I’m sorry I’ve been away from the blog for a few days. With the holidays, wedding planning, finding an apartment, and the launch of my audio book all happening at the same time, you can imagine I’ve been a busy bee. I just finished working on 150 or so wedding invitations, and I’m beat. That being said, writing on this blog is a wonderful break from all of that, where I can discuss with you some things that may inspire and teach you whatever it is you take away from it.
So, you may be drawn to read this post via the title: How I lost $10,000 and what to do to avoid this. A more appropriate title may be: How I missed out on $10,000 and what to do to avoid this. Let me explain…
After keeping track of my online passive income for a few months now, I cannot express how much I wish I could turn back time. Why? Because I made one huge mistake – one ginormous (yes, it’s a word) wrong move that if I had the power, I would go back and change. I would have started earlier.
Sick Math
If I had started doing what I’m doing online just one month earlier, I would be $10k richer today.
Now, you may be thinking: “Pat, it’s not like you started out making $10,000 the first month, how could you be $10k richer by starting just one month earlier.” Well, the math tells me so, that’s why.
So let’s say I started my blog in January of 2008, which is true. I didn’t start monetizing it until about April, when I added Adsense, and was getting paid through ad clicks. I then started selling my eBook in October, as you can see in this rough chart of my income per month (these are not exact numbers, but you get the idea:
Monetizing Begins in April
Now, let’s say I started monetizing in March instead of April – just one month earlier, using the same methods and rates of growth and income each month after starting monetizing:
Monetizing Begins in March
I put $10,000 in December, but in reality it would probably be more based on the growth from the previous months. So you see, at the end of the year, at the same exact point in time, there’s a $10,000 dollar difference from just starting one month earlier.
Going Even Further
There’s even more things here that are pretty sickening to think about. What if I had launched my eBook one month earlier too, or even 2 or 3 months earlier? That is money “I missed out on” as well – because the kicker is, I can’t turn back time like I wish I could. No one can, except for maybe H.G. Wells.
Bottom line, in order to not lose (or miss out) on money that you could be putting into your pocket, you must get started as soon as you can.
The old saying holds true…time is money. A classic and similar example can be explained with retirement funds and compound interest.
If you’re 25 years old, and you make $50,000/year and contribute 10% ($5,000) a year to a 401k plan that earns 9% interest, you’d have $2.3 million in your account by the time you’re 65.
If you just wait 5 years (what’s 5 years going to do, right?), and contribute the same amount each year getting the same returns, you’d only have $1.4 million by the time you’re 65. That’s 1 millions dollars lost, just fron starting 5 years later.
Don’t Beat Yourself Up
You can’t beat yourself up thinking about these kinds of things. I’ve already beat myself up about it, and what I’ve learned is that you can’t change the past. Beating yourself up will only consume more time and energy.
The only thing you can and should do, is make the best with what you have presented in front of you.
If you haven’t set up a 401k with your employer yet, that’s okay. Don’t miss out on any more valuable time and do it. If you have a blog and have yet to monetize it, do it. If you are trying to think of something to make more money with, stop thinking – and start doing!
How To Take These Thoughts into 2009
With 2009 less than a day away, it’s the perfect time to start thinking about what you want to accomplish in the New Year. What will you do next year that will help you earn more money online? Write more eHow articles? Write an eBook? Monetize your blog? Create a membership website? Partner with someone? Ask for a raise? It’s all up to you…
Ahh, it feels good to post again. Anyways, I just wanted to finish by wishing you and your family a wonderful and safe New Year. Let’s make 2009 the best year ever! Cheers!
p.s. My December monthly report, as well as my eHow monthly report is up next. Good times. Comments welcome!
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{ 63 comments (Click Here to Leave a Comment Below) }
Pat, that math is certainly eye-opening. The retirement example is actually quite staggering…it’s hard to believe how such a short time can make that much of a difference, but the numbers speak for themselves.
I look forward to your December monthly report!
Sarah H.´s last blog post..New Year’s Resolutions – The Key to Success
Happy New Year, Pat! You are definitely a motivator!
