I've seen it. It's a glint in the eye, an intensity in the look, a feverish scribbling of notes during a talk.
It's the desire for passive revenue - to set up a system that produces money while you spend the rest of your life on a beach in Cancun, occasionally checking how much you made today while doing nothing.
I love to see that desire because, frankly, I have it too.
That's why it's so hard to pop the bubble.
Internet publishing can produce passive revenue. But only for a time. Getting passive on the Internet is a bit like taking your foot off the gas in a car. It will keep coasting forward for a while but unless you put your foot down again, you will eventually grind to a halt.
On the Internet, that happens for all sorts of reasons.
It happens because your content gets old - or if you're buying content, your writers do.
It happens because the revenue systems change - Chitika introduces new rules, Google introduces a new ad format, the price of your most important keyword plummets.
And it happens for all sorts of reasons that you just can't put your finger on.
Earning through advertising is never completely passive. You have to produce new content and you have to keep an eye on your revenues, your strategies and what the advertising systems are doing.
It doesn't have to be a huge amount of work. Just as the speed of your car depends on how hard you push so the amount your site earns depends on how hard you push the conversions. Take it easy - add a post a week and don't experiment much with different placements - and you won't have to sweat but you won't have much income either. Work hard and you'll have higher income -- and the ability to coast for longer when you want to.
We do like to talk about passive income on the Internet but mostly we like to talk about the opportunity the Internet offers. One of those opportunities is to decide for yourself how hard you want to work - and how much you want to earn.
It's Del.icio.us!
Furl It!
December 19, 2008 09:21 AM
You right..I agree with you that we have to work hard to get passive income from the net.
December 19, 2008 10:37 AM
Passive income is a good thing, but I am just learning about Adsense, so we have not yet used it on our first, original site.
Instead, we have a shopping page where most of the goods and services are physical products, while some are not (including Instant Form Pro).
We are still debating on whether to add Adsense to our site.
Would anyone like to share their thoughts/opinions on this with me? I am always open to suggestions.
Many Thanks!
Best,
-K
http://www.for-the-troops.com/shop/
December 19, 2008 10:53 AM
Joel,
I think when most people refering to Passive Income, they don't meant that the would not have to work again and spend their life on a beach. They actually meant that they would not have to start all over, but rather do few hours online work and still make what most people work doing 9-5 job.
Just my two cents
Muhammad Fayyaz
December 19, 2008 11:02 AM
You are very right. And I trust that you, with your track record, would know, of all people! So I am prepared to adjust my expectations with the level of service and value I produce for my readers on a regular basis.
December 19, 2008 11:31 AM
I guess it all depends on if you take it literally. Passive means not taking action. That may be true but as Joel says eventually the momentum will stop. You get what you put into things passively or not.
December 20, 2008 12:31 AM
There is no such thing as PASSIVE INCOME. Its an illusion, sound bite, a dream that you hear at seminars where books and tapes are sold.You have to work so hard in this "Internet business" to stay on, that your eyes will pop and hairs will fall.
How do I know that? I have been climbing these trees of promises since 1997.
Joel Comm is absolutely dead on right! He is correct.
December 20, 2008 01:15 AM
Passive Income can set you free from many of your worries which infect your mind by causing stress. I'm talking about your home mortgage, your health insurance, your automobile loans, your college loans, your credit card debt, the list goes on and on. When you are at the point in your life that you can just cover the basics, I'm not talking about living like a King or Queen, just the basics, then your mind really opens up. It's a weight taken off your shoulders, you are free to think more and do more in a relaxed state of mind.
Passive Income does however take work, LOTS of work, just as Joel says in his post above. Sure, you can build it up to the point where you can pay cash for things instead of financing them but without consistent work, what you have done will soon sink into the sand on which you built it. You have to stick to your plan and work it like the business it is if you want to keep your butt at home instead of in a cubicle somewhere.
