What exactly are active income streams? Money generated because you’ve actively worked for it. A lawn mower, a burger flipper, a painter, a pizza delivery man, a doctor, these are all examples of actively working for money.
On the other hand, what are passive income streams? Income generated without having to put in any work. Real estate property values increasing, rental fees, automated income generators (click-funnels, dropshipping, etc.), or traditional methods such as hiring a manger to run your business. Although it is easy and effortless to collect money from these passive generators, don’t underestimate how hard it is to be able to build a company to the point where it runs on its 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. Let’s talk about how I would operate these streams:
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.
What separates the millionaires from multi-millionaires is the number of streams of income we have. After several years of building and experimenting, I have nearly 20 streams of income. Most of them are passive, whereas my active ones are significantly more lucrative. Let’s put an example into perspective: let’s say you’re able to buy an apartment that’s consistently growing in value ($100-200k/year) That means each day you own this condo, you’re making $274-550 DAILY AND PASSIVELY from it. If you own 10 condos growing at the same rate, that’s $2,740-5,500 DAILY. This doesn’t include rental fees profits, tax costs, etc., but I’ll make a separate blog post on that later on.
From my Instagram page alone, I’ve created 12 streams of income. Most of these are active streams as I have to actively work on them, including: network branding, marketing campaigns, landing-page campaigns, etc. Most Instagram Influencers only know ONE single stream - advertising for companies. This is one of the HARDEST and least profitable methods out there. Not only do you have to email hundreds of companies to land just one, you’re only paid $20- $50 depending on your size. This is why I don’t actively seek out to advertise for companies. Unless they approach me offering $500+ per post, I don’t bother wasting my time. If you know any of my students, they rarely advertise as well. I’ve given them nearly a dozen more ways to make significantly more money with minimal effort.
That’s the breakdown of how active and passive income streams work. Don’t focus on multiple active income streams at the same time. Instead, build one at a time, and you’ll progressively turn them into passive ones.
If you’d like to learn more about who I am, what I do, and how I started my online businesses. check out the link below: