Do you know what is Passive Income?

Before we go any further, let’s talk about the difference between active income and passive income. This distinction will be paramount to your ability to produce serious capital on the web. So what is PASSIVE INCOME? Passive income, if you don’t already know, is income that’s earned automatically. It doesn’t require much maintenance once that income stream has been created. However, it does require an enormous amount of effort at the outset to establish that stream of income.

Active income requires your time and you can only produce as much money as your time allows. For example, a DOCTOR or a CHARTERED ACCOUNTANT or a LAWYER or PROFESSIONAL ENGINEER who charge high per-hour or per-consultation fees and make exorbitant amounts of cash are stifled by the amount of time they have in a day. We all have the same 24 hours. Not one person on this earth gets more time than the next. It’s the greatest equalizer in life. Truly God is impartial in that point to everybody. When the time you work directly correlates to your income, it’s called active income.

Understanding Active Income

With active income, you’re actively working to produce those wages. So if you work for someone else as employee or you’re earning a per-hourly fee as professional / consultant or you have clients and you’re working for yourself, you’re still engaged in making active-income. However, if something were to happen to your ability to work, for example, you would be unable to produce an income. This could be anything from an injury to an illness or disease, and everything in between, when you can’t work, you can’t earn.

Still, much of the world is engaged in active-income work. They work so that they can earn. When they don’t work, they don’t earn. Yet, there’s almost zero chance that you’ll get rich or make any significant amount of money when you’re solely reliant on active income. Now, don’t get me wrong. It’s possible. People do it by slowly saving and investing over the course of 30 or 40 years, but we’re not talking about that here.

If you seriously want to make money online, you need PASSIVE INCOME. You need your income to come automatically, so that you can use the precious little time you have to produce more streams of income that will pay you on autopilot. That’s the holy grail of income-producing activities. Now, it’s not easy to do, so I’m not going to sit here and try to insult your intelligence. It takes an enormous amount of effort and very little financial gains at the outset.

Over time, however, nothing beats passive income. No matter what sacrifices you have to make, if you focus on passive income, your future money-making self will thank you for it.

So, what are some examples of passive income?

1.	Real estate rentals – Clearly this takes some capital to setup. It’s not easy by any means. But it is passive income. Real estate rental brings you automatic income on a monthly basis. It does require some maintenance, for example if a problem arises and repairs are required. But it’s still considered passive income.
2.	Dividends from stocks – Dividends are a great source of passive income revenues because they pay you on a periodic basis. While you do need to own a substantial amount of shares for there to be a noticeable income, if you have money laying around, this is a great way to invest it.
3.	Blog, YouTube or website ads (i.e. Google AdSense) – Clearly, this requires much less of an investment of capital upfront, but it does require a significant amount of skill and time to build both age and authority. However, this will only really provide substantial income when you’ve reached tens of thousands of visitors or views per day.
4.	Book and audio book sales (i.e. Kindle and ACX) – This source of passive income offers you the opportunity to make money online far quicker than launching a blog and earning money off of advertisements or affiliate sales. However, it does require skill and knowledge or a tremendous acclivity of research and effort.
5.	Automated drip-campaigns through email marketing – Email marketing is something that also requires a great deal of time to produce an income from. You first need to build and establish authority, then get thousands of people to sign up to your email list, and only then can you market and begin earning an income. Think in terms of years here.
6.	ATMs and vending machines – This requires a bit of upfront investment and sales skills. You need to buy the machines and then make contracts to place those machines in a variety of destinations based on volume of traffic. Still, you can get up and running relatively quickly with this passive income stream.
7.	Selling Digital Products Online - Selling digital products online is a great way to make Passive Income. You can sell e-books, courses, prints, or audio files. The internet has democratized education. Someone out there is looking to learn a skill that you specifically can teach. Think about what your skills and interests are. Can you package some of those things into a book and sell it for $15 online? Say you're a woodworker who has been creating original pieces for 10 years. You could write a step-by-step guide on how to source wood, use the tools you love the most and where to find them, and common wood restoration practices that new woodworkers should know. Putting this all together takes time upfront, but then you can sell it online forever. To earn $10,000, an e-book at $15 each would need to sell 667 copies. If you turned it into a visual and audio course and sold it for $150, you would need to sell just 67 copies to earn $10,000. Since you can reach far and wide with the internet, selling products online is a popular passive income idea.
8.	Accrue Dividend Payments Dividends are payments some companies pay to their investors. If you have enough money in dividend-producing investments, you could potentially live off of the dividend earnings alone. Different companies pay dividends on different timelines. Some pay monthly, some quarterly and some annually. You can reinvest your dividends while you're in the “wealth accumulation” phase, while you build to a point where the dividends are big enough to live off of. But once you reach that point, dividends are a completely passive way of earning income.

