Tuesday, December 7, 2010

Making Easy Money


This guest post is by Roman from how this website makes money.


Two years ago I stumbled across the concept of blogging for money.  Instantly it hit me as the perfect thing: sit behind a computer, design a site, write, be my own boss, work from home, what could be better? I knew nothing about traffic, SEO, backlinks, Pagerank, or keywords.  I knew nothing about how to make money with a website.  So what did I do next?  I registered the domain name howthiswebsitemakesmoney.


Looking back all I can do is laugh at my arrogance.  Like thousands before me and thousands who will come after me, my first attempt at blogging was a site about making money online.


Two years later, I know how to start a site, I know how to write content, I know about SEO, I know about backlinks, I know how to add advertisements … but I still do not know how to make good money online.  The site makes dimes a day, not dollars.


The site has been two years of disappointment.  Two  years of waking up in the morning and seeing the same green egg in AdSense.  Two years of waiting for a four-digit affiliate check with my name on it.  Two years of working without pay.  Two years of scratching my head.


So I asked for advice, and every time the reply was the same: create a site about something else. Create a site about what you know and what you enjoy.  Do not create a site with the intent to make money, create a site with the intent to help people by doing something you enjoy doing.


What happened when I changed my intent


Six months ago I created a new site.  This time my intent was pure pleasure.


I live in Prague and I love it here.  So I made a little site about how great Prague is and what people should do when they come for a visit.  It was built in a month.  In a gust of activity I designed the site and wrote the content.


It was so easy.   I did not agonize over what to write about.  The content flowed effortlessly from my head to the keyboard.  I did not have to take long walks with the dog or waste water standing dazed in the shower coming up with new ideas.  I just sat down at the computer and wrote about what I know.  It was so easy I actually looked forward to it.


As an afterthought, I created a simple page where people can order a real postcard from Prague.  Visitors select a picture of Prague and fill out a form indicating what they want written on the postcard.  After they hit the Submit button I get the request by email.  I grab a postcard and, like an ancient scribe long before computers, lick the tip of the pen and write.  After pounding a Prague stamp on the postcard I toss it into the mailbox on my way to work. I charge $4.00 for this five minutes of work.


I created this site with no aspirations of becoming rich, no day dreams of shaking hands with Oprah, no imagined scenes of telling my employer to find some other donkey to kick around. I created the website because it was easy for me to do and I enjoyed it. I made it because I needed a break from my ‘real’ website. I expected nothing to happen.


Again, I was wrong.


My hand is ink blue from all the postcards I have written.


I wrote a postcard from a son playing a trick on his mother: “Hi, Mom!  Sorry for not calling in last few days.  But I am in Prague with friends.  Having a great time and the beer is sooo cheap.  Say hi to Dad.”


I have written postcards to countries all over the world.  Some of them in languages other then English—I have no idea what I am writing. Fortunately, the order form does not allow Chinese characters!


I get emails from people thanking me for the information they found on the site, thanking me for the postcard, asking for more information.


I feel like I am making the world a better place.  I made a website about something I know about and am interested in and people are thanking me. Emotionally it is a soft, warm, fuzzy ball.


And yes, I am making money.


Intend to enjoy and you might make money


I learned a lot about making money online not from my site about making money, but from licking postage stamps.


New arrivals to the make-money-online scene go through the same initiation—they start out with the intent to make money, then fail to make more then a pile of pennies.  For some it means the end and they quit, but for others this brutal introduction teaches them that their intent needs to change.


Of course, making money is about traffic, clicks, affiliates, backlinks SEO, but it’s also about finding something you enjoy doing.  If your intent is only to make money the odds are stacked against you: you will probably quit.  But if your intent is to do something you enjoy then you will keep moving forward until one day, you will be surprised to find that you are making money.


What’s your intent?


Roman intends to figure out how this website makes money.  He has been trying to do that for two long years, so when he needs a break and do something fun he goes onto his other website to send a real postcard to his mother who misses him very much.



