So the idea for this post is on why I chose the word (s) “Cashflow” instead of saying “Passive Income”.
To me, the idea behind the term passive income is that you don't really have to work for it. You can sleep your heart away every single day and money just keeps rolling in.
Maybe you found a push button system that magically gives you money over the rest of your life.
Well….That is what most people would want anyways. But it's in no way reality.
Passive income in that sense of the term is not real.
Is it possible to set things up one time and have it make you money 24/7/365?
You bet it is!
But NOT without working for it.
Besides the initial setup of the website/landing pages, Funnels and such…there might be ads you need to analyse and change up. New articles that need to write. Split tests you need to conduct. Podcasts or videos you need to record / edit / upload, etc.
There is stuff you need to do.
So that notion you might have had about the passive income that makes you money while you sleep…even 5-20 years from now, without having to do anything about it, I hate to say is a fairy tale.
But that doesn't mean you can't build an endless stream of CashFlow.
“CashFlow” in my definition is creating online businesses that have assets that generate income, semi-passivly without you needing to be there some of the time, that outways the total expenses and work involved.
Your online business SHOULD be able to run without your involvment should you want to go away for a couple weeks without checking up on it.
BUT, that doesn't mean you can disreguard it entirely in hopes it will just keep running smoothly.
And if that asset is essentially costing you more than what it produces, that is not CashFlow.
There has to be a profit.
Let's look at one particular type of Cashflow business…Affiliate Marketing.
Affiliate Marketing is essentially marketing someone elses product or service and you get a commission from the sale of that product/service.
So let's say you are marketing Product ABC.
You build a Funnel (which is the best thing you could do) which includes a landing page, thank you page, follow up emails, etc. All pushing people to this affiliate product.
And then you start driving traffic using Facebook ads or some other ad network. You are spending $20/day in ad spend, but you are only making 1 sale per day, and that one sale makes you only $7 commission.
You are losing money.
This is not what we want. We want something that is going to make us a hefty return on our money. I want a GREAT ROI, not something mediocre at best. Or no return at all. Or worse, a negative ROI.
So we look to build and create assets that will give us a Positive Return (Cashflow) each and ever month.
But again, it is going to take work.
So that is why I used the term “Cashflow” instead of “Passive Income”. I don't want you to think that I am going to teach you some Get Rich Quick, or Get Rich Easy strategies that just don't work.
I will teach you how to build real online businesses that make you money. End of story.