 Hey, John Crestani here, technology entrepreneur and I'm going to be talking to you about how to make passive income starting at a big freaking goose egg of $0. Now I'm going to be going over a few things. First, I'm going to be defining the difference between active and passive income, which is important to know. And then I'm going to be talking about how to create active income. And then I'm going to be talking about how to change that active income into passive income using a few short steps. So let's get it. Hey, John Crestani here, internet entrepreneur, having created over a quarter million dollars a year at least of passive income for myself. And I'm going to be talking to you today about how to create passive income for yourself starting at $0. Now the first thing you should understand is the difference between active and passive income. First off, no income is truly passive except investments that give you dividends each year or bonds. However, there are income streams that are more passive than others. For example, doing something like consulting where you're taking what's in your head and giving people advice on maybe it's management or hiring or recruiting or marketing or BPO is a very active income stream. And in it, you are trading hours of your time for money passive at all. Whereas something like I teach affiliate marketing is a bit more passive because after you set up an affiliate campaign, you can just let it run after you've gotten profitable and typically marketing campaigns will run anywhere from maybe a few weeks to a few years just on their own. Once you figure it out, the formula to getting profitable. But even that isn't 100% automated because it still takes work and analysis and it takes a lot of optimization, it takes looking at your data, it takes following up with people who are going to pay you. And although the work is again mainly upfront in affiliate marketing where you're figuring out what marketing resonates with your target audience and you should be regularly conducting split tests and testing out your marketing message and trying advertising on new sources and split testing different offers regularly if you want to be competitive in this field. But on the same token, it is passive somewhat because you can make money while you sleep. Once you've set up a marketing campaign, the ads or the posts or whatever are out there on the internet, the web pages are all working and sales and money is coming into your pocket and your bank account without you even having to touch a computer. Now, I'd advise you to not to fall for anybody who tells you they can make you a truly passive income. Realistically speaking, passive income really just comes from money. You have to have a lot of money and then your money can turn into passive income through bonds and dividends and stuff like that. So always be skeptical of people who tell you that stuff is truly passive. Now for a little story, I mean, what I used to do, I used to travel the world because once I got a good marketing campaign going that was making me $1,000, $500, $10,000 a day in profits, I could travel for months. I could not even really touch the internet and that money would just keep coming in to my bank account. It was great because I love going to kind of off-the-grid locations in the world. Some of my favorite locations are Taghazout, Morocco, Esauara, or Esawira, however you pronounce it, Jerry Quakwara, Brazil, which is beautiful. It's right up on that kind of horn. Great place for kite surfing, Tarifa, Spain, beautiful place, Hattien Beach in Thailand. I mean, these are just some of the most amazing, gorgeous places on the earth. Cuba, Havana Cuba is one of the most amazing places in the world, yet these places all have very poor quality internet. But I mean, they're just unbelievable. They're like dreams, but there isn't a lot of ways to make money in these locations, partially because they're not connected to the whole grid that the world's connected to. And I've always sought out these places that are a little more off the grid. And that's what nourishes me. I love nature, I love humanity in its more raw form disconnected from all these smartphones and internet stuff. Ironically enough, having an internet business has enabled me to go experience all these beautiful locations in the world. So the passivity that affiliate marketing allowed me enabled me to experience a level of life and see things that many others haven't seen. Now, in order to make passive income starting from zero dollars, it's very, very important. You take note of the second step, which is you should start with active income because it is just far easier to get into. And as we already said, to make truly passive income, it's really just about having money and investing it right. Now, many people want to start with passive income, but that's extremely hard to get into. Finding areas of leverage such as spending money on ads where you can with a click of a button reach billions of people or utilizing stuff such as outsourcing, which takes work from your plate and puts it on others, is a good way to start making your income more passive. But ads and outsourcing both cost money. So it's kind of hard to start out with if you don't have any money to begin with. When you start with active income where you're trading your time for money, you don't need any money to invest. You can simply invest your time doing services or done for you work or consulting or being an agency and starting to do that to accumulate money. Now, there are lots of business owners who need to help with all sorts of areas in their business. So there's lots of opportunities for you to create services to help those business owners. As the world gets more and more complicated and as the environment changes every single week, it seems it just means there's more opportunities for more done for you services that you can offer business owners like me or all the other business owners in the world and make money from them. The trick is you want to find business owners who have more money than they have time and almost every single business owner out there that has a profitable business, which there are tens of millions of don't have a lot of time, but they do have money that they can spend to help save their time so they can focus on more profitable activities. I personally spend about $35,000 per month on different consultants and agencies that have done for you services. $35,000 a month is a lot of money. I have a lot more money to spend for different people who come to me that have done for you services for me. I'll give you a few examples of done for you services or consultants or whatnot that I've hired over the years. Support desk hiring and agent hiring and recruitment, YouTube video production, editing, posting, direct TV media buying in the US, international clearance consultant for media buying overseas. I mean, long story short, I've hired a lot of consultants for a lot of different types of operations. There's a ton of niches that you can hire consultants for. You've got to find your lane. You've got to find what people want. You've got to find what people are willing to pay for. Ultimately, the fastest way to do