Passive Family Income » SMART Goals

5 Lessons I Learned in 2009 (and How I Plan to Leverage Them)

John S. — Thu, 31 Dec 2009 12:21:59 +0000

Looking back on the past year, I think I have learned a lot about building a solid passive income business. While I have had some success stories (i.e. building a solid eHow income stream), I have had more than my share of failures. Instead of fretting over failing, I like to think I can learn from my mistakes and leverage them into something good.

Here are a few failures that I have had over the past year and what I have learned from each one of them.

5. Outsourcing SEO

I decided to outsource a few projects during the past year to help accelerate my passive income. In one of my projects, I hired a virtual assistant to work on optimizing a niche website I started. The thought was to hire a resource to push my content higher up in the search engine rankings while I focused on other tasks.

Unfortunately, I acted too quick on hiring a resource to do this work and didn’t really have a solid plan in place. In the end, I spent a few hundred dollars and have seen little return on my investment.

I have actually started outsourcing again. However, this time I am taking my time planning things out the right way. All of the jobs that I plan to outsource will align with my SMART Goals that I have defined for the coming year.

4. Starting a Blogging Network

I had high hopes in 2009 to start a passive income blogging network. The plan was to form a group of 5 to 7 individuals who were focused on building passive income. The network was to serve as a tool for networking, communicating, and sharing ideas about building alternative income streams.

As I tend to do, I stretched myself too thin and this project fizzled. I found a group of talented and energetic people to form the network. We even picked out a name for the group and I actually purchased a domain name and setup the site. That is about as far as we got as the team lost any momentum we may have had. The leader (me) didn’t have the time to devote to organizing and setting things up the way they should have been.

In the coming year, I hope to stay focused only on the tasks defined in my SMART goal setting. Instead of trying to do too much, I will focus all of my attention and time on my goals.

3. Hiring a Coder

I have been using the “Thesis” WordPress theme here on PFI for well over a year now. I think it is an incredible theme that offers a ton of flexibility. The one problem that I had with using this theme is that a ton of bloggers are using it now.

My solution to this dilemma was to create a custom look to PFI that could be laid on top of the Thesis theme that I like so much. I decided to hire out this work to a coder. Unfortunately, I only got about 85% of what was agreed upon and the developer has not been heard of after they got their payment.

While I am happy with how the customized design turned out, I am very disappointed in not getting a final product. I have been fixing things here and there as time warrants. Bottom line – I will never hire another resource without checking there references first!

2. Not Setting SMART Goals

Looking back at my personal finance goals for 2009, it is amazing to see how vague they actually were. I had ambitions to “… create at least 5 new passive income streams …” and to “… bring in $1,000 per month by the end of the year in passive income …”.

All of my 2009 goals seemed legitimate and attainable. They were just missing one important thing – a plan. I had great intentions and aspirations to reach my goals, just no road map to get me there. I have changed my approach for this new year through SMART goal setting. I now have a set of goals in place and a plan to get me there for the upcoming year. I can’t wait to check back next year to see how I did!

1. Posting Content Too Often

For some reason, I had it in my head that I needed to write a post every day (or at least 5 times per week) on PFI. Overtime, I have come to realize that post frequency is not as important as the quality of your content. While I wasn’t purposely publishing questionable content, trying to keep that frequency didn’t allow me to show off my best work.

While posting every day works well for some bloggers, it doesn’t work well for others. If your a full time blogger, then it probably makes sense to get content out to your readers every day of the week. I am not a professional blogger (at least not yet) and shouldn’t force myself to stick with that type of schedule.

Moving forward into the new year, I plan to post to PFI three times per week (Monday, Wednesday, and Friday). While this could change, I have been experimenting with the frequency a little and am comfortable with it. I believe this change will help me spend more time creating better content for my readers, while using the extra time to focus on other income streams.

Final Thoughts

Well, that is it for 2009! It has been both a rough and promising year in the economy. Let’s learn from our mistakes from the past 12 months and make 2010 a year to remember!

What are your biggest mistakes from 2009?

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Why is $16.67 Such an Important Amount?

John S. — Wed, 16 Dec 2009 14:50:56 +0000

Why is $16.67 such an important number to me? No, it is not the price of my favorite bottle of wine. Nor is it the cost of my restaurant bill last night.

