The Passive Income Lie - Internet Marketing's Dark Secret - Miles Beckler

The Passive Income Lie - Internet Marketing's Dark Secret

In this post, you are going to learn the truth behind the the "Passive Income Lie" and why you should be focusing on creating active income instead.

Now there's a bunch of gurus and fake gurus out there and way-too-many of marketers promoting the idea of passive income.

"Just get started online marketing it's all passive income... You will make the passive income and you'll never have to work again all you'll do is you'll be sitting on a beach in a hammock drinking Mai Tais"

...Or something like that and it's all bullshit.

To be perfectly honest with you the idea of passive income through anything online at all and honestly through most types of income generating systems passive income is just complete bullshit.

The video goes a deeper into the passive income lie...

And the problem with this is, what it's doing is it's giving false hope to a lot of people.

Internet Marketing is Easy?

People who are new to internet marketing... Their expectations are in the completely wrong place. They think "...oh cool I can just go sign up for this system. I've got to do two or three things. Get a couple of people involved and that's it."

Like this internet marketing is the easy ticket to success and riches... And that is so far from the truth!

You know I network often with multiple six and seven figure and even some eight-figure earners online and I can tell you this one thing is the most common thread throughout it. They are all working.

They're hustlers. All they do is work!

It becomes this passionate thing... A desire to serve a greater good and to serve a community and to serve your customers in a greater way.

Let's look at one common 'passive income' business, writing Kindle books, for example.

I was just having dinner the other night with a guy who makes multiple six figures a year on Kindle books and guesses what he is set to launch 30 new books in the next 45 days!

He is incredibly active in this business. Now, he's not writing every book... He's got a team helping him out, for sure.

But his income is not creating the kind of lifestyle that he's able to "retire" from.  He sees through the lie of passive income!

And speaking of retirement have you ever met anyone who's retired who's totally fulfilled?

A lot of people I know who wait until the end till they hit that retirement moment and then they go on to passive income mode... They're bored!

They're bored out of their mind they don't have anything to do. They're looking for something to do. And it's not as positive of the situation as it's built up to be.

Another passive income lie is buying and holding real estate properties and becoming a landlord. Look, I've done real estate investing.

I've flipped four houses with a team of investors when I was in college so I get the real estate investing game.

Honest truth? It is absolutely not passive income!

Here's Gary Vaynerchuk's response when someone asked his take on this passive income thing!


Just get a rental and put a tenant in there and you're done, right? Wrong!

You are still on the hook for all kinds of things. Like all the maintenance anything goes wrong. A water heater goes out. You get the phone call in the middle of the night.

What if your tenants trash the house when you leave? Now you not only have to fix the problems (or coordinate with a team of contractors) but you also need to go put new tenants in.

"But Miles... What about property management?"

Not only will they cut into your income, but they can't handle every detail of a repair or renovation... And who hires and manages the property manager anyways?

Real estate is far from passive!

Really there's no such thing online as true honest passive income.

Now there are a lot of income streams that you can set up and they will generate income over time for you.

I know a bunch of people back in the day before the big Google updates of 2012 13 and 14 who were making 10 20 grand a month off of Ad Sense ad sites and just running advertising and they thought they were on the gravy train.

They thought it was all passive and everything was perfect.

Guess what? Google changed the rules and totally changed the game... Overnight!

Their sites fell out of the index and their income completely stopped and they went back to ground zero. Since they thought they had achieved the 'passive income' goal many of them stopped hustling.

Their finger was no longer on the pulse of the internet marketing industry.

So many people had to start back at ground zero many spent every dollar they were making as fast as it was coming in. Their lifestyle became a $20000 - $30000 a month lifestyle to afford those fancy cars they had in their garage.

They didn't build up an emergency fund and they had to get back to work starting at step #1 again.

My goal here is to try to help you get your expectations set right as you embark on this journey of making money online through internet marketing.

