In this blog, I want to help make generating passive income a little bit easier for you by sharing with you the top five mistakes that most people make when trying to create passive income look; we all make mistakes, but these are the mistakes that you don’t have to make because I and several others have made them already and by the way, while you’re here let’s start
1. Passive Income Mistakes One
You try to build a business that helps everybody now it might seem kind of weird that that’s a mistake because we want to help as many people as possible the truth of the matter is this if you build the business for everybody, you’re building a business
but that doesn’t rhyme as well when you niche down when you have a narrower focus when you have a specialty everything becomes that much easier you don’t need to create the next uber you don’t need to make the next tesla you don’t need to make the next fidget spinner that everybody uses there’s a particular group of people out there a market a target audience that has problems pains needs wants desires if you can help even a small group of those people you can do well and build something that can generate passive income it’s the difference between
for example
trying to start a shoe store that has all the shoe athletes shoes, casual shoes, walking shoes riding shoes, all the things versus just specializing in something like well the running shoe store where you know you’re going to serve runners and they know when they come in the store that you can help them with guess what running all your manufacturers and all the products that you have in store are yes all for runners all the people that you hire can be yeah people who have run before you can speak the same language you can offer multiple products you can dive into sub-niches within that space person who are running 5km to people who are running ultra marathons there are enough people out there for you to do very very well without trying to serve everybody again serve everybody you’re helping nobody,
and it’s going to be that much more of an uphill battle for you why to start difficult start narrow start focused start having success
2. Passive Income Mistakes Two
This is very common and it takes me back in fact to high school we had this weird thing happen in high school i don’t know why we did this but it just became a trend and i’m going to date myself a little bit but this was the late 90s people who were like the cool kids in school started printing business cards in high school with their name
Like some of their talents on it or what instrument they played or whatever there was literally no business but it felt fantastic to have a business card and yeah because i was like a wannabe cool guy i made one i remember going to kinko’s and like anyway i’m not gonna talk about it the same thing happens in this world of making money online we want to feel relaxed like we’re actually doing something
For Example
We get our website up and running we get our social media accounts we get a logo design we might buy all this fancy equipment but does that mean you have a business have you actually tried to help anybody yet in most cases no not yet you should get all that stuff once you know exactly what it’s like to help people and if you even like helping those people and what kind of ways you want to help those people before you worry about all those things that guess what also costs money spend time getting to know the group of people who you want to serve and figuring out what problems they have so that you can offer them something whether it’s your own product or somebody else’s product that you can earn a commission
If you want to make it even easier here’s a trick for you find one person and help them get one result start there that’s where it all begins just one person one result everything unlocks after that what you can serve them with how to speak how to find them how to even solve their problems and whether you even like it or not then when you rinse and repeat guess what now you have a testimonial and now you can figure out how to automate it later mistake
3. Passive Income Mistakes Three
Thinking that passive income is where it all starts that you’re going to set up your business and then next week, maybe even next month or even next year, and then money’s just going to roll in, and all you’d have to do is sit back and relax and then that’s what happens you sit back and try to figure out what’s going on and all of a sudden you’re falling flat because you haven’t got anything going on yet passive income is like the last step of the process you’re very active in generating an income
but over time whether you use tools or systemizing your business or automating it using specific tools and software and or people that you might hire you then get to remove yourself from the process still be able to serve people but in a more automated fashion and that comes later sometimes much much later mistake
4. Passive Income Mistakes Four
my gosh this is a big one whenever i coach somebody and i ask them how much money do you want to make what do you think the most common number is that people say when it comes to how much they want their business to make per year any guesses if you’ve guessed a million dollar or a seven figure business then you would be right because that’s what most people say i want to challenge you on that if that’s what you want to because in most cases
This happens with my students when you really quench the numbers in terms of what you actually need to live the kind of life you want to live you don’t even need anywhere close to a million dollars a year or seven figures coming in in many cases it’s mostly anywhere between a hundred thousand and a hundred and fifty thousand dollars i mean a hundred thousand dollar business is an entirely different business model utterly different set of actions and much much easier to make passive than a million dollar business so how much money do you actually need what is your goal for the kind of lifestyle that you want to live you can reverse engineer from that and the numbers actually can start to make sense and seem achievable
For Example
A hundred thousand dollars that’s a thousand people paying you a hundred dollars per year a thousand that’s it there’s like eight billion people in the world just a thousand you see the riches are in the niches or get this a six-figure income a hundred thousand dollars is a hundred people paying you eighty-four dollars a month can you create a service or software or something that’ll help you get eighty-four dollars a month from just a hundred people probably or maybe you go white-glove service meaning you go high touch to start and you serve ten people at 800 a month I’m just saying once you know your goal once you know your north star it’s going to be a lot easier to figure out what your next steps are
5. Passive Income Mistakes Five
This ties in the 15 000 losses that I had due to making this giant mistake myself. Back in 2019, I started a company. I started this because I saw a couple of my friends start companies too and quickly make six figures within just a couple of weeks after their product launch, so what did I do well? I’m going to make software too, so I came up with an idea.
I found a developer. I spent five thousand dollars, and six weeks later, it wasn’t working, so I spent another five thousand dollars and another six weeks and guess what we were a little bit closer to what I thought this should be, but it wasn’t quite there. Then I spent another five thousand dollars in another four to five weeks finally getting something good, and when I shared it with people around the world, they said I don’t want this one of the lessons.