The Passive Dad » Passive Income Ideas

Where’s The Beef? Finding Passive Income Sources

Scott — Fri, 18 Feb 2011 19:48:45 +0000

Remember that commercial from the 80′s where the grandma yell’s this famous line?

Well, that’s the way I’ve been feeling for the past few months regarding passive income. Truth be told, I am making passive income, just not as much as my original goal. So…what can I do about it? Set a more realistic goal. I’ll share mine, if you share yours

Goal for February is $500 in Passive Income.

Current income sources:
Adsense
clickbank
ehow
big crumbs
squidoo

I am hoping to scale back on outsourcing content and work on building out current website project myself. I’ve learned much over the past 2 years about SEO and article marketing. I want to know what is working for you and what your goals are this month?

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Google Affiliate Program Review

Traci K. — Wed, 18 Aug 2010 15:00:21 +0000

The Google Affiliate program is one of many affiliate programs available online. Although it is but one of many, it is backed by the well known Google. For that reason alone, it may be one of the more popular affiliate programs available today. Setting up an initial Google Affiliate program is very easy, all you need is a Gmail account. Once you complete the initial registration, you can browse through a very extensive list of affiliates to choose from (for example Barnes & Noble, Fossil, Llewellyn, Borders, Crabtree & Evelyn and more). Each individual affiliate has the option to allow you to use their affiliate links or to decline you access. If you are approved, you can scroll through the available ads and links and get the code to paste into your website. You can track any commissions made on the very first page you see when you log in. It displays the current month in a graph form, and it’s very easy to navigate.

Pros: The program is very easy to sign up for. They also have a large number of affiliates in a lot of areas, so there are a lot of choices. You have the option of html code or a regular link for most of the affiliates, so it’s very easy to add to your website. Tracking the number of clicks and number of commissions is very easy and intuitive.

Cons: My experiences with Google Affiliates ended with three major down sides. The first is that the affiliates I used (Barnes and Noble and Amazon) had only banner ads available in html version. I find the banner ads tend to look gaudy on most sites, and these were no exception. The second down side is that the banner ads are almost exclusively -not- product specific, so your ad says only Barnes & Noble or advertises a “20% off Barnes & Noble purchases” sale. Barnes & Noble had one specifically for the Nook as well. The third down side is that if you choose to put up a banner ad with a current sale, special, or holiday pricing you then have to change it when that special is over. It requires moderate upkeep to keep all your links up to date with their currently available links as participating affiliates do update their available ads semi-regularly.

How does it stack up against the competition? The commission rates are fairly competitive, although if the company offers their own separate affiliate program you may fare better going directly through the specific company. It’s worth double checking!

Is it worth it? Google Affiliate program was not effective for my specific niche website I tried the program for. The ads were too generic for my purposes, although embedding the link into the text if discussing a product had some results. As my website didn’t deal much with products, I found it ineffective. If your website focuses more on products or lends its self to banner ads for specific stores, then it may be a great fit for you! The program its self isn’t something I had any issues with except that it didn’t work well for my specific website.

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5 Ways to Earn Passive Income

Traci K. — Mon, 16 Aug 2010 15:00:58 +0000

Everyone is familiar with active income: income made directly from your day-to-day job whether it’s hourly, salary, or contracted pay which comprises most peoples’ primary income source. But there is another strategy to supplement primary income, with little or no upfront work. Earn passive income with a primary investment of time or money, then sit back and collect your additional income streams with minimal upkeep. Here are five passive income ideas to help get you started:

1. Real Estate: Real estate is a traditional way to earn passive income. The best passive income opportunity through real estate is one of the most recognized: the rental property. Whether the property is already owned or bought for use as a rental, this one time, up front investment generates a monthly stream of income with little maintenance. But there are other forms to earn passive income through real estate, such as lumber sales from wooded property. This option does usually involve a large up front investment.

2.Investing: Interest and dividends make up another traditional avenue to earn passive income. Dividends are paid from investments such as stock exchange (high risk) and mutual funds (medium risk). The higher possible return usually involves more risk. Interest is from low risk investments with lower yields, but there is still a way to maximize your return. You can utilize everything from high interest checking and savings accounts, Cd’s, money market savings or investing in the stock market. There are a wealth of options depending on how much you have to invest up front and how much risk you are willing to take.

