How to Create an Ongoing Passive Income by Pieter Pretorius Disclaimer Please note that the intention of this ebook is not to give you any financial advice and I do not make claims or guarantee any incomes you can make by following the advice in this eBook. In this eBook I share my personal experiences with you. I tell you what I am currently doing to earn a generous passive income using the Internet. How you apply the information is up to you and you should do your own due diligence on each opportunity presented to you in this eBook. Please make sure you visit my blog on a regular basis. I frequently post some fresh money making ideas and reviews on my blog. Have a look at http://www.pietpetoors.com/blog -1- You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. Very Important Notice To read will not make you rich; to implement what you have read will make you rich. Index I deliberately did not add an index or highlighted the main features of this eBook. I found that most people remain poor because they are too lazy to read. Thus the only way you will find the crucial information is to read the whole book from “cover to cover” (Even the introduction) Before we start Before I start I would like to tell you a short story. Many people might know this story, but then again there might be those who do not know it. I tell this especially for the younger generation who read this book. There are so many of you who leave school and who will be faced with un- employment. So this is for you. There once was a billionaire who had a twin brother who was a hobo. A journalist heard about this and decided to do a story on them. She found that both brothers grew up in the same home. Their father was an alcoholic, they were very poor and lived in the dumbs. So the journalist interviewed the hobo and asked him; “You and your brother grew up in the same home with the same mother and the same father. You went to the same school. Why is it that you became a hobo and he is a billionaire?” The hobo answered and said “Mam, if you know where I am coming from, you would understand why I am where I am today” So the journalist went to the billionaire and asked him the exact same question. The billionaire answered; “Mam, if you know where I am coming from, you would understand why I am where I am today” Some people use their circumstances or history as an excuse not to reach their goals and others use it as a motivation to reach their goals. -2- You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. Your destiny, your circumstances is in your hands. You must decide what you want for your life. Introduction "Whether you think you can or think you can't - you're right." - Henry Ford The Internet is filled with offers. When you search for a way to create wealth you get bombarded with thousands of offers. They all claim to have the best system or the next “big thing” If you look at these offers most of then seems too good to be true. You want to subscribe to all of them, but you do not know which one to choose. Which one will work, which are scams, etc. In the end there are only a couple of basics ways you can earn an income on the Internet. Some of the so called gurus just call it something else. But in the end it boils down to a hand full of ways to generate an income. If you read this eBook and you feel that you have heard this before, but you are still not making a success, then revert back to the message at the top of this page. If you are new to the “search for riches” on the Internet then this eBook is just what you need. Do not join another program until you have read this eBook from cover to cover. I might not have all the answers, but I am constantly looking for easy ways to make money. I share all the good ones in this eBook. In some instances I also warn you about scams and point out some warning signals you should look out for on web sites. Working for a boss will not make you wealthy! In order for you to obtain real wealth you need to either be the boss or be your own boss. Being your own boss does not guarantee you instant wealth, but at least you have control over your own circumstances. If you are the owner of your own business and the income of the business depends on your presence, then I have bad news for you: you do not own your own business, your business owns you! Many doctors, dentists, lawyers and other professionals created their own jobs. The moment these people go on leave, however, they stop earning an income. They sell their time for money. In order to obtain real financial freedom and wealth you need to create a system that can generate a passive income for you. This is a system that works for you and not you it. In the beginning you will be working very hard creating this system until you have everything in place. You can create various passive income generating systems that will let cash flow into your pockets with little to no effort. Please note that I will never tell you that you can become filthy rich by doing nothing. That is one of the biggest lies of the century, but yet that is the lie that always attracts people. With the businesses I show you in this eBook, you will be able to enjoy an income while doing very little, but that will only be after you’ve worked hard to establish your income generating vehicles. -3- You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. Short Background I have been around the Internet for eight years now. Like millions of others I also tried to make money on the Internet. I am one of those hard-to-die types of people and luckily I persevered in my search for wealth. I have read hundreds of self-help books and eBooks and tried different business ventures. I however failed to implement some of the knowledge I have gained from these books for several years. I have lost money in dodgy investment schemes and have given up hope on achieving success at some time during my search. Today, when I look back, all I see are hundreds of lessons I have learned in the process. All of this made me a better and happier person. Today I live the lifestyle many others envy. I work from home when I feel like it and have control over my time. It has been a long road to achieve this, but anybody can do it if they really want to. I am not a computer genius. What I know about the Internet and about building web sites I learned by reading eBooks, books and the help files of the software I used. I build my own web sites and I am proud to say that I have not attended one single web design course in my life. I say this not to brag, but to show you what is possible if only you are willing to READ! What about you? I might as well start off by telling you that becoming wealthy is not only about selling goods and earning money. Wealth is not only about money. Although money forms a very large part of wealth, it is not all it is about. Wealth is a balance between having enough money, being healthy, being happy, helping others and spending your time the way you want to. Before you can create wealth you first need to create a wealthy mind set. Millions of people are seeking instant riches. That is why they play the lotto and buy the one money-making book after the other. Sadly almost everybody who made money instantly also lost it instantly. “Easy come, Easy go”. It is a fact that 95% of lotto millionaires either have nothing left after a year or are worse off a year later than before they won the lotto. Why is that? The answer is simple: In order to become wealthy you as person have to grow into your wealth. You need to develop the mindset of a wealthy person before you will be able to retain your wealth. It is not worth working hard to earn millions if you never have time to spend with your family or to have time to spend the money you earned. Or you work so hard that you end up in hospital because of stress and die of cancer a year later. What is the use then? They say money is not everything, but I can tell you that in present times life is not easy without it. Money is very important. But so are your wellbeing and your relationships with the people around you. -4- You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. I think wealth should be measured in time, not money. To me wealth should be measured as follows: If you stop working today, how long will you be able to sustain your current lifestyle without working again? Is it one month, three months, or a year? Now THAT is wealth. If you can build a system that earns you an ongoing PASSIVE income so that you do not have to work for your money all the time, then you are wealthy. By merely trading your time for money you will not obtain financial freedom. Whether you are working for a boss and making him rich or even if you are a doctor, dentist or any other professional person. The moment you stop working, you stop earning. You do not have to stop working now just because I said that. The fact is that, even while you are following a profession, you MUST start building a system that will create an ongoing passive income for you. It does not matter which wealth creation vehicle you use as long as you start building a business today that will create an ongoing passive income for you. Should it be an automated online business, real estate investments, a share portfolio, a network marketing business, etc. - it does not matter which one. Before you can create wealth you as person have to grow according to your wealth. You must learn what it is to be prosperous, friendly, helpful and happy. Only then will the universe expose its riches to you. Positive Thoughts Keep in mind that you are what you think off. You attract the things you think off the most. If you think about your debt, your terrible boss or whatever negative thoughts you keep yourself busy with all day, then you will attract those things in your life. Instead of thinking about your debt all the time, rather think about how you are going to improve your lifestyle. Instead of thinking, “I do not have money to buy that” rather think, “I choose not to buy that at this time” or think, “I really want that. What am I going to do this week to be able to buy that?” A MUST SEE DVD is “The Secret”. The Secret is an eye opener and you will see how our thoughts control our lives. You become what you think of the most. See http://www.in2im.com/motivational for details on where to get the DVD. Also on the same page look out for a book called “As a man thinketh” This is also a brilliant little book to read on the subject. Make sure you also download and read “Think and grow rich” at http://www.passive-income.co.za/download/ I do not even read the newspaper anymore. Newspapers publish stories to create sensation because sensation sells newspapers. They do not mind ruining an upcoming business or somebody’s personal life just as long as they can write some sensational story to sell their lousy newspapers. Murder, rape, fraud, poverty and politics are the main sensation head lines. Newspapers publish articles on these topics most of the time in order to get the sales up. We do not need these articles in our daily lives. Get rid of everything in your life that creates negative thoughts. If you do read the newspaper, skip all the murder and other negative stories and focus only on the positive ones - you will soon realise that there is hardly anything left to read in the newspaper except perhaps some parts of the business section. -5- You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. Goals Elton Trueblood once said: “Man can bear great physical hardship, but what he cannot bear is the sense of meaninglessness. We must find some way in which our lives count, in which they seem important, or we will go mad.” “Your expected result is your VISION. The problem is that most of us don't have a crystal clear vision of where we want to be in life. We've learned to "just get by". Usually we’re not trained in school or by our parents to be millionaires. We’re not trained to have time freedom and money freedom? The real vision for most people in life is to work their jobs living paycheck to paycheck.” – Matt Morris You must have a personal vision for your life. This vision will guide you towards realising your dreams. You must be passionate about your vision. You must have a drive to accrue wealth and not a desire for other people’s possessions. In order to create wealth you must act with Integrity. Integrity is a non-negotiable principle of life. The day when you die, it is your integrity that you leave behind. You cannot jump on the money-making wagon if you do not have a game plan. If you travel in an unknown area in your country, can you just jump in the car and drive to where you want to go or do you need a map to see where you are going? The same principle applies to your vision: If you do not have a map to show you the way or even better, to show you where you are heading, then how do you expect to get there? If you have no target, how will you know where to shoot? I know many people who do not apply this principle or do not believe what I am going to tell you now. I know because I was one of them for a long time. Take a piece of paper right now and write down your Vision statement. Write who you want to be and what you would like to achieve. What kind of life you would like to live? Do not procrastinate on this one; it is very important that you do it. Your vision statement should inspire you, it should be specific and it should be the most you can imagine is possible for yourself. Your vision statement should be written in the first person. You must also write it as if it is already happening. You should NOT write “I want to earn x amount per month”, you MUST write “I am earning X amount per month” Why do you have to do this? – Your subconscious mind is much more powerful than your conscious mind and your subconscious mind do not really know the difference between a lie and the truth. Your subconscious mind will believe everything you tell it. So if you keep on telling your subconscious mind things like “I am worthless,”, “I am stupid”, I do not make a success”, it will believe you and act accordingly. -6- You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. But if you read your vision statement each day it will start to believe what you are reading and act accordingly. You will become what you program your subconscious mind with. To some people this seems a bit unrealistic, but if you do it long enough you can program your subconscious mind to believe whatever you want it to believe. Have you heard the expression “Fake it until you make it”? Well, this is exactly what it means. You have to dream again. Can you remember when you were young what dreams and inspirations you had? Do you realise how those dreams vanished as real life took its toll? Start dreaming again, but this time do it in a structured way as described above. After you wrote you Vision statement you should set up well defined goals. These goals must be well defined and you should put a date to it. These goals can be steps you have to take in order to achieve your vision. Goals keep you focused and help you to create your vision. Example: VISION – “I do not work full time and I am cruising the world”. – One of your goals might be “On 31 Dec my Passive Income will exceed my salary and I will resign my full time job” Now take a piece of paper and write out your goals. The differences between a goal and a dream are; 1. A goal has a date next to it and 2. A goal has been written down. Until you write it down it remains a dream! You must write down what you want to achieve and when you would like to achieve that goal. The secret is NOT to be realistic at all. You must not write down what you think you might probably achieve by a certain time in your life. Pretend you are a child once more. Forget about all your limiting beliefs, forget about all the things others have said about you in the past and write down what you really deep down in your heart would like to achieve in life. It does not matter if you THINK that it is possible or not. This is not about what you think you can or cannot do, this is about what you want out of life. Now take your goals and read them out loud to yourself. Put your goals on a place where you can see it every day. Like next to your bed, then you can read it each night before you go to bed and each morning when you wake up. Each night when you read your goals you evaluate what you have done during that day and then ask yourself, “Did the things I did today helped me to achieve my goals?” If the answer is NO on anything you did that day, do not do it again. You will be amazed by the results you achieve this way. Everything will not just fall into place because you think about it. What happens is because your brain is more aware of your needs and desires you will unconsciously see more opportunities around you or unconsciously stop doing the things that have a negative influence on you. In order to achieve those goals you will still have to pay the price. The price will be in the form of self-discipline, time and energy. But this does not mean that you must turn into a money crazed workaholic and neglect your friends, family and hobbies. Another good way of reminding yourself of where you are heading to is to create a “Dream Poster”. You can either use images on your PC or create a poster displaying all the things you would like to have or achieve. Or you can cut pictures from magazines and paste them on a poster. -7- You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. Stick this poster on the wall where you can see it frequently, like above your desk or on the fridge. I know a lady who was trying to loose weight, so she put a picture of a very sexy girl on the fridge. Each time she opened the fridge door to get something to eat she saw the sexy girl and reminded herself of her goal. She lost the weight she wanted to only by watching what she was eating and eating less. She was reminded of her goal each time she opened the fridge door to grab the next unhealthy snack to eat. I added my own personal dream poster for 2007 below. At the time of writing the BMW 650 GS Dakar was my short term goal. I changed the background on my PC to a beautiful picture of a BMW Dakar. Each time I close an application I saw the motorcycle in front of me. While writing this eBook it was that picture that kept me going, that motivated me to complete this book and to do it to the best of my abilities. By the time I finished this book I actually bought the BMW Dakar (just a newer model than the one on my poster) When you put pictures on your dream poster be very specific and be careful what you ask for, you might get exactly what you ask for. If you want a red Dodge Viper, do not put a picture of a black one on your poster just because you cannot find a picture of a red one. When the time is right you might end up with a black Viper. So be careful, you might get what you asked for. -8- You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. Time management One thing that always amazes me is that a poor person has 24 hours in a day. And a rich person also has 24 hours in each day. What makes the difference, why can a rich person use that time to become rich? On one of his CDs John Maxwell said: “Imagine you have only one week left to live. Make three lists. List No 1 is about all the things you have to do. List No 2 is about all the things you want to do. And list No 3 is about all the things you neither have to do nor want to do. Then scrap list No 3.” This is excellent advice. I implemented it in my daily schedule and suddenly I have an hour or two extra each day. Once you start looking in depth to what you spend time on each day you will be amazed at how much time you waste. If you are working towards your dream it is important to set up a daily schedule and include some time each day to build your dream. I know people who are not wealthy, yet always complain that they are too busy. They complain that they do not have money and that they would like to earn some extra money, but when you present them with an opportunity to create wealth they just say “Oh, it looks nice, but I do not have the time to do it” I fail to see the logic in their response. This is not about having time or not, this is all about priority. Those same people spend at least 4 hours per day sitting in front of the TV watching all kinds of negative junk, but they do not have time to build their future? If you do not have the time to build your future, what are you going to do? Remain in that state for the rest of your life? Are you so happy with not having time to do anything that you choose to remain in that position or is it a lame excuse not to do anything? If you are serious about