SPI 015 : Types of Passive Income Generated Online and What to Expect From Each – Part 1

The Smart Passive Income Podcast Logo

In this session of the Smart Passive Income Podcast, I investigate the different types of passive income streams that can be generated online, and what you can expect from each.

When I say “what you can expect”, I mean:

  • the costs that are involved
  • how one might get started
  • what kind of results are typical; and
  • how long it might take to see those results

A lot of people have been emailing me and sending me message that this blog doesn’t have a good starting point for newcomers.

Well – they’re right.

I don’t.

This podcast session, along with the other parts that go with it, will become that starting point – a place to give you an idea about what you can do and how you can begin to work towards earning a passive income online.

During this particular segment of this series, I talk about:

  • What I believe is the fastest and easiest way to make money online. You might be surprised!
  • An example of a totally passive, 100% hands-off income stream that continues to grow.
  • How I totally failed in my first experience with affiliate marketing.
  • Why affiliates are important and why 99% of the work is already done for you.
  • What you can do to get started, even if you don’t have any money at all.

Right click here to download the MP3

Items Mentioned in this Session:

As I mention at the end of this session, Cliff Ravenscraft from PodcastAnswerMan.com, a dear friend and frequent guest on my podcast, will be dedicating the entire month of March to helping a group of students create a successful podcast too. He’s helped me so much, I feel that he and his Podcasting from A to Z course definitely deserves a mention. It’s the least I can do for all of his help.

If you’re interested in Podcasting the right way, learn from the best. Check out Cliff’s How to Podcast from A to Z Course by Clicking Here. (This is an affiliate link)

As always, thank you for your support, and I wish you all the best. Cheers!

Transcript:

Click Here to Download the Transcript (PDF)

  • http://www.journeytopeak.com Jia Jun

    Thanks the hardwork Pat Flynn.
    Agree that when we intent to share something for example: make money online, we ourself should making some/many money from online first before we should make a blog sharing how to share how to make money online.
    We readers need to learn to analysis and understand which to listen and which don’t. If don’t, we will end up losing lots of time reading lots of similar information that barely help on building a money making channel online especially Passive Income online.

    • http://www.hectorjcuevas.com Hector Cuevas

      We can’t take in information and be productive at the same time. you’re so right. This reminds me of Pat’s “only 100 words” post.. :0)

  • http://www.lifestylebusinesspodcast.com Dan

    Agreed RE: MMO blogs without experience. People underestimate how much time their “track my progress” blogs will take, their time is better spent on building a real business.

    • http://www.devinelder.com Devin Elder

      Hi Dan,

      I agree that one can really get wrapped up in a ‘track your progress’ type blog – I have one and it’s a real challenge not too spend too much time on it. However, it has allowed me to network, meet people, and I’ve actually learned *alot* from interacting. I would definitely recommend against starting a MMO site if you’re *brand* new, but once you’ve got some cash flow coming in (which can take awhile), I think it can be valuable to both the author and readers.

      Here’s to your continued success with LBP!

      - Devin

      • http://www.lifestylebusinesspodcast.com Dan

        Hey thanks Devin. I agree with you here, I’ve seen it work a lot for people who have some experience, especially when it can help them to develop their own voice.

  • http://michelledancer.com Michelle

    Sounds like this is going to be really useful. I only discovered your blog a couple of days ago and I’ve been randomly flying from one article to another ever since.

    A “starting point” will be great, even if I already spent far too long reading everything in the wrong order :)

  • http://www.youngprepro.com Onibalusi Bamidele

    This is so perfect and timely Pat, I will be downloading and listening to this right away.

  • http://www.morethanyourjob.com Stefano

    Great to already have the transcript, Pat! I’ll read it now, and leave the mp3 for my next jogging session tomorrow early morning (have all of your podcast in my iPod and enjoy listening to it while running …); after that, again, the transcript will be great for reviewing the hilights (that’s how I usually follow your podcast).
    Thanks for this content!!

  • Brian Lima

    Pat, Yes! So looking forward to the podcast today while at the gym! Always useful and inspires me to stay focused. I “see” something big coming from this series of podcasts.

  • http://thegoldmedalmarketer.com Andrea Bolder

    What an informative post. There are so many ways to make passive income, you just have to make sure you are focusing on a few things instead of everything or it can get overwhelming. I was able to pick up a few ideas from your podcast…looking forward to part two Pat!

  • http://www.babydiarrhea.us Jon

    Thanks Pat, another very informative post!.

  • http://www.commonsensemarketing.net Sarah Russell

    Great informative podcast, Pat – thanks for sharing!!!

    If it’s helpful (and feel free to delete this comment if it isn’t appropriate), I put together a free, no opt-in report on all of the different business models I tried when I was first getting started online, including what they are, pros and cons of each and who they’re best for. You can download it here:

    http://www.commonsensemarketing.net/Guide%20to%20Internet%20Business%20Models.pdf

  • http://www.creating-passive-income-streams.com Cory Buckles

    Another great service to your fans here, Pat. One of my biggest time-wasters is constantly checking my RSS to see if you have any new content. Of course, when there *is* new content, it’s never a waste of my time to read it. :) Keep up the great work, Pat!

  • http://www.ebestheartratemonitor.com Bryan

    Hey Pat,

    This is timely. I think it’s so true about what you said that speaking from experiences give you more authority about making money online.

  • http://pennyonthefloor.com mike

    great information. infobarrel is new to me so i’ll have to check it out.

    • http://pennyonthefloor.com mike

      … and i totally agree about ppc. i’ve had a rough time with it. i’m playing around with some ppc using bing’s adcenter – i think slightly less competitive than google adsense, but i’m still having a tough time getting any ads to convert. also, as you mentioned, i don’t think you can link directly to an aff link anymore, i think you have to go to a landing page on your own domain, but i’m not 100% sure about that.

  • http://hedgehoncho.com HedgeHoncho

    love the podcasts, keep them coming. maybe bring back the videos too!

  • http://www.learnwithtim.com Tim

    Great podcast. I just started my first niche site as well. We’ll see how it goes!

    Any future idea of putting your podcast on the BlackBerry Apps?

  • Nelson

    Pat,

    Love the podcast. I wanted to add your podcast to my Stitcher feed on my iPhone but I couldn’t find it. Would love to see you publish your podcast there. Keep up the good work!

