Why Building a Fortune is better than Building Passive Income

I used to believe that building passive income was the absolute best way to achieve financial independence.  This idea of having passive income was so attractive to me earlier on; I told myself that I’d never work on any project that doesn’t pay me for the rest of my life.   And that has been the path I’ve taken for the last three years.

A lot of time was spent on building passive income, some of our projects succeeded, many of the them failed.  Although at this point I still have some stuff I worked on the past that continues to pay me until this day, but had I do it all over again, I would not have focused on passive income.  

If someone is to build an empire of Adsense Sites, or long-term ppc campaigns and or start purchasing lots of rental property for instance (what I’ve tried to do) then you will end up with your monthly residual income.  And you will be financially free, able to retire after a few years of building your nest egg of passive investments.   

After joining the affiliate industry, which is for lack of better words, crazy, I’ve begin to think differently.  It is not uncommon for someone to be able to generate a large amount of profit in a relatively short period of time and although what they have produced isn’t life-time residuals, they will come out ahead within a short period of time.  

So much so, that the capital they were able to raise in 3-5 months, was now enough to invest in other projects. So I started seeing things a little differently, if you are able to generate $100,000 to $1,000,000 within a short time, you could then easily invest in passive income sources easier anyways.  And you’d be moving a lot faster than if you tried to build passive income from the get-co.  Because you’d now have capital to move even faster.  

Which is better, $20,000/month net passive income? Or $1,000,000 in your bank account?

Besides. Who needs passive income if you have $50,000,000 in your bank account? You don’t need passive income at all, you’d have a fortune at that point.  And I bet building the fortune was funner than trying to build a bunch of small little projects and slightly increasing your monthly net income over the course of a few years.  

Again, passive income is still awesome and is one way to be financially free,  Although any more, we don’t have time to waste.  We’re not here to build a small amount of monthly income, we want to do big projects with high-impact and build a fortune and a large amount of prosperity.  

I have been able to free myself from focusing solely on passive income projects now, and now we focus on building a fortune.  I’d rather sell a company for $50 million than trying to build sites every-day, or buying 100 houses and renting them out.  It is personally more exciting for me, and passive income is a sure-fire bet, but is is slow, and not that exciting.  

Just keep this in mind.  Building passive income is extremely slow, although building a fortune can be done quicker than you might ever imagined… think about it. 

Passive Income, or a YouTube… a fortune (thats the difference…)

  • $20K/month or $1M in bank?
    Neither realistically gonna work
    Now if you add another 0 to either of those….

  • Very interesting assessment, Wes. You’re overall message is spot on, but you may be missing the importance of passive income in terms of wealth creation. Passive income means you are no longer trading your time for money, but are profiting continually from capital you created/own. Enough passive income really does equate to a “fortune”. Your passive income generators are capital that you can sell to someone else at some point and amass that fortune you’re looking for.

    Not that I don’t see the higher value of generating large amounts of cash in short periods of time. I would look at it this way. Having enough passive income frees you to invest your time/money/resources in ventures that could lead to huge payoffs in short periods of time.

    So for budding entrepreneurs, focusing on passive income generation up front could lead to freedom to work on huge projects (i.e. YouTube) that could get you th billions in your account fast.

    Just my thoughts on the matter. And this better not mean you guys are thinking about dumping Prosper202/Tracking202 for that “fortune” anytime soon! I’m getting way too used to the stellar support and work you all are putting into those projects :).

  • Interesting read, but what if you can produce 100k/month through passive income versus $1 million in the bank. Different ballgame.

  • You said it perfectly Wes, if a fortune can be made in a short time you might as well take the money and run, once you have money a whole bunch of opportunities open up in life, a lot that you would not have access to if you didn’t acquire that money.

  • Wes, I really enjoy these types of posts…thanks for sharing your thoughts on such a personal topic…
    I think that passive income is a must…if you can get to a spot where you have built your passive income to $10,000…you are basically free to do what ever you want…you can focus on trying to swing for the fences and get that big hit…singles first, then the home runs…UNLESS…you know of something that is almost guaranteed to make you $1,000,000 in a year…its a mindset thing…if you think big you’ll get big…so maybe for you…aiming high will work out…just remember to keep a safety net…

  • Sup Wes, Awesome post dude! Hey, We did see each other at AdTech:NY at the Exibit Hall but I didn’t see you at any of the partys. I’ll def be going to ASW see you there!

  • @Jay, right on man! I like your thinking

    @Xavier, thanks for the kind comments! I’d agree with you, we are going to focus on the passive income route still but no longer held to the belief that it is the absolute best way to go. no we definitely are in it for the long-run!

    @millionaire, agreed

    @Greg, Al and Banner, thanks guys!