I am thankful to have many sources of income flowing into my household, I'm not held prisoner by just one. I was reading on my Twitter page just this morning from a person who was bragging about how working a job is safe and they enjoy the security it provides. I thought to myself, this person has got to be joking, do they not read the news or socialize with anyone outside their place of employment? I can show you a 100 businesses that are more secure than your job IF you work them as you do your job (assuming you actually work while at your job, FaceBook and Twitter can be considered work because you can monetize them). Just because you own a business does not mean you will make money, you might even lose money. It's a risk but so is a job, at least you get to choose the odds instead of someone else though. The choice you need to make is who are you living for, you and your family or someone else and their family? Build your own dream, make a passive residual income from it and live happily ever after. I'm not saying go quit your job, not until the point your business produces enough NET income to afford you that luxury and don't be short sighted, make sure your business is going to stand on its own two feet before you up and quit... wait 6 - 12 consecutive months where your business' NET income is greater than or equal to what your job pays.
The neat thing about working from home building a passive income is that you get to write off a TON of stuff that otherwise you don't get to write off with your job. For instance, you might qualify to write off your automobile expenses including the automobile purchase itself. You might also qualify to deduct such things as travel, food and entertainment so long as they are business related and you keep detailed notes about what/when/where and the nature of business discussed. Heck, there's even ways for you to write off a hot tub. One day I'm going to write off a Ferrari, the government does not care about the brand or cost, only that the item is used for business purposes. I'm not a tax consultant so please consult one, they are the expert on write offs and can legally mentor you in that area of your business, not me, I'm just an Internet marketing guy who knows a thing or two about the aspects of my chosen profession.
Sell things that people "want" and not just "need", things that require them to be replenished in one form or another... then sell the same people those things time and time again to create that passive income you desire. Build it until you are happy with what it produces for you and your family. You will soon realize the major source of stress in your life is not about how to pay the bills but rather where to vacation next. We recently traveled to Maui, Hawaii (http://www.shannondenniston.com/pics/mauihawaii) for two weeks thanks to passive income. My office for those two weeks was the balcony of our suite overlooking Lahaina Beach. My attire was boxers, flip-flops and a t-shirt. Life is only what you make of it, do what you love and the money will follow IF you work it.
Expect Success,
Shannon D. Denniston
Mt. Sterling, Kentucky
December 20, 2008 01:22 AM
There is passive income and than there is Residual income.
Take a close look at the word in question anything that is passive doesn't last long. On the other hand residual can go on for ever with a little effort.
Sort of like Zig Ziegler put some time ago it's like priming the water pump once you've worked hard and have the water flowing it take very little effort to keep a steady flow. Gotta love ol Zig.
December 21, 2008 09:19 PM
Passive Income Online comes in direct proportion of your hard work.
Yes, Internet Marketing is a great vehicle for achieving financial freedom...
Not forgetting that "Discipline today = Long Term Freedom Tomorrow"
"Too Much Freedom Today = Long Term Pain & Suffering"
Let's get out of out of our comfort zone and let's make 2009 our
best year ever.
December 23, 2008 02:43 AM
The harder I work the luckier I get in business. The only place diamonds come before work is in the dictionary!
December 24, 2008 09:30 AM
You're absolutely right! You take that foot off the gas and deceleration is going to happen. I prefer to keep my foot pedal to the metal baby! Great article and thanks!
December 26, 2008 03:22 PM
Work is right but, I have noticed that there are loads of information and tools available, on the Internet, to help decrease the work and increase the passive income.
For Instance:
Youtube: A huge traffic generator that has helped put several dollars in my account and contributed to an increase in my email list subscribers.
Clickbank: They have provided a platform for us to develop our own products and then get connected with webmasters who will help generate passive income by selling the product for a commission.
All of my life I have worked with my hands building cabinets. I am addicted to working towards generating passive income through Internet marketing.
What I find to be so wonderful is that the people who are making a living from what they do on the Internet, the "gurus," are telling us newbies, "don't get discouraged just keep generating content."
Even in this post, it's mentioned about the return that we will receive on our investment is directly related to the content that we generate.