Passive Income Experiments Update [June ’10]

moneyWell, I lied when I said I wouldn’t be writing a passive income update until the end of July.  I decided that even though I don’t have meaningful results yet for my recently-started InfoBarrel Earnings Challenge, you might still be interested in reading about how my other projects are doing.

In case you didn’t get a chance to read it, I started publishing the results of my passive income experiments last month.  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 dig into how everything went in June…

Lending Club

[Read my original write-up here]

After discussing last month about how one of my Lending Club loan investments defaulted, I had a really nice bounce-back month in June.  Currently, I’m invested in 53 loans (up from 47 last month) and my net annualized return (i.e. “interest rate”) is a robust 8.00% (up from 7.50% as reported last month).  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.

Source: (7/7/10)

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 of course 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:

It looks like I’m finally doing a bit better than investors who have a similar portfolio to mine (8.00% vs 7.94% shown in the first image above).  Compared to ALL investors, however, I’m still doing a bit worse (8.00% vs. 9.64% in the third image), and my rate is worse than 74% of all investors.  Overall, I’ve seen improvement over last month, and there’s reason to believe this rate may still increase.

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).  With that money, you can test out investing in a loan (since you can invest in increments as small as $25).



After giving it much thought, I’ve decided to put my autoblogging project on hold.  Across my 16 autoblogs, I still haven’t seen the traffic and earnings that I would like.  Each autoblog receives a few organic visitors per day, and my overall earnings have been around $.50-$1.00 per day.

Another reason I’ve decided to pause this project is because I don’t want to do anything that could jeopardize my Google AdSense account.  Because my massive “InfoBarrel Earnings Challenge” (which you can read more about below) will rely heavily on AdSense earnings, it’s important to me that I focus my effort toward that endeavor.  There have not been any reports of this software causing an problem with AdSense, but I still prefer to make a conservative decision at this time.

Although I’m putting this project on hold, I still think these autoblogs will provide value for me in the future.  One thing I plan to do is replace my AdSense ads with Amazon affiliate ads.  I think this could be another viable way to monetize these blogs.  In addition, as these blogs begin to age and increase in depth (due to the continuous blog posts that are posted automatically), I’ll be able to use these blogs to provide backlinks for my Info Barrel articles and other niche websites.  While they don’t carry much weight right now, they still represent a network of 16 websites that could possibly give my other sites and articles a boost in search engine ranking.

I’ll be sure to update everyone as I take further action with these autoblogs.  If you are interested in using autoblogs for either income purposes or to build a network of blogs to use for backlinking purposes (again, I don’t know yet how effective this will be), you can read more about the software here.

Affiliate Income

While I’m not at the point yet where I think I can begin sharing niche websites that I’ve worked on, I decided I will start sharing information about my affiliate earnings that I’ve earned from such sites.  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.

Affiliate Earnings for June: $222.52

As you can see, this isn’t a lot of money, however I expect it to continue growing in the future.  Right now, I’m not going to break down the sources of these earnings (because they’re so small), but in the future I plan to.

Info Barrel Earnings

If you’ve been reading my blog lately, you know I recently started an Info Barrel Earnings Challenge, where I came up with a plan to make $2,000 per month by writing articles online for Info Barrel.  Technically, this challenge began in July, so there really is nothing to update in my June passive income experiments report.

So far, I’m on pace with this challenge.  After six days, I’ve written 18 articles, which is right at my targeted “3 articles per day” pace.  It’s going to be tough to continue this pace during July, because I’ll be on vacation all of next week (probably without internet access!).

In future updates, I will continue sharing the number of articles I’ve written, along with my earnings from those articles.  If you haven’t checked out Info Barrel yet and you’re interested in making money from writing articles, you should really check it out.

Until next month, best of luck to you and your passive income experiments!

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22 Responses to “Passive Income Experiments Update [June ’10]”

  1. Thanks, I will enjoy reading these updates to see how this is working for you.


    Eric G. Reply:

    Thanks for the comment! Hopefully each month, I’ll have better results to share. :)


  2. As long as you still have your job you can use this to invest in gaining more financial independence., for instance by investing it in Lending Club which seems to be working for you quite well.

    I’m very interested in how Info Barrels work out for you. I’ve been doing a bit with Squidoo but there’s a need for constant adding/changing of pages to make it work properly. So seeing how something similar works is interesting.


