Somewhat Passive Income – Blogging
Blogging isn’t very passive for me at this point. I spend 20-30 hours per week writing, networking, responding to comments, and maintaining Retire by 40. Someday, I’d like to cut it down to around 10 hours per week. That goal is many years off, though. I enjoy blogging so it’s a good way to spend time in early retirement. The blog income is a huge bonus. When I started Retire by 40 in 2010, my goal was to generate about $500/month. After 8 years, the blog income has grown significantly. I’m very grateful for your support. Thank you!
You can see all of our passive income on the Passive Income page. I will update these passive income pages monthly.
2018 YTD Blog Income: $60,992
2018 is going really well so far.
- Q1 is usually the best quarter for blog income and we did very well.
- Q2 was good for us.
- Summer is usually a lot slower because everyone is going on vacation. The traffic decreased a bit, but not a huge amount. The income dropped a bit too, but that’s expected.
- Q4 is slower than I expected.
Here is how I generated online income so far in 2018.
- Banner ads: $25,859. These are the banner ads you see on Retire by 40. I hope to make about $2,000 per month with these ads. This is going well so far in 2018.
- Affiliates: $51,082. These are referral fees from affiliate links. If a reader signs up for a service through our affiliate links, then we may receive a referral fee. Q1 is usually the best quarter for affiliate income. This income is much better than usual this year.
- Private ads: $1,200. Sometimes we worked with a company to advertise their products. I rarely do this anymore. This income will be very small in 2018.
- Business: -$3,629. Business equipment, internet, hosting, email service, CDN, cell phone, etc…
- Travel and meals: -$1,399
- Employee: -$1,274. This year, we hired our first part-time employee. It’s RB40Jr! I’ll pay him $25 for each blog post and $4 per image on social media. This income will go straight to his Roth IRA. I’m excited to see how this experiment will turn out.
- Estimated tax: $10,800 I’m sending the IRS about $1,000/month. This should be enough to cover our tax liability.
Here is the 2018 graph of the revenue, expense, and net income.
November – It was a slow month for us. Our affiliate income slowed way down with the holiday season. I don’t think December will be much better. No worries. I’ll just relax and start over next year. Happy holidays!
Incredibly, Retire by 40 generated over $350,000 in revenue since I started blogging in 2010. That’s much more than I ever expected. It’s pretty crazy, right?
2017 was my best year yet and I made $65,388. You can see the detail here – 2017 Blog Income Wrap Up. Actually, it’s about $55,500 after taxes. 2017 was the first time that I made enough from blogging to have to pay extra taxes. 2018 is looking really good too. It’s been a great year here. Thank you for your support!
Starting a blog is a great way to build your brand and generate some extra income. You can see my tutorial – How to Start A Blog and Why You Should. Check it out if you’re thinking about blogging.
Joe left his engineering career behind to become a stay-at-home dad/blogger at 38. Today, he blogs about financial independence, early retirement, investing, and living a frugal lifestyle. See how he generates Passive Income here.
Joe highly recommends Personal Capital for DIY investors. He logs on to Personal Capital almost daily to check his cash flow and net worth. They have many useful tools that will help DIY investors analyze their portfolio and plan for retirement.