Jen Brister´s last blog post..Writing for Lifetips
Pat,
I think that the more important question is whether you could continue making $10K/month from book sales and other online revenues. I would much rather make $10K in the future than make $10K in the past
Online Dividends´s last blog post..Passive Income as of 11/30/2008
Money will come sooner or later. The idea is to stay motivated and continue to increase your passive income.
Vik Dulat´s last blog post..Top articles from 2008
It’s quite inspiring to realize that the second best day to start … is today! Yes, yesterday or last year would have been better … but today is better than next week or next year. SO let’s all kick our butts in gear and make 2009 a successful year on all accounts.
WriterGig´s last blog post..Maximize eHow Earnings with Affiliate Links
Pat–Thanks so much for this post. I too, am on eHow for about a year now. If I had had the successs you have had in two months–I would be elated! Just wanted to tell you that I have gained a lot from Anthony Delgado’s ebook–http://need-extra-cash.net/. I think it has some cool ideas.
Gayle McLaughlin´s last blog post..Avoiding the flu
I made a huge mistake when I started out. I was manually doing affiliate codes for one of my sites. I tested and triple checked my codes but didn’t realize that I had missed out on an essential piece of the code for tracking. So I didn’t get credit for any sales! Live and learn, it’s all part of the process
Wow….hadn’t thought about this before but it is very compelling. Thanks for reminding me to get off my butt and get more and more funnels of income in the pipeline. I have 4 projects waiting in the wings and they aren’t going to get done without me just sitting down and banging them out one by one. Again, thanks for this interesting way of looking at things!!
Yes, I’m the same. Ahhh it’s been a juggling act for me as a single Mum lately. But earning a passive income via e-books is PERFECT for my life style. I’ve put hundreds (if not thousands) of hours into my website and it’s looking awesome, but I always planned to write e-books to generate an income. I love the idea of earning money while I sleep! Actually I love the idea of getting some sleep! Pat, I really enjoy your blogs and the personal approach that you take. You’re right on the mark – it really draws me in.
with thanks from New Zealand,
Charlotte
Thanks for reposting this, it’s great info to know.
Thanks for bringing this to our attention. It has certainly opened my eyes. However in looking at your figures, what was it that took your income from $365 in August to $7500 in September? That is a huge jump from one month to the next.
a good reminder, Pat, thanks.
This article is insightful. Numbers speak, but so do time! That’s the morrow of this story. It’s like putting in a little more to pay off your mortgage sooner-from an opposite end! (And yes, I am as complex as that last statement)
Time is Money, and More Money! Go Figure.
Thelma
Pat,
this is really inspired advice. We need to get things going now. In the beginning it seemed like it was only 10 dollars a month or so. In the long run you lose out on the momentum you could have potentially had earlier if you had really got things going!
Thanks for the insight into the archives!
Chris
Can not really comment on this Pat, what’s done is done!
Wow. I was just thinking today “I really need to go back to my ebook and get some work done. Nah, It can wait a few weeks.” The truth is I think I lack confidence in my abilities, even though I know I have a good idea and a good amount of experience to back it up. I don’t feel like I’m an “expert” yet, so I keep hesitating. This is an eye-opener. I need to get cracking. Thanks Pat – I REALLY value your advice and openness.
Pat, thanks for resending this to your list. I am your follower and nice to see what happened back to your 2008 Journey. I am sure that you are doing great this year. When looking back, all these are great lessons to help us moving on.
Although I am a newbie, I am open-minded and keep reading, learning, and implementing Blogging tips and what successful ppl do. Keep up your great posts. They are my inspiration. Cheers!
Hello Pat,
You are a great mathematician. hehhehe… I will look forward for the next income report SPI.
By the way, I want to read again your ebook because I want to make it as a guide for my upcoming ebook…. But the problem is that, I lost the copy in my files, would you send to me the link in my email?
Thank you…
Blogging Access.com
Starting is the hard part, I am almost there.
Do you know what? I have read this before… or if not this post then the same story you wrote somewhere else. But thanks for sending me the email telling me about it again because it did make a big impression on me and it did and does make me determined to get a product out there asap. So thank you for that. I have your ebook on ebooks and am working on it:)But first I need to stop being such a perfectionist and recover from the Problogger conference in Melbourne.