    Eric G. Reply:

    Hey René! Yeah, I tried Squidoo and just couldn’t handle the way lens rank worked, and the fact that you needed to constantly update your lenses to keep their rank high. Info Barrel, although the site design is less appealing, is a LOT better than Squidoo in my opinion. Better income potential, more articles to write about (since less titles are taken right now), and the community is great. The forum always has a lot of great discussion, and everyone there generally wants to help you succeed if they can.


  3. Great information Eric, thank’s for putting it out there. Good luck with the Info Barrel project; I was tempted to take up the challenge with you but decided that I already have too many oars in the water and would have to cut something back first.


    Eric G. Reply:

    Thanks Tyler, I appreciate it! Yeah, although my plan is to only write for 90 minutes a day, I’m finding that it is a relatively large commitment to keep up with this pace.


  4. Hey Nice post! I have been writing for ehow and bukisa in the past, I did alright with it, how is the return with infobarrel like?


    Eric G. Reply:

    Hey Baker, thanks! I’m not sure what the return with Info Barrel will be like. Others have had success with it, but it’s still too soon for me to know. Stay tuned and I’ll be sure to share updates periodically!


    Baker Reply:

    Okay great! Looking forward to hearing your results. I am actually writing also for associated content it is pretty decent so far…It is also another good passive long term income stream that I’ve toyed with for over a year.


    Eric G. Reply:

    Thanks for the comment, Baker. I’ve heard Associated Content is decent (along with the other major article sites). I think whatever your choice may be for writing online (mine happens to be with InfoBarrel), you should stick with it until you have reason to believe that it really isn’t worthwhile.

  5. Dude, I’m excited to see how your infobarrel experiment goes! My eHow experiment went very well for me, and I’d love to bring that same energy to infobarrel – all I need is some time. 3 articles a day is perfect, I found that 5 a day was a bit much for me when I did that a year ago.

    Great report – thanks Eric! All the best!


    Eric G. Reply:

    Thanks Pat, I appreciate the comment! Big fan of yours (who isn’t?). I’ve always admired the results of your eHow experiment. 5 a day? Wow, that must have been intense. 3 a day has been tougher than I expected.

    Thanks for stopping by!


    Pat Reply:

    Yeah, 5 a day was intense, but it got easier as time went by. It was well worth it, and if you’re going to do something, you might as well go all out on it, right?

    Keep at it, I’d love to see you get to $2k!


  6. The last few articles I put on Infobarrel have almost no views. Someone on another blog made an off-hand comment that things at Infobarrel were down, I’m wondering if Google is reassessing them much like happen with Hubpages.

    I wonder how your articles are doing?


    Howie Reply:

    What blog, Carrie?

    Bear in mind, it is a PR4 (although massively growing), website currently.

    What did they mean by “things were down”? Earnings were “down”? Did they mean the website generally wasn’t working?

    I haven’t had any problems with traffic to my articles that are highly SEO optimized….


  7. You guys are gonna BOTH be tremendous assets to Info Barrel. ….once Info Barrel qualifies for an Adsense Premium Account, you’ll find that writer’s earnings will go up significantly….


  8. Howie,

    I’m not sure what they meant exactly, I should have asked. I just know I’m not seeing much traffic and I have never earned as much there as at eHow. But I am still hopeful that things will grow.


    Howie Reply:


    Your difficulty in gaining traffic, and earning, on your Info Barrel articles is one that many people share….but, with good reason.

    Info Barrel does have (currently) significantly less search engine authority than a more established website like, say, eHow. For the time being, Info Barrel is essentially forcing people to rely heavily on their SEO skills, for right now…..something that few had to do on eHow because they could essentially catapult their own articles off the inherent search engine authority of the site.

    This meant that garbage articles could be published there, yet, Google would find them and rank them high, because the collective userbase built eHow from the ground up. (This is what is occuring with Info Barrel now)

    I would encourage you to read through this thread that I began:

    There is good reason to be VERY excited about the generous revenue share and transparent operations of Info Barrel.


  9. Unsurprised to see the results of the “Autoblogging” experiment. It can be useful, but realistically for producing websites that stand up on their own, it’s terrible.

    Well done for ditching it :)


    Eric G. Reply:

    Thanks Rhys, I can imagine some people were pretty pessimistic about my chance for success with it. I’m still determined to find a use for the autoblogging software, however, and when I do, I’ll be sure to talk about it!


  10. After losing hope from hubpages, now I’m planning to try infobarrel seriously. I will love to learn from you guys!

    Please tell me about RitePad also. Is it a good website for backlinks and making money?


    Eric G. Reply:

    I definitely recommend InfoBarrel. I’m not sure about RitePad – never used it before.


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