set a clear goal for what you want to accomplish.

Do not close your browser window or move on to something else until you’ve set a clear and specific passive income goal.

No feeble excuses. No vacillating. No “I think about it later” B.S. And please no lame ass “I want more money” vague answers.

Whatever excuse you come up with as to why you can’t set a clear goal right now, we both know it’s stupid, so let’s not even go there. Not setting a goal is a waste of time.

If your actual desire is to create a new stream of passive income, then let’s make sure your goal includes 3 aspects:

  1. How much money you want to earn per month from your next stream of passive income (specific dollar amount)
  2. How long you expect that stream to last (number of years)
  3. Your deadline for receiving your first month’s income from that stream

This isn’t your ultimate goal we’re talking about here. It’s the goal for your first (or your next, if you’ve done this before) stream of passive income.

If you have something different in mind that doesn’t really fit the parameters above, then by all means set the goal you feel is best for you. At the end of the year, when other people are enjoying their new streams of passive income, you can see how your own goal worked out.

The idea is to set a goal that’s motivating but that’s also believable for you.

If you’re telling yourself that you can’t earn any passive income because it’s too much for you, then your imagination needs work. You could put $100 in a free savings account and earn a trickle of passive income each year for decades. So don’t be lazy here. Don’t let yourself off the hook. Set a goal.

Goal setting is a skill that takes practice. If you fumble this initially and set a goal that’s too big and unbelievable for you, you won’t achieve it. If you set an unrealistic deadline, you’ll blow the deadline. How do you know what’s realistic? You calibrate with practice, just like you learned to walk and talk.

I don’t expect your goal to be perfect. That isn’t the point. The goal is just the first step to get you moving forward and taking this seriously. And the ultimate goal is to get good at setting achieving your goals. This means you have to risk making mistakes in the beginning.

As the saying goes, There never was a winner who wasn’t at some point a beginner. So begin by setting a goal.

While you ponder that, be sure to check this out.

Mine That Bird

Why do you think most startups fail? It’s because the people running them have never run a business before and have no idea what they’re doing.

I’ve run a few in my day and just built a low 5-figure consulting business in less than two months, so I think I’m qualified to speak on this. I’ve also eaten shit for many years and failed miserably a few times as well.

Let’s get down to it.

What’s the secret to starting a business?

Two words: do it.

Yeah, it’s that simple. Nobody cares about your idea, your business plan or your executive summary. In order to have a successful business, you need to first have a business.

There’s a lot of procrastinators out there. A lot of dreamers.


I was once one of them. I couldn’t decide what I wanted to do. I read too many Warrior Forum threads and suffered badly from Shiny Object Syndrome.

But eventually I figured it out. Crap, where was I going with this? Oh, yea, just focus and just do it.

Do you think winning and succeeding is impossible? Thoroughbred racehorse Mine That Bird didn’t think so, as you’ll see in this Kentucky Derby replay. Nothing was going to stop this horse from breaking through the pack and winning the race in one of the most stunning finishes of all time.

And nothing will stop you from creating the life of your dreams either, once you suck it up, get some skin in the game and just freaking do it.

While you ponder that, be sure to check this out.

Soar Above the Crowd

You have to create extraordinary value for others before you generate extraordinary wealth.

Harvey Mackay (multi-millionaire) tells a wonderful story about a cab driver that proved this point.

He was waiting in line for a ride at the airport. When a cab pulled up, the first thing Harvey noticed was that the taxi was polished to a bright shine.

Smartly dressed in a white shirt, black tie, and freshly pressed black slacks, the cab driver jumped out and rounded the car to open the back passenger door for Harvey.

He handed my friend a laminated card and said: ‘I’m Wally, your driver. While I’m loading your bags in the trunk I’d like you to read my mission statement.’

Taken aback, Harvey read the card.

It said: Wally’s Mission Statement:

To get my customers to their destination in the quickest, safest and cheapest way possible in a friendly environment.

This blew Harvey away.

Especially when he noticed that the inside of the cab matched the outside. Spotlessly clean!

As he slid behind the wheel, Wally said, ‘Would you like a cup of coffee?

My friend said jokingly, ‘No, I’d prefer a soft drink.’

Wally smiled and said, ‘No problem. I have a cooler up front with regular and Diet Coke, water and orange juice.’

Almost stuttering, Harvey said, ‘I’ll take a Diet Coke.’

Handing him his drink, Wally said, ‘If you’d like something to read, I have The Wall Street Journal, Time, Sports Illustrated and USA Today.’

As they were pulling away, Wally handed my friend another laminated card, ‘These are the stations I get and the music they play, if you’d like to listen to the radio.’

And as if that weren’t enough, Wally told Harvey that he had the air conditioning on and asked if the temperature was comfortable for him.

Then he advised Harvey of the best route to his destination for that time of day.

‘Tell me, Wally,’ my amazed friend asked the driver, ‘have you always served customers like this?’

Wally smiled into the rear view mirror. ‘No, not always. In fact, it’s only been in the last two years. My first five years driving, I spent most of my time complaining like all the rest of the cabbies do.