  • http://chrisalta.com Chris Alta

    I remember learning all of this in my first 2 months when I was trying to teach myself everything and you covered it in about 35+ minutes..where were you when I was in need man! Haha jk jk

    Nice podcast though Pat digging the simplicity. I actually just made about $41 with clickbank after setting up some adwords campaigns. The only reason I did it was because google sent me a free $100 coupon. However being a newb I had no idea that google would keep running my campaign even after my $100 ran out..so I got over charged an extra $70! The clickbank money still isn’t tangible since you have to make 5 sales from 5 different cards. So I’ve still yet to actually make any tangible money but hey I”m not too concerned about that since I’m building my community.

    I feel I’ve been fortunate enough to realize that if you get in this industry without caring about people you’ll ultimately fail. You’re just a reminder that if you care it pays off in the end!

    What would you consider your passion to be? Making Money Online? I know you started with the LEED exam..was that your initial passion when you got started online?

    cheers!

    -Chris Alta

  • http://www.ChristianHeretic.com Drew Costen

    Very informative, thanks for that. And I don’t think I can express just how grateful I am that you take the time to include the transcript. I’ve never been able to listen to more than a minute or two of a podcast. No matter how good it is, I just don’t like audio presentations in general (I can’t stand listening to the radio either), so thank you.

  • Tim Brendel

    Great session Pat! This type of info is great is really good for helping people that are new to internet marketing. Take care.

  • http://mybrisas.com Luis

    This is a great resource. Hearing you state 150+ articles really hit home. This could be a great benchmark while picking out a niche site. Can you think of 150 things to say about a topic? If you can only think of about 10-30 articles, then you might want to consider a different niche topic.

  • http://www.internetentrepreneurconnection.com Hector Avellaneda

    Hey Pat this definitely gave me a crystal clear understanding of your niche duel sites, man! I know there’s a lot more that goes into but what you shared definitely has some meat on it. I’m really looking forward to the followup podcasts on Passive Income.. keep’em coming!

  • http://www.vicdorfman.com Vic Dorfman

    Pat,

    This is great content and I’d expect nothing less from you.

    But I have a problem. I don’t care about helping people. I ONLY care about making money. Now… I realize that the more value I provide the more that’ll come true but I just have to take a stand against this idea that we as Internet Marketers and entrepreneurs have to adopt this altruistic mind set.

    THAT’S the kind of thing that gives us a bad name.

    Everybody’s out for themselves – it’s human nature. And I see nothing wrong with it. Why the self-deception?

    Please don’t misconstrue this comment as confrontational!

    I just want to clear the air because I know a lot of people feel the same and I’d love to hear your opinion on this issue.

    Best Wishes,
    Vic

    • Pat

      Funny though, because it seems like everyone who has helped the most people, who has changed the lives of many for the better, has made the most money. At least the ones that can sleep well at night, like myself.

      If money IS the primary motive (and don’t get me wrong, it is A motive, obviously), then it’s going to be obvious in your content, in your approach and when building relationships, and it’s just not going to work.

      At least with online business, where doubt and “scam” and hesitance is people’s automatic default feeling of us when we all first meet in this business (in other words: guilty until proven innocent), there’s absolutely no way to succeed unless you help others and prove yourself. I’m not going to give money to someone who is in it just for the money over someone else who has genuinely taken the time to build a relationship with me and provide me with true and honest value.

      If you don’t care about helping people, then you don’t really care about making money in the long term, you just want it now.

      It’s human nature to be out for ourselves – yes, but you’re generalizing. Because again, it’s those people who go against that, who care about others first, genuinely, who will find success (and again be able to sleep at night).

      My 2 cents.

      ;)

      • http://ryanlucht.com Ryan

        I’m with Pat on this one. Here’s another way to illustrate his point:

        I’ve been reading a great new book called the Millionaire Fastlane by MJ DeMarco. I’ve been a member of MJ’s Fastlane Forum for quite some time before the book was published, so I pretty much had to read it. It’s a great book, you can find out plenty about it with a google search.

        Anyways, he calls this the “Law of Effection” (yes, with an E). The only businesses or people who can make millions are the people/businesses that can reach and help the most people. If you have a website that helps 5 people, that’s not going to get you rich. A website that helps 18,000 (like this site’s number of RSS subscribers) is going to make a lot more money.

        That’s why I have no reservations about signing up or buying things through Pat’s affiliate links: his stuff helps me a lot so I feel fine reciprocating.

        • http://www.tacticalcashflow.com Howie

          Great book.

          I just spoke to MJ a few days ago.

        • http://www.artofwoodshopdesign.com Bobby Hagstrom

          This kind of sounds like Ayn Rand’s virtue of selfishness argument, which is that selfishness, properly defined as ‘concerned with one’s own interests’, should not be looked upon as bad, or it’ll lead to your own demise. That being said, even caring about others is “selfish” because you feel better when you serve others voluntarily.

          I look at this as a value exchange. I provide value in exchange for both money and fulfillment. But the value I provide others I must CARE about or I won’t be as motivated to do a good job. I want to put myself in people’s shoes as much as possible to completely understand what they need so I can provide it. So ultimately, if you take it far enough, it is ‘selfish’ but you’re still caring.

      • http://FoolishAdventure.com Tim Conley

        Pat,
        It seems to me that you and Vic are using different definitions of “help.” You seem to be using it in terms of providing value and Vic seems to be using it in a charity context hence his use of “altruistic.”

        Easier to have a conversation when each side is using the same definition. Many companies make millions and billions without “helping” people, but by providing value. People can succeed monetarily by marketing by the numbers.

        I know many people see a distinct line between their business and their charitable activities. A business makes money by providing value to customers. Then the owner takes some of the profit and gives it to charity.

        I think many of the people who are disagreeing with Vic are doing it out of an emotional response to his blunt statement and through using different definitions.

        t

      • http://www.creating-passive-income-streams.com Cory Buckles

        There is nothing wrong with seeking personal gain. It is human nature to an extent. We are built for survival, and that means we have a strong, natural sense of self-preservation.

        That being said, what you have just described is not human nature. One of the human species’ most important evolutionary developments is our social nature. Our normal tendency is to form mutalistic symbiotic relationships–the proverbial, “I’ll scratch your if you scratch mine.” Not only is it the way humans naturally tend to interact, but it is the fundamental basis of economics. For transactions to occur, each party must derive more value from what they receive than from what they give up. If one party is unwilling to “help” the other in some way, no transaction will take place.

