Passive Family Income » income streams

Passive Income Results – August (2010)

John S. — Fri, 03 Sep 2010 11:34:19 +0000

What a hot summer it has been here in the southeastern portion of the United States! We registered our two highest electric bills since moving into our home over 2 years ago. The increase was a direct result of record high temperatures in our region along with several house guests who came to visit this summer. Hopefully the cooler weather that is on the horizon will help us get back on track with lowering our monthly expenses.

As the kids start back to school and football begins, it is time to report out my August passive income earnings. The past month was spent reinventing PFI by getting back to the basics of discussing the goals of how my wife and I plan to become financially independent. By paying down our debt, adopting a more frugal lifestyle, and creating multiple streams of income – we feel that we can eventually reach financial independence. As each month progresses we plan to continue to make progress towards our ultimate goal.

Here are my results for August.

Niche Sites

I have not spent a lot of time on either of these sites recently, but I also didn’t completely abandon them either. As I mentioned last month, Niche Site #1 has been turned into an article directory. I spent a total of about 30 minutes working on the site proofreading and approving posts that other writers submit. If the income grows overtime to even $25 per month, I think it will be worth keeping it going.

My second niche site is starting to earn enough income to cover the costs of running it each month. I have been building some external links back to the site which is somewhat encouraging as I am seeing my content start to climb in rankings on Google. I plan to just keep adding more and more links when I get time, but I won’t stress over it either.

Here are my monthly income results for the two niche sites I maintain -

Niche Site #1 – $ 2.61
Niche Site #2 – $ 9.37

eHow

My monthly eHow earnings dropped by (7%) in August compared to the prior month. This type of movement in earnings has been consistent since I stopped writing content there back in March of this year. Since I am not adding any new content to the site, my income has ranged between $150 and $180 per month in pure passive income.

Here are my eHow earnings results from the past two months.

August (2010)
- Earnings – $166.90
July (2010)
- Earnings – $179.60

GRAND TOTAL eHow EARNINGS (24 Months)

Earnings – $3,024.38
Articles Published – 270
Articles Moved – 7

Over the past couple of months I have removed a total of 7 articles on eHow that were not making any money. I revamped the content in these articles and published them elsewhere. I did not remove any new articles in August from eHow, but will continue to monitor my lower performing content as time goes by.

High Yield Interest

Last month I reported how I was working on building a CD ladder through our credit union that could start earning passive income. I am happy to say that all the CD accounts have been opened and I am now earning some significant income. It is important to note that my wife and I had this money invested in several CD’s that were just not earning very much interest. Since switching over to our credit union, we are now earning a much more competitive rate.

Here are the results of interest earned from our CD ladder as well as some from our high yield savings account.

High Yield Interest

August – $80.34

I hope to discuss more about building this CD ladder in future posts and highlight some goals that we have to grow this income stream.

Web 2.0 Tools

Web 2.0 tools have always been a part of my overall plan to build alternative income streams. While the income is not huge, they still provide some earnings each month. I hope to start adding some more content on Info Barrel this month to increase my overall earnings as well as drive traffic to my sites.

Here are my monthly results.

Web 2.0 Tools

HubPages (AdSense) – $6.37
Info Barrel (AdSense) – $3.87

Web 2.0 Tools TOTALS – $10.24

Passive Family Income

As I mentioned earlier, I have started to focus more on reinventing this site. I will continue to work to build this site by focusing on my experiences working towards financial independence. In the meantime, I will try and earn a little income along the way when I can.

Here are my results from the past two months on PFI.

Passive Family Income (AdSense)

August – $8.61
July – $10.93

Passive Income Totals

The majority of my documented results are forms of passive income. However, there are some activities such as writing for this site that are not passive at all. In some regards, these figures are more like my alternative income totals.

GRAND TOTAL August – $278.07

September Outlook

During September I am actually going to work on building my CD income (even though rates continue to remain low) as well as work to build up enough money to start a dividend paying stock portfolio. One such way to get this capital will be to start writing freelance articles. This activity is definitely not passive but will allow me to earn additional income doing something I really enjoy.

Have a wonderful September!

How are your passive income results for August?

