Sure, a lot of these people were just buying hype from these "get rich from drop shipping!" influencers, just like a million other suckers who got dollar signs in their eyes with real estate schemes, pyramid sale schemes, yada yada, a tale as old as time. I don't think this "passive income" trap is really anything new, and I don't think it was some unique thing that "ate a generation of entrepreneurs", as if that trap didn't exist then instead we'd see all these successful people.
Instead, what I think has drastically changed over the past 40 years or so is the ability of a solopreneur to make real money. Just look at all the posts on HN asking about how much people make on their side gigs. You rarely see anything more than a couple hundred bucks a month. There are notable exceptions, but unfortunately a lot of those notable exceptions are scammy, spammy business models. It's just simply much harder as a small/smaller business to make money and compete with the big boys. Wealth inequality doesn't just apply to people, but also companies. For example, in the past many entrepreneurial types may have started retail stores, while now it's incredibly difficult to compete with the likes of Amazon et al. I read an article recently that the number of public companies has halved compared to a few decades ago. The Wilshire 5000 stock index, for example, actually only includes about 3400-3700 companies now.
A more hasty fellow might have flagged this post as self-advertisement without necessary tags.
- The productivity gang, if everyone is so productive and so well organised then what are the outcomes of this productivity?
- Self help - if self help books are solving real problems then where is the need to buy multiple self help books?
- The course trap - if someone is already earning millions dollars where is the need for him to sell $699 course
These are some questions I would ask myself regularly, there is nothing right or wrong because end of the everyone has to servive.
The author is acting like it hasn't always been this way. But it always has.
There have always been people who felt the allure of the get rich quick scheme. Its always been true that if they just spent the same effort on doing things properly they would probably make it but instead they bounce from one stupid scheme to the next.
Often its combined with some ideology about how the normal world is full of suckers and they are going to escape by not playing the game. Fraudsters love to target people who want to pull one over on the world. They are easy to manipulate so they usually fall for it when presented with an opportunity too good to be true.
The article, with a couple details about the specific examples changed could have probably been written in victorian times.
The author apparently never read Tim Ferriss’ The 4 hour work week which not only whiteboarded some of the described schemes 20 years ago, but also had an illustration of a hammock suspended between two palm trees on the cover.
That was the dream: Set up a system, live on a beach.
While that isn’t always true, honesty is a great defense against being enlisted in scams that promise easy money.
I like the sound of a "rent seeking social parasite" trap.
As the Mikado says in the eponymous Gilbert & Sullivan opera:
"something humorous, but lingering, with either boiling oil or melted lead."
That was before I became old enough (as I am now) to live off my superannuation and pension, which is also "passive income" but joy of joys, not a side gig. I'm not in denial about where my pension income comes from. It's other people's labour. That's what I'm invested in.
How would you approach someone to help them out of it? Don't think I can just throw them this article and say "you're wrong".
Quite the opposite for me. I'd like to have freedom to work on things I want to work on without "paying rent", "paying medical bills", or "short term profitability" being a constraint.
I suspect this is largely sampling bias.
I host meetups for indie founders, and several attendees earn their living through solo businesses. When I go to conferences like Microconf, I meet lots more.
The problem with measuring financial success by who posts about it on HN is:
* The more someone is making at their solo business, the less they want to blab about it and attract competitors.
* The people earning at the low end are more desperate for people to see what they're doing so they can pick up new customers, so they're more likely to talk about their work.
* The more successful founders are busier and spend less time posting on HN.
It was enormously influential and was likely involved in every one of these failed entrepreneur's ventures
This discussion reads like 'staying inside from 2019-2022 changed social structures' without saying COVID once
One thing the author does NOT see, however, is that the local folks doing all the hard work like mowing lawns, building furniture, etc. are in absolute panic over "AI" because their niche little lawn mowing/car washing/house cleaning business has been determined to be irrelevant by ChatGPT, etc. Oh and before you ask, there are folks claiming they can solve that exact thing, and those hard working folks are buying those products, hoping it will solve their downtrend in internet leads.
> What actually makes money hasn't changed. You find something people need. You get good at providing it. You charge a fair price and you keep showing up even when it's tedious and even when you don't want to. You build relationships over years. You build reputation over years.