        What you are describing is not mutualistic, but rather parasitic behavior. (I’m not trying to call names. I’m using these terms in their literal, scientific sense.) You want to receive benefits from your “host” without providing them with any benefits in return. If it were human nature to behave that way, the very idea of commerce as we know it would cease.

        From your comment, you obviously think that Pat is full of it when he says that caring about his readers is what makes him so successful. I can personally verify that Pat has earned more money from me than any other internet marketer ever has or will, and the reason is that he has been so altruistic. I realize that Pat’s outpouring of information and encouragement is valuable and helpful, so I seek to protect that information source by reciprocating. Whenever possible, I make purchases through his affiliate links, and I routinely send him link juice from my own blog (although I don’t have much to give yet).

        Now, I may be way off on this last part, but it’s the impression I get. When I read your comment, I immediately envisioned you as the stereotypical Yanik Silver type–the kind of internet marketer who finds something to promote off ClickBank and slaps together a one-page promo site in FrontPage or DreamWeaver. I think everyone knows the pages I’m talking about. A narrow vertical column down the center with all the text centered, huge, bolded, and italicized, with half a dozen embedded videos about how great the product is. Not a single useful piece of information, just a never-ending sales pitch and a “Buy It Now!” button. And right after I get done laughing, I head back to SPI to read more useful info in one of Pat’s free blog posts than you would ever dare to part with, because you’re too worried about #1 to ever actually give anything back to your customers.

        With people who help you, you watch out for them. With parasites, though, you figure out how to get rid of them.

      • http://www.whysoblu.com Gerard Iribe

        Wow, and I thought I was getting short! I get what Vic is saying and totally get what you’re saying Pat. The problem that Vic is going to run into is that people will read this and think he’s a prick. Why should they buy from him or why should they care? No offense, Vic.

        Of course everyone on here (at least I think) is out to make some money in their respective niches, etc., but the way Vic laid it out was NOT tactful. That’s the keyword TACTFULNESS.

        I know what he meant, but the language in the post looks bad. It’s kind of like when you write a letter or an email when you’re angry. You can feel the tone. Vic’s tone in that post came off as crude, selfish, and crass.

        IMO, and again, no offense to you Vic. :)

        • http://www.blogging-the-beginners-complete-guide.com Karo Itoje

          I was thinking exactly the same thing. Vic has not said anything bad, except to express his feelings exactly the way on felt it. I like the sincerity though, unfortunately many people misunderstood him.

          You don’t necessarily have to “help” people to provide value. I’ll definitely go get a definition of “helping”. But there are many people just like Vic. I have a very successful friend online who calls himself “Internet marketer” not a “Blogger”.

          You don’t have to write and write to provide value and make money. And I mean make money that you can feel fulfilled enough to sleep well at night. You only choose to.

          Now an Internet marketer is mostly all about selling. Where many get this wrong is that they don’t bother to use the products they sell and provide a proof of it effectiveness on their sales pages. If they do they would be providing great value without necessarily helping.

          The helping people part is mostly associated with Blogging or a theme based content site. Then you have to write and write. Covering your niche or theme in detail, going the extra mile to answer comments, emails, questions at different forum, just to build credibility. I say just because honestly not everyone who does this actually cares about helping people, they do it because it is required.

          Now a theme or niche site (broad) requires that to succeed to run the long term which it is for. And usually it brings in more income eventually because once you’ve been able to build credibility once, it lasts you all through your life term online. Every single projects you starts picks up almost immediately. You need patience to see all this through, whereas, that is not necessary to be a successful internet marketer which I believe is Vic’s point.

          Internet marketers wouldn’t have a bad name if they would promote only a product that they’ve used and are satisfied with. Or package their own products of a system that is really workable and sell it. No painting it to be what it is not or a get rich quick system. Tell potential buyers exactly what they will find in the book and who it is for and who it isn’t for. That way only people who need it will investment their money. And there wouldn’t be cases of customers claiming that they’ve been scammed.

          I mean would we have said Pat is wrong if he had decided not to give all the techniques that works for him free, instead package it in form of e-book and sells to us? As long as the information is authentic and workable no harm is done. And great value is provided.

          At times some people send emails to ask how much they will pay for free information they find on some of our sites. So it’s what is expected. We only choose to go the long but very rewarding way. But we shouldn’t then say except everybody go that way they wouldn’t be doing good business on the Internet.

      • http://simplylearnbusiness.com Nick

        Pat is completely and totally right.

        Think about it. You’re getting help from Pat. If his primary motive was money you’d be paying for his podcasts and blog posts. But it’s not. So you get all of this help.

        I have an Internet Business blog too. I take some ideas of Pat’s and add my twist to it. Thanks to Pat I know so much about it. The least I can do is try to help others who are in the same situation that I was in. I wanted help and I got it for free. So now I give information to others for free as well.

        If you only care about money, I can sort of understand. I have very entrepreneurial thinking sometimes. But the truth is. Pat has given you so much information. Your payment to Pat and the Internet is to give a little of your knowledge into a blog or article.

        I’m not sure if I’m making sense to any of you. But I believe strongly that money can’t be the primary motivator for people who benefit on Pat’s free information.

    • http://www.KinWorm.com Marie @ KinWorm

      Wow! I find it hard to believe that everyone is out for themselves and just thinking about number 1. I agree that some people do and you can normally spot these types a mile off when you read their content.

      I’m in a situation where I need to start earning some money now because I’ve been a stay-at-home mum for the last 4 years and we’ve survived on 1 income which has been tough at times. However, my first thought isn’t about money. I first started my blog because I was desperate for something non-mummyish to do – a bit like trying to claw back some identity. I had a couple of other blogs I started before my current one which were never monetized at all.

      If money is your biggest inspiration, how will you keep up the enthusiasm or truly be passionate about what you do? Surely this will be reflected in your work online?

      I guess I just find that thought difficult to understand. I really don’t feel I could be motivated if money was the number 1 factor in all of this.

    • http://www.smallbusinessunleashed.com Chris Green

      Hi Vic

      Interesting comment “Everybody’s out for themselves – it’s human nature.” Could you show me where you see this working successfully in any kind of community?

      We were not created that way. We were created to live in community and work together.