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How to Find Freelance Work

John S. — Tue, 17 Aug 2010 11:42:18 +0000

Picking up freelance work can be a great way to earn extra income. The money earned from these type of gigs can be used to help supplement your current income, pay off debt, or build passive income through a high yield investment. As the job market continues to feel the pain of the global recession, freelance jobs are becoming more and more critical.

With employers still reluctant to hire full-time workers and employees lack of trust in most companies, freelancing can offer some financial security. As this trend continues and as technology makes it easier to obtain freelance work, it is hard to ignore this potential income stream.

If you are interested in finding freelance work, here are 3 places you can start looking for opportunities.

1. Freelance Websites

Technology has opened up many opportunities for freelance work that were just not available 10 or 15 years ago. On the downside, it has also increased competition for freelance jobs and introduced foreign competition. Websites like oDesk and Elance provide a place where those looking for freelance work can bid on open jobs posted by employers.

Some of the more popular forms of freelance work posted on these sites include – website design, technical writing, blog and article writing, software development, graphic design, and much more. If you have any of these types of skills, you may want to start checking out a couple of these websites.

2. Former Employers

Former employers can be an excellent place to find freelance work, provided you left on good terms. A previous employer may be inclined to hire you back on a contractual basis to work on a project or specific set of tasks. By hiring a former employee, the company saves in training costs and understands the type of worker they are paying for.

I recently completed my first paid freelance assignment through a previous employer. My former employer actually contacted me for the job, as they felt I had the skills and prior knowledge of the work that needed to be completed. The employer saved money as I began working on the project immediately while I added a profitable short term income stream to help out our finances.

If you are looking to earn some extra income, then I highly suggest contacting a former employer to see if they have any freelance opportunities.

3. Networking

Networking is one of the most important tools used to find freelance work in today’s economy. Social networking sites like LinkedIn create an environment where freelancers can network with potential employers for future freelance work.

The nice thing about sites like LinkedIn is that they can be used at no charge to promote your services and skills to potential clients. Some freelancers also leverage popular sites like Twitter and facebook as another way to advertise their services at no cost.

I have received a few inquires about potential freelance job opportunities just from my LinkedIn account. While the timing did not fit with my schedule from these opportunities, I am planning to leverage this tool to find other freelance work that may become available in the future.

Final Thoughts

The traditional work environment is changing from what it once was. Most people I know from the baby boomer generation stayed employed with one company their entire careers before retiring. That just does not seem to be the case anymore. Whether it is the poor economy or improved technology, the trend of earning an income from freelance work is growing.

Freelancing is a great way to start a side business or begin a full-time job on your own. As the economy continues to struggle and companies are hesitant to hire on full-time employees, freelance opportunities will continue to grow. Employers who need specific jobs or projects completed are turning to part-time help to get by until they are confident of hiring again.

Now may be the best time to start considering adding on freelance work as a new income stream. I know that I am exploring several opportunities in this area to help supplement my income and work to become financially independent once and for all.

Do you pick up any side freelance jobs to help supplement your income? What other places can you suggest to find opportunities for those starting out?

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What is Passive Income?

John S. — Wed, 11 Aug 2010 11:45:49 +0000

What is passive income? There are many different definitions that are thrown around depending on where you look. Some critics argue that there is no such thing and that anything claiming to be must be a scam. On the other hand, there are a large group of people who misinterpret the terminology and claim anything earned online is passive. The real definition fits somwheres in between these two extremes.

Let’s check out a few well respected online sites to get a better understanding of what some of the experts are saying.

The Simple Dollar says that it is – “… any source of sustained income that you earn without any additional work.”

Wise Geek states that these earnings are “… a type of income that once setup, requires no further input from the recipient.”.

Moolanomy definition states “… This is the opposite of active income. Once you stop spending time on these income sources, the income flows don’t necessarily stop. Of course, there are varying degree of passitivity and it’s desirable to have highly passive alternative income sources.”

IRS Definition

The United States Department of the Treasury has it’s own classification that is probably different than what you have heard in the past. According to the tax classification –

Passive income can only be generated by a passive activity. Just because the taxpayer did not work for the income does not mean it is passive. There are only two sources for passive income:
1. a rental activity; or,
2. a business in which the taxpayer does not materially participate.

