I quickly realized that I was over my head. I purchased the domain name and a hosting service. I tinkered with WordPress, got frustrated, changed the website management system, tried going back to WordPress, ended up with a site that didn’t function.

Lost and dejected, I was scrolled through some of the forums that I frequent looking for direction. I chanced upon a thread in one of the Demand Studios writer’s forums discussing passive income. One of the writers, Yolanda Morris, a.k.a. Flippa Chick, weighed in with really pertinent and interesting information.

She appeared on every level to be professional. I checked out her website and saw that she does website design. Impressed by her portfolio and her reputation, I exchanged some emails with her regarding redesigning my site and subsequently hired her to fix the mess that I started.

Everything seemed legit. Yolanda sent me a contract. She outlined a 10 day turn-around-time that included a building a custom logo and set up for advertisements. Well over my head with my website, I was really excited to work with a pro. I returned the contract and paid the fee at the end of November, beginning of December 2009.

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Unfortunately the communication between Yolanda and I started to break down almost immediately. A few weeks went by and she sent me some logos for approval. A few more weeks went by and I finally got her on the phone. Then, a couple more weeks went by and I saw a test version of the site. Finally, she went into my cPanel, changed the existing theme to the default WP template, Big Blue, and left it in Maintenance Mode. Several weeks later, her phone is disconnected, she still isn’t responding to my emails and I’m left assuming that nothing is going to come of the money that I paid her.

What have I learned from this experience?

While I was waiting on her to help me build my website, I started some blogs on Blogger, began experimenting with WordPress and built this blog on Blogging Wire. I attended my first WordCamp. I started to learn a lot about SEO tactics and web content by writing for more sites. Everything I thought I needed her for I was doing for myself.

Whether she intended to scam me or it just happened, I am very disappointed with Flippa Chick or Yolanda or whatever her name is but had I been patient in the beginning and allowed myself the time to learn what I needed to know before jumping head first into it, I would have saved myself cash and frustration.

Image courtesy of Refracted Moments, flickr
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Are You Ready to Take that Risk?

I started freelancing when I was in a rut – jobless in a broken economy, struggling to get on my feet. Now, that I have a full-time position, I’m finding myself wishing that I knew then what I know now about making money online.

The irony is, now that I have a full-time gig, I’d love to freelance. There’s only one problem – my freelancing wages don’t hold a candle to my regular employment. At least, not yet.

Cost-Benefit Analysis, Return-on-Investment, and Other Sticky Business

When I play with the calculations to justify pursuing freelancing fulltime, I run through several figures – starting with how much I need to make to pay my bills.

Multiply my rent by 4.
Add to that number a quarter of the amount of my major bills, e.g. car payment, credit cards, student loans.

What does that equal? A rough estimate (before taxes) of how much money I need to make in order to be solvent, build savings and live comfortably.

Next, in order to normalize for taxes, I fold in my tax burden. Let’s say 40 percent, just for argument’s sake.

So, for example, if my rent is $750 and I pay out $1200 per month in other bills, I would need to generate a net income of at least $3,300 per month to live comfortably as a freelancer. This means that I would probably have to gross approximately $4620 per month.

Setting an Hourly Goal

As an employee, I know that I can count on making a certain amount of money every hour or week. As a freelancer, my income varies from day to day significantly.

To make sense of setting an income goal, I begin by dividing the gross income goal by 160, the number of work hours in an average month.

If I’ve estimated $4620 as the goal for gross income, I need to average $29 per hour working online in order to really make a living.

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Your Freelance Earnings Versus Your Fulltime Wages

Now that I have an hourly number, I, it’s time to compare it to what I make an hour at my day job. Easy enough – there are only 3 outcomes.

1. My fulltime salary is much higher than my estimated income as a freelance writer.
2. My fulltime salary is about the same as my estimated income as a freelance writer.
3. My fulltime salary is lower than my estimated income as a freelance writer.

For scenarios 1 and 3, my decision making is essentially the same, baring some overriding factor – remain a part-time freelancer and build a sustainable income. Why with such drastically different scenarios would I say that?

Glad you asked – because my calculations are based on what I need to live on. If my fulltime income is less than that number, I would not be financially stable enough to trust that I could afford to keep the lights on.

Scenario 2 (at least in my own, special brand of logic) is where I want to be if I’m going to jump off the ledge as a fulltime, work at home freelance writer.