You can make money doing this, yes--but most people who are really rich don't. There are lots of ways to game the system that don't involve the kinds of wacky things the article talks about.
dividends and treasury bonds give passive earnings, you need capital. the "passive income" savants did not and do not have capital.
case in point: it should not be noteworthy that the author's friend was "$800 in the hole", it should be such a rounding error that it couldn't be any of Joan's concern. And honestly, it probably isn't and Joan put an obsessive amount of weight into an off-comment.
$800,000 in treasuries, on the other hand, now you have passive income - only ~$37,000/yr - but enough to live like a royalty in South East Asia for the next 30 years, passively, followed by getting all $800,000 back.
Class inequality aside, throwing darts at the wall and seeing what sticks isn't a bad business strategy, and you really don't need to be passionate about any particular business idea to collect income.
I hope Joan's friends found something that worked from them. For me its just stay employed so I can accumulate capital for the side projects. Sometimes side projects become bigger than the employment, but my businesses are just expeditions, not forever projects.
I've never watched dropshipping influencers but I did sell some of my own electronics on eBay and noticed some opportunities in the process. Sometimes I put up identical listings as someone else's at a wildly inflated price, and people would buy from me because it seemed more serious. I would buy from the cheaper ad and put my own buyer's address in the shipping destination. Never seeing the product. Not scalable as I think its against the one of the terms, but you can do it between marketplaces too.
What some devs usually fall for ( not by watching some youtube video, but by falling into the idea organically on their own as a kind of emergent behaviour ) is doing the minimal effort of a saas, like a template of the necessary part without adding the actual value.
The way this most often presents itself is a payment proxy, think about the minimal requirements for any software service, it charges money, so that's where they start, a stripe account, maybe an LLC, payment links or payment tables, they can now charge money. Then they make a frontend, a website, of any kind, this comes first, not to serve some kind of need, a landing page, and the actual product is a landing page as well, use react as well because that's the thing you do.
Finally, what is computing, it has something to do with data, so let users upload some images or videos, then you let them charge users for it. Bam, you have now reached the same app SaaS that millions of indie devs developed, like a patreon thing, an OnlyFans if you allow that shit, a gumroad. A host that allows uploaders to charge money.
If you don't even want to go through the hassle of hosting the images or content, you can just let the users upload a link, and charge for that
Must be thousands of these Linktree, campsite, taplink, patreon, cafecito, matecito, tecito.
The dropshipping thing is similar to this but it has a physical component, the idea of a business is just the minimal core, a caricature conception of what a business is, you buy a thing, and you sell it for more.
Were these the people who were really going to do anything substantive anyway? Or just the shortcut-taking types?
I started a business like this, but it wasn't passive. I shipped everything to my office before inspecting and shipping product out.
It lasted almost 10 years with 1 million annual revenue.
It was not passive.
Passive income is from rental properties, mutual funds and (my dream) a rich uncle's trust fund.
I just upped my retirement contribution and decided that the big evil BigCos can do all the value creating and the finance middle men can have their take.
I guess that's the reason everyone does the slumlord or VRBO thing.
I knew a few guys like that in crypto too, before crypto came along and they got into that, this guy told me he’d written a twitter app, it was a bot that pumped gold at some influencers command. Spurred me to write an app though.
Ah, the story of a generation
I do disagree that all sub$100 blenders are the same, though. But still! The main reason restaurants use Vitamix blenders is that they are so much safer when blending burning hot stuff, like soups. When you turn off a normal blender, you’re fairly likely to create an air bubble that pops a little later, sending drops of very hot liquid into the face/eyes of the operator. A Vitamix, if you turn it off correctly, does not create the bubble. This is irrelevant for most home users, including me. So I don’t have one.
They'll keep existing as long as the root cause that creates them (massive wealth inequality in general and the growing delta between productivity and wages) exists, so probably until our financial systems fully collapse in about 2032.
I personally made it happen by working a FAANG SWE job for 13 years, not getting sidetracked by the startup cult, saving and investing 70% of my after tax income, etc. And no I didn't get into crypto, but I still managed to make it with conventional investments.