They asked the panel of 4 (Darren Rowse, Chris Garrat, Yaro Starak plus Pip from Meet me at Mikes) what their fave blogs to read are and Yaro said Smart Passive Income. Isn’t that fab! 150 bloggers were taking notes. I was nodding sagely:)
OMG are you serious? I literally just jumped 5 feet into the air because I think you said Yaro said one of his favorite blogs was mine. That’s amazing! Thank you so much for giving me a huge smile and motivation to do even more now!
Pat
You shouldn’t be so surprised. Your blog is excellent and your honesty and candour is refreshing on the Internet. I ‘big up’ you a few times a week on the Warrior Forum.
Paul
I have one of those quoatable cards that reads: Your life begins today. How true is that? Thanks for the call to action! I’m a perfectionist who needs more doing and less thinking!
Inspiring – thanks for the repost.
Good post! I only found it though your email newsletter. It seems like other people found it through the newsletter at different times. Do different newsletters go out to different people at different times? That’s pretty cool that you can control it that much.
He sets up an autoresponder… so each email can be set up to go out at different times. For instance… this could be set to be sent 60 days after signup… so if you and I sign up 30 days apart… we will receive it at different times. Hope this makes sense.
You right man. Early to start, early to shine. Don’t put off what you can start today till tomorrow. Procrastination kills. Good advice Pat
You are a good motivator..
That was a great lesson and even though it was a hard lesson learned. It does have some merit to do things today instead of putting it off.
Dwight Anthony
Financially Elite Blog dot Com
It can be very disheartening to play the “What Might Have Been” game. I’ve turned down beautiful women before I was married, job offers worth 6-figures, moved states when I really liked it where I was. Going back to those times in my mind & thinking like I did at the time, I see a different me, a different set of priorities, way of thinking, ignorance & naivite. “All u can do is all u can do, but all u can do is enough.”
Pat, thanks for reposting this. Time can be your enemy and your friend. I guess that’s why you said “it still inspires me and irks me at the same time.” I’m looking at the words of Napoleon Hill taped just above my monitor… “Do not wait; the time will never be ‘just right.’ Start where you stand, and work with whatever tools you may have at your command, and better tools will be found as you go along.”
Bob, I like your comment “Start where you stand, and work with whatever tools you may have at your command, and better tools will be found as you go along”. I needed to hear (read) that. I’m currently “stuck” with some things in our business, and I need to just complete the tasks with the tools I have! Thx
Great post Pat. I’m so pleased with myself. I submitted my first article to infobarrel today. Thanks for your encouragement. Thanks for sharing your mistakes. I hope to learn from them. You now have learned from your mistakes, so don’t dwell on the past. Just keep doing you. I appreciate your hard work. Thanks again
Holy Crap ! I’ve got to get started !
What a great example !
This is exactly why expensive revenue producing projects sometimes don’t care to watch expenses very much. Example: An oil well costs money to bring in, but produces a lot of revenue. Now, you could carefully try to optimize the number of people and the maintenance and the speed to get it drilled at the lowest cost but you wouldn’t want to. You spend more, even if a bit inefficient, to make sure the thing gets drilled fast and nothing makes it take longer than it has to. That’s because whatever you save in costs you lose in time and the corresponding revenue.
Another example: If you let your customers pay within 60 days and you bill $10,000 per month, then simply changing your payment terms to 30 days also gets you $10,000 in profit. Same concept. You get your money more quickly.
Pat is exactly right, he lost one month of revenue, or $10K, by taking the option to wait. That’s probably not exactly true, because he probably spent the time learning or otherwise improving his revenue potential, but theoretically it’s true. The faster money moves, the more profitable it is.
Hence my reason to delay. With no money coming in from anywhere, I don’t know where to focus my time & effort. I don’t yet have a path to revenue, let alone an efficient path to profit. Hmm…
I definitely need to start monetizing my blog ASAP….:)….This is something that inspired me to start looking ways for online revenue…Definitely mistakes are always great lessons…
It may be true that you would have been earning this money sooner, but there is something to be said for waiting sometimes, too. I could repackage my dissertation, for instance, in a day or two and start selling it as an e-book. I could take my time with it and really think about the best ways it should be repackaged. I don’t want to turn customers off by putting out a crappy product quickly. I want to put out a quality product first so that they will continue to come to me. I think there are pros and cons of getting things done sooner or waiting until a bit later.
