Can You Quit Your Job with Passive Income Strategies
So the real question I wanna pose here is whether or not it’s feasible to quit your day job by replacing your income with passive income strategies. I mean that is the real goal right? To only have to work 5-10 hours a week on something you really enjoy and be able to do it from anywhere. Thats not to say however that you wont have to work your tail off at the beginning to get people paying for your content, service, etc..
Thats my goal at least. I haven’t reached it yet, as I have a fantastic job with excellent benefits, but eventually the hope is that we(me and my wife) can attain that goal. I’m going to run down some possible options to reach these goals.
A word of warning. We’re a small family of two and a half (our dog is the half of course) and we obviously have smaller income needs than a family of four or five, these are ways anyone can make money and eventually replace their income, but it’s not going to be easy. If it was then everyone would do it.
Let’s run through some options.
Create a Blog
This is probably the easiest solution, it requires the most work to get started but once you get some content, and I mean a lot of content. You can start seeing this a primary passive income source. Let’s say our goal is $3,500 dollars a month. That’s a pretty decent average american salary. That’s about $31,500 dollars a year after 25% taxes.
So let’s break that down, $3,500 a month is about $115 a day. To create that kind of income let’s see what we need.
From Google Adsense let’s say you have a pretty measly $1.00 RPM. That means that for every 1,000 impressions on your site, you average $1.00. So now lets say you have a Click through rate or CTR of 1% and a Cost per click on average of $0.50 which is a little below average but we’re just trying to estimate here.
Based on the numbers above you would need about 20,000 impressions per day to reach the desired goal if you were just using adsense. This equates to 200 articles receiving 100 pageviews per day or 250 articles recieving 80 pageviews per day. [pullquote-left]The hostgator affiliate network for instance will give you $50 dollars per install at minimum.[/pullquote-left]Of course there are alternatives that can lower these numbers. I’ve recommended affiliates in multiple articles on this site and I still do. The hostgator affiliate network for instance will give you $50 dollars per install at minimum. That means if just 2 people use your affiliate link in a month, you have basically already reached your goal.
Warning: Shameless affiliate plug: (I have to eat too) if you’re starting to understand how easy this can be and just haven’t taken the leap yet, start here with my hostgator affiliates link to get signed up. They truly are the best at what they do and I have coupons(Enter “btjpersonalfinance25” at checkout for 25% off or just “btjpersonalfinance” to get your first month for 1 cent.).
Now obviously some niches are easier to find affiliates for, but they all still pay very well, much better than adsense, and the best part is that they can usually be used supplementally within your articles and not take up any ad space. Amazon supposedly has an excellent affiliate program, I have yet to use them as my blog obviously is not very product focused.
Lets move on.
This one is a lot less work than a blog, even on the frontside. Once you get it launched, you literally don’t ever have to think about it again if you don’t want too. Not too mention you can outsource the work to have both the design and development of the reskin done for pretty cheap on elance or odesk. I would say 100-300 depending on app complexity will get you a full reskin, that includes the purchase of a theme. Especially if you use something like codecanyon to get your app code.
As far as how much money these make. It’s pretty dicey. app advertisers are really sketchy about their eCPM and some app advertisers only pay for CPI or cost per install which means someone not only has to click on an ad, but also has to install the app that they clicked through too for you to get paid.
There is a better way. If you go through the effort and learn the minimal amount of skills needed to do the design and minimal development needed to reskin the app. Then the idea becomes feasible. Obviously it’s going to be very hard to get a return if your paying anywhere north of $100 to get an app reskinned. but if you can do it, then it’s all profits.
Quantity is key here. A poorly performing app will net you about 10 dollars a month if you are lucky. but if you have 10 or 20 apps. then we’re getting somewhere. The best part about these is that they don’t involve any work once there out there. You just check on them every once in a while to see how they are doing.
So the real question is how many apps is it gonna take to get us where we need to be. Well assuming you don’t pay for the cost of reskinning and you have a pretty well performing app that makes 50 dollars a month. You would need about 70 equally performing apps to hit our goal. That sounds like a lot and it is a lot. So keep that in mind as we go forward.
Is it possible?
Obviously it is possible, with enough effort, anything is. I have shown you that. 20,000 pageviews a day is an immense amount of pageviews even for a long time blog, and is especially difficult for certain niches. What you need is a large volume of quality timeless apps and/ or articles that will keep people going to them for years. If you have the time and patience, these goals and more are certainly attainable.
In the example above about blogging. I only mentioned having one blog. Most people have more than one hobby or are knowledgeable about more than one subject. There is no reason why you cant have 2, 3 or even 10 blogs on different subjects, then your page views needed get dramatically reduced because you have more content. 20,000 page views over 10 sites is only 2,000 page views per site per day. Looks more reasonable now doesn’t it? If you have say 30 articles on all 10 sites, you now only need 60 views per post per day to reach your goal.
Diversify your blog ideas, domains are cheap and wordpress installs are free. A good premium wordpress theme from themeforest is only around 50 dollars and they usually come with 8-12 different types of layouts, plenty for your needs and wants.
There’s no reason you can’t have both an app business and a blog network. Then your needed apps and page views decrease again. This is not rocket science. It’s about putting in a whole lot of effort now so you can enjoy life later.