achieving success, if you are serious about getting out of your current situation and earning more money than you can spend, then you must MAKE time to work on building your wealth. Get away from the TV and start doing something. Watching TV will never make you rich. It only programs you with all kinds of negative thoughts, murder, violence, hatred, poverty, etc. You do not need that. There are some useful programs on TV, but be careful what you watch. The next time you watch a program where people get murdered or a program filled with violence, stop for a moment and think what you are busy programming your mind with. (And the minds of your children!) Setting time aside to build your future does not mean spending ten hours a day working on your business. Each person has different circumstances, but even if you can start with 30 minutes a day it will make a difference. Sometimes we think we cannot do something because we think we must spend some hours each day on it. But if you constantly spend 30 minutes on something new just to get started you will see how your priorities change and later on you will miraculously find more time to spend on your dream. -9- You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. Focus To focus is my one biggest challenge. Once you get started you will be overwhelmed by good offers. You will be tempted to jump in and subscribe to them all. This is not a good idea. You will end up being busy all the time, but getting nowhere fast. Decide on one type of business you would like to implement. Focus on that one thing until you established it and only then try the next venture. The same with MLM (multi level marketing). Some people join multiple businesses at a time and try to build them all simultaneously. This will not work. You must start with one network, build it until you have at least 6 strong partners in your business and are making a good profit. Only then can you look around and perhaps start something new. You will obtain the best results if you focus on one or two things only and perfect those things. Some MLM companies teach their members that you must only focus on their business (wonder why) and nothing else. I do not agree with their philosophy at all. When you are living off a true passive income you cannot afford to risk your income falling away. Anything can happen to a MLM company. Even the biggest and oldest MLM Company can run into troubles and go bust. If you spent your whole life building a network with that company and it goes bust, then you have serious problems. And it can happen. At the beginning of 2007 I was doing very well. I was earning about R40,000 per month in true passive income. Then in one month one of the companies I earned an income from went bust and other stopped paying monthly dividends. This wiped out more than half my monthly income in one month. (One of them was a MLM company and the other a diamond mine I invested in) Although I encourage you to FOCUS on what you do I will not encourage you to focus on that one thing for the rest of your life. Later on I will show you various ways of earning a passive income from multiple sources. The important thing here is that you start with one business, focus on it until it is doing well and only then start looking around for the next. Personal Development This should actually be the first topic of this book. I already told you what you have to do to generate a healthy attitude towards life. But how do you think do I know all these things? I did not invent it myself! I learned from the experts in those fields and so can you. Self development is an ongoing process and you should always seek to learn more. If a fruit is ripe the next step will be for it to rot. If the fruit is still green it keeps on growing and develops into one perfect fruit. You must always be like a green developing fruit. Keep on learning. Most importantly: you must APPLY that knowledge. It is no use reading the one book after the other, listening to the one self-help CD after the other or watching the one self-help DVD after the other and not applying that knowledge into your daily life. - 10 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. But you may ask, “How can I learn from the experts?” I heard people say they do not know any wealthy people they can learn from! Neither do I. But luckily many wealthy people are eager to share their secrets with us. You can learn by reading motivational books, listening to motivational CDs and watching motivational DVDs. 1. There are some books and a DVD I suggest you obtain. I added the titles to my website at http://www.in2im.com/motivational . On another one of my web sites I also listed most of the books I have read over the past 8 years. Have a look at http://www.businessbooks.co.za . 2. Another great source of the right motivational and personal development material is The Internet Library . You can join as a free member or upgrade to a premium member. In both cases you will have access to a wide variety of eBooks. The free members do not have access to all the eBooks. Because it is a South African initiative they kept the price very low for fellow South Africans. Got to http://www.in2im.com/internetlibrary to register. 3. Subscribe for the 9 day free trial at http://www.bemotivatedtoday.net/1239 . They will send you short and powerful daily motivational emails. These emails are brilliant. Subscribe and please make a point to READ those emails each day. It will only take you 3 minutes per email. 4. If you have not done so yet, register for the free eCourse by Nick Williams at http://www.inspired-entrepreneur.com/entrepreneurship_course 5. If you are already into Network Marketing then you must also get a copy of The Network Marketing College’s MLM course. It is the most comprehensive network marketing course available and it will excel your mlm business. Go to http://www.in2im.com/tnmc to get you copy. Also note the extra benefits of becoming a member of The Network Marketing College while you are there. - 11 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. Just do It Over the past 8 years I bought thousands of dollars worth of eBooks searching for the Internet gold mine. I made the same mistake 99% of wealth seekers make. You buy the one eBook looking for wealth. You implement some of the techniques, but you do not see any results in 15 minutes as promised, nor in 15 hours or even in 15 days. You are still poor and frustrated, so you go out and buy the next big promise Internet gold mine road to riches eBook. The same thing happens: you read it, think it is great, implement some of the techniques, do not see the results. Later on you buy the next promise and realise you have seen that before and decide that it did not work the previous time, you are still poor, so you discard it. You buy the next eBook. Then the information overload sets in. You cannot take in much more because you have seen it all before and still nothing is happening. The millions are not pouring in, you are still poor. Perhaps you now make $100 or $200 per month from your website and you think that is great. It is money you earn in your sleep and you do not have to work for it all the time. Well, it is great, it is much better than the other 95% of the pack who still do not earn a cent. So, one day you receive another spam email in your inbox promising a million dollars in six months, you jump out and buy the next eBook. If we look at the description above, who are constantly making the money? YOU? - NO! - the guy who is selling the eBook. Remember I made the same mistake, I were part of the 99% of Internet users who are always buying and never earning. What is the secret then? The problem is not that the information in the eBooks is false (most of the time). There really are people making millions with the very same information you read, but still you remain poor. So what makes the difference? "He that would have fruit must climb the tree" - Thomas Fuller Reading all of these self-help eBooks will not make you rich! The reason why most of us keep on buying the one self-help eBook after the other and remain poor is because we do not fully implement the advice the authors give us. To read will not make you rich, to implement what you have read will make you rich. If you want to achieve success online you must get off your rear end and start implementing the stuff you have read so far. I think it was John Maxwell who said “You have to get up, to get to the top” “How did the mountain climber get to the top of the mountain, he did not fall there!” - 12 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. I see this in Internet Marketing and in Network Marketing. Thousands of people are eager to learn how to make more money. They also want to enjoy a passive income or being financially free. They really do need it. Until you show them what to do, then they fade away. People want the money, but they do not want to do what it takes to get the money. That is why the best selling self-help eBooks are the ones claiming to “do it all for you, you just sit back on your rear end and relax and the money will be flowing in within the next 15 minutes” We live in a world of instant gratification. We want it all and we want it NOW. Why do you think two of the best performing industries are the “fast food” and “fast weight loss clinic” industries? Even with weight loss, we always want the easy way out. We just want to pop some pills and tomorrow we have lost 30kg . I hope I have not scared you off forever. I might add the following to give you hope: Although building an online success will take a lot of time and a lot of effort it will become easier later on. After you created your online money making machine you will reach a time in your life where you will work an hour or two (if you feel like it) per day and earn a couple of thousand dollars per month. What most of the Online Gurus promise you are absolutely true, but they fail to tell you that it will only happen later on. First you have to work hard and only after that you will enjoy the life you dreamed about. In our world today the majority of people suffer from an entitlement syndrome. They think the world, the government, their boss, their parents, owe them everything. “The government must provide a house for me to stay in”, “It is the government’s fault that we do not have jobs”, “If my boss pays me more I will work harder” (for the first week, then you will be back to your lazy old self), “ I will marry a rich man and he must look after me” (while I sit on my, butt watching TV and spending somebody else’s hard earned cash). It is time to take full responsibility for your life and start acting today. Even if you start off by spending 30 minutes per day on creating your online business it will help you to succeed. So what next? The aim of this eBook is not to give you a step-by-step guide to set up your own money making website and start earning. (My other eBook “Building your own money generating web site” is a step by step guide which shows you exactly how to do that. If you bought the complete bundle would have downloaded it with this eBook. You can also buy my step by step video tutorials at http://www.createyourownwebsite.co.za to learn how to build your own professional web site) The aim of this eBook is to show you what is available in the market, what is worth looking at and I will give you as much information I can squeeze in to point you in the right direction to get started. I will also refer you to some resources I personally use to help you set up your own money making system. All the methods I explain in this eBook are methods I am using myself to create an income. I share this knowledge with you because I have learned some very good lessons on my way to success. I have made some mistakes and I want to help you to bypass those problem areas and continue to succeed without these unnecessary hurdles. - 13 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. Some important basics It does not matter what income generating method you choose, these basic and simple rules will apply to all of them. If you want to make success online you must: 1. Get the “quick buck do nothing instant riches” idea out of your head NOW. 2. Take your online business serious. Create a website or service you can be proud of, even if it takes time. You cannot market something that you are not proud of. 3. DO NOT use a free hosting service or a hotmail or yahoo email account. These free hosting services do not add to your credibility at all and it surely does not look professional. When you get a domain of your own, use an email address on that domain. Let’s say you register the domain “johnsmoney.com” then create an email address to the tune of firstname.lastname@example.org . Having your own domain looks much more professional and credible. You can use a free web service to test your concept, but once it is ready you must use your own domain. 4. You MUST have a mailing list. Because this is such a crucially important ingredient in the success cake I explain more about this below. But how do I make money? We already determined that – 1. You have to act i.e. do something in order to make money. 2. You must forget about “get rich quick” methods. 3. Take your business serious, do not use free hosting or email services. 4. Start building a client database. Your Client Database This is probably the most important ingredient in an online business. You must build a client database. NOT a spam list. PLEASE DO NOT fall for the “Send email to 6 million opt in members” crappy ads. There are very few things that will kill your credibility like sending out spam. Start building your own client database (also called a mailing list). Whether you sell online eBooks or cars, create a client database. You will be amazed how good people respond to your emails once they get to know you. Why go out looking for new clients all the time if you can just resell to all your existing clients by sending out an email to them? The bigger your client database the bigger your success. How do you create a client database? The simplest way is to keep a list of all the people you correspond with. They already know you and that is an easy way to get started. Then of course the best way to build your database is to offer a free gift or product on your website (if you have one) and let the visitors enter their email addresses in order to receive it. Or start a forum or a free service on your website. The visitor has to register to use the free service and you can build your client database that way. Example: If you are selling properties or something home buyers can use, start a website offering free online property ads. This attracts thousands of users who want to advertise their properties. - 14 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. You can also use services like FaceBook to build a mailing list. The way to do it is to create a group in FaceBook and then invite people to your group. You can then send them regular messages via the group’s communication panel. Another golden rule is to never abuse your client database. The people in your client database are your golden eggs. Treat them with respect and do not mail them any crap just to make a couple of bucks. Send them good offers. Something I also learned is not to send an e- mail to your client database only when you have something to sell. Send them some free information like a motivational article every now and then. Use only about every third or fourth email as a selling email. If you only send me emails when you are selling something, I will later on delete your e-mails without reading them and so will millions of other Internet users. This does not only apply for eBooks or online services marketing. You can use your client database for just about anything that you are marketing online. My most successful client database is at www.digiprop.co.za/investor . From time to time I email my subscribers information on good real estate investment deals. When I promote a property I share a very small portion of the commission with the estate agent. I only act as the middle man, I do not sell properties. I only refer them to the agent. With my best deal to date I earned R20,000 for sending out one email. OK, now I sound like someone selling a “Get rich on the Internet” eBook. I made R20,000 by sending out one email. But I first had to build a quality content website. I had to attract subscribers, I had to gain their confidence, I had to continuously look for property news I can send them, I had to negotiate the deal, I had to set up the information on my website and only then did I type the one email and sent it to my 590 (at that time) subscribers. Thereafter I had to follow up on them and forward the details to the agent and then I had to receive and bank my cheque. The point is that if I did not have my client database to start with, I would not have made the money. Sometimes I add a new property deal to the website and do not send out an email. For a week or two nobody responds to it. I then email the same information to my client database and within a day we make at least two sales. It proofs that by just putting the information on the website is not as powerful as sending the information to the people. Even if you do not have a product to sell yet, you can in the meantime start to build your client database. If you do not have a website yet, you can start making money by getting involved in something called “Affiliate Marketing”. With the money you make here you can pay somebody to set up your website for you. Once you have a website of your own, you can create even more income. Take one step at a time. Let’s look at some ways of earning an income on the Internet. Please note that what I suggest to you below are exactly the vehicles I personally use to generate an income. Many people contact me and ask “Does the stuff in your eBook really work?” Well, I do not have a full time job, the Internet is my source of income. Thus I can choose to work when and where I like. I can spend my - 15 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. time as I wish and everything I do to generate that income I share in this eBook. So, YES, it does work. There are mainly three ways most of the people make money on the Internet. Most of the books, courses and systems available on the Internet show you how to make money using those three methods. The only difference is that they might give a new name to an old concept and they might claim that they have found the new best thing on the Internet. But for the past 8 years those methods remained the same and if you look deep down into most of the offers online it still boils down to these three methods which are: 1. You can make money by promoting somebody else’s product, service or membership as an affiliate or network marketer (MLM). 2. You can make money by selling your own product, service or membership. 