One thousand six hundred sixty seven pennies is the amount of passive income per day I need to earn to reach my goals. I just finished writing a recap of my SMART Goals that I plan to put into action over the next year. Those goals put into place a plan to build $3,000 in recurring monthly income over the next year.

The Numbers

So how do I get from $3,000 to $16.67? I plan to separate my passive income streams into 6 different categories (check out my multiple income stream breakdown for more details). Each of these income streams will be responsible for earning $500 per month in recurring income by the end of next year. Breaking down my overall target of $3K into several different buckets allows me to focus on the finer details and also forces me to create a diversified set of income streams.

Taking the $500 per month in targeted earnings for each income stream, I have calculated that I need to average about $16.67 per day in income. That translates into $100 per day for all 6 income streams combined. While earning $3,000 per month or $100 per day is very achievable, I prefer to use the $16.67 number as my target.

Advantages in Using $16.67 as My Target

By breaking down my income targets per day and per income stream, I am able to set very detailed actions that are required to earn that money. For example, if I plan to monetize one of my niche sites primarily with AdSense, then I will be able to determine how much traffic I need to get per day. While the numbers and calculations that I use are only estimates, it at least gives me a baseline of where I need to be. Overtime, the estimates can be adjusted accordingly based on feedback that I get.

Having actionable documented steps for each income stream is what it will take to build $3,000 in monthly recurring income. Without them, I would probably be jumping from project to project (as I have done many times in the past) with no clear plan or set of goals. All of the moving around from different projects stops now!

Daily eHow Stats – Why Daily Numbers Work for Me

Over the past several months, I have been able to track the average daily income I am generating from eHow. That has ranged from about $7 – $8 per day over the past couple of months. I also know how many articles I have written to earn that daily amount. These numbers have allowed me to accurately estimate the amount of effort needed to reach my goal of $500 per month (another 2010 SMART goal) with this income stream.

My eHow earnings SMART goal details how I will commit to writing 21 new articles each month over the next 7 months in order to double my income. Knowing that I need to write 21 high quality articles on eHow every month allows me to carefully plan my time, which is my most valuable asset.

Final Thoughts

I plan to begin tracking my other income streams, just as I have been doing for eHow, by using daily numbers. By doing so, I am making it easier for myself to set very detailed actions that need to be carried out. Without these detailed actionable items, I would put myself at a disadvantage from reaching my ultimate goal of $3,000 in recurring monthly income.

Do you set daily, weekly, or monthly goals? What do you find works best for you? Are you able to create actionable items out of your goals?

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SMART Goal Setting – Recap 2010

John S. — Mon, 14 Dec 2009 12:47:16 +0000

Over the past several weeks I have been publishing my SMART Goals for the upcoming year. In order to take my passive income business to the next level, I decided to layout my goals which will serve as a guide. I plan to review each of the goals that I set at the end of every month at a minimum. As time goes by and things change (as they always do), I will adjust my goals accordingly.

2010 SMART Goals

As a recap, I set 4 SMART goals for next year which I believe will increase my monthly earnings income as well as take my business to the next level. If you missed my goals before, here they are again -

My Plan to Reach $3,000 in Monthly Income

After publishing my final goal (generate $3,000 in monthly alternative income), I was asked several questions by my readers for more specifics. In some regards, my SMART goal to earn $3,000 per month in alternative income may not have been as specific as it should have been. As a result, I am going to provide some additional details on my overall plan.

While every fine detail has not been documented below, here is a breakdown of how I plan to hit that $3,000 mark by December 31, 2010.

Projected Income Streams

I have identified 6 income streams that I plan to focus on during 2010. In order to reach my goal to earn $3,000 per month in alternative income by the end of next year, I have broken down the total into 6 different categories. I have set a goal to earn $500 per month in each of the categories below.