The federal government goes on to say that the following types of income cannot be considered passive -

Interest Income
Dividends
Royalties
Gains on Stocks and Bonds
Annuities
Lottery Winnings
Salaries

Definition of “passive” & “income”

Take a look at the definitions of what the words “passive”, “income”, and “passive income” mean according to Dictionary.com –

passive – “not participating readily or actively”

income – “the monetary payment received for goods or services, or from other sources, as rents or investments”

passive income – “Earnings an individual derives from a rental property, limited partnership, or other enterprise in which he or she is not actively involved”

The Passive Family Income Definition

It is absolutely necessary to honor and abide by the IRS classification of passive income for tax reporting purposes. However, that does not mean that we cannot consider dividend or interest income as passive for example. Regardless of how the income is classified for tax reporting purposes – a passive form of income requires less of your time so that it can be used on something else.

Here are 3 traits that can help clarify the definition listed above -

Upfront Investment – An initial upfront investment of time is required. There is no such thing as a get rich quick method for creating this form of cash flow stream. Instead, it takes an initial investment of your time to build a successful and sustainable passive income stream.
Limited Participation – Once a passive income stream has been established there is still some limited participation required. While the level of participation may vary, it is virtually impossible to completely ignore this type of income stream. The key however is that this type of income does not require full time participation by you.
Potential for Recurring Income – Creating passive income has the potential but does not guarantee continuous recurring income. Once the initial time investment is made, the income stream has the possibility to earn income over and over for years to come.

What is your definition of passive income? I would love to hear back from you and will consider adding your definition to this list (positive or negative).

Originally posted 2009-06-05 07:48:21. Republished by Blog Post Promoter

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Create Passive Income by Writing for eHow

John S. — Mon, 09 Aug 2010 11:36:23 +0000

One of the latest passive income streams that I have started is writing articles for eHow. In fact, I just published my first article this morning on eHow. The article is titled How to sell covered call options.

I have always had a passion for options trading, which is also on my list of passive income streams. Recently, I have been asked by several readers to write some posts on my experience trading options as an income stream. I thought that this article would be the logical choice for my first attempt at writing for eHow. If you get the chance, take a look at it and let me know what you think.

Writing articles to earn income is something that I have been doing for some time on PFI. I have written several sponsored posts in the past few months for SocialSpark and PayPerPost. I have had good success in writing articles for both of these social networks to date, and have earned a decent amount of income by writing these posts. However, one of the downsides of writing articles for these social networking sites is that you don’t get to choose the topic and must follow the guidelines laid out by the advertiser. While I try to select articles that fit with the overall personal finance theme of this site, it can be difficult making it work.

In addition, once your posts have been approved, you get paid once. Since these advertisers will not allow you to put any other 3rd party advertisements within the post (such as Kontera), you are limited to one payment for your work, which is not passive at all!

Writing for eHow

There are two aspects of writing articles to generate income on eHow that I really like when compared to SocialSpark or PayPerPost. The first item is that you get to write about what you know and like. Take my first article I mentioned above. I have experience trading options and really like to talk about it, so I wrote an article about how to use covered call options to generate income.

The second item is that you have the opportunity to get paid over and over. I consider any article written on eHow as a residual income opportunity. While you are not guaranteed to get any payments for your work, you do have the opportunity to get paid for your work many times depending on the popularity and demand of your articles.

Update (08/15/2010) – Please note that since this original article was posted, eHow no longer accepts any new writers or articles. Interested writers wanting to publish content on eHow must use Demand Studios.

Do you write for eHow, SocialSpark, PayPerPost, or any other sites that pay you for your work? What types of experiences do you have? I would like to hear back from my readers to get their opinions on this topic!

Originally posted 2008-09-05 08:52:54. Republished by Blog Post Promoter

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How To Earn Passive Income At Home

Timothy Ng — Thu, 05 Aug 2010 11:30:23 +0000

This article was written by personal finance writer Timothy Ng from Sydney, Australia. He is genuinely passionate about helping people compare credit cards and helping them through researching to find the best credit card.

