Draft your first five posts. I like to have a few posts ready at launch time for a new blog. Do not write a generic "welcome to my blog" post to kick it off. Blah. What does that really offer? Nothing. Put up a temporary post if the site is up pre-launch if you want to build some anticipation, but if you're ready for launch now then get right down to business.
So as you can see from the above example, using the concept of residual income, although Company X is reporting a profit on its income statement, once its cost of equity is included in relation to its return to shareholders, it is actually economically unprofitable based on the given level of risk. This finding is the primary driver behind the use of the residual income method. A scenario where a company is profitable on an accounting basis, it may still not be a profitable venture from a shareholder's perspective if it cannot generate residual income.
You can start a blog with a free theme technically…you do this through WordPress after you install it with one click on Bluehost. This is an important distinction…..the free themes aren’t available through Bluehost, but rather WordPress itself. So you will sign up for webhosting with Bluehost, install WordPress, then search within WordPress for free themes.
What if the manager of the Idaho investment center wants to invest $100,000 in new equipment that will generate a return of $16,000 per year? This would provide residual income of $4,000, which is the amount by which it exceeds the minimum 12% rate of return threshold. This would be acceptable to management, since the focus is on generating an incremental amount of cash.
It takes a special kind of person to wear that many hats, and in my opinion, the current positioning in the information marketing industry of “anyone can do this” is just nonsense. Everyone I know who has been successful creating information products is a driven, uber smart entrepreneur. If you’re one of those people, you might consider it. If not, I would look elsewhere.
In a world in which most of the population of countries in which selling photos is a real thing, almost everyone has a smartphone with a decent enough camera. A little learning of the principles of photography, some knowledge of how light works and how shadows are made, a couple good landscapes and you will be set to become a semi-pro photographer.
Blogging is not passive. For various reasons, we have not kept up with our site. Traffic has dropped way more than 50%. It can be very lucrative as you know, but it does need a certain minimum level of effort to remain so, probably in the 20-hour/wk range. Now, all things considered, that probably isn’t that bad of a trade-off, but a trade-off nonetheless.
The job of a successful business is simple: it helps its customer solve a problem. Your customer has a need—their problem—and with your business, you’re offering them the solution. Sometimes the solution is a tool, a product they can buy; other times it’s a methodology you teach, a service you provide. Either way, your goal is clear: you need to help your customer solve their problem.
As you may have noticed, the residual income valuation formula is very similar to a multistage dividend discount model, substituting future dividend payments for future residual earnings. Using the same basic principles as a dividend discount model to calculate future residual earnings, we can derive an intrinsic value for a firm's stock. In contrast to the DCF approach which uses the weighted average cost of capital for the discount rate, the appropriate rate for the residual income strategy is the cost of equity. (Learn the strengths and weaknesses of passive and active management when trying to uncover the overall market's worth. Check out Strategies For Determining The Market's True Worth.)
Tied into this point, I like how Scott discourages big dreaming from the point of view that when you try to solve too big a problem, you’ll normally fail since you don’t have the resources to tackle it – eg don’t reinvent say ecommerce platforms with complex software, instead create an online video-driven course on how to build online stores using WordPress (as an example!).