Why I’ve Quit the Passive Income Pipe Dream (And What I’m Chasing Instead)
If you’ve been in the online business space for a while, you’ll undoubtedly have been bombarded by posts, videos, and podcasts promising you the “laptop lifestyle” dream of “earning money while you sleep.” The relentless message that if you’re still “trading time for money,” you’re doing it wrong. We’re told that evergreen courses and passive income streams are the ultimate goal, but is that true for everyone?
After eleven years’ experience as a micro business owner, I’ve realised something that might feel like heresy in this space:
I don’t believe passive income works for most service-based micro-businesses. And more importantly? I’ve stopped trying to make it happen.
The Tech Wall: Why “Passive” is a Full-Time Job
Over the years, I’ve bought the training. I’ve sat down to map out the courses, and I’ve been eager to see what passive income has to offer. But every time I started, I hit the same wall: technology is developing so rapidly that by the time I’ve created a comprehensive course on Mailchimp or about a specific CRM, it’ll be out of date within six months.
To keep that “passive” product high-quality and relevant, I would be trapped in a constant cycle of re-recording, re-editing, and re-launching. Suddenly, the “passive” income stream looks a lot like a second full-time job.
While some people build entire businesses around software-specific training (and maybe for them it’s working out well), as a solo business owner whose mission is to help as many clients as possible, I’ve decided that creating passive income is too much of a challenge for me. I’d rather spend that energy helping a client solve a real-time problem than updating my courses for the third time in a year.
The Scaling Trap: Do You Actually Need to Grow?
So, how am I going to scale? The truth is I’m not!
The “stop selling time for money” crowd argues that you must scale to succeed. But this leads to a fundamental question we rarely ask ourselves: Do I actually need to scale?
I’ve looked at the numbers. I’ve looked at my goals, and I can hit my income goals and live a comfortable life by working on a bespoke basis with my brilliant clients.
Tony Robbins recently shared a blog post that resonated with me (and I’m not usually a huge fan!). He points out that “passive” income is never truly passive. Whether it’s real estate or a digital course, it requires management, capital, or constant attention.
Similarly, entrepreneur Olly Richards has spoken openly about why he moved away from the passive income chase. It’s a relief to realise that “bigger” isn’t always “better.”
Freedom vs. Passive Income: Know the Difference
I think when people say they want passive income, what they really want is freedom.
They want the freedom to do what they love, to take a Tuesday afternoon off, to integrate work with life rather than living to work, and to get paid well for their expertise. It’s about making the right choices that work for you.
I don’t have passive income streams (aside from a few tiny affiliate links). I still trade my time for money, though I’m moving more toward outcome-based pricing. By the “internet guru” standards, I’ve failed. But by my standards? I’ve won.
- I set my own hours.
- I work from wherever I want.
- I choose exactly which projects I show up for.
- My clients respect my boundaries.
I don’t fit the “passive income” definition, but I have a flexible business that gives me 100% of the freedom I desire.
The Passive Income Reality Check
Don’t be fooled into thinking a course or an e-book is the magic solution to all your business problems. Any digital product still needs to be marketed, maintained, and updated to stay relevant.
If you love the idea of creating a course, go for it! But don’t do it because you feel you should. It’s okay to work with people. It’s okay to be bespoke. It’s okay to trade your time for a high fee if it gives you the life you want.
Freedom isn’t found in a “passive” checkout link; it’s found in making choices that work for you.