Affordability: Resources, Not Money



Probably the biggest thing that trips people up when thinking about countercyclical public policy is a misleading over-emphasis on accounting ledger books as the right measure of what can and can’t be afforded. Making sums add up is important, of course, but it’s more helpful to start by thinking about real resources. People’s time, capital goods, raw materials, etc.


Think about the mayor of a mid-sized city presiding over good economic times. Tax revenues are going up, and demands on social services are relatively low. Suddenly the budgetary picture looks very bright and it seems easy to “afford” longer library hours, more frequent bus service, and tax cuts. This, however, is close to backwards. You can’t manufacture librarians or bus drivers. It’s when times are good that it’s most costly to pull human beings out of whatever else they’re doing and have them drive buses. Similarly, it’s when people are flush that extra money in their pockets is going to go to enterprises with low marginal utility.


Then along comes the crash and suddenly the budget looks bleak. Now we “can’t afford” those extra social services and we need higher taxes. But with household budgets tight, the taxes are much more burdensome than they would have been in good times. And the real social cost of having someone work in a library rather than sit at home unemployed is probably below zero.


What you actually ought to be doing is setting the quantity of social services at some level that makes sense across the business cycle. Then during periods of economic growth, taxes should raise more money than you spend. That way thanks to your stockpile you never need to cut services in the face of a recession and in fact can shower your city with tax cuts during a downturn to families can get by. But of course almost no jurisdiction in America actually does engage in this sort of responsible budgeting, and the Reagan and W Bush administrations took the federal government on a wildly different course. This has bad economic consequences on its own terms, and I also think tends to distort the political dialogue. Since budget deficits are “bad,” it’s unintuitive to say that bigger deficits will help in a recession. By contrast I think it’d be easy for people to see why a surplus-accumulating government shouldn’t try to horde even more money at a time when people are struggling. The reality is that nothing magical happens at zero, and what we “can afford” is ultimately determined by how many resources are available not by accountants.






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From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Knight Science Journalism Tracker » Blog Archive » <b>News</b> from the <b>...</b>

Wikileaks is top news right now. And not only for political journalists. There is a science journalism perspective, too, proves the Frankfurter Allgemeine Zeitung (Jürgen Kaube). “Every social relationship depends on some, perhaps a lot ...



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Facebook Profile Changes: More Media Play Than <b>News</b>?

Facebook sure has arrived when it comes to the traditional media set as it used 60 Minutes (in more ways ...

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From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

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Wikileaks is top news right now. And not only for political journalists. There is a science journalism perspective, too, proves the Frankfurter Allgemeine Zeitung (Jürgen Kaube). “Every social relationship depends on some, perhaps a lot ...



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Facebook Profile Changes: More Media Play Than <b>News</b>?

Facebook sure has arrived when it comes to the traditional media set as it used 60 Minutes (in more ways ...

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From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Knight Science Journalism Tracker » Blog Archive » <b>News</b> from the <b>...</b>

Wikileaks is top news right now. And not only for political journalists. There is a science journalism perspective, too, proves the Frankfurter Allgemeine Zeitung (Jürgen Kaube). “Every social relationship depends on some, perhaps a lot ...



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Facebook Profile Changes: More Media Play Than <b>News</b>?

Facebook sure has arrived when it comes to the traditional media set as it used 60 Minutes (in more ways ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Knight Science Journalism Tracker » Blog Archive » <b>News</b> from the <b>...</b>

Wikileaks is top news right now. And not only for political journalists. There is a science journalism perspective, too, proves the Frankfurter Allgemeine Zeitung (Jürgen Kaube). “Every social relationship depends on some, perhaps a lot ...



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This guest post is by Roman from how this website makes money.


Two years ago I stumbled across the concept of blogging for money.  Instantly it hit me as the perfect thing: sit behind a computer, design a site, write, be my own boss, work from home, what could be better? I knew nothing about traffic, SEO, backlinks, Pagerank, or keywords.  I knew nothing about how to make money with a website.  So what did I do next?  I registered the domain name howthiswebsitemakesmoney.