3. Making Money from your web site or blog’s traffic selling ad space or using Google Adsense (Sometimes this happens while you are promoting somebody else’s product on your own web site) - 16 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. MONEY MAKING 101 1. Make money via Affiliate Marketing If you do not have your own web site or blog or you do not have any of your own products to sell you can make money on the Internet by promoting other people’s products or services via an affiliate account. Although it is possible to make money this way it is much better to have your own web site or blog to make money using this technique. Affiliate Marketing is a service where you promote somebody else’s service or product and you earn commission on successful sales referred by you. There are thousands of affiliate programs and even big companies like Toyota and IBM now use this type of marketing, also known as “word of mouth” marketing. Selling “Get rich on the Internet” eBooks is a good way to start. As I already mentioned, there are millions of people seeking the gold mine and they buy the one eBook after the other and hardly ever achieve success. Thus they will keep on buying all these eBooks which make them excellent customers when you are selling the eBooks. Until one day, after they bought hundreds of eBooks and finally realise that they have to implement all the knowledge they gained. Then they will continue buying eBooks because the people selling the eBooks become their competitors and they have to see what their competitors comes up with. So selling “How to make money” eBooks will always be a good seller. The only problem with this niche is that there is a lot of competition in the market. If you do it right you can make stacks of money. The right way to do it is to have a huge mailing list, your own web site and a good marketing plan. Later on in this eBook I explain to you how to identify and select a smaller and more targeted niche which could have better results than above mentioned example. The easiest way to promote “Get rich on the Internet” eBooks as an affiliate is to open a Clickbank account. Clickbank is the best known affiliate market place for electronic products like eBooks and software. Once you registered for your free account you will find a lot of eBooks and software you can promote (more than 10,000 of them) and you can pick and choose which ones you like most. To get a free Clickbank account use this link : http://www.in2im.com/clickbank I prefer to use Clickbank because of the high commissions you earn on successful sales. I normally choose products where I earn more than 50% per sale. The best ones are the ones which offer 75% commission. - 17 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. Once you registered you can log into your account, go to the “marketplace” and obtain a special link which you will use to promote the product. In the marketplace you will even be able to search for the most popular topics, thus not waste time promoting goods that are not in demand. The 2 main things to look for in order to determine how popular a product are: The %/sale which needs to be at least 50% or more. %/sale of 65% is ideal. The next most important is %refd which is the percentage of sales generated by affiliates. You will use your Clickbank username in your link. Many people ask me this afterwards. You always use your Clickbank affiliate id, followed by the clickbank id of the product you are promoting. For example the link for promotin this eBook is http://XXXXXX.passivein.hop.clickbank.net/ where XXXXXX must be replaced with YOUR Clickbank username. Or just go to http://www.clickbank.com/info/jmap.htm?vendor=passivein , enter your Clickbank username at the relevant field and click the “create”, button. The system will then give you the link you have to use in order to promote this very same eBook. You can then email that link to your potential clients, put it on your website or advertise it on Google Adwords. (more about Adwords later) or on free classifieds web sites . I listed various web sites at http://www.passive-income.co.za/ads where you can place free online ads. Example: When you register with Clickbank you will choose your own nickname. To promote this very same eBook you are reading now you can use the following link: When you send this link to somebody and that person uses this link to visit my website and buys my eBook, YOU will receive 75% of the purchase price for telling somebody else about a great eBook that explains how you really can earn money on the Internet. Of course you will not just email the link to them. You will write a nice email explaining to them how inspiring it was to read this eBook and that you now understand why you have not made money on the Internet yet. Tip: You can also try other niche markets, do not just stick to the “make money from home” topic. Sometimes health, wealth and children also make good topics. I noticed when I signed up for some affiliate networks that they mainly focus on the following areas for their online campaigns. I guess that should be a very good indication of which areas are popular or good paying: Automotive Beauty Business Opp/Work From Home Credit Cards/Debit Cards Cash Advance/Loans Dating - 18 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. Debt Relief/Credit Scores & Reporting Diet/Fitness/Exercise Downloads Education Entertainment Freebie/Survey Gaming Insurance Membership Clubs Mortgage Ringtones/SMS Shopping/E-Commerce Tax/Grants/Legal Technology Travel/Tourism/Events Other Affiliate Networks You can sell just about any product or service by means of affiliate marketing. If your neighbour runs his own gardening service and pays you R20.00 for each client you refer to him that is exactly the same as affiliate marketing. If you want to promote other services via affiliate marketing there are some affiliate networks where you can market services like short term insurance, broadband connections, music, mortgages, etc via affiliate marketing. Some International affiliate networks are: http://www.in2im.com/sharesale http://www.dgm-uk.com (DGM is very UK specific) http://us.offerforge.com http://www.cj.com (Commission Junction) http://www.clickbooth.com http://www.copeac.com http://www.ads4dough.com http://affiliate.eadvtracker.com http://www.marketleverage.com http://www.azoogleads.com http://www.neverblue.com Commission Junction offers the biggest collection of companies to market world wide. These even include companies like Yahoo and Virgin Internet and many more. For South African specific affiliate networks see: - 19 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. Traffic Synergy – see http://www.in2im.com/trafficsynergy Offerforge – see http://www.in2im.com/offerforge Peppor – see https://www.peppor.com/pietpetoor At Traffic Synergy and Offerforge you will find big name products like Outsurance, Musica, Sanlam, Hollard Insurance, etc to promote. My most successful campaigns are Outsurance, African Bank Credit Card and Bond Pro Debt Consolidation. The only reason I use two different companies is because they offer different companies to promote. They are both reliable and pay on time. At Peppor you will find more of the smaller companies. Peppor is like a blend between the affiliate houses and Adwords. You can place small text ads on your web site and get paid per click, per lead or per sale on the various ads. Peppor is not as big as the others yet, but I think they do have a huge potential. http://www.afrikaners.org.za/skakels/resepte.php shows an example of a site where I used Peppor text ads and also a banner ad by Offerforge. Placing ads on Peppor is a great bargain for International users. Because they charge in South African Rands (ZAR) you will end up paying next to nothing per click for your ads. Anybody can buy the affiliate software online and run their own little affiliate program. I have burnt my fingers too many times with the wrong companies who never pay their affiliates. I prefer to stick to the big boys. It is of course up to you, if you know of a reputable company having their own affiliate program you can go with them, no problem. Another well-known company that offers an affiliate program is Kalahari.net. You can earn commission by “selling” real books, CDs, DVDs and much more. See https://www.kalahari.net/e-trader/regpersdetails.asp Talking about books. If I am not mistaken the affiliate program concept started with Amazon.com many years ago. You can also join their program at https://affiliate-program.amazon.com/ Tip: I found that promoting services like insurance, mortgage brokers, credit cards, etc found at the affiliate houses above work better using banner ads than promoting self-help eBooks via banner ads. Self help eBook ads work well if you use your link in an article or text ad. I use some of my websites like http://ww.digiprop.co.za and http://www.photosa.co.za to promote these products. Promote Subscriptions as an affiliate - You can also sell a subscription to a service or membership to a web site. A very good example is the Internet Library by Val Mitchell where you can either join for free or pay a very small yearly subscription fee. Have a look at http://internet- library.info/index.php?afid=38 While I mention banner ads. PLEASE, I have seen it so many times - DO NOT create a website that consists ONLY of a bunch of banners! You will be wasting your time. It does not work. Visitors are - 20 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. looking for information. They d not want to land on a page full of banners, it means nothing to them. Besides that the search engines will also not list your page if it only contains banners. Search engines are looking for quality content in order to list your page. Thus a combination of quality content and banner ads will work, but not banners only. Hot Tip: The affiliate program that earns me the most money is eToro. This program might not be for everybody. You must have a forex related web site in order to promote it. But if you do have a forex or investment related web site it might be worth your while joining this affiliate program. You can join for free at http://www.etoro.com/TJoinT2_A476.aspx How would you know what products to promote as an affiliate? In the next paragraph (Making money selling your own product…..) I explain how to determine a niche market you can target. You can use that very same technique to determine which products to promote as an affiliate. What is the best way to promote a product as an affiliate? Some Internet gurus might advice you to get all the free classified site you can find and just place ads containing your affiliate link. I also suggested the same method some time ago, but things have changed. You still can use that method, there is nothing wrong with it, but there is a more effective way of promoting products. The best way of course is to have your own web site where you create separate pages for the products you promote. Building your own web site is extremely easy. At http://www.createyourownwebsite.co.za I show you exactly how to do that. The advantage of building your own pages on your own web site is that the search engines will find and list your pages which means that visitors will land on your web site without you having to pay for advertising getting them there. If you do not have your own web site you can also use some of the free Web 2.0 sites available. These sites allow you to create your own web pages. When creating your own web pages you can include your affiliate code and banners in your pages. When you completed your pages, either on your own site or on the Web 2.0 sites, you go back to the od method and place free ads on the free classified web sites, but this time you refer the clients to your own pages and not directly to the merchants page. To setup your own marketing pages you can use some of the following sites: http://www.squidoo.com http://www.wordpress.com http://www.hubpages.com - 21 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. http://www.gather.com You will note that some of these sites calls a web page a page, hub, lens, etc. In the end they are all the same thing, these companies just like to call it something different to confuse everyone. 2. Making money selling your own product, eBook or digital product Of course it will be much better to create your own electronic product and sell that. It is more satisfying to create and sell your own product than promoting somebody else’s product or service. When you sell your own product it is crucial that you have your own domain and own web site. Trying to sell your own product on a free web service or free hosting will damage your creditability. When you spend money on advertising it is better to get the visitors to your own website and use them to your own benefit than giving them to somebody else. The best business you can run on the Internet is selling your own digital products. This can be in the form of eBooks, online courses, video tutorials or voice recorded tutorials. Selling your own digital product like an eBook can be an automated process which will take and fulfil your orders 24 hours per day without you spending much time on it. Your profit margin on eBooks is very high since you have no production costs. There is one thing you must keep in mind when you create a digital product and that is “value for money”. You must create value in your product. The Internet is flooded with self help eBooks and tutorials and by giving your reader much more value than what he pays for it you will make more sales than the rest of the crowd. People hate being ripped off and if you rip them off they WILL spread the word. What to write about? – My personal opinion is that your first eBook should be about a subject you already know. Something related to your job, hobby or interests. The reason why you should write about something you know very well is because you want to position yourself as an expert in that field. Your fist eBook will be your practise round and you will have much more confidence writing about something you know a lot about than about something new. Some people tell me that they do not know anything or are not an expert in any field. It is important that you do not diminish the experiences you had thus far in your life. Often we see problems as hardship, but actually a problem is a lesson in disguise and later on you can teach others how to overcome the very same problem because you have already learned the lesson. Think about situations where you succeeded. Example: How to cope with the loss of a loved one, how to conquer depression without medication, how to loose weight without a diet, how to cope with a problem child, how to cope with raising a family and work full time, how to fill in your tax form, etc, etc, etc - 22 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. My first eBook was a photography eBook and I am still selling it at http://www.photosa.co.za . Although it is not as fast a seller as money making eBooks, it taught me the skills to make a success of my other eBooks. If you are a handyman you can write an eBook on “Tips to improve your home at a very low cost” or something similar. Even though the PhotoSA eBook is not a fast seller, I created it once and I have been profiting from it for the past 8 years. I created one stream of Passive Income with that eBook. Find a niche – It will be best to find a subject for a certain niche market within your experience field. In order to see what subjects are popular subjects you can do a search at http://www.google.com/trends http://freekeywords.wordtracker.com/ http://www.goodkeywords.com/ https://adwords.google.com/select/KeywordToolExternal When doing a search use “trigger words” when doing a search for popular terms. These “trigger words” can include words like learn, training, instruction, tip, tutorial, help, how to, buy, order or play. Just add one of these words in one of the search pages mentioned above and you will see which phrases are in high demand. But it is not a good idea to always target the main niche. There are a lot of competition and it will not be easy to make money if you target the main niche. You must find a “micro” niche. Let me explain: If you go to https://adwords.google.com/select/KeywordToolExternal and search for “Digital Photography” you will see all the search terms related to Digital Photography. You will see that the term “Digital Photography gets about 2.7 million searches per month world wide on Google. So it is a hot topic, but maybe too hot for you to profit from. Rather narrow it down, look for something that receives less than 10,000 searches per month. That way you can become the master of that specific micro niche because everybody else are going for the “in demand” niche. In the same example we used above you will see that “digital photography books” only receives 9,900 searches per month. Now this might be a niche you can target. You can also use this technique when you are looking for a product you can promote as an affiliate. You can look for digital photography books which you can promote as an affiliate and build keyword specific pages for it. You will find digital photography books at Kalahari.net and Amazon to start with. Another place to see what is in demand is at http://pulse.ebay.com . Also go to http://www.ananzi.com and see what is in the top 10 list of best sellers under DVD, CD, books, electronics, etc. To compile your eBook into a PDF document is very easy At http://www.replacements.co.za/pdf.php you will find PDF writers. You can download one of the two free PDF writers and install it on your PC. Once installed they act like an extra printer on your PC. From within most applications you choose to print your document as you would normally do. Then select the PDF writer as the printer you want to use. It will ask you where you want to save the document and you then save it on your PC. - 23 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. I personally prefer and use PrimoPDF. Once you have written your own eBook you will need some affiliates to promote it. This is where you have to GIVE in order to RECEIVE. You must contact some successful affiliates in the field and send them a free copy to evaluate. Some of them will give you some helpful tips on improving your eBook and if they really like it they will inform their clients about the great new eBook they have read. If your product is good enough this will surely be the best way to start. How to receive payments In order to receive payments for your eBook you can use one of the following: Clickbank – You have to open a Clickbank MERCHANT account. This IS NOT the same as your free Clickbank Affiliate account. The merchant account will cost you a once-off $49.00. They will first evaluate your eBook before they approve you as a merchant. You can then use them as payment processor to receive payment for your eBook. Clickbank is very easy to implement and you have the added benefit that you have millions of affiliates who can promote your product via the market place. Clickbank can now also receive payments in others currencies including ZAR. Once your account accrued more than $100 they will post you a dollar cheque. You can also set the limit when they must send the cheque, but the minimum is $100. I currently pay R140 to have the cheque deposited into my Standard Bank account so it is wise to rather set the limit to $500 this way you will get more value for your money percentage wise. By using Clickbank as payment processor you also have “your own” instant affiliate program. There are thousands of Clickbank affiliates who will be willing to promote your eBook or digital product for you. Register for a Clickbank merchant account at http://www.in2im.com/clickbank Peppor - You can also use Peppor to sell your eBook. What makes Peppor really nice is that it will even build a simple product page for you. You do not need any web design skills or a web site at all. All you have to do is go to https://www.peppor.com/pietpetoor . Then register as a Vendor. Login to the site, download the “Per Sale” software from their web site and then follow the prompt in the per sale builder. The web site selling this eBook which you are reading now looks like this: http://www.oneday.co.za/?I=79 To use Peppor as payment processor is free of charge, but you pay a higher percentage per sale. Something ridiculous as 20% or something. You can also choose to pay the Peppor affiliates and get Peppor affiliates to promote your product or service. Peppor will make an electronic transfer at the end of each month to pay the money they collected directly into your account. Setcom – Now called “Monster Pay” to satisfy the South African authorities. Setcom is free to join and they do not take as big a slice as Peppor. They do offer excellent support. They have no monthly or setup fees. When you withdraw your funds from their account they do an EFT to your account within 48 hours. You do not have the benefit of having affiliates to promote your product or service. See http://www.passive-income.co.za/goto/setcom for details. - 24 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. I currently use Setcom (Monster Pay) to receive payments for my DVD at http://www.createyourownwebsite.co.za and I use Clickbank to sell my eBook. Even though I pay very high banking fees to deposit my dollar cheques from Clickbank, I still prefer the Clickbank system I have the benefit of affiliates promoting my product. 