3. Information: Information products provide the best passive income for those with little money to invest up front. The products are a one time investment of effort to create an e-book, booklet or newsletter with market appeal. The e-book can be sold through a personal website and will require additional marketing. You could also use self-publishing companies that help promote e-content or try for places that publish to mobile devices. Both require that some form of need is addressed for the audience. Traditional paper publishing and self publishing also generate passive income, requiring different start up costs for any budget.

4. Advertising: Websites or blogs earn passive income online through advertising and affiliate programs. Advertising such as Google’s AdWords pays the website or blog owner as web surfers click on ads embedded in the page. Affiliate programs allow linking to products for sale. The website owner makes a small commission for purchases made by following the link to make the purchase. Website content draws people to the site, so unique or specialized content is important.

5. Sales: Content Selling/Reselling is a strategy for generating passive income online. Successful sales require original content that can be sold repeatedly, such as photographs and image licenses or sewing patterns. Other passive income ideas for content require upfront creation such as website or blog templates, desktop themes, and even mobile device applications. Reselling content can be as simple as setting up a web page for purchased content, using a domain reseller program or even selling domain hosting for other companies.

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Amazon Affiliate Program Review

Traci K. — Fri, 13 Aug 2010 15:00:00 +0000

Amazon is one of the most popular online discount stores. You can find almost anything on Amazon and often at some of the lowest available prices. With a solid reputation among online stores and a large offering of reputable used items, Amazon is a well-trusted company to try an affiliate program with. The application process is very simple, although there is a few day wait while they review your website for acceptance.

Pros: The biggest benefit of Amazon’s affiliate program is that it is very customizable. You can choose the specific items you want to advertise, you have options in what the links look like, and you can even create your own “mini-store” interface with Amazon products. I really enjoyed that I had complete control over exactly what was being advertised and what the advertising looked like. I also enjoyed the customization options available for aesthetics on the links and even the in the store interface. Also, Amazon offers a pretty hefty advertising rate averaging four to fifteen percent of purchases made. Amazon also has such a wide range of available products to choose from, so no matter what topic your site is on you can typically find applicable products.

Cons: The most notable downside to Amazon affiliate program is that you are not able to use this service if you reside in Colorado, North Carolina or Rhode Island due to applicable local laws. Also, Amazon provides required scripting to be placed on your website to clearly identify that you are part of the affiliate program. It can require minimal maintenance to make sure your ad and link content is still the correct products, but it is not a burdensome amount of maintenance.

How does it stack up against the competition? Compared to other available affiliate programs, Amazon has a higher percentage return and more customizable ad options and layouts. Google Affiliate programs that I have tried only have a single banner ad option, whereas Amazon allows you to embed a text link which is often far more effective.

I have used Amazon Affiliate programs because of the ability to choose specific products along with the very popular and well known name of Amazon. Because I had a niche site and did a lot of book reviews, Amazon had the best selection of products.

Is it worth it? If the ads are applicable and look tasteful on your website layout, absolutely. Like any source of passive income, it isn’t guaranteed to make you a fortune overnight but it is something that will work for you even when you’re sleeping. That’s just what we want! The more content you build, the more links you have and the more traffic you drive to your site the better you will do. Time will help, as with any other type of affiliate or passive income.

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Google Ad sense Review

Traci K. — Wed, 11 Aug 2010 15:00:26 +0000

Google Adwords AdSense program is one source of passive income that has become increasingly popular in recent years. As Google has gained visibility and credibility during this time as a search engine, their ad and affiliate programs have also become some of the most widely used and most profitable options out there. Google was the first to market the text ad with high profitability versus the standard banner ads that most consumers had become blind to. Although some of their per click payout rates are anticipated to drop as competition for this niche marketing and advertising becomes more popular, Google has shown it is the leader in this area and will probably stay competitive in the future.

Pros: Google ad sense is very easy to use with a simple registration and copy/paste code to set up your ads. You can customize keywords and the look and feel of your ads. You don’t need any major upkeep for this program, just keep your website content updated on a specific topic with good keywords. Google automatically rotates the ads based on click rates and per click pricing.

Cons: If your website gets very little traffic or you don’t want to clutter every single page on your site with google adsense, your adsense revenue may be abysmal. The ads can also look clunky and interfere with your site design if you aren’t careful. You may need to redesign your site layout to accommodate a more natural looking integration of Google Ad sense. Also, the ads displayed on my site by google adsense were often irrelevant or had content I found offensive. These issues led me to remove my Adsense from one of my sites, although I haven’t heard of this happening very often.

