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According to Central Bank (BC) in 2007 reached U.S. $ 2.8 billion the amount of money sent to families in Brazil by Brazilians who live in other countries. Of this total, more than $ 1.3 billion comes from the United States, virtually the same amount established by BC in 1997, the total values returned.

That money, which is usually called a referral, comes from Brazilian people  who have left the country to seek better financial conditions and also work to help families who stayed in Brazil.

In addition to the data from BC, the numbers established by the Multilateral Investment Fund (MIF) to the Inter-American Development Bank (IDB) also show that United States is the main source of remittances: 42% of total, according to the IDB.

However, the IDB has established a total remitted higher in 2007: $ 7.1 billion. The second main source is Japan (34%), followed by the European Union (16%).

Data from MIF / IDB show that most of the people receiving these money in Brazil is concentrated in the SouthEast (58%) and South (39%). In general are women (65%), with low education (only 21% have higher education) and low-income classes.

Because of this profile, the specialist from IDB in Brasilia, Luciano Schweizer points out that these remittances are a very important social role in the country “Generally these people who emigrate usually makes 5 times more money than they would make in Brazil,” he says.

Among the major investments made with those resources in Brazil, is the purchase of property,  the improvement in the level of education and access to health services. “And in some cases, such as the dekasseguis, (Brazilians) that go to Japan and to Portugal, a large proportion of those who return to Brazil use the money to open and run a company,” says Schweizer.

Moreover, such values also create an impact on the financial market here. As Brazil has one of the highest levels of the bank remittance, between 60% and 70%, “obviously this money arrives and circulates within the formal financial system, and this is a work that the bank (IDB) has developed to increase the formality of such shipments because it lets people manage a history in the financial system and have access to other services offered in this system, “he says.

In the beginning of the year I was visiting my family in Brazil after four an half years living in USA. When I was talking to my uncle he told me a story he heard in an entrepreneur event he attended. This is the story:

Paul went to have breakfast at this place called “Sol e Mar”, he was sat at the balcony and he started to pay attention at what the manager was doing. For everyone that order a sandwich the manager asked the person if they want an egg on it.

When Paul was ready to leave he called the manager and asked him a question, Why do you ask everyone if they want an egg on the sandwich?. Then the manager answered, since I started asking this question the sales increased an average of R$ 24 per day.

Paul observed that the place was full of people all the time and then asked another question. If the place is full of people all the time does it make any difference for the business? Then the manager answered, R$ 24 per day is equal to R$ 720 per month, R$ 8,640 per year and around R$ 45,000 in 5 years. For sure the profit on the eggs are 200%, so if the eggs for the day cost R$8 the profit will be R$ 16 and in 5 years it’ll result in a profit of R$ 30,000 for the company just because I ask this simple question.

This story shows us what is necessary to make something viable to the business. At first Paul thought that an egg wouldn’t make a difference for the business because the egg was too meaningless based on the total of sales, but he learned that in the long run it would make a huge impact in the business profitability.

Some people do make money very fast, but the majority takes a long time to make it happen. Stick to your idea and work hard to make your dream come true.

Brazil is the World’s leading Country in Bio Fuels! Over 30 years ago in order to find a renewable and greener source of fuel, the Brazilian Government started the “Ethanol Boom” and has been successful ever since; for today, 8 out of 10 cars manufactured in Brazil have the so called “Flex Power” engines. These engines can run both in Alcohol Ethanol as well as with gasoline in any blend

Let us dream about a World free of CO2! Let us take part in this Green Revolution that Brazil has started. It’s no longer a dream… It’s reality!!! Well at least in South America! How about the WHOLE WORLD gone green?
Let us make that happen! mother earth will thank us!

source » http://youtube.com/watch?v=sfVVRFa5KDc

The fruit, a small, round, black-purple drupe about 1 inch (25 mm) in diameter, similar in appearance and size to a grape but with less pulp, is produced in branched panicles of 700 to 900 fruits. Two crops of fruit are produced per year. The fruit has a single large seed about 7–10 mm in diameter. The exocarp of the ripe fruits is a deep purple color, or green, depending on the kind of açaí and its maturity. The mesocarp is pulpy and thin, with a consistent thickness of 1 mm or less. It surrounds the voluminous and hard endocarp which contains a seed with a diminutive embryo and abundant endosperm.^{[citation needed]} The seed makes up about 80% of the fruit (Schauss, 2006c).

Harvesting and uses

Stem

Heart of palm, the soft inner growing tip of some palms (Euterpe edulis, Euterpe oleracea, Bactris gasipaes), is often consumed in salads.^{[citation needed]}

Fruit

Serving of açaí juice

The berries are also harvested as food. In a study of three traditional Caboclo populations in the Amazon region of Brazil, açaí palm was described as the most important plant species because the fruit makes up such a major component of diet (up to 42% of the total food intake by weight) and is economically valuable in the region (Murrieta et al., 1999).