so is what I always say, which is instead of hanging out with your broke friend at your family reunion or your broke cousin, hang out with your richest family member. Start hanging out with the richest people that you are surrounded by. Hang out with the richest person in your town rather than your broke friend or your broke family member. That's the easiest thing. And as you start getting a sense of what people who have money or who have active incomes need and want, you can start finding ways that you can create services and use your time to help solve their problems for them and make a lot of money in return. Now, the third step to creating passive income starting from zero is you want to turn your active income into passive income. Now, when you get a lot of money from active income, please don't just go out there and blow it. This is a big mistake that lots of people do, salespeople, top performing biz dev professionals, early entrepreneurs, is they take that active income and they just spend it frivously thinking that they'll just be active income forever. Instead, what you want to do is you want to take whatever money you make from active income, stuff you're actively working on and use that to invest in projects that can create for you passive income. Now, one way to do this is if you are making money doing affiliate marketing by being an influencer on maybe it's Twitter, Facebook, YouTube, whatever, you take a portion of that money and you invest it into doing advertising for the products or services or whatever that you're selling. That gives you a degree of leverage so that now you can start getting viewership without having to actively create new content all the time. For instance, if you're a sales or a business development professional, you could take some of your active income that you get from selling and people and closing deals and using that to invest in starting a YouTube operation. Now, you're able to reach more people more often and create more of an inbound flow of business deals rather than having to go out and hunt for prospects and business deals yourself. Another way you could do this is if you're a marketing person, you can take some of the money that you are making from doing marketing for clients and you can use that to invest in buying websites that are already making money and put your marketing skills to use and just do some tweaks to make those websites make more money. So now you have an asset that's bringing you in money rather than you having to go out and work on clients for that money. There is a whole plethora of ways that you can get creative and build passive income systems for yourself. But what you need to do is you need to make it a priority to take the money that you make from active income sources and reinvest it into passive income projects. Now, one of the things that I do routinely is I always take usually the lion's share of what money I make each year and I invested in a few choice kind of what I call passive income projects. Now, for instance, I would have netted about $1.8 million last year in profits, but what I did was I did about three bets. I call them side bets every year into different projects I put about a quarter of a million dollars into in order to create passive income for myself for more passive income. An example of some of those projects that I did from actually doing affiliate marketing and selling courses and all this other stuff which takes up a little bit of my time is I invested in one was software. So I put about a quarter million dollars into building software last year. It didn't work out. Another one was I put about a quarter million dollars into a different networking related activities just to kind of open up opportunities for myself kind of just this was totally purely speculative, spontaneous, surrounding myself with higher level people to see what opportunities that may lie in my blind spots, right? It's impossible to be aware of stuff you don't aren't even aware of. So I figured networking with richer people would help me in that respect. And I also put another quarter of a million dollars into working on TV ads, which have a much longer shelf life than affiliate marketing campaigns affiliate marketing campaigns typically work for, you know, a couple months to maybe, you know, a year. And whereas TV ads have more of a shelf life, when you get a winning TV ad, it might last for anywhere from two to four years rather than maybe the average affiliate marketing campaign which might run for, you know, three to six months could be longer, could be shorter depending on your niche. Now of those side bets I did, you know, the software didn't work out, the networking didn't work out. But what did work out for me was the TV infomercials. And I had to invest another quarter of a million dollars this year into getting my TV ad campaigns working so that they could last for a long time. And I'm happy to say they're working now. They make me, you know, a good deal of money. And, you know, we're on TV every single night of the week out here in the United States. And we're expanding internationally. So always take the money make from active investments and put them into more passive things. In my case, you know, doing affiliate marketing and selling courses, you know, training and stuff is somewhat passive. But again, it's not purely passive. I'm trying to move it into more passive areas. I keep shifting from active to more passive software is a very passive income source when you can build up a large base of recurring subscriptions, building companies and having employees do lots of the work for you is very passive, especially when you start getting management structures in place, multiple layers of management. And the most passive is obviously just money in investments, not speculative investments. You know, all of my investments are in municipal bonds, or most of my investments are in municipal bonds, which are, you know, really unless the US government goes broke, I'm not going to lose my money. So, you know, unless the world collapses, essentially, I'm not going to lose my money on those investments. And they bring me a solid returning cheer. And I've estimated for me to retire on my current lifestyle, which is about a quarter of a million dollars a year, I would need $6 million in municipal bonds in order to just be able to live the rest of my life without having to touch anything. So that's the long and short of things. I hope you guys enjoyed this video. I hope you learned something. Make sure you like the video for the algorithm, subscribe and hit the notification bell if you want to come to my weekly lives, which are every Monday around 9 a.m. I give away a lot of money for those of you for following me as a reward. You know, I gave away $10 Amazon gift card, I gave away a $50 Amazon gift card, and I scratched these all live on the camera so that whoever's the fastest can claim it. I gave away about $500 this week, and I'll be giving away hundreds of dollars every single week moving forward. Furthermore, if you'd like to continue this discussion, we have our Discord forum. There's a link to that in the description. 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