5 ms·

I have a question! (Even though I could've just asked you this during the interview itself.) You say that you've automated most of the process of running the b

by csallen 10y ago

I have a question! (Even though I could've just asked you this during the interview itself.) You say that you've automated most of the process of running the business: "I've gradually adapted the software over time to automate every process, and generally I only have to step in in rare instances of high-level disputes." How much time do you spend working nowadays? And on what? What's your typical day look like?

chrischen 10y ago
It's passive income in the sense that if I just dropped everything and played video games all day, the income would sustain itself. However that's far from what I actually do :). It simply means I can free myself up to work on new features or increase revenue. So I'm still working about on average 5-8 hours per day, 6-7 days a week. I like to travel a bit, and work while traveling. Since I have no employees, this makes it easier to have this lifestyle. Whenever I get a chance to sit down in a coffee shop I'll usually stay a few hours and do work.
- antaviana 10y ago
  Do you ever take several days off? Like a two-three week vacation without being online at all. This is what I find most difficult to do for a 1-employee operation that offers a 24/7 service.
  - chrischen 10y ago
    All the time. Customer service is handled by the sellers directly.
- ska 10y ago
  So it is not passive. That's ok, almost all "passive income" isn't, and the term has been abused into near uselessness. Sounds like the term you are actually looking for is "lifestyle business" Nothing wrong than that, and it's a more sensible (i.e. well defined) goal that passive income.
  - csallen 10y ago
    I think passive is more to do with something "making money while you sleep" or, at least, "making money even if you quit." Thus, continuing to work to increase your business' revenue doesn't mean the money it already makes isn't passive. At least not to me :)
  - chrischen 10y ago
    It is passive. The revnue quoted is not sustained by the regular work. That I put into the service. As I stated, if I stopped working then that income would stay, and be considered passive.
    - ska 10y ago
      Would it? Or would it slowly decrease? Nearly all businesses have some momentum, after all. If you can walk away for say a year without touching it at all and the revenue remains basically steady, I'll agree it is passive. Anyway, it doesn't really matter - it sounds like you are working at growing a business you enjoy and that's great.
      - mistermann 10y ago
        It seems fairly reasonable to me that he could walk away for a year with no noteworthy effect. Google tweaking their algorithm obviously would not count.
      - graeme 10y ago
        There can be middle ground. I have a very similar situation to the OPs. If I stopped working for over a year, eventually there would be complaints, competitors, etc But within a one year timeframe, there's very little I have to do. And I could get away with working a couple months of the year only + maybe three hours a week maintenance, and the business would grow, slowly. But, I work consistently, adding new things, because I want it to grow faster. I also know that the environment changes and eventually the current model may stop working or need adaptation. What do you call that? It's not 100% passive. But, it's not particularly active either. Actually, having written all this, I remembered someone did come up with a better term: residual revenue. Meaning that I did a bunch of work in the past that continues to pay off. It will eventually decay, but not very fast. So I can devote most of my energy to new growth, or leisure, over the short to medium run anyway. Do you think residual revenue (or income) is a better term for this case?
- prawn 10y ago
  Do you have a partner or children to account for when working while travelling?
  - chrischen 10y ago
    No.
    - mdrzn 10y ago
      Would you want one?
      - prawn 10y ago
        Not if he wants to keep travelling easy! (It can be done, but it's more limiting and exhausting in general. Just back from three weeks in Europe with two kids under five.)
        mdrzn 10y ago
        I meant in a way so he can keep traveling and someone else would take care of the work for those weeks.
morgante 10y ago
For what it's worth, I think "What's your typical day look like?" would be a great question to add to your standard question battery. (Also, I cannot overemphasized how much I like Indiehackers. It's become my new must-read newsletter.)
- eonw 10y ago
  well if its truly passive, the question would not be relevant. since the owner shouldn't have to do anything, no?

by csallen 10y ago

chrischen 10y ago

It's passive income in the sense that if I just dropped everything and played video games all day, the income would sustain itself. However that's far from what I actually do :). It simply means I can free myself up to work on new features or increase revenue. So I'm still working about on average 5-8 hours per day, 6-7 days a week. I like to travel a bit, and work while traveling. Since I have no employees, this makes it easier to have this lifestyle. Whenever I get a chance to sit down in a coffee shop I'll usually stay a few hours and do work.

antaviana 10y ago
Do you ever take several days off? Like a two-three week vacation without being online at all. This is what I find most difficult to do for a 1-employee operation that offers a 24/7 service.
- chrischen 10y ago
  All the time. Customer service is handled by the sellers directly.
ska 10y ago
So it is not passive. That's ok, almost all "passive income" isn't, and the term has been abused into near uselessness. Sounds like the term you are actually looking for is "lifestyle business" Nothing wrong than that, and it's a more sensible (i.e. well defined) goal that passive income.
- csallen 10y ago
  I think passive is more to do with something "making money while you sleep" or, at least, "making money even if you quit." Thus, continuing to work to increase your business' revenue doesn't mean the money it already makes isn't passive. At least not to me :)
- chrischen 10y ago
  It is passive. The revnue quoted is not sustained by the regular work. That I put into the service. As I stated, if I stopped working then that income would stay, and be considered passive.
  - ska 10y ago
    Would it? Or would it slowly decrease? Nearly all businesses have some momentum, after all. If you can walk away for say a year without touching it at all and the revenue remains basically steady, I'll agree it is passive. Anyway, it doesn't really matter - it sounds like you are working at growing a business you enjoy and that's great.
    - mistermann 10y ago
      It seems fairly reasonable to me that he could walk away for a year with no noteworthy effect. Google tweaking their algorithm obviously would not count.
    - graeme 10y ago
      There can be middle ground. I have a very similar situation to the OPs. If I stopped working for over a year, eventually there would be complaints, competitors, etc But within a one year timeframe, there's very little I have to do. And I could get away with working a couple months of the year only + maybe three hours a week maintenance, and the business would grow, slowly. But, I work consistently, adding new things, because I want it to grow faster. I also know that the environment changes and eventually the current model may stop working or need adaptation. What do you call that? It's not 100% passive. But, it's not particularly active either. Actually, having written all this, I remembered someone did come up with a better term: residual revenue. Meaning that I did a bunch of work in the past that continues to pay off. It will eventually decay, but not very fast. So I can devote most of my energy to new growth, or leisure, over the short to medium run anyway. Do you think residual revenue (or income) is a better term for this case?
prawn 10y ago
Do you have a partner or children to account for when working while travelling?
- chrischen 10y ago
  No.
  - mdrzn 10y ago
    Would you want one?
    - prawn 10y ago
      Not if he wants to keep travelling easy! (It can be done, but it's more limiting and exhausting in general. Just back from three weeks in Europe with two kids under five.)
      - mdrzn 10y ago
        I meant in a way so he can keep traveling and someone else would take care of the work for those weeks.

morgante 10y ago

For what it's worth, I think "What's your typical day look like?" would be a great question to add to your standard question battery. (Also, I cannot overemphasized how much I like Indiehackers. It's become my new must-read newsletter.)

eonw 10y ago
well if its truly passive, the question would not be relevant. since the owner shouldn't have to do anything, no?