I got burned the other day pretty bad on a new passive income stream that I was testing out. This new idea came to me after reading a post on a different blog, which I won’t publicly disclose. The information I read in the article pointed out a new way to make money through multiple affiliate programs using arbitrage. The concept seemed simple and easy to implement.
According to Wikipedia, arbitrage is “… the practice of taking advantage of a price differential between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices.”
As I have a ton of respect for this blogger, I decided to give this new method a try. Within hours of reading the original post, I had setup the necessary accounts and affiliates required for my test. I set aside $100 as my budget to spend, with visions of the income that would just come pouring in. After all, this other blogger was making a ton of money off of this new method – so why can’t I?
The Problem
After about two hours into my new test, I started feeling a little unsure about what I was doing. I had a gut feeling that something wasn’t right, so I immediately canceled the ads that I was placing throughout the online world. I realized that I had simply been paying to send out a bunch of spam and turned into one of those people I despise who are consistently pushing out junk.
With about $10 lost to my test, I felt a little better that I stopped my campaign before it got any worse. That is until a few days later. I received a communication from one of my affiliate providers stating my account had been frozen as a result of the spam I was sending out. DANG!
Working to Build Back Credibility
The affiliate provider that temporarily suspended my account, sent me a communication stating that I needed to prove my intentions. They wanted to know if I planned on using their services to send out spam or for legitimate methods before they would allow me to to use their services again. I am now in the process of trying to explain myself and prove to them that I am serious about earning legitimate income from their services.
While I haven’t earned a huge income from this affiliate to date, it is an eye opener for me. I could have avoided this hassle if I would have just read the program guidelines before testing out this new idea.
Blaming Myself
Sure, I could get mad that I picked up a bad tip from the post I read and blame someone else. But that wouldn’t be fare to the other blogger, nor would it teach me a lesson. I blame myself for not doing my homework and reading up on the rules of my affiliate account. Looking back, all of the guidelines are clearly laid out stating what their affiliate links can be used for. If I would have completed my due diligence prior to testing out this new idea, I would have been fine.
I Read it on the Internet, so it Must be True!
I still have a ton of respect for the blogger who posted this arbitrage idea. The tips that I have picked up from following this blog over the past year are truly priceless. I will continue to subscribe and follow the site, picking over new ideas and ways to build income.
All that being said, I cannot ignore my mistakes and must learn from them. It just goes to show you everything you read on the internet may not be completely true – even from those you really respect. Taking responsibility for your own actions is the only way to be successful building passive income. Look for new ideas from others, but ALWAYS do your homework and take responsibility!
Final Thoughts
The point of this post is NOT to scare you away from picking up new ideas from others. I actually would recommend following the ideas of as many people as you can. Every idea and thought has the potential to be a profitable income stream. Picking up ideas and learning from others is a valuable tool for being successful building multiple streams of income. Just be sure to do your own research before you jump in head first with a new idea!
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{ 1 comment… read it below or add one }
Very wise advice, and like everybody seems to append to their comments on the stock market forums I go on…D.Y.O.R. (do your own research).
Having said that, I certainly offer you kudos points for moving so fast on a ‘tip’. I’m a bit of a ‘due diligence nerd’ and spend ages pondering before I act on new lines of residual income – I wonder how many times I’ve ‘missed the boat’.