Home How To Make Passive Income vs. Leveraged Income (With Dan Lok)

How To Make Passive Income vs. Leveraged Income (With Dan Lok)


How's it going today, guys? Welcome back to the channel So, I'm here once again with Dan Lok

If you guys missed the earlier videos we did, we did a video talking about Dan's story, and I'm gonna link that up in the description below It's a really good video that you guys should check out But what I want to talk about in this video here is passive income It's a very seductive topic, I think Before we do that, I wanna do a poll with you guys

We're gonna have something pop up in the corner there Are you earning passive income? It's a yes, no I'm just curious how many people are actually earning it at this point in time, because it's like, everyone's interested in it And I think there's a truth behind passive income that a lot of people don't see, and I'd love to hear what you think about that – I think first, when I first thought about the concept of passive income, it was from like different financial books, right? And they talk about, oh, you want to have money work for you, have enough passive income coming in, so you could sit in a beach and do nothing

– Sip drinks all day – Sip drinks all day, and that's actually what I was chasing for I thought I'll make enough money I could not have to do anything, I would retire That's where the younger Dan Lok believed in Now I'm living more, little bit older, little bit more mature


I have a very different take on passive income I think it's actually a little bit of a myth, and I'll explain why Because at the time, I built all these internet businesses Like an example, like an ebook, right? Selling on ClickBank I was always running it on Google Ad Boards

And I was making like massive passive income Every month, (mumbles) do anything, just money comes in ClickBang sends me a check That's all good – True

– Here's what I've learned, just because it's passive, doesn't mean it's permanent So, just because something is passive today, doesn't mean it's passive tomorrow So, your whole dream of, like say it and forget it – And 20 years later it's still sending you check – In 20 years, it's still sending you money

That doesn't work Okay, that's what I've learned, one thing I've learned The second thing is that the whole idea of passive income is very seductive, but it gives, it sets the wrong expectation Because the word passive, if you think about it, it implies something for nothing – Sure

– It implies, how can I do the minimum amount of work to get the maximum result and benefit? If you think about the word passive, think about any other areas of your life Imagine you want to have passive health, right? (laughter) You know, I want to have passive health I'm not, I'm gonna do minimum I'm not gonna work out I'm not gonna watch my diet

I'm gonna eat whatever the hell I want, right? You're not gonna be very healthy Imagine you go back to your wife and say, you know what, honey? From now, I just want to have a passive relationship I'm just gonna have some passive sex You're gonna do all the work, I'm not gonna do anything (laughter) How long will the relationship last? – Right

– Not very long Business is the same thing Business requires a tremendous amount of focus, tenacity, and effort So, instead of thinking about how can I do the least, instead, a much healthier way to look at it is I believe it's leveraging them So, you're leveraging people, system, technology to go to that next level, good

Looking for leverage, that's working smart That's great But you're not looking to, to get to place where, I don't think it's healthy where, cause that's where I was I was working very, very hard building something that I actually don't care about I'm selling stuff on ClickBank, all that

I don't care about those products – And that wasn't passion driven – It wasn't passion I don't, the customer is just like a digital credit card I don't know who that person is

So, I do all of that, so that I could get to a place, so I can escape from that, if that makes sense – Yeah, you're trying to get away from it The business you're creating – So, I'm building something I want to get away from – Right

– That doesn't make sense So, it's like I'm building a house, so I could leave the house – Run away from it Never look at it again – You run away from it

Instead of, why don't I build something that I love, that I enjoy, that I want to be in it Why not serve people that I want to serve Hang out with people I want to hang out with I think that's what life is about, right? But I didn't know, I wasn't, I wasn't mature enough to know that So, you look at the passive income

I want you to think about the top, let's say, the Forbes 500 You look at some of the most successful people in the world, financially successful Watch their interviews on YouTube Watch their interactions You notice, they don't use the word passive income

You don't see Steve Jobs saying, hey, I wanna make some passive income You don't see Warren Buffet saying I want to make some passive income You don't see Elon Musk saying I wanna make some passive income It's not in their vocabulary It is not in their, think about it

If it is so good, why do the most successful people in the world don't use that? And all of them have made enough money to retire All of them They could stop working, they would not be able to spend the money they made – Yeah, I mean I don't think that Jeff Bezos has to go to work tomorrow for the money, you know – But why do they work? And chances are, they actually working harder than ever

Because their not working for money anymore, their working for purpose, the mission, whatever drives them Same thing with me I made my first million at the age of 27 Multimillion by the age of 30 I could've retired long time ago

– Sure – But what drives me is not that anymore I have retired Retire Think about it, why do people want to retire? What do they want to do? – I think usually it's, retirement, the idea of wanting to retire is having control of your time

– Yes, so you can do whatever the hell you want – You can do whatever you want on your own terms – Right – Live on your own terms – So you wanna go fishing, then go fishing

You want to go golfing, go golfing You wanna enjoy life, you can travel with your loved one, that's most people's idea of retirement If I'm already doing what I love, I'm doing what I do day to day, if I was to retire, this is what I wanna do – Right – It doesn't mean doing nothing, cause, trust me, doing nothing drives you crazy

I did that 27 years old, I retired– – You sat on a beach, right, for a month? – I sat on a beach for first month Retire first month, English Bay, just right there English Bay, right? One month I got like suntan and sunburn and shit like that