Looking back all I can do is laugh at my arrogance.  Like thousands before me and thousands who will come after me, my first attempt at blogging was a site about making money online.


Two years later, I know how to start a site, I know how to write content, I know about SEO, I know about backlinks, I know how to add advertisements … but I still do not know how to make good money online.  The site makes dimes a day, not dollars.


The site has been two years of disappointment.  Two  years of waking up in the morning and seeing the same green egg in AdSense.  Two years of waiting for a four-digit affiliate check with my name on it.  Two years of working without pay.  Two years of scratching my head.


So I asked for advice, and every time the reply was the same: create a site about something else. Create a site about what you know and what you enjoy.  Do not create a site with the intent to make money, create a site with the intent to help people by doing something you enjoy doing.


What happened when I changed my intent


Six months ago I created a new site.  This time my intent was pure pleasure.


I live in Prague and I love it here.  So I made a little site about how great Prague is and what people should do when they come for a visit.  It was built in a month.  In a gust of activity I designed the site and wrote the content.


It was so easy.   I did not agonize over what to write about.  The content flowed effortlessly from my head to the keyboard.  I did not have to take long walks with the dog or waste water standing dazed in the shower coming up with new ideas.  I just sat down at the computer and wrote about what I know.  It was so easy I actually looked forward to it.


As an afterthought, I created a simple page where people can order a real postcard from Prague.  Visitors select a picture of Prague and fill out a form indicating what they want written on the postcard.  After they hit the Submit button I get the request by email.  I grab a postcard and, like an ancient scribe long before computers, lick the tip of the pen and write.  After pounding a Prague stamp on the postcard I toss it into the mailbox on my way to work. I charge $4.00 for this five minutes of work.


I created this site with no aspirations of becoming rich, no day dreams of shaking hands with Oprah, no imagined scenes of telling my employer to find some other donkey to kick around. I created the website because it was easy for me to do and I enjoyed it. I made it because I needed a break from my ‘real’ website. I expected nothing to happen.


Again, I was wrong.


My hand is ink blue from all the postcards I have written.


I wrote a postcard from a son playing a trick on his mother: “Hi, Mom!  Sorry for not calling in last few days.  But I am in Prague with friends.  Having a great time and the beer is sooo cheap.  Say hi to Dad.”


I have written postcards to countries all over the world.  Some of them in languages other then English—I have no idea what I am writing. Fortunately, the order form does not allow Chinese characters!


I get emails from people thanking me for the information they found on the site, thanking me for the postcard, asking for more information.


I feel like I am making the world a better place.  I made a website about something I know about and am interested in and people are thanking me. Emotionally it is a soft, warm, fuzzy ball.


And yes, I am making money.


Intend to enjoy and you might make money


I learned a lot about making money online not from my site about making money, but from licking postage stamps.


New arrivals to the make-money-online scene go through the same initiation—they start out with the intent to make money, then fail to make more then a pile of pennies.  For some it means the end and they quit, but for others this brutal introduction teaches them that their intent needs to change.


Of course, making money is about traffic, clicks, affiliates, backlinks SEO, but it’s also about finding something you enjoy doing.  If your intent is only to make money the odds are stacked against you: you will probably quit.  But if your intent is to do something you enjoy then you will keep moving forward until one day, you will be surprised to find that you are making money.


What’s your intent?


Roman intends to figure out how this website makes money.  He has been trying to do that for two long years, so when he needs a break and do something fun he goes onto his other website to send a real postcard to his mother who misses him very much.



Affordability: Resources, Not Money



Probably the biggest thing that trips people up when thinking about countercyclical public policy is a misleading over-emphasis on accounting ledger books as the right measure of what can and can’t be afforded. Making sums add up is important, of course, but it’s more helpful to start by thinking about real resources. People’s time, capital goods, raw materials, etc.


