Smart Passive Income #75 - eBook Landing Page

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Pat's secret of selling ebooks?

The Landing Page

For Pat the landing page is like an infomercial, and should be treated as such:

1. Define the problem your product solves.
2. Show how it solves that problem.
3. Show your product.
4. Provide (real) testimonials.
5. Provide details of your product.
6. Show how ridiculously cheap your product is.
7. Provide a bonus gift.
8. Provide a guaranty.
9. Limit your product (only 3 pieces left ...)
10. Do split tests

Smart Passive Income #74 - eBook Selling

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The fifth part of Pat's "how to publish and ebook" series address the most important part of the passive-income process - the automation. Again the article is a little bit outdated but gives an idea on how and what to do.

Smart Passive Income #71 to #73 - Creating eBooks

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Pat's articles on how to publish eBooks is quite a bit outdated (early 2009), there are numerous tools out there (even for free) which makes creating eBooks even much easier. But there are a couple of tidbits you do not want to miss, e.g. the sections you might (should) want to include in your book:

• book cover
• disclaimer & copyright
• preface about the reasons you created the book
• notes about you (the author)
• links to your sites
• helpful tools
• contact information

Smart Passive Income #70 - eBooks vs Hard Copy

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One way of creating passive income (remember: creating a product once, setting up an automated process to sell, and earn money "without further" work) is selling ebooks.

Nowadays it's also not that difficult to publish "real" hard-copy books using various print-on-demand service. While paper is the traditional way to read more and more people read digital books. One major drawback is the production and delivery cost, which Pat calls even "loose money" ... Which of course would imply that people are willing the same prices for digital ...

Smart Passive Income #66 to #69 - Income Report - Marriage - Numbers - Recap

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Pat's income for February 2009 increased another 20 % to more than 24.000 USD (IRS will love to see that). Congratulations! Pat married. Congratulations again! ... and more number games about his income ... and a recap about the blog which by then is six months old ...

Smart Passive Income #56 to #65 - Guest Posts - Honeymoon, Growing Lawn, Geek & Passion, Passive Income from Passive Income, Dreams, eHow & Referral Links, Master Strategy, more eHow, Real Estate, Content Sites

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It's February 2009 on Smart Passive Income, Pat is on his Honeymoon and wrote a guest post on another blog (which seems quite dead in 2013). Nevertheless writing guest posts on other blogs is a nice way to increase your own web traffic ...

In return a guest post appears on Pat's blog ... which is about "growing a new lawn" and does not really have to do anything with passive income ... I might be wrong ;)

Another guest post could be about passive income - again I might have interpreted that post the wrong way. It address being a geek and passion, and how talking about that can end up in passive income ... 

Yet another guest post explains on how you get even more passive income from your passive income ... namely decreasing your tax on your income and how increasing interest (which is again passive income) ...

... how to turn dreams into passive income ... actually more dreams than howto ...

... another article explains how you can earn money from an eHow article even if that very same article on eHow only makes a couple of cents. The idea here is that you put referral links to products into your article ...

... the strategy of another poster combining blogs, ebooks and informational products on personal finances seems not to have paid off ... the site is down ...

... same with the get organized with with eHow articles ...

... another idea is about passive income in the real-estate business by generating income through relationships. The site is up and running, last blog entry about a year ago ...

... and finally an entry about writing articles for content sites (like eHow) ...


In summery nine guest posts, four of the referred sites are still active!

Smart Passive Income #55 - Guaranties

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Pat's 55th blog post addresses guaranties. Guaranties like "if you are not satisfied, you get your money back" seem to give your customers a sense of security ... and it seems they do not use that offer all to much ...


An even more extreme kind of guaranty is the loose-win guaranty introduced by Tim Ferris, where you not only return the money paid but in addition pay an extra fee. That way the customer gets something an incentive from your product even if he returns it ...

e.g.:

• You sell a product for 25 USD. If the customer returns it, you pay 50 USD instead of the original 25 USD.
• You sell a product and provide an additional gift for free. If the customer returns the product he can keep the gift.
• You sell a weekly newsletter. Should you fail to deliver one week your subscribers get paid 25 USD.

