How to make money online

It’s very alluring – the opportunity to make loads of passive income, working from home running an online business that works for you 24 x 7.

Internationally respected business thought leader and entrepreneur, Seth Godin just published an excellent list of 21 points about How to make money online.

It is an essential read for anyone caught up in the wonder of the money made by the handful of people who did make money online.

I recommend that budding entrepreneurs also subscribe to Seth’s blog and regularly read more of his thought leading ideas.

The Truth (And Myth) About Passive Income

Do you salivate at the thought of passive income and long to start your own business?

Nacie Carson, founder of The Life Uncommon, a career transition and entrepreneurship community has written an insightful article examining the truth and myths of passive income. Carson draws on her own experience to highlight common delusions as well as frame some realities.

The first time I read through their information, I interpreted their material as “passive income is easy and effortless, all you have to do is set it and forget it.” When I revisited their material, I understood that their actual message is “passive income is a great revenue source that is earned from persistent, ongoing cultivation.”

The context of Carson’s article is online entrepreneurship however I think her observations are relevant to the pursuit of easy money and passive income in traditional investing.

You don’t just get rivers of golden passive income for life just by buying any old property or share, or starting a business. Wealth accumulation takes “persistent, ongoing cultivation”.

Other nuggets from Carson include:

So what’s the truth about passive income – is there such a thing, or is passive income a myth that marketers tell to line their own pockets?

From my own experience, I say there is such a thing, but it’s a nuanced thing.

…[my] passive income triumphs required a significant up-front investment of time, effort, and tinkering on my part, and in many ways I see them more as delayed payment or ongoing dividends.

[I] would tell any fledging entrepreneur that the simple truth of passive income is this: passive doesn’t mean effortless.

Carson’s comments echo comments I frequently make about the Do It Yourself approach to wealth creation. It takes a significant up-front investment of your time and energy to first acquire the expertise you need.

Then it takes additional time and effort to apply the expertise before you earn a decent return on investment for your money.

You then have to consistently apply that expertise to get a return for the up-front time and energy you invested.

 

50 entrepreneurial ideas

Thought leader Seth Godin has written some terrific stuff recently about having ideas, bringing them to fruition and making money from them.

One of Seth Godin’s colleagues on The Domino Project has just published a nifty free e-book collating 50 anecdotes of people who’ve had an idea and are now turning it in a business.

If you dream up lots of ideas but are nervous of the risk of trying them out then I recommend you read the anecdotes.

Read more and download “SXSW Pokes” here.

 

 

Raise kids to be entrepreneurs

The wealthiest people in the world are entrepreneurs – not passive investors in residential property (the backyard BBQ favourite.)

In my experience of working with people many want to start their own business. But their traditional education and employee experience often has not given them the toolkit to succeed.

In the video below Cameron Herold argues that we need to be teaching kids how to be entrepreneurs. Herold has been an entrepreneur since childhood and for the past 20 years has been coaching other entrepreneurs.

The presentation was recorded at TEDxEdmonton in March 2010. TED is an organisation devoted to “Ideas Worth Spreading” and includes many wonderful presentations of ideas that inspire you to learn more and take action.

In his presentation to TEDxEdmonton Herold shares some of the lessons he learned from his childhood jobs and business ventures that are important entrepreneurial skills. He also summarises some key entrepreneurial traits to teach our kids. Both will spark ideas in you that you can being to implement at home with your children of any age.

One idea that may challenge you is Herold’s attitude to paying children an allowance, or pocket money as we say in Australia. Watch below and find out his suggested alternative.