Where Does Passive Income Lead?

Take a minute to think about how your life would be impacted if you took the time to create some streams of passive income. Suppose you succeed. What then?

What would your life be like if you were receiving an extra $100 per month in passive income? What about an extra $500? $2500? $10K? 50K?

At what point do you shift from that wouldn’t make much difference to that would be nice? Then when do you think, That would really take off some pressure?

What amount nudges you into I could live off of that amount? Then when do you think, Wow… I could really upgrade my lifestyle with that?

And if you want to think beyond that, where do you start thinking, Hmmm… I wonder what I’d do if I earned that much without having to do anything? What would I actually do with my time then?

It may surprise you that one of the reasons people avoid earning passive income is the fear that arises from being confronted with that last question. People often spend so much of their lives distracted by the daily grind of work, bills, and social obligations that they rarely give much thought to the bigger questions. Suppose you actually do succeed here in a big way? Then what?

If your end game looks bleak, empty, and meaningless, that’s going to hold you back. You’ll sabotage yourself before you get very far.

If you didn’t have to work and money kept flowing to you month after month, what would you do with your time? Would you play video games all day or do drugs or sit around watching TV and eating?

The irony is that if you answer this question honestly, you’ll probably come up with something that you could just as easily do when you’re broke, although perhaps not at the same level.

For many people the freedom to do what you want when you want sounds like paradise, but it presents its own challenges. If you’re not careful, you could easily slide into a serious depression in this kind of situation. People receive a lot of fulfillment from work, but if you no longer have to work, will you still be able to motivate yourself to tackle new challenges, or will you do little or nothing because you can?

It may seem premature to think about this now, but I think it’s pretty important as you move forward in your passive income journey.

Refining Your Passive Income Skills

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.

Setting Your Passive Income Goal

Before moving forward in your journey toward passive income, it’s important to have a clear goal for what you want to accomplish.

Don’t underestimate the value of this. No feeble excuses. No vacillating.

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

  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.

Staying Ahead of the Game

Banks the world over have implemented a new policy that they refer to as Negative Interest Rate Policy, NIRP. So what they are doing is charging depositors for putting their money and keeping it in their banks.

How is NIRP operating the world over right now? Well, it’s like this, let’s say you put a grand in the bank and leave it there for a year and then go to draw it out. Because of NIRP you now have 990 dollars left. How’d that happen?

What is the world coming to, you ask?

The old folks used to say, “The world’s going to hell in a handbasket.” Well, not exactly.  Who can afford a handbasket anymore?

So what’s the answer you ask? Because for savvy folks the world over, there is always an answer, of course.

I used to think that austerity was the answer. You know, cut back, down size, reduce spending, do more with less, and of course expect less.

But the truth is people don’t want to just survive. They want to THRIVE.  

The best way to do that is to “get ahead of the game.” That requires taking charge of your own future and not relying on the government for a solution. Those days are long gone.

As I assess our current political and economic landscape, I can safely assure you of one thing for certain, if you don’t get in the game, the game will get you. It’s just a matter of time.

Moral of the story: STOP waiting for permission from someone else to create the future you deserve. Grab the bull by the horns and wrestle that beast into submission.  

Get Some Skin in the Game

I don’t spend a lot of money on clothes, but one thing I love is sunglasses. I’ve bought uncountable pairs of shades. I am with sunglasses like a girl is with shoes ― if I walk by a store and see some, I have to look.

I used to buy cheap ones. I would never pay more than $25. Obviously, they would break all the time. I’d be careless with them, sit on them, leave them somewhere, etc.

Didn’t matter much because I loved buying them. But it was annoying.

One day I decided to buy a pair of Emporio Armani shades for $200. Let me tell you, I took SUCH good care of those sunglasses. I knew exactly where they were at all times and cleaned them often.

Not only did I have them for years, but I derived vastly more pleasure from them than I did the dozens of pairs of cheapos that I bought before it.

What’s the point? You need to spend some money on your business. I don’t care what you spend it on, just spend it. And spend so much that it hurts.

Spend so much that you feel like if you don’t do anything to recoup it, you’ll feel terrible. I’m not talking buy a $12 domain and $40 hosting for the year.

I’m talking buy an $8,000 ready-made retail website. Buy a professionally grown Instagram account for $6,000. Launch a $3,000 ad campaign. Moral of the story: If you drop that kind of money on something, you better believe you’re going to pay really close attention on what happens.

Soaring Like an Eagle ― Choosing a Different Path

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 Harvey 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?”

Harvey 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 Harvey 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,” Harvey asked the driver, “have you always served customers like this?”

Wally smiled into the rearview 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,” Wally said. “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. 

There are thousands of marketers out there but only a few of them are performing at the level of their potential. 

Moral of the story: 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 like a duck and start soaring like an eagle.

Elevating Your Money Mentality

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.

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 feelings. 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 acknowledgment 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. 

The Master Recruiting Formula

Network marketing can be tedious. This is especially true with the old-school approach.  Remember having to chase people down and recite the “opportunity” over and over? I loathed it.

The challenge today is you might have a hot product and a smoking pay plan but no way to effectively “target” your market. That’s where technology comes into play.

Here’s how I changed things. 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.”

With a pre-built system that sorts, selects, and SELLS for you, there’s no need for you to be the focus of the “offer” because the automated system is doing the selling. What happens is prospects end up selling themselves—like it was their idea.     

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 automated) can take your success (and wealth) to a whole new level.  

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 known 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. 

Destiny of the Mind

I know, I know, everyone is dreaming of finding a system that can set them financially free. Well, I believe I’ve stumbled upon one of the best residual income systems ever created. You be the judge.

But hold on. Let me ask this first. Don’t you have higher aspirations than just becoming financially secure? C’mon, of course you do. We all do. There’s the extra pounds we want to take off, the more time we want to invest in our kids, and a multitude of other things, that when we accomplish them, will make us much more fulfilled.

Well, here’s how to do it. In other words, here’s how to have everything you want in life—on your terms.

All you have to do is to STOP waiting for OTHER people to give you permission to do stuff and STOP thinking you have to “just do it” to get ahead in life. Look, “action” is critical. But unfortunately, people think they have to DO something, or have to GET something. Because all the books we buy put “BEING” as the last step, and since most people don’t FEEL successful, they never get out of the gate. Thus, they rarely elevate to what it is they see themselves becoming. Make sense?

So what I did was reverse everything. I WAS successful in my MIND way before I knew what to DO and long before I knew HOW to manifest everything I wanted and now have in my life. So here’s the lesson: BE (in your mind) “rich” and BE the person you’d like to BE. And that ALONE will give you the strength to get everything moving—and into momentum. You see, “being” leads to thinking, which leads to “action”, which leads to “having.”

When you start BEING, you won’t need other people’s permission to start trying new stuff. And you’ll already be ready to “do anything” and to “try anything” and then from there, when you goof up, and you will, you will already be on the road to success—by eliminating—one-by-one—all the things that don’t work. But NONE OF THAT even starts unless you are in BE mode and would allow yourself to start.

How did a “dweeb wannabe” like me turn everything around? I did it by giving myself permission to build a website. I gave myself permission to write books, create ads and invest in the financial markets. Where would I be if I had waited to “get everything right?”

Moral of the story: STOP waiting for everyone’s approval. Just BE whatever it is you want to transform yourself into.