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Get Paid To Earn Passive Income

April 22, 2008 By: Randy Category: MLM, Passive Income 1 Comment →

It’s been said that it takes money to make money. Even I’ve mentioned that you need you can’t start developing passive streams of income unless you’re willing invest a lot of time and money in the beginning.

Don’t have any money to invest? Don’t worry! The internet is full of ways to earn extra cash. If you’re willing to put in the time, you can easily earn over $300 in your first month. Sure it’s not a fortune, but it’s a nice start.

For those of you who want to earn your fortune from scratch, “Get Paid To” sites are a great way to build your bankroll. A couple cents here and there may not seem like much, but when it only takes you a minute to complete a task, it can add up fast.

In addition, the programs presented here all have multi-level referral programs so can turn them into sources of passive income once you grow out of your “get money now” phase.

Here’s a step-by-step guide to building your bankroll using “Get Paid To” sites:

SET UP

There are a few tools you’ll need set up before you start earning money. In the world of “Get Paid To” sites, there are four things you need to deal with: Filling forms, Spam, Spyware, and Getting Paid. Here’s how you get around all three:

Filling Forms

Most of the work on “Get Paid To” sites involves filling out forms so it makes sense to save time by automating the process. To that end, here’s a free tool called RoboForm.

All you have to do is fill in your information once, then RoboForm will fill in any form for you with the click of a button. This software will take most of the work out of your “Get Paid To” sites. The link looks like it’s a paid program, but click the download link at the top. It’s free.

Spam

This one’s easy enough to deal with. Go to Hotmail and set up a new email account. This will be the email that you use when you sign up for all the free offers that “Get Paid To” sites want you to sign up for. All of the spam from these sites will go straight to your new email account and you can delete them all with the click of a button.

Spyware

Some of the websites that you’ll visit to complete tasks will attempt to load spyware on to your computer. Some web browsers have measures to prevent this, but here’s a free tool to remove any spyware that gets past your usual protection.

Ad-Aware is one of the best tools available for removing ad-ware and spyware. Not only is Ad-Aware free, but web updates are free too!

Getting Paid
Most sites will mail a check to you, however it helps to have a PayPal account so you can get your money fast. Some of the “Get Paid To” sites will even pay your PayPal fees for you!

After you set up a Hotmail account, a PayPal account, download and setup RoboForm, and download Ad-aware, you’re ready to begin earning money.

SIGN UP AT “GET PAID TO” SITES

Now that you’ve set yourself up, it’s time to sign up at “Get Paid To” sites. Here’s a list of my top four sites. These sites were chosen because the meet three criterion: They actually pay when they say they will, the tasks don’t require you to buy anything, and they have great referral programs (providing an opportunity to earn passive income).

Cash Crate

Cash Crate is my favorite “Get Paid To” site. Once you log in, you see an easy to use list where you can easily see what tasks are available, how much they pay, and what you have to do to get paid. Once the task is complete, you simply hit the submit button next to the task and collect your money. JOIN CASH CRATE

Cash Lagoon

Cash Lagoon uses a point system for completing tasks. All tasks have some point value attached to them, but since 1 point = $1, it might as well be money. The good thing about Cash Lagoon is that you can get paid when you have as little as 2 points ($2). They also pay all of your paypal fees so you don’t lose any money when you’re paid! Some of the offers require you purchase something, but Cash Lagoon is good about disclosing the cost so you can easily avoid offers you don’t want. JOIN CASH LAGOON

Gangster Greed

Gangster Greed has and easy to use list of tasks with good descriptions. It also has a daily survey worth $1 that you can take every day you log on. Gangster Greed also has an instant cash out systems so you can get your money when you want it. JOIN GANGSTER GREED

Fairy Tale Treasure

Fairy Tale Treasure will give you $2 just for signing up here. This site takes a little getting used to. It’s a bit harder to navigate than the others but once you get used to it, you can easily search through surveys, free trials, paid offers, or whatever. JOIN FAIRY TALE TREASURE

TELL YOUR FRIENDS

All of these programs offer referral programs so you can earn money by helping others earn money. After you register with all four sites, send an email to all of your friends with your referral links. When sign up and start completing tasks, you’ll both earn money!

COMPLETE OFFERS

This step should be obvious but it’s the step most people neglect. You have to actually complete offers to earn money. Set aside some time every day to complete offers and complete as many offers as you can on one site before moving on to another one (consolidate your earnings). I’d move through them in the same order I presented them to you. Start with Cash Crate and end at Fairy Tale Treasure. If you can commit to earning $10 a day, you’ll have a little more than $300 a month to invest in your passive income ventures.

PUT YOUR EARNINGS ON AUTOPILOT

Get the word out about your earnings and help others earn money too! The beauty of these sites is that you can earn money by helping others earn money. Once you get enough people to sign up, you’ll be making $300 a month without completing a single offer.

In the end, it’s all about developing streams of passive income. It’s true that you need money to make money. These “Get Paid To” sites will help you earn the money you need to start your wealth building. They also have the potential to become a source of passive income for you. Don’t take your eyes off your goal and don’t be afraid of a little work. There’s always a way to achieve your goals.