The juice and pulp of açaí fruits (Euterpe oleracea) are frequently used in various juice blends, smoothies, sodas, and other beverages. In northern Brazil, açaí (or jussara, which is one of the fruit’s common folk names) is traditionally served in gourds called “cuias” with tapioca and, depending on the local preference, can be consumed either salty or sweet (sugar, rapadura and honey are known to be used in the mix). Açaí has become popular in southern Brazil where it is consumed cold as açaí na tigela (“açaí in the bowl”), mostly mixed with granola – a fad where açai is considered as an energizer. Açaí is also widely consumed in Brazil as an ice cream flavor or juice.

As açaí deteriorates rapidly after harvest, its raw material is generally only available outside the immediate growing region as juice or fruit pulp that has been frozen, dried, or freeze-dried. However, several companies now manufacture juices, other health drinks, and sorbets made from açaí berries, often in combination with other fruits.

Other uses

Apart from the use of its berries as food, the açai palm has other purposes. Leaves may be used for making hats, mats, baskets, brooms and roof thatch for homes, and trunk wood, resistant to pests, for building construction (Silva, 2005).

Comprising 80% of the berry mass, seeds may be ground for livestock food or as a component of organic soil for plants. Planted seeds are used for new palm tree stock which, under the right growing conditions, requires only months to form seedlings, although açaí palm has not been successfully cultivated outside of South America (Schauss, 2006c). Seeds are also used to make a variety of jewelry and souvenirs^{[citation needed]}.

In traditional medical practices, fruit and roots have been used for treating gastrointestinal problems and sap as an astringent^{[citation needed]}. The seeds are a source of polyunsaturated and saturated fatty acids (see below; Plotkin, 1984; Silva, 2005; Schauss et al., 2006a).

Nutritional content

Several early studies done on the nutritional composition of açaí were summarized by Rogez in a 2000 book in Portuguese entitled “Açaí: Preparo, Composição e Melhoramento de Conservação” (Schauss et al. 2006a). Other previous studies dating back to the 1930s and 40s were not always in agreement on nutritional contents.

A recent study using modern procedures and a standardized freeze-dried açaí fruit pulp and skin powder found nutrient analysis results from 100 g (3.5 ounces) of powder to equal 533.9 calories, 52.2 g carbohydrates, 8.1 g protein and 32.5 g total fat. The carbohydrate portion includes 44.2 g of fiber (Schauss et al. 2006a). Having nearly one-third of its mass as dietary fiber, açaí is an exceptional source of this valuable macronutrient: a 100 g serving of the powder would provide all the recommended fiber needs for adults (20-30 g per day).

Açaí is particularly rich in fatty acids, feeling oily to the touch. It contains high levels of the monounsaturated fatty acid oleic acid (56.2% of total fats). It is also rich in palmitic acid (24.1% of total fats, a saturated fat) and the polyunsaturated omega-6 fatty acid linoleic acid (12.5% of total fats). (Schauss et al. 2006a). β-sitosterol (beta-sitosterol), a phytosterol that competes with dietary cholesterol for absorption and so may reduce blood cholesterol levels, is also unusually rich (78-91% of total sterols) (Lubrano, 1994; Schauss 2006a).

A later study found vitamin C content was negligible, calcium levels of 260 mg, iron to be 4.4 mg and vitamin A equal to 1002 IU per 100 g of dry weight (Schauss et al. 2006a). A recent study found 19 amino acids in pulp and skin powder, with especially high contents of aspartic acid and glutamic acid. The amino acid content totalled 7.59% of the total dry weight (Schauss et al. 2006a).

Due to the large amount of waste that accumulates during the harvesting of the hearts of palm, sawdust from the left-over trunks of the açaí palms have been analyzed for possible uses including energy utilization. The inner layer of the trunk is mineral rich, and is significantly higher in all the minerals that were tested including sodium, potassium, calcium, magnesium, and iron compared to the outer layer of the tree. This inner layer could potentially be used as a source for these minerals. Ash content (often used as an alkaline source for saponification or in plant fertilizers) was also higher in the inner section of the tree. Levels of lignins, cellulose, holocellulose and gross heat production were slightly higher in the outer trunk layers, and cellulose levels were fairly high overall (Dyer, 1996).

Antioxidant phytochemicals

The dense pigmentation of açaí has led to several experimental studies of its anthocyanins, a group of polyphenols that give the deep color to berries, other fruits and vegetables and are high in antioxidant value under active research for potential health benefits[1]. A recent study using a standardized freeze-dried açaí fruit pulp and skin powder found the total anthocyanin levels to be 319 mg per 100 grams (Schauss et al., 2006a). Cyandin 3-glucoside and cyanidin 3-rutinoside are major açaí anthocyanins [2].

Twelve other flavonoid-like compounds were additionally found in the Schauss et al. 2006a study, including homoorientin, orientin, taxifolin deoxyhexose, isovitexin and scoparin, as well as several unknown flavonoids. Proanthocyanidins, another group of polyphenolic compounds high in antioxidant value, totalled 1,289 mg per 100 grams of the freeze-dried pulp/skin powder, with a profile similar to that of blueberries (Schauss et al., 2006a). Resveratrol was additionally found to be present in acai in this study, although at low levels of 1.1 microgram per gram.