Does this pay off? Are there more nice customers than "bad" one ...

Smart Passive Income #54 - Failure necessary for Success?

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Have you noticed that every good success story starts with failure?

It could be that's just what happens. And of course failure is chance for improvement, bla bla bla ... Or could it be that we do not like people who succeed all the time. That in order to give somebody our full attention, that somebody needs to have an imperfect life?

There is even a wikipedia entry "from rags to riches". It seems we like a person better if they rose from poverty to wealth.

Imagine two books, one about a person who overcome all sorts of obstacles, made his/her way and became rich, the other one of a child of a millionaire who founded another successful company?

Lets have a look:

• Steve Jobs, who started broke in his parents garage ...
• Bill Gates, sun of rich lawyers ...
• Michael Jackson, the eighth of ten children from an African-American working-class family living in a 3-room hut ...
• Willow and Jaden Smith, whose parents are worth about 200.000.000 USD

... surprisingly you can find in nearly every VIPs life some tragic story they overcome to be successful ... like a disease which is "not dangerous but bothersome" (please not that's a real quote!!!), ... of course than you can over come your drinking and drug problems, ... and it seems necessary to marry and get divorced quite a lot to find your true soul mate, ... and nearly everybody worked at some point at McDonalds (... I do not really see the misery there ...)

... and of course Pat has his failures he had to overcome ... does this make him more likable or just a marketing genius?

Smart Passive Income #53 - More on Advertising

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Pat revisits advertising. He starts by describing different formats like horizontal, vertical, square banners or text ads ... when an how to use ... put them where the fit into your web page without distracting from your main content ...

Concerning selling your advertisement space Pat explains that you should provide click reports with click-through rates. Provide discounts for long-time customers, don't forget to make contracts - like before Pat suggests to browse the internet for suitable contracts ... but please prefer your local legal counsel instead! ... and you might want to checkout your customers before accepting any advertisement blindly.

Back to pricing, go get an idea on how much you might be able to charge, browse around in Google Adwords (Pat suggests to use a not-anymore-available tool ... but Google has now different ones ...) and multiply the numbers there by your click-through rates ... finally you will not get more than your customers are willing to pay, but you might get an idea of what is possible ...

Smart Passive Income #52 - Private Advertising

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Pat introduces another way of passive income: Private Advertising

In a previous blog post we learned about advertising from sources like Google Adsense. There you provide a space on your web page to Google which it fills with advertisements from various sources. When visitor clicks on these special links you get paid a certain amount ... which is called pay-per-click.

Private advertising means that somebody pays for putting an advertisement on your homepage. Typically this is limited to a special product or a certain company and you are paid a certain amount per month which does not depend on the number of clicks of your visitors.

The size of the sum depends on your negotiation skills and of the number of monthly visitors.

If you are really lucky that special somebody - willing to pay real money for virtual space - contacts you asking for your rates ...

Most likely you will have to look for those somebodies yourself. You could do that by putting up blank advertisement spaces saying something like "Want to advertise?" ... or you could contact certain companies and ask them if they want to advertise ...

Is Private Advertising really Passive Income?

If you are lucky as mentioned above certainly ... You upload the advertisement to your server and get paid without further intervention from your end ... that's passive income ...

If you are using the Billboard Method from above ... You upload your offer to advertise, somebody finds you, contacts you, you upload the advertisement to your server and get paid without further intervention from your end ... a little bit more work but still passive income ...

If you are using the Headhunter Method from above ... You look for suitable companies, contact them, upload the advertisement to your server and get paid without further intervention from your end ... now it really depends on the contacting steps ... if you spend more time contacting then you get out of it ... you might still call that passive income ... but you might want to rethink your strategy ...

Smart Passive Income #51 - Car Accident, Personal Tidbits, Peeping Tom

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Another strategy that Pat uses is sharing from his personal life. Today (actually nearly five years ago) he had a car accident which of course was life changing. It brought him to rethink his priorities, etc ...

