Hi, this is Rob cabin here. So in this video, we're going to be talking about how to make money. Money is kind of the ultimate paradox when it comes to entrepreneurship. Your business will either succeed or fail depending on the money it makes. And we tend to quantify our success in business by the bottom line, whether the profits are going up or not. However, it's not why we do this, we didn't decide to become entrepreneurs because we wanted to make more money.

We're doing it for the freedom and the happiness, and especially the new class of laptop entrepreneurs. Freedom and the ability to create your own reality are more of an incentive. So rather than concentrating on what makes money, it's much better to concentrate on what you love doing. building a business is hard work, but it's 10 times easier if you work. on something that you love. But of course, you have to make sure doing what you love makes money.

So let's take me as an example, Rob Carlin, I used to hate my job. I used to be a freelance typesetter doing company reports now who wouldn't hate that. But I started a website, a design blog. And I quickly pivoted to talk about the business of design, which I love doing, because I love telling other designers how to get clients from home, make more money, and turn their skills into a business. So I was naturally inclined to want other people who hated their jobs to discover the same freedom that I found. So I was able to align my business with a passion, and that's what you've got to do sooner or later.

And you can see the journey from doing boring jobs to starting a website blogging, which I'm going to talk about later in other videos. Having a web and graphic design business, which was active income, but then writing books and creating video courses and doing other things which created passive income, which now means I have a six figure business. Now there are two ways of making money with your business actively or passively. active income is when you trade hours for dollars. So you could be doing accounting, designing or consulting, anything like that. But what you are paid depends on how much work you can do.

Passive income, on the other hand, is when you sell an asset such as software, a digital training course productize service, any sort of product, whether you sell 10 units a day, or 100 units a day, it doesn't matter to you, but the profit goes up, so it's more scalable. This is passive income. Now before you conclude the passive income is better than actually income, I would urge caution, passive income takes a while to get going. Whereas active income is easier when you're starting out. So look at these three charts here from three bloggers. Now, I would advise you, of course, to listen to entrepreneurial podcasts and read entrepreneur blogs, because they're very interesting, especially when they share their incomes.

Of course, you need to avoid the scammy, internet marketers, and the products that cost a lot of money. But I believe these are three examples of transparent and honest business people. Of course, I'm one of them. So I might be a bit biased in that. But of course, Pat Flynn, Smart Passive Income calm is a great blog and as you can see, his passive income has risen quite consistently over the years. Steve Scott is another brilliant poker that I've followed for many years.

He's been making money doing lots of different things. But he is known more recently for his Kindle books, which really started to take off in 2014. And at the bottom there is my passive income. I was making nothing less than $1,000 a month for a long time. But I kept on recording it and publishing it on my blog at Rob cabin comm slash income hyphen reports. And there you can see that more recently, I'm earning over $7,000 a month passive income prophets, but it takes time.

So the best way to start making money from home is to offer some sort of service. This service is likely to be aligned with your interests and talents. And it may be whatever you're doing in employment. I know it's difficult because you're thinking that what you're doing employment isn't your passion, but look to me and other of the case studies. we pivoted what was a fairly boring service into something that we are passionate about. And of course, it won't be true for everybody.

But this is my strategy to free yourself and start a successful business. Work in your spare time to provide a well paid service for clients develop and maintain a website. And I'm going to be showing you in other videos how to do that. Constantly add useful information to this website, which will attract more clients and grow your authority. Number four, very important, but I'll be telling you later on in the course why it's so important, and I'll be showing you how you can do it. But you must collect email addresses from your website as soon as possible.

When your income from your side gig reaches a respectable level and you have six to 12 months of savings in your back pocket. You can leave your job then Now if this is up to you entirely, you can do this before or after, but everyone will have their own level of risk that they are happy with, but continue to grow your active income through your client work. When you have enough money, you can outsource and hire so you can take on more work. At the same time, add passive income streams to your business without getting distracted. But that's wrapped up with the two main takeaways from this video. Remember, active income is easier than passive income at first, and only leave work when you have alternative sources of income and money saved up to cover your living expenses for a substantial amount of time.

But what are you going to do to make money? Right, well, we're going to talk about that in the next video. My name is Rob coven. I'll see you there.