The Truth About Setting Up A Wealth-Pump Business: The Passive Income Myth Exposed

To make income from products genuinely passive there are
steps in the process that you can't afford to miss out. In
fact the first phase of setting up your passive stream of
cash requires hard work, persistence and intelligence.
You'll have spent a lot of time, effort and money before you
can truly say the money coming in is truly coming in of its
own accord.

So here's the myth:

Passive Income Is Easy Income

This dangerous myth has been shamelessly propagated by
(almost) all the people selling "Passive Revenue How To
Products" out there. What's worse is that they promote this
myth in their own interests. You see, if they told you the
truth. If they actually said that implementing their fool-
proof programme means working your nuts off and taking a
financial risk then they wouldn't sell so many of their
programmes.

The truth is - us humans love the word EASY. "Easy" sells.
But nothing really worth having (as life often proves) comes
without a price. So in this case, unless you're extremely
lucky, you're going to have to push that passive income
vehicle up, an often, very steep hill before you're going to
enjoy coasting along watching the money roll in.

It's Not Really All That Passive Anyway…
==============================================
In the diagram here…
http://www.leanmarketing.co.uk/champions/passiveincome-01.gif
you'll see that there's a lot of effort involved to get
your product off the ground. During this time you (or your
publisher) will be spending time and money. But even after
you reach the top of the hill (the tipping point) you still
need to be active to a certain degree in order to profit.
When you're coasting along at full speed you need to steer
clear of obstacles. If you forget about looking after
customers
or collecting the cash then your income vehicle will crash.
And you can forget about making any money!

The Active Steps
==============================================
1. Gain Real Experience
Despite what people may say - if you're planning on
producing a "how to" information product you'd better know
what you're talking about. This does not mean attending
courses or reading books (which means you'll just be
regurgitating) but actually knowing (from hard experience)
what it is you're talking about. If you're ethical,
authentic and genuine, then you wouldn't even dare to claim
you know something when you don't. But plenty of people
still do it!

How many people do you see selling "Get-Rich-Quick"
programmes who are flat broke? How many tell you how to make
a fortune on the Internet when they can't even do it
themselves? Too many!

If we can see through their lies then it goes without saying
that if you bluff it you'll get caught out eventually too.

So rule number one. If you don't know about it (from real
experience) then don't write about it!

2. Identify An Opportunity
It amazes me, but some people even forget (or skip) this
vital step and wonder why they never make any money. You've
got to find a community or group of people who will share
the problem your product can solve.

It's your job then to identify a genuine NEED and market for
your product. What pain relief can you bring with your
knowledge? What expert information can you share on a
popular hobby or pastime? What challenges, problems or
dreams do people have that you can genuinely help them with?

3. Create A Valuable Product
This is the point where you leverage your experience,
expertise and knowledge by turning it into a system which
can then be recorded and delivered without you needing to be
there. You can convert this system into a book, eBook, audio
programme, video etc.

A valuable product must be able to deliver on a promise. It
must be well put together and it must be unique. What's your
unique spin on the subject? What results can people
genuinely expect from applying your knowledge?

It's also a false economy to create audio (thinking that
it's easier) for a "how to" product, with steps to follow,
when a more appropriate media would be a book or eBook.
Audio is great for motivation or self-help. But not so good
for step-by-step stuff like DIY, Car Maintenance or How To
Draw. So don't think in terms of what's the easiest thing
for you - think in terms of what's the most effective way to
communicate what you know.

Also, forget the "Interview An Expert" model. It's just a
cheap (and blatantly easy) way to make a quick buck without
coming up with a single unique thought yourself.

4. Promote It Like Mad
Even if you've been published by someone else - it's still
your responsibility to get the word out there. For instance,
if you have a mailing list then tell them about it. Your
publisher is unable to do that for you. If you're
communicating using blogs, chat rooms or forums (where your
knowledge is being openly displayed) then mention your book.
If you're still trying to sell higher-value products and
services then use this as your lower-cost way in. For lots
of idea on promoting things like mad on a budget buy The
Gorillas Want Bananas or Lean Marketing Toolbox.

Don't get lazy when it comes to promotion whether
you're doing it yourself or being published. If you're not
making any money and you're doing very little about it then
you only have yourself to blame; your publisher can only do
so much on your behalf and is likely supporting another 100
people just like you. What's your excuse - you only have
yourself to look after.


The So-Called Passive Steps…
==============================================
5. Collect and Account for Money
It doesn't matter how great the product is, how hot the
market is or how much promotion you do. If you don't have a
system for collecting money then you're not making any
income (passive or not). Be sure to have systems in place
from the outset and account for everything. You don't want
to lose all your profits to the tax man.

6. Deliver Excellent Customer Service
Again, your job is not over until you have a happy customer.
What extras and bonuses can you give? Have you got the
basics right? Is your delivery process as slick and
efficient as it can be? Unhappy customers will want their
money back and will tell their friends to steer clear so
don't crash, due to a sloppy business model, when it should
be plain sailing.


It's Never Passive Forever
==============================================
Eventually, after all your hard work is done, sales will
decline. So make it a habit to keep on promoting. It never
stops. To mistake "passive income" with "passivity" is to
see all your hard work come to nothing. Take responsibility
and make it pay. This diagram illustrates the point…
http://www.leanmarketing.co.uk/champions/passiveincome-01.gif


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