What passive income is NOT

When I tried to Google “passive income” the ads will show something like this: “Make $4000/Week. No Sales, No Ads”, “You will earn $5000/month or more”, “Make $1000 pr Day or More”.

Besides having to learn basic English, these ads promise you all this passive income, but they all want you to spend money first. So before you even know what passive income is, you will have to actively spend some of your previous income.

To give you an idea, what I am talking about in this blog, you should read this to really understand what passive income really is. And more importantly what passive income is not.

Passive Income will make you rich in just one month!

First of all I can tell you what passive income is not: It is not a way to make you rich fast. Normally. Of course some have managed to start earning passive income and it skyrocketed to earn them several thousand dollars per week right from the beginning.

But in most cases, theses people made money with scams. Or these people have had other experience with passive income before that.

Earning Passive Income is a piece of cake!

In most cases, before you will get your passive income, you will have to work hard to set up your passive income. You can get the information on how to set up your passive income for free — for example in this blog — but you have to be willing and committed enough to keep working, even if you won’t see a lot of results.

In my fourth month, I made my first €6 – for the entire month. And people were laughing about those peanuts. Now I make more than 1000€ each month in passive income. But I had to work hard to get there.

Once your passive income streams are flowing, you will get money from doing virtually nothing. Hence the term “passive” income.

Earning Passive Income is like taking candy from a baby!

Some people will actually make passive income by taking candy from a baby. No, they will not steal candy and sell it. But they will exploit others to make some money. This is very shortsighted and it will always come back to haunt to.

There is one rule I have believed in my entire life: Dishonest money will be lost faster than you can make it!

Try to make dishonest money online and you will get caught eventually. If you won’t get caught, then someday this passive income stream will dry out because people will get smarter. If people won’t get smarter, then God will do his part. You might not realize it’s God who takes your money, but dishonest money is unlucky money.

Passive Income is for everyone!

To make it quick: It’s not. First of all, there still have to be people who actually produce the goods we consume. We can’t live on informational products and the products we sell or promote will actually have to be produced. So the term “anyone” is much more fitting than “everyone”.

So can you earn passive income? Sure. Can anyone earn passive income? To quote Obama: Yes, we can. But can everyone have enough passive income to make a living? No, they can’t. Not everyone has enough willpower and entrepreneurship in them to actually make it. You will need a pretty good understanding of some business basics and more importantly you should be able to diagnose your failures.

It is ok to fail. But it is important to learn something from each failure. If you won’t learn from your mistakes, you are destined to make the same mistakes over an over again.

Do you have any other points or myths about passive income? Please let me know and leave a comment.

Income and Progress Report: October 2010

This is my first income and progress report. Today I will tell you exactly how much money I made this month and how I did it. I do this for two reasons. The first ist to track my success, the second is to show you that making money online is absolutely possible. I will prove to you that living the travelling internet lifestyle is totally possible. For everyone!

Before I get to the numbers, I will give a short review over my actions of the last month.

Important Going-Ons in October

Two important seminars and a new tool

The first seminar I went to was the 9. Stuitgarter Wissensforum (Translation: Stuttgart Knowledge Forum), which basically was an entire day full of presentations by some of Germany’s best speakers.

I spent 129€ on the ticket for this event and wondered, if it was worth it. And believe me, it was. Although the event itself was interesting and motivating, the event itself wasn’t even what really had the big impact on my life. More important was the free ticket I got to the  Global Internet Seminar in Böblingen.

At the Global Internet Seminar I met some of the most successfull young online marketers, e.g. Shaun Stenning, who made a ton of money using a simple technique. I actually spent more than 2300€ on a tool he offered (Snipr) to create and market websites faster.

Right now, I am completing the begginer’s course for snipr and have already created a new website. I will keep you up to date how this tool works out for me.

Relaunch of Hochzeitsportal24.de

For the last 12 months, I have been working on the relaunch of my main project, which is a German wedding website. We planned to relaunch on November 1st, but there is still some minor fixes that have to take place.

I spent some money on quality pictures from Fotolia, since it is really important to have high quality pictures if you want your website to look professional.

I set up a Facebook page for Hochzeitsportal24 and reactivated the Twitter account in order to get some more traffic which is not dependend on Google.

