5 Problems with Passive Income | What They Didn’t Tell You

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Hey welcome back to my channel
today I want to talk about problems with passive income
this is because a lot of people are not honest about making
passive income they want you to believe that making passive
income is fast it's easy you can make hundreds of thousands
of dollars every year without much effort this is because
they want to sell you courses they want to sell you
some programs so they can make money
from you instead of really helping you make money yourself
and I've made videos before on how to make passive income
print on demand and before jumping into making
more videos like that I really want to clarify a few things
and give you a more realistic honest version of making passive
income as a creative professional so you know what you are up
against especially due to the recent changes in our society
with the pandemic crisis in all aspect of our daily lives I think
the reality is not the same anymore and it's really important to know what is going to happen when
you try to make passive income I can give you some personal
solutions and I'm not saying that this is going to solve all your
problems but I will try my best without further ado
let's jump into the topic first of all I think making passive
income really depends on one condition is that we have a
functional society if our society is a mess like
right now it's really hard to make a
really good passive income it's just like active income
it's really really linked and I will show you some
examples if you are an artist you're trying to sell on Society6
RedBubble if people don't have money to buy your work
if your work cannot be shipped to the customers due to the logistic
issue due to the pandemic issue obviously you are not going to
make that money at least not as much money and not as fast so your income will be affected
you can not be the only one standing in this fallen economy
as an artist because you have passive income
passive income rely on other people who make
active income because they are your buyers
and imagine if you are an artist you have a big studio and
you divide the studio up and try to sublet to other artists those artists need to be able to
afford the studio space too so you can make your money
as a landlord I'm just saying that a lot of times
you really need a good community functional economy you need
harmony to make your money and you can not isolate yourself
and expect not to be affected by everything that is going on
in this society today the second thing is there are a lot
of people that will discriminate you when you make passive income
maybe out of jealousy maybe out of ignorance and they will say
oh because your family is wealthy that's why you can make that passive
income or maybe they say oh get a real job because making
passive income is not a real job and you are not a hard worker
on the contrary making passive income is really difficult
it's a lot of work it's really a lot of sweat and money invested
a lot of risk you have to take as a investor as an artist the same
so it's not like what they think you are but you'll face a lot of peer pressure
and sometimes you'll face some policy issues like if you are
applying for a residence card and they do not recognize sometimes
passive income they want to see the payment slip
every month they want to see stability and sometimes you'll
have a problem with your healthcare because making passive income is not
covered by conventionally social security you have to buy your own
private insurance in my case I've always been paying
for private health insurance because I know that when I don't work actively as a passive income maker in
Spain in a lot of places in Europe you are not considered as a
let's say a worker you are not considered as a regular person
that needs to be protected and covered and there are a lot of discrimination
in policymaking and this is just a fact maybe we should get together and
make a 'passive income workers union' but that's a topic of another video
for now there are a lot of discrimination going on with passive
income makers and this is just our reality number 3 passive income has no
or very little workplace value maybe right now you want to make
passive income but in a few years you want to take a day job
because you are still young you just want to build passive
income for maybe your retirement as something that you want to do
now but later you want to take a serious day job but unfortunately
when you are going to the interview in front of the
human resource manager as a passive income maker
you are really disadvantaged because they don't normally
consider your experience making passive income as a
valid job experience and they'll say
oh you are just unemployed that's not true
but they would assume that and they don't value as much as
you working a day job and this is again unfortunately a reality
that needs to be changed and maybe you can do something about
before quitting your day job and you say ok I'm going to do a part
time job and build my passive income so that I can maybe go back to
a full time in the labor market and I'm not so discriminated
this can be definitely a solution you have to see what you can do
and what you are willing to do number 4 passive income is
extremely vulnerable no matter if you invest in property or
intellectual property as an artist maybe you license your works your works could be stolen
by some bad guys on the other side of the Internet
or it can be mistakenly infringed by really you know kids who
did a screenshot and shared it and someone else shared it
it becomes a meme but people don't really know that
was your work and you try to claim it you try to you know get
some money and the owner of grumpy cat did that
and she was able to make some money but it's a lot of process
legal fees and time patience even risks because sometimes
you don't get all of the money back and you get really little compensation
for example copyright infringement in China you don't really get all of
your money back but you get some money back and
it's not proportional to the damages that they made
and it's really unfair as an artist people can steal your works
and not to have the full consequences it's extremely vulnerable
this is how it is last but not the least passive
income is extremely hard to build it takes a lot of time and it's
not responsive I mean it's not proportional to your effort if you work a day job you worked
during the weekend for example then you can ask the job to pay
you extra for the over hours if you make more sales
you get more commissions for the sales and it's just
a lot more immediate and it's a lot more proportional to
the effort you are spending you are making but
it's not the case for passive income you are building something
for yourself and it's more like entrepreneurship
like a start up if you work a lot on the start up
doesn't mean that the start up will likely to succeed
it just means more likely there is not guarantee that is the case with passive income
and don't believe on the Internet like if you do this guaranteed
$500 a day passive income I don't think that is as easy
as what they claim and for example I've been making
YouTube videos since 2019 I made almost 300 videos
today and only for the past 4-5 months I was able to monetize it and now I can monetize $70
to $100 every month it's not a lot of money
it might grow it might not there is no guarantee
and that's what I'm saying it's not that immediate
not fast so you need a lot of time to
build it and you need a lot of perseverance resilience and patience in order to make
the passive income that you desire and I do have 3 kind of solutions
if you may call it or suggestions to any creators who want to
live off of passive income the first thing would be start early if I started YouTube 10 years ago
making videos on how to make money as an artist I probably could be
potentially the number 1 in this niche starting early
could make a world of difference and if you can start today
don't wait until tomorrow it will take time
but the sooner you start the sooner you could monetize
your videos monetize your art making sales
so timing is everything my second advice is diversify so you don't put the eggs
in the same basket maybe you've been selling mugs
on Society6 try to sell some hoodies or wall art just try
different things within your niche within your line of work so you don't
put all the eggs in the same basket but I'm not telling you to put bananas
apples in the basket with the eggs it will hurt your image
it will hurt your eggs but just to diversity within
your limit within your niche my last advice is don't count on
one big platform maybe you've been working with RedBubble or
Society6 and you are happy with them also try to build your own print on demand
with your own website or social media because those platforms can also go
bankrupt in this very turbulent economy you never know what might happen
I have some artists telling me that their works had been taken off
RedBubble because of some potential infringement
you never know what might happen maybe you have a very nasty
person going against you and you can loose everything
on that platform so not just diversify your products but also diversify your sales channels don't count on one platform
do your own platform own your own website
have your own content so at least when you need to retreat
you have something to back you up and your buyers can still find you
on your own website alright that's all my advice for today hopefully I have given you
enough information for you to feel confident
and not too discouraged to make your passive income
as an artist if you have some questions make
sure you drop me a comment below that's all for today see you
in the next video

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