      Being out for yourself can lead to all sorts of issues… selling crap to people that don’t need it, selling to people that can’t afford it etc. Who wants that in the world? Not me.

    • http://yourfitmoney.blogspot.com Roger

      Vic,

      You provide a service but you don’t care about helping people. The bad name you speak of comes from people who don’t care and are only out for themselves. Not the other way around. Yes there are some people out there who say they care but really don’t and are saying that just to gain trust. At least you are up front with that. That makes you better than those guys….a little. However, i still will not do business with you.

      Roger

    • http://www.biculturalmom.blogspot.com/ Chantilly Patiño

      Wow! I am disgusted by this comment! Capitalism does have it’s benefits (when balanced) and making money is certainly beneficial, but I find it disturbing whenever I hear an individual say that helping people is unimportant and a waste of energy. This kind of thinking is exactly why we’re all complaining that the top 10% carry the wealth while we have poor overflowing the streets. It breaks my heart to know that there are people out there who fail to value others. Pat, keep doing what you’re doing! There are a ton of us out here who can tell the difference…those of us with our eyes open to a radius wider than ourselves. Your efforts don’t go unnoticed…enough said!

    • Renate

      Well, I’m also with Pat on this one, and I will say it in the words of Napoleon Hill: “There’s no such thing as something for nothing”.

      Renate

    • http://www.fitnessbusinessinterviews.com Erik R

      Vic,

      I’ve gotta give you credit. You came out firing!

      I find it hard to believe that your only out to make money and not help people. The reason I say this is because the whole notion of making money is based on helping people. Any product or service that is provided is to help someone, or provide a solution to a problem.

      Whether it”s selling a car or teaching someone to knit, it helps someone else. By that rationalization, the only way you can ever make money is by helping. Even though you say you don’t care about helping people, you still do. If you provide even one small thing to sell, you’ve helped someone. The more you sell, the more you help, and vice versa.

      I’m not too sure that everyone is out for themselves. Maybe to a point, but not always. What about someone who helps an old lady cross the street? Chances are that is not going to benefit that person helping too much. It’s just a good deed.

    • http://www.moneycrush.com Jackie

      Vic, so if you were guaranteed to achieve your financial goals by putting out a really crappy product, would you?

    • http://Www.thewisebuck.com Mike

      The main reason Ive read this site is because I believe I’ve developed somewhat of a friendship with Pat And he has awesome stuff! On the 2 occasions I’ve emailed him, I’ve received a thoughtful 4-5 paragraph response. While I don’t expect or “deserve” it – there is a level of respect that can only be gained through giving a S#%^.

      To me that’s very valuable, more valuable than someone pounding on me to buy the next product they launch – whether they care about me or not. The difference is that I ‘d buy something from Pat more so than from someone who just didn’t give a rip.

      And, you think people can’t tell?? Don’t kid yourself.

    • Andy

      You definitely came out firing. I like it.

      For the most part i agree with you, in that, there is nothing wrong with going out to make money as your primary motive. Some people do this and can be very giving people in the way they go about it. Im not sure if im different to other people, because i can do something to “add value” or to “help people” but at the root of it, the only reason im doing it is to make money. I wouldnt do it for free. And i cant see how it would effect the quality of my content or service, whether you truly care or not. If you dont give it your all you will fail because you provide a shitty service. Or you would make alot less money, and if money is your motivator, you want to provide a good service to make a bunch of money.

      All of that being said, there are many professions where people actively go about trying to hurt other people and make money doing so. One example is playing poker for a living. All entrats participate in there own free will. And the goal is to cause your opponents suffering by taking there money. I played poker for 4 years professionally and made decent money doing so (100k+ a year). And i had absolutely no problems doing so morally. I was ok with that it was a 0 sum game and i was actively contributing nothing to society.

      Ive recently quit playing poker in search of other revenue streams, why? Because the money isnt as good anymore :-)

    • http://lyndsysimon.com Lyndsy Simon

      I’m with you, Vic.

      I’m an Objectivist, and I started doing IM work to make money, period. If I can do that while helping someone, that’s awesome – but helping someone isn’t the purpose of the work. Feeding my family is the purpose of the work.

      Keep it up, man. Altruism is a dirty word.

    • http://www.CodrutTurcanu.com Codrut Turcanu

      I understand your logic and worry, you’re not really alone, that’s why there are companies willing to hire people like you for data entry tasks, research and writing. So you are not left alone. :)

  • http://www.flyaoamedia.com Chris Palmer

    Vic and Pat, or whoever cares and reads,
    I don’t usually comment on stuff, but I usually read what Pat has to say for one reason and one reason alone: He’s a cool guy.

    He’s a real person making real money online. He’s not a ‘company’ he’s not this invisible guy out taking money from people. He’s a real person, and writes his content from that perspective.

    I think the essence of what we’re talking about here goes back to several very well known companies in the world: Walmart and Ford. These are, I must admit, some of my favorites from a business perspective.

    Look at Walmart: Started by a man that focused on giving people wonderful prices and always putting the customer first. Would you believe they also treat their employees like people too? Imagine that! A huge corporation, perhaps the most impressive of all time, actually has a heart? Yes, it’s true.

    Look at Ford: Henry Ford started this company with one dream. He believed every American deserved to have an automobile. Does that mean he had to give them away for free? No way, of course not. Economy is an exchange of value. But it was a very simple belief at the core of it, a very heartfelt belief about freedom and ability.

    If that same heart doesn’t live in Ford today (the only major motor company that didn’t take bailout money) then I don’t know what does.

    Now, it’s ok, great and fine to make money. But your life will suck if you’re a blood sucking leach with no purpose. You’ve got to have a real and driving reason on WHY you are doing business, especially in such a day and age of transparency as we now have.

    It’s becoming less about the best product these days, and more about the best culture and best ‘feelings’ (look at Apple, Mini Cooper, and other fanatically followed brands).

    Whatever company misses that, they’re toast. Big OR small.

    Purpose and culture sell products, not people that simply want to JUST make money. We all want to do that, but few of us can take our passion and change the world.

