It does sound better when you say “I’m making a $75,000/year salary” than “I’m selling my life hours for $36 each”.
At no surprise, you probably get that most of them are in their 20’s or 30’s. Some even started as early as the age of 15. But the question is how they have become so tremendously successful at young age; while a majority of us are still in the field fighting days and nights, struggling from paycheck to paycheck for a living because of minimum wages.
While under the current condition of this economy, college graduates are also having a hard time looking for job in their career; many online bloggers and internet entrepreneurs are making as much as $5,000 to $40,000 or even over $100,000 per month. That includes plenty of sleep, meal, vacation and relaxation time. Nice, right?
The path to create a successful auto-pilot passive income might seem intimidating but all it takes is patience and hard work. All those entrepreneurs are the kind of people who’d work 80 hours a week just to avoid 40-hour job. However, at least you know for sure that the end result depends solely on your own effort. Not your boss to judge, not your co-worker to interfere, nor your family to distract you.
So to answer the most unanswered question “How do someone make $8,000 a month by staying at home?”, I got you this lengthy article to explain how everything was done. And also because I have done it as well.
It’s in the number
First, you have to understand the way money works. By understanding how it works, you know how to use what you already have to make it works for you. Just like the saying : a penny spent is two pennies earned. If you have two pennies and you use one, you will have to work twice as hard to get back the penny spent as well as earning a penny more for savings.
So like the early stage of most successful entrepreneurs, try this question : how much salary would you think you have to make for a happy life? Is that $50,000, $80,000 or $100,000 per year ?
Personally, I’d love to pick $75,000 because the number looks about right on average for a decent life style. That should leave plenty of room for a dream house, a dream car and a happy family of four. In order for me to make $75,000 in twelve months, I will have to find a job and employer that pays at least $36/hour and I have to work 40 hours a week for the entire year. That is 2,080 hours (nearly 90 days) of my life that was spent to make someone else a lot richer. It always sounds better when you say “I’m making a $75,000/year salary” than “I’m selling my life hours for $36 each”.
Now as an online entrepreneurs, it might be a little different.
Say, Paul has a website about martial arts because he loves to share his passion about martial arts and its profound philosophies. He writes a lot of articles on different subjects once or twice a week because the subject is his passion and he knows much about it. He shows people how to train different martial arts styles effectively, tricks and tips for a healthy life, how to be a ninja and how to do the one-punch like bruce lee, etc…
One pretty day, he decides to consolidate some of the already published topics that he has been sharing throughout the year, all into an ebook called How To Break Bricks and Heal Yourself Using Powerful Qi Energy.
He starts to offer it on his martial arts website for only $29.99 each. Since the website has been up for a while, it already gathers a respectable number of readers around the world.
How many of these ebooks will Paul have to sell to make that $75,000 now ?
Only 2500 counts.
Got it? Paul only has to sell the virtual ebook file to 2500 people out of 7,237,858,593 people on earth to make his first $75,000.
It is not a hard-cover in a library therefore Paul does not have to pay someone to print the book and put it on the shelf. Paul does not have to split the check for anyone else. He gets 100% commission of his own work.
Let’s put it into some perspective. Is it really difficult? Do you think he’ll make any sale at all? Do you think he cannot find the little fraction of 7 millions people on earth to buy his great and informative PDF book?
Even if Paul gotta look into reality and face the fact that more than half of the population as those who cannot access Internet, teenagers, kids, babies, elders, or those who are not interested; he still comes out with very strong number of readers who want to break bricks, or be like a boss who can break bricks and heal people. 2,500 people.
When the ebook has become a little success — since the sale count can only go up as long as the website is online — Paul can spend more time doing what he likes to do.
Paul only has to wait for the next 1500 people to purchase through his website to earn another $75,000. But hey, the number game does not stop here. Since his 2 of his ebooks are there and available for purchase for the rest of his life, he does not have to work another day besides checking his bank account occasionally in case it’s full.
Why? Because the 3500 people who finds the products helpful will more likely to recommend it to their friends. If assuming, a third of 3,500 people only tell a friend or two, that will bring another 2,300 people to the table. And that 2,300 will soon turn into 5,700 and more. That happens on Youtubers pretty often these days, isn’t it? Like that hydraulic press lately.