Thank you Pat, for bringing this under my attention.
I am trying to get things going but had the idea that every thing should be perfect and in order before I start. And discovering that you have only two or three brain cells understanding something about the internet, was some shock to this old dog trying to learn new tricks. But I am learning fast!
You are such a motivator as always!
God Bless!
Herman Grobler
Well written Pat. I love your articles.
Keep writting:)
Thanks Pat
This example is one I can use with my clients who procrastinate over getting more traffic and improving their conversion rate…. and of course the same applies to me too.
Thanks
Steve M
Thanks pat,
Thanks for such a wonderful article..keep writing:)
Hi pat,
very innovative article i like this so much….i expect more from you
Nice article, it is a real eye opener to what you can earn it really is the snowball effect. It’s just getting it started so it’s big enough to roll on it’s own.
Pat, I really like the way that you are bringing old posts to the forefront so that new readers can profit from your previous experience. Wasn’t that a recommendation from Derek Halpern? I’m still floored at the short time that it took you to get your income going. It looks like the ebook had a lot to do with that, although great content doesn’t hurt either.
p.s. If you saw this comment under another post I apologize as I miss-posted it.
- Thanks, Christopher
Great article Pat. I’m currently working on a product for my blog and articles like this help to keep me really motivated.
ok, I took your advice and wrote the ebook. Here it is: http://happyzine.co.nz/happy-green-ebook/
And I sold, maybe 50, if that. I tried and tried to sell the ebook, and I invested a thousand or so in design. I had it proofed and proofed. I got it endorsed. I launched it and promoted it, via press releases and blogs.
But so far, it hasn’t come anywhere near reaching the dreams I had for it. I’m a Mum trying to support my family, I’m a writer, I run an amazing good news website and I really, really need this to work. As in financially something good HAS to happen, like NOW.
So what do I do Pat and readers? What can I do to take this book, containing a message I wholeheartedly endorse, to the perfect audience?
Hi Charlotte, I feel your pain with the ebook, I’ve put a lot of time and energy into a couple of books, and hardly any sales. Very dispiriting.
TesFalcon has provided some great feedback and thought I’d stick my 2c in too (but not claiming to be an expert!). It’s really fun critiquing someone else’s site, perhaps you’d like to return the favour for my new sales letter: http://womenswaytowealth.com/success-kit (thanks!)
On yours I’m not clear what the book will do for me. I read your copy and the bit that looks like the biggest USP is “As someone who wants to make a positive difference environmentally, if you’re looking for ideas and inspiration about the powerful role you can play, this ebook’s for you.” Does this mean, if I buy your book that it will show me how to be more environmentally friendly in my day to day life? Or with my career or business as TesFalcon suggested?
Can you expand on “powerful role” and make that into a benefit?
One piece of advice that I’ve used for my autoresponder series is to write 10 reasons why someone should buy my product. Then turn each benefit into a short email. So, you could jot down some key benefits of buying your book, using the word “you” so people feel like you’re talking to them individually, make them into bullet points and put them at the top of your sales letter that would make it a lot more punchy.
I agree with all TesFalcon’s comments too, especially the “50% off” which devalues the book and gives the wrong impression. Tailoring a successful sales is a great idea. Do you keep a swipe file of letters and copy that have inspired you to buy? That way you have an instant resource of good copy to pull from when you need it.
Good luck with the ebook. Please post back and let us know how sales are going.
I had a feeling what I was going to find when I clicked your link, and I found it. The process of supplying a digital product to market starts best w a (1) hungry market. (Do your customers & site visitors want what’s in your book?) Next comes what I found might be your biggest problem: a sales letter that SELLS. It appears as though you’re attempting to write a long-form sales letter all by yourself; you even have MS-Paint drawings by mouse. Honestly, I think the problem is here. My best advice is to copy a sales letter that YOU bought from & change it to your product instead of what it was. But don’t leave it at that: TEST! Test everything: different headlines, different subheadlines, different offers, etc.