A number of studies have measured the antioxidant strength of açaí. Unfortunately, the sources of açaí and preparations (e.g., whole fruit, juice, extract or soluble powder) for reporting the results vary. A recent report using a standardized oxygen radical absorbance capacity or ORAC analysis on a freeze-dried açaí powder found that this powder showed a high antioxidant effect against peroxyl radical (1027 micromol TE/g). This is approximately 10% more than lowbush blueberry or cranberry on a dry weight basis (Wu, 2004). The ORAC value for this freeze-dried powder was significantly higher than when other methods of drying the fruit were tested (Schauss, 2006c). Other powders with ORAC values this high include cinnamon (2675 micromol TE/g), cloves (3144 micromol TE/g), turmeric (2001 micromol TE/g) and dried oregano (1593 micromol TE/g) (Wu, 2004).

The freeze-dried powder also showed very high activity against superoxide, with a SOD assay level of 1614 units/g. Superoxide is thought to be the initial producer of other more potent reactive oxygen species, and thus protection against it is very important as a first line of defense for the body. Antioxidant activity against both peroxynitrite and hydroxyl radicals was also observed, although effects were milder than that seen against peroxyl radical and superoxide. Additionally, antioxidant molecules from the freeze-dried powder were shown to actually enter freshly obtained human neutrophils and inhibit oxidation induced by hydrogen peroxide, even at very low concentrations of the açaí powder including 0.1 part per trillion (Schauss et al., 2006b). A previous report using a total oxygen scavenging capacity assay also found that açaí has extremely high antioxidant effects against peroxyl radical, as well as a high capacity against peroxynitrite, and a moderate capacity against hydroxyl radical when compared with other fruit and vegetable juices[3] .

Only 10% of açaí’s high antioxidant effects could be explained by its anthocyanin content[4], indicating that other polyphenols contribute most of the antioxidant activity. Schauss et al. similarly found that that ratio of the hydrophilic ORAC levels to the total phenolics in the freeze-dried fruit was 50, a higher value than the typical fruit and vegetable ratio of 10^{[citation needed]}.

Schauss et al. (2006b) also utilized the “Total Antioxidant” or TAO assay to differentiate the “fast-acting” (measured at 30 seconds) and “slow-acting” (measured at 30 minutes) antioxidant levels present in freeze-dried powder. Acai was found to have a higher “slow-acting” antioxidant components, suggesting a more sustained antioxidant effect compared to “fast-acting” components.

Antioxidant values of the seeds of the açaí fruit have also been reported (Rodrigues, 2006). Similarly to the berries, the antioxidant capacity of the seeds were strongest against peroxyl radicals, at a concentration in the same order of magnitude as the berries. The seeds had a stronger antioxidant effect than the berries for peroxynitrite and hydroxyl radicals, although still less than its effects against peroxy radical. The results of this study were not linear based on the concentration of the seeds that were used. The authors suggest the future use of the seeds (a by-product of juice making) for antioxidant benefits such as prolonging shelf-life of foods.

Other Research

Açaí, in the form of a specific freeze-dried fruit pulp, was shown to have mild inhibitory effects on cyclooxygenase enzymes COX-1 and COX-2 (Schauss et al., 2006b), both of which have roles in acute and chronic inflammation.

Lower concentrations of the freeze-dried pulp were found to be slightly stimulating to macrophages in vitro. Macrophages are white blood cells that are an important part of the immune system of the body. Also in macrophages, freeze-dried açaí pulp was found to inhibit the production of nitric oxide that had been induced by the potent inflammatory inducer lipopolysaccharide (LPS), which is part of the cell membrane of certain bacteria (Schauss et al. 2006b). This effect increased as the concentration of the açaí increased.

In 2006, a study performed at the University of Florida showed that açaí fractions containing polyphenolics could reduce proliferation of HL-60 leukemia cells in vitro. This was most likely due to increased rapid cell death (apoptosis) as fractions were also found to activate caspase-3 (an enzyme important in apoptosis) which was inversely correlated to cell death. (Pozo-Insfran et al., 2006).

Due to its deep pigmentation, orally-administered açaí has been tested as a contrast agent for magnetic resonance imaging of the gastrointestinal system (Cordova-Fraga et al., 2004). Its anthocyanins have been characterized for stability as a natural food coloring agent (Del Pozo-Insfran et al., 2004).

source » wikipedia.org

Some people have strong personal feelings with respect to making money from their blogs. If you think commercializing your blog is evil, immoral, unethical, uncool, lame, greedy, obnoxious, or anything along those lines, then don’t commercialize it.

If you have mixed feelings about monetizing your blog, then sort out those feelings first. If you think monetizing your site is wonderful, fine. If you think it’s evil, fine. But make up your mind before you seriously consider starting down this path. If you want to succeed, you must be congruent. Generating income from your blog is challenging enough – you don’t want to be dealing with self-sabotage at the same time. It should feel genuinely good to earn income from your blog – you should be driven by a healthy ambition to succeed. If your blog provides genuine value, you fully deserve to earn income from it. If, however, you find yourself full of doubts over whether this is the right path for you, you might find this article helpful: How Selfish Are You? It’s about balancing your needs with the needs of others.