In fact, I chose to pursue a career in the tech industry in order to pursue financial independence in the first place. Because I knew back then (circa 2005) all the tech Kool aid was BS. That "don't be evil" was just a facade. And time has proven me right and my haters wrong, those who thought it was unethical for me to place wealth building ahead of career building.
It's been four years since I've been out of a job. Now I'm creating more passion oriented content. I'm never bored.
We remember the success stories, we don't remember the bankruptcies.
is someone making money on a side gig really a solopreneur? By definition a side gig is not something you expect to make significant amounts of money on. if a side gig starts generating significant amounts of money then you would probably make it your primary gig.
Part of that was accurately diagnosed by the article in the bit about the dog walking business vs dog walking platform.
My partner bootstrapped a successful full-time cleaning business that she ran for a few years and the limiting factor was basically her ability to hire and retain good employees. A physical cleaning business has no path to scale like a tech company though.
Some people just lack the capacity for this sort of thing, and unfortunately fraudsters target them by trying to convince them otherwise.
I remember saying, "sounds like scamway or something" and he actually had to say that it was in fact amway he was talking about. uncomfortable.
didn't go much further than that.
Looking backwards I realized how little friction we had getting to know these people, etc... sigh.
This is why I still do random sampling of Reddit, Twitter, Threads, and a few other social media sites: It’s a good way to keep up with some of the discussion trends that start spreading in online discussions.
I can pick up quickly when someone is parroting the latest info memes from Reddit or Twitter now. It’s very helpful for identifying who isn’t really thinking for themselves and will latch on to the first opinion they see on a topic.
I can’t bring myself to watch TikTok or other video shorts, though.
No indy hedgefund algotrader gives away their golden goose, that would crowed out the trade.
Then he delegated more and more responsibilities, allowing them to make decisions for anything up to a certain dollar amount, then kept raising the dollar amount.
This ended in him checking email a few times a week totaling about 4 hours altogether.
The cost of starting a new business has returned to the historical baseline.
I told him that I don't really build websites, and what I mostly do is write things that move information from one computer to another and that I haven't really enjoyed web development so it's not something that I do in my free time so I'm not good at it, and he should check out SquareSpace or Wix something.
He kept assuring me that it would "be easy". To shut him up, I gave him a quote of my daily rate for contract work (which honestly wasn't even that high by software engineering standards), and he backed off because he didn't realize how expensive software engineering is.
It's enough to pay for itself easily and pay for a vacation or two a year, for about 4 hours of work a week. If we really put effort in, it could replace our day jobs.
Where most people go wrong is their expectation. We expected this to fund a vacation and maybe car payments. That it's doing that is exactly right and we don't want to take it any further. If people had that view, instead of feeling like they have to make a billion dollars, I think side gigs would be a different beast entirely.
Hard disagree.
As the article notes, I think if you concentrate on a real business, not a scam-y 'get rich quick scheme' business then, especially with the internet, its never been easier to run a solo business at scale.
For myself, I wrote an app as a side hobby, which then took off, so I started working on it part-time, then moved to full-time when the revenue justified.
It's now growing to where it exceeds what I would have made working for someone else.
Note this took 7+ years of constant work, improvements and care.
It's the type of dedication that makes you competitive with even larger organisations.
And the time required to be a 'success' ensures that you won't have any competitors who just want to make a quick buck or get to "passive income" within a year or two.
"Passive income brain" people are not the only one's trying to "build revenue engines," that same sort of talk exists in corporate America. There are already people that that own companies which are there "to generate passive income for me," right now--there's a whole class of millionaires and billionaires that don't have to work. Passive income people didn't ruin the "content quality of the entire internet" and are far from the only ones doing so. Many of these folks are likely the ones that would have owned a hardware store if America didn't ignore it's regulatory duties while preaching about how "important" small business is.
In the U.S. situation really seems to have fossilized into a few big players/platforms, and they continue to freeze up through the process of things like private equity roll-ups. There's a thread on the front page right now about Amazon's alleged price-fixing tactics, which hurt customers and small businesses. Further: Real-estate is an investment, so for most being able to pay commercial rents is a pipe dream. Healthcare is tied to employment, so people are less free to try and start something other than "on the side."
