Passive Income Blog vs Actively Managed Blog

July 4, 2019 by

For me, my initial goal is to make $1000/month with this blog. After that, my next goal is $5000/month. My long-term goal is $10,000/month.

I haven’t thought about what I would do with it once I reach that number, but I have my plate full for now. I can worry about that later.

One of the things that I have to consider is…

Do I want to hit $10,000 with passive income or do I want to do whatever’s necessary – even if it means I have to run an actively managed blog?

I don’t think many people talk about this, so you might be confused what I’m talking about here.

So let’s go through the differences.

What’s the difference?

I feel it’s about 3-5x faster to reach a revenue target if you are willing to run an actively managed blog (depending on how you do it). By “actively managed” I’m not talking about the processes behind a blog like writing content and keeping it updated.

I’m talking about actively managed income streams.

Passive income monetization streams DON’T require any activity or management from me to make money. Actively managed monetization streams DO require me to be active. If I’m not, I don’t make money, or at least as much money as I could have if I were.

Passive income monetization streams:

Here are some examples of passive income monetization streams.

Advertising: These would be through joining ad networks like Adsense, Mediavine, or Adthrive. No direct deals or sponsored posts. That would require active management of ad partners, and doing a ton of outreach to get new sponsors.

Affiliate marketing: Set and forget affiliate links that make commissions each month are one of the best ways to make passive income.

DIY courses: Online courses can be both passive income or actively managed. It depends on how you structure them. Some people offer office hours, bonus consulting packages, unlimited support through email. These aren’t passive and requires you to spend time with your students each month. While you can charge more money for these features, leaving them out and making the courses purely DIY makes the courses purely passive for you.

Ebooks: For courses, some people expect support or office hours. Not for ebooks. Ebooks can be created and sold quickly and very passively. You’ll rarely get any support questions.

Actively managed monetization streams:

Here are some examples of actively managed monetization streams.

Services: Selling services on your blog is one of the highest ROI revenue monetization methods you can use. Many people use their blogs as a lead generation tool for their services. Some examples are design, SEO, legal services, etc.

Consulting: This is less intense than offering services. You simply sell 1-hour calls to your readers and offer your expertise to them. Depending on the topic and your level of expertise, prices can range anywhere between $50/hour to $2000/hour. If you’re on the higher end, this is a rapid way to grow a 6-figure blog as fast as possible.

Full-blown online courses: We mentioned online courses in the passive monetization method section. Again, this can be passive or active depending on what features you’re willing to offer. If you’re open to being active with it, you can offer monthly office hours, bonus consulting packages, or things like monthly webinars or interviews with industry experts. These features can allow you to increase the price of your course by 2-3x, but it will require a big time investment each month from you.

Sponsored posts and direct advertising partnerships: This is the most common monetization strategy for large media companies. Instead of using an ad network, they prefer to do direct deals with brands, which can lead to much higher RPM’s. For them, the name of the game is REACH. The bigger reach they have, the more they can charge per partnership. Reach is the total views/followers/traffic on all platforms they own like their blog, YouTube, Facebook, Instagram, Twitter, newsletter. It’s a lot to manage and grow all at once, which is why the model really only works if they have big capital to fund their company and by hiring lots of employees.

Which one’s better?

Actively managed monetization streams can help you hit higher revenue targets faster. Much faster. If you’re up for it, offering services or consulting can spike your revenue at a really early stage to something like $1000-$5000/month.

However, for this blog, I’m opting to use passive monetization streams. My goal with Budgeting Blogger is to build a 100% passive income blog, even if it means slower revenue growth.

As you can tell, I have trouble finding time to work on this blog even without any monetization streams added at the moment. I just don’t have the time to devote time to managing monetization strategies. I’d prefer just set and forget strategies and focus purely on writing content and growing traffic.

This will result in slower growth. But that’s okay.

People think of “growth” the wrong way when it comes to blogging. For 99% of people, “growth” basically means making money as soon as possible. If you browse forums or talk to people who start blogs, all they care about is: “When will I start making money with my blog?”

But the important thing isn’t WHEN.

It’s HOW and for HOW LONG. It doesn’t matter if you make $100 in the first month or even if it takes you 20 months.

The real important thing is what happens after you make the $100. Does it continue to make money month over month, or does it die off and you have to start all over again to make the same amount of money?

The point is: Making money isn’t the important part. Building the foundations for your blog to continue making money is the important part. So while yes, it will take me 3-5x longer to reach my goal with a passive monetization strategy, I’m working on building the foundations behind the blog for it to continue doing so once I do – even if I’m not actively working on the blog.