I’ve been blogging off and on for a couple of years and it just hit me…I’ve had the wrong mindset about blogging. There is more than one form of income that I break down in my mind into four categories: active (sometimes called linear), passive, active/passive combo, and windfall.
Active Income
Active income is exchanging time for money like working at a job or freelancing. Of course there are advantages to having that set amount of money coming in; but there are also disadvantages. For example, your time is not really your own when you’re working for money. Active income takes a short-term outlook to meet current needs.
Passive Income
Passive income is generated by working once to create a stream of income then collect income perpetually (or until the stream dries up). Think long term here.
The Active/Passive Combo
The active/passive combo is doing a job that will pay you when you do the work and will continue paying afterward. For example, when an actor receives a salary for their role and receives royalties afterward. Now that is the best of both worlds.
Windfall Income
You may think about an inheritance or winning the lottery when you hear the term windfall, but I’m talking about actual income. My old law firm did this in the form of working certain types of cases–those taken on a contingency basis. It’s all or nothing but well worth it for the right cases.
Now back to blogging…I was treating my blogging experiences as active income. When I wasn’t seeing immediate results, I became discouraged and backed off blogging. But this epiphany hit me, blogging is for passive and windfall income. Blogging is a long-term project that will generate passive income if you persistently pursue this path.
If you’re on the brink of giving up on blogging, don’t. (At least not yet). First read The Blog Profits Blueprint. It’s a free ebook written by six-figure blogger, Yaro Starak. This book shows how to do blogging right and it’s free so what do you have to lose?
Posted in passive income.
Tagged with Money, passive income.
By Rosalyn
– February 8, 2010
When I think about generating passive income, two passages of scripture come to mind: I Kings 17 and 2 Kings 4. Of course when these events took place the dollar bill was not the medium of exchange but the premise is the same.
In I Kings 17 there was a widow who was down to the last of her mill and the last of her oil. She had just enough to make one more meal. But following the instructions of the prophet Elijah she stepped out in faith and gave him an offering of “a little cake”. That one act of obedience opened the door to a year’s worth of passive “income”. In a time of famine, the widow had enough to feed herself, her son, and Elijah without doing anything more. One act=passive income for one year.
The next example is found in II Kings 4 where another widow found herself in extreme debt and in desperate need of income to pay off that debt. This widow’s one act was to collect all the vessels she could find. Her one act gave her enough oil to sell and not only pay off her debt but for her and her two sons to live on.
Generating passive income is definitely a good thing–it frees you to be in a position to obey God in your giving and your living. If God said quit your job tomorrow an you’ve got enough passive income coming in to pay your bills, guess what? You’ll quit your job without hesitation. But if you’re depending on your job to pay your bills you’ve got a mental battle to go through to follow that instruction.
Based on the scriptures I just discussed, it seems that passive income is not just a good thing but also a God thing. What do you think? Please leave a comment I’d love to hear your input.
Posted in passive income.
Tagged with passive income.
By Rosalyn
– January 23, 2010
A few years ago there was an informercial for a Ronco rotisserie machine that emphasized the simplicity of the machine by repeating the slogan, “just set it and forget it”. The host would set the timer (”set it”) press the starter (”and”) then walk away (”forget it!”). After a few times the audience chimed in with him each time he did it. That’s obviously been locked in the recesses of my brain for years because as I worked on a system to create passive income the slogan kept replaying in my mind. Just set it and forget, Roz.
Because it’s really easy to get distracted on the internet with all the big launches of “must have” products, I decided to follow a simple set it and forget it strategy. This strategy also fits my personality because I get bored and am prone to switch projects quickly. So here’s the strategy:
Set It
- Prayer & Confession
- Select a product or service I use and recommend it
- Keyword research on the benefits of the product or service
- Create a lens
- Ping the lens, submit to search engines and social book marking sites
- Submit the lens to RSS feeds
- Create a Hub about the topic with a link back to the lens
- Create an eHow article about the topic with a link back to the lens
- Create an eZine article about the topic with a link back to the lens
Forget it:
- Start the next lens
- Check stats weekly
- Check earnings monthly
Posted in passive income.
Tagged with passive income strategy.
By Rosalyn
– December 22, 2009
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