Creating a passive or residual income is the dream of many people, and it has become very popular to pursue this goal online.
But what is the truth about passive income – is it even possible to create, and if it is, what would the best way then be?
As there are many misunderstandings about this topic, I decided to write this article about myths and truths about creating a passive income online.
Unfortunately, there are many scams that take advantage of the dream many people have about creating a passive or residual income. By being aware of what is realistic and what is not, when you look for an online income, you will be able to avoid the scams and save yourself a lot of time and money.
What is an online passive income?
Passive or residual income are two terms often used about the same topic. For this article I will just call it passive income for the ease of it. But if you read about it elsewhere, it might also be called residual income.
So what is meant when people talk about having a passive income?
According to Wikipedia, a passive income is when you on a regular basis keep getting a cash flow which requires minimal effort to maintain. This could for example be by having made some great investments.
As more and more people wish to have the freedom to make an income on their own terms and having more time with friends, family, etc., having a passive income is something that many people dream about. And as the internet offers a lot of opportunities, many people pursue it here.
However, even though it is definitely possible to make really good money online, there are in my opinion also a lot of misunderstandings about what a passive income means, and these misunderstandings often lead to people losing money instead of making any.
Is passive income a myth?
So is it even possible to create a passive income online?
I would say it depends – from the above definition it might sound like it is just matter of finding the right trick, and then the money will keep flowing forever, without you have to do any work or make an effort. Many systems promise this online. An example is UtubeCash, which for example promises you can make a full-time income by just doing a bit of easy work 30 minutes per week.
If that is your understanding of creating a passive income, then I am afraid I have to say it is a myth. There might be a few lucky people that just hit the jackpot, but for the majority of us it is just not the reality to be able to make this kind of money without any effort or without any investment.
But what is possible is to put effort into building an online income. Once it is up and running, you will continuously get an income from it, if you do it right. So you will get paid even when you are on holiday, and even at night when you sleep, as the internet never sleeps.
So in that sense you will get a passive income. But that does not mean you can just retire and the money will keep coming for the rest of your life. As with any business, the income of an online business will fade over time, if you stop working on it. But if you keep putting in work, you will build your income, and then the possibilities really are limitless online.
So passive income is not a myth, if you see it as getting paid even when you take breaks or are on holiday. But if your expectations are, you can become rich without ever doing any work, then it is definitely a myth and there is a great chance you will end up falling for one of the scams that promise this.
What to be careful about!
I have already mentioned several times that there are many online scams that want you to believe, they have the magic trick, so you can become rich overnight without ever doing any work.
It is very important to be aware of this, and therefore I want to emphasize on it again.
Many people are so eager to believe, it is very easy to become rich online and do not see the warning signs and end up being scammed and lose a lot of money instead. So let me make it clear – you should never join a program that promise you can become rich online without any effort.
They will in many cases lure you in with a cheap price, and once you are a member, there will be many upsells, and I know people that have ended up losing thousands of dollars this way without ever getting any value or making any money themselves.
So be careful about joining programs that promise you can become rich overnight, and be careful about thinking you in general can become rich online without any effort.
If you are willing to make an effort, and are aware how to spot the scams, then there are definitely great opportunities to make an income online no matter your previous experience.
How to make a passive income online?
By now you should understand what it means to create a passive income online – it does not mean you never have to do any work, and it does not mean it will happen overnight.
If you understand this, there are great ways to make money online.
My personal favorite way to create a passive income is through affiliate marketing, where you can build an online income by promoting products and services you are passionate about without having to have a web shop, storage etc. It has an amazing potential, if you do it right, and it makes it possible for you to build an income based on your passions and interests.
The best place I have found to learn about this is Wealthy Affiliate, which is a learning platform where you can learn to build an online income step-by-step no matter your previous experience. I am a member myself, and before I joined, I tried to do a bit of affiliate marketing, but failed miserably despite many years of experience with online marketing. Thanks to the training there, I have learned the whole process step-by-step, and I keep earning while learning there every day.
So if you want to create your own online income and are willing to make an effort, I strongly encourage you to check out Wealthy Affiliate. You can join and test the training for free to see what it has to offer, before you make any decision. You can read more about the platform in my full review by clicking the link below.
Depending on how you define a passive income online, it is definitely not a myth to be able to create one. However, if you think passive means you never have to do any work, and you can become rich overnight, you will probably end up being very disappointed.
With effort, creating an online income can give you a lot of freedom and also eventually a lot of money. Just do not fall into the trap of believing the programs that promise you a system that can do all the work for you, so you can just lean back and they will make you rich in a few weeks or months – it will just not happen.
I hope this article has cleared some misunderstandings about what is possible, when it comes to creating a passive income online, and hope you now have a good understanding of what is realistic and how to achieve it. So if you are interested in testing the training platform I use and recommend, I hope to see you there as a member.
If you have any comments, questions, or have any thoughts or opinions about creating a passive income online, feel free to leave a comment below. I would love to hear your thoughts and answer any questions.