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How to Set Up a Home Based Passive Income Business

The home based passive income model is based on the premise that you can set up a home business whereby you work less and earn a comfortable living with minimum involvement to achieve the much sought after financial freedom.

Traditional business models of home based passive income that you might be familiar with are network marketing or the rent you earn from a property, adsense safe web traffic but these types often do not yield much. If you intend to earn really big in a passive way, you got to think outside of the box.

To put things in perspective, it is estimated that about half a trillion dollars is generated each year by home based businesses. That’s bigger than General Motors, Ford, and Chrysler combined! There are numerous stories in the media about people in home businesses raking in more than the CEO’s of some Fortune 500 companies. The current economic environment makes sure that the trend will keep on growing. Therefore, the big question is how do you get started?

There are three steps to get going into this business:
1. Make sure that you have positive cash flow (are spending less than your earnings)
2. Figure out the sources that would put you on the profit side
3. Devote sufficient time to the above sources

The right way to start is to remember that “Business from internet” or E-business, has guided thousands of individuals like you to an alternative source of living. It is far way from the traditional day work that you had been doing for so long. The best thing about internet business is that you do not have to have a lot of upfront money to start or run one. You can start this business at an incredibly low cost, and yet expect big rewards. Given the current economy and the long term uncertainty that has been created, you can expect the e-business is here to stay and millions across the globe have already stepped into it.

First and foremost you need to have a website to start with. Then comes a well thought out, smart marketing plan otherwise, it would resemble a store that no one knows about. So, the real catch is in making your site popular.

So, you have to know about the techniques that make it so. Remember, you can do that; your site can be your own money minting machinery in just 6 months, or less.

Here are some of the ways to make it so:

1. Write good articles

Yes, content is the king. It’s the content of your website that would draw in traffic. Make your articles be original, informative and rich with keywords. Post your articles in various blogs, popular directories and ezines and get those linked to your site. This way, search engines will find it and place it in favorable positions, hopefully on front page on Google.

2. Pay per Click (PPC)

Google Ad Words, Yahoo Search Marketing and Microsoft AdCenter are some of the popular Pay per Click schemes. This is another way through which you can get traffic. In this method, you got to pay in advance and your pre- paid balance is debited every time your ad is clicked. Your advertisements also appear in the Google, Yahoo and MSN search engine listings. In addition, sponsored results appear over natural search results.

3. Targeted traffic

There are sites that offer visitor packages for fixed prices. Choose the one that fits in your bill and get the traffic diverted to your site according to your necessity. You can choose from a package of 1000 guaranteed visitors per month for a payment of $100 or 5000 visitors for $450, and so on.

4. Viral marketing

Viral marketing, taken its name from the medical term “virus”, really denotes something that has the potential to multiply itself exponentially, like a virus. Today, this is the most economical and tested strategy of internet marketing and it is utilized by all internet gurus, marketing people and the like.

In viral marketing, the basic idea of viral marketing is about giving out attractive & exciting things to people free of charge. Of course whatever you give out will bear the name of your site inscribed in it. And people will gladly pass them to others. In this way, the name of your site will spreads like a virus.

Things to keep in mind when using this method of marketing:

First and foremost, give something of value. If people see you offering free e-books that provide a guide to making money, they will be happy to receive your “gift”. So what you need to do is simply pass your friends some free e-books and they will in turn pass the same to many other friends. This will continue for 6 to 7 stages, and within 2 weeks, the free e-book will reach a vast audience. Of course the e-book has a link to your site.

Second, utilize your social circles. Most of us keep regular contact with 10-12 people. These people are primarily friends and acquaintances and they include anyone who would love your stuff and would be sharing with these 12 people of the innermost circle. It is basically an easy way to reach 13 people with just one shot.

Third, make sure you follow up with repeated campaigns. The data show that viral marketing drives keep going for 2 – 3 weeks, and then die out. So, you have to repeat the procedure with a new campaign after every 2 – 3 weeks. And of course every new drive should have a new free stuff to give away.

In many cases your free ebooks are copyright free, so that they can be freely used and transferred to others. The idea here is to make sure you reach maximum number of people.

Fourth, plan ahead for potential fast growth! This is what viral marketing is all about; it can really steer your business to a rapid growth. And you must be ready to grow with it. This means that you have to be ready to handle at least 10 times the order within a given time. Plus, you need to have a bigger bandwidth for your website, to manage the added traffic-load. Furthermore, you must be all set to delegate and/or hire people whenever necessary. So, the bottom-line is, unless you are ready to support the business and the growing demand, you will fade away…

Fifth, use “cross advertising”, i.e., promotion of other services with your main campaign so that people can also see/buy other related products. Back-end marketing can help you enhance your sales up to 30%.

Sixth, make sure you offer free gifts to visitors to get their email address. Free gifts do wonders. I have had campaigns that produced the highest message openings with almost 90% click rates! Free gifts work helping you in creating your own database of customers. You can compliment your free gifts with newsletter campaigns offering your customers some really useful information.

Seventh, utilize Google AdSense as part of your advertisement campaign. Google provides one of the top three Pay-per-click programs on the internet. As the owner of a website you can apply to enroll with AdSense and allow advertisements to appear on your web page. The advertisements that appear are managed by Google are connected to the content on your website and you profit from the income on the per click basis.

There are other similar programs available on the internet that serves the same purpose:

o Yahoo YPN
o Clicksor
o TargetPoint
o AffiliateSensor

Eight, affiliate marketing, one of the oldest and extensively practiced systems of selling other people’s products and getting a share of the profits. When you sign up with a merchant, you get is a java code for their banner. You can paste the HTML code on your site and the banners start appearing there.

Some of the biggest affiliate program exchanges are, ClickBank, eAds, ValueClick, Safe Audit and Demoz.

Ninth, use social networking sites, such as MySpace, tweeter and you are assured of networking site with millions of users.

You can use social networking to earn a home based passive income, by following these tips:

1. Create a blog or website of your own which gives information on subjects like internet income generation
2. Get your own account started by signing up with a pay per click vendor like Google AdSense. As I mentioned before, paste the java code you get into the HTML codes of your site/blog. Advertisements will start appearing in the site/blog. You earn commissions each time someone clicks on them.
3. Sign up with some affiliate program like ClickBank. Once you register with ClickBank you can refer your visitors to your partner sites, and whenever they become paid members of the site, or if they purchase, you earn a commission.
4. Join MySpace and start building your customer base. Start posting messages and watch your customer base grow.
5. Use testimonials of your satisfied customers alongside the main body of the sales letter. To make the testimonials look more authentic, paste photographs of people who have given the testimonials and the
links to their sites.
6. Give out free gifts – a method that works very well building your list! Give away e-books for free if someone buys one product. This way they feel satisfied as at the price of one, they get a number of things.

Conclusion

The above is basic information regarding how to generate home based passive income. The bottom line here is to work less and earn more without a direct involvement and steadily achieve the much sought after financial freedom. Hopefully, the ideas and guideline here have given you a head start. Use them and make money!

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