Mathematically, it should be at least 12,000 at the 3rd level of words of mouth. Which translates to $600,000. The same thing applies for the first book as well. So we get down to the real question:
Is it better to spend 2,080 work hours to earn the $75,000 salary from his job OR spend a month or two to focus on a subject that you love more, and at the same time turns that into a life-time profit by giving the world more great information ?
Back to Paul’s martial arts website. What if he wants to take a step further and get involved with local businesses? For example if you read a magazine occasionally, what do you see from 30% of the content? It’s the ads. Why? Because any, if not all, businesse want to be heard, be seen and be able to draw more customers everyday.
Now with that in mind, Paul sees the opportunity to provide his readers a convenient way to look for local, good quality martial arts schools based on zip code at the same time increases the authority and value of his website. Since the website is very popular and there are thousands of visits everyday, Paul contacts local martial arts schools to offer the benefits his website can bring; as well as how Paul can help both the students and masters to get to know each other.
He puts up the school location, the style, the hours, the intuition, the philosophy its follow, etc…on the blog with a small contract fee of $10 a month. Here I’m going to let you think how much money Paul can make out of this strategy. Go for a quick guess maybe?
Let’s say Paul can find at least 3 schools per county in a State because he’s sometimes lazy (that’s a point of staying at home and earn money!). There are roughly 3077 counties in the USA which results in an estimate of 9231 schools. It could be more or less, more in some crowded areas and less in others. But we use a approximate number for this equation, since opportunity has no limit.
Now when Paul charges $10 per month to 9231 schools that he has successfully earned the contract via serious phone calls and visits to the masters.
$10 x 9231 (schools) = $92,310 per month
If he raises the cost to a standard ad price of $19.99 :
$19.99 x 9231 (schools) = $184,528 per month
If he sets the cost above the common belief, say $99.99; just because he is confident that his blog will deliver more than what it asks for, but still cheaper than on Huffingtonpost or NYtimes website :
$99.99 x 9231 (schools) = $923,008 per month
Those were some examples of making money on the Internet. You see it is a lot of effort Paul has to commit into the blog before things start to blossom. However, the reward is well worth it and Paul just does what’s best for the audience, himself and those who want to learn Martial Arts.
You do not necessarily have to sell ebook or anything to create a passive income for yourself.
There are other even more fun and easier ways, too; but they do require a lot of effort and writing to make it happens. You don’t like to write? Do you have an account on any social networking websites to share your thoughts with friends and people around you? You can turn that to something that pays. Check out some stories of many successful internet entrepreneurs at Local Success.org.
Every life fights an untold battle and everyone has a special talent or experience. I can guarantee you I don’t care what it is or how silly it is, some of those 7 billions individuals will find it great and love you for what you are and what you gives. The power of world wide web has opened a whole new opportunity that could never be possible before. On the Internet, suddenly everyone is on the same level field and everyone has the same opportunity to be successful. It is the ability to adapt, stand up and stand out from your comfortable zone.
To know the road ahead, ask those coming back.
Are you afraid when you don’t know what to do or where to start this online income thing ? Do you think you are too young or too old to learn how to make it happen or you don’t even bother at all ?
Well, once there was a little baby who did not know how to walk. She could only crawl on the floor, and the world from her eyes was a beautiful playground, full of mysterious places. She wanted to go faster to explore all the colorful things around her. But as she crawled faster her knees hit the floor harder, and it would hurt.
Then one day she tried to stand up on her feet so it doesnt hurt anymore and she can reach further, that also was a lot more fun. However, she fell again and again because all these movements are strange and unfamiliar. No matter how many times it happened, it didn’t stop her. Even though the baby girl does not have knowledge of how to walk, that didn’t bother her so much.
Little one does not see it as a challenge, nor a task or a need. Not even a lesson. She does it because she wanted to grab a hold of that colorful flower on the table, to reach out for her milk bottle on the sofa easier or to visit Mr.bear where mom left on other side of the bed last night. She did not know how to give up was.
You were once like that. Were you not?
As people grow older, we begin to see the world differently. We find more doubts and risks from many things in life. It makes us want to be safe and do things that we are comfortable with. We were taught to go to college, get a degree and then find a secured 9-5 job that pays.