American's choose "convenience" when shopping and to put people in power that serve these large companies or their owners, not small businesses or communities. Dropshipping, creating a "sweaty startup," etc... it's all just people trying to make do within the system they're trapped in.
The dog walking business example was also appropriate in my mind. My spouse fortunately broke even, minus time, on her attempt with drop shipping garbage nobody really needs. Now she makes decent money with her oil paintings. Not "passive income" but real money and profit. Not enough to retire (that's what I am for!) but actual money nonetheless.
If you look at the world of indie tabletop RPGs, for example: Kevin Crawford of Sine Nomine Press makes a very good living and a significant percentage of it is "passive" sales of his back catalog. But if he stopped publishing and promoting new game projects, sales of that back catalog would very likely shrivel to nothing within a calendar year.
The open-secret ingredient is always more work.
It's why someone like Crawford can afford to tell everyone exactly how he does what he does... Giving away extensive production files that show you his whole creative process, soup to nuts: 99% of people aren't going to put in the work necessary to sustain the passive portion of an individual income.
Isn't this also sampling bias?
Exactly! And this is why every time I see someone selling a course while bragging about making a lot of money, I know for sure they are _not_ making money.
- Every client of mine during my contracting days. It took me way too long to reply with, "Oh that's great news! I wasn't sure of my availability, and was certain I was going to be way too expensive. Glad you got it figured out."
And one day on campus I see him drive up in a Mercedes. And I ask him what’s going on.
Well, he tells me that he learned a little bit about cryptocurrency, and now he had gone into business where he advises people on how to invest in cryptocurrency. And I thought, “That’s really wise!” and I hope he is still doing well!
Basically a great way to stay above the hype and scams. Surely some sort of federal regulations would begin to apply... but good luck!
I would say really successful companies at least go through a stage of Building Something People Want. Even if they stray from that as they become more successful.
Twelve year olds?
that might well be the first time I've seen "career" and "ethical" conflated in that way. I've definitely seen the people who think you're a fool and possibly a sucker if you chase short term wealth over career stability, and there's definitely a veneer of unethicalness clinging to the notion of get-rich-quick, but I cannot understand how "establish yourself in a career" is an ethical concern.
8<------------
Free to do what? Sit on a beach, apparently. Every single one of these people wanted to sit on a beach. I've never understood this. Have they been to a beach? There's sand. It gets everywhere. You can sit there for maybe three hours before you want to do literally anything else.
8<------------
I laughed out loud when I read it, because it's so true.
How does what ChatGPT thinks about lawnmowing matter? Like, specifically, who's going to be mowing the lawns if it's not the people who are currently doing it?
Years before your spouse enrolled in that Amazon course, people were spending tens of thousands of dollars on Trump University. Many years before that I had a friend that got sucked into the Equinox International MLM scam. Point being those types of promises of easy money after paying for a course, or outright scams, are not something new or unique.
when you look at the real business model of those who have had success they are still selling the soap in retirement. It is not going to get you rich, but it isn't too bad a life.
well it was - the only people I know in amway are in their 80s and so it may be different.
amway deserves the hate. Truth is it isn't as easy as they tell you.
Yeah there's a fair amount of that here too.
Thinking about it on a meta level I think on the "low end" it's basically just a hack around how expensive employees are when you consider exposure. Sure you could have your $15/hr guys stay late and power wash your box trucks, deep clean your facility, etc, but some guy with a van will come in and do it on the weekend for a flat fee and if he falls off the ladder that's not your problem.
And on the high end it's a hack around overhead. You can have some guy show up on a jobsite, set up a tent to keep predatory eyes off and weld up the broken thing on your backhoe or the rental company calls that guy and repairs it on your job site without telling you giving you deniability. No expensive compliance costs of adding hot work to your job site or running a shop where that stuff happens regularly.
>if I am happy I would rather not know.
Always better to be able to say you don't know rather than "I asked and the answer seemed fishy but I didn't probe".
I responded that he was the one who had reached out to me, and if he feels like his son can do it then he shouldn't have wasted his time trying to find a contractor since that will be more expensive.