Think about the mayor of a mid-sized city presiding over good economic times. Tax revenues are going up, and demands on social services are relatively low. Suddenly the budgetary picture looks very bright and it seems easy to “afford” longer library hours, more frequent bus service, and tax cuts. This, however, is close to backwards. You can’t manufacture librarians or bus drivers. It’s when times are good that it’s most costly to pull human beings out of whatever else they’re doing and have them drive buses. Similarly, it’s when people are flush that extra money in their pockets is going to go to enterprises with low marginal utility.


Then along comes the crash and suddenly the budget looks bleak. Now we “can’t afford” those extra social services and we need higher taxes. But with household budgets tight, the taxes are much more burdensome than they would have been in good times. And the real social cost of having someone work in a library rather than sit at home unemployed is probably below zero.


What you actually ought to be doing is setting the quantity of social services at some level that makes sense across the business cycle. Then during periods of economic growth, taxes should raise more money than you spend. That way thanks to your stockpile you never need to cut services in the face of a recession and in fact can shower your city with tax cuts during a downturn to families can get by. But of course almost no jurisdiction in America actually does engage in this sort of responsible budgeting, and the Reagan and W Bush administrations took the federal government on a wildly different course. This has bad economic consequences on its own terms, and I also think tends to distort the political dialogue. Since budget deficits are “bad,” it’s unintuitive to say that bigger deficits will help in a recession. By contrast I think it’d be easy for people to see why a surplus-accumulating government shouldn’t try to horde even more money at a time when people are struggling. The reality is that nothing magical happens at zero, and what we “can afford” is ultimately determined by how many resources are available not by accountants.






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Facebook Profile Changes: More Media Play Than <b>News</b>?

Facebook sure has arrived when it comes to the traditional media set as it used 60 Minutes (in more ways ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Knight Science Journalism Tracker » Blog Archive » <b>News</b> from the <b>...</b>

Wikileaks is top news right now. And not only for political journalists. There is a science journalism perspective, too, proves the Frankfurter Allgemeine Zeitung (Jürgen Kaube). “Every social relationship depends on some, perhaps a lot ...



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Facebook Profile Changes: More Media Play Than <b>News</b>?

Facebook sure has arrived when it comes to the traditional media set as it used 60 Minutes (in more ways ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Knight Science Journalism Tracker » Blog Archive » <b>News</b> from the <b>...</b>

Wikileaks is top news right now. And not only for political journalists. There is a science journalism perspective, too, proves the Frankfurter Allgemeine Zeitung (Jürgen Kaube). “Every social relationship depends on some, perhaps a lot ...



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Facebook Profile Changes: More Media Play Than <b>News</b>?

Facebook sure has arrived when it comes to the traditional media set as it used 60 Minutes (in more ways ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Knight Science Journalism Tracker » Blog Archive » <b>News</b> from the <b>...</b>

Wikileaks is top news right now. And not only for political journalists. There is a science journalism perspective, too, proves the Frankfurter Allgemeine Zeitung (Jürgen Kaube). “Every social relationship depends on some, perhaps a lot ...



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Facebook Profile Changes: More Media Play Than <b>News</b>?

Facebook sure has arrived when it comes to the traditional media set as it used 60 Minutes (in more ways ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Knight Science Journalism Tracker » Blog Archive » <b>News</b> from the <b>...</b>

Wikileaks is top news right now. And not only for political journalists. There is a science journalism perspective, too, proves the Frankfurter Allgemeine Zeitung (Jürgen Kaube). “Every social relationship depends on some, perhaps a lot ...



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Facebook Profile Changes: More Media Play Than <b>News</b>?

Facebook sure has arrived when it comes to the traditional media set as it used 60 Minutes (in more ways ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Knight Science Journalism Tracker » Blog Archive » <b>News</b> from the <b>...</b>

Wikileaks is top news right now. And not only for political journalists. There is a science journalism perspective, too, proves the Frankfurter Allgemeine Zeitung (Jürgen Kaube). “Every social relationship depends on some, perhaps a lot ...



