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Why I’m Calling BS on Passive Income

Writer: Tamara ReidTamara Reid

If you’ve spent any time in the online business world, you’ve probably heard the saying “make money while you sleep!” The boss babes and shEOs of Instagram will tell you that passive income is the golden ticket to financial freedom - just launch a course, a membership, or an eBook, and watch the cash roll in while you sip cocktails on a beach.


But here’s the truth: passive income isn’t passive at all. In fact, it’s one of the most aggressive business models out there.

To actually make money while you sleep, you have to market the absolute shit out of whatever you’re selling while you’re awake.

That means:

  • Planning, building, writing, and designing content.

  • Automating lead generation and sales funnels.

  • Filming content (yes, that includes getting glam).

  • Editing, publishing, and consistently marketing your offer - again and again.

And that’s just to make a sale.


Let’s take a monthly membership subscription as an example. The reality? You’re required to show up to plan content, film face-to-camera classes, and engage with your community. You’re not just selling access to information; you’re selling your presence, which means you now have a full-time job maintaining the experience your subscribers expect.


Once you set a bar for how much value you provide, you’re locked into delivering that level of content, engagement, and support. Anything less? People cancel. The churn is real, and you’ll constantly need to replace members with new ones - aka, more marketing, more selling, more effort.


If there were a shortcut to making money, we’d all be taking it. But the truth is, sustainable income (whether through a course, an eBook, a membership, or a program) requires work.


That doesn’t mean it’s not worth doing. It just means you need to be strategic.


Instead of chasing the “easiest” way to monetise your offer, ask yourself:

  • What business model aligns with my skills, energy, and availability?

  • How much time can I realistically commit to marketing my offer?

  • Can I maintain consistency over months or years?

Ready to Build a Business That Lasts?

If you’re serious about launching an online course, membership, subscription, or program (one that actually works and doesn’t burn you out) Inside Industry has helped leaders like Lia Trebilcock, Robyn McAlpine, Dr Martina Lavery, and Chiza Westcarr successfully launch and stabilise their digital products.

We’re taking on new projects from April 2025. If you want to create something sustainable (not just hype), let’s chat. Get in touch today.

 
 
 

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