Passive income: NO

Starting an AI-Powered Digital Marketing Agency for Local Businesses with the aim of earning passive income can be achievable over time, but it requires significant initial effort and ongoing management to set up the necessary systems for automation and outsourcing. Costs range from $500 to $2000 for tools, software, and initial marketing expenses. Most people do not reach a fully passive income level with this hustle, as it typically involves ongoing client management, campaign optimization, and staying updated with industry trends. While there are success stories of individuals who have achieved passive income through this model, they are often outliers. It realistically becomes passive for those who have a strong foundation in digital marketing, experience in client management, and a knack for automation. Misleading expectations include underestimating the time and effort required to scale the agency to a fully passive income level.