Planning Income Streams

Once I have an hourly goal in mind, I plan out exactly what I will do to generate that money.

For example, in my case, I know that I can average about $25 per hour just writing articles for Demand Studios. How? I simulated several 8-hour workdays just writing for DS and averaged the income generated from those experiments.

A note of caution in planning out freelance income: remember to consider how inconsistent a freelancer’s paycheck really is.

It's Not a Living. It's Peanuts.

Making Decisions

I would love to freelance fulltime. However, after considering the options, the ROI doesn’t seem to pay off when I compare the potential earnings to my current wages.

Why? Going back to the numbers, if all I do is write for DS averaging $25 per hour, after taxes I would really only be making $15 per hour. This would be great if I were fresh out of college, a stay-at-home mom or a starving artist, but not compared to what I make inside the corporate box.

On the other hand, if I were out of work all together, that $15 per hour might seem a bit more attractive to me as a springboard into steady income online.

Refining the Plan

Alas, because of my income gap, I am not ready to be a fulltime writer online, for the moment. A decision to stay in the working world does not signal defeat – it’s just time to refine the plan.

What do I need to do? Develop a consistent means of freelancing income to make up the difference.

And my first step in making that happen? Residual and passive income. More on that in future posts…
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How Does Xomba Work?

Users post either short, 150 word articles called Xombytes or, even shorter, 50-word Xomblurbs promoting a link or website.

Each post is monetized with Google Adsense advertisements. Half of the advertisements on the posts belong to the user, the other half belong to Xomba. In short, if someone clicks on your ad, you get paid to your Adsense account.

Xomba also offers a referral program that pays the referrer 10 percent of the earnings raised from posts added to the site by new users. These earnings come from Xomba’s cut.

The Downside with Xomba – The Pay

I’ve only been posting on Xomba for a little more than a week now. At this point, I have 15 Xomblurbs (the super-short social bookmarks) and 4 Xombytes (the longer posts). Additionally, I have had several posts listed on the front page of Xomba’s Writing Tips and Tricks page. And, how much have I earned? Nada. Nothing, Zilch. Zero.

While I’m sure that the site admin would tell me that I need to give Xomba more time and effort to yield results, I don’t agree. When it comes to residual pay sites, in gauging a new opportunity, I find that the following simple approach very insightful: Add 3 or 4 posts and wait a week. Once I see how the site performs in terms of traffic and revenue, I compare it to past experiences.

I am reasonable, and I do acknowledge that it does take time to build residual earnings with any website, but in my first week, with that much exposure and that much content, I would expect to see something that makes sense to the traffic.

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Technical Difficulties A-Plenty

Since signing on with the site, I’ve noticed quite a number of mistakes and run-time errors that leave me a bit concerned. For example the number of “reads” that my articles generate never matches up between what Xomba says and what my AdSense account details.

Additionally, there have been times when I’ve visited the site’s main page and was unable to navigate past it.

A Bright Spot

Despite the lack of pay, I do have to say that Xomba has been an effective promotion tool. Xomba has referred several visitors to both The Freelance Experience and several of my articles on Suite101.

In terms of a place to house backlinks, I feel that Xomba has been a good investment. As new as The Freelance Experience is, I’ve only been able to develop backlinks on 3 sites, Xomba, myLot and BlogEngage, and in the first 5 days that this blog was live, I found it showing up in the first 5 Google search results consistently with short-tailed search terms.

My Plans for Xomba

In the short-term, I’m going to give Xomba a month before I make a real judgment on its pay potential. On the other hand, it’s pushing a decent amount of content to my pieces, both on The Freelance Experience and on other websites.

Over the next month, I’ll continue to index each of my blog posts and articles with Xomba and track each one with Google AdSense channels, link by link. Next month I’ll publish my results on the blog and reevaluate steps forward.

What’s your 2 cents on Xomba? If you have any experiences with Xomba, we’d love to hear them by way of the comment box!

Photo courtesy of Image*After

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How Does Suite101 Work?

It’s fairly simple. Writers publish articles on their topics of choice. Once published, the section editors peruse the articles to ensure that they meet Suite’s quality standards. Articles not making the cut are flagged for edits or disabled.