There are too many people here online promising these bullshit ass dreams and these over promise under-delivered courses that are going to "teach you how to make ultimate passive income" and it's fake.

They're putting up their income reports right you might have seen their passive income reports that they have to actively create every single month.

And if they aren't creating the reports, a VA or writer are... They have to manage the person and hire the person who's doing it.

Then you have Mr. Money Mustache. I don't know if you're familiar with his ideas or his work.

His whole bit is that he "retired" at 35. And this guy works all the time!

He is always publishing his blog.

He is incredibly active he's an active real estate investor. And being a landlord is a total job... As is blogging!

So the point is here... Many of the gurus and fake gurus are going to be selling you this dream of passive income and it is a total lie.

I want you to get your mindset right because you've got to understand that takes work so you're ready to put in the work!

You are going to have to dig deep and get your knuckles to the grindstone to make this work! If you stick with you'll create active income.

And let me tell you from experience it is far better than a J.O.B. based income.

It's far better than having to commute on a road full of thousands or millions of people every day. My commute now is 22 steps to the coffee maker after I have my morning meditation and then I sit down with a cup of coffee at my computer and I get to plan my day.

The Big Takeaway

Every day I wake up ready and excited to push my businesses and push my websites forward because I'm inspired to do so. Just like many of these people selling you the passive income lie.

They are passionate about what they do. They have great messages for the world (sometimes) and they are taking action to get those messages out to the world.

My issue comes in the fact that they wrap it in a false idea of passive income and give you the wrong idea in the process.

If you want a big takeaway from this post...

You've already seen it a few times, so let me break it down simply, here.

Find what inspires you... Find what is deep down inside of you that gets you excited and that's going to keep you excited every day for a few years and then dig in and start putting out content on that topic every day.

Because ultimately it takes a lot of work to create a successful business online. But, know that you can do it!

Once your business is successful, it takes a lot of work to maintain it and keep it growing... And you can do that too!

Don't be afraid of the work. Be ready to work.

Be excited about the work because by doing the work that no one else is willing to do and outworking everyone else in your niche is how you achieve success.

This is the recipe to rising to the top.

It's that "push, push, push"... It's that consistency of creating content every day that creates success.

So don't be fooled by the hype don't get fooled by their marketing messages that are going to sell you this false dream of passive income.

Roll up your sleeves get ready to put in the work and do what it takes and stick with it.

And that my friend is how you'll build a long-term business that can support you and your family for the rest of your life!

9 thoughts on “The Passive Income Lie - Internet Marketing's Dark Secret”

  1. Hi Miles

    Thanks for this post and the many others. I've been enjoying your youtube vids too;)

    I know you took Mike Dillard's course (he ref' you in the webinar!). One of his 'angles' is to actually knock the concept of slowly growing a blog and trickle traffic/list growing.

    I suspect these comments are largely marketing, as his List Grow courses pushes a very different approach.

    Appreciate this isn't directly related to this post, but it came to mind and I was wondering what your thoughts were on those two approaches...?

    (not to say Mike doesnt continue to work hard)


    1. Roham, This is a great question and honestly I think I need ultimately put out a video about this at some point… Because it is well worth discussion and consideration.

      Mike is so anti-organic marketing and SEO it's kind of funny… Especially because my main website receives 700,000 visits per month from organic traffic. With that said, I'm doubling down on Mike's tactics at the same time leveraging paid Facebook traffic and funnels to reinvest in our business and accelerate our customer growth.

      When I first got started I didn't have any money to invest in pay per click marketing, so I had to figure out the organic search engine marketing. Honestly, I'm extremely thankful I did!

      It definitely took years of hard work to create the kind of momentum that we're experiencing now… But if I take one or two months off, my traffic stays the same, month after month. If you are reliant on Facebook pay per click only, the day you stop paying Facebook, your traffic stops.

      Both approaches have merit and both approaches have enough success stories behind them to prove that both approaches do work. I've always looked at it from a "more time than money" or "more money than time" point of view. If you have more money than time, paid marketing would be my starting point. If you have more time than money, organic marketing would be my starting point.