In these tough economic times many people wonder how to earn passive income at home. When you consider the global economy, the growing job reductions, and the fact that a lot of companies are downsizing their operations to keep their business afloat it’s no wonder that we are looking for a better, and easier way to live. But it is easier? That of course depends on the income opportunity you pick, and how dedicated you are to your business growth.

Let’s look at some of the most popular options for home-based business opportunities.

Writing as a Freelancer

One of the quickest ways to earn passive income from home is as a freelance writer. There are a multitude of opportunities out there and finding paid writing work isn’t hard if you really want to work. The following websites can help you find work, or earn income as soon as this week:

Demand Studios
Demand Studios are the company behind the popular eHow.com websites. Powered by freelancers who work from home, the content on these sites is directly outsourced from DS to these writers. Earning good money is quite possible if you intend to work for these guys, the hardest part is getting accepted into their fold.

Having said this, it is worth an application because you earn decent money and based on your writing speed you can increase your income accordingly. The passive income stream starts once you employ writers in your team. Once you build up a reputation, and a good stream of steady work you can outsource some of your workload to other writers while keeping some of the pay for yourself – this is where residual income really powers up your income stream.

Hubpages/Squidoo
Both of these platforms are well known web 2.0 properties that allow you to set up web pages of yourself based on a specific niche topic. You can earn residual income by placing eBay ads, Adsense ads and Amazon ads on your “hubs” and “lenses.”

These sites won’t earn you a fortune overseas. In order to build up a steady residual income stream to make money from home you’ll need dozens of high ranking hubs and lenses. But having said this, it is very well possible to do this with some elbow grease.

Savvy marketers outsource the creation of these pages for around $50 and then do the promotional marketing to drive traffic – and income.

Associated Content
Associated Content pays you to submit articles. A lot of writers try to keep away from them because on first look you don’t get paid much for your work. However, AC has a clever payment structure, based on levels (clout levels).

The base payment rate is $1.50 per one thousand views. Once your clout increases through exposure, your income will go up. This can quickly lead to a good, steady income stream, especially if you write a lot of articles and then do some promotion to drive traffic to them.

Passive Income as an Affiliate Marketer

Affiliate marketing is a popular income stream. Sadly though, most people never earn a dime, despite their eagerness to do so. Successful affiliate marketing requires knowledge in search engine optimization, and the ability to drive traffic to your sites because the money is ALWAYS in the numbers. The more traffic that hits your site, the more sales you stand to make. It’s a numbers game, as so many other markets are too.

Affiliates market other people’s products and services through their websites and pages. You can become an affiliate for Amazon, eBay, or Tom’s jam shop down the road. Affiliates help businesses increase their revenue while earning themselves money (a commission) for their efforts. It’s a win-win situation, provided you do make this work for you.

Passive Design Income

Designers, and graphic designers have a huge opportunity at their feet right now as every Tom, Dick and Harry is looking to get online. A lot of income is being earned right now by savvy marketers who happen to be talented in the design stakes as offline businesses are looking to capture some of the online traffic.

Build Your Own Sites

If you have a knack for knocking out websites after websites that rank high in Google, then the best way to earn passive income is with your own sites because you keep all the money. Even better is when you can design your own information products and then sell them in a highly optimized sales funnel that will sell for you on autopilot.

Below are some of the popular platforms to build sites with:

WordPress.org
Self-hosted WordPress blogs are favored by many marketers because of WP’s in-built SEO capabilities. These blogs naturally rank very well and with some optimization techniques you can dominate your niche in next to no time.

Just install WordPress, add high quality content, publish and add your revenue streams.

Blogger.com
Blogger is a popular platform owned by Google. Due to its owners, these blogs usually rank well without having to do major promotions, especially if they are keyword optimized. Having said this, you risk losing your whole site network at a moments notice if you don’t invest into your own domains to host them.

People with no money tend to favor taking the free option where they simply leave their blogs with Blogger. Big mistake!

XSitePro
My favorite among the lot, simply for the fact that it is so easy to build sites with, update them with a few clicks and publish from right within the software. A hot contender for WordPress, this software also features great in-built SEO capabilities.

It takes a good plan, some hard work and dedication to build your business to a level at which you can consider outsourcing your work to start earning passive income. Remember, passive income is just that – other people do the work for you. You orchestrate and oversee the operation to keep control of it.

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