If you always follow the classical pattern, you are understanding the routine, the tradition, the shadow – you are not understanding yourself.
One day you realize that all the education, all the advice you were taught have helped you tremendously to be a good employee, not the employer. To be a worker, not an owner. To make others richer, not yourself. To help their family and forget yours.
When you must trade the hours to have someone signs you a paycheck, you are still in the rat race that everything about life means to you is to set the alarm at 7AM in the morning and work hard to find your way up the ladder, to pay for the bills that also grows along with your salary. You neglect your dreams, your family and maybe someone the little you used to dream to be.
I have seen a lot of successful people on the internet and they were just like any everyday person you would meet. They happened to see the opportunity and knowing that it would take them far away from their comfortable zone, they did not hesitate to lay their first steps.
And from that moment forth, they have found their dreams.
Did they invent the time machine and travel back in time to find the winning lottery number or something?
No, not even close.
Neither they made any rocket surgery discovery, or anything that required a genius IQ or even a master degree.
It is not a get rich quick scheme you have seen in Multi-level Marketing or Pyramid scams nowadays. These people do work really really REALLY hard on their own and for themselves at the beginning of the journey, before they can even catch a glimpse of the rewards far ahead.
They can make it happen because they have the passion in what they do, the mindset for success and the love to change the world as they know it. Most importantly, they did not give up. Even Steve Job would tell you that..
Stay hungry, stay foolish.
Now you probably understand how money works on the Internet and you are also prepared for the task. Do you know what to do? Do you still wonder how people earn so much online ? Let’s pause at that for a mere second to guess. I’m sure you can easily think of at least couple to dozen ways someone can make simple cash right out of the cyber world (legally).
For example, mom can sell her old air purifier on the ebay for a few bucks; dad can post his local business online to attract more customers and brother can sell his hard-earned item in WoW for a pretty sum of cash. Worse case scenario, your sister sold your collectibles pokemon figures and now she is rich.
But you have to admit it is no way of a long-term business. What can you do differently to get a different result ? This is how people start an online passive income…They ask themselves.
First and foremost, you will need to have a website, a blog to present yourself and your content to the world (no, not Facebook!). This is your online homepage. You can write or share anything you love here. Typically, you can obtain a free blog at WordPress.com or Blogger.com and begin your story there.
You can also pay for your own host with your own domain like Custom PC Guide .net but that requires an initial investment. The whole cost for me to get this blog up and running is $45 to get hosting service with JustHost. I’m using WordPress as the back-end and it is pretty good for a free content-management system.
Now when your website picks up, there will be a lot of people to follow you and listen to what you say (provided that you have deliver quality words, not smack talk or rants). Soon, you can begin to monetize it. And that is exactly when the passive income story starts. I know this sounds a little vague at first, but I’ll lead one or two examples so we can get to the same page.
Tony likes to take pictures. He has this strong interest into photography even though he has not taken any class about using the camera. Most of the time he just points and shoots, but some pictures come out nicely. He posts those pictures on his homepage and brags about them to his friends.
Then people start to ask Tony what camera he uses and where he takes those pictures.
Tony decides write two notes about the camera he uses and the locations he usually goes to for those beautiful pictures.
One the first note, Tony explains he figures out each function of the camera and shows people the simple way to use it for the best shots.
He also inserts an affiliated link to the camera on Amazon website in case if anyone likes to get a hold of it.
Tony aims to help his friends with the nice tips he learned from the hands-on experience with the camera. However the topic now not only benefits his local friends, but as well as other young people around the worlds who also find this very interesting because the whole photography thing seems easy to follow and right down-to-earth. Lexi, a friend of Tony, wants to get the same camera to do what Tony does. Thanks to the link Tony has provided, she now can buy it without any hassles.
On the second note, Tony points out “10 beautiful lakes, romantic parks and wonderful natural waterfalls you must visit before you die” that he has visited. He even tells the exact hill he stands on to take the pretty sunset picture or the roof he was on to get the shot of that girl. Everyone likes this topic a lot and they start to suggest more locations such as the delicious Bubble tea shop, the Myrtle Beach in South Carolina or Ocean City in Maryland, etc… This page becomes a most talked about article he has ever shared because all his friends loves to go to places.
