Forum Moderators: martinibuster
How much income is enough? My thinking is that twice what you need to live on is a good goal. That should help offset lean months or unexpected events such as smartpricing or losing your rank.
Plan for additional costs. I think the two biggest for people living in the US are health insurance and full FICA tax. Today I get good health coverage from my employer, and pay the typical half FICA. Health insurance for the self-employed is probably a topic in itself. How to get a good rate?
Diversify. Build up more than one web site. Try not to let a single web site dominate your earnings. Have other income streams, like CJ, Amazon, AdBrite, etc. - they may not earn as much as AdSense, but it's worth the peace of mind.
Diversify more. Instead of spending excess income on plasma TVs and trips to the Bahamas, invest that money in stocks, bonds, real estate, etc. Live beneath your means and invest the rest.
Have a contingency plan. What will you do if your plans go up in smoke? Go into a new business? If so, have money set aside for it. Go back to the cubicle? Keep your skills up to date.
I'm curious about other people's experiences. Who has made the leap and how has it gone? What words of advice do you have?
Not sure about this one? Don't want to be negative but there are things like smart priciing and being banned!
My income from Adsense can only get better in the future so I'm very excited.
I suspect in the future it will be harder to make money from Adsense. Generally in any field where there are high profit margins and relatively low barriers to entry it is usually going to get more competitive over time. Years ago programmers could name their price because there were so few compared to the demand, but that eventually changed as more people entered the field. Each year I can make a living from my web sites I am grateful for it, but I don't expect it to last forever.
[edited by: Jane_Doe at 8:27 pm (utc) on Dec. 19, 2006]
But what about feeling "connected"?
Suggestion: get involved in some sort of volunteer committee work that will (1) give you a change from your normal routine, and (2) help to make your local community a better place.
When people around here ask what I do, they're usually just being polite. My line is that "I have a business on the internet so I'm on the computer all day." If they ask what it involves, "I help some companies with their advertising." That's enough detail for most people and they'll change the subject.
I've been thinking of starting a local business directory just to have something to talk about that people would recognize.
But what about feeling "connected"?
Some of us don't need that as much as others seem to.
However, strive to lower your overhead instead of increase. I seriously considered renting an office away from the house, but the tax breaks are just too important to not work from home. (even if I don't get as much done as I would if I didn't).
Low overhead combined with diversifcation are the two important things to consider.
Like my daddy always said, "don't put all your eggs into one basket."
My income from Adsense can only get better in the future so I'm very excited.
LOL! I know workingNomad and JaneDoe...
I've been spriced. I've even got that "invalid clicks" notification, so I know Adsense is a roller coaster ride that won't last forever. But given my current earnings, I'd say I can only go up... so yeah I'm "still" excited!
And yes... all earnings from Adsense is treated as icing on the cake and re-invested into other MORE reliable residual/passive income generation.
and re-invested into other MORE reliable residual/passive income generation.
A book I thought was a good read on diversifying offline assets was All About Asset Allocation by Richard A. Ferri.
It just so happens that for the last month or so i have been seriously considering quitting my 'day job' and going full-time on my sites (really one site that makes money, the others need some 'work) .. I make good money at my job so it would be difficult and scary to walk way - but i find myself hating it more and more each day, knowing that i *probably* could quit at any time. Fortunately I have a wife that also makes decent money, and has good health benefits - as a matter of fact TODAY I asked her to verify that if i did quit my job I would be able to switch onto her health-plan..
Reading thru this thread has answered a few questions, and brought up a few things that i don't think I had fully thought-thru like taxes, FICA, going crazy sitting at home all day, drop in SERPS - I guess I'll have to rethink everything.. I think i have diversified fairly well with Adsense, CJ, YPN, Site donations, and affiliates so I guess it boils down to risk-taking. Since I'm not much of a risk taker this is the most difficult part..
I guess when I'm ready to jump, I'll come make a post at let everyone know - i'll need the moral support!
I think i have diversified fairly well with Adsense, CJ, YPN, Site donations, and affiliates so I guess it boils down to risk-taking.
was talking more specifically about diversifying offline : putting the money you earn online to work offline (stocks, property, business etc) ;)
I make good money at my job so it would be difficult and scary to walk way - but i find myself hating it more and more each day, knowing that i *probably* could quit at any time. Fortunately I have a wife that also makes decent money.......Since I'm not much of a risk taker this is the most difficult part..
If you can pare your expenses down to where you can live on one income to cover your basic living expenses, as well as having an emergency savings cushion, then there isn't that much of a risk.
There is an interesting book out called The Two Income Trap that makes a good case for people with families to try to live on one income. One of the authors is a Harvard professor who studies why people go bankrupt, so she has unique insights on what causes people to go into financial difficulties and how others can avoid the same pitfalls. It is written specifically for people who want to start their own business, but much of the advice is applicable, especially if one of the incomes in your family is a bit undependable like web income can be.
[edited by: Jane_Doe at 7:45 pm (utc) on Dec. 21, 2006]
The extra time I gain I will invest solely in creating non-Adsense revenue streams, such as a webshop and the further development of some sites I run.
Risks for me are low. I could have a new job in a week should my Adsense earnings drop, so I am just taking the risk, hoping for the best and knowing it is not such a big risk altogether.
I feel great. Adsense actually allows me to invest time and money in the online business I always wanted :) :)
You are currently in a situation where you are a three income family.
How much money are you putting away in your current situation?
If you aren't saving or investing more than the amount you are currently taking home from your job, you are asking for a rude awakening.
Instead of knowing that you make enogh from AdSense to quit your job, you should be preparing for when you quit your job. Then you will have a lot less risk to be adverse to.
Risks for me are low. I could have a new job in a week should my Adsense earnings drop, so I am just taking the risk, hoping for the best and knowing it is not such a big risk altogether.
That may be a safe assumption for now, but as someone else said earlier, the longer you are out of the work force, the harder it is to find someone to hire you.
Don't let that stop you, just understand and prepare for the fact that a 3 year employment gap will make it highly unlikely that you will get hired in a week at the same rate you are making now.
It is written specifically for people who want to start their own business, but much of the advice is applicable, especially if one of the incomes in your family is a bit undependable like web income can be.
Correction: I meant the boook isn't specifically written for people who want to start their own business....
p/g
It's often said that the barrier to entry into AdSense is low. That is true. But the barrier to entry of "support-your-family-with-AdSense" is crazy high. The stars have to align properly for you to get into that position, not to mention all the work typically required over a period of years.
How is someone who spends one hour or two hours a day for a few days a week always going to beat someone working eight hours a day for five or six days a week?
AdSense is a competition?
How is someone who spends one hour or two hours a day for a few days a week always going to beat someone working eight hours a day for five or six days a week?
As mentioned above, it's not about "beating" other adsense publishers, it's about earning at a level that you're happy with.
But besides that, people still manage to find my sites whether I happen to be working that day or not. I just took 3 days off, and one of them was my highest earning day ever. One of my sites hasn't been updated for over a year, and still manages to get the same amount of traffic week in and week out. Unless you're writing about a rapidly changing subject, or are managing a huge community of users, at some point you should be able to pull back from working 50 hours per week (if you want to).
