Passive Income Experiments Update [June ’10]
Well, 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…
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: Bankrate.com (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.
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!
If you enjoyed this article, you might also be interested in my muse creation newsletter (it’s free!). Also (if you haven’t already), subscribe to the RSS feed so that you don’t miss any future updates. Thanks so much!