Active Income vs. Passive Income

The most basic of money management principles is to make sure that you have more money coming in than you have going out. This is vital if you want to find financial success. Of course, this means that you need to have some sort of income. Understanding where your money comes from is important, and you should know the difference between active income and passive income.

 

ACTIVE INCOME

Most of us are familiar with active income. This is income that comes from our active efforts to earn money. For many of us, this includes working at some sort of a traditional job (Full Time / Part Time). Active income can also come from the efforts you put forth to make money with a side business, or by doing odd jobs.

The main reason active income is called “active” is due to the fact that you have to do something. Often, that something requires a significant expenditure of time or effort. Even if you make money by sitting in an office all day, you may find that you are still engaged in active income, since you have to go through the process of getting to work, and then you have duties to perform. Even if it isn’t physically strenuous, it might be mentally challenging. Even a tedious job that is not challenging in any way can actually be considered “active”, since it is quite draining to go through the day in such a setting.

Active Income: Money you must physically work for (i.e. your day job).

No work=No Pay

PASSIVE INCOME

On the other hand, passive income is earned when you put your money to work for you. Many also consider passive income to be income from activities that you do for a short time (the set up) but that require very little else to maintain the income flow. For example, you might spend some time putting together a web site with affiliate advertising. It requires some up front time and effort, but after a while there is no need for you to put in a great deal of time. The money flows in with very little continued effort and oversight on your part.

Passive income can also come from investments. Dividend stocks and bonds are popular income investments. You put your money in (or set up an automatic withdrawal), and you earn money from dividends or from interest. There isn’t a whole lot you have to do beyond checking every, so often to determine whether your income investments are performing as you like. The money comes in, but you aren’t doing much.

Transitioning into a position where passive income provides more of your earnings is a worthy goal; since it will leave you time to do the things that you want to do. Track your income, as you track your spending, and learn what you can do to improve your cash flow.

Passive Income: Money you earn without working for. (i.e. Dividends from investments, interest from savings accounts, royalties, etc).

Passive income is money keeps growing–even when you sleep, take a vacation, or are sick.

What does it influence you for Making Money Online Today

Now it is the common quest, what does it actually take to make serious amounts of money online today? While many might buy into the hype, there are only few of them who have been succeeded. They’ve put their hopes up and hinged their expected financial wealth on the supposed success of these internet marketers who’ve sold them some system that was going to make them rich.

No. No. I’m sorry to burst your bubble, but it simply doesn’t work that way. It takes real sweat equity to make serious cash on the web. Now, I’m not saying there’s anything wrong with the internet marketing space. There’s nothing wrong with trying to help others make money online.

The space is filled with some legitimate individuals who sincerely desire to help others for creating real value out of there. The problem? They’re too few and far between. And even the ones that are sincerely trying to help you make money are still trying to extract a great deal of hard-earned cash from you.

Yes, that doesn’t mean that all hope is lost. It doesn’t mean that you can’t make money online in the legitimate way. It just means that you need to analyze things with a fine-tooth comb. Allow me to help you peer beyond the hype and the pizzazz. But, this article is more than just that. This article is a serious look at just how you can make money online today. This is a definitive guide, if you will, for analyzing, extracting and pursuing the right method for you.

Do You Think Making Serious Cash Online Will Really Be That Easy…?

I’m not sitting here and telling you it’s going to be easy though. It’s going to be downright difficult. At times, you might kick and scream in frustration, wondering when it’s ever going to happen. The difference between those that succeed with any type endeavour online and those that fail, are the ones that have cloud-nine dreams of lightning-fast internet riches. That might be because of all these supposed experts out there who tout these overnight systems, or it might just be our general desire for instant gratification.

We want what we want, when we want it, isn’t that right? Isn’t that why, as a culture, we’re so impatient? Isn’t that why we have fast-food joints around every corner? And isn’t that why we demand instant service before taking our business elsewhere? Isn’t that why we complain when we don’t get our way as quickly as feasibly possible? Yes, it most certainly is. We’re simply a by-product of our own culture and society.

