Active vs Passive Income

What’s The Difference?

Advertisements

By Jerry Lambert

During your search for ways to earn extra (any) income, you may have come across the terms Active and Passive Income.  I will try to explain the difference between the two in this article and why it’s important to know the difference.

Man sleepingI have to admit, I went down many paths that turned into nothing, pursuing the elusive “Passive Income Stream”.  Otherwise known as, “Make Money While You Sleep!”  The pitch sounds great, “Earn $5000 per week from home, doing nothing!”  This definitely appealed to my lazy streak.  However, the promise and the reality don’t really cross paths.

From personal experience, many of these “opportunities” turn out to be a way to suck what little money you have into their “System”.  I also fell for “This one sucks, but maybe the next one will be better”.  Nope.

The one overriding pitch seems to be, “Make Money Online!”  What this comes down to more often than not is what is known as “Affiliate Marketing”.  This is an industry that has sprung up as a way to run ads on websites.  The theory is that if your website is popular enough, you will be able to make money from it by running ads.

If you are reading this article on a tablet or phone, you may be seeing one of these ads.  Let’s face it, they’re everywhere.  They are counting on the age-old sales formula that 1%-3% of visitors to your website will click on these ads and earn you some money.

Businesswoman sitting on chair with digital tablet and blackboardThe problem with that theory is that you need a website, like TBPC.  However, if you don’t have a website, you may have to pay to “rent space” on somebody else’s website to run your ads.  I looked into this whole process and it gets very confusing, not to mention expensive.  And let’s face it, you want to make money, not spend more money you don’t have.  However, the old business adage is true, “You have to spend money to make money!”  Not too encouraging if you don’t have any money in the first place.

I did sign up for a couple of programs that promised all sorts of passive income if I would only cough up a small amount of money.  What they don’t tell you is that once you sign up, you will be approached by someone offering to “coach” you in your new online business venture.  When you finally nail them down to the costs, you’ll find out that this “coaching” will cost you over $1000!  Thanks, but no thanks.

Based on my experience, people are out there selling “air”.  They approach you with a solid sounding “System” that will enable you to make money online running ads.  However, the only money that is being made is by the people selling you the “System”.

Now don’t get me wrong, all you have to do is visit any website and you will see tons of ads for everything under the sun.  So SOMEBODY is making money doing this.  I’m sure there are people pumping hundreds of dollars or more into ads.  Not a lot of people have that kind of money lying around to blow on advertising.

Saw cutting a hole around a piggy bankOk”, you say, “I just have to make sure it’s not a scam”.  The “Scam” come-on is the oldest trick in the book.  Say you want to learn about ABC-123-XYZ-LMNOP Online Marketing* and you do a search to find out if it’s legit, or a scam.  You will see a bunch of results that say something like, “Is ABC-123-XYZ-LMNOP Online Marketing a Scam?”  If you’re lucky, you’ll click on a link that will be a genuine review of the system.  However, more than likely, it’s just a ruse to take you to their website, where they can sell you their own system!!!  It goes around and around and around!  *(There are so many of these companies that I had to come up with that ridiculous company name just to make sure I didn’t accidentally mention a real one!)

If you do feel compelled to try out one of these systems, don’t accept the offer right away.  More than likely there will be a video telling you about all the money you can expect to earn by using their system.  Once the video finishes playing, be sure to scroll to the bottom of the window for more information about how much the system costs.  Then hit the “X” to close the window.  Attempting to close the window will launch a barrage of, “Wait, there’s more!” windows that will gradually reduce the price down to almost nothing.  I was going to sign up for a system once that started at around $50 and it eventually went down to $7!  I guess they figure $7 is better than nothing.

Young woman carrying stack of jeans in clothes storeI have talked a lot about Passive Income in this article because I want you to be careful when you look into buying a system that may cost you a lot of time, money, and energy.  The flip side of Passive Income is Active Income.  Active Income is, “get off your butt and earn some money”, income.  Admittedly, this income is a lot less sexy than supposedly logging into your checking account every day and seeing money being deposited, but that’s not reality.

As I mentioned in my last article, now that my full-time Uber & Lyft career is over, I am really focusing on Work from Home income.  I have come across some very promising income streams that I will be covering in the upcoming weeks.  As I mentioned in last week’s article, my goal is to get 2 or 3 of these WFH jobs to replace, and hopefully exceed, my driving income.  I hope to do just that with some of the jobs I have found.  I am going to evaluate them over the next couple of weeks and I’ll report back with what I find out.

None of these jobs are going to pay you $5000 per week for sitting on the couch binge-watching “Scandal”!  However, they are jobs that companies need done, and they are willing to hire you to work from home to do them!  If these jobs pan out, all I can think about is how much my buddies down at the oil change shop are going to miss me!  Please come back next week and I’ll have some WFH jobs for you to check out!

If you like what you’re reading on TBPC, please leave a comment and share the website with your friends.  Also, if you would like to be notified of new posts to this blog, please click on the “Follow” button in the lower right corner.  Until next week, may your parachute fully deploy, and may you have a soft landing!

Disclaimer: Advertisements that appear on this website are posted by WordPress and not by the author of this website.