Create Passive Income
How to Create Passive Income Online
As you’ve no doubt noticed, passive income is a major part of my wealth building strategy. Passive income in general is one of the best forms of leverage available, especially for someone with limited resources to start with. Online passive income is where the real magic is, however, as the potential for leverage is all but unlimited.
Creating Passive Income Online
Many people think that to build wealth online, you need strong technical acumen, along with serious marketing skills, and you need to build up a huge site that gets millions of visitors. The truth is that none of these is necessary, and shooting for massive traffic is rarely the right decision, at least at the outset. I prefer a different approach.
The early stages of the game are all about thinking small. That’s a good thing - it’s easier to have confidence in yourself and stick with it when your goals are modest. However, I personally believe that the entire game can be played by thinking small. In fact, that’s precisely what I intend to do.
How to Get Rich Off Pennies
I’m sure you’ve seen about a million ads and sites proclaiming near-instant wealth online. Most any regular Internet denizen has to be pretty jaded at this point. But set aside all that breathless marketing language about making millions overnight. Instead, ask yourself this: Do you think you can make a site that earns $1 per day, on average?
That seems attainable, right? You don’t need a lot of traffic to reach that goal. A few tens of visitors a day will often be sufficient to earn that much from Adsense. If you do affiliate promotion, you may need even less.
The truth is that most anyone can build a site in a day or two that will likely end up bringing in $1 a day in revenue. All that is required is for you learn a few simple techniques and put them into action. (More details on these soon.)
The Magic of the Passive Income Business
So if you can make a single $1-per-day site in a day or two, what’s there to stop you from making a hundred? Answer: Nothing at all. Just repeat the process a hundred times. It may take several months, but so what? If you own a hundred of these sites, you’ll be pulling in $100 a day, which is a passive income of $36,500. Who couldn’t use that?
And of course if you can make one hundred, then why not three hundred? This may take a couple of years, but again, so what? $300 a day equates to over $110,000 a year. Imagine if you earned a six-figure passive income online. Imagine the freedom and independence that would bring.
You may now begin to see the seeds of my plan to earn a million dollars . Build a site, collect the income, and reinvest it in more sites. My first is already up, and I have the funds for at least two more. The snowball is rolling…
So why isn’t your first site up yet?
What is Passive Income?
Passive income is a hot term nowadays. No doubt you have encountered all kinds of hucksters touting all sorts of spurious “passive” income business opportunities online and in your daily dose of junk mail. But what is passive income, exactly?
Passive Investment Income
Passive income in brief refers to revenue earned without any active participation on your part. The most familiar forms of passive income are investment revenue - for example, interest earned by a bank account. You need do nothing more than park your money and receive your payments. Rental real estate is another oft-cited example (alhtough considering the amount of ongoing work it takes to manage rental properties, it’s hard to see what is “passive” about this income stream.)
The Best Passive Income Opportunities
The best passive income opportunities focus on investing your time, rather than capital. The key is that you must find a way to work once, but be paid many times. A novelist, for example, works a great deal up front to produce a book, but can potentially earn a lifetime of passive income in the form of royalties once it’s finished. Similarly, residual income from sales of services like credit card processing is a great way to build up a steady stream of passive income. Each sale pays over and over again for as long as the customer stays with the service.
Passive Income Online
Of course, as you might imagine, my personal favorite way to build passive income is online. I’ll write more on how to do this in my next entry.
New Search Engine Optimization Theme
Well I went and did it - I’ve finished a new theme that focuses more on SEO and revenue. Fans of the old money-based graphical theme (including myself) may be saddened, but the changes were necessary. The pic of our favorite dime has survived, though - it lives in the sidebar now. (And yes, that really is the original dime I found in the street.)
Your comments on the new look and feel are welcome.
The Ten-Cent Media Empire
So my stake has grown to a healthy $37.89, which is just itching to be reinvested. What next? As you surely have surmised by now, I’m a fan of passive income . It’s time to create more.