Still, you have to shift your thinking if you’re serious about making money online. You can’t think about days or weeks. Rather, you need to be thinking in terms of months and years. This isn’t some overnight expedition or something you’ll accomplish quickly by any measure. We’re talking about a long and very drawn out journey that will invoke every fiber of your being and zap you of your time and energy at every level imaginable.

Okay. Okay. So enough of the red flags. Enough of the cautionary words. Let’s look at what it really takes. In this guide, I’m going to introduce you to several ways that you can really make money online. By no means is this simple. Sure you can generate a few dollars or even a few hundred dollars doing things like selling your used electronics on eBay or any other marketplace, but that won’t get you rich. What will get you rich is when your money-making capabilities shift into autopilot.

What Should a Blog About?

You can blog about almost anything. However, you won’t be succeeding on it if you are not staying true to yourself. Don’t create any blog about something which you’re not passionate about. Don’t make blog about something you are not enough knowledgeable about. You must have some level of knowledge and an unstoppable level of passion. That’s just how it works if you want to succeed in Blogging.

The truth is that success through blogging will take time like any other profession. It clearly doesn’t happen within overnight time. So if you’re not passionate about it, you will be finally sucked. You’ll give up when the things are going tough. That’s Plain and simple. So you have to absolutely love what you’re doing and write strongly about it.

When you truly do that, it comes across to your audience. They will know whether you’re being real or fake. It will resonate with them. They’ll relate with you and would become a firm believer in your cause or your journey. If you’re not being honest or real, your audience will understand quickly. As a result Google ranking will getting worse. Therefore, passion and truth are really very important.

When your content resonates with people, it naturally gets shared more and engaged with more, which search engines like Google pay a lot of attention to it. The point? Love what you’re going to blog about or don’t waste your time doing it. You won’t have fun and you won’t make money if you don’t follow that one guiding principle.

So where do you go from here? If you’re absolutely ready to start your blog and be on the road to making money over time (not overnight) then here are the steps you need to take.

#1 — Decide On A Niche

The first step in building a blog is to decide on a niche. What do you want to write about? What area are you an expert in? Now, you don’t actually need to be an expert, but you do need some level of knowledge or a willingness to learn all that you can and eventually convey that knowledge.

You should also note that certain niches are far more competitive than others. So if you plan to generate steady income from your blog, you’re going to need to rank your posts competitively on Google’s search engine results pages. That’s not just about understanding of SEO. That’s also about ensuring that you’re not in a fiercely competitive niche.

For example, if you plan to start a blog about making money online, passive income and things of that nature, which is extremely competitive, then it’s going to take you considerably more time to start generating money from your activities. You can’t simply expect to prop up a blog, make a few posts and become a millionaire within overnight. It doesn’t work in that way what you are thinking .

Although most internet marketers (IMs) will try to convince you otherwise, there is no “secret success formula” that will help you build a mass fortune quickly on the web. There is no “newly-discovered blueprint” that will give you the tools for success. No, it’s all about, how you are ready to grind inside a wheel. That’s Plain and simple. However, the niches that involve more competitive transactional searches, such as the online money-making niche, are going to be harder to make progress in at the outset.

#2 — Purchase A Domain Name

The next step in building a blog that will actually make you money somewhere down the road is to purchase a domain name. If you’ve decided what you’ll blog about, then you need to find a domain name that’s going to be harmonious with that. Pick a name that’s short enough to be easily remembered, but also keyword-rich enough to be applicable to your content.

Keep in mind that you’re not just building a blog, you’re going to be building a business and a brand. The more memorable you make your domain name, the more likely you’ll be to succeed with your blog. If it’s catchy and people can remember it, they might just come back to it over and over again as long as the content is great. But it all starts with a domain name.

So, how and where do you get a domain name? While there are numerous sources for getting a domain, it’s quite simple to purchase one while you buy your hosting account (explained in the next step). Or, if you already have a domain that you intend on using, you could simply port that over to your new blog.

Your Domain Is Your Online Home

This is going to be your virtual home, so put some careful consideration into choosing the right domain name. You wouldn’t just purchase the physical home that you live in on a whim, would you? Of course not. So choose wisely. Take time to scour and analyze domain names to find the right one. Here are some pointers when searching:

· Limit the domain name to not more than three keywords such as passionfire.whatever or professionalresumeservices.whatever or bigmarketingschool.whatever. Tripadviser.whatever. wondertravels.whatever  Get the point? Don’t go over three keywords because it becomes too cumbersome, burdensome and difficult to remember for visitors.

