A few days ago, I looked at Forex as a way to create additional income, and like you may have guessed by now, with my cattle, coconuts or land investments I am more into non traditional sources of income than the usual stock and shares funds.
Today I want to look at website creation. I was about to call website creation a source of passive income, but as you will see, it is pretty active, for most of us mortals. Little web geniuses make it look easy, truth is it requires some work and dedication.
You can find information about how to make a website here. The basics are you need to register a domain and get hosting, and can do both for a year under $100. Your domain name is just as important as what your content will be. Calling a knitting blog Janeslittlehobby.com gives no idea to a potential reader of the content of the site. knittingwithjane.com is already a bit better. Think long and hard about your domain, and cross fingers that it is not registered yet. Most domain registration sites will give you close ideas if your exact domain is taken.
Once you are done, you are ready to publish content! In order to create extra income, you can look into different kinds of websites.
- Niche websitePros: Very specific, they target a sought after keyword, and are the least demanding once they are set up. You make money with adsense or affiliate sales. Done properly, you can really create passive income.
Cons: The more specific the niche, the smaller the audience. If you have little competition, that is good, but you need strong SEO knowledge to make your niche site work for you.
- Drop shipping website
Pros: You sell a product that is not your, and rely on another provider to supply and deliver. You can start with nothing, do not need to store goods, and only have to forward orders to your provider.
Cons: Low margins, high competition. You have to sell high volumes to make it work, and the costs of setting up a payment platform are higher than a simple blog.
- Starting a blog
Pros: you have fun, write about whatever you want, and if you put a little effort into it, money will follow.
Cons: this is NOT a passive source of income. I repeat, blogging demands lots of time. Since you are supposedly having fun, you shouldn’t mind. But if you aren’t, you should make more money waiting tables (for 80% of bloggers). It may take a few months, or over a year, to start making decent money.
I chose to start a blog because I truly enjoy the interaction with people, and don’t have the knowledge to build a drop shipping site. I wouldn’t want high start up costs of web design, paid advertisement, etc for a chance to make 2% per sale. The niche site idea I quite enjoy but can’t think about a creative niche just yet. And I would definitely have to delegate the SEO work as you can’t go wrong with that.
With a blog, you have more freedom to do what you please. Monetizing can be done through product reviews, affiliate sales, ad banners, sponsored posts… you may receive free items or be offered products to give away to your readers. I like being able to take my blog wherever I want.
I know that the best way to create a passive income is to have an automated niche site. The day I stop blogging, even if I flag every pixel of this site with ads, I don’t think the income will be nearly as good as with regular maintenance.
But I am not in it for the money, like many bloggers, I just enjoy it and blogging income is a plus.
Do you own a website? What is your monetizing experience? Do you consider it passive income?