In this video, I am going to teach you how to create passive income for real. Some say passive income doesn’t exist.Be sure to get your
Free 19 Business courses below. 80 to 85% of all commerce is done offline in 2016. There are many people who don’t know how to build a business other than an online business. There’s a lot of conversation about passive income. Often it is one-sided. Passive income from online courses. Passive income from affiliate marketing. Passive income from doing something online. Passive income is real. Passive income is possible.
I’m going to teach you how to develop sustainable passive income. Now, what I didn’t say was it would be easy.
Right now, we’re looking at DC Comics. This is a conversation I had in writer’s groups I frequented. I understood many people weren’t getting it. I was writing “How To” books and they were writing fiction. They were like…” How can we get some marketing with fiction?”I said…” You’ve heard of Spiderman, right? Heard of the Flash? You’ve seen the t-shirts. You’ve seen the figurines, right? Well, all of those guys are fiction and fantasy.At DC Comics, they’ve got a lot of stuff going on. They’ve got the characters, the comics, the movies, the TV and the games.
All of this stuff is licensed out to other people. They ask DC Comics… “May I be a licensed merchandiser?” They’ll answer with… “We like what you are doing. We are going to approve you to be a licensed merchandiser.”
It’s called passive income.
Green Lantern. Superman. Batman. These comic book characters are decades old.
How old is Superman? He was created in June 1938.
Someone has been making money licensing out his image, his name, his costume for decades.
Let’s go to another one. Disney. Walt Disney. How old is Mickey Mouse? He’s older than Superman. Disney licenses out Mickey Mouse and they get royalties. That’s passive income. For a long time, Nike didn’t own any factories. They were a licensing company, a marketing company. They didn’t make shoes. They marketed the logo. Somebody else did the heavy lifting. They got passive income to the tune of billions. Michael Jordan makes $90 million a year from his licensing, passive income from the Air Jordan brand. He makes more money now than he did when he was playing.
Now this is one of my mentors. I used to work at Northside Hospital and Curtis Mayfield was one of my patients. I used to see him all the time. The man schooled me in passive income, licensing, and royalties. He was giving me gold. He was 90% paralyzed and supporting his family off of his passive income.
You need to learn how to create something.
Everybody is trying to get rich off of other people’s stuff.I have the right to do whatever I want with my intellectual property because it’s mine. Now, Milo is very popular. This is a character. Very simple. Baby Milo was created. All of this stuff is licensing and merchandise. The company doesn’t make all this stuff. They license out the rights and get a percentage. That’s durable passive income.
You know what Hello Kitty is. You’ve seen it, right? Hello Kitty is a $2 Billion per year brand. They don’t make any of this stuff. They license it out. Do you understand where I am going with this?
The surest road to sustainable and durable passive income is to create something that does not exist or to make something that does exist much better and put your brand on it. That’s how you develop passive income.
You’ve heard of the Super Soaker. If you are of a certain age, you probably have one. It was invented by Lonnie Johnson 20-25 years ago. He’s made over $100 million in passive income by licensing it to Hasbro Mattel.
Well done Lonnie. He’s one of my mentors.
The path to sustainable passive income is to create something, not to use someone else’s stuff. Think of it this way, the next ten years is going to pass whether you do anything or not. So, you might struggle to build something for two or three years, then in ten years you are a millionaire. That’s how you do it. Not with all this quick, hurry up, I’ve got to have my money now. You sound like a bitch. Real adults build things.
Once you’ve made your money, then you park it somewhere. My investment was in me and my business. Let’s just be real. If you get $50 million. What do you do? You’re going to have to pay your capital gains taxes.I’ll give you my scenario. This is what I like to do for fun. If I won the lottery, there’s a scenario for each level of income… $10 million, $20 million, $50 million, and $100 million.
For the sake of this video, let’s just say I got $50 million. Let’s say taxes are paid and $50 million is left. I would take $5 million and put it in my personal bank account. Then I would take $45 million and buy as much class A commercial property as I could get my hands on.I’m not going to manage it. We’re talking 7 figures a year passive income. This is how you get true and sustainable passive income.
I’m going to tell you my passive income story.
In less than eight years, I made $3 million income from my book, Making Money A-Z with Self Storage Unit Auction and my courses. When the most money was coming in, I was doing absolutely nothing. I would wake-up with $1500 to $3,000 in my account every day. This went on for about three years.
How did I get there? I went out and hustled my ass off and started doing stuff in the storage auction business that no one else was doing. Then, when I got out, I sold this book about it, this intellectual property. Do you understand how this works now?
Create your own dreams. Put your best foot forward. Put your soul into something.
Let go of the new wave stuff.
Look this cat up. Buy these books. The Effective Executive. Get everything by Peter Drucker and by Edward Deming. These books will help you build real businesses. They’re old. But this shit works. That’s how you build true and sustainable passive income, by creating something, by building something, by being something.
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