3. Making Money from your web site or blog’s traffic selling ad space or using Google Adsense Whether you are selling ad space, making money from pay per click ads (like Google Adsense) or making money from affiliate programs, in the end it boils down to selling your web site’s traffic. This is the most crucial component of a successful web site or blog – TRAFFIC. It will not help much if you have the best looking web site with wonderful content, but you do not get good traffic. We will talk about traffic later on, but keep it in the back of your mind while reading the following paragraphs. The next money making system we look at is Google Adsense. Adsense is my favourite online money making system. You can really earn money without recruiting anybody, speaking to anybody or selling anything to anybody and you can do all of that 24 hours per day 7 days per week. You can start earning your first money within an hour after you’ve set up the system. You will earn a couple of cents each time a visitor clicks the ad on your website. It might only be a couple of cents, but it can add up to a huge income. If you put banners on your site to promote some affiliated service, visitors click on your banners and one out of every hundred might buy the service and you would earn commission. But with Adsense you will earn a “commission” each and every time somebody clicks your ad, whether they buy the advertiser’s product or not. If your Adsense system is created properly you will continue earning an income from it even while you sleep or while you are on holiday. So what is Adsense? I am sure while visiting some websites you have seen ads similar to the one below: Simple Explanation of what Adsense is Two of the products available at Google are called Google Adsense and Google Adwords. - 25 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. The Adwords side - When a merchant or supplier wants to advertise his product or service he can advertise it using Google Adwords. He signs up for a free account, set up his ads and within 15 minutes his ads are displayed on millions of websites all over the world. When setting up his ads he will indicate the amount of money he is willing to pay each time a potential client clicks on his ad. The higher his bid the higher the ranking of his ad. Thus the person who pays the most per click will have his ad displayed at the best positions. For this example let us say that Mr B is advertising his vehicle insurance cover. The Adsense side - You run a website and per above example let us assume you run a Short Term Insurance website. You write some articles on how to select the best insurance company and what to look out for when asking for a quote. You install the Google Adsense code (which they supply to you) in your web page. The Google software analyse your web page, determines the content of your page and serves relevant Adwords ads on your web page. So now Mr B’s ad is displayed on your website. The visitor comes along, he sees Mr B’s ad on YOUR website, the ad interests him and he clicks on the ad. Now Mr B have to pay Google for the click and Google have to share that revenue with you as publisher of the ad. The most amazing part is that you and Mr B do not even know each other and you did not have to run around looking for advertisers to advertise on your website. In short: Mr B placed his ad using Adwords and you served his ad on YOUR web site using Adsense. Does it make sense? Setting up an Adsense website Adsense is by far my favourite way of making money online. Unfortunately it does not earn me enough, but it does earn me a very large portion of my income. The reason why I like it is because it is hassle free. All I have to do is setup my own web site with quality content and drive traffic to it. I earn money when people click on the ads. I do not have to sell anything, promote anything or recruit anybody. This really is the easiest way to make money on the Internet. To be able to profit from Google Adsense you must have a website or a blog. The website or blog must first be established before you can apply for an Adsense account since Google will first evaluate your website or blog before they will approve your account. You can join Google Adsense at https://www.google.com/adsense/?hl=en_US You can set up a website for just about anything you can think off. But some ads do pay more than others. If you will be creating a website especially for profiting from the Adsense system I suggest you look for a high paying topic and build a website around that topic. Look around you, what are products and services where the promoters can earn huge commissions and where there is a lot of - 26 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. competition in the market. Who can afford to pay high advertising costs? Think of industries like insurance, mortgages, real estate, share trading, forex trading, medical aids, etc. In my video series which you can buy at http://www.createyourownwebsite.co.za I show you step by step how to setup your own Google Adsense and Affiliate web site. From all the Adsense reports I have read so far, I never saw anybody who gave an example of their work. They tell you that they optimise their results by changing the add size and font colours, but you never see it in action. I decided to show you examples of my websites as we continue. Have a look at http://www.freeforex.net http://www.shareinvest.co.za http://www.photosa.co.za http://www.digiprop.co.za http://www.extraordinaire.co.za/search http://www.hilux4x4.co.za http://www.ginsengdirect.co.za This web site has been build 99% by using free articles written by other people. http://www.bmw-dakar.co.za I run various Adsense optimised websites, but the above mentioned are my top earners. Optimising your Adsense Ads I will not go into detail about optimising your Adsense ads for maximum profits. There are hundreds of eBooks about this topic and you can also grab a free copy of my eBook at http://www.in2im.com/adsense/index.php There are, however, a couple of points about optimising I want to mention. If you adhere to these you will earn a rather good income and it will not be easy to squeeze out much more out of your Adsense ads if you apply these tips. Some of the factors that will influence the success of your Adsense ads is the placement and colour scheme of your ads. I already told you that banner ads are one of the worst ways you can think of to advertise. The click through rate on banner ads is about 1% and this is not what you want on your Google Ads. On your Google Ads anything from 6% upwards in my opinion are acceptable, with 25% being very good. So the last thing you want to do is to let your Google Ads look like a banner. Internet users are allergic to banners and automatically filter banners from their viewing. If your Google Ad looks like a banner they will ignore it and not click on it. - 27 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. Your Adsense ads must blend in with the design of your website. It must look like part of your website. Choose the topic, link and text colours to match the design of your site and use the same background and border colours as your web page. You will be allowed a maximum of 3 ads per page. Do not overdo it. There are three placements and two ad sizes that work very well for me. In the beginning stick to these. You can experiment later on if you think you can do better. I use the 728x90 leaderboard and the 300x250 medium rectangle. I know some people who claim they have success with the 160x600 Skyscraper, but my personal stats do not agree. You can try it out and see if it works for you. It will depend on the design of your website. It has been proved in various studies that the most viewed area on the web page is the top left corner. That is where we look first when landing on a new web page. If that is the area where people look at mostly it will also be the area where your Adsense ad must be. If I use the 300x250 medium rectangle ad I always put it in the top left corner of the page as you can see at http://www.freeforex.net The 728x90 leaderboard ads I always use at the top and/or bottom of the pages can be seen at http://www.digicar.co.za/which4x4/ Another factor of success for your Adsense Ads You will earn an income when visitors to your website click on the Adsense ads displayed on your website. The key word in above sentence is “visitors”. No visitors, no click, no income! Driving quality visitors to your website is more important than fiddling around with the ad colours and sizes. There are various ways to drive traffic to your website. If your websites are properly built it will contain a topic, description and keyword field in the meta tags of the script. The search engines will list your website in their directories according to those tags. From this you will drive natural traffic to your website. This is traffic you do not have to pay for. It is FREE, mahala, verniet. I receive most of my traffic from search engines. I hardly ever spend money on advertising. After your website has been completed you can submit it to the following search engines: http://www.google.com/addurl.html http://www.google.co.za/addurl.html http://www.dmoz.org/ http://www.freewebsubmission.com/ http://search.msn.com/docs/submit.aspx?FORM=WSDD2 - 28 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. http://search.yahoo.com/info/submit.html http://www.ananzi.co.za/Add_site South African Only I get almost all my traffic from Google, MSN , Funnel and Ananzi . Important: Do not fall for those offers to submit your website to 10 million search engines. You will be wasting your money and you might end up getting negative results on your search engine ranking. You will get 99% of your traffic from the big search engines. If somebody does offer to improve your ranking on the top 10 search engines, then you might consider his offer and even then be careful. Some guys promise to get you at the top 10 results of Google in 7 days, all they do is place Google Adwords ads which you can do yourself. Remember to also make use of free services like Twitter to drive traffic to your web site. We discuss Twitter and Facebook later on in this eBook. What Keywords to use for your Adsense Pages Some people build websites around high paying keywords. My opinion is that you must rather get a balance between a good paying keyword and a popular keyword. It is no use building a site around “new york auto accident attorney”. It may earn you $60 per click for example, but it only gets 20 searches per month on a search engine and what are the chances that one of those 20 visitors will land on your page? Something like “online banking” can perhaps work better. It may only earn for example $1.00 per click, but at least the term gets searched for 198,000 per month. There are keyword lists for sale in the market. Most of them are crap so be careful what you buy. I do not use keyword lists anymore. The two links below will give you a better indication on which words to use than most keyword lists you buy on the Internet. http://www.google.com/trends http://freekeywords.wordtracker.com/ Use your common sense and look for popular industries that are paying large commission like mortgages, real estate, insurance, work from home, etc. Another way to find a niche market that is in high demand is to use some “trigger words” when doing a search for popular terms. These “trigger words” can include words like learn, training, instruction, tip, tutorial, help, how to, buy, order or play. Just add one of these words in one of the search pages mentioned above and you will see which phrases are in high demand. Another place to see what is in demand is at http://pulse.ebay.com . Also go to http://www.ananzi.com and see what is in the top 10 list of best sellers under DVD, CD, books, electronics, etc. Combine Adsense and Affiliate Marketing - 29 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. I often use a product that I am promoting as an affiliate to create the content of an Adsense page. I will then let all the clicks to the affiliate product open in a new window. The visitor will land on that page. He can then do one of three things: 1. He can click the affiliate banner or link 2.He can click the Google Adsense ad or 3. he can close the window. If he clicks the Adsense ad I make money from him and I succeeded in my goal. If he clicks the affiliate banner he might make use of the offer and I will earn commission, again I succeeded in my goal. The best thing that can happen is if he clicks on the affiliate banner which opens a new window. He makes use of the offer and I get commission. He closes the affiliate website, but because it opened in a new window, my website would now still be open underneath it. So he will be back on my site. What often happens is that the visitor now clicks one of the Adsense ads and I get paid once again. An example of one of these pages is: http://www.digiprop.co.za/credit_check How do I get paid? When your account accrued more than $100.00 in earnings Google will send you a cheque. In some countries you can receive an electronic transfer, but they do not have that facility available for South Africa yet. The cheque is however already converted to ZAR and issued by Citibank Johannesburg. This saves on banking costs. I use the courier option where Google deducts $24.00 from my earnings to pay DHL to deliver my cheque at my doorstep each month. I initially used FNB to bank my International cheques, but the year before last they lost three of my Google cheques in a matter of eight months. The result was that I had to request Google each time to cancel the cheque and resend those earnings with the next month’s cheque. It took about two months before I had that money back into my account. I now use Standard Bank. It has been 14 months since I switched and so far there have been no problems with my cheques. At the moment I earn about R12,000 per month from Google alone. At the beginning of 2008 my earnings averaged R3,500 per month. Did you get a salary increase that can match that this year? Using Pay-per-Click advertising to drive traffic to your site Google Adwords - You can also use Pay-per-Click advertising to drive traffic to your websites. If you drive traffic to your Adsense website you must monitor the price you bid per click versus your earnings per click very carefully. What you will be doing is to pay low for a certain keyword on Adwords and attract the visitor to your website. On your website some Adsense ads will display other people’s ads on the same keyword or topic. The visitor might click one of those ads and if that advertiser bids a higher price per click than what you paid to get the visitor to your site, you will make a profit. As already mentioned, Adwords is Google’s Pay-per-Click engine. When you place an ad on Adwords it will be displayed on thousands of websites belonging to Adsense publishers. You as advertiser will pay a certain amount each time a user clicks on your ad. Google and the Adsense publisher (who displayed your ad) will then share that revenue. You get to choose the price you are willing to pay each time a visitor clicks your ad. - 30 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. To join Adwords go to https://adwords.google.com/ There are some other Pay-per-Click search engines you can use where you pay less per click. Be careful when you use a Pay-per-Click service for the first time. Set your limit to $20 initially and see if you get good results. With some of them you might find that you get more traffic, but nothing else happens, no increase in clicks on your Google ads or no increase in sales. This might be due to click fraud where publishers click ads on their own websites to generate more income. This is one area where Google comes out tops. They are extremely strict on click fraud and monitor it all the time. The moment they find an Adsense publisher generating false clicks they ban him from the system for life. Peppor – This is the South African version of Adwords. You can register for free at https://www.peppor.com/pietpetoor . Note that you can register as a vendor (you advertise your goods) or an advertiser (you advertise others’ goods on your site). With Peppor you choose whether you want to pay the advertiser per click, per lead or per sale. In this regard it is actually much more flexible than Adwords. You can also try http://www.bidvertiser.com/ http://searchmarketing.yahoo.com/ http://www.miva.com/us/content/advertiser/ppc-50-4KXK9TXNO8.asp# Warning ! This is one place where you must be very careful. Some eBooks suggest that you can do affiliate marketing without a website. They claim that you join Clickbank, get your affiliate link and you then go to Google Adwords to place ads, advertising your affiliate link. In theory this sounds great. The Google Adwords system promises that your ad will be displayed within 15 or less minutes after you created your ad. That is why all the eBooks say “Start earning millions in just 15 minutes” Nothing wrong with Adwords, it is probably the best and easiest way to get instant traffic to your website. The problem is that it became a very popular advertising medium and that the “Get rich quick” industry is a very rewarding industry. So if you want to advertise eBooks like this one you will end up having to place a rather high bid just to get your ad displayed. If you are not careful you might end up spending large amounts of money sending visitors to somebody else’s website with very little returns. If you do want to try this start off with small amounts and test the success of your campaign first. Selling Ad Space and Links - 31 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. When you have a quality web site or blog which people often visit you can start to sell ad space on your web site or blog. This will normally be banner ads. On blogs you often see small square banners on the top right of the blog. I saw some of these that goes for $1,200 PER WEEK on one of the busiest blog in the world. That is for a little 125x125 pixel ad. I currently sell banner space for between $20 and $50 per month on some of my web sites. Some people will also be willing to pay you for placing a link in your web site which links to their web site. Normally they will require that you link a certain keyword in the text to their web site. I have a couple of these and I easily get between $30 and $60 per year to add a link to one keyword on one page of a web site. WARNING: Apparently some search engines do not like the idea that companies can buy links to their web sites. This artificially builds their link popularity. So some search engines like Google might panelise you if they know that you are selling links. So don’t advertise it on your site. How can I advertise for free? Organic website traffic First of all you must realise that I have been trying to make money on the Internet for eight years now. So the websites I own did not pop up overnight. To do what I have done takes time. There is a general conception amongst newcomers that they will create a website and a month later they will be millionaires. Unless internet users know about your website you will not make a dime. It takes time for search engines to list your website. On some search engines it may take up to three months before they include your website in their index. Some search engines have a sand box system where they will place your website in the sand box to first see if it is a real website that will remain on the Internet for some time. It will be placed in the sand box for three months before it will enjoy good rankings on their search engine. Search engines will only index your websites if the proper meta tags are in place. In the header tag of the script of your web page must be included a title and description, some keywords and other important meta tags. If you paid somebody to build your website, make sure that it is included. I have seen many websites where people paid a developer thousands of rands to build a website and when I visit the site, it contains no keywords. To see the keywords, visit the website, then go to “view” in the top menu of your browser and select the “source” (Internet Explorer) or “page source” (Firefox) function. Below are the meta tags for www.digiprop.co.za . The most important tags are in Bold. <html> <head> <title>Real Estate for sale and to rent in South Africa</title> <META name="Description" content="Real Estate for sale in South Africa"> - 32 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. <META name="Keywords" content="investment, property, real estate, business, sale, in, pretoria, johannesburg, cape town, durban, south, africa, house, properties"> <META name="robots" content="ALL"> <META name="copyright" content="Pieter Pretorius"> <META name="rating" content="General"> <META name="revisit-after" content="28"> <META name="language" content="EN"> <META name="distribution" content="Global"> In order to increase your website ranking on search engines you must get other relevant websites to link to your website. You do this by contacting the owner of other relevant websites and offer to exchange links with them. You will place a link to their website somewhere on your site and they will do the same for you. Free classifieds I advertise my websites on various “free ad” websites. Remember, if nobody knows about your site, they cannot visit it. Because some of my websites have been running for eight years now, they also enjoy good rankings on the search engines. An example of free ad web sites is http://www.freeonlineads.co.za