Then I heard Wayne Dyer, on the radio one day.

Dyer said that if you get up in the morning expecting to have a bad day, you’ll rarely disappoint yourself. He said, ‘Stop complaining!

Differentiate yourself from your competition. Don’t be a duck. Be an eagle.

” Ducks quack and complain. Eagles soar above the crowd.”

‘That hit me right between the eyes,’ said Wally. ‘Dyer was really talking about me. I was always quacking and complaining, so I decided to change my attitude and become an eagle. I looked around at the other cabs and their drivers.

The cabs were dirty, the drivers were unfriendly, and the customers were unhappy. So I decided to make some changes. I put in a few at a time. When my customers responded well, I did more.’

‘I take it that has paid off for you,’ Harvey said.

‘It sure has,’ Wally replied. ‘ in my first year, I doubled my income from the previous year. This year I’ll probably quadruple it.

I don’t sit at cabstands anymore. My customers call me for appointments on my cell phone or leave a message on my answering machine.

If I can’t pick them up myself, I get a reliable cabbie friend to do it and I take a piece of the action.’

Wally was phenomenal. 

He was running a limo service out of a Yellow Cab. 
The rest of the cab drivers and marketers are quacking like ducks.

Wally the Cab Driver made a different choice.

He decided to stop quacking and start soaring like eagles.

While you ponder that, be sure to check this out, HERE.

A Money Mindset

The reason why money is so inherently important to those of us on a quest for it is that it gives us instantly quantifiable feedback as to where our energy actually is, at this moment. That’s why so many so-called spiritual gurus are so phony. In pretending to hate the idea of money, living as they do away from it and opposing it whenever possible, they can more easily kid themselves about achieving some kind of “personal fulfillment.”

You can clearly see the incongruity between that which the mind believes and that which is real in relation to money beliefs. It’s easy for one’s intellect to be completely opposed to one’s inner feeling. That’s why people think in terms of becoming abundant and years later are still broke. To achieve maturity as a person and make your money earning rewarding activities, you have to be aware of your feelings, and those feelings have to have a positive view of wealth firmly imprinted on them.

If you don’t have money, it’s still a simple process to create in your feelings an acknowledgement that what you do have is abundance and that the world is, in fact, an abundant place to be. As you being to affirm having rather than not having, bit-by-bit your feelings pull you into places where having is natural and suddenly you get it. Not just in your consciousness, but also literally.

Of course, developing that solid, resonating feeling of wealth means that you will have to go beyond fear around money. For any sustained fear that is held in your internal belief system for any length of time will quickly unravel any positive benefits you may have created through your affirmations of wealth. It’s a catch-22, really, for somehow you have to go beyond the uncertainties while you are still uncertain. It is a gradual process, but rest assured, it can be done.

 As you move up in your feelings, you will feel better about yourself, and you’ll be able to charge more. That of itself is an affirmation of how you feel, and sooner or later you’ll be dealing only with a better class of customer. You’ll do less work for more money.

Moral of the story: You have a divine right to choose whom you will play with and under what circumstances. By eliminating any energy drag, the positive things in your life will resonate faster and faster. 

While you ponder that, be sure to check this out.

The Path of Least Resistance

Network marketing is hard. Some would even say it’s easier to teach a turtle to tango than it is to build a downline. That’s how it was for me. Tedious. Plus, there’s nothing worse than being in a program with hot products and a blazing pay plan and you’ve got nobody to “market” to.

This happened to me, which created a real marketing 911. I even fantasized that once I had some cash-flow pouring in, people would flock to me—that somehow recruiting and enrolling would somehow get easier. Yea, right.

But what really got my goat was pitching people. Having to recite the “opportunity.” Over and over. And chasing people. I loathed it.  Then I got talked into doing an offline “mailer”—to people who weren’t even qualified prospects. Next, I tried a post card campaign. Great, now I found another way to lose money.

But then thing changed. I found a way to penetrate the seemingly impervious barrier. I ended up ensnaring an avalanche of recruits—more like a stampede—all attracted to what I had to offer. What changed? Listen up, this is really important. What I did was take myself out of the equation. The difference was that I was no longer the messenger. Instead, I put the burden on the “system.”

More to the point: the system I implemented sorts, selects, speaks, sells and SPONSORS for me. It works because it overindulges the prospect. There is no embarrassing over “pitch” because the automated system is doing the selling. What happens is prospects end up selling themselves—like it was their idea.  You see, this “system” is based on the “show me, don’t sell me” mentality, and prospects love it. 

People are attracted because they can see themselves right in the driver’s seat. This is an important point—because the prospect is looking at the program and also muttering to themselves, “hey, this is sweet … I’m being prospected without being sold to. I’m home, in my slippers, reviewing an opportunity and the potential enroller is probably off somewhere loafing around…”—that’s what people are thinking.

And well, they do what most people do—they follow the path of least resistance. Like with anything that makes people’s lives easier, guess what happens? People begin to CHASE YOU down.

Moral of the story: Working hard is important, but working SMART (think passive) can take your success (and wealth) to a whole new level.  
While you ponder that, be sure to check this out.