Why do we like to read about the life of other people? Because deep in us there is a little peeping tom ... Reading about others, is much easier then living on our own, and it feels we are connected with the story teller ...

Smart Passive Income #48 to #50 - Income Report - eHow - more Legal Advise

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Pat's income for January 2009 passes 19.000 USD ...

... his eHow experiment continues (Remember he wanted to write five articles a day for a year and stopped within the first month. He made about 20 USD in his first month, and nearly 100 USD in his second month. From this he calculated that his third month will reach nearly 500 USD ... well it did not, it increased slightly but is still around 100 USD).

... in 50th blog post Pat explains why it is essential to separate business from your private life/accounts ... while is explanation is very detailed and interesting to read please ask your local legal counsel ... don't take the information you find on the internet for full ...

Smart Passive Income #48 - Professional Advise vs Internet

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Today - actually nearly five years ago - Pat learned that it's not a bad idea search for professional help.

Yes, there is lots of information out there on the Internet. How to earn money, how to create a company, how to fix your marriage ... Nevertheless, when it comes to topics where the formal education takes a couple of years, and you are required to additional training and lots of experience to be able to do your job, you might want to wonder why? Maybe, the topic is too complicated or to too extensive to be learned on a weekend training or by reading a couple of blog entries ...

When a topic touches in any way a legal or a medical topic, look for professionals!

Smart Passive Income #47 - Bachelor Party - Passive not that Passive - Questions & FAQs

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For his bachelor party Pat was away from his computer for more than a day at admits passive income is not all that passive and that it might not be the perfect business model ...

Again, passive income means you create a product once, setup an automated process to sell that product to your customers and get money without investing further time.

It turns out, it does not really work that way. Pat receives tons of emails with all sorts of questions - not even all about his products. Of course you could ignore them ... but then you might your customers to recommend your product to others, or keep them as customers for future products.

You need to answer your customers, be polite and most of all quick. Customers hate to wait for a response!

If you find that you are asked the same questions again and again, create a FAQ page to limit such questions ... unfortunately lots of people will keep asking, even if their questions are answered perfectly in your FAQ.

Smart Passive Income #45 & #46 - Health - #1 Secret to Web Traffic - Be Nice!

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Pat is still training his body and getting healthier and he shares his number-one secret to increasing traffic to your web side:

Beeing nice to your visitors!

Agreed! 100% ... however (there is always an however) if there are no visitors, it's hard to be nice to them ;)

There is actually a Czech proverb (at least so I was told):

 It's nice to be wise, it's wiser to be nice!

Smart Passive Income #44 - iPhone Apps

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In his next blog entry Pat defines the business of iPhone Apps as passive income.

Let's see. Passive income means you create a product once setup a process to sell it automatically, and do not need to add further work to make money.

Once you have submitted an iPhone app to the app store, people find your app in the app store, buy it and download without further work on your end ... which basically means passive income.

As example Pat provides iFart - development costs minimal, revenue incredible! I agree the potential is enormous, which might be the reason the app store is full of sub-standard apps ... and this is the point where the passive is not so passive any more. How to you tell your potential customers that your app is available - the times where a iPhone user browsed through all new apps on a daily basis is long gone. A one-time marketing campaign for your app might boost your sales, but you will rapidly dwindle from the top-100 list ... which makes your app nearly invisible ...

If you have a unique idea for an app, go for it. As Pat points out, you do not need to be a developer yourself, you do not need to do everything yourself. If you need help, let me know ;)

Smart Passive Income #43 - PPC Affiliate Marketing

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With blog entry #43 Pat returns to smart passive income. He actually did not stop but now he returns to writing about that topic.

Remember, passive income means you create a product once, setup an automatic process to monetize your product ... and earn money without further work.

In this blog entry Pat introduces PPC affiliate marketing.

With affiliate marketing, you need to find somebody who has a product and pays you a fee when you allure somebody else to buy that specific product. E.g. if you have blog, you could write an article about a product and link to it (using a special affiliate code). If somebody uses that link and then buys the product, you get a fee ...

