Recently I met up with this guy who wanted to sell me his database business. He wanted around $100k for the business including the entire infrastructure. While I might not be a huge application developer or computer science guru, I am extremely interested in using his creation to make me big bucks.
Yes, the problem with his business model is that it requires continual actual work. I don’t like businesses that can’t and won’t make me money while I am away or sleeping. My current income streams are totally awesome. You want to know why that is? It’s because they don’t require constant work.
If you think there’s such thing as passive income, you should probably get a reality check. However, there are plenty of businesses that allow you to make money while you’re “away.”
A perfect example is this past weekend. I decided to go out on Lake Mead of Las Vegas and speed around on jet skis while partying on an island there. You want to know how much money I made that day while I was farting around the lake? It’s not even funny. I made $2,300. Do you know how awesome that feels? Do you know how great it is to enjoy yourself all day long and then come home, flip open the laptop, and see that? It’s absolutely amazing.
Without a constant stream of revenue, you don’t have an effective business. If you make money only when you work, you are a freelancer. You aren’t a businessman and you can’t pretend to call yourself one. You need to take the next step further and start employing people.
The ability to outsource and automate labor is higher than ever before in human history. You can find thousands of people every single day who want to connect with your business online. Furthermore, you can find even more people willing to work for cheap. One of the reasons college is so overpriced now deals with the complete saturation of the job market.
There are kids in India who have been coding for 10 years. Do you think some recent college grad who partied for four years is going to be able to come even close to the Indian programmer? I’m not even going to answer that.
Don’t miss out ten years down the road when you have decided to build a “non-business” that revolves around your constant love and attention. Start hustling and start outsourcing. Oh, and get the term “passive income” out of your head forever.