  2. Hi Miles,

    Thank you for an enlightening article. just confused about a point:

    In your recommended courses the number 2 is "Authority Hacker".
    in their intro webinar recording, the two things they concentrate on is:
    "Passive Income" and "Proven System" that can be duplicated. so am I missing something? please clarify.

    1. Just a semantic mis-match... What they call passive income, is not passive.... It is residual.

      You build the site and get paid long term. But it isn't passive because you need to keep growing the site, updating it, etc.

      They teach you how to outsource most all of the process, but it still isn't truly passive.

      I wouldn't have chosen that word, personally... Obviously they did.

  3. Hello Mr. Beckler,

    I enjoy your videos because you provide very valuable tips and advice! However, I disagree that "passive income" is a lie.

    I believe that "passive income" is meant to mean that once you create the product you do not have to go through the processes and procedures to build and produce the product again. For instance, the drink called Coca-Cola has gone through very little changes since my family purchased the patent for it and marketed it back in the late 1800's. While the contemporary public company has added new products it is the marketing that actually changes over the years. They also must create and bottle the product but the formula remains constant and does not need to be reinvented.

    I understand your point that the sales aspect takes continuous work but I would not say that "passive income" is a lie. You can add new products but you should never have to reinvent a product unless it was a bad product from the start. I personally believe that one needs passive income, investment income, and active income to truly be able to call themselves successful. I also believe that active income must be a mix of fixed income derived from analysis or consulting work and variable income derived from basic brokering or multi-level marketing where the income has the potential to expand exponentially based on commission structures and sales volume.

    1. Scenario... You create one product (already, we are not 'passive') and you sell it for years... But you MUST go in and update your wordpress site, you must manage customer support, there will be updates to that product over time...

      Hence "Passive income" being a lie.

      It is never passive... Ever. Look at the fake guru in the 'passive income' world... Speaking at T&C this weekend, launched new products last year, still putting out content... Far from passive.

      Now, is it highly leveraged? Yes! Is it residual? Yes! Is it the best income type I've ever found? Yes!

      But, let's call a spade a spade here... And you may think this is splitting hairs, but the reality is that the beliefs noobs get in the early days, believing that passive income is real and they can earn 10k passive per mo from fake gurus, is unhealthy at best and closer to detrimental to their success.

      I'm not sure if we've met before, but in the last 4 years, having been to dozens of masterminds and internet marketing events around the world I have a large entrepreneurial network and know hundreds of VERY successful entrepreneurs... People who do $300k/year - $10MM/year+ NONE of them are passive. Zero.

      Lastly, here is Gary Vaynerchuk's take on it, maybe 2 minutes here in this clip and that link will start you at the exact point he answers the question:

      Investors are really the only ones who get to the point of true passive income... Not entrepreneurs. Can a successful entrepreneur who hustles up $100MM from the sale of their business become a passive investor? Sure, but that is not what we are talking about here... This blog and my platform is all about BUILDING the success which is highly active and always will be.

      BTW: I have a friend who runs a $125 million dollar VC fund... After selling his startup for nearly 200mm to Twitter... He is VERY active in the process of selecting his investments... And he is always available to coach and mentors his startups to make sure they achieve success so he can guarantee his ROI. So even the VC world is often far from passive.

  4. Hi miles thank you for the honest video and truth info you listed about passive income scams. You know as a photographer and business getting slow I been looking online. Istock and other sites but they pay cents on the photos if you get approved. So very hard. It is hard when you been since 1990 a photographer and you don't know what else to do to improve your income. Very hard.

    1. Using digital marketing to book more photography clients is the fastest path... Teaching other wannabe photographers how to become photographers with one-on-one local sessions is another path... Reviewing photography gear and creating a photo blog is an option… But that's been pretty well done, so you need to go deep and find a super specific niche like pet photography or photography for real estate

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