Guest Author’s Bio: James Petzke is a recent high school graduate with a financial goal of graduating from college with a surplus instead of debt. He is also a freelance web designer, and has taken the plunge into the world of online income in several different ways.
It seems like everyone these days is hoping to make a quick buck or three online. And there are definitely some people that have. However, what many people don’t realize about online income is the substantial amount of work behind every successful online venture. Take for example some online money making bloggers (Pat Flynn, Spencer Haws, Chris Guthrie). They have all documented their very successful online businesses in niche sites, IPhone apps, and more. Many people will read their income reports and immediately start some sort of project, thinking that they will soon be rich. Read more into their stories though, and you see that it’s not that easy.
In the cases of those bloggers I mentioned, and countless others out there, their online income didn’t come quickly or easily. It took them countless hours of hard work and dedication to their projects. Most people like them started these projects on the side while maintaining a full time job, and it was months, and in a lot of cases years before they could quit those day jobs and rely fully on their online income. Let’s look at some of the different types of online income paths and see just what I’m talking about.
Blogging
Blogs are a very popular way for people to make money online, and rightly so. With a big readership, a blog can be worth literally millions of dollars, and bring in a steady six figure income. However, many people don’t realize what it takes to get to that point. Blogging is probably the best example I can think of of an income stream that takes time to build and yet grow exponentially. All blogs start small, and have to painfully build a readership up. Just writing and properly maintaining a blog can be several hours a day worth of work if you really want to grow fast, and then you have to count in promoting. Writing guest posts, commenting on other blogs, participating in forums, and more are all ways that you have to slowly, painfully build up a readership. Once you do, that readership will bring more readers which in turn bring in more and more. That’s where the exponential growth factor kicks in. And once it does, you can make serious money. It just takes many months, and in most cases years to get there. My own blog is already nearing its 6 month anniversary, and yet I’ve made almost no money. Blogs don’t tend to get high click through rates with conventional CPC advertising like Google Adsense, and private advertising deals only really happen for big, well established blogs, so the first few months will be painfully low in income.
Niche Sites
Another popular way to make money online is through niche sites. I’ve dabbled in this a little myself, and there is definitely big potential in this arena as well. With the right keywords, great content, and SEO work, a niche site or group of niche sites can make enough money to live off of easily. However, it takes a lot of work in initial setup. When you look at any successful niche site business, these sites have had hundreds and sometimes thousands of hours worth of work put into them to get them to the point where they make good money. Once they are set up, they are pretty much passive income, but it takes hard work and dedication to get there.
Other Online Projects
We’d all like to have created Facebook or Instagram. There are all kinds of stories out there of people who have built an app, website, or piece of software and found themselves instant millionaires. This has in turn inspired many to try out projects like this, myself included. I recently launched a search engine (LessJunk.org). But like my other online projects, I’ve found that slow, exponential growth is how this project is going to roll. If it does start to see some big traffic increases, this website will no doubt make a lot of money, but it’s going to take time to get to that point. I’ve learned that patience is a virtue, and is especially important with online income projects.
While it takes time, patience, and hard work, online income is definitely a viable thing in our modern world. Not all of us will build the next empire like Google or Facebook, but with the right skills and dedication, you can build blogs, niche sites, and other projects capable of supporting you financially. Best of luck to you all in your online ventures!
good insight. I’m looking into ways to make a few extra dollars online right now and while I’ve been told of a lot of sites to check out, Im still not sure where to start first. I wish it was as easier, wouldn’t that be more fun?
Crystal Evanisky recently posted..Social Media Progress May Update
Well if it was easy, everyone would do it! Where to start depends on your experiences. Do what you are comfortable with and choose a topic you know well
I run a blog right now and am working on starting my own consulting business. We shall see how things go.
Miss T @ Prairie Eco-Thrifter recently posted..Should Environmental Groups Take Money From Dirty Polluters?
Good luck on the businesses! I run my own consulting business as well, its great for some side income.
James Petzke recently posted..Facebook’s IPO: Yeah, I Called That
I’ve done quite well with my blog over the past few years, but it didn’t get there overnight. It took many months of working for less than minimum wages and writing tens of posts before the site started making any real money. Even then it was a slow continual uphill climb to get to the point where I am today.
Creating online income can be a great safety net, or even a full time income eventually, but it does take a ton of hard work before you’ll see much of a return. So make sure that you’re writing something you’re passionate about.
Peter recently posted..10 Tips For Saving Money While You Travel
I agree, making sure you have passion about what you write about is one of the most important aspects of this type of business
I should also point out that I think it’s possible to make money at things you’re not as passionate about as well, as long as you put in the effort. I wasn’t as passionate about the topic that I write about when I started, but through hours of hard work and effort I’ve gotten better at it, have started to enjoy it more and have more of a passion for it. Reminds me of a post I read on Dallas Mavericks owner Mark Cuban’s blog where he says “don’t follow your passion, follow your effort”. Some of the things he said:
Let me make this as clear as possible
1. When you work hard at something you become good at it.
2. When you become good at doing something, you will enjoy it more.
3. When you enjoy doing something, there is a very good chance you will become passionate or more passionate about it
4. When you are good at something, passionate and work even harder to excel and be the best at it, good things happen.
Don’t follow your passions, follow your effort. It will lead you to your passions and to success, however you define it.
http://blogmaverick.com/2012/03/18/dont-follow-your-passion-follow-your-effort/
Peter recently posted..How Big Should A Car Down Payment Be?
