In today's digital age, many people aspire to achieve passive income - a source of revenue that generates money effortlessly, whether you're working or not. Passive income provides a sense of freedom and security, allowing you to work as much or as little as you desire while still earning a steady stream of income.

With passive income, you can choose to travel to any destination you want, work from anywhere, or simply relax and enjoy your free time without worrying about money. But how realistic is the dream of earning $200 per day passively?

The truth is that while it may seem like a viable option, the reality of passive income is far from what most people believe. In this blog post, I will break down the misconceptions and reveal the truth behind passive income. Despite its name, passive income is not entirely passive.

My goal is to provide you with valuable insights into the realities of passive income so that you can make informed decisions about your financial goals. So, let's explore the truth behind passive income together.

Passive Income Idea #1 Membership Sites

Passive income is a dream for many, and membership sites are a popular choice for generating it.

The concept is simple - create a members-only website with exclusive content that people pay for.

But is it really that easy to make $200 a day with a membership site? Let's dive deeper into this idea.

To generate $200 a day with a membership site, you need a model that charges $35 per member per month, which means you need at least 172 members.

Some types of memberships include restricted content, group coaching, or a course with a community. While it may seem doable, the reality is different.

The first thing to consider is that no one will join your membership unless you have an audience. Building an audience takes time and effort, and you need a much larger audience than just 172 people to pitch your membership to.

You need a lead generation strategy that requires consistent effort and attention month after month.

Furthermore, membership sites are known for high churn rates - members come and go all the time. To combat this, you need to create fresh content and show up in the community.

This takes time and effort

Making the idea of passive income seem more like a false belief than a reality.

While membership sites can be a source of income, it's not as easy as it seems. It takes a lot of work and dedication to making it successful.

So, if you're considering a membership site as a passive income idea, be prepared to invest the time and effort needed to make it work.

Passive Income Idea #2 Selling Digital Products

Selling digital products can be a great way to generate passive income.

With digital products, there are no packaging or shipping expenses, as everything is delivered in a digital format.

The process of selling digital products is fully automated, making it possible to earn money even while sleeping.

To make $200 per day in passive income, assuming a $5 price point, you need to sell around 1200 products per month.

Digital products can be sold through your own website or an e-commerce platform such as Amazon or Etsy.

However, the idea that selling digital products is entirely passive income is a false belief. To sell 1200 products a month, you need an email list of buyers with at least 25,000 people.

This requires a significant lead generation strategy and ongoing effort to keep marketing in front of potential buyers.

Additionally, to get your products to rank well on platforms like Amazon or Etsy, you need to have a solid SEO strategy.

This means optimizing your product descriptions and ensuring that they are relevant and stand out in a sea of other products.

To drive traffic to your website or e-commerce platform, you also need to engage in a major marketing campaign. This includes posting regularly on social media multiple times a day.

In summary, selling digital products can be a great way to generate passive income, but it requires ongoing effort and work to build an audience and maintain a marketing strategy that drives sales.

Passive Income Idea #3 Blogging

Blogging is a popular way to share your ideas and earn passive income. The idea is simple: by hosting ads or promoting your own products on your blog, you can generate traffic and revenue.

However, to make $200 per day, you will need to attract around 60,000 monthly visitors to your blog.

To do this, you need to first find your niche and create relevant content. You should aim to write at least two blog posts per week that are high-quality, SEO-optimized, and answer the questions that people are searching for.

You will also need to learn SEO and develop a strategy to improve your website's visibility and attract traffic. While passive income from blogging may seem attractive, it is not as easy as it sounds.

It takes a lot of work to attract traffic and write quality content. Consistently producing high-quality content requires hours of research, planning, and writing. I

n conclusion, generating passive income through blogging requires a significant investment of time and effort to create quality content and improve your website's visibility.

Resulting in work that’s not passive

Passive Income #4 Courses

Creating and selling online courses. This model allows you to teach your expertise to others while generating income.

To get started, you need to create a course around a specific topic or niche and package it in easily consumable video modules, chapters, and lessons. T

he goal is to take the student on a linear journey, starting at the beginner level and progressing toward becoming an expert.