If you do decide to generate income from your blog, then don’t be shy about it. If you’re going to put up ads, then really put up ads. Don’t just stick a puny little ad square in a remote corner somewhere. If you’re going to request donations, then really request donations. Don’t put up a barely visible “Donate” link and pray for the best. If you’re going to sell products, then really sell them. Create or acquire the best quality products you can, and give your visitors compelling reasons to buy. If you’re going to do this, then fully commit to it. Don’t take a half-assed approach. Either be full-assed or no-assed.

You can reasonably expect that when you begin commercializing a free site, some people will complain, depending on how you do it. I launched this site in October 2004, and I began putting Google Adsense ads on the site in February 2005. There were some complaints, but I expected that – it was really no big deal. Less than 1 in 5,000 visitors actually sent me negative feedback. Most people who sent feedback were surprisingly supportive. Most of the complaints died off within a few weeks, and the site began generating income almost immediately, although it was pretty low – a whopping $53 the first month. If you’d like to see some month-by-month specifics, I posted my 2005 Adsense revenue figures earlier this year. Adsense is still my single best source of revenue for this site, although it’s certainly not my only source. More on that later…

Can you make a decent income online?

Yes, absolutely. At the very least, a high five-figure annual income is certainly an attainable goal for an individual working full-time from home. I’m making a healthy income from StevePavlina.com, and the site is only 19 months old… barely a toddler. If you have a day job, it will take longer to generate a livable income, but it can still be done part-time if you’re willing to devote a lot of your spare time to it. I’ve always done it full-time.

Can most people do it?

No, they can’t. I hope it doesn’t shock you to see a personal development web site use the dreaded C-word. But I happen to agree with those who say that 99% of people who try to generate serious income from their blogs will fail. The tagline for this site is “Personal Development for Smart People.” And unfortunately (or fortunately, depending on your outlook), smart people are a minority on this planet. So while most people can’t make a living this way, I would say that most smart people can. How do you know whether or not you qualify as smart? Here’s a good rule of thumb: If you have to ask the question, you aren’t.

If that last paragraph doesn’t flood my inbox with flames, I don’t know what will. OK, actually I do.

This kind of 99-1 ratio isn’t unique to blogging though. You’ll see it in any field with relatively low barriers to entry. What percentage of wannabe actors, musicians, or athletes ever make enough money from their passions to support themselves? It doesn’t take much effort to start a blog these days – almost anyone can do it. Talent counts for something, and the talent that matters in blogging is intelligence. But that just gets you in the door. You need to specifically apply your intelligence to one particular talent. And the best words I can think of to describe that particular talent are: web savvy.

If you are very web savvy, or if you can learn to become very web savvy, then you have an excellent shot of making enough money from your blog to cover all your living expenses… and then some. But if becoming truly web savvy is more than your gray matter can handle, then I’ll offer this advice: Don’t quit your day job.

Web savvy

What do I mean by web savvy? You don’t need to be a programmer, but you need a decent functional understanding of a variety of web technologies. What technologies are “key” will depend on the nature of your blog and your means of monetization. But generally speaking I’d list these elements as significant:

blog publishing software
HTML/CSS
blog comments (and comment spam)
RSS/syndication
feed aggregators
pings
trackbacks
full vs. partial feeds
blog carnivals (for kick-starting your blog’s traffic)
search engines
search engine optimization (SEO)
page rank
social bookmarking
tagging
contextual advertising
affiliate programs
traffic statistics
email
Optional: podcasting, instant messaging, PHP or other web scripting languages.

I’m sure I missed a few due to familiarity blindness. If scanning such a list makes your head spin, I wouldn’t recommend trying to make a full-time living from blogging just yet. Certainly you can still blog, but you’ll be at a serious disadvantage compared to someone who’s more web savvy, so don’t expect to achieve stellar results until you expand your knowledge base.

If you want to sell downloadable products such as ebooks, then you can add e-commerce, SSL, digital delivery, fraud prevention, and online databases to the list. Again, you don’t need to be a programmer; you just need a basic understanding of these technologies. Even if you hire someone else to handle the low-level implementation, it’s important to know what you’re getting into. You need to be able to trust your strategic decisions, and you won’t be able to do that if you’re a General who doesn’t know what a gun is.

A lack of understanding is a major cause of failure in the realm of online income generation. For example, if you’re clueless about search engine optimization (SEO), you’ll probably cripple your search engine rankings compared to someone who understands SEO well. But you can’t consider each technology in isolation. You need to understand the connections and trade-offs between them. Monetizing a blog is a balancing act. You may need to balance the needs of yourself, your visitors, search engines, those who link to you, social bookmarking sites, advertisers, affiliate programs, and others. Seemingly minor decisions like what to title a web page are significant. In coming up with the title of this article, I have to take all of these potential viewers into consideration. I want a title that is attractive to human visitors, drives reasonable search engine traffic, yields relevant contextual ads, fits the theme of the site, and encourages linking and social bookmarking. And most importantly I want each article to provide genuine value to my visitors. I do my best to create titles for my articles that balance these various needs. Often that means abandoning cutesy or clever titles in favor of direct and comprehensible ones. It’s little skills like these that help drive sustainable traffic growth month after month. Missing out on just this one skill is enough to cripple your traffic. And there are dozens of these types of skills that require web savvy to understand, respect, and apply.

