Passive Income – Will It Make You Rich?

There is a common theme that runs through my conversations with entrepreneurs and business leaders. It concerns one of today’s most common challenges. Though phrased differently by each person, the question is basically the same—”How can I generate passive income?” That might be your question, too. Passive income is defined as trade or business activities in which you do not materially participate. In other words, it’s money you make without having to deliver a tangible product or engage in an exchange of time for dollars. This is the kind of income that can deliver exponential growth or it can become a huge drain on your time and resources.

Most entrepreneurs exchange time for dollars. Income growth, therefore, involves investing more time or raising prices. Eventually, everyone runs out of time and/or the market won’t support higher prices. That is when entrepreneurs hit their ceilings and business becomes stagnant. They work 60 to 70 hours per week but feel like they aren’t making any progress toward their personal, business, and financial goals.

The Pros of Passive Income

Passive income works while you sleep. Wouldn’t it be great to make money while you sleep? Wouldn’t it be awesome to offer a product or service that doesn’t demand more of your time and effort? That’s what passive income does. Today, there are several automated strategies that allow people from all walks of life to create a product once and sell it a million times. From downloadable books to online courses, teaching what you know had never been more profitable. Whereas a college professor might be fortunate to make $75,000 per year, online educational entrepreneurs can make six or seven figures with online courses and related educational content. In 2015, John Lee Dumas made $2.1 million with his online course.

Passive income works because the technology behind it is improving. I am updating my online course that teaches people how to create online courses. There are event-triggered automated emails that launch as learners reach certain milestones. There also are personal emails triggered if a student doesn’t log into the site for a specific number of days. I often get personal replies from students who receive these automated emails. On the surface, the email looks like I took the time to send that user a message. The end result is more engagement in my course and a higher than average completion rate. The great thing is that I don’t have to do anything once everything is set up properly. While I’m doing other work, my system is engaging people on my behalf.

Passive income works for everyone. My client list includes writers, speakers, musicians, coaches, ministries, and business leaders. Some are well-established with huge audiences. Others are just getting started. Though they are a diverse bunch, they have at least one common characteristic—they know they can grow their businesses through passive income. My job is to help them create the right content and to focus it on the right target audience. That’s what I do in my coaching programs.

The Cons of Passive Income

Setting up passive income takes a lot of effort. Creating an online product and creating the marketing and delivery funnels is time consuming. It is estimated that an online course requires 25 hours for every finished hour of content. So, putting together a six-hour course will require an average of 150 hours of work. Ebooks, worksheets, workbooks, videos, and so forth all require a significant amount of work up front. Let’s face it, a lot of creative people don’t have well-organized content. I explain it this way. Working with my clients is a lot like taking a huge box of Lego and dumping it on the floor. It’s my job to find and create the robot pictured on the box. All of the pieces are there, they just need to be put together in an orderly fashion.

Content Matrix

Passive income doesn’t market itself. In coaching consultations, I frequently encounter people who have great ideas, amazing products, and well-designed websites, but aren’t gaining any traction. Why? They haven’t learned how to market their products or services. Before people will buy from you, they must know you, like you, and trust you. That’s why I created The Content Matrix©. It is a strategy designed to cultivate a relationship with potential customers so they will feel comfortable doing business with you. At the end of the day, you are responsible for marketing your stuff. No one can do it for you, so you better learn how to do it yourself.

Passive income sources must be maintained. Once you create a passive income source, you can’t walk away from it and go sit on the beach. You must keep it updated. Your content will change as new ideas come to mind. Your videos will need to be replaced. Graphics, fonts, and general design will need to be updated. You’ll need new ideas to offer to people who complete all of your content. The list of activities goes on and on. You can’t afford to rest on your laurels. You need to keep working on the next big thing.

Is Passive Income Worth the Effort?

YES! I can introduce you to people who agree with me. I personally know musicians, writers, artists, farmers, podcasters, coaches, and ministry leaders who are living testimonies of the power of passive income. But, how many of them are doing nothing other than checking their bank accounts every day? None of them.

In his podcast, Dan Miller addressed a question posed by one of his listeners—”Where do you go to hang out with successful people?” I offered a one-word answer—”Nowhere!” Why? Because successful people don’t hang out anywhere; they work hard. They actively pursue the development of new ideas and products. They are willing to stop doing things they’ve always done in an effort to create something new. They get up early, waste very little time, take advantage of the opportunities God gives them, and take care of their minds, bodies, and spirits.

Creating passive income isn’t just about money. It’s about reaching and influencing more people. It’s all about being a good steward of the gifts and abilities God has entrusted to you. It’s about encouraging future generations to live for more than the moment and to invest their lives doing something they don’t want to stop doing. I’m not living to quit; I’m just getting started! How about you?


Are you ready to get going on your passive income idea? That’s one of my specialties! As a coach, I use my training as an editor, my background in adult education, and my experience creating educational content for some of today’s most popular entrepreneurs to help my clients create content that helps them serve more people and achieve their goals. If you want to know more about me, visit my personal site: terryhadaway.com.

Are You Ready to Start Earning Passive Income?

I’d love to talk to you, evaluate your idea, and see if there’s a way to help you get started. I have a few appointments available for a free consultation. I also have limited availability for new coaching clients. We don’t know how much money your passive income stream can produce, but we know how much it will produce if you don’t get started!