What exactly are active and passive income streams? Active ones are where you have to actively work on a certain venture to produce money. Passive income streams are ones where you don't have to put in any time or effort to collect the money generated. However, it takes a substantial amount of work to turn an active stream into a business that runs itself.
For instance, a doctor, a janitor, a barber, these are all examples of actively working for money. Dropshipping, click-funnels, traditional businesses are all examples of passive income generators. Initially, these aren't passive income streams. You'll need to put in quite the amount of work (designing, marketing, etc.) to be able to have them up and running on it's own.
You’ve probably heard the saying, “the average millionaire has 7 income streams.” What people don’t know is, it typically consists of 2-3 active income streams, and 4-5 passive ones. It’s nearly impossible to work on 7 different active streams and succeed.
I start off by building ONE active income stream. Whether that’s networking, branding, or simple traditional businesses, I build them up for 18 months. After it’s up and running, I hire someone to manage the entire business. Now, I’ve turned it into a passive income generator. I repeat this process a handful of times. In the end, I’ll have created up to 5 passive income generators, and I could actively work on 2-3.
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If you're interested in reading more in-depth analysis on the different income streams, and how to start your first few streams using Instagram, I've created a FREE eBook publication for you to download - HERE.