Great piece by Mark Cuban. He’s one of my favorite business figures, his stories are really inspirational.
James Petzke recently posted..Facebook’s IPO: Yeah, I Called That
This is a good, realistic view on things. It’s a lot of work, but if you have perseverance I’m sure it’s possible.
femmefrugality recently posted..A Moment of Silence
With the right perseverance, online income is more than possible, that’s for sure!
James Petzke recently posted..Facebook’s IPO: Yeah, I Called That
I agree with Peter about writing for passion. If you’re not passionate about it you will definitely get burnt out. I’m nearing my 6-month anniversary as well and my traffic is going but the income side of things has been relatively small.
We’ll see how it goes in the next few months.
Jason @ WSL recently posted..What Phase of Investing Are YOU In?
Yeah I still believe that having passion about what you do is not only good for business, but helps you enjoy it more.
James Petzke recently posted..Facebook’s IPO: Yeah, I Called That
Great post. I write my blog for fun, but of course the money is good as well.
Writing for fun is a very important part of blogging as well!
James Petzke recently posted..Facebook’s IPO: Yeah, I Called That
Thanks for the reality check James. Passion and patience needed in equal measures.
Drew recently posted..Objective Wealth Three Months On
Passion and patience are the fundamentals of online business, that’s for sure!
James Petzke recently posted..Facebook’s IPO: Yeah, I Called That
Soo true. My blog makes a very small amount of money and it has taken me HOURS a day,e very day a week, to get to this point. I truly enjoy it, so it doesn’t bother me, but it’s not even a big blog! Like, I can online imagine how much time and effort would go into building a blog that is worth that much money.
I do agree with Peter’s comment that you don’t necessarily have to write about something you are passionate about to be successful. I am ony passionate about my money because.. I make it, I spend it, it’s personal to me. But, I am SUPER passionate about animals and feminist issues, I just don’t know that I’d want to blog about them – the work around it might quell my passion.
Yeah I see that side of things as well. If you are passionate about something but don’t have motivation to write about it, you won’t go far with it, that’s for sure.
James Petzke recently posted..Facebook’s IPO: Yeah, I Called That
It still boils down to a lot of hard work to turn a profit. And even though the barrier to entry is low, only the best blogs and the best niche websites really turn a decent profit. Another thing I’ve discovered in the niche website marketplace is thousands of individuals who speak English as a second language from places like Indonesia are creating niche sites and living quite well off the modest revenue they pull in. It costs a lot less to live in Indonesia than the UK or some other Western country.
Josh @ Live Well Simply recently posted..Cheapest Smartphone – How I Used an iPhone for $40/month
That’s an interesting observation about foreign niche sites, it totally makes sense to. I just wonder how that will change the niche site scene in the future.
James Petzke recently posted..Facebook’s IPO: Yeah, I Called That
You are definitely right about picking a good subject and taking time. I am building an audience, but it’ll take time before I start making more than a few bucks from Adsense!
mycanuckbuck recently posted..Why you should never, ever, pay just the minimum amount on your credit card
Yeah the first few months are painful to only see a couple dollars here and there from Adsense, but hopefully things get better!
James Petzke recently posted..Facebook’s IPO: Yeah, I Called That
I love the opportunities that online businesses present. The start up costs are so low that it doesn’t take much money to start blogs or niche sites and see what works and what doesn’t. A significant amount of time is required to make a profit, but if you work hard and are patient then you can reap the benefits.
I love the endless opportunities as well, a blog costs next to nothing to set up, so if it flops you lose almost nothing, and you can write about nearly anything you want.
James Petzke recently posted..Facebook’s IPO: Yeah, I Called That
Wait, you created a search engine? Wow!
Yeah, I mean I don’t get credit for the engine part of it seeing as it is powered by Google, but I did program the system that determines what sites will be added to the list and tally votes etc.
James Petzke recently posted..Facebook’s IPO: Yeah, I Called That
Great post and fantastic points about slow and steady! Well done on having so many side hustles already.
Thanks! If I’m going to accomplish my goal of graduating with a surplus, I’m going to have to have those side hustles going full force!
James Petzke recently posted..Facebook’s IPO: Yeah, I Called That
I’ve set up a few websites for people and have been paid for it, I guess that counts as online income? I’m currently looking at developing an extremely niche web development service, but I need to get a few more projects online before I decide if it’s the right path for me.
Jordann recently posted..Balancing Morality with Frugality
If it’s something you enjoy, I say go for it. There’s always people online looking to pay to get stuff done for them. It’s just a matter if the market for that service is big enough to justify offering it.