It took me 16 years to build a portfolio that generates over $200,000 a year in income. It took only four years to build the same income blogging. Why?
1) Low barriers to entry. Depending on where and when you buy, you need $1 – $2M in capital to generate $50,000 in net operating income with property here in San Francisco. It takes at least $1M in capital to generate $23,000 a year in dividend income from the S&P 500 index. With both asset classes, you can also lose principal. With blogging, it costs as little as $2.95/month to run a website and you get a domain name for free. If things don’t work out, all you’ve lost is your time and a minimal amount of money.
2) Enormous demand curve. Financial Samurai can theoretically reach three billion people online through search engines, word of mouth, organic promotion, and advertising. If that happens, I’ll be worth billions and I’ll take each of you out to a steak dinner! However, in real estate, you can only lock in one set of tenants and raise the rent once a year. In the stock market, you are a passive investor with no control over dividend payouts or other strategic management decisions. With a retail store, you can only capture your neighborhood traffic. The internet is growing in usage and size every day.
3) Operating leverage. Because costs are generally fixed (hosting and domain registration), operating profits soar the more traffic and revenue you get. It’s not uncommon to earn 70%+ operating profit margins as a professional blogger, depending on how much you pay yourself. Very few businesses can compare.
Now that I’ve convinced you pro blogging is the best profession on Earth, perhaps you’re interested in knowing how much you can actually make? Before we get to the money, let me first highlight the types of people most suitable for succeeding as a professional blogger.