Unlike sites like Bukisa or Associated Content that work on page views, success on Suite101 relies heavily on AdSense conversion. The more a writer’s content performs, the more he gets paid.

Why Do Freelancers Write for Suite101?

Suite101 offers skilled writers a unique opportunity to publish quality content and earn cash within a supportive and professional community. Because the editorial standards are high, many writers feel that working with Suite rubs off on their reputations.

Other writers also use Suite to strengthen their credentials. Like some other websites, Suite has a couple of tiers for their writers, “Contributing Writers” and “Feature Writers.” FWs on Suite enjoy a higher revenue share contribution, site credentials, a blog on the site and priority placement of their articles.

Also, many freelance writers make decent pay with Suite despite its revenue share model. The key here, as with any website offering residuals for pay, is quantity. The more articles you have on the site, the higher the page views, the higher the probability that someone will click on an AdSense advertisement while reading your articles.

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What’s the Downside?

Revenue share does not pay in the short-term. If you’re looking to make a check quickly or if you’re less than adept at SEO, you won’t be happy writing for the site.

Also, one of the most common complaints of the site is the contract which requires writers to give Suite first-time electronic rights for one year following publication and obligates Contributing Writers to publish at least 10 articles with the site every 3 months in order to remain active.

Another not-so-pleasant part of writing with Suite101 is the amount of time that it takes to craft an article to publish on the site. Because it’s based on a revenue share model, the cost-benefit ratio of the time investment to the financial return does not always seem to make sense. Between the very strict editorial guidelines, finding the obligatory photo and working within their format, it takes much longer to write a Suite article than it does to write an article for Bukisa or AC.

What Do I Think of Suite101?

I’m fairly new to Suite and to passive income opportunities in general, but with what I’ve seen, I plan continue to write for the site for at least the next 3-6 months to see how it develops.

The negative side of what I’ve experienced with Suite so far:

• Sometimes I find myself frustrated with the editorial guidelines.
• I don’t particularly like the idea of not having the right to redistribute the content.
• I hate not having the power to remove content that I’ve added to Suite101
  At times, I question the return on investment for the amount of effort.

The positive side of my experience with Suite so far:

• My articles are getting great traffic with many of them showing up in the first 5 results on Google searches for a variety of keyword combinations
• My earnings are still small but building faster than they are most other revenue share sites that I write on, second only to eHow.
• The support from the editorial staff and other Suite writers has been phenomenal!

Going forward, putting the editorial support to my advantage, I plan to utilize Suite101 more to house a portfolio of pieces more relevant to my career than to rely on for passive income. As one of the few sites where I publish content under my real name, Suite offers the kind of reputation that I can use to build my professional name.

I’ll keep you posted on my experience with Suite101 as it unfolds. In the meantime, if you work with Suite, I’d love to hear about your experiences by way of the comment box!

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It seems so glamorous, freelancing. The power, the allure, the joy of being self-employed, boss-less and free of the corporate box draws many amateur writers to the keyboard in the hopes of making it big.

Unfortunately, the harsh reality is that not everyone makes it. Who does? Those who employ strategies that highlight their skills and talent.

Successful Writers Have Talent (Duh!)

As in any business, there’s a place for the low-end provider (i.e. untalented, sloppy trash) and another for the high-end provider (i.e. high-quality, polished, professional, attractive work). Low-end product means low-end pay. For someone sitting in China or India, low pay by American standards is not a problem. Thus, low-quality competition from these countries will always compete better than low-end competition arising from the States.

If you don’t have a talent for writing, and you’re facing high-end competition, redefine your career goals.

Profitable Freelancers Have Diverse Income Streams

Never put your eggs in one basket, or so the cliché goes. If you’re counting on 1, 2, or even 3 websites or marketplaces to deliver your bread and butter, it’s time to reach out and expand your portfolio.

No one income source should be more than 15-20 percent of your income, maximum. If you are only working with 4 to 6 sources of income, make sure that you have a couple of aces in your pocket just in case you wake up and suddenly 20 percent of your check is gone.

What Writer Does Not Have OCD?

Most successful writers I know are absolutely obsessive. So, intently focused on getting to the keyboard, our lives are in disarray – pizza boxes stacked on ashtrays next to last week’s mail. We navigate through our apartments dodging boxes left unpacked for months, hopping over laundry strewn across the floor. Why? Because, the keyboard is waiting.