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Facebook Profile Changes: More Media Play Than <b>News</b>?

Facebook sure has arrived when it comes to the traditional media set as it used 60 Minutes (in more ways ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Knight Science Journalism Tracker » Blog Archive » <b>News</b> from the <b>...</b>

Wikileaks is top news right now. And not only for political journalists. There is a science journalism perspective, too, proves the Frankfurter Allgemeine Zeitung (Jürgen Kaube). “Every social relationship depends on some, perhaps a lot ...



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This guest post is by Roman from how this website makes money.


Two years ago I stumbled across the concept of blogging for money.  Instantly it hit me as the perfect thing: sit behind a computer, design a site, write, be my own boss, work from home, what could be better? I knew nothing about traffic, SEO, backlinks, Pagerank, or keywords.  I knew nothing about how to make money with a website.  So what did I do next?  I registered the domain name howthiswebsitemakesmoney.


Looking back all I can do is laugh at my arrogance.  Like thousands before me and thousands who will come after me, my first attempt at blogging was a site about making money online.


Two years later, I know how to start a site, I know how to write content, I know about SEO, I know about backlinks, I know how to add advertisements … but I still do not know how to make good money online.  The site makes dimes a day, not dollars.


The site has been two years of disappointment.  Two  years of waking up in the morning and seeing the same green egg in AdSense.  Two years of waiting for a four-digit affiliate check with my name on it.  Two years of working without pay.  Two years of scratching my head.


So I asked for advice, and every time the reply was the same: create a site about something else. Create a site about what you know and what you enjoy.  Do not create a site with the intent to make money, create a site with the intent to help people by doing something you enjoy doing.


What happened when I changed my intent


Six months ago I created a new site.  This time my intent was pure pleasure.


I live in Prague and I love it here.  So I made a little site about how great Prague is and what people should do when they come for a visit.  It was built in a month.  In a gust of activity I designed the site and wrote the content.


It was so easy.   I did not agonize over what to write about.  The content flowed effortlessly from my head to the keyboard.  I did not have to take long walks with the dog or waste water standing dazed in the shower coming up with new ideas.  I just sat down at the computer and wrote about what I know.  It was so easy I actually looked forward to it.


As an afterthought, I created a simple page where people can order a real postcard from Prague.  Visitors select a picture of Prague and fill out a form indicating what they want written on the postcard.  After they hit the Submit button I get the request by email.  I grab a postcard and, like an ancient scribe long before computers, lick the tip of the pen and write.  After pounding a Prague stamp on the postcard I toss it into the mailbox on my way to work. I charge $4.00 for this five minutes of work.


I created this site with no aspirations of becoming rich, no day dreams of shaking hands with Oprah, no imagined scenes of telling my employer to find some other donkey to kick around. I created the website because it was easy for me to do and I enjoyed it. I made it because I needed a break from my ‘real’ website. I expected nothing to happen.


Again, I was wrong.


My hand is ink blue from all the postcards I have written.


I wrote a postcard from a son playing a trick on his mother: “Hi, Mom!  Sorry for not calling in last few days.  But I am in Prague with friends.  Having a great time and the beer is sooo cheap.  Say hi to Dad.”


I have written postcards to countries all over the world.  Some of them in languages other then English—I have no idea what I am writing. Fortunately, the order form does not allow Chinese characters!


I get emails from people thanking me for the information they found on the site, thanking me for the postcard, asking for more information.


I feel like I am making the world a better place.  I made a website about something I know about and am interested in and people are thanking me. Emotionally it is a soft, warm, fuzzy ball.


And yes, I am making money.


Intend to enjoy and you might make money


I learned a lot about making money online not from my site about making money, but from licking postage stamps.


New arrivals to the make-money-online scene go through the same initiation—they start out with the intent to make money, then fail to make more then a pile of pennies.  For some it means the end and they quit, but for others this brutal introduction teaches them that their intent needs to change.