    • http://www.travelpersonality.com William

      Chris,

      Seriously? Wal-Mart?? I’m going to give you the benefit of the doubt and merely hope that you are only implying that Wal-Mart WAS a good company (very beginning) and do not contest that they still are. Because, in the end, Wal-Mart has been a complete tragedy to the American economy. They saved customers a few bucks on the stuff that they bought, but does anyone remember that it was American jobs that were sent oversees when Wal-Mart stopped selling only American made products? Now, how precious are those few saved dollars when you or your friends have been laid off because everything went to China? What about all of the mom and pop shops around the country that were put out of business that they had once had for decades? What about the strong, century old businesses in manufacturing that were driven to failure by Wal-Mart greed and demand for cheaper wholesale products that companies couldnt keep up with? The list goes on and on. Thankfully, that is not what this discussion should be about.

      Pat is a true guy. He was one of the first that I found when starting online marketing, and continues to be a favorite.

      Pat, I look forward to listening to this podcast, but before even starting, I wanted to include in the debate that there are many non-transparent people earning money online, and the fact that you are not only visable, but share your information as well as successes.

      HBRIdeacast recent posted about the value of content and whether any content should be free. Its certainly not free to produce, and well produced content isnt cheap. Allow Pat to make a few bucks for the FREE content that he is providing. But in the end, when Pat does such an excellent job and makes a really nice income for being faithful to his audience, dont scold his business model. Either learn what works for you, or get out of the scene. If you expect something for free then ask yourself what you plan to contribute to online content world for no return.

      • http://www.flyaoamedia.com Chris Palmer

        No, I still mean Walmart. Regardless of what people think they’ve done to the Mom-and-Pop shops, I used Walmart as an example because they are not exactly a ‘touchy feely’ corporation. They make a ton of money and they have one of the most impressive companies of all time, but they are still founded and grounded on key HUMANE principles.

        I do not buy for a second that Walmart is bit and bad. It’s really silly and childish to fight such a progression in logistics as Walmart has made. They are a dang smart company, and anyone to say otherwise is hurt by something other than the truth, in my opinion.

        So yes, Walmart. And just as many people that lose their business to Walmart, just as many communities thrive because of the extra jobs.

        • William

          Here is a pro/con debate about Walmart. Take some time to read and really understand their impact on the economy. I’m not arguing that they arent smart, I believe that they are. So was Wall Street when they created the derivatives market that brought down the martgage markets. That was genius in design, but horrible in effects. Same goes for Walmart. Read the article…

          http://www.independent.org/events/transcript.asp?eventID=125

  • http://unlockthedoor.net Stuart

    Damn, that was good; I had thought why there wasn’t a ‘starting point’ on this site, so that answers my question there.

    I wonder, Pat, perhaps this link can go onto your Homepage as an ‘official starting point’? Say in the top right corner, where somebody can click on it straightaway and discover what they need to know? Just my two cents :-)

  • http://www.bojandjordjevic.com Bojan Djordjevic

    What about CPA?

  • http://www.miramesahomesblog.com Paul Caparas

    Hey Pat,

    Great podcast. I have a few Real Estate websites that isn’t generating passive income but I’ve been thinking about getting in to it and this podcast was very helpful on how to start. Thanks for your time.

  • http://www.vicdorfman.com Vic Dorfman

    Whoa…look what I started!! :-) I feel so internet-y!

    Here’s where the misunderstanding lies….

    People think that if your motive is money then it’s sleazy, salesy, shortsighted and will absolutely come through in everything you do.

    Not so.. I’ll gladly pick on myself for the sake of argument.

    I was a semi-professional opera singer who was tired of fixing peoples’ voices in my studio after incompetent teachers got through with them. So I created my own digital product that teaches beginners the *correct* fundamentals of opera singing.

    (www.singoperanow.com) if you’re curious.

    Never once did I think throughout the months of planning and practicing and rehearsing that I’m going to help somebody improve their voice today and avoid the mistakes that nearly all beginners make.

    No. I thought about how much closer this got me to quitting my jobs and – I’m serious – embarking for Thailand (September baby!).

    But in order for my product to earn a good reputation and sell well, it has to deliver. So in order to make that money to quit these horrible, boring, soul crushing jobs and live the life I want, I made the best product possible using all of my knowledge and experience.

    If it helps somebody, I’m glad. I also created my product and conduct my business honestly and add real value to a niche that, as far as I’ve been able to tell, is full of demand to learn opera and I’m the only one filling it!

    Believe me guys, I tried convincing myself that I don’t care about the money and even wrote posts on my blog about it. But the only people I can’t lie to are my dad and myself.

    Remember, there’s no contradiction between a motive for money and a fantastic product/service.

    http://www.youtube.com/watch?v=7GK_fRM8SO0

    • Albert

      You could earn money doing it that way, but you forget the value in actually caring about your customers. You don’t have to care about helping people if you have a great product but it’s like entering a boxing match with one hand tied behind your back.

      Sure you might win and get a bunch of money if you’re as good as Mike Tyson but wouldn’t it be a lot easier just fighting with two hands?

      How do you think Zappos was outselling Amazon on the exact same products when Zappos had them priced higher than Amazon.

    • http://Www.thewisebuck.com Mike

      Yea, but you have to be able to connect with PEOPLE. It’s called Social media for a reason. Maybe it works for you – but you just come off a step short of sleazy. Don’t mean to be rude but I wanted to tell you exactly how you portray yourself baby. Now go get em…

    • Colin

      Way to start something man, but I’ll agree with you, when I first started internet marketing is was always and only about the money, even still my primary motivator is to make money, so I’ll totally agree with you there.

      But what I have realized is that you don’t need to care about people (like you said you didn’t with dealing with opera students), in the end this is a business and the purpose of a business is to make money. And what I’ve realized is that you don’t have to care about people but you MUST create a product of value. And that is all.

      As long as you have a product that helps someone, they will continue to pay for it. It doesn’t matter if you care about them or not, but it MUST deliver, otherwise you are just a spammer and snake oil salesman.

      That’s my 2 cents

    • http://www.tandblekninghemma.com Johnas

      This is a really intresting topic. I bet that your product provides value, even if you don’t really care about helping anyone I am sure you do, otherwise it probably woulden’t sell. I know a lot of people that only focuses on PPC, with a direct link to affiliate products which does not really help people in that sense?, but it helps the people that are running these offers, does that count?

  • http://www.unleashthewealthwithin.net/ Azzam Sheikh

    “Everybody’s out for themselves – it’s human nature.”

    Maybe the original commentator should have rephrased the point but it is a fundamental reality in commerce.

    There are exceptions in the world no doubt that were built solely on the basis on solving a problem.

