PASSIVE INCOME; FACT OR FICTION-Part 1
“Earn $6000 each month; I started my Home Business 3 Years ago. Now I’m rich and Free.” Google ad
In perusing brainyquote.com looking for an income quote I came across this ad. This is the perfect example of the HIGHLY UNLIKELY. Who do you know who has become wealthy in 3 years? I’m sure it happens………. very infrequently.
This 2 part series will uncover the pros and cons of some popular “passive income strategies.” After reading the series, you decide whether these popular methods are truly passive or not.
MAIN TOPIC: The Secret of Passive Income-or NOT
We are all looking for passive income. Get passive income, sit back, drink a cocktail and watch the money pour in. The opportunities are everywhere; blog ads, web site products, multiple sites, bond investing, real estate investing, stocks, and mutual funds. I’ve even written about it in Get Rich while you Sleep. In fact, I was so inspired by an article I read on this topic at Saving Money Today that I began planning my second blog.
PRACTICAL APPLICATION: How Passive is it?
Let’s go through each passive income strategy and look at the Pros and Cons. Since I have done most of them, I am speaking from personal experience!
1. Blog advertisements:
What is it: Start a blog, write good content, network to get readership, put up ads from google or other sources, watch the money pour in.
PROS: It’s fun, if you like to blog and have something you’re passionate about. I’ve heard varying amounts of money can be made from this strategy.
CONS: It’s much harder than it looks. Writing good content takes time (a lot of time). Getting readers to find you, come back, comment, and embrace your site does not happen overnight. It is an ongoing endeavor with a payout likely much lower than the hourly wage you would earn working at McDonald’s.
TAKE AWAY: Do it for love. Money is a byproduct. Unlikely this method will allow you to quit your day job for quite a while. Time consuming but can be a nice side income. Patience is needed; significant results take years, not months.
2. Web site products:
What is it: Develop proprietary products; books, kits, videos, worksheets etc. and sell on your web site. Once the products are created, you’re done. If they are marketable, and your traffic and reviews are good, they will probably sell and you won’t have to do too much more.
PROS: You have the opportunity to provide a product or service, sell, and profit from that product. The market will let you know whether it’s worthwhile or not (pro or con).
CONS: Very time consuming to develop a legitimate product or two that people will buy. Did I say it’s time consuming? This does not happen fast! See #1, still need to keep traffic up at web site and this is time consuming as well.
TAKE AWAY: Product development, large initial time & possibly financial outlay initially; after that no more work. Must continue devoting time to marketing website.
What are your PASSIVE INCOME experiences?
Get a notebook and label it: “(your name) Personal Finance” and keep it by the computer. Use it to keep all of your personal finance goals, thoughts, activities, and plans.
- Make a pros and cons list of your own to determine whether these strategies are viable for YOU.
- Come back tomorrow for the continuation of this series.
Image credit: cleebster