The client didn't like the attitude and I didn't get the job, but I was kind of glad because it was pretty clear to me that he would have tried to weasel out of paying me regardless.
It has long been easy for anyone to buy health insurance without an employer in the US. If you are self employed, you can even pay for it with pre tax income.
The problem is it costs $500 to $2,500 per month per person plus $10,000 out of pocket maximum per year, which means you need a high income to be able to afford it.
Just because you took 7+ years to develop a business does not mean that all businesses require that or that it is the only way.
25x expenses in s&p 500 works ok. (Adjust the multiplier for your level of pessimism) Funding it isn't easy, but save a good amount of your income for a few decades and control your expenses and you can get there.
Once, when fed up with this during a discussion on a small moonlighting job I said "Yeah, kids are pretty good with this stuff these days, Tell you what - have him get started and I'll be available to give him any help he needs at 2x my rate".
At the same time, you guys really can't imagine relaxing on a beach for more than a few hours? Like i'm not really a beach person but back when i lived near the ocean i spent the odd saturday just unwinding on the beach with a book. Certainly wouldn't want that every day, but y'all acting like it would be impossible to enjoy say abeach vacation for a few days seems crazy to me.
Living near the beach is nice.
You can sit on it, walk on it, swim on it, surf on it, run on it, fish on it.
Better than a cement sidewalk, IMO.
I had coffee last year with a guy - I won't use his real name - who told me he was "building a business." I asked what it did. Dropshipping jade face rollers.
I made him say it twice.
Jade face rollers.
He'd found them on Alibaba for $1.20 each, and started selling them through Shopify for $29.99. Never used one himself. Didn't really know what they were for - something about lymphatic drainage? Reducing puffiness? He said "lymphatic" the way you say a word you've only ever read and never heard out loud.
Some guy on YouTube said jade rollers were "trending," the margins looked insane on paper, so he'd "built" a website with stock photos of a dewy-skinned woman rolling a green rock across her cheekbone and started running Facebook ads at $50 a day. Customers would email asking where their stuff was - shipping from Guangzhou, three to six weeks, sometimes way longer - and he'd copy-paste a response he found on a dropshipping subreddit. He had a Google Doc full of pre-written customer service replies.
Never talked to a single customer.
I swear to god.
Five months in, he was $800 in the hole.
He told me all this like he'd invented the wheel.
I bought him another coffee. I genuinely had no idea what else to do.
Jade Roller Guy has become my go-to example of something that went drastically, terribly wrong with how a whole generation of would-be entrepreneurs thought about work and money. A specific ideology - I've been calling it Passive Income Brain - grabbed a huge chunk of the people who were, by temperament and ability, most likely to start real businesses, and it gave them a completely fucked set of priorities.
Somewhere between 2015 and 2022, "passive income" stopped being a boring financial planning term and became, I don't know how else to put this, a salvation narrative. I mean that literally. There was an eschatology if you want to get nerdy about it. The Rapture was the day your "passive income" exceeded your monthly expenses and you could quit your job forever. People talked about it with that exact energy.
But, of course, the folks making any actual income, of any kind, were the ones selling courses about making passive income. It was an ouroboros. It was an ouroboros that had incorporated in Delaware and was running Facebook ads.
The pitch went something like: you, a sucker, currently trade your time for money. This is what employees do, and employees are suckers. (I'm paraphrasing, but not by much.) Smart people build SYSTEMS. A system is anything that generates revenue without your ongoing involvement. Write an ebook. Build a dropshipping store. Create an online course. Set up affiliate websites.
The specific vehicle doesn't matter because the important thing isn't what you build, it's the structure. You want a machine that generates cash while you sleep, and once you have that machine, you are free.
Free to do what? Sit on a beach, apparently. Every single one of these people wanted to sit on a beach. I've never understood this. Have they been to a beach? There's sand. It gets everywhere. You can sit there for maybe three hours before you want to do literally anything else.

But I digress.
The allure is real. Who doesn't want money that shows up while you sleep?
I'd fucking love that. I'd love it very much indeed. But "passive income" as an organizing philosophy for your entire business life, for how you think about work, is almost perfectly designed to produce garbage.
When you make "passivity" the thing you're optimizing for, you stop caring about anything a customer might actually want. Caring is active. Caring takes time. Caring is work.