for the South African market and http://www.freeonlineads.net for the USA market. You can also go to one of your local search engines and do a search for “free ads” or “free classifieds”. You will find numerous websites where you can advertise your website or service for free. Forums and Blogs Another very popular way of advertising your website is to participate in forums that discuss a relevant topic to your website. When you register for the forum, place your website URL in your signature. By participating in the forum you will also build credibility and people will love to visit your website. Nether comment on a blog without adding your web site’s URL in the URL field. If you do this you are loosing out on quality free traffic. You will get a good amount of traffic from that link. If you post a useful comment on a blog people are most likely to click your name to find out more about you, they then end up on your web site. Here are two articles you can read on this topic: http://pietpetoors.com/blog/using-forums-as-pomotional-tool/ http://pietpetoors.com/blog/use-forums-as-marketing-tool/ Offer free services on your website During the past eight years I built various websites where people can advertise their services for free, like the http://www.digiprop.co.za example I showed you above. I use the free service to attract the visitors to my site. On most of the pages I place both affiliate banner ads and Google Adsense ads. I also run some websites containing free information on popular search terms, like - 33 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. http://www.freeforex.net . You can use such a free service to attract visitors to your web site and then use the site as advertising medium. Another great way of driving traffic to your web site is by giving away a free eBook or online course on your web site. The eBook or online course contains just enough information to be useful and just too little to really use it for something. But in the eBook or course you keep on referring to your main product. You also encourage the reader to send this free little eBook to all his friends and relatives. A very good example is “The introduction to Forex Trading” by Mark McRae. He explains in detail what Forex Trading is and how you can profit from it. He uses this free eBook to market his other great courses. You can download the eBook here: http://www.freeforex.net/download/introduction_to_forex.pdf Social Networking Social Networking web sites are the future of the Internet. People crave recognition and they like to be seen. They want to experience interaction on a web site. Social networking web sites are also a great source of traffic to your web site and a great source for find prospects. One of the most famous social networking web sites is http://www.facebook.com . It has some nice tools and millions of potential clients. Although very expensive you can place pay per click ads on Facebook. By doing so you can get an idea of how big your target market is. For example if you select all people older than 18 in the USA you get 21 Million people. If you select the same target group in South Africa you get about 700,000. It just gives you an idea on how huge some target areas are. But you can find lots of clients on Facebook without spending a cent, just some time. (Another way to get FREE exposure) The way to do this is to make lots of friends. WARNING: 1. Create a separate profile for your business. If you make lots of business related friends they can also see who your friends are. They will also target your friends to become business related friends. In the end you will find that they also trouble your real friends and family. 2. Facebook does have systems in place that will detect that you are busy spamming people. When you made too many friends on one day it will pop-up a message warning that you exceeded your quota for the day. When you receive this message STOP immediately, do not make one more friend for the day. They will suspend your account if you do. Wait 24 hours and start making friends again. Where do you find those friends? – Look for a group or person which/who is very active in the field you are looking for clients. If you are into Internet marketing you can go to the profiles/groups/fan clubs of people like Mike Dillard and Brian Cambell. If you open their list of friends/group members/fans you can invite those people to be your friends. Most of those people are there to make money also. So you do not even have to bother to send them a message - 34 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. explaining why you invite them to be a friend. You will see that 99% of them just sommer accept you as a friend. This is a great way to tap into the “mailing list” of the big boys. It is very important that you make your own profile as interesting as possible. Add your web site links and what you do in your profile. I found that people actually read your profile. The one advantage of all those friends is that each time when you update your photograph, become part of a group, upload new pictures, etc they can see that on their wall. This constantly draws their attention to YOU. Eventually they visit your profile and see what you do. Another way of driving traffic to your site is to start a group. Invite your new friends to join your group. You as creator of the group can send messages to everybody in your group. Thus you will be creating your own mailing list with the group. Other social networking sites to have a look at are http://www.mygenius.com , http://sta.rtup.biz/ and http://www.myspace.com . The first one is very South African specific, but unfortunately you have to pay a monthly fee to have all the functionality. Thus it is not a very popular option. Rather use the other three options, they are all for free and work much better. Twitter http://www.twitter.com is another great source of free traffic. My profile is at http://www.twitter.com/pietpetoors Twitter is a free social/micro blogging site where users can post messages (tweets) of up to 140 characters to their friends or followers. I might be showing my age here, but when somebody first suggested I register with Twitter I went to the site, had a look at it and emailed the guy back and asked “Join what? There is nothing there!” Twitter is one of those things I cannot understand. To me it is a web site filled with a bunch of rubbish remarks. To me it seems 100% useless. That is why it took me 3 months and about a 100 invites before I finally decided to join the damn thing just to get everybody off my back. Slowly I started to follow people who invited me and every now and then also commented something. Only difference is I make mostly useful comments. Amazingly, each time when I placed a comment I all of the sudden have two or three more requests of people who wanna follow me. So I realised that somebody must actually read all this - 35 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. stuff. So the next comments I started to add my web site address. I would say something like “ “Just wrote a review on “Blogging to the bank at www.pietpetoors.com/blog” Amazingly more people wanted to follow me and people actually visited the blog. I still do not understand what it is people like about Twitter. I still thinks that it a lot of crap, but it is one of my best free traffic resources. Remember the same as with FaceBook, create a separate profile for business purposes. I use Twitter exclusively for business. You are allowed to have separate accounts with Twitter. It will be good to register a new account for each niche you are promoting. Something like “Pieter Digital Photographer” Once you registered with twitter personalize your profile by adding something catching in your bio, add a picture and change the background to something non-standard. The picture can be a pic about yourself or in the camera example it can be even a picture of a digital camera. You can get some great backgrounds at http://www.twitbacks.com A more personalized profile will put your visitors at ease, it won’t look as if you are there only to sell them stuff. The idea is to stand out as an expert in your field so that people will believe you if you refer them to a product or service. The next thing to do is to get as many followers as possible. Be careful not to get your account suspended. Do not invite more than 50 followers per day. The secret is to find “targeted followers” not just any followers. So you want people to follow you who have an interest in the product or service you are promoting. To find targeted followers look at the top of the page in Twitter is a “find people” link. Click that. Then on the right you will see a search bar. In the search bar type words relating to your topic, like “digital photography”. The results will shows tweets where the subjects has been discussed. Now look for people who ask advice or help about your subject, they will be your targeted followers. Invite them to become your followers. Each time when you tweet a tweet they will see it on their screen. So in fact it is nothing else than building a mailing list or group and frequently sending information to your mailing list. Same concept just packaged differently. Web Submission Services If you do have a website of your own, be careful for website submission services. First of all a good search engine ranking does not happen overnight. It can take up to three months before you can see good results on search engines, unless you use Pay-per-Click advertising. Various companies offer to submit your website to thousands of search engines. If they offer to submit your ad or site to 10 million search engines, STAY AWAY. They will submit your link to each and every crappy dump on the Internet. These include FFA pages and link farms. Some search engines will ban your - 36 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. website if they find that you are part of some of these listings. They can do you more harm than good. Go for a submission service that will submit your quality content to the major search engines. I get 99% of my traffic from Google, MSN, Ananzi and Funnel. The only reason I submit on smaller search engines is to build my link popularity and not for the search results. Do not go for a service that will charge you $1,000 per month to submit your site. They are ripping you off. I believe that anything below $100 per month is fine although I personally do not use such services. 4. MLM – Multi Level Marketing or Network Marketing Network Marketing is the best and easiest way for any newcomer to earn an extra income and an ongoing Passive Income. If you cannot or do not want to build your own web site then Network Marketing is the next best thing you can get involved in. There is no other business where you can potentially earn R20,000 per month with a R50.00 per month ( and some man hours ) investment. And the beauty of Network Marketing is that everybody can get involved and that everybody is equal. Whether you are a Doctor or Gardener, White, Black, Indian, clever or dumb, you CAN make a success from network marketing if you put your heart at it. Some of the reasons why I say that MLM is the ideal way to start are: 1. You get training and you do not need any previous experience 2. Your capital outlay is very low compared to starting your own business 3. You can start making a profit within your first month of being in business. 4. You do not need staff and all problems associated by having staff. 5. You do not need big offices or a factory 6. Most of your admin is taken care off by the company. They run the debit orders, they maintain the web sites, they organise the presentations, they create the marketing material, they provide the training and they answer most of the queries. 7. Once your business is established you will earn in your sleep. ( A true Passive Income) For some reason most people like to suffer and they criticise anything that can make their life easier. Network Marketing or Multi Level Marketing (MLM) is the best marketing concept the world has ever seen. It created more self made millionaires than any other industry in the world’s history. It levels the play field and whether you are a doctor or a ditch digger, you both have the same opportunity to become wealthy. But yet so many criticise MLM because they believe it is too good to be true. Instead of jumping in, working hard and seeing if it really works, they choose to sit in front of the TV and tell others that it would never work. And that happens while a couple of self made MLM millionaires are sailing the world with their yachts. If it was not for MLM I would still be working for a lousy boss, making somebody else rich. I think our new generation is more open-minded and have not been brain washed by the big bad pyramid scheme mentality yet. They realise that this is the most brilliant way of marketing and we will see more self made millionaires in the next ten years than ever before. There is not much difference between affiliate marketing and network marketing. The only difference is that with affiliate marketing you are doing all the work yourself, while with network marketing you have a - 37 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. network of people helping you to do the work and the commission is shared among them. But why believe me? Why not see what some of the richest people in the world have to say about network marketing. Go to http://www.themmc.co.za/robert.php and see what Robert Kiyosaki and Donald Trump say about network marketing. I also wrote an article at http://www.earnextra.co.za/pyramid which explains the difference between pyramid schemes and network marketing. Making a success from network marketing is a little bit harder than Adsense or affiliate marketing, but once established it needs less maintenance. Another advantage of network marketing is that your business can keep on growing once you have established a solid business. One of the MLM businesses I were involved in three years ago increased by 500 members in the past two years while I were not giving any attention to it. I am still earning my income and my business is still growing, but I am not working on it anymore. Thus network marketing takes a lot of time and dedication to get started, but once established can provide you with a life long income. Building a MLM business online is not as easy as doing it off-line. One of the most important requirements of a successful MLM is business is human interaction and the building of relationships. The Internet lacks those skills. But on the other side with the Internet you can contact, train and support more people at a time. My advice is to not try and run your MLM 100% online. A good combination between online and offline techniques will proof very valuable. These might be something as small as giving one of your online visitors a phone call the day after he visited your web site. That human interaction can easily increase your success rate by 50% or more. “Formal education will earn you a living, but self education will earn you a fortune” Jim Rohn This is absolutely true in my own life. I am not even using my formal education anymore and I am earning a fortune from my self education. Personally I prefer MLM businesses which are purely online businesses. I do not like attending presentations, driving around meeting people, hijacking people in shopping centres or selling soap or vitamins. Coincidently both the MLM companies I am focussing on at the moment provide education and motivation for the Network Marketing Community. The first one is The Network Marketing College. They offer a state of the art network marketing course in the form of a book. You can join for free. As soon as you buy the book for a once-off R200 you will also be able to participate in the profit share program where you can earn commission for referring more students to the college. Have a look at http://www.tnmc.co.za/pieter2 . Click the “profit share” and “presentation” links for more information to fully understand the income potential. BeMotivatedToday is another brilliant concept. It is surely the most affordable online business available in South Africa today. It will only cost you R45 per month, but you can also join for a FREE - 38 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. 9 day trial to see what it is about. Even if you join for the free trial you will get the eBook which will teach you even more about making money online. When you join BeMotivatedToday you will also receive short and powerful daily motivational emails. I just love these emails. If you make time in your day to read these you will quickly see an improvement in every aspect of your life. It only takes you about 3 minutes per day, but those 3 minutes will make a huge difference. Check it out at http://www.bemotivatedtoday.net/1239 If you do want to get involved in a network marketing business there are some things to consider before joining. Here are some of the things I found that is very important in determining your success in any network marketing business. 3.1. How easy is it to explain the business to others? – You might understand the concept and you might be able to explain it to others. But how easy will it be for somebody who is almost illiterate to explain the business to others. I found that the most successful people in this type of business are those with a hungry stomach or those who have the banks knocking on their doors. Their REASON to succeed is much bigger than the guy who is earning a fat salary and sitting in his air conditioned office. So the business must be extremely easy to understand by all types of people. 3.2. What does it cost to join? – Most people want to join a business because they need money. I know I was there 8 years ago. Today it is hard to imagine that you want to join a business and do not even have the R100.00 to pay for the starter pack. But yet, it is those people who need it most. No matter how good the product or compensation, if the business is too expensive you limit the number of people who will be able to join. I have more success with the ultra affordable businesses than with the expensive ones. If the network is very expensive to join of course it must have a compensation plan to suit. No use it is expensive to join, but you earn peanuts. There is no problem with an expensive business; there is a market for that too. But the market who is prepared to pay a lot of money to join a business also wants to earn a lot of money from it. 3.3. How quickly will you break even? Determine the number of people you have to sign up into the business so that your commission and bonuses will cover your costs and put you in a profit situation. I joined a business three years ago. They did change their commission structure in the mean time. But at the time when I joined it you earned very low commissions. You needed about 110 people (really) in your network in order to break even. Your commission on your first level (personal introductions) was R1.28 per month. This is a recipe for disaster. First of all most people will not persevere for so long as to get into a profit situation by signing up more than 100 People. They will give up hope after 6 months and try something new. So you will end up loosing 95% of the people you signed up. Secondly, how can you support the person on your level 1 if you only get R1.28 per month commission? I mean one cell phone call to that person will take you 10 months of commission to recoup your cost! Think of it this way, the quicker your client breaks even or make a profit, the quicker YOU have a client for life! If your client breaks even or makes a - 39 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. profit, the business is not costing him any money, so why would he ever cancel? The two major networks I currently work on you need 7 people in the one and 12 people in the other one to break even (personal introductions). 3.4. Is the commission ongoing? –Watch out for companies like Clientele Life (IFA). The commission you earn there is not an ongoing Passive Income. The truth is that you get a very good commission on the people you recruit to lure you into their system. But after the first year a percentage of that commission falls away. And the next year more falls away until four years later you do not earn a cent on that client anymore. To make matters worse you must have at least 5 people in your level 1 to qualify for commission. So if you do not keep on adding new people to your system your income will die away. This IS NOT what network marketing is about. What they have there is a very smart way of getting people to work for them while those people think they work for themselves. If you join that business you will be feeding the fat cats forever, you cannot stop working. What is the use then; you might as well go work for a boss? So watch out for systems like this with dodgy terms and conditions that were designed to benefit the company only. 3.5. Do not work for peanuts – As I already explained above. If your commission is too small you will not be able to support your network or advertise your business. You might join a peanut paying network as secondary income, but do not try and make a living from it. And remember that there must be a balance between your start-up cost and commission potential. 