I just wanted to enlarge slightly on yesterday's post - the part about passive income.I'll give an example as to why this form of income is not only preferable but is also essential if you want a really big income.
The main reason is time. Take my wife for instance ... please! No - that's a joke.
Anyway, my wife designs and makes dresses. It's a hobby she started years ago and it developed into an income, and all from working at home. She's good at it and has been listed in such places as Vogue.
It earns her money, which she is happy with. It's almost become a social thing as well as she knows her customers well and enjoys the chat, cups of coffee and gossip that goes with it.
However she can only make a certain amount of money in a week - unless she wants to work all hours. She has only one pair of hands.
If she had wanted to take the money making to another level this would have meant developing a passive income from the business.
In other words she would have to stop doing the work herself and get other people to do the graft for her. She would ned to become a supervisor / boss / manager, or whatever title you would want to choose.
In blogging things like sponsored posts are work.
Adverts, AdSense, other affiliates you have introduced to various programs and so on are examples of blogging passive income - whereby you do very little yourself. You have to supervise, of course: where the ads go, swapping things around, keeping stats etc. but this isn't real work and is therefore less time consuming.
It's what you get other people or 'things' to do for you that will make real money. Otherwise it's limiting. This is fine if you want to make some pin money or a little extra - but it won't make you rich.
Quite a while back I did some consultancy type work for an American networking company who wanted to start up in the UK.
I envisaged that they were a big organisation. It turned out there were just three of them plus a sort of office worker come dogsbody.
All of their business was done by other people and companies on their behalf. They had someone else to source the products, a fulfillment house to the dispatch goods and every aspect of their business was covered.
All they had to do was supervise and think up ideas. Oh, and count the profits!
It's not what you do yourself ...
Good luck,
Mike.
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