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The "Passive Income" trap ate a generation of entrepreneurs

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Why This Matters

This article highlights how the obsession with passive income has led many aspiring entrepreneurs to pursue low-effort, often unviable business models, resulting in wasted time and money. It underscores the importance of genuine effort and understanding in building sustainable businesses, rather than chasing quick, effortless gains. For consumers and the tech industry, it serves as a cautionary tale about the pitfalls of superficial entrepreneurship trends.

Key Takeaways

I had coffee last year with a guy - I won't use his real name - who told me he was "building a business." I asked what it did. Dropshipping jade face rollers.

I made him say it twice.

Jade face rollers.

He'd found them on Alibaba for $1.20 each, and started selling them through Shopify for $29.99. Never used one himself. Didn't really know what they were for - something about lymphatic drainage? Reducing puffiness? He said "lymphatic" the way you say a word you've only ever read and never heard out loud.

Some guy on YouTube said jade rollers were "trending," the margins looked insane on paper, so he'd "built" a website with stock photos of a dewy-skinned woman rolling a green rock across her cheekbone and started running Facebook ads at $50 a day. Customers would email asking where their stuff was - shipping from Guangzhou, three to six weeks, sometimes way longer - and he'd copy-paste a response he found on a dropshipping subreddit. He had a Google Doc full of pre-written customer service replies.

Never talked to a single customer.

I swear to god.

Five months in, he was $800 in the hole.

He told me all this like he'd invented the wheel.

I bought him another coffee. I genuinely had no idea what else to do.

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