This sort of knowledge is what separates the 1% from the 99%. Both groups may work just as hard, but the 1% is getting much better results for their efforts. It normally doesn’t take me more than 60 seconds to title an article, but a lot of experience goes into those 60 seconds. You really just have to learn these ideas once; after that you can apply them routinely.

Whenever you come across a significant web technology you don’t understand, look it up on Google or Wikipedia, and dive into it long enough to acquire a basic understanding of it. To make money from blogging it’s important to be something of a jack of all trades. Maybe you’ve heard the expression, “A jack of all trades is a master of none.” That may be true, but you don’t need to master any of these technologies – you just have to be good enough to use them. It’s the difference between being able to drive a car vs. becoming an auto mechanic. Strive to achieve functional knowledge, and then move on to something else. Even though I’m an experienced programmer, I don’t know how many web technologies actually work. I don’t really care. I can still use them to generate results. In the time it would take me to fully understand one new technology, I can achieve sufficient functional knowledge to apply several of them.

Thriving on change

Your greatest risk isn’t that you’ll make mistakes that will cost you. Your greatest risk is that you’ll miss opportunities. You need an entrepreneurial mindset, not an employee mindset. Don’t be too concerned with the risk of loss – be more concerned with the risk of missed gains. It’s what you don’t know and what you don’t do that will hurt you the worst. Blogging is cheap. Your expenses and financial risk should be minimal. Your real concern should be missing opportunities that would have made you money very easily. You need to develop antennae that can listen out for new opportunities. I highly recommend subscribing to Darren Rowse’s Problogger blog – Darren is great at uncovering new income-generating opportunities for bloggers.

The blogosphere changes rapidly, and change creates opportunity. It takes some brains to decipher these opportunities and to take advantage of them before they disappear. If you hesitate to capitalize on something new and exciting, you may simply miss out. Many opportunities are temporary. And every day you don’t implement them, you’re losing money you could have earned. And you’re also missing opportunities to build traffic, grow your audience, and benefit more people.

I used to get annoyed by the rapid rate of change of web technologies. It’s even more rapid than what I saw when I worked in the computer gaming industry. And the rate of change is accelerating. Almost every week now I learn about some fascinating new web service or idea that could potentially lead to big changes down the road. Making sense of them is a full-time job in itself. But I learned to love this insane pace. If I’m confused then everyone else is probably confused too. And people who only do this part-time will be very confused. If they aren’t confused, then they aren’t keeping up. So if I can be just a little bit faster and understand these technologies just a little bit sooner, then I can capitalize on some serious opportunities before the barriers to entry become too high. Even though confusion is uncomfortable, it’s really a good thing for a web entrepreneur. This is what creates the space for a college student to earn $1,000,000 online in just a few months with a clever idea. Remember this isn’t a zero-sum game. Don’t let someone else’s success make you feel diminished or jealous. Let it inspire you instead.

What’s your overall income-generation strategy?

I don’t want to insult anyone, but most people are utterly clueless when it comes to generating income from their blogs. They slap things together haphazardly with no rhyme or reason and hope to generate lots of money. While I’m a strong advocate of the ready-fire-aim approach, that strategy does require that you eventually aim. Ready-fire-fire-fire-fire will just create a mess.

Take a moment to articulate a basic income-generating strategy for your site. If you aren’t good at strategy, then just come up with a general philosophy for how you’re going to generate income. You don’t need a full business plan, just a description of how you plan to get from $0 per month to whatever your income goal is. An initial target goal I used when I first started this site was $3000 per month. It’s a somewhat arbitrary figure, but I knew if I could reach $3000 per month, I could certainly push it higher, and $3000 is enough income that it’s going to make a meaningful difference in my finances. I reached that level 15 months after launching the site (in December 2005). And since then it’s continued to increase nicely. Blogging income is actually quite easy to maintain. It’s a lot more secure than a regular job. No one can fire me, and if one source of income dries up, I can always add new ones. We’ll address multiple streams of income soon…

Are you going to generate income from advertising, affiliate commissions, product sales, donations, or something else? Maybe you want a combination of these things. However you decide to generate income, put your basic strategy down in writing. I took 15 minutes to create a half-page summary of my monetization strategy. I only update it about once a year and review it once a month. This isn’t difficult, but it helps me stay focused on where I’m headed. It also allows me to say no to opportunities that are inconsistent with my plan.

Refer to your monetization strategy (or philosophy) when you need to make design decisions for your web site. Although you may have multiple streams of income, decide which type of income will be your primary source, and design your site around that. Do you need to funnel people towards an order form, or will you place ads all over the site? Different monetization strategies suggest different design approaches. Think about what specific action you want your visitors to eventually take that will generate income for you, and design your site accordingly.

When devising your income strategy, feel free to cheat. Don’t re-invent the wheel. Copy someone else’s strategy that you’re convinced would work for you too. Do NOT copy anyone’s content or site layout (that’s copyright infringement), but take note of how they’re making money. I decided to monetize this site with advertising and affiliate income after researching how various successful bloggers generated income. Later I added donations as well. This is an effective combo.

