Spotlight on business The Smart Passive Income Blog

Pat Flynn

As part of my series on Spotlight on Business, I want to introduce you to Pat Flynn who has built a website called The Smart Passive Income Blog.  His blog is about how he created and developed a niche idea, that earns him a passive income.  By reading his website and emails (subscribe to his mailing list) you learn how to earn a passive income, too. 

I think what is important about Pat's story is how he didn't let opportunity pass him by.  When he came up with his niche idea, he didn't even know if all that time and effort he was putting into it would pay off, but he didn't let it stop him.  He took a chance.  And as you read Pat's story, you will also see, that even if this idea had not worked out, he would have kept trying.    

Examiner:  How long has your blog be on the internet?
 
Pat: My blog has been up and running since October of 2008.
 
Examiner:  How did you come up with the idea for your blog?
 
Pat: After starting a successful online business that lets me live off of passive income, I wanted to give something back and share my experiences so others may be able to have a chance to do the same. I'm not an expert, and I just wanted to show everyone that it doesn't take an expert to be successful online. Anyone who has the drive and the passion can do what I do. 

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Examiner:  Your blog logo is unique.  Did you come up with your own design?
 
Pat:  I hired a graphic designer from to design my website, and he included a logo design as well. I tweaked it a little, so I guess you could say it's a combination of both my and my graphic designer's creativity.
 
Examiner:  Do you know where your business is coming from?   How much of your business do you get from word of mouth?
 
Pat: To clarify, my business comes from a different website that I own, and I write about how I deal with that business on SmartPassiveIncome.com. If you're asking about who buys my products, I know exactly where that business is coming from. About 50% come from organic web searches, and the other 50% come from word of mouth. I know this because I ask all of my customers how they heard about my product. If you're asking about where my traffic for SmartPassiveIncome.com comes from, about 85% comes from word of mouth, the other 15% from organic web searches.
 
Examiner:  You are a very prolific writer.  How much time do you dedicate to your websites and blog?
 
Pat: It's important to have a regular posting schedule on a blog, so I make it a habit to write a brand new post every other day. I average about 2 hours researching and writing each post.

Examiner:  Do you find that your newsletter is as important as your website?

Pat: I don't have a newsletter on SmartPassiveIncome.com yet, but I do on my other website. A newsletter is important because it's a more personal way to connect to your potential customers. Even though most newsletters are sent out in mass, the newsletter gets sent to each individual inbox, and you can even make it more personal by including a script that makes sure the subscriber's name is presented in the body. I do plan to have a newsletter on SmartPassiveIncome.com, because it's a big step in creating possibly customer relations in your business. However, it's not good to create a newsletter too early, because only quality, helpful newsletter are effective. It will take me a little bit of time to ensure my particular newsletter will be worthy, helpful, and effective.
 
Examiner:  Have you seen your website grow continuously every month or if there an ebb and flow?  Have you noticed any difference with the recession?

Pat and his new wife in Las Vegas

Pat: It's natural for the traffic of a website to grow over time, especially when it's starting out. My website is still relatively new, so it's going to grow each month just because more and more people are discovering it. I believe the recession contributes to my added growth, since I write about making money online (after being laid off), and I know a lot of people in the world are in a similar position and would love to start their own businesses online too.
 
Examiner:  Do you advertise your business?  
 
Pat: Currently, I do not spend any money on advertisements. I think the best advertising is word of mouth, because it's not coming from the business itself, but from someone who recommends it, which is much more powerful. This holds true for both websites that I run, for increasing customers for my products, and increasing traffic and readership on my blog. Don't get me wrong - paying for advertisements is a great way to reach customers, especially when you can use platforms like MySpace and Facebook to target specific customer types (age, gender, ethnicities, etc.). I may get into paying for ads in the future with some of the new projects and online ventures I have on deck in the near future.
 
Examiner:  Do you put ads on your blog from Amazon, Commission Junction or Adsense?  Are you collecting a revenue from them?  If not, why have you decided not to?

Pat:  I do use Adsense, and I'm doing fairly well with it. In February, I grossed about $1800.00, and that's entirely passive income. I believe it's a powerful tool that helps not only the website publisher earn extra cash, but it helps the website readers as well (and the advertisers too). Everybody wins. Since the ads are generated based on the content of the website, I find the ads are usually helpful to the readers and not an eye-sore on the website.
 
Examiner:  What was your first passive income?  Think back if you have to.
 
Pat: I remember when I was in middle school, it was the first time I saw $0.05 deposited into my savings account. Yes, it was only $0.05, but it was a nickel for doing nothing, which was an awesome feeling.
 
Examiner:  What has been your best money-maker, so far, and why do you think it was?
 
Pat: I sell an eBook Study Guide, as well as an audio version of the guide that has been doing really well lately. In February, I grossed over $20k while only working about 10 hours of actual work. It was great because I was planning a wedding, went on my honeymoon, and moved into a new apartment all while still earning the most money I've ever made in my entire life in one month. Study guides are valuable tools because people will pay good money for good help with whatever exams or classes they need to take to improve their careers and add to their resume.
 
Examiner:  What is your plans for the future for Smart Passive Income?
 
Pat: I plan to do a podcast sometime in the distant future, but for now, I plan to continue documenting my online business journey through text on my blog. Currently, SmartPassiveIncome.com is not monetized, but I plan to do this soon and show my readers exactly how this is accomplished.

Examiner:  Do you plan to branch out with other creative ideas? If so, can you give us a hint?
 
Pat: I always have new ideas flowing in my brain, and I have a couple projects on deck in the near future. Right now, my friend and I started a small business creating iPhone Applications and I'll be talking more about that on my website too. Also, I plan to create a couple new study guides for other niches as well.
 
Examiner:  What is the best advice that you have received and who did it come from?
 
Pat: I'm not sure who stated this, but it's a saying that I live by what motivates me and helps me get through the tough times: "The harder you work, the luckier you become."
 
Examiner:  What words of advice and thoughts of encouragement would you like to pass on to others?
 
Pat: I think it's important to know that you will not succeed unless you give yourself a chance to. If you just sit there, dream, hope and never take action, then nothing will happen - guaranteed. If you try something and fail, don't worry - that's a good thing. It's good because you tried something and gave it a shot. After failing, now it's time to try something else and use what you learned in your failure to do your best to make sure your next attempt doesn't.