It takes such an enormous amount of time to push out quality work that there’s not much time for anything else. In order to do well writing online, with even the high-end work paying little more than $0.04 per word, quantity is king. The only way you get on top of the number of articles that you need to make a living is by squeezing every bit of time you can out of the day.

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Making It Online Is All About Patience

I don’t know too many high-strung, ego-heavy writers without people skills that actually make a living writing.

We all experience customers and editors who push what feels like unrealistic or unacceptable demands. We all want to get paid. We all want to see instant appreciation for the quality of our work.

While the internet seems like the perfect place for instant gratification and success, for someone making a living with it, it’s a much slower animal.

Many income streams available to writers working online are based on revenue share models, meaning that instead of being paid upfront or by assignment for a particular piece, the writer is paid over the course of time depending on how well the article performs. Many content marketplaces and writing sites have vastly different editorial guidelines and expectations.

Freelance Writers Without an Eye for Business Do Not Get Paid

Being a successful freelance writer online is more than just living the dreamy life of a self-obsessed artist. If you don’t have an eye for business, if you don’t smell out money and implement strategies that put it in your pocket, you’ll never make it.

Keeping on top of the market and the ever changing trends is one of the most important parts of the job. If you aren’t ready to change with the market, you will be left behind. I found this in the early days of my introduction to the online world of writing. Stuck in a more academic model of writing, I was clueless as to what good online content really was. I tried applying my classic view of writing to an evolving world that prizes search ranking over quality and found myself failing more often than not.

Another important part of the whole puzzle is understanding your worth and developing a business model and brand around it. This topic could be a whole book in and of itself, but if you aren’t setting an appropriate income goal for yourself and leveraging your brand/reputation against it, you won‘t make enough money to survive.

If you’ve gotten to the end of this really long, opinionated blog post and have your own perspective on what spells success, please share your 2 cents by way of the comment box!

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What's Your Work Worth? Set the Price at Constant Content.

Perhaps one of the greatest places online for quality writers to peddle their craft, Constant Content offers a platform for skillful content writers to list their work for direct sale to customers. Providing editorial guidance and support in promotion and sales while enabling freelance writers to maintain freedom in the direction of their work, CC is unique among content marketplaces.

How Does Constant Content Work?

Writers working through CC submit content on either the topics that they choose or those requested by potential customers. All submissions pass through an editorial review, somewhat rigorous for the online content writing world. Once cleared by the editor, the work is posted for sale or forwarded to the customer that requested it. All sales are mediated by CC itself, paying out monthly to writers who earned more than $5.

Perhaps one of the most attractive features of CC is that writers are given the opportunity to set the price of their work in addition to the rights licenses for sale for each piece posted to the site. CC also offers a “Best Offer” feature which allows the writer to set a price but negotiate with potential clients who may be interested in the piece but squeamish on the cost.

Why Do Freelance Writers Work on Constant Content?

Having control over price point for a content writer is a rarity online. While there’s no guarantee that a piece will sell, freelancers who like the open structure and write good content do very well.

For talented freelance writers, CC is also appealing because of its high standards for submissions. If you’re looking to brand yourself as a professional, being associated with a high quality content marketplace is a great way to get started. Not to mention, working with a professional editor who is genuinely invested in making your submission as polished and sellable as possible is a pleasure despite the occasional frustration over disagreements in style.

In addition to the pricing structure and the reputation points, CC draws a core of very supportive, out-going writers. You will find a plethora of useful information and feedback in the CC writer forums.

What’s the Downside?

Unfortunately, unlike many other sites, there’s no guarantee that your work put money in your pocket. At Demand Studios, you know what you’re getting paid per article. At Bukisa, you know that you need 1000 page views to make $3.50. At Constant Content, your article can be listed for a year and never move. This is a definite downer for those really relying on a turnaround on the time investment in creating a submission.

Another policy that leads some writers to complain about CC is the commission that they claim on the content sold through the site. While not unreasonable, at 35 percent of the sale price, CC’s commission rate is high.

Also, for new freelancers, CC may not be the best place to start. The guidelines can be intense. The competition in terms of quality writers is high. The return on investment is sometimes slower than it is on other sites.

What Do I Think of Constant Content?

Personally, I love CC. I chanced upon the site last year when I was just starting out online.