Traffic, traffic, traffic

Assuming you feel qualified to take on the challenge of generating income from blogging (and I haven’t scared you away yet), the three most important things you need to monetize your blog are traffic, traffic, and traffic.

Just to throw out some figures, last month (April 2006), this site received over 1.1 million visitors and over 2.4 million page views. That’s almost triple what it was just six months ago.

Why is traffic so important? Because for most methods of online income generation, your income is a function of traffic. If you double your traffic, you’ll probably double your income (assuming your visitor demographics remain fairly consistent). You can screw almost everything else up, but if you can generate serious traffic, it’s really hard to fail. With sufficient traffic the realistic worst case is that you’ll eventually be able to monetize your web site via trial and error (as long as you keep those visitors coming).

When I first launched this blog, I knew that traffic building was going to be my biggest challenge. All of my plans hinged on my ability to build traffic. If I couldn’t build traffic, it was going to be very difficult to succeed. So I didn’t even try to monetize my site for the first several months. I just focused on traffic building. Even after 19 months, traffic building is still the most important part of my monetization plan. For my current traffic levels, I know I’m undermonetizing my site, but that’s OK. Right now it’s more important to me to keep growing the site, and I’m optimizing the income generation as I go along.

Traffic is the primary fuel of online income generation. More visitors means more ad clicks, more product sales, more affiliate sales, more donations, more consulting leads, and more of whatever else that generates income for you. And it also means you’re helping more and more people.

With respect to traffic, you should know that in many respects, the rich do get richer. High traffic leads to even more traffic-building opportunities that just aren’t accessible for low-traffic sites. On average at least 20 bloggers add new links to my site every day, my articles can easily surge to the top of social bookmarking sites like del.icio.us, and I’m getting more frequent requests for radio interviews. Earlier this year I was featured in USA Today and in Self Magazine, which collectively have millions of readers. Journalists are finding me by doing Google searches on topics I’ve written about. These opportunities were not available to me when I was first starting out. Popular sites have a serious advantage. The more traffic you have, the more you can attract.

If you’re intelligent and web savvy, you should also be able to eventually build a high-traffic web site. And you’ll be able to leverage that traffic to build even more traffic.

How to build traffic

Now if traffic is so crucial, how do you build it up to significant levels if you’re starting from rock bottom?

I’ve already written a lengthy article on this topic, so I’ll refer you there: How to Build a High Traffic Web Site (or Blog). If you don’t have time to read it now, feel free to bookmark it or print it out for later. That article covers my general philosophy of traffic-building, which centers on creating content that provides genuine value to your visitors. No games or gimmicks.

There is one other important traffic-building tip I’ll provide here though.

Blog Carnivals. Take full advantage of blog carnivals when you’re just starting out (click the previous link and read the FAQ there to learn what carnivals are if you don’t already know). Periodically submit your best blog posts to the appropriate carnivals for your niche. Carnivals are easy ways to get links and traffic, and best of all, they’re free. Submitting only takes minutes if you use a multi-carnvival submission form. Do NOT spam the carnivals with irrelevant material – only submit to the carnivals that are a match for your content.

In my early traffic-building days, I’d do carnivals submissions once a week, and it helped a great deal in going from nothing to about 50,000 visitors per month. You still have to produce great content, but carnivals give you a free shot at marketing your unknown blog. Free marketing is precisely the kind of opportunity you don’t want to miss. Carnivals are like an open-mic night at a comedy club – they give amateurs a chance to show off their stuff. I still submit to certain carnivals every once in a while, but now my traffic is so high that relatively speaking, they don’t make much difference anymore. Just to increase my traffic by 1% in a month, I need 11,000 new visitors, and even the best carnivals don’t push that much traffic. But you can pick up dozens or even hundreds of new subscribers from each round of carnival submissions, so it’s a great place to start. Plus it’s very easy.

If your traffic isn’t growing month after month, does it mean you’re doing something wrong? Most likely you aren’t doing enough things right. Again, making mistakes is not the issue. Missing opportunities is.

Will putting ads on your site hurt your traffic?

Here’s a common fear I hear from people who are considering monetizing their web sites:

Putting ads on my site will cripple my traffic. The ads will drive people away, and they’ll never come back.

Well, in my experience this is absolutely, positively, and otherwise completely and totally… FALSE. It’s just not true. Guess what happened to my traffic when I put ads on my site. Nothing. Guess what happened to my traffic when I put up more ads and donation links. Nothing. I could detect no net effect on my traffic whatsoever. Traffic continued increasing at the same rate it did before there were ads on my site. In fact, it might have even helped me a little, since some bloggers actually linked to my site just to point out that they didn’t like my ad layout. I’ll leave it up to you to form your own theories about this. It’s probably because there’s so much advertising online already that even though some people will complain when a free site puts up ads, if they value the content, they’ll still come back, regardless of what they say publicly.