You probably wonder where and how Tony earns all the money from ?
On the first note, he does it with the affiliated link to Amazon website. Anyone who buys the camera Tony has through this link on Amazon will earn Tony a small commission (between 4% to 8%).
This program is called Amazon Associates that allows you present a product from Amazon store on your website and get a bonus if you someone buys that product through your link. As you already notice, Custom PC Guide .net makes use of this affiliated method because it is not intrusive and fits our category. It also provides a convenient way for purchases; while it helps our editors cover the expenses on host and researches.
Even though the commission looks very little, you have to remember the way money works that we have learned earlier. If the camera is $400, on the average of 6% per sale gives Tony $24. Do you think some 1000 people of 3.5 millions people on the Internet finds his expertise on the camera is helpful ?
I’m pretty sure more than once, before you made a purchase of something after you looked up the reviews on the Internet, didn’t you? What if you find Tony’s review on the camera is exactly what you have been looking for and it somehow becomes the final kick that pushes you to place the order. This is where the number game comes in again :
But how hard does Tony have to work to earn that much ? I say less than a day to write that article.
$24 x 5000 = $120,000.
Now on the second note that he wrote, Tony does not have any affiliated link because the nature of the post. You cannot sell locations (duh!).
Instead, Tony engages readers into third part ads such as Google, Infolinks, etc… He displays a little Google-powered banner on the side that is content-relevant. That means when the topic is focusing on places and travels, the ads appear with exciting hotel deals, couple for local restaurants, special offers from theme parks, etc..
For every click the readers made by their interest on the ad, Google pays Tony. While this earning is not fixed, it is not easy to point out how much Tony can earn from Google. However, it is known that Google Adsense program has made more than a hundred millionaires out of the blue. Here I assume Tony gets a low pay-per-click dollar, $1 each. On other hand, because this topic is ultimately viral, his 400 friends on Facebook keeps talking about it, share it with other friends and say, 1/3 of that number of people click on the ads to find out about the cool stuffs it offers.
That is $132 per day or per hour for Tony, depends on the occasion but let us just be realistic and assume it is earning per day.
$132 x 30 (days) = $3960
$4092 x 12 (months) = $47520
But how hard does Tony have to work to earn that much ? I say less than a day to write that article before it becomes viral.
That is not to mention some click can worth a lot more, even up to $10 each. In other words, the revenue does not cease to grow. As long as Tony has his blog up and running and continues to add more fun topics for his friends and audience, Tony is on the right track to a successful life doing what he loves and at the same time makes a hell of living income.
Another example for the rest of your popcorn is about Andy and his gadget facebook fanpage.
See, Andy loves R/C Drift cars and he loves Lego and he also loves Meme stuffs. Andy opens a facebook page to connect with others who have the same interests. He passionately talks everything about R/C Car drifting techniques and tips. He is also a fan of rare Lego character collections or unique custom Lego builds such as Starcraft Siege Tank, Transformer Autobots, Halo Banshee, etc.. Andy also finds a bunch of ideas for funny Meme T-shirts. All these subjects are presented on his facebook page when Andy has a free time.
It does require Andy a lot of time on hand but he works on it because it is his hobby and he sees fun from doing it. He masters the art of R/C Car drifting from the noob level. He learns things both the hard and easy ways thus this experience gives him the opportunity to talk to the mind of the new person who wants to learn more about R/C Cars. People trusts his recommendation when they see Andy posts awesome Youtube videos about him having so much fun with these R/C cars. It’s a great hobby.
Would you be able tell now where Andy earns his money from in this example? I bet you could.
But did you know that Andy also gets paid from his Youtube videos ? It is Google Adsense, delivering an ad that plays at the beginning of the video. All the stories you have read meant to show you that there are smarter ways other than the traditional jobs to make a living, by doing things that you love and at the same time brings great benefits to your readers, make it count.
When you put the passion and dedication behind every reason to make everyone’s life better, you have become the true entrepreneur. Wonder how an entrepreneur starts in today tech life ? Check out a few inspirational success stories at Local Success.org.
Whenever you think you can..or you can’t, you are right.