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Why passive income doesn’t work

There are basically two (legal) ways of building up passive income online. And none of them really works. At least not for 99% of the people out there.

The first option you have is to use or promote someone else’s products or services and get a cut from every successful sale. A simple affiliate model.

The problem with this approach is that you already need to have a huge audience to promote that service to. And we’re not talking about just a few hundred subscribers here. We’re talking about a few thousand subscribers.

And everybody who has ever tried building up an audience online knows how pretty damn hard this is. You really need to know what you’re doing. And paid advertisement is not really an option either as affiliate margins aren’t that incredible.

So not a real option for someone who doesn’t know how to build an audience online.

The other alternative you have is to create a digital product yourself. Like an ebook, a subscription service, a video course and so on. The problem here is the same like the one above though.

You still don’t have an audience. You still need to build an audience. And as we all know “build your product and then they’ll come” doesn’t work anymore. In case it ever really worked.

Sure, you might argue that platforms like Amazon, Udemy, iTunes or what not provide an already existing audience of millions of potential customers. And you might be right.

But here’s the truth about any platform out there that offers access to a huge audience of potential customers, readers or listeners:

If you’re not among the best of the best, you won’t see a single sale, click, like or recommend. Ever. That’s just the way the world works these days.

An incredibly small amount of people (or companies) has 90%+ of the sales, views, likes, recommends, money or what not.

So the problem with passive income (just like with every other product), the problem no one ever really talks about, is building an audience online.

And if you don’t know how to build an audience online for whatever product or service, then you’ll probably never be able to make passive income online.

So instead of focusing on passive income, focus on figuring out how to build your audience online.

And even if you found ways of building your audience online and started making some cash, it would still not be passive income.

Because you’d constantly have to work super hard on nurturing and growing that audience. Actively!

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