What do the terms residual income and passive income imply?
The use of the word, passive does not mean that you will have to do entirely nothing to earn regular income. Rather it means that the amount of resources you spend on an activity is very little in comparison to the revenue it generates. For example, after posting an interesting/controversial/informative article, you might continue to receive visitors on your blog for more than a year. Remember, some topics provide more passive incomes than others. For example a fashion blog will be able to generate less passive income because of the rapid changes in styles. A fashion blogger will have to continuously have to update his/her blog to keep readers abreast with the latest developments in the world of style. On the other hand, blogs and websites on relatively stable subjects such as education, health and relationships are more likely to generate more passive income because of their evergreen nature. There are many issues that people discuss again and again and information related to which remains the same. Hence, readers may continue to come on a certain blogpost related to for years.
On the other hand, the term residual income refers to the fact that AdSense is not your primary source of income. In fact, it is a fraction of the income you derive from your online activities. For example, a blog that discusses nail art and simultaneously sells nail art supplies to its readers is likely to make AdSense display advertisements related to the subject. Hence, the blogger will have to streams of income – one from the income of the nail art supplies and the other from AdSense. Since, revenue generated from AdSense will only be a fraction of the revenue from the sale of the nail art it has been termed residual income.
How to Use AdSense in an Effective Way. Let’s look at the Holistic Approach
If you are planning to use AdSense as one of the sources of income, there are a few tips you could use to make your endeavors more effective.
1. Number of Websites/Blogs and their Genres
There are two extreme ways of earning with GoogleAds. Earn $100 with 1 blog or earn $20 from 5 blogs each. When it comes to choosing between the two, we recall the old adage; don’t put all your eggs in one basket. Yes, diversification is the key to success when it comes to earning residual income through AdSense.
Following are some of the benefits of diversification.
a. Having more than one blog/website will allow you to cover a wider range of topics. If you decide to run three blogs at a time, you may cover very distant genres of entrees such as health, fashion and travel. This will help you cover three unique sets of consumer markets, news items and products.
b. Some genres are better more effective at generating passive income than others. As discussed above, it is a great idea to invest resources in at least one website/blog that is sure to generate a small but steady stream of visitors and thus passive revenue. The other blogs/websites may be on topics that require regular updates.
2. Attraction Marketing to Increase your Website Traffic and build your list!
Attactraction marketing is a technique that’s used not only by those who sell products but also who help those who sell products. This is true for blogs/websites that provide visitors with information or free online services. A few examples of such websites that cater free email services, provide news updates and make downloadable content available for free.
Regardless of the revenue from GoogleAds being residual or not, it is imperative that you increase the traffic to your websites and blogs. The more people will visit your blog/website, the higher the number of clicks will be on GoogleAds (even if the percentage remains the same).
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