Giving a shit is, by definition, not passive.
Between 2019 and 2021, roughly 700,000 new Shopify stores opened. The platform went from about a million merchants to 1.7 million in two years. About 90% of those stores failed within their first year. Which is really more a meat grinder, than it is a business model...
We started drowning in a million businesses nobody was actually running. Dropshipping stores with six-week shipping times and customer service that was just copy-pasted templates. Guys who'd put their "brand name" - usually something like ZENITHPRO or AXELVIBE, always in all caps, always vaguely aggressive - on a garlic press identical to four hundred other garlic presses on the same Amazon page. AXELVIBE! For a garlic press!
And the affiliate blogs! Hundreds of thousands of them, pumped full of SEO-optimized reviews of products the authors had never touched, never even seen in person. A fractal of bullshit that technically qualifies as commerce but puts zero dollars of actual value into the world.
Leverage is real; I'm not disputing that. There is a difference between trading hours for dollars and building something that scales. Software does this. Publishing does this. You write a book once, sell it many times, nobody calls that a scam. Fine! That part they got right!
Where it went wrong is that the whole movement confused "build a good product that scales" with "build any mechanism that extracts money without you being involved." I don't think that confusion was accidental. I think the confusion was the point. Because if you're teaching people to build real businesses, you have to sit with hard, boring questions about whether anyone actually wants what you're selling. But if you're teaching people to build "passive income streams" you can skip all of that and go straight to the fun tactical shit. How to run Facebook ads, how to set up a Shopify store in a weekend, how to write email sequences that manipulate people into buying things they don't need.
Nobody talks enough about what the passive income movement did to the content quality of the entire internet. If you've tried to google "best [anything]" in the last five years and gotten a wall of nearly identical listicles, all with the same structure ("We tested 47 blenders so you don't have to!"), all making the same recommendations, all linking to the same Amazon products, you've experienced the results.
Those articles weren't written by people who cared whether you bought a good blender. They were written by people who cared whether you clicked their affiliate link, because that's what generated passive income, and the incentives made honesty actively counterproductive.
The honest review of blenders is: "most blenders are fine, just get whatever's on sale, the differences below $100 are basically meaningless." That review generates zero affiliate revenue. So nobody wrote it.
Instead you got "The Vitamix A3500 is our #1 pick!" with a nice affiliate link, written by someone who has never blended anything in their life. Multiply this across every product category and you start to understand the informational desert we've been living in. We broke Google results, at least partly, because an army of passive income seekers had an incentive to flood the internet with plausible-sounding garbage.
(Someone is going to object that Google should have filtered this stuff out, and yes, sure, but also, "the people creating the pollution aren't at fault because the EPA should have caught it" has never been a great argument.)
I've met dozens of smart, capable people who had actual energy, and who spent their entire twenties bouncing between passive income schemes instead of building real skills // real businesses // real careers. The pattern was always the same: six months on a dropshipping store, it fails, pivot to Amazon FBA, that fails, pivot to creating a course about dropshipping (because of course), and then the course doesn't sell either because by 2021 there were approximately forty thousand courses about dropshipping and the market had been saturated since before they started.
And the whole time they were getting further and further from the thing that actually creates economic value, which is: find a real problem, solve it for real people, care enough to stick around and keep improving. The boring thing. The thing that takes years. The thing that is, to be absolutely clear about this, not passive.
I once saw a guy ask whether he should start a dog walking business and the top response was something like "dog walking isn't scalable, you should build a dog walking platform instead." This person liked dogs! He liked walking! He lived in a neighborhood full of busy professionals with dogs!
But the Passive Income Brain thing had gotten so deep into how people talked about business online that "do the simple obvious thing that works for you" was considered naive, and "build a technology platform for an activity you've never actually done as a business" was considered smart.
The dog walking guy could have been profitable in a week.
The app guy would have burned through his savings in six months and ended up with a landing page and no users.