Although creating a course may seem passive, it's not entirely true. While students learn at their own pace, you need to be available to answer questions and give refunds promptly.

This requires you to be strategic in your marketing and customer support to attract and retain students.

To make $200 per day, you need to sell five courses at $45 each. To achieve this, you need to have a flow of new leads, about 3,000 per month. This means you need to develop a lead generation strategy and target a specific niche that's likely to buy your course.

Additionally, creating a course is not a one-and-done process. You need to update the course regularly to serve your students better. This means you need to stay involved, take feedback, and improve the course content.

In conclusion, creating and selling online courses is an excellent passive income idea. However, it requires effort, strategic planning, and customer support to be successful. And that takes work, so it's not passive

Passive Income #5

Podcasts are a great way to make passive income by selling ad spots or promoting other brands.

The concept is simple: record weekly podcasts with your laptop or microphone, which requires no special setup. However, to make $200 per day, you need listeners.

You will need to include a marketing strategy to gain listeners and subscribers to your podcast. Promote your podcast on social media channels frequently and consistently, letting your followers know what episode you just uploaded and what value it provides.

Posting every day is necessary to increase your listener count. If you result in buying ads to promote your podcast, your cost will go up, and you will need even more listeners to make $200 per day.

Podcasts are a great strategy for passive income, but they require a consistent effort to be successful.

Passive Income #6

Everyone watches YouTube and wants to have a channel, right?

It's a fun way to earn passive income by recording videos on a specific topic or niche and uploading them to YouTube. You make money through ads by monetizing your videos.

But let's do the math. To make $200 per day, YouTube will pay you with ads per 1000 views. You can expect to earn around $2.50 per 1000 views.

That means you need 2.4 million views per month to hit that $200 mark.

The idea sounds simple: post on YouTube consistently, monetize your views through ads, and generate monthly income passively as people watch your videos.

But gaining views and growing your channel takes a lot of time and knowledge about the YouTube algorithm.

You need to research your niche and find topics that your viewers are interested in every week. Writing a script, recording, and editing videos are all time-consuming processes that require a lot of effort.

Editing, in particular, is where most of the time is spent, and it's difficult. In fact, editing takes more time than scripting, recording, and researching combined.

If you want to post two videos per week, you'll be spending a lot of time editing. That's why YouTube isn't entirely passive.

In conclusion, starting a YouTube channel can be a fun and lucrative way to earn passive income, but it's far from being passive. It requires a lot of time and effort, especially in the beginning when you're trying to grow your audience. However, if you're willing to put in the work, it can be a rewarding venture.

Passive Income #7 Affiliate Sales

Another way for creating passive income is to become an affiliate for a product that you believe in and earn a commission on sales.

However, this requires a lot of work to build up a list of buyers who trust your recommendations and are interested in the product.

To make $200 per day selling a $100 product with a 50% commission, you would need to sell 120 products per month, which requires a constant flow of leads.

This means you need a marketing strategy and a social media presence to provide value to your audience and build trust with them.

While you can sell products passively, there's no way to do so without putting in the work to maintain your online presence and continue attracting new leads.

There's no such thing as completely passive income, but if you're willing to put in the effort, affiliate marketing can be a lucrative business opportunity.

It's important to remember that any business requires a strategy, plan, and consistent effort. While passive income may not be completely achievable, the rewards of a successful online business can be great.

So if you're willing to do the work, go for it! Just don't fall into the trap of thinking that it will be completely passive.

Affiliate marketing is one of the seven passive income ideas, but it requires a lot of work to build up a list of buyers and maintain an online presence. 

Conclusion

In conclusion, it's important to understand that building a passive income stream takes work and dedication.

While the idea of making money while you sleep is appealing, it's crucial to have a plan, strategy, and consistency to achieve success.

Don't fall for the myth of completely passive income without putting in any effort. If you know someone who needs to hear this message, please share this episode with them.

Let's embrace the work and effort required to build a successful online business. At the end of the day, it's a real business that can be very rewarding.

Thank you for joining me, and I wish you all the best in your business pursuits.

See you in the next one!

-Caleb Becker