    Apple has a thriving community but the history will show that at the brink of bankruptcy they bounced.

    Any business answerable to investors or share holders has money as the primary objective, how you go about doing that is very much different.

    Coca Cola has a cultural following in Brazil, India, etc and they reward and engage the community in different ways but the primary intent is the same, to make money.

    They spent $1b in when they are the official sponsor for any of the word cup’s. Most of that money is spent in marketing but coca cola is brilliant in marketing within festivals and building community spirit, they even allowed real fans to have ownership of the facebook page. But that does not decease the truth of the matter, money is at the core of it.

    Colonel Sanders did not start KFC with a community spirit.
    McDonalds was on the brink of bankruptcy until the franchise idea came up
    Sylvester Stallone wrote the script of Rocky after watching a boxing match since he only had less then $50 in his pocket to live on.
    The list just goes on.

    Why is there something wrong with the primary motive as money?
    Our experiences online and offline has contaminated that perception that we have of those who display that primary intent since we have so many times been done over for the sake of money i.e. insurance, bank, retail, restaurants, etc. Poor services let us down to an extent that we start to despise people, businesses and services that do not display community or customer service orientation.

    However if a marketer is good at what he/she does and is ethical in the process then even with that primary intent can deliver a community focuses service/product that builds and grows a loyal following.

    Zappos is one company that is intending to change that culture but that is not to say that money is not a primary intent.

    • Albert

      Actually, if you read Tony Hsieh’s book about his role in building Zappos, you’ll see that money wasn’t the primary intent. He was already rich before the Zappos adventure that nearly sent him broke in order to build a company based on friendship and community instead of ‘the bottom line’.

      • http://www.unleashthewealthwithin.net/ Azzam Sheikh

        I agree with the pointer of Zappos, the same applies to Google. A company can have multiple intents as primary including Money, there is nothing unethical about this.

        Money is not the mother of all evils, the abuse of it and the abuse of how you acquire money is evil.

        in the internet marketing and blogging world you will have people advising on methods that they have yet not tried themselves or mislead people in what they say. This is what ruins it for people.

  • http://www.semmyonlinemarketing.com semmy @ Make Money Online

    Hi Pat thank you very much for this audio!! I’ll download it! thanks for your share!!

  • http://dxtr.co.uk Dexter

    I think motive is determined by your level of success. I see many people write on blogs about ‘giving” and “sharing” as being their top priority, or citing examples like Henry Ford. When you take a closer look, you’ll see that they’re now actually in reasonably comfortable positions, and this give them the freedom to think a little more altruistically. This is a well established sociological principle – Google “Maslow’s Heirarchy of Needs” for more info. Perhaps “success” isn’t the right term. maybe “security”? I guess my point is that if you’re in the position of being able to think about starting a motor company, it’s a fair bet that things are probably already more rosy for you than most.

    If you look at Pat’s own, well documented story, He initially created his LEED exam site because he had been made redundant and was hoping to supplement his income.
    I know when I was made redundant a few years back, my first thought was not “wow, I really feel a burning need to help a bunch of people I’ve never met learn something for nothing.”

    There’s nothing wrong with wanting to make money “right now”, as long as you do it in a way that will sustain you in the long term once your immediate needs have been met. That includes avoiding the typical short term thinking that sees customers as one quick sale, rather than a lifetime of loyalty.

    • http://techkid.readersandwritersparadise.com Daniel Johnston

      That’s actually not the case with Pat. When he first started the site, he didn’t even know it was possible to make money with it; it was just to keep track of his note’s for the exam because he had bad handwriting and he would be able to access it from anywhere.

      He didn’t even know it was possible for people to find his site; he didn’t know how the internet worked. He said that when he saw his stat’s and saw that thousands of people were using his site, he was shocked, and felt like it was an invasion of his privacy.

      Once he found out, he still wasn’t trying to make money from it for a while; not until he lost his job. Then he started to put ads on it, and made about $30-40 a month from those.

      Of course, though, that wasn’t even enough to fill up a tank of gas at the time, and he joined a Mastermind Group at Internet Business Mastery with Sterling and Jay because he had heard that if you had traffic to a website, you could make money from it.

      Everyone in the group was telling him to write an eBook, and a few of his readers were even saying that if he wrote an eBook, they would buy it.

      Of course, he had the intention to make money from the eBook, but that was not his primary goal. His main goal with the eBook was to create a more organized guide with step by step instructions so people wouldn’t have to go searching around the website to find what they needed (85-95% of it was content already on his site).

      Sure, he wanted to make money, but as I said, that wasn’t his primary goal. He truly wanted to create a guide that helps people.

      Of course, there’s nothing wrong with wanting to make money, but I think the main goal should be to provide great content and help your readers. If you don’t genuinely want to help them, I don’t think you’ll go very far.

      • http://dxtr.co.uk Dexter

        You’re right, my bad, the LEED site was up and running. My point was really that Pat was drawn to monetise the site following redundancy. I don’t claim to know what his primary goal was, since I’m not Pat.

  • http://www.megabizflakes.com samuel

    Nice one Pat! Will be checking it out now, Thanks so much for sharing. Rock on :)

  • http://www.everydayseo.co.uk Will @ Every Day Seo

    As ever, high quality stuff form you pat!

  • http://www.lenekonoir.com Annie

    Hi Pat, i’m new here. Love your info… I was wondering if you recommend using a niche wordpress templates for niche wesites like your security gurad website. Or do you recommend installing widgets and plugins mysrelf on the backend? I’ve seen niche templates and affiliate templates out there and just wanted to get a feel for what people are using or recommend.

    • http://dxtr.co.uk Dexter

      For me, using themes for WordPress is fine, but you need to be aware that the design of the site needs to fit with your target market. I tend to look for a theme that has most of what I want and then edit the colours and images myself (I’m a Graphic Designer). You might want to look at the following plugins:

      Bulletproof security
      AmikeLive Adsense Widget
      Date Exclusion SEO Plugin
      East Adsenser
      Facebook Like
      Feedburner Feedsmith
      Follow Me
      Google Sitemap Generator
      Lightbox 2
      ninja page categories and tags
      Post to Facebook
      really simple Captcha
      move comments
      nextgen gallery
      page mash
      Ozh Admin drop down menu
      tiny MCE Advanced
      wordpress backup
      wordpress database backup
      wp super cache

  • http://www.kreativne-resitve.si Igor

    Pat thank you for this interesting article, I am looking forward to hearing new ones! And by the way, it doesen´t bother me the least when you “stray” away from the topic, it is about being spontaneous, it makes it more interesting. Best!