By 2020 the passive income world was absolutely crawling with grift: guys posing with rented Lamborghinis in YouTube thumbnails, "digital nomads" whose actual income came entirely from selling the dream of being a digital nomad to other aspiring digital nomads, podcast hosts interviewing each other in an endless circle of mutual promotion where everyone claimed to make $30K/month and nobody could explain what they actually produced. By 2021 or so it started to look like a distributed, socially acceptable MLM. The product was the dream of not working. The customers were people desperate enough to pay for it.
Not everyone in this world was cynical. I genuinely believe that. A lot of the people selling passive income content believed their own pitch. They'd had some real success with a niche site - pulled $3,000/month for a while, it does happen - read the same books everyone else read, figured okay, I'll teach other people my system. Why not. I would have done the same thing at 24. I'm almost sure of it.
But zoom out and what you had was just an enormous machine converting human ambition into noise. Affiliate spam // dropshipped junk // ebooks about passive income // courses about courses. An entire layer of the internet that was nothing but confident-sounding bullshit produced by people who had optimized for everything except making something worth buying.
The people near the top made money. Everyone else spent months or years chasing a mirage and came out with nothing but a Shopify subscription they forgot to cancel. They thought they'd failed. They hadn't failed. The system, every system, failed them.
What actually makes money hasn't changed. You find something people need. You get good at providing it. You charge a fair price and you keep showing up even when it's tedious and even when you don't want to. You build relationships over years. You build reputation over years. None of it is passive, and none of it has ever been passive! All of it revolves around giving a shit, day after day, about something specific. I don't think anyone has ever found a way around that and I don't think anyone will.
The passive income thing was a fantasy about not having to give a shit.
This is a terrible foundation for pretty much anything.
The affiliate SEO blogs are being slaughtered right now by AI-generated content. The people who spent years producing algorithmically optimized content of no value to humans are getting outcompeted by software that does the exact same thing, faster and cheaper. Facebook ad costs went through the roof and took the dropshipping gold rush with them. The biggest passive income gurus have already pivoted to selling AI courses. The machine keeps running. It just swaps out the brochure.
But I've noticed more people talking about what I'd call "give a shit" businesses - people who make furniture, run plumbing companies, write software they actually use themselves. Stuff where the answer to "why does your business exist?" isn't "to generate passive income for me." This works a lot better than the laptop-on-the-beach grind.
Jade Roller Guy, if you're out there: I hope you found something real.
I hope it keeps you busy.
Westenberg is designed, built and funded by my solo-powered agency, Studio Self. Reach out and work with me:
You can be comfortable on not very much money with realistic expectations while not working yourself to the bone was kind of my point.
But, public hospitals with low or no cost care exist in some of these places, and from my observation, I do currently think it's a contributing factor to why small businesses are more likely to exist. But, it's only one knob to turn.
Much cheaper too, ridiculously enough.
EDIT: I'm also kind of writing in the context of having your own little economic engine that you own and control, and can be continually running, rather than owning a tiny piece of the abstracted aggregation of an entire economy's engines. That said, dead-simple, low-fee, market-indexed funds are a generally good place to put the surplus fruits of your own little economic engine.
The problem is how long and what you have to do to get that 3-5 million number. No one who is drawn to the “passive income” hustle is thinking “work a normal job for 30 years, live under my means, and invest everything I can”. They want to get much more immediate results so they can enjoy life on easy street because grinding it out for so long sounds extremely depressing.
What you describe is a retirement plan, not a passive income lifestyle. Kinda the opposite of escaping.
(also I could happily relax anywhere for a few hours, but ideally not on a beach because that's uncomfortable)
House maintenance costs in sea air cost at least double. Appliances and aircon rusts and corrodes. Everything needs regular painting.
Cars rust out. I buy second hand shitters and replace them every ~5 years. Certainly not worthwhile owning anything collectable or precious.
If you want a garden, be prepared to spend twice the time and money and, perhaps plants and trees still struggle or die.
I live in New Brighton in Christchurch, mostly because it is cheap housing (for no reason I can understand). Plus the coastal wind from the sea avoids hayfever (town is irritating for me).
It has a good community. Many people that choose a beach vibe are relaxed and friendly.
In fairness though, given inflation is the average, housing costs outpacing means something else underpaced.
“Hear are the things that led me to bankruptcy, and here are the things I did to climb out of it and become financially stable again.”