The PPC stands for "pay per click". In the example above you might have the problem, that people need to know and visit your blog to be able to actually use your affiliate link. To increase the visitors to your blog you can e.g. use Google Adwords and pay (per click) to be on top of a search result to increase your visitor stream. Depending on the keywords you use and the click-through rate (meaning that not everybody visiting your article will actually also buy the product), PPC affiliate marketing might be the solution for you. If you spend more money on adwords than you get as affiliate fee, you might want to reconsider this strategy.

Smart Passive Income #42 - Time Wasters - TV & News

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Pat went to a couple retreat for soon to be married couples and learn two things you should stop/limit to strengthen your relationship. 

• watching TV
• consuming news

... both seem to be time wasting for couples. Pat extended this insights to business. True, instead of starring into your television set or reading a newspaper you could work. You could also limit your sleeping hours and your spare time. Leisure is overrated anyway. ... sorry, but if your relationship is trouble because of TV and news your problem lies much deeper ...

Pats retreat happened in a secluded monastery. They had no TV or internet. Some participants asked the group leader for news from the outside world. ... if you feel cut off from the world within a single weekend, there is definitely something wrong ... I doubt stopping watching TV or the news will help ... come one, it was a "couple retreat for soon to be married couples" not a "retreat for soon to be divorced ones" ...

... back to the story. Their group leader went home and printed some news sites from the internet ... that Hugh Heffner was cheated on ... sorry again, that's not news, that's gossip ...

And now the conclusion: If watch TV to avoid your work ... limit your TV time. If you equal news and gossip and can't be without ... limit that, too ... otherwise, you are fine ...  

Smart Passive Income #40 & #41 - Company, Legal Form, Counsel

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Pat started his own company - or better said he changed the legal form of his business from sole proprietor to an LLC (Limited Liability Company). For more information and/or advice on legal forms please go to your Local Legal Counsel (bun intended).

Please do not take anything for granted you read about legal matters in personal blogs or wikipedia!

Smart Passive Income #39 - Reading & Matrix - lots of Books - [non]fiction

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It's January 2009 in Pat's "Smart Passive Income" blog - the 39th blog entry compares reading with learning - more specific - Pat claims that when he reads, it is like downloading all that information into his brain - like we have seen in the film Matrix ...

... sorry here comes the skeptic ... When Pat downloads all the information into his brain by just reading, why does he need to keep his favorite books on his desk? Either the download does not work that flawless, or is there limited storage capacity.

Being not Neo, having no interface available which could just plug-in information directly into a brain, reading is only the first step of the learning procedure. Especially for new information you need to extract the essentials, turn them around, play with them, and when possible implement them. You cannot learn a new language by reading a dictionary and a grammar book. You will not master cooking or - to refer to Pat's last blog - a sport by reading about it ...

... actually, the books Pat mentions are really interesting:

• The 4-Hour Work-week by Timothy Ferriss is THE classic of passive-income literature and a must read. ... and actually the only one from this list I have read :(
• Moonlighting on the Internet by Yanik Silver ... about Internet marketing
• The One Minute Millionaire by Mark Victor Hansen & Robert G. Allen ... the description on Amazon sounds ... well ... can't say ;)
• The Millionaire Mind by Thomas J. Stanley ... same as above? ... is it enough to think like a millionaire to become one?
• The Exceptional Presenter by Timothy Koegel ... about public presentations
• Rich Dad, Poor Dad by Robert T. Kiyosaki ... on money-making philosophy?

As mentioned above, I read only the first one. Note - I only read it, I did not implement it, that's the only reason I am not a millionaire ... and now comes the "fun fact": Pat says in his blog he only reads non-fictional books - Tim Ferriss says in his book he only reads fiction ...

Smart Passive Income #38 - Scoring and Achieving ... Comparisons?

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Pat compares life to sport:

• Both have written and unwritten rules.
• Both need hard work, will power, and some times just luck.
• In both - if you have success, you like it - if you don't, you don't ...
• In both support from others is essential.
• In both you need to score and achieve goals.

