Monday, January 25, 2010

True happiness comes from recurring income, not passive income

One of the biggest misunderstandings about Tim Ferriss' book "The Four-Hour Work Week" is that it's about creating an automated business so you only have to work four hours a week; and then you can goof off the rest of the time.

Not true!

It's actually about doing what you love, so that what seems like work only takes a few hours a week.

True happiness in business comes from recurring income, not passive income. The difference? Passive income is making money in your sleep, which - I agree - is difficult. Recurring income, on the other hand, is where you have a bunch of loyal followers who want to be part of your network, you consistently deliver great value to them, and they're happy to pay you a subscription for it.

My rental properties bring me passive income. My membership site brings me recurring income. I have to work at the latter, but it's work I love, so it's by far the more fulfilling.

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