3.6. Products – Personally I do not get involved in networks where physical products are involved. The products are mostly over priced in order to be able to pay commission. With physical products you also limit your potential market. To give you an example: Some networks advertise “Loose fat now, ask me how”. Now if you are skinny and under weight, would you respond to that ad? Now, you won’t and because you do not respond you also loose out on a money making opportunity. If you do want to go for a product based network make sure they have a unique product and make sure their products are not over priced. Most of your friends will not see the benefit of paying R50 for a tube of tooth paste while they can get one at the local store for R10. Keep in mind that one income will help you to make use of another income source. For example: If you earn an extra income of R4,000 per month with a network marketing company, that extra R4,000 per month might qualify your for a loan to buy a flat. You can then rent out the flat and earn another income from that. Or the R4,000 networking income can help you to qualify for a bond on a new development. A year later you sell the property and make R100,000 profit from it. Often people tend to think that making an extra R4,000 per month is not big money. But that is because they do not think further than a monthly income. 4. Blogging I added blogging as a separate category because “making money from blogs” or “blogging your way to riches” became buzz words and not many people know how to actually make money from a blog. - 40 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. Like Twitter blogs were one of those simple things that I just could not grasp. I nether could understand what was the difference between a blog and a normal web site. Blogs started off as an “online diary”. This was where bloggers wrote their thoughts for the day and others went out to read it. For some weird reason the search engines gave preference to blog content and blogs enjoys a better and faster search engine ranking than normal web sites. Thus internet marketers started to write their sales pitches and reviews on blogs instead of a normal web site. If you look at http://www.online-money-blog.com you will see that this is not an online diary at all. So blogs are not online diaries anymore. It is just another type of web site. One which get listed very quickly in search engines like Google and one which is much easier to build than a conventional web site. Lately I rather create a blog than a normal web site. I can even create a blog for a client who wants to advertise his guest house or small business. The blog software is ideal to create a web site which the client can maintain himself. There are more than a thousand free templates available which makes it look professional. The software is free and it takes me a fraction of the time to create a blog instead of a complete web site. I also use blog software to teach my clients how to build their own web sites in the video tutorials at http://www.createyourownwebsite.co.za But what does this mean to you? Easy, instead of building your own web site you can just create your own blog. It is more effective and flexible than an old fashioned web site. But how do you make money from you blog? That is why I said in the first paragraph that “blogging” is just another buzz word. You will be making money on exactly the same way as you would on your web site. You will add Google Adsense ads, you will promote affiliate products or you will promote your own product. There is nothing we have not already mentioned. You will also look for a niche and then build your blog around the niche. At the moment it seems as if you can easily sell a established blog. Some people look for a good domain name in a niche market, build a blog around it, get some content and some visitors and then sell the blog as is. You can sell it from a couple of dollars to up to $40,000 or sometimes even more. Personally I would not sell a successful blog. If it is earning me a good passive income why on earth will I sell it. WARNING: Quality blogging is hard work. You will have to write an article or two each week. Anybody can fill a blog with copied content, but that is not a quality blog. Spending time on writing quality content pays off in the long run. - 41 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. 5. Your own ringtone website It is very easy to start your own ringtone web site where you sell ringtones and wallpapers for mobile phones. The ringtone website also generates a true passive income. I do however find that there is a lot of competition in this market. Thus you will have to work very hard at promoting your website in order to earn a good income. To get started you will need a domain where you can build your website. Then go to http://www.booster.co.za/mediaplazza and register for free at Mediaplazza. Log into their website and download one of the templates. You upload the template to your site and change one or two settings in the configuration file. And there you go, you have your own ringtone website. They do provide step by step instructions for doing this, so do not worry if my short explanation sounds too difficult for you. You can have a look at my website at http://www.ringlogos.co.za . If you have a domain registered you can have a full blown ringtone website ready to generate an income in less than 20 minutes. Too me this is not a big earner. But perhaps you are in the right industry or know the right people so that you can make it work for you. Remember that you will never know unless you try. 6. Your own web hosting website In South Africa hosting is rather expensive compared to the rest of the world. You can use an American based hosting company to provide you with Hosting. If you take out a "Shared Hosting" or "Reseller" plan you can add lots of websites on your own area on the host server. I currently pay $35 for 5 Gig of space and 5000 Gig of bandwidth. On that 5 Gig I currently host 120 domains on my space, but only used 1 Gig so far. I can host an unlimited number of domains if I want to and I guess to stay within the allocated space I will be able to host up to 500 web sites. You can take out such a hosting package and then host other people’s web sites for them. You can easily charge R35 or more per month per domain. You charge them in South African Rand. Thus you pay about R350 per month for something that can earn you R15,000 per month. BlueHost and Sites 5 offer reliable and cheap shared hosting services. You can use them to provide your hosting for you. See http://www.za-phphosting.com and http://www.booster.co.za/site5 Because I now hosts more than 100 domains and some of my domains use excessive memory, bandwidth and disk space I had to use a bigger solution. For the past couple of years I have been using http://www.layershift.com . Their support is phenomenal. They do not have an affiliate program so if you decided to use their service, just tell them I referred you so that they know - 42 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. where their business comes from. They are much more expensive than the two examples above, but if you run memory hungry web sites it is worth while paying the extra money. To get your money from your clients you can use your Clickbank account, http://www.worldpay.com/ or http://www.paypal.com . They are all international payment gateways where you can create a re-occurring payment link. In South Africa you can use a debit order system. See http://marketing.netcash.co.za/ or http://www.stratcol.co.za NetCash caters for small and large business where StratCol is more focussed on large businesses. There are two more tools that will make running your business easier: 1. Bulk SMSes. I use two systems to send bulk SMSes from my PC. http://www.bulksmsportal.co.za/ is the most cost effective one. It works fine for bulk SMSes, but it is not easy to use for single SMSes. Another disadvantage is that you cannot use your own “sender ID” Thus the recipient of the SMS cannot see that it comes from you. If he replies to your SMS it will cost you another SMS credit to deliver the replied SMS to you. It is a cheap way to deliver Bulk SMSes to people who do not have to reply. But if they have to reply it will cost you more in the end than using Clickatell. 2. Clickatell has a little application that you can install on your PC which makes sending SMSes much easier. It is called Messenger PRO. Get it at http://www.passive-income.co.za/sms . I just love this little application. I can use my own sender ID, thus it looks as if the sms was sent from my personal cell phone and the recipient can reply to me directly. 3. Your own free fax number. Receive faxes in your email inbox. No waste of paper and you need not install an extra line just for the fax. See http://www.faxsystem.co.za for that. 7. Selling Photographs Online You can also create a passive income by selling your photographs online. This is straight forward and easy. There are various websites on the Internet selling stock photos. These websites are always looking for new photographs. You can upload your photographs to those websites and once approved they will present it to their clients. If the client downloads or buys your photographs you will get paid a portion of the income. This is a very easy way to create a passive income. I added various links to websites where you can sell your photographs at http://www.photosa.co.za/forum/sell.php However I found lately that these companies became much stricter on approving your photographs. Be prepared to spend a lot of time trying to get your photographs approved. If I find a company which are more user friendly I will post the details on the forum. - 43 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. There is a very nice eBook called “Camera Dollars” which teaches you the finer tricks on where to submit your photographs and how to get them submitted. This is an excellent eBook and is also one of those that is so stacked with information that it would take you a week to absorb all of it. You can get it at http://www.photosa.co.za/earn 8. Online Auctions I know some people who make a living selling goods on http://www.eBay.com . I have not tried it yet, so I cannot offer an opinion on that. South Africans cannot sell on eBay. In order to receive payments on eBay you need a PayPal account and PayPal do not approve new accounts for South Africans. The people who do profit from auction websites buy goods on an auction website and then resell it at a higher price. Or they sell their goods like eBooks , Photographs, antiques, stamps, coins, precious stones, collectables or anything else on the auction sites. Makes perfect sense to me and I am sure that if you spend the time you will be able to make money. I am sure you will find many eBooks on the topic. It sounds like too much involvement for me to try, but perhaps you have a product you can sell on an online auction. You can also have a look at http://www.bidorbuy.co.za , http://www.tradeoff.co.za Again you can combine this with affiliate marketing. If you look at the affiliate section and go to the Offerforge web site, you will see that you can earn a commission for sending new clients to Bid or Buy. 9. Forex Trading There are many people making huge profits on the Forex market. Some of the authors selling the eBooks let it sound very easy. The truth is that it takes a certain type of person to make a success of Forex trading, it is not for all of us. I have been playing around with the Forex market for about three years now. I have read hundreds of eBooks. Sometimes I make R5,000 on one single day, but the next day I loose R10,000. If you look at the average over one month I only gain small amounts. BUT, the fact is that you CAN make huge amounts of money on the Forex market if you are the right type of person and if you give it the attention it should receive. This is where the power of focus is demonstrated. If you focus on what you do you can earn a generous income from Forex trading. Do not overlook this opportunity just because I cannot make a success of it. My problem is that I cannot focus on one thing and that is why I am not the ideal candidate for Forex trading. Perhaps you are the focussing type and will have more success. You can register a free dummy account with most of the Forex brokers. You then trade with virtual money to see if you succeed. If you cannot make a profit on your virtual account you will not make it with real money either. When trading with your own money there are a lot more emotions - 44 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. involved. You make stupid mistakes because you are either eager or afraid. You will never know unless you try. Visit my website http://www.freeforex.net . There are some free courses, eBooks and software that will help you to test it. At least this is one venture you can try without spending a cent. At http://www.freeforex.net/books.php you will find various free eBooks which will explain to you exactly what Forex Trading is and how you can get started. A MUST READ is “Day Trading Mind” by Mark McRae which you will find on above mentioned page. The basic Forex Guide which you will find at http://freeforex.net/download/Forex_trading_basics.pdf explains what forex trading is and how you get started. New developments in the Forex Trading industry made it possible for more people to become profitable traders. Since the end of last year a couple of “Forex Auto Trade Robots” also called “Forex Expert Advisers” were launched. These trading robots are plugged into the MetaTrader software. It will then automatically evaluate the market and will enter and exit a trade on your behalf. This removes the human interaction and makes Forex trading an automated process. I bought and tested four of these trading robots. They are IvyBot, FAP Turbo, Forex MegaDroid and LMT Forex Formula. See: http://www.freeforex.net/go/ivybot , http://www.freeforex.net/go/fxdroid http://www.freeforex.net/go/LMT-formula and http://www.freeforex.net/go/fapturbo All of them are easy to install and they give you very good manuals which will help you to setup your forex trading account. I did make a big mistake at the beginning, but that was 100% my fault because I thought I know better than the manual. I did not use the broker they suggest I use. The broker most of them has a minimum of $500 deposit and I did not want to spend that much just for testing purposes. So I decided to go for another broker with $100 minimum deposit. At the time I was only testing FAP Turbo and Forex Mega Droid. I installed MT4 and installed the forex expert advisers as instructed in the manual. I had my PC connected to the internet 24 hours a day. Now I was waiting for the big results to show up. But nothing happened. Not one single trade in the first 5 days. I was furious and thought that these forex auto trade robots were a big scam. Before I threw a tantrum I visited the Fap Turbo forum which is only available to clients who bought this auto trade robot. On the forum I saw many more similar complaints and the problem turned out to be the broker. Some brokers’ spread, conditions and ethics are not ideal for trading with expert advisers. By the way, the FAP Turbo forum on its own is worth the money you pay for the system. You get a wealth of hard core Forex Trading information on this forum. - 45 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. On the forum I gathered who are the best brokers to use. So I registered a new broker account. This time with Alpari UK. This is still not their broker of choice, but at least Alpari only take a $200 minimum deposit and offer a micro account. After installation I switched on the system again and WOW. After the first night I gained 5% on my total portfolio and at the end of the first week I totalled 26% increase of my portfolio. This was done with both FAP Turbo and Forex MegaDroid running 24/5. Then came along LMT Forex Formula . This one is a bit different from the others. LMT does not execute the trades automatically. It gives you all the indicators, calculate your entry and exit strategy and even tell you what size stop you must use. It gives you a signal when you must execute the trade and then it is up to you to open the trade. I like this, it puts me in control of my trades. LMT focuses on real big gains and on long term trades. It works on a daily or 4 hour time frame. On my best trade with LMT I made 1021 pips on NZD/USD. Those figures they quote on their web sites, the 99% successful trades, it is almost true. With FAP I had 99% winning trades so far and with MegaDroid I had 98%. LMT I am still testing. I only executed 3 trades so far and after 2 days all three are still in the money with one of them standing at 420 pips profit as we speak (21 May 2009) Unfortunately it did not remained moonshine and roses all the time. Although the expert advisors performed well most of the time all them did suffer a huge loss some time or the other which wiped out about all the wonderful gains I made. So I am still hanging in there and I am keeping an eye on the developments. I am sure some time or the other they will develop these robots to be truly 100% accurate. I know that not everybody can afford to go out and buy two or three forex expert advisers at the same time. I can also not tell you which one is the best to buy because it will depend on your risk appetite, budget and personality. What I can tell you is: 1. Keep in mind that you will spend at least $200 on a minimum deposit to open your live forex broker account. Keep that in mind. I have seen people who buy the forex trading robot and then do not have money left to open their forex broker account. You can test it on a demo account, nothing wrong with that and most brokers do offer a free demo account. 2. In my opinion FAP Turbo is for the more adventurous trader. The one with the big risk appetite, but who also like to see some quick results. I used it on its scalping mode which means that it makes frequent trades on a short time scale (15 minutes) and take frequent small profits. FAP turbo unfortunately do not adapt to market conditions which results in losses when the market conditions change. 3. Forex MegaDroid is in my opinion for the more cautious and patient trader. It has a more long term strategy. It does not trade as frequently as FAP, but it takes bigger profits on each trade. - 46 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. 4. LMT Formula focuses on large gains. Here we do not play with 20 or 30 pips, we go for 200 or a thousand pips at a time. We trade on a long term basis on a daily or 4 hours chart. For the adventure seeker this might not be fun, but I like this strategy. This long term strategy buys me time. I can setup my trades using 15 to 20 minutes of each day and have the rest of the day to myself. What I also like about LMT is that you can watch the signals on your MetaTrader and then execute the trades on other non-MT4 trading platforms like eToro . 5. For Forex MegaDroid and FAP Turbo your system must be turned on 24 hours per day, 5 days per week. If you do not have a broadband connection you can host your MetaTrader on an external server. The server has a permanent connection to the Internet. This means that your MT4 can be running 24/7 without your own PC being connected. ForexHoster offers such a service, have a look at http://www.freeforex.net/go/fxhoster 6. IvyBot –What I do like about IvyBot is that it is supposed to work fine with small account sizes. IvyBot also adapts to changing market conditions. IvyBot uses only four currency pairs to trade and what I like about the system is that it has a separate robot for each currency pair. This makes tremendous sense to me as each currency pair has its own “personality” and you cannot use one robots to make the same decisions on various pairs. See http://www/freeforex.net/go/ivybot In my opinion Forex Trading Robots or Forex Expert Advisers are changing the way people will trade Forex in future. These programs make it possible for any novice trader to churn out mostly positive results. All of above mentioned expert advisors bring out regular updates to their programs and the results are getting better. I am currently using http://www.forexmeta.com/ as broker. WARNING: Always remember that Forex Trading is very risky and you should not trade with food money. Always use a dummy account first. 