Active income is income you earn through working, through spending your time. So if you work for a day, you get paid for a day. You work for an hour; you get paid for an hour. You work for a month; you get paid for a month.
Now, you can never be wealthy through active income. The reason is very simple because there's always a limited amount of time you have.
Even if you are a lawyer and you are a very good lawyer and you charge, let's say hundred bucks an hour. But still, how many hours do you have in a day? You have a limited amount of time so you can never be wealthy through active income.
Having active income also means one thing. At the moment you stop working, your money stops so again, there's no leverage, there's no scalability. So in other words, you literally sell your time for money.
So, what makes a person earn more than another person?
For example, why a doctor earns so much more than a receptionist. Why? Why does one insurance agent make 20K a month whereas one insurance agent makes 2K a month? Why?
Some people say it's because of education, experience, age. No, it's not all those things. The one thing that matters is value. Its how much value you create.
Why does a doctor earn so much more than a receptionist? That's because a doctor can create so much more value. A doctor can save your life. A doctor can make you feel well. But a receptionist can only, take down notes, make coffee for you, and only do certain things of lesser value.
One insurance agent adds so much more value by being a problem solver to someone's life. The other insurance agent can only tell you what to buy. That's why they create more value.
So focus on things which create more value. If you think about it, there are only two ways to create value for your company. Number 1 is to increase sales, number 2 is to help the company to reduce costs.
By doing that, the company will make more profits. Ask yourself this question. What will make your boss want to double your salary? Not out of the kindness of his heart. But the only way to double your salary is for you to double your value to the company. Simple as that. So increase value, increase time.
How much income you earn is a reflection of how much value you create for people. So if you want to increase your income, you must increase your value, and it can mean the value you create for your clients, or how much you are worth to the business that employs you.
Let's say you have most of your ads with Google AdSense. Say that it makes up 90% of your website's income. Heaven forbid if Google should ever cancel your account! You would lose 90% of your website income, then what would you do? Would you be able to recover immediately? Most people would not. I had a friend recently get his Google AdSense account revoked for reasons unknown to him. They said that he was generating false clicks (which he wasn't) and that's all the information they would give him. Luckily he was able to appeal the decision and get his account reinstated, but not everyone is that lucky!
So if you have a website, diversify your earnings by not only using Pay Per Click sponsors, but perhaps use a Direct Leads sponsor, a "cost per action" sponsor, or even promote other products or services and get paid a commission per sale.
It's always best to watch the performance of your website. Make sure that you are checking your stats to see which banners and ads are performing the best and swap out the ones that aren't functioning as well. It's also a good idea to rotate your banners every few months anyway to get "fresh blood" on your site. Your surfers will become "banner blind" after awhile and will learn to overlook all of your ads and banners.
Diversifying your income also includes opening other websites. Currently I have several websites that I get income from. About 4 months ago, Google banned one of my websites from their search engine! This is a common thing to happen amongst Internet Marketers. Apparently my site had too many outgoing links to sponsor ads and they considered it a "link farm". However that site at the time was earning me approximately $1000/month. If I didn't have all of my other sites to pick up the slack, can you imagine the disaster that would have been?
Another way to diversify your websites are to have some of them on different servers. Hosting is dirt cheap these days. If you can throw one or two of them up on a $5.99 a month server and pay for a year's worth of hosting, you're doing the right thing. Not only does it have search engine benefits, but if one of your servers should go down, not all of your sites are down at once.
So remember to diversify your income and you'll be glad when you're having a slow sales month on one of your affiliate programs, all of the other ones may just pick up the slack!
Both Adam Khoo & Jennifer Clason are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Adam Khoo has sinced written about articles on various topics from Recreation and Sports, Web Development and Computers and The Internet. Adam Khoo is an entrepreneur, best-selling author and a self-made millionaire by the age of 26. Discover his million dollar secrets and claim your FREE bonus CD '6 Ways To Achieve Anything In Life' at. Adam Khoo's top article generates over 90500 views. to your Favourites.
Jennifer Clason has sinced written about articles on various topics from How to Sell on Ebay, Adsense and Personal Finance. Jennifer Clason is the site owner and operator of. She has been running a full-time home-based Internet business for 7+ years now and owns more than. Jennifer Clason's top article generates over 1300 views. to your Favourites.