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The Passive Income Illusion That Derails Businesses — and the Reality Most Founders Ignore

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Opinions expressed by Entrepreneur contributors are their own.

Key Takeaways One-to-many is often sold as passive income, but most founders lose money because they build offers no one asked for, overproduce too early and try to scale before anything actually converts.

Done right, it’s one of the highest-ROI growth levers there is, but only if you validate demand first, keep production lean, sell live, focus on one funnel, track conversion metrics and scale only after the data proves it works.

One-to-many sounds like the dream to so many founders. You create something once, share it and collect payments while you sit on the beach.

And it makes sense — founders are 30 percentage points more likely to have volatile income in their business than non-business owners, so it is only logical that the promise of a passive income stream steadily supporting your business sounds alluring.

In reality, most founders burn a ton of cash pursuing this because they get swept up in the optimism and aren’t prepared for the reality that one-to-many still takes hard work to get going.

All too often, you see an entrepreneur launch a course no one asked for and run ads for content that doesn’t convert. The problem isn’t one-to-many itself, but instead it’s doing it backwards.

Done right, one-to-many is one of the highest-ROI ways to grow a business. Done wrong, it’s a very expensive hobby.

Here’s how to approach it like an operator, not a content creator, so you get ROI from your pursuit of one-to-many.

Start with understanding your market

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