10. Share Trading There is a general myth that you can easily obtain huge wealth from share trading. Especially the companies selling share analyses software makes it sound so easy. “You buy low and sell high”, that is all. They often use the example that some of the richest people in the world obtained their fame and wealth from shares and not from working for a boss. While this is true, they fail to inform you that those people did not become the wealthiest people in the world by speculating with shares. Warren Buffet became a fund manager at a very young age. He invested other people’s money in big stable companies. If you read “The Warren Buffet Way” (see http://www.businessbooks.co.za/investing.php ) you will learn that Warren Buffet was not involved in short term speculation. He bought large blocks of shares in undervalued stable - 47 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. businesses like Coca Cola and Gillette and kept the shares for many years. He was the richest man in the world and he did obtain his wealth via shares, but he did not do that by short term speculating. People like Bill Gates and Steven Jobs also became extremely wealthy because of shares. The way they did it was to start a very profitable business and list the business on the stock exchange. Because it is their business they keep a large number of shares for themselves. As the value of their company increase, their wealth increase as well. They did obtain their wealth via shares, but not by speculating with shares. I am trying to say two important things: 1. If an agent selling Share Tracking software tell you that you can become as wealthy as Warren Buffet by trading shares, chase him out of your office. 2. Do yourself a favour and read “The Warren Buffet Way” (see http://www.businessbooks.co.za/investing.php ) . By reading this book you will learn what it takes to build a long lasting stable investment portfolio and also what to look for when buying shares. It is actually quite simple, just read the book and you will see. I spent a lot of time and money chasing after “the next hot tip” or “the next hot penny share”. Then I tried the blue chips. It was only after I have read “The Warren Buffet Way” that I realised that there was one small ingredient I did not look at and nobody tells you about it. Read the book and you will see what it is. Another good book to read on this topic is “Rich Dad’s guide to investing” By Robert Kiyosaki and it is available at http://www.businessbooks.co.za/investing.php . In his book Robert explain the difference between the ultra rich and those who think that they are investors in detail. Just like Forex trading it takes a certain type of person to make a success from share trading. Each individual knows what his risk appetite is and knows what his finances looks like. We will not all trade shares for the same reason or in the same manner. The long term investor will buy different type of stocks than the short term investor or the speculator. Just as with Forex trading you can make obscene amounts of profit from share trading if you know what you are doing. Unfortunately you can also loose just as much if you do not know what you are doing. I use share trading as my long term investment plan. There are companies who sell share tracking software and offer share courses. Some of these companies make more money from selling courses than from share trading and you have to be careful who you believe. As broker I use PSG-Online (https://www.psg-online.co.za ) and Standard Bank. Recently a friend suggested that I have a look at Standard Bank’s online platform. At first I were reluctant, but then signed up for the first month’s free trial. - 48 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. I am amazed to see how much resources, information, free courses, etc are offered inside their trading platform. Their brokerage fee is also much lower than PSG. It is hard to believe that anything related to a bank can be cheaper than the rest of the industry, but this is one of those rare examples. See http://securities.standardbank.co.za/ . Here you can also trade on a dummy account before you trade with real money in order to test the system and to see if share trading is for you. If you register as trader on the Standard Bank platform you will get free training and share tracking software as part of the service. Before you spend a cent on share tracking software I would suggest you first register as trader with Standard Bank. Then make use of the various share trading courses and seminars. Use virtual money to trade and if it seems as if you are making a good profit, then only start looking around for other courses and software. (Above is an example of an ordinary man doing referral marketing without even knowing it and not getting paid a cent for his effort. We do it each day of out lives. If somebody from Standard Bank read this eBook, please arrange a cheque for me!) If you would like to buy shares, but do not know anything about shares or do not have time to stay informed about the market can have a look at Satrix 40. Satrix 40 was a JSE initiative and buys shares on your behalf in the Top 40 companies in South Africa. You can invest directly in Satrix. If you invest directly into Satrix the brokerage fee is much lower than using your normal broker and there is no monthly administration fee. You only pay an initiation fee and small yearly fee. Their website indicates an average growth for the past 3 years of 40% per annum. See http://www.satrix.co.za You can also have a look at http://www.equinox.co.za . At Equinox you will find a summary of all the available unit trusts. At http://www.equinox.co.za/unittrusts/funds/fundPerformances.asp the unit trusts are ranked according to their performance. By making use of their service you can select a unit trust to invest in. You will be amazed to see that some of these unit trusts enjoy a yearly growth of over 40% per annum. You can use the help and expert advice of Equinox to select the right unit trust for you to invest in. Keep in mind that the fees you pay for unit trust investments are much higher than at Satrix. There are some websites offering you tips and recommendations on shares. My favourites are http://www.stockpicker.co.za and http://www.redhotpennyshares.co.za What I do not like about Red Hot Penny Shares is that they are part of Fleet Street Publications. You will pay a monthly fee to receive their recommendations, but they seem to think that while you are paying them a fee they can bombard you with all kind of other offers. You will receive an email offering you some kind of money making report just about every week. These reports cost about R300 each and are not worth the money you spend on it. When subscribing to a FSP service you PAY THEM to SPAM YOU. Besides that their recommendations are rather good. - 49 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. That is why I still prefer StockPicker, it is sort, powerful and they do not try to make money from you around every corner. 11. Real Estate Investments This might not be an internet type of business, but it is a good passive income generator and a very good investment if you choose your properties carefully. Real Estate Investments are a slow, but stable and forgiving investment. The keywords here are “if you choose your properties carefully”. You make your profit on the day that you buy your property. Thus it is vitally important to buy the right property at the right price. There are several ways you can earn from real estate investments. 1. You can buy a property and rent it out. You make your money on the capital growth of the property and also from rental income. 2. You can buy and sell properties. You can either buy the property at a bargain, fix it up a bit and sell it again or you can sign an offer to purchase on a new development and sell it again once it has been completed. 3. You can make money by finding buyers and sellers for estate agents or set up a system where you can introduce good property deals to your list of clients. 4. You can invest in property syndications, property trusts or listed property. Above mentioned are only a number of ways to profit from real estate. At the moment there are numerous people offering courses where you can learn how do buy and make money with property without using your own money. (Also see http://www.businessbooks.co.za/realestate for some real estate investment books). Below are some tips based on my own personal experience. These are just basic information. If the information below interests you I suggest you attend one of Gordon Mac Kay's courses for a complete overview and expert advice. See http://www.moneyandyou.co.za for details on Gordon’s courses. I like Gordon’s courses because it is possible for the normal man on the street to get started if you use his advice. You can easily burn your fingers if you try to do this without knowing what you are doing. So I strongly suggest you attend a course before jumping into this market. In order to build a passive income you must buy your properties, let it out and try not to sell them ever again. The only time you sell a rental property is when the area deteriorates to such an extend that you have to sell your property. I know this is not always possible especially if you are earning a small salary. There is one of the real estate investment gurus who calls people who sell their properties “idiots”, but I do not agree with this gent. It is easy to make such bold statements if you enjoy the rental income of 400+ properties, but if you are just starting out and fall into financial trouble it is another story. I also believe that one should keep your properties, but do not cling to them just because some guru said so and in the end you end up getting black listed for bad debt. - 50 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. If you cannot afford to buy a property you can build an income using one of the other income generating vehicles I described in this eBook. You can then show that income to the banks and use it to obtain bonds to buy your properties. Unlike popular believe you make the most money from the capital growth of the property and not from the rental income. Your property will appreciate in value each year while your willing tenant pays the bond for you. It is also advisable to buy your investment properties in the name of a trust or business. If you build up a portfolio of rental properties you will not only benefit from the rental income, but your properties will also appreciate in value. If you registered properties in your personal name and you pass away, your loved ones will have to pay tax on these properties, i.e. estate duty and capital gains tax. But, if you register your properties in the name of a trust and you pass away, these properties will not form part of your estate and no tax on these will be payable. The trust do not die with you and the new trustees of the trust can continue managing your investment after you left. This way the properties never have to be sold, not even after your death. This legacy can be transferred from one generation to the next. All you need is to train the future trustees in managing your property portfolio after your death. How to buy your rental properties I must admit that I first wrote this before the world economic crises and the stricter bond criteria. What you will read below is still valid, the only difference now is that it is not that easy to get a bond from the banks anymore and most of the time the banks no require a 10% deposit which most of us do not have in our piggy bank. There are two ways to buy and let properties. In both cases you use little to none of your own money. That is what banks are for. You buy a property, apply for a bond to pay for the purchase price, fees and other costs and you then let the property. Before you buy a rental property you must first do your homework. It is important to buy properties in a high demand area. These are areas close to work for the middle class and close to main roads and bus routes. The ideal properties are entry level townhouses in security complexes. I find 2 bedroom, 2 bathroom units to be very popular. If you can look for a ground unit, their capital growth tends to be a bit higher than unit higher up. Find out what other properties are rented for in the area where you want to buy. You must keep in mind that you will have to repay your bond, pay levies (sectional title) and provide for maintenance. If you keep that in mind your rental income must cover most of your expenses. It is normal to make a shortfall on the property in the first 3 to 5 years, so you must have capital to cover that shortfall. For the first couple of years all the money you get from this property will go into the bond and you might not profit from your investment yet. There are some areas, like Sunnyside in Pretoria, where you might be able to buy a property where you will make a profit from the start. You must buy a property that is in demand for rentals. At the moment 2 bedroom 2 bathroom units in security complexes are in high demand. The problem is that since there are such a high - 51 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. demand for these units, this is all the developers currently build. So the market gets over saturated and the rent becomes much lower. In Centurion, for instance, you currently pay R800,000 for a 2 bed 2 bath unit, but you can only let it for about R4,500. Add the levy to that and you see that you make a huge shortfall. If you can afford the shortfall, this is still a good investment because the capital growth on these units are very good. Keep in mind that you will increase your rent by 10% each year. On the other hand you can buy a 2 bed flat in Sunnyside East for R280,000 and get R3,000 per month rent for it. Add the levies and you see that you can break even in your first year or two. But the capital growth might not be as good as in other areas. So you must do your homework and decide what you can afford. By now you will realise that you will not make huge amounts of money from rental properties within the first year or two. That is why I added Short Term Investments to my portfolio. If you would like to manage your own rental properties have a look at http://www.landlords.co.za They have some very good rental contracts, check lists and advice on their website. When I started off with my rental properties I did my own management, but now I only use rental companies to do my rental. I mostly use Just Letting, see http://www.justletting.co.za Although the money you receive might only pay the expenses (bond+levy) on the property it still reflects as an income on your bank statement. It is this extra "income" you now use to apply for a bond for your second property, and so you continue. When applying for a bond it is always better to let your auditor show that income as "Income from your different businesses" than "rental income". The banks do not like rental income because it is a risk to them. There are two ways to profit from your investment. This is where you have to decide if you love debt or tax. 1. You love debt, but hate tax Example: You let your property, the rental income pays the bond and you make a loss in your first year or two. You do not pay tax because you do not make a profit. After 5 years you make a profit on your rental income and your property appreciated in value by R200,000. Now you to start paying tax on the profit you make from the rental income. So the clever way is to re-finance that property (take out a second bond). To be on the safe side you do not re-finance your property for more than 70% of its current value. Your repayment amount will increase, taking away the profit you make on your rental income and you will put R140,000 in your pocket which you can use as a salary. You do not pay tax on the R140,000 because it is not your money, but the bank's money. If you have at least 5 properties in your portfolio you can re-finance each one every five years and make a living out of the bank's money without paying tax on it. Why R140,000 and not R200,000? Re-financing is extremely dangerous. It is wonderful, but if you do not use it properly it can ruin your whole life. To be safe you never re-finance the property for more than 70% of its current value. This is a safety mechanism. If something happens and you - 52 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. must sell the property urgently, you can still sell it for 30% below its actual value and get rid of it fast. As I said, re-financing is a wonderful tool, but if you do not know what you are doing you can burn your fingers very badly. You can attend Coert Coetzee’s course for expert advice. Coert is the expert on re-financing. See http://www.treoc.com for more detail. 2. You hate debt and will rather pay tax Some people do not like the idea of making more and more debt and repaying it for the rest of their lives (as described above). So there is another way to do this. The procedure to buy and let your properties is the same as in the example above. The only difference here is that now you use all the money you gain from your rent to pay off the bond as quickly as possible. If you put back every cent you earn, you can pay of the bond within 5 to 8 years (aim for 5), saving a lot of interest in the process. When the bond has been re-paid you use the rental income as a profit. But remember that you will pay tax on the rental income. So you will still buy one property, let it, use that income to apply for a bond for your second property and repeat the process for as long as your cash flow can carry the initial shortfall. WARNING: Buy in a stable area. You want to buy a property where there is a demand for rental properties. You will probably own this property for the rest of your life. So make sure you buy in an area that will remain stable for the next 20 years. Areas with large vacant lands next to it are a big risk. We know what informal settlements do to the economy and to the value of properties, be extremely careful when buying an investment property in the middle of nowhere. A large vacant land can also be good news, it can mean another development next to yours. Unfortunately we can’t always be sure. Do not buy more properties than what your cash flow can handle. Although you use the bank's money your property will most probably have a shortfall of R300 to R5,000 per month for the first year or two. So you must be able to carry that shortfall out of your pocket. If you cannot afford that, rather start small in a good area with normal flats, like Sunnyside or city centre where you can break even from your first month. This is where a lot of "investors" make the mistake. They buy more properties than their cash flow allows and in the end they have to sell their properties at a loss just to get rid of it as quick as possible. These "investors" are good news for us though, because we can then buy those properties from them at a discount. But be careful that you do not fall into the same trap. Short Term Real Estate Investments Many people do not realise that they can make a huge profit from new developments without using a lot of their own cash. Normally when you see the first advertisement board of a new development it says "70% Sold". Often this is not true, but mostly that percentage of properties was bought by investors. Some buy it for long term rental investments and others for short term investment. - 53 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. When the developers start a new development they need to obtain a loan from a bank. In order to get the loan they must give the bank a certain number of signed offers on units in that development as surety. So the developers must sell some of the units off the plan in order to get the finance they need. So THEY NEED YOU! This is where you can potentially make R100,000 profit in one year from a very small investment. In order to buy such a property you will be required to pay a small deposit. The deposit will either be 10% of the price, but lately it varies between R3,000 and R20,000. All you have to do is pay your deposit, book your unit, apply for a bond from the bank of your choice and then wait. Do not worry about the bond for now. You will only start paying the bond on the day of occupation. Normally a development like this will take about a year to be completed. So you pay your deposit, apply for the bond and only start paying the bond about a year later. In that year your property appreciates in value between 10% and 35%. Even with the low property growth rate we are currently experiencing you can still make 35% profit if you buy the right type of property in the right area. The most popular are entry level townhouses in security complexes. From a small investment and a little bit of worries you can make R100,000 profit or even more in a year's time. After you made your money on the first property, you will never want to stop doing this. WARNING: 1. Above example is based on sectional title developments. Be careful, sometimes, especially in the Western Cape, they build Full Title developments. The difference with a full title development is that the developer can start to draw against your bond as they progress with building. Thus you will be paying your bond while they build. With sectional title you may only occupy your property when all the units are completed, thus you only start paying when you can occupy your property. Before you sign for a property make sure whether it is sectional or full title! 