How much can you really expect to earn? I have a website that pulls in about two thousand visitors per month. Google adsense is on my 5 main pages only. I get an average of 500 ad views per month with less than a one percent click rate at a five cents per click average payout. Since November 2009 I’ve made less than one dollar. To be completely fair, this site is a very niche area of content, and I’ve seen other sites on more popular topics do incredibly well with an extra $100 a month being average.

Is it worth it? If the integration doesn’t make your site look overly gaudy or full of irrelevant ads, the passive income is great. Even if the adsense revenue generated is minuscule, you aren’t spending energy to maintain it. And if you do keep up with your website and spend time to drive more page views, your adsense revenue can certainly be increased. There are a large number of websites and books that tell you how to maximize your website for maximum google adsense earning potential.

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5 of the Highest Interest Online Savings Accounts

Traci K. — Fri, 06 Aug 2010 15:00:26 +0000

One of the best things to do with your short term savings is to place your cash in a high interest savings account. Many of the online only banks (like Ally or ING Direct) have the best interest rates available, although some banks do require a minimum deposit amount to get the best APY Interest yield. Many of the percentages change as frequently as every few months, so it’s best to do your homework before opening. Here are 5 of the highest interest rate savings accounts I have found:

Everbank: Everbank boasts a whopping 1.51% APY up to $50K the first year. They have a bonus introductory of 2.25% APY for the first 3 months. Catches: There is a $1,500 minimum opening deposit and a $8.95 per month fee for balances under $5,000.
SallieMae: SallieMae is well known for their presence in providing student loans, but their new savings account option has a great 1.4% APY Bonus: No monthly fees, no minimum deposits, no minimum balances.
Capital One: Well known for their credit cards, Capital One has ventured into online savings with an APY of 1.35% for balances of $1,000 or more. You only need $1 to open an account, but the APY is only 0.10% if you’re under that $1,000 magic balance. Bonus: No fees and a possibility of a 10% quarterly bonus if you either have a balance of $15,000 or over or use a capital one credit card once a month.
Ally: Ally has been a leading figure in the online banking industry, becoming one of the most reputable online only banking establishments. They have a very competitive 1.29% APY that doesn’t fluctuate too much. Bonus: There are no minimum balances and only $1 for an initial deposit is required. Catch: You need a pretty decent credit score to be accepted for an account.
ING Direct: ING Direct is one of the more well known online only banking presences. Although their APY fluctuates more than some other banks, they accept lower credit score applicants for savings accounts (based on personal experience only) with a very consistently competitive APY. Right now, the Orange Savings is at 1.10% APY. Bonus: There are no fees and no minimum deposit or minimum balance. If your credit score is decent, their Electric Orange Checking has a very high interest of 1.25% APY.

Most online savings offer the benefit of a higher APY with a few downsides. Aside from some online savings banks require minimum deposits or balances for the high APY percent, you can also expect to have to make all transactions wireless, take several days to transfer money, and there is usually a federally mandated withdrawal limit of 6 transactions per month. My experience with ING Direct is that any overdraft fees, or other fees are usually far less painful than with a traditional bank. If you understand the terms of your account and what will cause fees, and you can work with the time it takes to move money then the benefits may outweigh the downside of these high interest online savings accounts.

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Residual Income-nice work if you can get it!

Jessie — Tue, 20 Jul 2010 06:10:43 +0000

Did you know that one family continues to receive royalties for quite possibly the most popular song in the world – the ‘Happy Birthday’ song? Ever wish you wrote an annoyingly overplayed ancient children’s jingle that doesn’t seem to get old? Residual income is ongoing income for the production of an initial work and has many benefits over the linear income (or ongoing payment for ongoing work – the stuff we’re used to).

Did you know that the second richest man in the world owes much of his success to residual income received from the original purchasing of three pinball machines? Warren Buffet set up the machines in various shops and collected a regular monthly income, with little, if any exertion apart from the horrendous task of manually collecting the profits.

Residual income is like an apple tree. You originally sow the seeds and the benefits (or fruits) are perpetual. You don’t have to be overly creative or talented to receive some form of residual income, although it is often associated with actors, composers, writers and royalties. Investment property purchasing is another common way of creating residual income by allowing tenants to contribute rent, paying off the purchased property and eventually providing another stream of income. This kind of income is a wonderful way of making money with little direct involvement after the initial contribution or work is completed.

