In this video blog post I talk about how to escape the rat race by creating passive income.
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Full Transcription Of The Video Below:
Hey, what is going on, guys? Zach Crawford, here. And, in this video, we are going to talk about how to escape the rate race by creating passive income.
So, what I am doing this video for is a lot of people in my Facebook group, and also people that send me private messages, always want to know, “Zach. What is the best business model? Is it Shopify? Is it Amazon FBA? Is it affiliate marketing? Is it cryptocurrency? You know, I have heard it all, right?
And the reason why that are asking this, is they want to get out of their job. Like, they just terribly want to get out of their job. I can resonate because I was there like 6 years ago, right? And my answer is always the same. Creating passive income.
And the reason why I say this is, I learned this from Robert Kiyosaki, If you have not read any of this books, “Rich Dad, Poor Dad”, “Cashflow Quadrant” And, that is what I am talking about here, and I am going to be giving you examples with the online business, on how to do this.
There are four different quadrants, riight?
Number 1, is of course working for somebody else. You are in a job. Your time is traded for dollars, right?
Number 2, you have your own business, sort of speak, but you are not really owning a business, we will talk about that in a minuted. But, basically, you are self employed. You don't have someone telling you what to do. But, basically, you kind of created a job for yourself, you are working in the business.
Number 3, is actually running a business. Meaning, you have employees and systems in place. And, you are not physically and all of your income is tied to active income. We are going to talk about that in a minute. Active income is basically when you are working and you paid now, but if you stop working, and at that point, you don't get paid.
And, then the fourth one is basically, passive income streams, stuff like real estate and whatnot.
But, I am going to relate this to the online business model, and share with you on how I went from being stuck, not necessarily in the rat race, because I had already quit my job.
But, freeing myself to the point where I don't have worries, I am not stressed out, how income is going to come in. You know, can I make better income decisions? Am I able to travel and still make money? But, this applies even if you have a job and you are trying to get out of the rat race.
So, before we jump in. If you are new to the channel, be sure to go below and hit that “subscribe” button, smash that notification bell so that you get notified whenever I create videos . And, comment below, and I will welcome you to the channel.
Active Income & Passive Income:
So, the first thing that I want to talk about is “active income” and “passive income”. Because this is something that I did not quite realize when I first got into what we call “creating a business”, right? Creating a lifestyle that I was aiming for.
When I first started out, I was doing active income. And, that basically means that the only time that you make money is when you are actively working, right? If you take a vacation, you try to go do something else, you get sick and can't work, your income drops, it tanks.
And, that is what I was doing in the beginning. I thought I was a business owner, but I really wasn't.
One of my first businesses was basically doing marketing services for offline business owners, and online business owners. And, I told myself “I am the boss”, right?
But, really, I was still kind of was an employee because I was working for other people, and at the same time, if I stopped working, I stopped making income. It wasn't an actual asset. It was something that I had to continually grind in order to get paid. It was kind of like a job.
But, then I learned about this whole, you know, like freeing myself with passive income, from Robert Kiyosaki, and I started switching my mindset right?
I eventually was outsourcing a lot of this stuff, and even to this day, I still have the business, but I don't do any of the work. I don't do any of the web site stuff, I don't talk to the clients for the most part, it pretty much runs passively.
And, then when I started focusing this on the online thing, that is when my life really become fun, right?
So, I want to talk about how this works, and how to apply this, and what you should be focusing on. I don't really care what business model that you do, but what you want to be doing is focusing on passive income, if you want to get out of the rat race. It is going to free you completely.
So, passive income is basically, like where you are not tied to the business, right? You can go on vacation, you can go to the gym, you can go do things that you enjoy, you can hang out with your kids, and you can get sick and not be able to work for 2 weeks, but you still get paid. And, that's what I focused on, right?
Now, I did that personally with content marketing. And, I basically, what I mean by that, is was stuff like YouTube channel, and a blog. In the old days, I had like 20 different channels, like, doing a lot of product reviews, and in all different industries.
Now, I am focusing on building this channel, but I did content marketing for years. And, in the beginning, I did a blog because I was scared of video, and the thought of doing was, like, it was terrifying.
And, so, I still to this day, have blog posts that I did over three and a half years ago, that still bringing me traffic, that is still getting me paid every single month. I did the work once, and then I get paid.
And, that is what I am focusing on to this day. Like, the most highest leveraged activity of what I can do is like creating a piece of content. Whether it is for YouTube, or it is for my blog.
Now, if I talked about active income and passive income. An example of active income is for example is if you are doing anything with social media, like say Facebook, you post something, and even though you can get some sales right now, it is going to go away, like probably by the end of the day.
People probably won't see it anymore. Even, if you did a viral video, people will see it for a little bit, but eventually it will disappear, like into the abyss.
Compared to YouTube. Say you created a video today, like 6 months from now, somebody can still find that video, and you are still getting paid.
Like, all the videos that I used to do on the product reviews that I talked about, like people will find the like 6 months, 12 months, 18 months down the line, and I was still getting commissions, right? It was because of the fact that I did the work, it build momentum, and I got paid.
I want to preface, if you go into this business model, and you focus on this, like you are not going to be a millionaire overnight, right? Like, I do think it is realistic to honestly get to say like $5,000 a month with like 3 months, if you really focus on what you are doing, and you don’t get distracted over here, and distracted over here. I think you can get to a $1,000 a day in 6 months, and from there, you can keep compounding it.