I had oodles of experience in print media and academia, but very little understanding of how online content should be crafted. CC helped me to transition into the world of online writing, but when I look back on my early submissions to CC, it’s almost embarrassing how bad a content writer I was.

Despite mediocre content and avoiding public requests, I made pretty decent money in my first month on the site. Selling at least one license on approximately 40 percent of my submissions, I pocketed more per article on CC than I have on any other site.

I also really liked having relevant and useful information and feedback at my fingertips. Whenever I had a question or wanted to connect with other writers, the forums were always welcoming and helpful.

Unfortunately, I had to take a break from Constant Content in need of steadier pay. Now that I understand how to craft quality web content, I plan on returning to the site posting articles more frequently.

Image courtesy of borman818 under the Creative Commons license, Attribution 2.0 Generic

Constant Content Homepage[ad#Google Adsense-2]

Giving each other a hand...

Until recently I relied primarily on organic traffic to my articles and blogs, that is traffic generated directly by keyword searches in search engines. Seems silly, maybe a bit antiquated, but comfortable for a writer more concerned about turning out content than earning page views.

That all changed once I started posting to BlogEngage.

What’s BlogEngage, you ask?

Essentially, BE is a website focused on blog promotion that offers users an opportunity to post links to and summaries of blog posts to a community of voting bloggers. The more votes a post receives, the closer it comes to the front page of the website.

In an effort to maintain the integrity of the community and eliminate potential spammers, BlogEngage just announced that it is going invitation only.

There are 2 ways to get an invitation:

• Get invited by a member
• Get involved in the BlogEngage forums and request membership

What’s great about BlogEngage?

The site offers more than just a place to promote your blog. BE is run by a community of supportive and helpful bloggers. The openness and warmth on BE is absolutely refreshing.

Oh, and did I mention the possible ad revenue? When you add a blog post to the directory, if your account is set up correctly, you receive a portion of the ad space when visitors chance upon your post.

What’s my experience with BlogEngage?

In terms of business, my blogs are getting better traffic and quality comments. On the personal side, the support and openness of the community of quality bloggers that actively participate on BE has been invaluable.

While I haven’t seen any appreciable income from the directory listings on the BE website itself, I have to admit that I’ve been slacking in my submissions to the site. This will definitely change now that I have BE buttons on this blog!

Additionally, the site admin, Brian, is always coming up with new ways to offer monetization opportunities for users. In addition to offering the ad space on the BE directory listings, the BE Forums share ad revenue and the BE spin-off, BloggingWire, offers free WordPress blogs that have the look and feel of self-hosted WP installations. Any ads set up through blogs hosted on BW go to the blogger, not the site. (How’s that for alphabet soup!)

It  may seem a bit frustrating trying to jump through registration hoops to join the site, but gaining access to this community of bloggers is well worth it.

If you haven’t heard of BlogEngage, get out from under that rock! If you’re looking to start a new blog, step away from Blogger and WordPress.com and give BloggingWire a try.

Either way, you won’t be disappointed!

Photo courtesy of Wildfeuer

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While it won’t get you rich, myLot offers users an opportunity to make a modest return on participating in online forums or discussions. The more engaging the discussion, the more you earn.

In terms of promotion, myLot provides a great opportunity to promote your website or links directly to users in your target audience. The site also pays for posting public domain photos and referring new users.

What’s the Downside?

Unfortunately, some of the forums on myLot are a little spammy. The site is full of all kinds of people, from soccer moms chatting about recipes to politicos debating the merits of the Obama administration to people in India pushing PTC referral links. Sometimes the conversations are interesting, sometimes they’re frustrating, and sometimes, unfortunately, they‘re spam. The simple way around the junk is really just avoiding discussions around earning money.

Also, if you’re not careful, you might find yourself wasting too much time doing little more than surfing around, which earns you nothing. While I have seen some decent returns on my efforts on myLot, the earnings really don’t justify posting more than a handful of replies or discussions per day.

What Do I Think?

Apart from the extra income and the promotion potential, myLot is very social which provides a welcome break when all you’ve seen all day are your own words on the screen.

I’m not so impressed with the payment model. Unless I misunderstand their setup, while you do get paid for useful and relevant posts, it’s an instant shot of a few pennies and the site continues to turn around ad revenue from the post indefinitely.