While residual income is often coined ‘smart’ money – it involves determination and drive and often involves a risk component. It is not always easily achieved. However, the globe is getting increasingly smaller due to technologies such as the Internet and it has been found to be a wonderful place to establish a residual income. An increasingly popular way of attaining a residual income online has emerged recently and it stems from Affiliate marketing. This process essentially involves creating a website pre-selling products on behalf of a manufacturer. While they retain complete control over the products and the sales, the company provides commission incentives to you based on the heavy traffic flows and purchases made via your website. There are many companies that offer ‘pillars of sale’ that track the sale ladders and maximize the profits you are able to receive. Furthermore, referrals and advertising campaigns such as ‘pay per click’ can secure an alternative method of passive income, requiring merely initial effort but continuing to bear rewards.

Maintaining a residual income requires ‘smart’ thinking, which is why it is aptly known as ‘smart’ money. While marketing can sometimes be shrouded in convoluted terms and even understanding Affiliate and Referral programs is enough to make many gasp – persistence and dedication in the initial stages is the only security of discovering and reaping in this kind of enduring income.

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Have Passive Income Flowing From Your PC and Into Your Bank Account

Scott — Tue, 22 Jun 2010 22:48:52 +0000

There are so many people I know who want to earn money without shedding buckets of blood, sweat and tears for every dollar they gain. Although this wasn’t possible in the past, it is so now. You can have money flowing into your account although your routine consists of waking up late, enjoying a luxurious cup of coffee and simple lying around the house doing nothing. All you require, in order to have passive income, is a PC and a reliable internet connection.

One of the best places for you to get passive income is the internet. Many friends of mine ventured into the virtual world with their money (after a lot of research, of course) and managed to gain good profits. Not only that, I know their wives and kids are much happier that the man of the house is working less and spending more time with them. So, if you want to know 5 small secrets so as to have passive income added to your bank account, read on.

• Sign up for an affiliate program: you can have passive income generated by setting up a website which sells a company’s products beforehand. Affiliated websites are usually monitored by the parent company so that the prior would be rewarded for whatever sales they make. That commission will be your passive income. In order to become part of the affiliate program community, start looking online for companies which offer large commissions. Also make sure that they will track your sales for a long time so that you can be sure of getting commissions on a regular basis.

• Put your pen to paper and write an eBook: If you have the flair for writing, why not use your skills? Today’s consumers are always in the need for informative publications, so you can write an eBook and sell it online. Many people are doing this, and the two basic reasons behind this are that eBook are easy as well as inexpensive to create. You can easily publicize for your book by using affiliate programs to help you sell. Plus, if you allow reprint rights, you can charge whatever fee you want.

• Build your own membership site: You can have passive income easily by setting up a website that is only open for members. Use your expertise on a subject and make a site that is filled with resources and support. After that you can charge a monthly or yearly fee for them to access their accounts. You can also publish and market other products on your site, thus earning commissions as well.

• Gain money from advertising: Marketing will get you money. If you are constantly targeted by web traffic, you can have a banner or link of some company displayed on your web page for a fee. You can also advertise for different products and services through newsletters, eBooks or ezines.

• Resell what others offer: You don’t need to make up your own service or line of products. You can resell other people’s online service so that you can have passive income on a monthly basis. This is 100% legal because you will pay the original provider a fixed fee while asking for more from your own clients.

Have some money making ideas, but need help getting organized? I’ve used this ebook and it’s a blueprint for how I create some of my passive income sites. It’s easy to follow and has an actual step-by-step guide to marketing your website and building traffic through social media, article marketing and more. I keep a copy of it on my desk and reference it daily. Check it out for more info and let me know if you have any questions.

Doesn’t sound that difficult, does it? Still, make sure you know each and every aspect of these projects before you actually invest in them. Once you do, you can have passive income generated while you lie comfortably in your La-Z-Boy.

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News From My Realtor: HOA Condo Rules Won’t Allow Investors At This Time

Scott — Mon, 23 Mar 2009 10:00:47 +0000

photo credit: JohnHallAssociates

This last week I was given some unfortunate news about a investment condo I was interested in purchasing for a rental property. My agent contacted the sellers agent and asked if any offers had been made on the condo. He learned no offers had been made, but the sellers agent did ask if I was going to be occupying the condo or make it an investment property. The condo has 100 units and only allows a small percentage to be rental units. The sellers agent is going to find out what the exact percentage of rental units is allowed under the current HOA restrictions. If the percentage is close, I could purchase the condo and sit on it until the numbers are lower, but risk my investment return. Also, if another unit doesn’t convert to an owner occupied condo, I could lose out on my investment completely.