... let's compare life to an apple tree:

• Both start out small and vulnerable.
• While there might be a straight line to success, you will take detours to see the sun.
• Eventually you will see the fruits of your life.
• Parasites will try to spoil your fruits.
• It sucks if you get struck by lightening.

 ... well ...

Smart Passive Income #36 & #37 - Income Report - eHow - Recap

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Pat's income report for December 2008 says he has made more than 12.000 USD - nice for him, and of course the IRS. He also summarizes what he had learned that month and makes new goals for January ...

... in the second month of his eHow experiment Pat did not write any new article but made nearly 100 USD from his old articles ... which you could call a perfect example of passive income ...

Smart Passive Income #35 - You cannot loose money you never had

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Pat starts by saying he has lost 10.000 USD ...
... then he revises his statement saying the missed out making 10.000 USD ...

How so?

... if he had started earlier and e.g. by a single month and would have earned last month what he earned this month and this month what he will earn next month ... THAT'S JUST SICK MATH!!!

With the same argument you could encourage child labor. Because when you start working at an age of 6 years instead of 18 years, you gain additional 12 years of income ... isn't that wonderful? NO, IT IS NOT! (sorry for my capital letters, that blog entry is really stretching it ...)

Ok, I agree. If you have business idea and do not start carrying it out as soon as possible, or actually do never start ... that's bad ... but you do not loose money ...

... imagine how much Google lost because they started in 1998. If they had started in 1992 ... well, that would be six years more income ... or could it be that their time was not up in 1992? ... could it be that, Google would have been another Altavista, or Yahoo? ...

... if you have an idea, go for it. Don't worry, that you start to soon or to late, only you and your customers can tell ... prepare and you can limit the risk ... don't over prepare  or you might never actually start ...

Smart Passive Income #32 to #34 - Christmas Gifts - Split Tests

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One day before Christmas (may be two days depending when you celebrate Christmas), Pat gets new podcasting equipment ... maybe a new genius passive-income strategy?

... and on Christmas Day (seems Pat celebrates on December 25th) he provides a number of fun links ...

... back to "work" again Pat addresses Split Tests:

With split tests you divide your customers in e.g. two groups. Each group sees a different version of your web page. If you have enough customers (for statistic reasons) the version which produces more income, should be the better one ...

With split tests you can test

• different colors for background, fonts, buttons, or images,
• sizes for fonts, buttons, images,
• location/layout of your objects, e.g. if you better place the "buy now" button on top or on bottom,
• content and wording, e.g. if a "buy now" button shows better results than a "put into cart" button,
• or even different prices, offers, etc ...

To see which version does better, you can check their sales, or the number of new subscribers, or clicks ...

Pat refers to the Google Website Optimizer - which does not exist any more - but you should be able to do some testings using Google Analytics ...

Smart Passive Income #31 - Setting Goals

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Pat has reached his goal of 100 subscribers. This blog has a grand total of zero subscribes. Because I did not set a goal? I should start defining goals!!!

How to set a goal?

Setting a goal is not really the hard part. I want to be a millionaire by tomorrow. See, it took just a couple of seconds. Will I reach my goal? Well, I could win the lottery. Only two problems, I did not by a lottery ticket (which I could change by just buying one), and there is no draw tomorrow...

Set a goal which is actually achievable!

I was once told to set a goal and then raise it to 120 % ... which might be a good idea when you set the bar to low. ... but is just stupid, when your goal is already at 100 % of what you are able to do ...

Break down your goals into sub goals! To stay motivated divide your goal into smaller achievable steps. This will help to stay motivated and you will see immediately if you need to adjust your goal to be a little bit more reasonable ...

Smart Passive Income #30 - The magic of Buy Now Buttons - Split Tests

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How to test how your customers see your web page design?

Do Split Tests!

Create different versions of your page and split your audience so that part of them see only one version, and the other part see the other version. If your audience is large enough, the page which produces more sales, should be the better one, right?