Bored out of my mind The first day, you're looking on a beach, it's good The second day, you're like this is stupid This is like, what the hell is this, right? I'm like watching people cycling, all that lazy shit, like what the hell is this? Then the second month, I went to a different mode, which I thought I'll watch movies So, at the time I was renting like movies, DVDs

And I watched five, six movies everyday Let me tell you– – You just sit and watch movies all day? – All day I'll tell you, I love movies, but you watch five, six movies a day, you don't like movies so much anymore I did that for a month I said this is dumbest idea

Cause as an entrepreneur, you go, go, you create stuff That's what we do, we are creators We are innovators We wanna do shit We wanna get shit done

Now, you're like, I got nothing to do – Right – This is dumb This is dumb shit So then, and then after that, okay, this doesn't work, I need to go get back into creation mode

I need to exercise my talent, my creativity I need to do something I need to make something I need to build something, right? But now you're coming from a different place You're coming from not from places to make money

So, I have retire, right? But not away from stuff, I retired to my business – Right – This is what I like to do I can tell you right now, people ask me, they ask me the question From then, let's say today, you give me ten times more money, I would be doing roughly the same thing

No doubt in my mind I know, because I have ten times more money than what I had before If you ask me, I make 100 times more money, I would pretty much doing the same thing – You're doing the same thing – Then I'm already doing what I want to do

So, the money is a byproduct of your impact, the value created in the market place, but I like what I do I like the people I work with I love my team We hang out We travel

I love the students, people that I serve Meeting new people This is cool I want to travel, I could travel I was in Japan for a month, I could travel

But once, it's funny, once you have the means to do so, actually it becomes less interesting – It's kinda probably like when you're younger, and you think I want all this, it's so warm, – I want to buy the Lamborghinis – and you might go to parties, or you know – I bought that already Once you can get it, it's like, you know, it's a car

– Yeah – It's like it's so interesting when you don't have it, you really want it, but when you can get it, in time, it loses appeal It's like, okay, that's fine, like it's what's the big deal, you got a nice watch, you got two nice watches, you got five nice watches That doesn't drive you anymore, because you don't need those things I'm not saying don't get nice things

I like nice things But those things, you're not buying them for approval, you're not buying them for validation You're not buying them because, hey, let me show you, let me prove to you how cool I am Let me prove you wrong Let me show you I'm smarter than you

It's not that It's just, hey, you know what, I buy cause I enjoy, that's fine But you're not buying it to impress You don't care I really don't care

I'm not buying, so I wanna impress I don't need to impress nobody, I don't care That's the difference That's really the difference So, goes back to passive income

Don't aim for passive income Aim for leverage income I think that's very smart Aim for more meaning Why not build something, do something that you like, you enjoy, you're passionate

Combine your purpose with the passion, and then with your profit I think that, that's the way to go Then it doesn't get bored, you're doing what you love And guess what, if it's your purpose and you're passionate about it, it's easy to make a profit – Definitely, yeah

– Money comes to you Money is so easy – And the one thing that I want to share on that, too, as far as my perspective on this is I think that your goal, like we said, the number one goal for people who want to retire is simply to have control of their time and freedom, why not just build a business that integrates with your life? – Integrates with your life – So, if you want to travel, I mean, there's laptop lifestyle, the nomadic lifestyle is a huge thing now, people who literally work from a laptop anywhere in the world So, rather than making it your goal to do nothing, just make it your goal to integrate what you want to do with your work

– Yes, you think about it, it makes no sense You do something you hate, that's what we're taught You do something until you're 65 years old – For 45 years, and then you're last 20 – Invest their money and then build a 41K, whatever it is, and 65, when you're so old, then you can enjoy life just a little bit, before you go to senior homes, right? Just think about that, it makes no sense

Versus, think of why and what you're doing, right? You have your YouTube channel You are traveling You coming to Vancouver We're doing business, we're doing filming It's all very integrated

You're doing it as already, it's like make that a part of your life Versus, no, I'm gonna do something I hate, then, for the whole year, but two weeks in a year, finally, I get some breathing room I can go to somewhere that I like Then, I go back to my job, dealing with people I hate, dealing with a boss that I hate, dealing with my idiot coworkers That's how people live

– It's just a bad model – It's a bad model, right? And that's why people depressed That's exactly why people are depressed No, just integrate it I believe total integration

Everything I do is an extension of what I do And that's what makes it unique This is fun, I don't feel, like to me, if just sit here do here do nothing, that drives me crazy, I can't do that – Yeah, I completely agree with that Well, Dan, thank you so much for sharing your perspective on this

I think it's good to have realistic goals in mind with looking at passive income and having that idea of I wanna do something that I can get away from, that's just huge to me, too Cause so many people are building these businesses, and they want to have everyone doing, I mean it's one thing to give other people, to delegate and use leverage, but if you're goal is to do nothing with that business, then you're in the wrong business – Why build something you don't give a shit about? Why not build something you do give a shit about and make more money? – Well, anyways, guys, that's going to wrap up this video I have a bunch of other videos I've done here with Dan, but we also have put together a private masterclass It is a free masterclass

It's gonna be the top link in the description below Highly recommend you guys check that out, especially if you watched the video up until this point, I think you're at least remotely interested in this topic of passive income and kind of everything we've talked about, but Dan, thank you so much for taking the time – Welcome – Certainly appreciate it, and I would tell you to check out his channel out, but he already has a million subscribers, so you probably already know who he is, but his will be linked up in the description below as well Thanks, guys

Source: Youtube

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