·      Pick a domain name that contains a keyword related to your niche so you can get a leg up on being found relevantly in online searches. That’s not to say you’re going to rank right away. You definitely won’t. But that keyword will help you down the line to build your brand within that niche.

·      Try to avoid using hyphens if you can. Although many of the best domain names are taken, you can still find good, relevant domains without having to insert hyphens. While it might be unavoidable depending on the niche that you’re entering, try to purchase your domain name without it.

·    Where possible, select a domain name that ends in .com rather than any other extension. As appealing as it might seem to select a domain name with a different extension, you’ll find the dot com extension to be the most assuming type when people are trying to locate your blog.

#3 — Purchase A Hosting Account

Okay, so you’ve made the decision to start your blog and you’ve done your due diligence on what you’ll blog about. Your next step is to take some action and register that blog by purchasing a hosting account. A hosting account is simply a computer attached to the internet where your blog will live. It’s always on and it’s always connected.

When you purchase a hosting account, you’re actually just renting space on a server. Either you’re sharing that space with others, or the server is yours and yours alone to use. When you first start out, it will likely be the former. Your hosting account will be what’s called a shared hosting account, likely on what’s called a virtual private server (VPS).

Without getting to technical, a VPS is simply a configuration of web software that helps you manage everything that lives on your server. From your files to the database and applications that live there, you get unfettered access, in realtime, to managing all of that on your hosting account. But you have some virtual roommates, so to speak.

When you’re ready to get started, head over to BlueHost / Hostinger / HostGator etc. which powers over millions websites worldwide, and are possibly the most popular hosting companies in the world. At their homepage, simply click on the “Get Started Now” link and you’ll be forwarded to a page where you can select your account type.

The best part? If you’re not happy with their service, you’ll get a full refund within 30 days. If you’re outside of 30 days, you can get back a prorated refund. Their refund policy applies to their hosting only and not their add-on services, so you couldn’t get a refund for any domains you potentially purchased, so just keep that in mind.

Currently, there are three account types there:

·        Basic Hosting Account: Less than your morning latte, this is definitely one of the least expensive hosting accounts out there. You can host a single website with up to 50GB of space, which is more than plenty by the way, unmetered bandwidth, so you’ll never be charged overaged and 100MB of email storage.

·        Plus Hosting Account: The next tier up is the Plus account, which includes unlimited space and an unlimited number of domains, just in case you want to host more than one website. You also receive unmetered bandwidth and unlimited email storage for not much more than the Basic account.

·        Prime Hosting Account: This account is their best value. Not only do you get everything that you get with the Plus account, but you also get website backup, which can come in very handy by the way, and private domain registration. They’re also throwing in $80 per year worth of extras here.

Once you’ve selected the right account, you’ll move to the next page where you can actually purchase your domain. Either you already have a domain, which you can easily port over to their service, or you’ll buy a new domain name. If you’ve already done the research on your domain, this step should be fairly straightforward. If you haven’t, don’t rush this step and take enough time selecting the perfect domain.

#3 — Install WordPress

Once you’re up and running with your hosting account, your next step is to install WordPress, the most popular blogging platform, onto your newly-minted blog. This is a rather straightforward process, so don’t be alarmed here. In your Bluehost control panel, you’ll find a simple one-click logo icon with the description “Install WordPress,” that will help guide you along in the process.

All you have to do is select a few key details such as your site name, admin username, password and email address, and you’ll be well on your way to being up and running very quickly. Simply look for the WordPress icon towards the bottom of your hosting control panel screen once you’ve setup your account.

Also, keep in mind that for security purposes, you should choose a difficult username and password for your blog admin when going through the setup process. Don’t use the username “admin” and don’t choose an easy-to-crack password. You’ll be doing yourself a disservice by doing that.

When WordPress has been properly installed, you’ll need to configure your settings. One of the important settings that you’ll need to address is called permalinks, which is located in the settings > permalinks section of your WordPress administration.

Navigate to that page and pick the “Post Name” option so that your page titles are translated into nice semantic URLs, which is crucial for higher visibility. Remember, every little advantage will count in the beginning!

#4 — Write Like the Wind

Okay, so there are a ton of other considerations. For the sake of brevity, I’ll have to skip over all the little nuances that are involved with configuring things properly and optimizing for things like search engine optimization and installing plugins and so on. If you want to learn about SEO, I would recommend checking out popular courses on Udemy  on the topic.

However, the biggest point that needs to be made here about succeeding with your blog and eventually making any semblance of a respectable amount of cash, is to write like the wind. Consistency is critical if you’re going to succeed, which is the problem that almost everyone has with blogging.