Niche Site #1 – My first niche site that I plan to expand and grow has been live for about 4 months. I will focus a lot of attention on this site in the first few months of 2010 and build on the content that I have already published. Of all the niche sites I plan to run, this will be the easiest and quickest opportunity to start earning income next year.
Niche Site #2 – The second niche site in my portfolio of income streams has been live for 11 months. This site has been seriously abandoned over the past 8 months as I had focused on other ventures. My plan is to really start adding content early on and begin to grow this niche as I believe it has real potential.
Niche Site #3 – The final niche site that I want to build is only in it’s planning stages at this point. The content of this site will be focused on local information in the area that I live in. While the potential number of customers is limited to the region that I live, I think the earnings potential is tremendous based on analysis that I have done. I am most excited about building content for this site compared to the other two mentioned above.
eHow – I already have a SMART goal set to increase my eHow earnings by over 100% by June 30, 2010. If I am successful, that means I will have built a $500 per month passive income stream.
Online Store – This is the wild card in the whole mix to be honest. Setting up an online store is completely new to me. However, it has the most potential of any other income source to really take off. As additional motivation, I joined the Build Your Business Competition last week. Lot’s more to come on this income stream in the future.
Miscellaneous – I have not defined every income source I plan to build over the coming year, which is why I have created the miscellaneous category. I am still working out a plan for what else I want to focus on. This category will probably include several smaller income streams like any money generated from Twitter, HubPages, Info Barrel, etc.

Helpful Tools

I have written a lot recently about focusing on building a passive income stream through Info Barrel. Nothing has really changed. I still plan to build solid income streams through a variety of third party sources including Info Barrel, HubPages, Squidoo, eHow, and more. I also recognize the fact that I don’t own these sources of income outright and could lose any of these income sources at any time.

I plan to leverage both the income potential of sites like Info Barrel, as well as use them to build traffic towards my niche sites and online store. The strategy is nothing new as many other bloggers have been using it for some time. I just wanted to stress that I am not abandoning these sites, just leveraging everything I can from them to grow the internet real estate that I own!

Final Thoughts

I believe that I have a good mix of income streams that I will be focusing on next year. Each one of the sources will focus on building internet real estate, which I believe is the quickest and most effective way to create alternative income. While I believe there is tremendous potential in setting up these online income streams, I will also be working to grow some traditional passive income sources like certificates of deposit and dividend paying stocks.

I look forward to the coming year and working to put into action the goals that I have laid out. While I fully anticipate several challenges that lay ahead, I believe I have a solid plan to work through any roadblocks that may come along.

Have you defined your SMART goals for next year? What are you waiting for?

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How to Apply Newton’s First Law of Motion to Your Business

John S. — Wed, 09 Dec 2009 17:02:42 +0000

At some point in your life you have probably heard of Newton’s first law of motion. You know, the one that talks about objects (or bodies) in motion staying in motion and all that physics stuff. This law is one of the fundamental principles of physics and is the basis for which many things on this planet are defined.

While we are not hear to talk about physics or Sir Isaac Newton, we can certainly learn a thing or two about keeping objects in motion. In the case of starting a home business or building passive income, it is important to keep your objects (or income streams) in motion. Allowing external forces to stop that motion will cost time and more importantly income.

There are two parts to the law of motion that we can use to grow and nurture a business. Newton’s first law of motion can be summarized by the following -

An object (or body) that is NOT moving will not move until a force acts upon it.
An object (or body) that is moving will not stop until an external force acts upon it.

Applying Newton’s First Law of Motion

Using the basic fundamentals of Newton’s law of motion can help us guide and shape our business model. Leveraging these principals to build passive income and other alternative revenue sources will help to keep the momentum going and the cash coming in.

Income Streams at Rest

According to Newton, an object that is at rest will remain in that state until a force acts upon it. Guess what – when it comes to starting a home business or building passive income, that force is you! It sounds simple, but in order to build a solid business you need to act. Nobody else is going to do it for you, so stop sitting around waiting for things to come to you. Take the initative and move those income streams into action so can fulfill your dreams.

If you are considering building a passive income stream but keep putting it off, now is the time to take action. Just think of all the money that you may be leaving on the table because you never wrote that eBook or started your niche blog you had wanted. As long as you have done your research and are not just jumping in blindly, there is nothing stopping you other than yourself.

Income Streams in Motion

The other part of Newton’s law of motion is that an object that is in motion will remain in that state until an external force acts upon it. At first glance, this doesn’t seem possible in the physical world. For example, when a baseball pitcher throws a ball – it doesn’t keep going and going. However, when you really think about it, there are plenty of external forces making that ball slow down and eventually stop. Gravity, friction, and wind are a few forces that will eventually make that baseball come to a rest.

If you think about building the perfect passive income stream, you want to follow this model. A solid income stream should be created with as few external forces as possible. While you may not be aware of every possible external force when starting out, you should strive to limit them as much as possible.