Popularity: 35% [?]

How to Manage Your Risk on Prosper.Com

April 19, 2008 By: Randy Category: Invest Money, Passive Income No Comments →

If you haven’t read my first article on Prosper go back to get a little background first.

For those of you who are reading on from the first article, you can already see the potential Prosper has for earning passive income. Of course there’s still risk involved in loaning money to strangers, so here are some tips to help you make smart lending decisions.

Know Your Default Rates

If you’ve been reading my blog recently, you know that I believe in exploiting probabilities. That’s exactly what you’re doing when you loan money. For example, people with B credit will default 1.80% of the time. So if you make 100 loans at $50 each to A credit borrowers, you’ll lose $100 on average (rounded up to 2%). Here’s how we use that information:

APR Desired: 15%

Money Invested: 100 loans @ $50 ea. =$5000

Money Invested: $5000

Default Rate: 2%

Annual Income: $750 = $5000 x .15

Effective Money Invested: $4900

Then we figure out what interest rate we need in order to earn $750 annually with $4900 invested.

750/4900 = 15.31%

Here’s a table of historic default rates on prosper.

Know Your Borrower’s Debt to Income Ratio

Debt to income ratio is determined by dividing a borrower’s fixed monthly expense by their gross monthly income. Ideally your potential borrower should have a debt to income ratio of 20% or less. The higher a borrower’s debt to income ratio, the higher the lending risk. You’ll need to take that into consideration when determining what interest rate to accept.

Follow the Money

Where are all the seasoned members of Prosper putting their money? That could be a good indicator of where the good bets are. Look for loans that look like they have a good chance of being fully funded.

Diversify, Diversify, Diversify

No matter how careful you are, you will have loans default. It’s a statistical certainty. The good news is that if you followed my advice, your portfolio is prepared for it. In fact, your portfolio is expecting default.

If you’re not properly diversified you’re gambling. You need to spread your money around to as many loans as possible that meet your criteria. For example, $1000 should be divided into 20 loans at $50 each rather than one loan of $1000.

Prosper.Com offers the average person the opportunity to make money in lending. As in all investments there is some risk involved, but with proper risk management you can earn returns far above the market average.

Ready to start? Join Prosper.Com and get a $25 bonus!

Popularity: 37% [?]

Prosper.Com: Make Money Lending Money

April 19, 2008 By: Randy Category: Invest Money, Passive Income, Recommended Products 1 Comment →

Lending money can be a great way to earn passive income. Take credit cards for example. If you’re like most people, credit card companies are earning passive income off you right now. How much interest do you pay on those credit cards of yours? 8%? 10%? 21%? Not a bad return for the credit card company.

But how can you capitalize on lending money? I’m willing to bet that you don’t have hundreds of thousands of dollars to properly diversify a debt portfolio nor the resources to properly collect payments. That’s where Prosper comes in.

Prosper.Com helps potential lenders make money by matching them up with potential borrowers and the minimum required to invest is only $50.

Here’s how it works:

Borrowers sign up for an account with Prosper.Com
Prosper verifies their identity and grades their credit on a scale that ranges from AA to HR (High Risk)
Lenders bid on loans by stating what rate of interest they’ll accept
Prosper combines the money from all the successful bidders to fund the loan
Borrowers have the money automatically withdrawn from their bank account every month
Lenders have the money deposited into their bank account every month

Prosper takes care of all billing and collections if necessary. All you have to do is diversify your portfolio to minimize your risk..

In addition, you can earn a great rate of return. I’m watching a loan now for someone with AA credit. It’s almost completely funded and the lenders are getting 18% interest!

If you’re interested in learning more about investing with Prosper.Com, you can read more about how to manage your risk on Prosper.

Popularity: 45% [?]

How To Fail At Any Passive Income Venture

April 15, 2008 By: Randy Category: Passive Income 3 Comments →

If establishing passive income streams is so easy, why doesn’t everyone do it? Why isn’t everyone lazing on a beach somewhere why money pours automatically into their bank accounts?

It’s because establishing profitable passive income streams is hard. There’s a lot of work involved in getting a passive income stream to the “effortless” stage. For those of you who think that developing passive streams of income is your path to wealth, here are 7 surefire ways to fail at any passive income venture.

Way #1: Believe All The Hype You Read On The Web

Believe all those sites that talk about how they made $19,745.34 in 5 days. After all, what reason do they have to lie? It’s not like they’re trying to sell you something, right? Can it happen? Sure it can! I bet everyone that pays $79.99 and reads all those free reports wakes up on the fifth day to find almost twenty grand in their bank accounts.

The problem with believing all the marketing fluff out there is that it sets you up to fail. You’ll sign up thinking that all you have to do is wait for the money to pour in. Pretty soon you’ll realize that: no effort = no money, and you’ll quit.

Way #2: Don’t Do Any Research

Just jump into the first opportunity that gets you all pumped up. Don’t bother doing any research on the company or its officers. After all, the company’s CEO Tony the Snake seems like a nice enough guy. Don’t worry about researching the competition either. Who cares about supply and demand anyway?