The hardest thing with this project is to rank for the main Keywords in this very broad niche, which are Hochzeit (wedding), Brautkleid (wedding dress) and Trauringe (wedding rings). On Google.de I currently the ranks currently are #31 (Hochzeit), #166 (Brautkleid) and not ranked for Trauringe.

I do already rank for some traffic intensive keywords, but these three are money keywords. I need to get these up to increase income dramatically. This will be my biggest challenge for the next 12 months.

However, for now, the most important thing is the relaunch. Hopefully, we can relaunch by the end of this week.

Income Breakdown

Hochzeitsportal24.de

  • Display Advertising: 686,25€
  • Affiliate: 1€

On Hochzeitsportal24.de I have a marketer to market display advertising, who doesn’t allow me to disclose my income. Therefore my income from display advertsing will not be split up between income from the marketer, adsense and other incomes.

Niche Sites

  • AdSense: 248,36€

Gross Total in October 934,61€

Overall this is the least total I have had in the last 8 months. Since most my websites are wedding related, the drop off in the winter is just normal.

What I have learned in October

The most important lesson I learned was the fact that I need more than one website to make money online. I need a system. And I think I found that system in Snipr. I looked at the income from my niche sites and realized that with very little effort I made two years ago, I make almost 250€/month with the few niche sites that I have.

So I will increase the number of niche sites to increase the amount from 250€/month to a point where I feel comfortable with. Also I need to find niches that don’t fluctuate as much as wedding websites do.

I hope you enjoyed my income report. Do you have any questions or other thoughts you want to share? Please leave a comment.


Passive income 101

In my recent post I talked about some myths of passive income. Now that I told you what not to expect from passive income I will start teaching you about what passive income actually is and how you can achieve it. This will be series where I show you the different ways of earning passive income with or without prior investment.

There are tons of ways to get your passive income going.  But you will see that they can be broken down in a few categories of passive income. I will tell you about the different ways and name the pros and cons of each version of passive income.

Just read through all the different possibilities of passive income and find your own way.

Different ways to get your passive income flowing

  1. Sell an informational product e.g. ebook
  2. Make money with a content website
  3. Do PPC affiliate marketing
  4. Set up your automated online shop
  5. Passive income through investments
  6. Sell stock photography
  7. Earn money through article
  8. Set up a premium membership website
  9. Invent something and sell the patent
  10. Offer an outsourceable service

These are the topics I will write about in the next few weeks. If you have another idea which doesn’t fit in any of the 10 categories, leave a comment so I can put it on the list.

Why YOU should read this blog

This is a simple question every blog author should be able to answer. So take a few minutes and find out, why exactly you are going to benefit from reading this blog!

The purpose of this blog is to give you tips and pointers on how to live the lifestyle Tim Ferris promoted in his book “The 4-hour workweek“. What makes this book different from all the other “get rich” books is that it doesn’t promote getting rich, but instead it promotes making enough money to realize your own dreams whilst having enough time to do the things you want to do.

What are your dreams and goals?

Successfully pursuing your dreams requires you to know your dreams and goals. But finding and setting goals alone is enough for a complete blog post or even a post series on its own (believe me I wrote about it in my bachelor thesis). In this blog I will tell you about my goals and show you how you will find out about your goals and dreams and how you can reach them. For your motivation I will keep you updated on the progress of my goals.

One of my biggest goals is to travel the world, more specifically, I want to see all locations of the book “1000 places to see before you die“. In this blog I will not only give you the travelling reports of my adventures, but also I will show you, how you can achieve your dreams (if it’s travelling, a big house, spending more time with your kids or whatever) through a steady flow of passive income. Instead of limiting myself to selling stuff online, I will try all kinds of streams of passive income.

If you want to live the lifestyle you always dreamed of, keep on reading this blog and you will find a way to do it.

What you will get from this blog

In this blog you will…

  • …learn how to make money online.
  • …read about fascinating destinations in the world.
  • …learn how to travel the world with less money.

This blog is different from other blogs, because…

  • … I will post my own failures and success stories. You will not get a censored version of the success, but also learn about the struggles I will have.
  • … I will post income statements, so you can see how much I earned each month.
  • … the travel reports are not only simple descriptions of various destinations, but each travel report will be one step of my way to see all 1000 places.

I hope that I cought your interest.