Some problems I see right off:
1) “Buy Green Dream eBook” in title. You want them to buy it, but the letter MUST be written from the customer’s perspective to solve their need. What’s your #1 customer need fulfilled by your book in the customer’s language? “Make money in a green career!”
2) “50% OFF SALE!” This screams ‘desperate’. Your sales letter makes the emotional / logical argument that your book is valuable, nay, necessary to your customers & of such value that buying today would be the best decision because it’s too valuable @ $20 & that you ought to charge $90.
3) “Usually $19.95″ You just gave a numerical value in their mind that needs justification. But maybe it’s not that valuable, hence the sale. Your customer’s thinking, “Hmm… A $10 eBook? Why not just wait until she gives it away free?” Instead, don’t mention any numbers until the end & let them put their own number on your value. “What $20?! That’s (cheap/too expensive)!” If they say ‘cheap’, they’ll buy. Otherwise not. Unless you’re overselling, then they’ll wonder why you aren’t charging the $100 that it’s worth. Remember the old infomercial line, “Now how much will you pay. Altogether it’s worth $300, but in this special offer it’s only $19.95!”
Ditto here… *sigh* scrambling to find ways and restructure my site to see how I can monetize, based on simple math, just with proper and simple affiliate/adsense implementation alone, I figured I lost at least 4-figures for not doing things right from the start.
Dave
Man, this is NOT fresh content. Got this by email a couple of days ago, but was written in 2009…Got to get that high speed internet!
Pat you are so wise. TIME IS MONEY. Thanks for the reminder.
-Rochelle
Simply Natural Ideas
Pat – This is a great post my friend! Although, it was written a few years ago… it’s still relevant and inspiring. I’m very thankful that you shared the link to this article again.
Blessings to you and your family. Happy Holidays!
Hey, Pat. I checked this post out for the first time through the link in your newsletter. Great post! And it’s a wonderful example of how older content is still very timely and relevant. Great thoughts for starting a new year.
Merry Christmas and happy holidays to you and yours.
Devon
Hi Pat
I guess we could all say ‘if only’ about something in our lives, but if you want to make money, you have to get started sooner rather than later.
Dee
I was inspired to take immediate action. Thanks Pat!
Pat, thank you for your eye-opening articles and wish you good luck!
I believe applying monetization right from the moment I start the websites, for me waiting for the traffic or people to notice the website is just a time consuming so I follow the strategy of applying ads over the blog right from its inception.. Its Now or Never..
Pat, I agree with your suggestion on starting earning asap.
However, at the very early stage of a blog, such as mine, an educational blog, other than Adsense, there are not many other monetizing choice to adopt. For a few visitors a day, is it worth to strap ad banners all over? So your visitor could be send away by simply clicking on a google banner that may not earn even a dollar in a month? I’d say NO for sure.
I’m more inclined to monetize through other method that has potential to go big and uphold a brand, such as own product, membership etc.
I’d like to wait till I find something less-intruding-than-adsense to apply.
Thoughts?
Grace
Instead of sending visitors away by strapping google ads all over from the very beginning, I’d like to wait till I find something less-intruding-than google to apply.
I’m more inclined to monetize through ways that’ll potentially go big and uphold a brand, such as own product or membership etc.
If you choose monetizing method wisely, it might bring you more fortune in less time. Some monetizing methods might earn you small amount of money in the early stage, but they might downgrade user experience to some degree and in turn slow down your traffic growth.
Any thoughts?
Grace
I want to know where to get 9% on my ira!
Its 2012, and thanks Pat for sending me the link to your post. I am totally new to all of this- from Market Samurai to setting up a blog, etc.
You are so right Time is Money, and the sooner I or anyone else begins taking steps the sooner the reward will come. I guess my problem is that there is so much information out there from your blog, and others… It becomes overwhelming.
Where to start, what to do first? So many questions, with so many answers.
I think the trick is to just start somewhere!
Thanks again Pat for taking the time to motivate us!