Of course, making money is about traffic, clicks, affiliates, backlinks SEO, but it’s also about finding something you enjoy doing.  If your intent is only to make money the odds are stacked against you: you will probably quit.  But if your intent is to do something you enjoy then you will keep moving forward until one day, you will be surprised to find that you are making money.


What’s your intent?


Roman intends to figure out how this website makes money.  He has been trying to do that for two long years, so when he needs a break and do something fun he goes onto his other website to send a real postcard to his mother who misses him very much.



Affordability: Resources, Not Money



Probably the biggest thing that trips people up when thinking about countercyclical public policy is a misleading over-emphasis on accounting ledger books as the right measure of what can and can’t be afforded. Making sums add up is important, of course, but it’s more helpful to start by thinking about real resources. People’s time, capital goods, raw materials, etc.


Think about the mayor of a mid-sized city presiding over good economic times. Tax revenues are going up, and demands on social services are relatively low. Suddenly the budgetary picture looks very bright and it seems easy to “afford” longer library hours, more frequent bus service, and tax cuts. This, however, is close to backwards. You can’t manufacture librarians or bus drivers. It’s when times are good that it’s most costly to pull human beings out of whatever else they’re doing and have them drive buses. Similarly, it’s when people are flush that extra money in their pockets is going to go to enterprises with low marginal utility.


Then along comes the crash and suddenly the budget looks bleak. Now we “can’t afford” those extra social services and we need higher taxes. But with household budgets tight, the taxes are much more burdensome than they would have been in good times. And the real social cost of having someone work in a library rather than sit at home unemployed is probably below zero.


What you actually ought to be doing is setting the quantity of social services at some level that makes sense across the business cycle. Then during periods of economic growth, taxes should raise more money than you spend. That way thanks to your stockpile you never need to cut services in the face of a recession and in fact can shower your city with tax cuts during a downturn to families can get by. But of course almost no jurisdiction in America actually does engage in this sort of responsible budgeting, and the Reagan and W Bush administrations took the federal government on a wildly different course. This has bad economic consequences on its own terms, and I also think tends to distort the political dialogue. Since budget deficits are “bad,” it’s unintuitive to say that bigger deficits will help in a recession. By contrast I think it’d be easy for people to see why a surplus-accumulating government shouldn’t try to horde even more money at a time when people are struggling. The reality is that nothing magical happens at zero, and what we “can afford” is ultimately determined by how many resources are available not by accountants.






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Facebook Profile Changes: More Media Play Than <b>News</b>?

Facebook sure has arrived when it comes to the traditional media set as it used 60 Minutes (in more ways ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Knight Science Journalism Tracker » Blog Archive » <b>News</b> from the <b>...</b>

Wikileaks is top news right now. And not only for political journalists. There is a science journalism perspective, too, proves the Frankfurter Allgemeine Zeitung (Jürgen Kaube). “Every social relationship depends on some, perhaps a lot ...



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Facebook Profile Changes: More Media Play Than <b>News</b>?

Facebook sure has arrived when it comes to the traditional media set as it used 60 Minutes (in more ways ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Knight Science Journalism Tracker » Blog Archive » <b>News</b> from the <b>...</b>

Wikileaks is top news right now. And not only for political journalists. There is a science journalism perspective, too, proves the Frankfurter Allgemeine Zeitung (Jürgen Kaube). “Every social relationship depends on some, perhaps a lot ...



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Facebook Profile Changes: More Media Play Than <b>News</b>?

Facebook sure has arrived when it comes to the traditional media set as it used 60 Minutes (in more ways ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Knight Science Journalism Tracker » Blog Archive » <b>News</b> from the <b>...</b>

Wikileaks is top news right now. And not only for political journalists. There is a science journalism perspective, too, proves the Frankfurter Allgemeine Zeitung (Jürgen Kaube). “Every social relationship depends on some, perhaps a lot ...



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