    • http://www.lenekonoir.com Annie

      Thank You Dexter for the plugin suggestions. Very very helpful……

  • http://www.masonworld.com Mark Mason

    I actually agree with Pat — but let me take Vic’s side.

    Let’s say all you care about is money, and you properly realize that the best way to make money in the long term is to deliver a killer product that sells and makes a profit.

    You don’t give a damn about the people directly — but if you don’t help them, the free market will kill your business. So, you help them. Not because you care, but because you want/need their money.

    That is value exchange.

    Not sure there is anything wrong with that.

    Now — what about this optical glasses guy that screws people publicly so he can get good backlinks from negative rankings? That guy is the extreme case of not caring — actually screwing people over for money. That is amoral. In this particular case of the glasses guy, it looks like it will also be criminal.

    But that is not what Vic is talking about.

    Vic gets fufillment from making money (I gather — I don’t actually know Vic). The free market and FTC take care of the “care for people” part.

    What is wrong with that as long as Vic is OK with it.

    Here is the deal though — I think that Vic could have an even better product if he gave a crap about the people that bought it. He could make even more money IMHO. That is the difference.

    So, all I see here is Vic leaving money on the table.

    Mark

  • http://enjoyingsuccess.blogspot.com Melissa

    Another great podcast Pat! I wish I would have known about eHow a few years ago so I could be making some nice residual income now. I see you made about $2.71 last month with InfoBarrel and I’m just curious how many articles you have posted on InfoBarrel? I’m just trying to get an idea how much I could potentially make per article each month.

  • http://incomeintel.com Craig Arthur

    Good Evening! Pat! What a wonderful Podcast! I appreciate you emailing me back so promptly! Your blog and the way you make everything so transparent. The wife and I have decided to make our lives better by trying all of this out! We have our first child on the way in about 7 months and I want to at the very least, replace her income. I’m currently organizing my thoughts and notes from all of your blog posts and creating a strategy! Thank you for everything you do,

    Cheers,
    Craig

  • http://www.dropoutgotrich.com Kevin

    I’m in the middle of listening to the podcast and very surprised you said if you could go back you would write 150 articles each month for those Ehow type sites. Wouldn’t you rather put those 150 articles on your own site?

    • Pat

      Actually, no I wouldn’t, because all of those articles were from all different topics. I was only capable of writing that one article for that particular subject, and it wouldn’t have benefited me to create my own site about that one topic because I wouldn’t have been seen in Google and never would have made any money, and it would have taken me far too long. Hope that makes sense. Just to give you an idea, one of the articles was how to find celtic wedding rings.

  • Duncan

    This reminds me of a great line I heard once… “Computers don’t write checks, people write checks”. People are at the very core of all business, take away people (or in your case, don’t care about people), and you will be left alone, broke, and destitute.

    Helping people in the long-term always pays-out more, and not just in cash.

    (my two cents)

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  • steve

    Study successful Entrepreneurs and a very clear theme emerges…its not about the money. Look at the people with the most money on earth…the people who have a capital $B in their title. Most Billionaires seem to have had an epiphony that its not about money, its about people. Life is about relationships, money is just a tool. A great tool at that, but none-the-less a tool. Wisdom comes from experience. Experience teaches most powerfully and completely. Most “rich” people who have had any major “life-questioning” event (sickness, almost died, loss of loved one, combat time, etc) understands that chasing money is a fools errand. Hey, don’t take my word for it…I”m not a $B or even a $M yet…but take their word for it. Those who say “oh its easy for a Billionaire to say money doesn’t matter” don’t understand the tenticles of money. Those with lots of money, typically have lots more problems or challenges.

  • http://www.hothitmedia.com Ralph

    If we look at people who only think of #1 they don’t last long. Just switch on the news and you know what I am talking about (Egypt, Libya). Helping others first will give you a reputation you can only dream off, Princess Diana, Ghandi etc.

    Now these are extreem examples but hope it proves a point.
    If you only think of number 1 and money from the getgo then I won’t trust you. You don’t need a reputation to uphold as this is impossible.

    Pat does have a reputation to uphold. As soon as he would only care about money a lot of readers would disconnect and the money would just stop coming in. What pat provides free on his site, I don’t mind to give him a reward for his efforts by buying something from his affiliate links.

    Another good thing for Pat is that he doesn’t have to prove himself over and over again for every new topic/product etc as his reputation speaks for itself..

    Vic, you would have to convince everyone the value before you can even start selling anything as your reputation would be a money hungry blogger.

    My two cents….

  • M

    When can we expect the next podcast–is it once per week?

  • http://www.skinbeautyhq.com Zoe

    Hi everyone,

    I can see both sides of the argument. But which came first? Chase the money or add value without asking for something?

    People can’t risk not chasing the money if they have children to feed, a mortgage and bills to pay. Hence why some sales people are pushy or why people get into job they hate just to pay the bills. Nothing wrong with chasing the money if your situation calls for it.

    I also see the value in helping others. Humans (generally) want to be more generous to those who have been generous to them. And if it makes you money along the way, what an awesome bonus would that be?

    I think that’s why I admire Pat’s website. He shares information that helps so many people (and their families) and in return, they help towards his financial freedom. I think that is a very fair exchange. As a designer and writer myself, I can tell he has put a lot of effort into this. It’s not easy coming up with new content every few days, with a new baby to look after and juggling multiple websites and businesses.

    So kudos to you Pat and all the helpful folks like Joseph A. as well.

  • http://mirrorlesscamera.org Diego

    Thanks for the interesting podcast, Pat! I listened to it very carefully, so carefully that I spotted an error: 50% of 77 dollars is 38.5, not 33.5! :D

    Obviously I’m just being silly, it’s still a great introduction. ;)

  • http://the247arcade.com Colin

    Hi

    Off of the back of this I have done a couple of things. The first was to check out your earnings from infobarrel. I notice the adsense earnings aren’t great but are there affiliate earnings too?

    The thing was trying to find keywords on MS. I have a full copy and quite like the look of it but I have just poured hours into finding a keyword that I am passionate about and can’t even get past the SEO competition part. The theory behind it seems easy however finding KWs just isn’t the same. Any tips?