You need to know what the demand is for any product or service you’re trying to set up. You also need to be aware of your potential competitors. High competition and low demand is a recipe for disaster. In addition, make sure you’re aligned with a reputable company and support team.

Way #3: Don’t Make A Business Plan

Oh, I’ve got a business plan. I plan to make a lot of money while doing as little as possible! I don’t need to write down all the details. I’ll just work out the little things as they come along.

If you want to start a business, treat it like one. Would you open a store without a business plan? Then don’t start a vending route or affiliate marketing campaign without making a comprehensive business plan. What are your goals? What is your niche? What is your marketing plan? You have to know these things before you get started or you’ll waste a lot of money figuring it out.

Way #4: Spend No Money Whatsoever

You’re in this venture to make money not spend it, right? Why would you want to waste your money on things like equipment, advertising, websites, or product? Besides, according to the website I joined, all I have to do is pay my $79.99 and then collect $19,745.34 in 5 days.

It’s trite but true: It takes money to make money. Passive income ventures tend to be black holes that eat up all of your free time and money for the first 6 month to a year of their existence. If you’re not prepared to make that kind of commitment, it’s best not to start.

Way #5: Don’t Put Any Time Or Effort Into Your Business

It’s called passive income because it doesn’t require any effort. If I wanted to work, I’d be happy with my day job. Besides, that guy who sold me the program said he spends all his time on the beach and still makes over $400,000 a year!

Passive income streams require little effort once they get started. They require a MASSIVE amount of effort to get started. Think of it as priming the pump. You need to put time and money in if you want to get time and money out.

Way #6: Get Into Something You’re Not Passionate About

I think that the problem with society is that people are prone to impulse buying and are far too overweight. The smell of candy repulses me too… Hey! Look at this business opportunity! It looks like I can make tons of money with bulk candy vending machines!

If you don’t believe in what you’re doing, you won’t be doing it for long. Make sure you passive income business jives with your belief system.

Way #7: Quit

You want a surefire way to fail at a passive income venture? Quit. I’d be willing to bet that most people don’t fail at affiliate marketing, real estate investing, bulk candy vending, or mlms. I bet they quit.

There’re a lot of people out there spewing out a lot of hype. Many people try to set up passive income streams with unreasonable expectations. These people think that it should be easy to set up profitable and automatic streams of income. It’s not.

It’s hard setting up streams of passive income because you have to be able to handle months of putting your heart and soul (not to mention money) into your business without seeing any results. Not many people can handle that. But for those who can, there’s definitely money to be made in developing passive streams of income.

Popularity: 28% [?]

What Forex Taught Me About Wealth Building

April 12, 2008 By: Randy Category: Invest Money, Passive Income, Self Development No Comments →

When I first started trading Forex, I took on a very aggressive strategy. I leveraged myself highly so I could exploit relatively short intraday moves. My Forex strategy didn’t work very well for me at first and I lost about a third of my investment in one day.

After the New York market closed I decided to revisit my trades and evaluate why I opened each position and why I placed my stops and take profit orders where I did. I noticed that in almost every instance my analysis was correct and the price of the Forex pair I was trading DID go in the direction I thought it would; but only AFTER I’d been stopped out. I was setting my stops to tight.

The fear of losing money was causing me to lose money.

This realization sparked an epiphany. Like some movie, little snippets of things I’ve read came rushing into my mind:

“Starting passive income streams is a lot of work.”

“97% or MLMers fail.”

“Most Forex traders lose money.”

“95% of affiliate marketers fail.”

Then it hit me. No one fails at trading or developing passive income streams. No one fails in their attempts to build an MLM business or become an affiliate marketer. All these people just quit. They don’t put in the necessary money and effort to make their business a success and then quit when money doesn’t appear from thin air.

It’s unfortunate that many passive income businesses are billed as an easy way to get rich. It encourages people who don’t really want to work to get into these businesses. The truth is that it takes a TON of work to develop passive income streams. Its thankless work too and there’s very little benefit in the beginning.

Passive income businesses require that you “prime the pump.” You have to be willing to put in hours of effort for what can sometimes be months without seeing any meaningful return. You also need the intestinal fortitude to toss your money into a money pit that just keeps taking and taking without giving much back. Most people can’t do this. They assume that their business isn’t working and they close the doors.

But for those elite few who have the tenacity to stick it out, they’ll find that one day their ravenous monster of a business won’t eat any more money and doesn’t want the attention that it once demanded. It’ll burp up a few dollars at first, then start spewing money. At this point, your passive income business becomes truly passive. Once your business reaches this stage it only requires a little time and money to maintain it. But most people never build their business to this point. Most will quit long before their business is profitable.

As you begin to build your streams of passive income, you’re bound hit a few hiccups. My little Forex faux paus taught me not to fear losing money. It also taught me not to give up when I do lose money. Failure, loss; they’re inherent in all new ventures. You can choose to accept your loses as a cost of doing business and learn from your mistakes, or you can pick up your ball and go home. The choice is yours, but only one option will make you wealthy. Choose wisely.