You don't build passive income by chasing passive income strategy. You build it by mastering

active income first, then deploying that active income into assets that compound over time.

What up, y'all? Welcome back to the fitness business podcast. Jordan here, your co-host. I want to talk

to you today about why everybody is selling you this idea of passive income, right? Build a course,

set it and forget it, make money while you sleep, scale without effort. I'm sorry to be the bearer of bad news, but it's mostly bullshit. I'm going to tell you why that is and what actually works instead. Okay, in a recent masterclass that we host every four to six weeks, if you should, or if you are interested, you should definitely come to our next one.

It's not scheduled yet, but I'll let you know what it is. But anyways, a coach named Tiffany jumped on and she'd been personal training, teaching group fitness classes for years, and she had this wall full of certifications, really good at what she does, really good with clients. And she was burned out. Her body was breaking down. She's kind of on this hamster wheel of, you know, trading dollars for hours.

And she was terrified to transition online because she thought that if she lost her in-person clients,

she'd lose everything. And what really stuck out to me, she was like, I need to figure out how to make passive income. And I'm like, okay, but here's the problem. Passive income is a myth, okay? More specifically, it's something that you build after you've mastered high leverage

active income. And I'm going to show you exactly what that means. And the math behind why most

passive income schemes are just a distraction or it's a, it's just a scam. And the simpler

framework that we use, typically to help coaches go from $50 an hour to $1,000 an hour. Okay, so the first thing I want to talk about is this low ticket trap. So a myth is that you can just create a low ticket funnel and it works, right? For example, you build a $30 ebook, you build a $97 course, you set up a tripwire funnel, you get people in cheap, and then they eventually upsell into your high ticket program,

and it's simple. And it sounds great on paper, right? Recurring revenue, passive income, you can scale without sales calls. But the brutal math that nobody talks to you about is when we go to run ads for a low

ticket funnel, okay, because we have tested a lower ticket funnel and we are right now, but only because

our business is at multi, multi, multi million dollars a year, we have the team to be able to test something like this. But we've been trying to crack it ourselves and it's really hard. Like right now, I have to spend $100 in order to get somebody to spend $30, right? Let that sink in. $100 in ad spend to make $30. Not a great business model, right? But the idea is that you

then can upsell them into, for example, a $3,000 coaching program. Cool. But do you know what a good

upsell rate is, even for a really, really good marketer that has it dialed in? The funnels dialed in,

the emails, the text, the messaging, the positioning, it's one to three%. So to get one $3,000 sale, you need basically

100 people to buy the $30 thing first. So with $100 in ad spend for a $30 sale, that's $3,300 to $10,000

in ad spend to make $1,000 sale. So the math just doesn't work. And what's even

crazier, it sounds counterintuitive, but it's much harder to get somebody to buy something for $30

than it is to get somebody to buy something for $3K. And I know that sounds insane, but it's true.

The reason is when somebody pays you $30, you'd be shocked at the expectations that they have, right?

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