Tips for Keeping Your Income Streams in Motion

Here are a few tips that can help you keep your passive income streams in motion.

Set SMART goals to help you stay on track and focused.
Spend less time checking emails and more time building income streams.
Focus more attention on your profitable income streams and less on your losers.

Final Thoughts

If you want to run a successful business, then it is important to keep the momentum going. It is great to have goals and dreams of where you want your business to be. Unfortunately, dreaming will not get you where you want to go. In order to reach your goals, you have to take action and make it happen. Hold yourself accountable and push yourself everyday so that you can truly reach your dreams.

How do you keep your income streams in motion?

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Increase Twitter Followers to 50,000 – SMART Goal Setting

John S. — Thu, 12 Nov 2009 13:07:06 +0000

In an effort to set some objectives for the upcoming year, I have decided to publish my SMART Goals that I am working to define. Using SMART goals will help me stay committed and focused on building solid and sustainable passive income streams over the next year. I think it is a good working exercise to define these goals here to help others understand the process. Maybe I can help pass along a few things to others looking to define some goals and hopefully I will learn some things along the way.

For those of us who have a career with an employer, chances are you are required to formerly state your goals and objectives each year. These goals are typically used to rate your overall performance and measure your value to the company. While the process may vary from company to company, any successful operation tracks the goals and objectives of their employees.

So what about those who are on their own? For those who create passive income streams or run their own business, one of the tasks that often is overlooked is setting good goals and objectives. That is not to say that goals are not set, just that they may not be clearly stated and manageable.

In an effort to take my passive income business to the next level, I will be defining several detailed and manageable goals as my objectives that I plan to meet. Keep reading to check out my first SMART goal definition for the upcoming year.

Tip – SMART Goals should have the following 5 attributes to be considered useful.
Specific + Measurable + Attainable + Relevant + Timely

Twitter Followers

I believe (and have shared my views many times) that Twitter can provide an excellent opportunity to create and build passive income streams. I can use use Twitter to drive more traffic to PFI or other niche websites I run, use it to help build credibility, or even earn some additional income through programs like Sponsored Tweets. Based on these beliefs, I plan to drastically increase my presence and following on Twitter which is the basis for my first goal defined below.

2010 SMART Goal #1
Increase my number of Twitter followers to 50,000 by December 31st, 2010. I will commit to adding at least 3,500 followers every month until I reach my target. New followers will be added by leveraging several FREE tools and Twitter apps as well as increasing my use of the site. Adding a significant number of followers will allow me to increase my monthly passive income earnings and meet additional goals for growing my business.

Is my Goal SMART?

The goal I defined to increase my number of Twitter followers contains a lot of details, but does it follow the SMART guidelines? Let’s take a look -

Is my goal Specific?
YES – The goal clearly uses some action statements like “Increase my number …” and “… commit to adding …. It also answers Why reaching this goal is important – to improve my monthly passive income earnings and grow my business. You may also notice that the goal answers How I plan to reach this goal – by leveraging FREE Twitter apps and increasing my use of the site.

Is my goal Measurable?
YES – I have quantified this goal by defining that I plan to have 50,000 Twitter followers and will add 3,500+ each month to reach that target.

Is my goal Attainable?
YES – I have set my goal so that it can be achieved in the amount of time I have set (over 13 months from today). You may also notice that I decided to include smaller attainable actions by stating I plan to add at least 3,500 new followers each month. I think this helps to break up the larger goal so that it is more easily attainable.

Is my goal Relevant?
YES – This goal is definitely relevant to building passive income. Since I will be leveraging several FREE Twitter apps there are no monetary costs involved. I am only out my time (which is still important) that I devote to this goal.

Is my goal Timely?
YES – I clearly have put a deadline to reach my goal – December 31st, 2010. It can’t be any more clear than that.

Final Thoughts

Even though this is a 2010 goal, I have decided to start it a little early. Starting today, I plan to put this goal into motion and have given myself about 13.5 months to reach my target. As time goes by, I will provide periodic updates (probably monthly) on my status and how I am doing. I will also be providing details on the tools and Twitter apps that I am leveraging to reach my goal. Finally, I have added the Twitter counter to this post so that I have an up to date count of my status when I check back in.

Tell me what you think – Is my Goal to attract 50,000 Twitter followers a SMART Goal?

For more information on SMART goal setting, check out – How to Create SMART Goals

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