My Blog and Passive Income Experiments Update [July ’10]
In case you haven’t been following this blog for long, I started publishing the results of my passive income experiments a few months ago. I originally focused on only my passive income income status, but I’m going to broaden the scope of these monthly updates to include really anything related to this blog.
While I’m certainly not making enough money to quit my day job, I think people generally enjoy reading about others’ success and failure, so I’ve decided to share this information.
Let’s see what happened in July…
In June, I began seeing an upward trend in my annual interest rate, and that trend continued into July. Currently, I’m invested in 58 loans (+5 from June) and my net annualized return (i.e. “interest rate”) is a robust 8.14% (+0.14% from June). Let’s see how this stacks up against CDs (certificate of deposit investments). Due to the 3-year term of Lending Club notes, I think it makes most sense to compare Lending Club loans to CDs. There may be a better comparison in terms of risk (like a corporation’s bond), but I’d rather compare it to something the average person is more familiar with. I’m open to suggestions for a more appropriate comparison.
Source: Bankrate.com (8/4/10)
As expected, my current interest rate at Lending Club is significantly higher than that of any CD investments. It’s important to keep in mind that Lending Club loans are certainly more risky than these CDs, which have virtually no risk. However, I strongly believe that the additional risk is more than compensated for by the significantly higher rate of return. Here are some other images from my Lending Club account summary that show my performance compared to other Lending Club investors:
I’m currently performing slightly better than investors who have a similar portfolio to mine (8.14% vs 8.07% shown in the first image above). Compared to ALL investors, however, I’m still doing a bit worse (8.14% vs. 9.64% in the third image), and my rate is worse than 74% of all investors. The 9.64% number is probably inflated, due to the likelihood that Lending Club is more heavily weighted by newer investors who haven’t experienced a “bad loan” yet. I’ve been investing with Lending Club for almost 2 years now, and aside from one bad loan, the experience has been great. I still think I can get my average annual return even higher.
If you’re interested in trying Lending Club, you can still sign up with this link and get a free $25 just for opening the account (no deposit needed, but you must use that link in order to get the $25). With that money, you can test out investing in a loan (since you can invest in increments as small as $25). I’ve gotten questions about whether Lending Club allows non-US investors – at this time, they do not.
Last month, I began sharing information about my affiliate earnings that I receive from a few different “niche sites.” Because these earnings are relatively minor, I don’t think it’s necessary for me to go into further detail about where each dollar comes from. In case you’re unfamiliar, affiliates are basically people who sell products on behalf of other people or companies in exchange for a commission. Becoming an affiliate is one quick way to get in on the “make money online” game, although it can be a lot of hard work to earn anything substantial.
During July, I paid very little attention to my niche sites. In other words, I didn’t build any new sites, improve any existing sites, or work on further optimizing the sites for search engines. As you might expect, my earnings were very consistent with last month.
Affiliate Earnings for July: $220.33 (-$2.19 from June)
Info Barrel Earnings Challenge
It’s a long journey to reach my goal of earning $2,000 per month by writing articles for Info Barrel, however I think I’m on the right track. If you read my original challenge post, you’ll recall that my plan is to write 3 articles per day. I’m going to make one slight change to the challenge: the start date. It was stupid of me to start the challenge right before I left on a week-long vacation, because this would immediately put me way off my pace of 3 articles per day. Therefore, I’ve changed the “start date” to July 18th – the day after I returned from my vacation.
So far, I’m working at a good pace. In the 13 days of the challenge in July, I wrote 40 articles, bringing my current pace to 3.08 articles per day. My earnings will definitely take time to grow, because it takes time for Google to index the articles and time for the articles to age and move their way up the list of search engine rankings. For July, here are my Google Adsense statistics for Info Barrel (I covered up some non-important numbers, because I believe Google doesn’t allow you make these statistics public):
[Click image to enlarge]
I’m really pleased with these results, given the low number of articles I had and the short amount of time the articles have been published. If you’re interested in taking this challenge along with me or just want to casually write articles for money, you can sign up here.
Upcoming Free eBook
A little over a week ago, I wrote about a free eBook that I’m planning to write about and I asked for your opinion regarding which eBook you’d like to see. An overwhelming percentage of people (81%) preferred that I write the eBook: “My First Online Muse: The Road to Passive Income.” I haven’t started on it yet, but I just wanted to let you know that this will indeed be the eBook I plan to write. I think it’s going to offer a lot of great insight to muse newbies (“Mubies?” Nevermind, I don’t like how that sounds.) as well as experienced entrepreneurs, looking to create a stream of passive income online.
I don’t have an ETA on the eBook yet, but those who are subscribed to my newsletter will be the first to know about it once it’s complete.
Until next month, best of luck to you and your passive income experiments!
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