Everyone I ever talk to – internet marketers, business owners, self-employed professionals, employees, or students alike — all tell me if they could have one financial wish among all the rest… it would be to create Massive Passive Income.
Lots of people talk about it.
But few people really know how it’s done.
Dan is the absolute ‘Master of Passive Income.”
Most people will work until they die with NOTHING to show for it.
That’s because trading your money for time (like most people do) will NEVER make you rich – and 99% of people never realize it.
In fact, the only real way to become financially independent is to make money while you sleep… and have different streams of passive income that are generating money for you every minute of every day.
For the first time ever, Dan Lok is going to show you EXACTLY how to generate passive income, step by step, no matter who you are, where you are, or what you do!
How to Generate Massive Passive Income with Dan Lok
What does passive income mean to you? What does financial freedom mean to you?
- Money working for me not me working for money.
- I get to do the things I am passionate about.
- Not working paycheck to paycheck to make ends meet
- To do things that actually make a difference in the world
- Living life on your own choices
- Doing what you want, wherever you want
If you are going to win the game you have to first define what winning means for you then work backwards to get to your goal.
4 Sources of Income:
Linear Income: Trading hours for dollars. It’s predictable and give you money quickly but will never give you financial freedom. When you stop working your income stops.
- Consulting Fees
- Professional Services
Leverage Income: Using other peoples time, money, assets, connections, talents, expertise and resources to make you money. You are not doing all the work yourself.
- Strategic alliances
- You have sub-contractors
- You have good will
- You have client contracts
- You have salaries staff
- Sales based network marketing
Passive Income: The result from leveraging people and a system to make you money.
- You have commission staff
- Buying based network marketing
- Internet Income
- Dividend Income
Windfall Income: Getting a large sum of $ all at once
- Appreciation of RRSP’s
- Appreciation of Stocks
- Winning the lottery
- Selling a business
- Appreciation of real estate
- Large bonuses
Write down your total annual income: $____________________
Categorize your sources of income? Are you stuck in linear?
Why passive income is a dangerous fantasy and the Myths that keep you from financial freedom:
The truth about passive income will set you free but first it’s going to piss you off. This will give you a new perspective that you will need to have long term success with passive income. You think this will be a money conversation but by the end you may think this as a life conversation.
- Just because it’s passive doesn’t mean it’s easy.
- We are taught and conditioned to make linear income.
Myth #1: Financial Freedom
Definition of financial freedom: When your passive income exceeds your expense.
Life is not about retiring and doing nothing. Trust me after 2 months you will be bored out of your mind. After 5- 6 movies everyday you are not going to like movies so much anymore. You will lose purpose. The secret to life is progress, when you stop seeing progress you will become unhappy. When you are growing you are happy and fulfilled. Think of the moment in your life when you are the happiest. Where you doing nothing or where you doing something worthwhile. Financial freedom can allow you to shift focus.
There is a difference between financial freedom and F.U. Money. Don’t aim for financial freedom. Aim for financial confidence. Develop the skills to make money anytime anywhere you want no matter the circumstance. Financial confidence is the ability to be dropped in any city anywhere is the world, start from nothing and have the ability to make money.
- You can’t stay ahead of your competition passively.
- You can’t maintain a loyal tribe of customers passively.
- You can’t lead great teams passively.
- You can’t create meaning, passion or purpose in your life passively.
Every time I’ve seen someone create a business, with the ultimate intention of getting away from that business and its customers as quickly as possible, instead of moving towards that business and its customers IT FAILS.
The business that you’re investing in or creating doesn’t tend to be creating and VALUE for its customers or for anyone. So it doesn’t spit out the cash that you were hoping it would. So many times I’ve seen people pursue passive income and end up having active losses instead.
Avoid the shiny object syndrome. Stop jumping from one opportunity to the next hoping that you will find the silver bullet to your success because it doesn’t exist.
Myth #2: Passive income is easy
- The definition of passive income on Wikipedia is wrong.
- It’s not easy and requires a lot of work.
- Passive doesn’t mean effortless and doesn’t happen overnight.
- Just because it’s passive does not mean it’s permanent
- Set it and forget it is not how you make massive passive income
People interpret the message as “Passive income is easy and effortless, all you have to do is set it and forget it”
When you truly understand the message and reality sinks in “Passive income is a great revenue source that is earned from persistent, ongoing cultivation”
Aim for “Leverage Income” in a business you care about, NOT “Passive Income” in a business you don’t care about. Greater passion leads to greater income.
Passive 4 hour work week crap is the wrong mindset. Instead of thinking what is the least I can do to make money think about what you can contribute to the world and how you can give your business purpose.
Don’t spend your money and time on this get rich quick, magic pill crap. Invest in your skills to create more leverage income. Learn that skill and master it. Master 1 new skill at a time. Build upon the skills you already have.
How to achieve mastery = Focus for a long period of time
An armature knows 1000 moves but practices them 1 time. A master knows 1 move and has practiced it so many times that they don’t even think about it. It becomes a natural reaction.
Become world class at what you do and people will line up to do business with you.
Business is not for the weak, or for the want to be. Business is for the gladiator.
- 96% of businesses fail in the first 10 years. Only 4% of businesses survive
- To be the 4% you can not do it passively. You won’t stay successful if you do it passively. You can become successful but sure as hell you won’t stay successful.
- It is harder to stay successful then it is to become successful
- Don’t study one hit wonders
Times change. If you don’t adapt your business it will evaporate.
Myth #3: It’s what you do
It has 0 to do with what you do but some businesses are easier to scale.
You need to be passionate about what you do. So you will enjoy working and can give as much value as you can. Trust me your customers and employees can notice if you are not passionate about your business. If you are not passionate about what you do how can you expect other to be.
Hello kitty makes 800 million a year by leveraging it’s intellectual property through licensing it’s stupid cat character.
How can you create more leverage income in your business?
Steps to creating and enjoying the wealth you deserve:
What does it take for you to feel wealthy?
“No amount of money will make you wealthy. Wealth is a state of mind”
F.U. Money Formula
(Platform + Growing Demand + Value) X (Automation + Scalability) X Controllable Leverage = F.U Money (AKA. Live life on your terms)
The biggest reason businesses fail is because they can’t find enough customers and make transactions with them before money runs out!
The great thing about using a platform is you can leverage the success of large companies that already have customers completing transactions.
- App store
- Marketplace: Buyer + Seller
- Growing Demand: over 575 million active users
- $10 billion in revenue for developers
- has 160 million credit cards on file
- Marketplace: Buyer + Seller
- Growing Demand: 244 million active users
- $88.9 billion in revenue in 2014
- has 112.3 million credit cards on file
- Marketplace: Buyer + Seller
- Growing Demand: 155.2 million active users
- $16 billion in revenue in 2013
Leverage the success of a giant to get to success more quickly. It’s so much work to do it from scratch.
If you have a strong enough WHY the HOW and the WHAT will come to you.
Automation comes in many forms including:
- Building a team
- Bringing in a partner that takes over the daily operations
- Creating software to automate tasks and growth
- Outsourcing tasks to freelancers and contractors
Having scalability means having a business with no growth problems. Where you can turn up the heat on what you see or how much you sell, any time you want.
How To generate massive passive income:
- First, realize you are already wealthy. Most places in the world people find it hard to get the basic necessities of life. You have someone to build a shelter over your head, clean your water and provide food for you to eat.
- Find a market within a platform a platform and provide real value in that marketplace
- This builds you a sustainable, profitable and purpose driven business
- Once that happens, you can find ways to leverage yourself through automation and scale up your business.
- This evolves your business into an asset.
Dan Lok’s Books
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