If you’re not a self-motivating individual, you might find this to be extremely difficult. The truth is that it takes years to build a solid blog audience. It won’t happen overnight. However, once it does happen, this is by far one of the most lucrative passive-income generating activities that you can engage in.

#5 — Build a Platform

The hardest part about making money from your blog is actually building a platform. Your platform is your brand. And brands are built by building trust over time. Not overnight. Over time. This requires consistency, integrity and honesty. It doesn’t happen quickly or easily whatsoever.

However, building a platform isn’t just about that. Building a platform involves ensuring that you’re always doing the most amount of work for the least initial return. Sound crazy? Okay, it might be a little bit crazy. But it’s true. You have to go out of your way for your readers. Because, believe me, they pay attention and remember what you do for them.

If you’re solely interested in extracting money from your readers at the outset, you won’t succeed over time. You’ll fail. However, if you do things honestly and with integrity, ensuring that you’re being consistent and truthful in your advice and your prose, people will pay attention.

#6 — Get Social

Finally, in order to build a blog that actually makes money, you need to get social. You need to collaborate with others. Communicate with leaders in your niche. Reach out and share other bloggers’ content. Acknowledge their work and give them positive feedback. Don’t be pushy about it and don’t look for anything in return. It doesn’t quite work that way.

The problem is that in order to build your audience and increase the size of your platform, you need visibility. But in order to be visible, you need great content. However, if people can’t discover your great content, how are you supposed to build your audience? If you know anything about SEO, then you know that it’s the proverbial Catch-22 at the outset.

The truth is that people won’t discover your blog. You will see that shirt more times than people will see your blog. It’s painful in the beginning. If that doesn’t dissuade most would-be wild-eyed bloggers, then just about nothing will. But it doesn’t stay that way. Clearly, things change gradually over time as long as you don’t give up.

Why do you wish to start A Blog?

Before we tend to begin discussing the ins-and-outs of beginning a journal in a shot to urge Associate in Nursing financial gain (passive or active), you wish to raise yourself why you’re beginning it inside the primary place. are you doing it strictly for profit? Or, do you have any various intentions of fulfilling some bigger objective and adding worth in others life?

If your answer was the previous, you’re wasting it slow. In fact, if you’re not beginning a journal as a result of you’re inherently regarding|keen about|captivated with|obsessed with|passionate about|addicted to|addicted to|dependent on|smitten by} no matter it's you’re blogging about, it really may well be a cause. Why? as a result of building a journal to Associate in Nursing new one is an astronomical exploit. I don’t tell you that to scare you. solely to rearrange you for what’s to come back.

However, to the victors go the spoils, about the old saying goes. however that’s most actually the reality. Some blogs command Brobdingnagian audiences of the many guests checking in daily, weekly or monthly. and people visits translate into real actualized earnings, which might appear nearly unachievable to those who are simply beginning out.

Here are some reasons why you may wish to begin a blog:

1. produce a location-independent fashion – journals are nice for operating whereas traveling and creating cash from your Blog is easy. notwithstanding wherever you may be living. during a recent study, I talked concerning Daniel could be a British adult male UN agency works with Skyscanner and LonelyPlanet.  I conjointly wish to talk concerning however wandering Matt, one all told the foremost common travel bloggers, started his journal so as that he might get pleasure from traveling the globe and not be tied to a 9-to-5 table job.

2. whereas launching or building a business on-line – Another nice reason to begin a journal is to deliver content to assist support and promote a business. whether or not new or existing, blogs are a wonderful due to deliver content that adds worth and successively gets traction from search engines like Google.

3. to assist others by sharing experiences and conveyance data – frequently, folks merely wish to begin a journal to assist share their experiences and convey data, particularly in areas which may prove terribly helpful to folks like in on-line promoting, passive financial gain generation or program optimisation, simply to decision a combine of.

4. to push a book, band, art, hobby or personal whole – If you’re Associate in Nursing author or a part of a band, or just love art or have another hobby you wish to share with the earth , otherwise you merely wish to boost your personal whole, a journal could also be an honest thanks to assist increase your visibility into the public’s eye.

5. facilitate document travel, education and different life events – generally, folks begin blogs to assist document some quite journey. That journey may be traveling to some faraway destination. That journey might conjointly involve learning a instrument or a replacement language. It might conjointly involve a life event like obtaining married, unmarried  or fighting through a health scare.