We’re Buying Ourselves Out
As you may have noticed, this site has ads on it. However, I didn’t count any earnings toward my stake before now, because I paid for the domain out of my personal funds. That’s all about to change, though. Now that my stake has grown large enough, I’m going to pay myself back the purchase price of this domain out of my stake. Henceforth, any ad revenues from this site will go straight into the stake to keep it growing.
This will also serve as motivation to give the design of this site a much-needed overhaul. At present, the layout is not at all conducive to producing revenue, and is very poor in terms of search engine optimization. I’ve learned a lot in recent months about both topics, and will be putting these lessons into action here. Once the changes are made, I’ll write about what I did and why.
When Time is the Bottleneck
While running a little niche site is a great way to earn a little extra cash, the fact is that there is only so much I can write myself before I run out of time. If your income is limited by the amount of time you personally spend on your business, you don’t have a real business, you have a job. No one gets rich working at a job. If I am to reach my goal, I need a way to get past this limitation.
Be the One Who Writes the Check, Not the One Who Cashes It
It’s well known that employees don’t get rich, employers do. It’s time to bring in some outside help. Of course, $37.89 won’t pay for too many man-hours, so a different approach is needed. I’ve therefore chosen to look for partners, rather than employees.
The Plan
Here’s the notion: I’ll put up a network of niche content sites and blogs. I’ll work with writers who will produce the content. I will handle all the technical details, pay for domains and any other expenses out of my stake, and help market the sites and build traffic. I’ll split revenues with the writers 50/50.
The remainder of my stake should serve to pay the startup costs for two or three new sites. All I need to do is find writers. I’ve put up an ad on Craig’s List, and gotten a lot of interest, so it looks like it won’t be long before I can put the plan in action.
By the Way
If you like writing and are interested in partnering with me on a project, feel free to contact me at 
. It can be a great way to build a starting stake for the game, as you can start literally from zero. You don’t even have to find a dime in the street! Further, since you’ll be a co-owner of the business, you won’t be violating Rule 8.
Until next time!
The Magic of Passive Income
Hi all,
First and foremost, thanks for the emails and comments from those wondering about my absence. I know it’s been a very long time since my last post. Various family emergencies have kept me away from projects like this one for much of this year. I won’t go into the details, but in brief, two very close family members have suffered life threatening illnesses in the past few months. One had cancer, and the other a heart attack. The good news is both survived and have recovered.
I’ve also taken a lot of time to rethink my priorities in life. As you might imagine, these sorts of events can bring on the need for such reflection. I’ve made a lot of changes, hopefully for the better. More details on that to come.
The Game is Still Afoot
As for the game, no, I most certainly have NOT given up. In fact, it has progressed quite nicely behind the scenes, with hardly any input from me at all. How is this possible?
Recall my last transaction was to put up a Web site called Renewable Wealth. I added a few more pages of content to the site before setting it all aside in January. I’ve hardly touched it since. However, it has generated a steady trickle of traffic.
Passive Income
I checked the adsense logs, and discovered that the site has earned a tiny but steady stream of income. Total earnings since creation: $35.84! That’s a return of over 700% on my initial investment of $4, in just 4 months.
With no input from me over the past few months, I have made money in my sleep, and grown my stake by several hundred percent. This is the magic of passive income, of owning an income-producing asset.
Adding in the $2.05 left over from my previous transaction, I have grown my stake to $37.89, from absolutely nothing. The return I’ve earned on my initial dime is over 37000%, and I’ve moved up to step 8 of 24. Believe it or not, taken in terms of doubling, I’m a third of the way to a million dollars.
As you can see, passive income is immensely powerful.
Now what?
Obviously It’s time to reinvest, but I have a problem - the site is doing well, but it was time consuming to build, and time is precious now as always. How can I replicate this technique without burning through all my free time?
That’s the subject of the next post. Stay tuned. (And I assure you the wait will not be anywhere near as long this time 
)