Making Money 24/7
The holiday season always reminds me why I make my money online. When I used to run a print shop, we would shut down the day before Christmas and wouldn’t open again until Jan 2nd of next year. Many businesses shut down for a few days or even a week during the holiday season. While it’s nice to take a little break, it’s also a bad use of resources – you have all those assets sitting there doing nothing.
The Net is a completely different story. My sites make money no matter what time of the year it is. That was driven home to me during Christmas dinner at my parents house. I went to check some stats and found I was up by a few thousand dollars. On a day when nearly all traditional businesses are closed, I made money. And I made it while enjoying Christmas dinner with the family. It’s pretty hard to find a deal as good as this.
Passive Income Vs Active Income
Active income is money made for your time input. The best example of active income is a job – you do your work, you get paid and when you’re not working, you don’t get paid. Passive Income is money made whether you’re there or not. Best example of passive income would be income from investments. Given a choice, most people would prefer to make passive income over active income. Why spend your time making money when you can spend it on much more important things?
While some get rich quick gurus have promoted it as such, blogging isn’t 100% passive income. From an Internet marketing stand point, it’s one the less passive income sources available because it requires a substantial and on going time commitment. Blogging isn’t like affiliate marketing where you set up the landing page, add Google AdWords and watch the money roll in (it’s really not that simple but that’s for a future post).
Blogging does allows the advantage of making money 24/7 and that helps to create a passive income stream. However, most blogs require a hands on approach so you should really enjoy the topic you’re blogging about. If you don’t, then the chances of your blog making you money 24/7 is slim to none and slim left town.
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- Posted in Make Money Online, Ramblings, The Net
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- Dewitts Media » Make money and Live the High Life through Passive Income - December 27, 2007 at 7:13 pm
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I love passive income .. I make money while Iam sleeping.
Your living the dream John.
Don’t all internet marketers make money while they sleep? Afterall, that’s the whole point…
your blog runs and you may money 24/7.simple.
Well you have to make your blog run, hence why blogging (should not) be categorized as passive income. John would not be making a penny if he doesn’t write posts and entertain his readers.
haha blogging is a verb therefore active!
The great thing about making money from your website is the fact that you are not selling your time. When you are working for someone, you are only getting paid when you work (once you leave the office, you stop generating income). As a webmaster, you can even earn money while you’re sleeping.
Is it 100% passive income? Obviously not, since you have to provide value to your visitors on a regular basis and that will require sustained efforts on your part. If you just publish a website and stop adding content, visitors have no reason to return, it’s as simple as that.
The main advantage of being a webmaster is the fact that you have the freedom of working for yourself. Both time and sustained efforts are required, but the end result makes everything worth it.
Alan Johnson
Also, remember that by working on your blog, you’re increasing the value of an asset that you own. Working the traditional job, you’re increasing the company’s assets and would have nothing to show for it if you stopped. Usually, the more you work on a website or blog, the more you can sell it for later.
I think about this all the time. With a “real life” job, your hours and the amount of money you can make are maxed out. Even if you are a lawyer that charges $500 an hour, you can only work so many hours in a day. Internet business is amazing…
And then there comes a time when you will no longer be able to work.
True,
But there’s a big difference with making a guaranteed $500/hr and a theoretical $XXX/hr if you get XXX visitors and XXX sponsors. After all if everyone could make the kind of money John Chow does, wouldn’t we all be doing it?
Everyone can do it, trust me. It`s just that not everybody is trying it hard enough, and you don`t start with xxx$/hr but x$/day and most of the people got discouraged by that, and quit before they are able to get to the real income, and that`s why we have so few people like John.
So before questioning what he say try it for your self
Ah! Passive income while you sleep – who wouldn’t want that?
I think that you have proven that passive income is exponential, while active in come is not.
Zac makes a great point regarding the hourly rate. No matter how high your hourly rate, there still exists a finite maximum.
Whether you leverage the power of programming, machines, or employees, there is no substitute for passive income.
John, depending on the format some blogs can be passive income. I’ve seen several blogs set up that pull their content from other sources that end up making money via adsense or affiliate offers. For the most part though, you’re right it’s not 100% passive.
Are you referring to those automated blogs that scrape other people’s content? If so, you’re right about them being completely passive, but I don’t like the fact they are stealing another person’s work and generating income from it that they are not sharing with the author.
I’d agree, the scraper blogs are ethically questionable at best. However, I’ve seen some others that are automated by using user generated content or aggregating headlines etc.
Even if making money from your website is not 100% passive, you can still earn money while you sleep: you write an article and people visit it while you sleep as well (visit which result in impressions, clicks, sales and so on).
In Zac’s example of the lawyer charging $500 per hour, let’s face it, who would pay that person for sleeping? He gets paid when he works on a case, since he is only providing value to the customer when he is working.
Let’s look at it this way: a lawyer can only help a certain number of customers at a time. As a webmaster writing a great article however, you are providing value to your visitors 24/7 through the article in itself, definitely a win-win situation.
Alan Johnson
It completely depends on the blog, as stated above. However, I have seen certain niche’s just keep blooming regardless.
passive is the way to go
Online passive income sounds interesting but I wonder what is the success rate? Everyone can join the online bandwagon, the entry requirement is too slow but the failure rate is just too high.
Reading John Chow’s ebook will give some insightful information about making money online, but put into practice is another story. As a blogger, the first hurdle is how to earn your first hundred bucks.