Now, yesterday, I actually did a video on sales funnels which is the second part of this.
Which I showed where I had one income stream that made me $36,000 last month, and I didn't do any work. And, this sounds pretty crazy, right, but what I mean, I did not do any work that month in order to get it.
I did the work literally over a year ago, and I put the content out there, and now the content is going to work for me. It is digging ditches, right? And, it is sending people through the sales funnel.
And, the sales funnel is the modern day sales process, right? In the old days, I had to sit here, and talk to you across the table and try to convince you why you need to get my thing.
Now, we can do this online with a systems that walks them and is automated completely, that real “passive income”, and literally walks people through the steps and does the sales for me.
So, I created the content over a year ago, and now it is consistently bringing me sales, month after month, and I don't have to do anything for it. And, that is just one income stream. And, that is what you want to build your business. That is what you want to do to build your life.
Now, if I even go back to even my offline business, right? It is technically not an offline business, but I cater to offline businesses. I don't do any of the work anymore. Like in the beginning, I was like talking to the clients.
I wasn't doing all the work, but I was doing search engine optimization where I actually helped the websites rank.
I was communicating with the people that would do the websites. But, honestly, I was working more hours than I worked in my job, it was a mess. It was a 6-figure business, but it was like “Man, this sucks. This really sucks.”
Eventually, after I started learning this whole passive income thing, I switched and realized like “Man, I need to find other people that can do the work for me. I take a little bit of a pay cut.
But, it buys back my time.” And, your time is so much more valuable. When, I bought back my time, guess what? I had time to focus on my online business.
Now, I got to the point where I could basically focus on doing my online endeavors, and I can focus on creating that content that put that stuff in place.
And, then it just got bigger, and got bigger, and got bigger, to a point where if I want to go on vacation, if I want to go to a marketing event, you know, if I want to go hang out with my friends, if I want to ride my motorcycle, if I get sick for 2 weeks, I am not going to be stressing out on how am I going to pay the bills, I am not going to be stressing out on how I am going to pay my employees, I am not going to be stressing out, because I have money coming in.
And, so, if you want to get out of the rat race, and you want to get to the point that you have freedom. And, you can actually think. You have thinking time which is very very important. You want to focus on passive income, and not active income.
Because a lot of people they are doing things like Shopify, right? And, Shopify, and I am not trying to hate on the business model, but I don't like business models that are like active income for the most part. And, the reason being is I am focusing on building long term assets, just like stuff like real estate.
So, for example with drop shipping, you are running Facebook Ads, you are going to get some sales, but if you turn those Ads off, bam, your income disappears, right?
Everything that I think about is long term. You want to play the long term game because if you are doing short term things, income streams can dry up.
Compared to building things like this, and you put assets in place, your business keeps growing, you keep getting paid, and you are not physically having to do the work.
Like I was saying, putting out content now, it is going to pay me in 6 months in the future, because people can still find my videos. They can still find my content out there on my blog. And, I did it once. I worked once, and keep getting paid.
Now, I am at the point where I am thinking about the second phase of passive income which is stuff like real estate, mutual funds, and stocks, and investments, right?
But, that is not something that the average person should get in right away, because it takes up your liquid cash. It builds up over the future, and its is a really good investment, but in the early stages I treat my content marketing, just like real estate, just like stocks.
I am investing into my portfolio, but my “online portfolio”, right? Every single piece of content that I put out there, it is like digital real estate, but the difference is that I get paid way sooner.
Proper Mindset For Success:
Now, I want to set you up with the proper mindset to succeed. I always tell people ” You know, 3 to 6 months, you can build a pretty exceptional income, right?”
But, if you go into it thinking like, for instance, you are going to get paid, if I do the work today, I am going to get paid in 2 days from now, you are setting up yourself for failure.
Now, with that being said, if you are doing YouTube videos for example, and you are doing a review on “Iphone X” and you are linking to it, you could easily get a sale within a day or two. Because, it could end up ranking inside of YouTube, and you can get a sale.
But, when you actually go in with the mindset of “I go to work and you don't get paid within a week”, you are setting yourself up for failure. You are not focused on building passive income, you are focused on building active income.
It happens all the time. There are times when I create content and I literally get paid that day. I push it out to my audience, and then bam, I get paid. But, I am not focused on that.
I am focused on farming that real estate every single day because I know that when I put in the work now, it is going to have a compound effect over time. It is going to build up and at that point, I don't have to worry about it. The work that I am putting in today, I am going to keep getting paid in the future.
So, you want to think about that mindset when you are building passive income. Because most people try to create passive income, but they have the active income mindset. Like, they do the work now, they expect to get paid, and it never works, right?
And, for me, I am always playing the long game, I am always thinking about “Man, 6 months from now, this is going to make me a killing!” This is going to make it that my income increases, my lifestyle gets better, I am not stressed out. So, everything that I do is focused on the long term.
So, that is my suggestion for you. There are different business models, but honestly, I don't think that there is a better business model than what I just taught you because it is something that you do once, and keep getting paid for it.
So, with that being said, I talked a little bit about sales funnels, and how I put that into place. And, so, what I am going to do, at the end of this video, I am actually going to link to that, so that you can watch that video, so that it can make more sense on how the process works. But, when you combine content marketing, and sales funnels, you literally have passive income that comes in, every single day.
So, with that being said, if you didn't hit the “subscribe” button, make sure that you do that. And, if you have any questions on anything, comment below, and I will answer your questions in the comment section. Take care.