2. Make sure the developer is a known and trusted developer. Talk to some of the estate agents in the area and ask if they know the developer (not the estate agent marketing the development). News about a bad developer spread very fast and estate agents tend to know these things first. 3. Buy in a fast developing area. You will make your money out of the capital growth of the property over the next couple of months. So make sure that the value will grow with more than 20% in that area. Do not buy close to informal settlements. Be careful to buy in over saturated areas like Centurion or Gordon’s Bay 4. Read your offer to purchase carefully. Some developers add a clause which says that you are not allowed to sell your property unless they sold all their properties first. If there is such a clause, scrap it and sign next to it. If the developer do not agree to that and you want to buy the property only for a short term investment, move on to the next developer. The ideal situation for short term investments is to sell the property before you start repaying your bond. - 54 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. 5. Exposure. Keep in mind that even though you do not have to service the bond until the property is completed, the bank still regards that bond as your responsibility once it becomes payable. This will add to your exposure with the banks which might prevent you from obtaining further loans for rental properties. 6. This is where my Investors Club early warning system will help you to buy a good investment at the right time. The earlier you buy, the less you will pay and the longer time your investment has to grow before you sell it. See http://www.digiprop.co.za/investor You can also have a look at the following websites: http://www.moneyandyou.co.za http://www.realestatemillionaire.co.za http://www.hope.co.za http://www.treoc.com http://www.sapropertyinvestor.co.za http://www.hannesdreyer.co.za Buy and fix, also called fix & flip If you have an eye for potential you can profit from this type of investment. Most people cannot see the potential in a neglected property. They look at the cracked walls, old carpets, ugly bath, old kitchen and decide that the house is not for them. The seller of the house will have difficulties selling the house because most people cannot see the potential. This is where the seasoned investor can make a good profit. Have a loo at the photographs below, would you pay more than a Million for it? - 55 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. We bought this property at about 60% under its real value. Because it was never fully completed and because it has been standing empty for 2 years nobody wanted to buy it. Elmi and I both have an eye for potential and we bought a very good investment. Often you can buy a neglected house at a price way below its market value. If your credit rating is good, the banks will even lend you the extra money to fix the property. You then fix the property and either resell it at a profit or rent it out. If you are not the handy man type and you do not have experience in the costs involved of renovating a house, you can use a home inspector to inspect the property for you and give you a quotation on what it will cost to fix it BEFORE YOU BUY. Most people buy on the curb appeal. By cleaning and fixing the garden alone you can already add about 10% of the value of the property (if not more). When fixing the property you should use good quality fittings and especially good quality kitchen appliances. That will help to sell the property at a better price. But you must also be careful not to over capitalise. There is a fine balance between fixing it as cost effective as possible without over spending. Rather spend a little bit extra and do a proper job. The kitchen and bathrooms are probably the most important areas in a house when selling. In the kitchen you do not always have to replace all the cupboards. Sometimes replacing only the cupboard doors and tops will make a huge difference. Spend the extra bucks on a new stove. In two of the properties we flipped I tiled the kitchen tops instead of replacing it. It cost a fraction of the cost of replacing the tops and it still looked good. You can have a look at the following related web sites: http://www.inspectahome.co.za , http://www.snag-a-home.net , http://www.ipiglobal.co.za , - 56 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. http://www.propdoctor.co.za , http://www.rentarenovator.co.za , http://www.handymangroup.net , http://www.nachi.org.za I do not personally use a home inspector. I have personally renovated various properties over the past couple of years and by this time know what to look for. A property inspector can charge you a fee of about R2,500 for a proper inspection. See that as a good investment. If you buy the wrong property with hidden structural damage your error can cost you much more than that. Beware of a typical “check list” property inspector. You need somebody who will look deeper than the skin and compile a proper report on the property. Some inspectors will even give you an estimate on the repairing cost of the property. HOT TIP: If you want to you can make about a million tax free profit every 4 or 5 years. If you buy a neglected property and move into it, it becomes your primary property. You fix the property while staying in it and sell it 4 or 5 years later. In South Africa the first R1 million profit you make on your PRIMARY property is tax free. It is important to keep all the tax invoices while fixing the property. Last word of advice: There is an extremely insightful local magazine called “Real Estate Investor Magazine” on the market. If you are really serious about Real Estate Investment I suggest that you subscribe to this magazine. You get information about it at: http://www.digiprop.co.za/investor/magazines Property Syndications, Property Funds and Listed Property The broad general picture of these concepts is the same. They use the money of a group of people (investors) to buy properties, normally commercial properties, and then share the income from those properties with the investors. I am not going into detail about this. It is a topic on its own. I added a couple of comments and website links. Syndications Be careful which syndication company you choose. Go for a reliable, well-known company. If you subscribe the The Real Estate Investor Magazine you will get information about good syndications inside the magazine. One thing I dislike about certain syndications is the following: Example: The owner of the syndication goes out and buys a shopping complex. He offers the seller R40 million for the complex. He then goes and set up a syndication company and get investors to invest in the syndication. But the syndication buys the same property from the owner - 57 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. for R60 million and the owner sticks R20 million in his pocket. In essence there is nothing wrong with it if the owner bought the complex below market value and sells it at market value. Unfortunately in many cases this does not happen and the syndication ends up paying much more than market value for the property. When you invest in a syndication always request to see the valuation report on the property or properties that have been syndicated. Examples of reputable syndication companies are: http://www.sharemax.co.za , http://www.pic.co.za , http://www.pitproperty.co.za , Property Funds and Listed Property Investors accumulate their investments in a property fund. The fund buys commercial property with the investors’ money. The properties are either rented out or sold for a profit. The income is distributed among the investors. Have a look at the Tummah Property Trust at http://www.tummah.co.za If you buy shares in a listed property company you are actually doing the same as buying a property and letting it, just on another scale. One advantage of this concept is that you can invest smaller amounts in property and the other advantage is that you can easily and quickly sell your shares. If you want to sell your property it can easily take 3 months or longer for the transaction to be completed. The disadvantage of investing in a Listed Property is that you must buy the shares with your own money. We buy properties with the bank’s money and here you have to use your own money. You can have a look at the following websites for examples of Listed Properties: http://www.redefine.co.za , http://www.hyprop.co.za , http://www.capemp.co.za 12. Gold – Kruger Rands At the moment Gold is a rather good investment. Although the price varies, common sense tells us that it must increase over the next couple of years. I say so because: Gold is used for electroplating of crucial components in computers; a computer cannot work without gold. Countries like India and China buy large stocks of Gold. While the demand for Gold is increasing, the resources are becoming depleted. Mines have to mine deeper to reach the Gold. So we have a situation of increased demand, but decrease in supply. If you have cash lying around you can buy some Kruger Rand coins and sell it again some years from now. Rand Refinery has a very informative website on Kruger Rands. - 58 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. Have a look at http://www.randrefinery.com/Krugerrands-History.html and http://www.invest.gold.org/sites/en/how_to_invest/coins_and_small_bars/ If you want to invest in Gold, have a look at http://www.altermore.com . With Altermore you can combine your gold investment and referral marketing if you want to. 13. Profit from 0866 Fax numbers You can also earn an ongoing Passive Income by offering a free 0866 Fax number to your clients. With this fax number the client’s fax gets sent to his email address. My free fax number web site is http://www.faxsystem.co.za The 0866 number is a premium rated number. This means that the sender of the fax will pay more per minute for making the call to the fax machine. Thus the owner of the fax number does not pay anything extra for the service. The sender pays extra. The difference between the 0866 rate and the standard Telkom rate is what gets shared between the fax company and the marketing agent (you). Various companies offer different profit margins according to the volumes of new clients in your fax business. This can be anything from R0.10 per minute upwards. I currently get R0.20 per minute. Big companies like Ananzi get about R0.40 per minute. I can now help you to setup your own Fax To Email web site at no cost to you. If you are interested and serious about this venture just drop me an email at email@example.com and I will arrange your site to be created. Your site will look exactly like my site, but you will have your own domain name. I can start you off at R0.20 per minute. I explain how it works at http://pietpetoors.com/blog/make-money-from-giving-away-free-fax-numbers/ This is a slow growing business and you need lots of active clients to make big money, but although the income is small, it ads to the pool of Passive Incomes flowing in. I currently have 1023 subscribers earning me about R1,400 per month. Have a look at http://www.afrikaners.org.za for another example of how I use one of my existing web sites for free advertising. 14. Things you will not make money with on the Internet My aim is not to shoot other peoples’ business down. I tried the ventures I mention below and wasted valuable time and money on them. I never made any money from them in 6 years time. I only lost money. The reason I list them here is to prevent you from falling in the same trap. When you surf the Internet you will get overwhelmed by all the offerings and promises. It is hard not to be tempted. Some of them are legitimate businesses, but if you look at your effort return ratio it is not worth pursuing. Some of the problems are: 1. You spend a lot of time to visit other people’s web sites and “get paid for it”. Problem is you get paid a couple of cents per web site you visited and they only pay you once you - 59 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. earned $100. Most of these programs disappear before you reach $100 or you give up working for peanuts. 2. Paid Surveys are mostly for the USA clients, if you are in South Africa you will pay for the info, but will mostly not be ale to use it because there are not many surveys which pays international clients. You can of course earn money referring others to them, but not for completing surveys. 3. Most data entry “jobs” are scams – period. Here are some of the things you have to watch out for/look out for/be careful of ? 1. HYIP – the so-called High Yield Investment Plans. They are designed to steal your money. They offer you very high returns. Some of them even last as long as a year, but in the end they all fail and disappear with your money. In the real world you can invest in new upcoming companies who seek capital to get started. On the Internet the risk is much higher. Even a child can buy the HYIP software and create his own HYIP website. There is no way that you can track the HYIP website owner or your money. I do invest in high return investments in companies I know and companies I investigated, but NOT on the Internet. 2. The Millionaire’s list – This is nothing, but a good old chain letter. In South Africa this is illegal to operate and participate in such chain letters under the unfair business practise act. Many people fall for this, some might have made some money, but I will not risk my reputation on it. See http://pietpetoors.com/blog/the-millionaires-list/ 3. Home typing or data entry – There might be people trying to run these types of businesses in an honest way. My experience with them is that you pay a registration fee. You then get sent your assignment. You finish it and return it to them. Before you can get your payment they first have to check it for errors. They always find errors and refuse to pay you, until you give up hope. Furthermore the DTi in South Africa declared it illegal to place ads for Data Entry Clerks and other similar scams if it is not a real job your are advertising where you advertise a monthly salary. 4. Home typing or data entry 2 – Another angle they use is to offer a home typing or data entry “job”. You pay for an information document and training. When you receive it you find that all you have to do is to sell the same document. The data you enter is in fact placing ads all over the Internet advertising “data entry jobs”. This is also illegal in South Africa. (also see point 8. “Stuffing Envelopes”, same thing) 5. Online Surveys – You spend hours for peanuts. They normally only pay you once you reached $100 or more, which can take you a year or more. Especially if you reside in South Africa they cannot send you many related surveys to complete. 6. Paid to surf – They fail one after the other. If you can channel the time, energy and money you spend on this crap to real affiliate marketing you can make lots of money. You spend hours earning a couple of cents. You will never get rich this way. 7. Online gambling – It is gambling. Some casinos run with your money. It still remains gambling. It was designed so that you loose more than win. Think for yourself. For the Casino to remain in business they must pay out less than what the clients put in otherwise they cannot make money. 8. Lotto – same story. There is no such thing as luck. 95% of the people who win the lotto are broke one year later anyway, so why go through the hassle? If you are the type who play the lotto you might as well remain poor. Your chances of winning are 1 out of 200 million. - 60 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. If you are really optimistic you can argue that 1 out of 200 million is still a chance. With Adsense or Affiliate marketing your chances are much better to make real money. Rather take your lotto money and invest in something like Satrix - at least there an increase in your investment is guaranteed. 9. Stuffing Envelopes – There are people who try to create jobs this way. But most of the time it is a business where you buy the “how to earn by stuffing envelopes” report. All it tells you is to advertise the same report and when somebody buys it, stuff an envelope with the report and send him the report. Some of them are even chain letters. You stuff the envelope with a chain letter and hope the recipient will pay you. Epilogue Earning an ongoing Passive Income is the best thing you can do. It buys you time and freedom. It enables you to claim your life back. It is possible and easy to earn a living on the Internet and other passive income generators. It is however not as easy as most eBook writers and system builders would like to claim it to be. It is easy if you have been round the block a couple of times and if you run one or more websites. It will take hard work and dedication. If you persevere you will reap the rewards for years to come. Making a success on the Internet or any other business is not only about selling products or rendering a service. If you want to make a success you must start by developing yourself and developing a wealthy mind set. How much do you spend on self education each year? Compare that to the amount of money you spend on toilet paper each year. You will then realise what your priorities are. I strongly suggest that you look for and subscribe to a service in your country where you can get motivational books and talks on a monthly basis or buy yourself (and read) one personal development book per month. You can get a list of books at http://www.businessbooks.co.za . Also subscribe for the daily motivational emails at http://www.bemotivatedtoday.net/1239 You must realise that your government will not be able to support you when you grow old. You have to take responsibility for your own life. Do not wait for somebody to make it happen for you. Ghandi said, “You must be the change you would like to see in the world”. Many people suffer from the “entitlement” syndrome. They think that it is the duty of their government to provide jobs, food and money. Why not go out and do it yourself? I strongly suggest that each person read the latest book written by Donald Trump and Robert Kiyosaki called “Why we want you to be rich” . See http://www.businessbooks.co.za/donald_and_robert/index.php Making money on the Internet is not a “Get rich quick scheme”. It is a true business. If you run it part time you will earn a part time income. If you run it full time you will earn a full time income. I am one of those people who do not work for a boss. I spend about 2 to 3 hours per day working on my Internet business. I do not have a boss who dictates my life, who tells me when I am - 61 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount. allowed to eat, call my wife or go to the loo. I took control of my own life and you can do the same. It is all up to you. You determine your own success. Only you can determine what amount of time and effort you will put into your Internet business. In the end you write your own pay cheque. Good Luck Pieter Pretorius Ver 14/01/2010 - 62 - You can also buy my step by step video tutorials where I show you exactly how to build your own web site. Get it at http://www.createyourownwebsite.co.za . Use the promotional code passivein2 to get R175 discount.