    Cheers
    Colin

  • Jane

    Nice and interesting article! I’ve found interesting personal finance management tips here http://www.flairfinance.com/

  • http://www.travelture.com CJ

    Thanks for the info Pat. I just recently started thinking of generating passive income as I near graduation from Uni. I plan on traveling for a year starting in the fall so I’ll have lots of time to experiment with passive income, which will hopefully help cover some travel costs in the process. Your articles have already helped out a great deal so thank you.

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  • http://www.aictechnologies.com.au Callum Heaney

    Hi Pat,

    I don’t know how many times (if any) people comment this kind of message, but for me, i find your content (particualarly your podcasts) to be of a fantastic qauilty but… the introduction to your podcasts seems really out of your style and sort of cheesey?

    callum.

    P.S love the SEO stuff you put up

    • Pat

      I’d have to respectfully disagree, Callum. You’re the first one to say anything negative about my intro. I’ve gotten a ton of emails that say quite the opposite. I’m all about being unique, different and memorable, and I’m pretty sure you can’t forget my intro once you hear it. Also, I DJ on the side for fun and hip hop is my favorite style, so the background music fits for me. And lastly, cheesy or not – I’m happy with it and that’s really all what matters. I respect your opinion though, and I know I can’t please everyone. Cheers!

  • http://Amazon Dave Catalog

    Bye Bye Amazon. Unfortunately I live in Illinois.

    Hello,

    For well over a decade, the Amazon Associates Program has worked with thousands of Illinois residents. Unfortunately, a new state tax law signed by Governor Quinn compels us to terminate this program for Illinois-based participants. It specifically imposes the collection of taxes from consumers on sales by online retailers – including but not limited to those referred by Illinois-based affiliates like you – even if those retailers have no physical presence in the state.

    We had opposed this new tax law because it is unconstitutional and counterproductive. It was supported by national retailing chains, most of which are based outside Illinois, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that its enactment forces this action.

    As a result of the new law, contracts with all Illinois affiliates of the Amazon Associates Program will be terminated and those Illinois residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, or SmallParts.com. Please be assured that all qualifying advertising fees earned prior to April 15, 2011 will be processed and paid in full in accordance with the regular payment schedule. Based on your account closure date of April 15, 2011, any final payments will be paid by July 1, 2011.

    You are receiving this email because our records indicate that you are a resident of Illinois. If you are not currently a permanent resident of Illinois, or if you are relocating to another state in the near future, you can manage the details of your Associates account here. And if you relocate to another state after April 15, please contact us for reinstatement into the Amazon Associates Program.

    To be clear, this development will only impact our ability to continue the Associates Program in Illinois, and will not affect the ability of Illinois residents to purchase online at http://www.amazon.com from Amazon’s retail business.

    We have enjoyed working with you and other Illinois-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to Illinois residents.

    Regards,

    The Amazon Associates Team

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  • ER

    Just so everyone knows…. Helium.com announced today that every article posted from now on will become the property of Helium for a period of one year.

    How does this effect your opinions of article submissions everyone ?

    “Change to the rights: Helium will hold exclusive online rights for one year for all new articles submitted to Helium.com.”

  • http://mindfreesuccess.com peter

    Hi Pat,
    Thankyou for the helpful info. You’ve added another dimension to how I view my blogging. What initially started out as a mechanism to put my thoughts on paper about things I’ve read, learned, and put into practice, I am now inspired to venture into some of the arenas you mentioned. My site currently only contains my articles with no clutter and no means to generate an income. Without going too much overboard I think I might try some of the tips presented here.
    Cheers,
    peter

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  • http://carmenmaya.com Maya

    Hi, my name is Maya. I like your blog. it is similar to what I’m looking for for my research. I’m copy some of your content inside my blog and put your URL as well. Look Forward for your other post…

  • http://www.netshrapnel.com Michael Edwards

    Hi Pat, awesome blog you have here. I am super dooperly impressed with what you have achieved over the past couple of years (I have been browsing your blog like crazy of the last couple of days) and to stay so modest and helpful to others are, what I think, exactly what you need in any business. I commend you for that.

    That aside, I love the 3 parter and it has been a great start for me and filled my head with so many awesome ideas. Can’t thank you enough. Now to get to writing..

    Cheers,
    Michael

  • http://thefirefinder.com The Fire Finder

    Thanks so much for this. I have started using I.B. now because of this. I have written 27 articles so far. Not much has come from it but I have a long way to go. Thank you. I will keep you updated.

  • http://rileycabot.com Riley Cabot

    I really appreciate the extra step of having transcripts for everything, Pat. They’re really helpful when I need to save time or can’t access sound due to location. As always your great info and attitude is also appreciated.

  • http://rileycabot.com Riley Cabot

    I really appreciate the extra step of having transcripts for everything, Pat. They’re really helpful when I need to save time or can’t access sound due to location. As always your great info and attitude is also appreciated.

  • http://www.infobarrel.com/TouchPad_Is_HPs_Tablet_Enough_for_College Jack Tyson

    THANK YOU! So this podcast set me immediately into motion… I joined InfoBarrell about a month ago (wrote my first 23 articles already), and HubPages (3 articles – and backlinked to/from IB!) You are right Pat when you said that you will start to learn a lot about how this whole online thing actually works from content creation/article writing (no more mindless blogging to no one for me!) I’m learning about SEO, pagerank, affiliate marketing, niche sites (later when some of my articles point a direction for me), keyword research. Plus I like the writing…

  • http://daniel.hepper.net/blog Daniel Hepper

    I really can relate to your first experience with affiliate marketing, because my results were exactly the same. Luckily I pulled the plug before I wasted to much money.

    On a side note, why does this post not have the “podcast” tag? You mention SPI podcast #15 in the interview with MJ DeMarco, but I had a hard time finding it.

  • http://financiallyeliteblog.com Dwight Anthony

    Pat, thanks for the share. I’ve made decent money at affiliate marketing but always willing to learn more. thanks for the resource.

    Dwight Anthony
    Financially Elite Blog dot com

  • Alec Wines

    Really enjoy the notes that you have on these podcasts! Great tool that is very helpful.

  • Pamela

    I wonder if article writing is still a viable way to gain experience these days. Loving the podcasts, Pat! Keep it up!