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Thread: Passive income?

  1. #1
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    Default Passive income?

    I read Rich Dad, Poor Dad a few years ago, and reccently picked it up again. It has me thinking about my financial situation. As a dancer, if I don't work, it don't make money. I plan to keep dancing as long as it is profitable and enjoyable for me, but I want to start looking into other investments.

    Who has other sources of income, beside dancing or a "day job?"

    What is the source of that income? Pay sites, online stores, part or full ownership of a business that doesn't require you to be there, investment property...

    is there anyone else trying to build up their asset column in this way?

    Personally, I have some stocks that produce some dividends, but they are nowhere near my living expenses.

  2. #2
    Banned Melonie's Avatar
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    Default Re: Passive income?

    ^^^ prior to the enacting of the Section 2257 law and the terrorist anti-money laundering law, I operated an adult pay website and webcam ... which provided ACTIVE income to supplement my earnings from dancing. However, since both of those changes in law were enacted, the financial and legal consequences to operators of independent internet based adult businesses has been major. As a result, today it's necessary to essentially turn 50% of your gross internet earnings over to a 'proxy' adult web host to avoid having to directly deal with the consequences of these new laws.

    I figured that, had I continued my adult internet businesses under the 'umbrella' of a 'proxy' web host to front the Section 2257 webcam requirements and handle the adult business online credit card processing, for every $1000 in gross receipts about $300 would be kept by the web host in processing / hosting fees, leaving me $700 in gross income. From that $700, another $300 would then have to be paid out in income tax and self-employment tax, leaving me with only $400 in net income for $1000 worth of effort.

    Paying out 60% of your gross internet earnings in 'hosting fees' and taxes, when combined with the high levels of 'competition' that now have to be dealt with, convinced me that there really wasn't enough earnings potential left in adult internet based businesses to be worth the ongoing time requirement. So after I closed down my website and webcam, I reallocated the time that I had been spending on those activities and applied it to researching investments instead. While admittedly I have been VERY LUCKY in this regard, over the course of the past 3-4 years I have managed to more than double my original stock and commodity investment values. This now provides me with more PASSIVE investment income than I could have ever received in ACTIVE income from continued operation of my adult internet businesses.

    Plus my tax picture is now much better as well, since there is no self-employment tax to be paid on investment income and a good portion of my investment income qualifies for a 15% tax rate as long term capital gains.

    I guess that the passage of the Section 2257 law and the terrorist anti-money laundering law actually served as an 'epiphany' regarding the relative virtues of the various options available to earn money. My personal take on the situation was that ACTIVELY working was a path to making someone else rich, whereas PASSIVE earning via investments was a path to make oneself rich. When those in 'power' basically rig the tax rules to penalize those 'middle class' people who are actively working their butts off, while rewarding those people like themselves who derive the majority of their income from passive investments, I found it much easier to switch than fight !

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    Default Re: Passive income?

    Melonie, what materials have you been using for your research about investments? Have you taken classes?

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    Featured Member saphire123456's Avatar
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    Default Re: Passive income?

    i have a couple of investment properies -its pretty passive, then the usual ira's mutual finds crap, and then i own 10% of 2 franchise locations

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    Banned Melonie's Avatar
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    Default Re: Passive income?

    Melonie, what materials have you been using for your research about investments?
    mainly, inebriated bankers and brokers in manhattan VIP rooms !

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    Veteran Member StuartL's Avatar
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    Default Re: Passive income?

    If you are creative, there are many many ways to earn an income.

    An example ... by pure dumb luck, I started writing for a newspaper last year. I do one column per month, that's all. About personal finance. I know the topic well and need to do very little research for my writing which means that I can put together an article for which the paper pays roughly 200 euros in about 3 or 4 hours.

    This is not passive, I admit. But 50/60 euro per hour is certainly better than a part time job in a bar or whatever.

    If you can write, you can earn online. It is as simple as that. Online, content is king. And the content that the search engines and many surfers want is written. You just need to decide if you want the site to be yours or someone elses.

    As you can see below in my sig file, I have a number of sites I am building. So far, my traffic is still low and there isn't much to monetise. But i keep on trucking. Sooner or later, I'll have several passive incomes that just won't quit.

    With Google Adsense and other competitors now coming into the market, if you can write well, build a basic website (or outsource it) and get some links and traffic, you can display advertising and earn via pay per click.

    These things have other advantages too. Since I have sites up, friends and connections now come to me asking for advice about this. I am building another site for a friend, nothing complex, it pays a little bit, and am hoping to be involved in a number of other big projects.

    To conclude, if a dumb-ass like me can do this, so can pretty much anyone else - I'm certain of it.

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    Default Re: Passive income?

    Unless you're paying someone else to do the work, almost any income you can get will NOT be passive. Really the only passive income out there is through investments like stocks, bonds, mutual funds - and I question just how passive that is, since you have to spend time learning how to invest and keep up on the markets in order to make any money at it. Anything else will require some kind of work (or paying someone else to work) also.

    I have my online store, and while I do nothing more than check email and my store admin to find orders and money in my account, there's still work involved. I have to track orders, make sure they're shipped, answer customer messages, facilitate returns/exchanges, maintain the website, add and remove product when necessary, promote, deal with backorders, etc, and this only accounts for daily maintenance, not growing the business. Plus I had to spend alot of time up front learning and building. There's nothing passive about it.

    I really think the best way to make money is to find what you're good at, what you can do for HOURS on end, days at a time without getting bored, and figure out how to make money at it. Easier said than done, sure. But worth it IMO. Something to keep in mind is the answer doesn't have to be "conventional". If you're naturally a good socializer and love being out and around lots of people, maybe something like club promotions is the ticket. I've heard of some promoters who made ridiculous money just for getting alot of people to show up at clubs and pay the cover.

    Quote Originally Posted by pheno View Post
    When you lead a nontraditional life don't try to measure it with traditional milestones.

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    Banned Katrine's Avatar
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    Default Re: Passive income?

    Investment advisors receive sort of a passive income called commission trails. They aren't much at first, but can easily turn into 40-50K a year every year of income based on previous deals, with no current work. It takes about 5 years for it to become significant.

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  9. #9
    AlexxaHex
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    Default Re: Passive income?

    I also had an adult paysite and webcam like Melonie...and I had to shut it down. It just wasn't worth all the work I had to put into it because of that damn 2257 thing. I remember when it passed, and so many Dommes were freaking out about it. It really put a huge damper on the independent businesses like ours.

    I'd have to say that the only income I earn now that is even remotely "passive" is creating recorded phone sex (domination) listings and charge a per minute rate. I do have to write them out, record them and then advertise, but I keep making money on the same recordings for years. I literally wake up, turn the computer on and see that I have a bunch of extra money as a result of people calling them. It's a similar feeling to when I got my website membership checks.

    I also would like to start investing in stocks eventually. I probably wouldn't want to do it if it became a full time job though. I thought that was the kind of thing where you put your money somewhere and it just grew?

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