Most mature people understand it’s reasonable for a blogger to earn income from his/her work. I think I’m lucky in that my audience tends to be very mature – immature people generally aren’t interested in personal development. To create an article like this takes serious effort, not to mention the hard-earned experience that’s required to write it. This article alone took me over 15 hours of writing and editing. I think it’s perfectly reasonable to earn an income from such work. If you get no value from it, you don’t pay anything. What could be more fair than that? The more income this blog generates, the more I can put into it. For example, I used some of the income to buy podcasting equipment and added a podcast to the site. I’ve recorded 13 episodes so far. The podcasts are all ad-free. I’m also planning to add some additional services to this site in the years ahead. More income = better service.

At the time of this writing, my site is very ad-heavy. Some people point this out to me as if I’m not aware of it: “You know, Steve. Your web site seems to contain an awful lot of ads.” Of course I’m aware of it. I’m the one who put the ads there. There’s a reason I have this configuration of ads. They’re effective! People keep clicking on them. If they weren’t effective, I’d remove them right away and try something else.

I do avoid putting up ads that I personally find annoying when I see them on other sites, including pop-ups and interstitials (stuff that flies across your screen). Even though they’d make me more money, in my opinion they degrade the visitor experience too much.

I also provide two ad-free outlets, so if you really don’t like ads, you can actually read my content without ads. First, I provide a full-text RSS feed, and at least for now it’s ad-free. I do, however, include a donation request in the bottom of my feeds.

If you want to see some actual traffic data, take a look at the 2005 traffic growth chart. I first put ads on the site in February 2005, and although the chart doesn’t cover pre-February traffic growth, the growth rate was very similar before then. For an independent source, you can also look at my traffic chart on Alexa. You can select different Range options to go further back in time.

Multiple streams of income

You don’t need to put all your eggs in one basket. Think multiple streams of income. On this site I actually have six different streams of income. Can you count them all? Here’s a list:

Google Adsense ads (pay per click and pay per impression advertising)
Donations (via PayPal or snail mail – yes, some people do mail a check)
Text Link Ads (sold for a fixed amount per month)
Chitika eMiniMalls ads (pay per click)
Affiliate programs like Amazon and LinkShare (commission on products sold, mostly books)
Advertising sold to individual advertisers (three-month campaigns or longer)
Note: If you’re reading this article a while after its original publication date, then this list is likely to change. I frequently experiment with different streams.

Adsense is my biggest single source of income, but some of the others do pretty well too. Every stream generates more than $100/month.

My second biggest income stream is actually donations. My average donation is about $10, and I’ve received a number of $100 donations too. It only took me about an hour to set this up via PayPal. So even if your content is free like mine, give your visitors a means to voluntarily contribute if they wish. It’s win-win. I’m very grateful for the visitor support. It’s a nice form of feedback too, since I notice that certain articles produced a surge in donations – this tells me I’m hitting the mark and giving people genuine value.

These aren’t my only streams of income though. I’ve been earning income online since 1995. With my computer games business, I have direct sales, royalty income, some advertising income, affiliate income, and donations (from the free articles). And if you throw in my wife’s streams of income, it gets really ridiculous: advertising, direct book sales, book sales through distributors, web consulting, affiliate income, more Adsense income, and probably a few sources I forgot. Suffice it to say we receive a lot of paychecks. Some of them are small, but they add up. It’s also extremely low risk – if one source of income dries up, we just expand existing sources or create new ones. I encourage you to think of your blog as a potential outlet for multiple streams of income too.

Automated income

With the exception of #6, all of these income sources are fully automated. I don’t have to do anything to maintain them except deposit checks, and in most cases I don’t even have to do that because the money is automatically deposited to my bank account.

I love automated income. With this blog I currently have no sales, no employees, no products, no inventory, no credit card processing, no fraud, and no customers. And yet I’m still able to generate a reasonable (and growing) income.

Why get a regular job and trade your time for money when you can let technology do all that work for you? Imagine how it would feel to wake up each morning, go to your computer, and check how much money you made while you were sleeping. It’s a really nice situation to be in.

Blogging software and hardware

I use WordPress for this blog, and I highly recommend it. WordPress has lots of features and a solid interface. And you can’t beat its price – free.

The rest of this site is custom-coded HTML, CSS, PHP, and MySQL. I’m a programmer, so I coded it all myself. I could have just as easily used an existing template, but I wanted a simple straightforward design for this site, and I wanted the look of the blog to match the rest of the site. Plus I use PHP and MySQL to do some creative things outside the blog, like the Million Dollar Experiment.

I don’t recommend using a hosted service like Blogger if you want to seriously monetize your blog. You don’t get enough control. If you don’t have your own URL, you’re tying yourself to a service you don’t own and building up someone else’s asset. You want to build page rank and links for your own URL, not someone else’s. Plus you want sufficient control over the layout and design of your site, so you can jump on any opportunities that require low-level changes. If you use a hosted blog, you’re at the mercy of the hosting service, and that puts the future of any income streams you create with them at risk. It’s a bit more work up front to self-host, but it’s less risky in the long run.

Web hosting is cheap, and there are plenty of good hosts to choose from. I recommend Pair.com for a starter hosting account. They aren’t the cheapest, but they’re very reliable and have decent support. I know many online businesses that host with them, and my wife refers most of her clients there.

