How I ALMOST made $10,000 a year in passive income.

My first year of dibbling in passive income is near an end, even though I have only been publicly blabbing my mouth with this blog for a few weeks, I have had an actual monthly revenue of income trickling in for almost 12 months. I am about to let you all in on a little secret, my story starts back in February of 2008, the day I got my first drop of passive income.

It was a usual day of being a freelance hero. I was sitting at my desk reading some blogs much like you are doing right now, when I went to the old trusty browser and loaded up my email. ‘You have been invited to beta test our network’ the email read. Apparently I was chosen to be a part of the GraphicRiver.net pre-release. I was allowed to setup an account and get a jump-start before the site went public. This would allow me to build a portfolio and setup shop so when the curtains dropped I would be able to start making some money.

Fill your tank with the right gas.

I did some browsing of the site, and I saw one fatal mistake that 90% of the users were making. They were all uploading every little graphic they have ever made, nothing that could universally used throughout the design world. I went with the opposite, I sat down and created a Web 2.0 Background Designer, a simple, customizable web background maker. You could easily adjust the colors and pump out different backgrounds you would need. Out of the gate it was an instant success. People with 200 items weren’t getting sales, I had 1 dinky item and made 60+ sales the first month.

I had the right idea, that is where I was successful. I had an original file that could be used time and again, so naturally other designers wanted it.

Step on the gas!

So i thought I was going to begin my life on easy street. I thought to myself, make 3 files like my background maker a month and let the cash start pouring in. I mean one dinky file sold over 60 times resulting in $60+. If I could make an average of $54 dollars a month per file, and add 3 files a month I thought to myself:

• 1 file x 54.00 = $54
• 3 file x 54.00 = $162
• 6 file x 54.00 = $324
• 9 file x 54.00 = $486
• 12 file x 54.00 = $648
• 15 file x 54.00 = $810
• 18 file x 54.00 = $972
• 21 file x 54.00 = $1,134
• 24 file x 54.00 = $1,296
• 27 file x 54.00 = $1,308
• 30 file x 54.00 = $1,620
• 33 file x 54.00 = $1,782
• 1 year = $10,594.00

All of this is great in theory, and I knew all things wouldn’t sale so well, but maybe some would be an even bigger hit. Lets not get ahead of ourselves though, for there is one more part of the equation, for this isn’t how I made $10,000 in one year, its how i DID NOT!

Total Engine Failure!

You want to know what that last part of the equation was? It was me. I never did another god damn thing to help build my portfolio on graphic river. Hell I barely even logged into the site for a few months. Call it procrastination, call it being dumb, call it what you want, but needless to say my sales dropped off. At the start since I was getting so many buys and portfolio views that my item was constantly at the top of the list. When you sorted by sales alone I was second to the top, but I neglected my shining star, and the result:

Sales dropped dramatically. So as you can see this adds no where close to $10,000. In fact it adds up to a couple hundred dollars, but the potential was there.

Lesson: Know When to Capitalize

In retrospect it could have been so simple. Have a goal, make a goal-plan, follow that goal-plan, check the effectiveness of the goal plan and tweak it as necessary. All the puzzle pieces were in the right place but I failed to capitalize on the moment. I just had dreams in my head and never put them into action. That is half of the reason I started this blog, to give me an external source of motivation. To have a place to mark my accomplishments. So please, learn from my mistakes and take this advice:

• Keep eyes open for oppurtunity, it is out there you just have to see it.
• When oppurtunity is spotted do your homework and give it your best shot.
• Make a goal and goal plan to achieve success.
• When you see results, CAPITALIZE on them.

Like my story? Have a similar story? Maybe some advice so others do not make the same mistakes? Share your thoughts and ideas in the comments.

*note – this blog post was written for a challenge from SimplyZesty, but is a very true story.