Another option is to petition the HOA and show them that I’m willing to increase the value of the property and have them screen tenants. This process would take time and I might lose the property to someone who is planning on making the condo a primary residence. It’s looking like I need to move on to another property and put this one behind me. It has been a fantastic learning experience and I’ve learned much more about HOA rules and regulations. At this point I’ve invested nothing buy my time, so I feel fortunate compared to some recent stories shared by my Realtor.

I spoke to my Realtor about four potential investment condos when he shared an interesting story about a client of his. The client purchased a condo several years ago and decided to move to a bigger home nearby. He contacted his HOA for another set of keys for a common area for a new tenant that just signed a rental agreement. The HOA admin game him a shocker when they stated that he was not allowed to rent his unit under the HOA rules. The client had to petition the HOA for several months and meet with the current board to plead his request. To make matters worse, the HOA President was also his next-door neighbor and did not want his neighbor to become a renter. The client finally was able to rent out the condo, but lost out on 6 months worth of rent, or $8,000.

After hearing this story, my plan is to contact any HOA and receive a written letter authorizing the purchase of the condo for investment purposes. I can’t imagine buying a rental property and finding out it can’t be rented out. I feel that this has been a wonderful learning experience and another passive income investment property will be found. This week I’m going to be looking at several condos around the same part of town and my Realtor will pre-screen them with the sellers agent to make sure they are available to investors. But, I’m still going to demand a letter from the HOA if an offer is made.

Do you have restrictions on your condo HOA? Have you tried purchasing a condo for an investment property?

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What I Learned About Real Estate Investing Today: Be Patient

Scott — Mon, 16 Mar 2009 10:00:58 +0000

photo credit: allaboutgeorge

This week I’ve been researching real estate in our local area trying to find an opportunity for an investment property. Three condos caught my attention as they were priced aggressively and were all under $100,000. I utilize Zip Realty and have a search setup to scour a 5 mile radius from my home for condos or town homes. Ideally, it would be great to find a single family home but the prices are out of range for an investment property. My goal is to find a property that can generate positive cash flow and also have the potential to increase in value. Every since I purchased my first home, I’ve had a dream of investing in an investment property that could provide passive income for my family. Real estate investments have the opportunity to earn passive income through rent paid by the tenant. Once the property has been purchased, the income derived from the property is mainly passive. My plan is to manage the property myself, so I do anticipate handling any repairs or tenant questions.

I met with a friend who is a local Realtor and we discussed investment properties and what to keep in mind when looking at a property. Much of the meeting was a sobering reminder of the current economic climate facing the real estate market today. He reminded me to be patient and not to get frustrated with banks, as the buying process can last for months. The property we looked at today, he explained, could take up to 5 months to close because it’s a short sale. He was going to contact the sellers agent to find out if it was a bank approved short sale. If not, it could take months. The property was listed at over 50% off it’s purchase price from 2003 and the bank might not want to budge on the price.

The condo has only been on the market for 6 days, and my Realtor expects that it might have several offers already on the table. I was surprised when he said that so calmly, as I thought the real estate market was soft in our area. He explained that the market for high end properties is soft, but very aggressive for single family homes and condos right now. Again, he told me to be patient and prepare to wait it out. The selling agent might have also priced the condo below market value to encourage multiple bids. I thought, wasn’t this the same tactic used during the real estate boom? Why not price a property at what the bank would approve? It seems that if a seller doesn’t get a banks pre-approval, the buying process will only become more complicated.

Just as with any other investment, have a walk away price. My friend told me not to get emotional amid the potential bidding frenzy and to stay focused. Plenty of properties will be coming up over the next few months and this condo isn’t the only potential deal. I’m sure glad my buddy is conservative as well. He explained, even if we bid on the condo, the bank could take several weeks or months to review the offers.

What about a normal condo sale? Actually, it’s difficult to find a condo in our area that is not a foreclosure or short sale. Maybe sellers are waiting to see if the market rebounds before trying to sell. I would like to look at other condos in our area, but have to do more research on HOA and neighborhoods first. I would like to find a condo near our home so that it makes the research much easier, as I know how to market the schools and shopping opportunities. Although, I might also find some better deals further out.

It’s has been an interesting week, and I’m anxious and excited to learn as much as possible about investment properties. Have you started looking at investment property recently? If you purchased a short sale, how long did it take?

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The Passive Dad » Passive Income Ideas

Where’s The Beef? Finding Passive Income Sources

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