The different versions do not have to be all that different. You can even test small changes, e.g. the size or the text of the order button.

Pat cites an article from drivetraffic.com, where 47 different versions of buy buttons got tested. The conclusion:

• bigger, fatter buttons do better than smaller buttons,
• use orange buttons on lighter backgrounds,
• use "add to card" instead of "buy now",
• place credit-card logos bellow the button for a sense of assurance and safety,
• place a strike-through retail price next to the sale price 
• ...

Smart Passive Income #29 - The Skeptic Arises

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... the skeptic arises: The idea behind smart passive income is to work hard once, create a product and sell it using an automated process, not having to invest any more time into that particular product ... compared to a nine to five job where you only get money when you actually do work ...

Pat postulates two formulas:

9-to5 ... time * wage = income

... meaning you get only paid when you work. To get more income you need to work more or increase your wage ...

passive income ... product = income

 ... meaning once you have a product you have income ... well, ... the product does not need maintenance? ... no updates? ... no continuous marketing efforts?

Smart Passive Income #28 - How to Develop your Product

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... previously on Smart Passive Income ...

What's Smart Passive Income? You create a product (most likely an information product), setup an automated process to "sell" it, and make from that without further effort ...

... and now the continuation ...

Do you have problem finding YOUR product?

If you sell an information product, you should know what you are talking about ... however, you do not need to be an expert to start with. Pat, for example, was no an expert on leed architecture when he started to gather study material. Even when he had passed his exam, there are definitely more experienced people out there knowing more about the topic. But his unique point of view - as student learning for that special exam - helps other people preparing for the exam. And they are willing to pay for that piece of information ...

Smart Passive Income #27 - Life Lessons - Goals & Plans

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Pat hired a personal trainer and compares smart passive income with working out.

If (better would be when - remember take care of your health) you work out, you need a plan/goal. Do you want to build muscles? Do you want to be lean to be able to run a marathon? ... if you don't know, ... what kind of training do you pursue? Do you lift weights? Run? ...?

Same with ... actually everything else, not only making passive income. Define a goal, derive a plan on how to meet that goal, go for it!

Smart Passive Income #26 - Birthday, Coincidence, Fate

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Pat's 26th blog entry is on his 26th birthday. Coincidence? Fate?

... and he reveals another major secret! Share! ... not your money, but personal information about yourself. It seems there is a tiny peeping tom in everybody of us. We like to read/hear/watch about other peoples life, countless reality TV shows are prove! ... Sharing information about yourself creates a connection between you and your customers ...

... and of course (there needs to be a skeptic remark): ... it makes identity theft so mach easier ...

Smart Passive Income #25 - Revelation - The One and Only Secrete Behind Passive Income

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What's passive income?
You create a product. You setup a process to let customers consume that very product without intervention from your end. You earn money without needing to do anything else.

What's the big secret behind?
!!!Automation!!! The essential part is that your process is automated, and you do not have to intervene. If you have to handle every product for every single customer yourself, it is not passive any more.

If your process is automated, you do not be part of the actual selling process any more, and it does not matter if you have a single customer or 100.000 ... AUTOMATION ...

Smart Passive Income #24 - eHow Recap

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Pat has finished his first month at eHow. How does it work? He writes articles on their web page and gets a cut of the revenues of the advertisements displayed with his articles ...

Originally Pat planned to write five articles per day for a year. After a month he has written 130 articles and has earned 20 USD ... True, it you look at the graph of his rising income - it look exponential - will that continue? Hardly ...

... and he reviews a book on how to increase your earnings on eHow. ... it took 15 minutes to read ... seems it is more of a booklet ... the author is a superstar on eHow because she makes 1000 USD a month on eHow ... seems either the definition of superstar is wooly ... or at an average you do not make much money on eHow ...

... concerning my own experiment on hubpages which has a similar concept ... I subscribed, set everything up, wrote my first article, and got rejected ;) ... ok, I will never see any money, if I do not continue, but for the moment I am not really motivated ...

Try for yourself, go to hubpages, and life up your creativity!