Passive Income Business Explained

Passive income is a way to make money with a one time effort only. For example, you build a house and then you make money with the rent of it for the rest of your life.

Online it’s no different, you build a website and then it will make you money for life. This is just in theory. In real life things do not work like that.

Let’s take the house example. You build a house for 100000$ you pay taxes on it and then you will rent it for $400 monthly. After building that house you can either leave with 400$ monthly for the rest of your life or you can build another house and earn 800$ and so on. The problem is you are not the only Force in the town. There are always another players who are making the very same thing and this has two effects on your business: 1. Materials are more expensive because competition will make prices soar here. 2. Your rent value will decrease because there are more options.

The dream of working once and monetize forever is just a dream. Because of other players, competition, society changes and more you need to keep up with changes all the time and make the right changes to your site.

For example, do you remember when watches were the top class thing? Now a watch is worth almost nothing, even the most recognized ones because the cell phone now has the same features and more. The watches businesses either closed or they had to keep up with the society changes.

Some famous eBooks will tell you have to make a great website and then with just affiliate products and advertising networks you will make money for the rest of your life. Well, not so fast. Take the house example above. On the internet you have millions of players trying to make the same thing and they are fierce! If you were the only game in the town I am sure you would be super successful, but now with all the other players you just need to keep on building passive income forever.

If you are a house builder you might have to keep on building houses forever. Since your old houses will have it’s value decreased over the time and new houses are being built everyday you just need to keep building passive income forever.

Also the more you build the more you will earn so I do not understand why some people just want to build once and earn forever. It would be much better for them if they just kept on building all the time.

Now if you are just online you might want to know how to keep the traffic in your site. Search engines are the number one traffic source for any website because the web is huge and when you want to find something you just go to Google or any other competitor.

To keep search engines happy you need to build more pages all the time, and to keep your visitors happy you need to give them new content they have enjoy.

If you stop adding new pages to your site, your rankings will steadily decrease and you will lose new visitors and the loyal ones will have no reason to visit your site because there are no new pages to read.

Passive income where you build just once and then you earn forever is just a dream. It cannot be done in real life.

Keep on building.