Rito and I have worked hard to regularly experience passive income in our lives.
Today however, we will be discussing how Rito’s passive income business paid for his vacation and actually made him a profit while on vacation in the beautiful hill station Coorge, India without even working.
Enjoy the video as Rito tells you all about it:
Long days, meetings, deadlines, customer service, etc…
An entrepreneur’s life is often not as easy as people from the outside looking in might think.
We are always in a rush, working to achieve one goal after the other. In fact, I can’t remember the last time I didn’t have items on my to do list.
This usually means we don’t allow much time for ourselves.
Busy with day-to-day operations, we don’t always have the ability to fully unwind, which can eventually lead to declining performance, poor health and even breakdowns…
It’s crucial for every entrepreneur to pause and take a vacation from time to time.
This can and likely will help refresh us, allowing us to come back with vigor and newfound energy.
That said, Rito recently took a short holiday to Coorg in South India.
Even though it was quite rainy, it was peaceful, tranquil and very relaxing for him, which is huge for his business moving forward.
So why are we telling your this?
Well, during his vacation, he did not work on his drop shipping business more than 5 minutes per day…
Is Drop Shipping Really Passive Income?
During Rito’s holiday, he did have his laptop and only used it once per day for about 5 minutes at a time.
Just long enough to check his ads and modify any daily budgets that may have needed it.
But the big question is whether or not drop shipping is actually a passive income business…
The truth is that yes it is – after a while.
Active vs Passive Income
Since we are talking about passive income, we need to clarify the difference between active and passive income.
Active income occurs when you have a set dollar amount per hour that you charge…
You work a specific amount of hours, and you get paid for it. Your pay is a direct reflection of the hours you worked.
Pretty much any regular job, like your traditional 9am-5pm.
If you stop working, you stop getting paid…
Passive income is different.
There is a much lower effort-to-reward ratio.
For instance, since Rito’s drop shipping business is pretty much automated, he can login for 5 minutes per day and make the same amount as he would if he were at his office.
Substantial passive income is the goal many of us have in mind when we begin our entrepreneurial journeys.
But it usually does not happen when we are just getting started.
The Early Stages Of Building Passive Income
When it comes to building a passive income business, you can think of it like building a functioning machine.
When you build a machine, you spend a great deal of time, effort and money in order to get it going.
But once you finally build the machine, to the point that it functions on its own, all it takes to keep running it a bit of maintenance and TLC to keep it running for years to come.
This is the beauty of establishing and operating a truly passive income business.
To put into perspective, the profit that Rito’s two stores generated in the couple days that he was there, more than paid for the entire vacation.
That’s net profit, not revenue…
Don’t get us wrong, we still need to regularly re-invest earnings back into the business.
But in order to sustain this high level functionality, it’s important to take time for rest, relaxation and reflection to keep things fresh and moving forward.
Pay Your Dues
When you’re just getting started with drop shipping, don’t think about all the money, toys and vacations you’re going to have…
Focus on building a sustainable business.
Focus on doing things correctly.
Build your store, create the theme, logo design etc.
Find and promote your winning products.
Check your ad performance daily.
Do whatever it takes to create that well oiled, functioning machine we talked about.
Time is our greatest asset.
It’s far more valuable than money.
Sure, money can be spent and earned, while time can only be used once.
After a moment in time has passed, it’s gone forever.
You can never physically relive that moment again.
This is why passive income is so important — because it gives you the freedom of time.
Put in your effort and time now, to have more in the future.
That’ll do it for Episode 23 – Great work!
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