One of the reason for the high failure rate is because the barriers of entry is so low that people don’t take it seriously. When you only have $8 tied up in a domain name, you’re not very worry if it doesn’t work out. However, if you have $1 million invested in a business, that’s another ball of wax!
Sure, there’s money to be made online, but John, you have to be realistic, there’s not a lot of people who are capable of bringing in the massive amount of money you do. You make it sound easy, but that’s a misrepresentation. It’s not. You either work for a long time at it, and finally you have enough traffic to make some money, or, you do like you did, and get lucky with a few submissions to Digg.
I think I am being realistic. I said that blogging requires substantial and on going time commitment. This blog is not my biggest money maker. I have other sites that are bigger and more profitable. And they didn’t get there because of some lucky digg submissions. Digg is just a ramp. It’s still up to you to keep it up after the Diggs are gone.
The only limits are those you place on yourself. If you can’t see yourself making the same income level as a Shoemoney or Problogger, then it’s a 100% sure bet that you won’t. It’s a sad but true fact that the biggest barrier to success is looking at you in the mirror.
haha, well said. blogging is a job in and of itself.
I started this blog for fun with no expectation of making any money from it. I think that’s a big reason for its success.
that never makes sense to me, because you dont expect to earn you do, but when you set out to earn you dont! explain!
It seems like the people that make the most at blogging didn’t start out to make money. Hmm, what about all those “make money from blogging” ebooks. They could learn a few things from your philosophy John.
Passive income is the new economy. While there will always be work-for-pay jobs, almost every entrepreneur today is making money on the web 24/7.
Nothing to do with this post … but what the heck.
When are you going to stay at one of these places and share the details.
http://www.hotelscheap.org/articles/celebrity-hotel-rooms.html
Thanks.
Dave
Ethan, while I agree that having false hopes (thinking that everything is a piece of cake) will only result in a harsh reality check down the road, the “only a few lucky ones succeed” mindset is not something I’d recommend. As long as you have a solid business model as a foundation and the patience to build upon it, it is only a matter of time until you will be rewarded.
Alan Johnson
John Chow,
I think you had covered already making money through advert. is there any good example through internet trading?
-krazl-
http://www.krazl.com
I love some lucky income by blogging some blog contests!
Check out MyBLogContest.com and earn some lucky money today!
haha at least say something productive
John, lets make a bet and see if you’ll still make money even after taking 2-4 weeks break with no posts. I’m sure you’ll gain the same amount of money!
-Mike
He would most likely still make money, even if he takes a month off (he would still have visitors from blogrolls and all sorts of other links pointing to the website), but he would definitely earn considerably less.
Alan Johnson
I Like Passive income
I like passive income too.
Totally agree on the points mentioned. People need to understand the barriers to entry for certain markets and have a plan on doing so before entering otherwise they will fail, which is a result of alot of bloggers in the blogosphere.
I’m pretty sure people get holiday pay too
Everyone sure like PASSIVE income…
That was a very good post John.
There are no such thing as limits (I am a track & field coach) but then again, you can’t expect a Donkey to win the Kentucky Derby!
Passion rules!
Hey people,
Passive income sure is very seductive to people…
1. You get paid even if you don’t work.
2. This kind of income can be inherited to next generation.
But I would prefer passive/residual income that can increase at an exponential rate. Perhaps like network marketing. Borrowing people’s time and effort to monetize a product. Blogging is a good way to earn advertising fee and/or affiliate referral commissions. But one blog will make the webmaster rich for $xxxx amount of money. Suppose there is a network of blogs owned by different people, pooling all resources and effort togther. Would there be an effect similar to network marketing ?? Anyway, I’m daydreaming in a hot afternoon… haha
I think making money from one’s blog is any day better than a regular job. You don’t have to worry about getting to work on time nor do you have to listen to your boss. You’re your own boss and the only person who can tell you what to do is you.
Blogging is a definitely a full time job.You have to research, write and then track the users and answer their comments.Very active income
You keep on getting people to blog. Blogging is fine if it’s for your own salary. But when you are thinking of a business, that runs on its own, you have to go further than blogging.
And not all bloggers succeed, even after so much effort. Your success, if noted, from Alexa pagerank is based on your network of friends which you already have. But most bloggers do not have that.
And not all Internet Marketing gurus are into get rich quick schemes. Sometimes, the systems in place are so powerful, you make money passively, quickly, and it adds up even more quickly. So please, we are not scheming, and it’s like buying stocks. Just because you made a killing overnight, doesn’t make it a get rich quick scheme.
Mo
I have to agree with you John. It’s a great feeling when you make money while you sleep or you celebrate sg with your family.
I have a feeling that as time increases, those who have embraced revenue online will come out better in the long run.
The effort and time required are minuscule when compared to working in the job market.
If you are doing a job then whether it is online or off line you can not earn passive income. Only the business owners (online or off line) earn the money even they are not working or sleeping. John is not doing a job he owns this business.
Best things in life are unexpected.
Mo Rich,
There is more to blogging than just generating income from your blog. As a blogger, you are creating a brand for yourself as well as your blog. Let’s face it, if people know you then any project you start stands a much higher change at succeeding. As such, a project from a well-known blogger automatically receives a head start compared to a similar project launched by a person who does not yet have a brand associated with his/her name.
Alan Johnson
It’s easy to see why blogging is such an attractive business. As a matter of fact, I currently work for a print shop and the lack of business right now is costing me hours left and right.
I’m fairly new to the blogging scene, but i can tell you, I see us right there with you, Problogger, Shoemoney, etc. I know it takes time, and that’s fine. But we really enjoy it!