Passive income is a myth
The internet marketing experts would have you believe that you could setup a website, put a few articles on it and then enable adsense to get month over month income. This is simply not true. All websites and other online marketing ventures require a lot of effort to get started and continual effort if you want to make any profit whatsoever. For example about two months ago I started a online blog called Security Breach Online and I enabled adsense as well after about a week of semi-decent traffic for a new blog. So far that site has made approximately $50 USD in online revenue. This website is not passive although it does contain approximately 25 articles so far. Nearly every day I am there writing new articles, or submitting links to those articles on sites like reddit.com, facebook.com and linkedin.com to draw visitors in to read the content. If I am not writing content then I am checking statistics, moderating comments and thinking of new content ideas. All of this requires my time and dedication.
Passive income is defined as investments that work for you and generate reoccurring wealth. I have RRSP’s (401K) that generate wealth for me, these are reasonably passive, my bank account auto deposits more money into them and the interest in turn generates more growth.
Out of all the online businesses the vast majority wouldn’t be defined by this, the only one that would be close would be investing in crypto currency but even then you still need to be watching the market for dips to buy and rises to sell.
Types of Online Businesses
Online businesses are something that I will go into greater depth with in future posts but the ones I can think of off the top of my head are:
- Affiliate Websites
- Selling on Amazon
- Selling on Ebay
- Adsense informational websites
- Selling crafts on Etsy
- Crypto Currency
- Fiverr for selling your services
- Upwork for Selling your services
- Writing Ebooks
- Promoting other’s ebooks ie clickbank
- Running Private Blog Networks
- Creating a membership site
- Freelance writing
- Stock Photography
- Logo Design
- Creating Apps for Google Play, Iphone, Blackberry, Microsoft Store
- Product Testing
- Paid to play games
- Online Focus Groups
- Mystery shopping
- User testing websites
- Tech Support
- Teaching people to speak english
There are so many ideas out there however to be successful in any one of these ideas requires two of three things:
And probably a fourth thing would be motivation.
With Money and Time you can buy resources or even buy your own website resource. With Time and Effort you can start creating websites or YouTube videos or any other of the ideas listed above. However you will need continued motivation to succeed. Most people don’t get rich in this field by espousing their knowledge to others hoping to make a living online. I didn’t create this website to espouse my knowledge either I made it because I feel very strongly about how making online is not a passive income stream. In fact I am continually learning.
Online Marketing until now.
When I first started making websites with a goal to make money in 2010 the Internet was a very different place, the google algorithm wasn’t as tuned as it is now, you had to make sure you had an exact match domain in a reasonably high traffic niche and then you could just write any old thing to promote your “10 best Pressure Cookers” niche website. Some online marketers even setup auto blogs where bots would grab content that was related to their niche and auto write spammy posts that would keyword stuff their chosen keywords into the article to make it more favorable to the search engines.
These websites were dominating the top 10 results in all the search engines and people were making thousands of dollars doing this with little effort at all. Today there have been many updates to the google algorithm, some of which I have listed below:
- Google Hummingbird.
- Google Panda Update.
- Google Penguin Update.
- Google Pigeon Update.
The goal of the majority of these updates was to remove spammy domains from the listings and to make it harder for Internet Marketers to make money. In the past it had believed to be the case of the more backlinks that a website had the better its page rank would be. So programs were made to insert links into website comment pages and forum profiles en masse. This practice is still ongoing, a quick search of fiverr will show you that people are still willing to offer this mass backlink strategy for a small fee.
There are also tool changes, I remember back in 2010 tools were just starting to appear and most people could get by just using the free google ad words keyword research tool. Today there are many keyword tools. The best ones cost around $50 a month and for some reason are billed annually.
Am I too late to hop on board the passive income train
Absolutely not. The Internet is massive, and its not going anywhere. In 2010 there were around 2 billion Internet users. Today we are nearing 4 billion users. Also the amount of people buying products online is increasing year over year. In 2014 there was around 1.3 Trillion dollars spent online, and the percentage of online shopping to retail shopping was only 5.9%, in 2017 that amount has increased to 2.2 Trillion and 8.2%, and these numbers are projected to increase as more people get online and have access to online markets.
Are there still niches to create websites and products, of course, there are evergreen niches that will always have traffic, there are long tail keywords that haven’t been targeted, there are products that can be promoted. I use kwfinder for my searches and the free version allows 3 keywords a day to be searched, this tools is just one of many but it shows you up to 100 keyword results and how hard it would be to enter that space and potential profit.
As I said before, in future posts I will try and create some guides on how each “business” works, and some of the tools, resources and potential pitfalls that I have faced when trying them.