Like I said, myLot won’t make you rich, but it is a nice distraction.

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How Does Elance Work?

Providers bid on jobs listed by clients by submitting detailed proposals. Most jobs are paid through an escrow service where Elance holds the funds pending the completion of the job.

Why Do Freelancers Work with Elance?

Freelance marketplaces like Elance are appealing because it gives a writer, for example, an opportunity to connect directly with prospective clients, which is a rarity for those of us pushing content on the web.

Another part of Elance’s appeal, for both providers and clients, is the feedback and support that the site encourages. When a job is complete, both the freelancer and the client are able to provide clear and honest feedback that cannot be deleted, meaning that clients who don’t pay and freelancers who can’t provide as promised get terrible reputations and find it difficult to do business.

Additionally, because Elance offers an escrow program, there is little doubt that you’re going to get paid for your work. Also, if there is a dispute, the website intervenes and mediates a resolution. For many of us who have gone the freelancing route alone, this is a big plus.

What’s the Downside?

The biggest downside to sites like Elance is the pay. While you do set your own price to an extent by bidding, for most jobs, including the writing and translation jobs, you’re bidding against people willing to work on a wage well below American standards. Oftentimes you find yourself facing a mass of open jobs where the client either has unrealistic expectations, demanding high-quality, time-intensive work for a pittance or where competing providers have stepped in with bids well below what you are able to provide.

It’s also very easy to lose a lot of time in setting up your profile and chasing down jobs. Between the skill tests and the proposals, you might waste 2-3 hours not getting paid.

What Do I Think of Elance?

My experience with Elance has been mixed. I’ve actually made a lot more money on Elance than through any other marketplace or website on the web, but it takes a lot of time and effort to keep up with it. With working full-time, I just don’t have the extra time to stay on top of the time-intensive projects or the bidding process.

I also found that while I liked the escrow system, that Elance takes a fairly large chunk of my earnings in commissions, fees and monthly membership. Not to mention, actually getting the pay out from Elance’s system to my PayPal or personal accounts was not the easiest process.

When I look at my earnings and the projects that I completed through the site, I would estimate that I spent the equivalent of 60 hours on all work completed through the site and only earned about $800. At the time, this was better than being completely unemployed, but it is not a livable wage in the long term.

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How Does Bukisa Work?

You create an account, choose your content and publish choosing one of three options for rights. The site accepts not only articles but also video and slide shows.

Pay is determined per “qualified” page view against the “Bukisa Index”, which is essentially the amount of money the website is willing to pay per 1000 page views. This number changes from month to month. In January 2010, the Bukisa Index was $3.49.

Why Do Writers Publish on Bukisa?

It’s easy. The site has very little oversight on the quality or ethical nature of the content. There are no real editorial guidelines and the minimum word count for any submission is only 250 words.

Bukisa also allows duplicate content, work that has been posted on other websites. This allows writers who have previously  published on sites like Associated Content, who have retained their rights, to republish the same work in another venue and make revenue from an extra source.

Another interesting feature of the rights and licensing options on Bukisa is that the publisher can choose to make their content available to others on the web to republish. Some writers take advantage of this opportunity to embed links or information about their own products and services within the content.

Bukisa also offers a useful statistics tool for the content published on the site that allows you to see and analyze where your page views are coming from, which search engine queries and keywords brought visitors to your content and how much each work is earning.

Another bonus that Bukisa offers is their referral program. Unlike AC and Suite101, if you refer new members to the site, you receive a bonus for the page views that the new member drives to Bukisa.

What’s the Downside?

It’s too easy. There is so little oversight on Bukisa that low quality content and plagiarized work is all over the site.

Additionally, Bukisa does not pull anywhere near the amount of traffic that many other revenue share sites do. While Bukisa promises more money per page view, the traffic generating those page views is much less than its direct competition, Associated Content.

What Do I Think of Bukisa?

I use Bukisa primarily to see how my content responds. Search engine traffic is very hard to track on many other sites, but Bukisa makes that information very readily available which makes it easier for me to hone into what content to post to other websites.

I also use Bukisa as a repository for content that I’ve either already sold or posted to other sites or for content that I want to distribute. While Bukisa is not a big earner, every penny counts in my book.

Because Bukisa is loaded with stolen content and low-quality work, I don’t use my real name or any content previously published under my real name when working with that site.

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