As your traffic grows you may need to upgrade to a dedicated server or a virtual private server (VPS). This web site is hosted by ServInt. I’ve hosted this site with them since day one, and they’ve been a truly awesome host. What I like most about them is that they have a smooth upgrade path as my traffic keeps growing. I’ve gone through several upgrades with them already, and all have been seamless. The nice thing about having your own server is that you can put as many sites on it as the server can handle. I have several sites running on my server, and it doesn’t cost me any additional hosting fees to add another site.

Comments or no comments

When I began this blog, I started out with comments enabled. As traffic grew, so did the level of commenting. Some days there were more than 100 comments. I noticed I was spending more and more time managing comments, and I began to question whether it was worth the effort. It became clear that with continued traffic growth, I was going to have to change my approach or die in comment hell. The personal development topics I write about can easily generate lots of questions and discussion. Just imagine how many follow-up questions an article like this could generate. With tens of thousands of readers, it would be insane. Also, nuking comment spam was chewing up more and more of my time as well.

But after looking through my stats, I soon realized that only a tiny fraction of visitors ever look at comments at all, and an even smaller fraction ever post a comment (well below 1% of total visitors). That made my decision a lot easier, and in October 2005, I turned blog comments off. In retrospect that was one of my best decisions. I wish I had done it sooner.

If you’d like to read the full details of how I came to this decision, I’ve written about it previously: Blog Comments and More on Blog Comments.

Do you need comments to build traffic? Obviously not. Just like when I put up ads, I saw no decline in traffic when I turned off comments. In fact, I think it actually helped me. Although I turned off comments, I kept trackbacks enabled, so I started getting more trackbacks. If people wanted to publicly comment on something I’d written, they had to do so on their own blogs and post a link. So turning off comments didn’t kill the discussion – it just took it off site. The volume of trackbacks is far more reasonable, and I can easily keep up with it. I even pop onto other people’s sites and post comments now and then, but I don’t feel obligated to participate because the discussion isn’t on my own site.

I realize people have very strong feelings about blog comments and community building. Many people hold the opinion that a blog without comments just isn’t a blog. Personally I think that’s utter nonsense – the data just doesn’t support it. The vast majority of blog readers neither read nor post comments. Only a very tiny and very vocal group even care about comments. Some bloggers say that having comments helps build traffic, but I saw no evidence of that. In fact, I think it’s just the opposite. Managing comments detracts from writing new posts, and it’s far better to get a trackback and a link from someone else’s blog vs. a comment on your own blog. As long-term readers of my blog know, when faced with ambiguity, my preference is to try both alternatives and compare real results with real results. After doing that my conclusion is this: No comment.

Now if you want to support comments for non-traffic-building reasons like socializing or making new contacts, I say go for it. Just don’t assume that comments are necessary or even helpful in building traffic unless you directly test this assumption yourself.

Build a complete web site, not just a blog

Don’t limit your web site to just a blog. Feel free to build it out. Although most of my traffic goes straight to this blog, there’s a whole site built around it. For example, the home page of this site presents an overview of all the sections of the site, including the blog, article section, audio content, etc. A lot of people still don’t know what a blog is, so if your whole site is your blog, those people may be a little confused.

Testing and optimization

In the beginning you won’t know which potential streams of income will work best for you. So try everything that’s reasonable for you. If you learn about a new potential income stream, test it for a month or two, and measure the results for yourself. Feel free to cut streams that just aren’t working for you, and put more effort into optimizing those streams that show real promise.

A few months ago, I signed up for an account with Text Link Ads. It took about 20 minutes. They sell small text ads on my site, split the revenue with me 50-50, and deposit my earnings directly into my PayPal account. This month I’ll make around $600 from them, possibly more if they sell some new ads during the month. And it’s totally passive. If I never tried this, I’d miss out on this easy extra income.

For many months I’ve been tweaking the Adsense ads on this site. I tried different colors, sizes, layouts, etc. I continue to experiment now and then, but I have a hard time beating the current layout. It works very well for me. Adsense doesn’t allow publishers to reveal specific CPM and CTR data, but mine are definitely above par. They started out in the gutter though. You can easily double or triple your Adsense revenue by converting a poor layout into a better one. This is the main reason why during my first year of income, my traffic grew at 20% per month, but my income grew at 50% per month. Frequent testing and optimization had a major positive impact. Many of my tests failed, and some even made my income go down, but I’m glad I did all that testing. If I didn’t then my Adsense income would only be a fraction of what it is now.

It’s cheap to experiment. Every new advertising or affiliate service I’ve tried so far has been free to sign up. Often I can add a new income stream in less than an hour and then wait a month to see how it does. If it flops then at least I learned something. If it does well, wonderful. As a blogger who wants to generate income, you should always be experimenting with new income streams. If you haven’t tried anything new in six months, you’re almost certainly missing some golden opportunities. Every blog is different, so you need to test things for yourself to see what works for you. Failure is impossible here – you either succeed, or you learn something.

Pick your niche, but make sure it isn’t too small

Pick a niche for your blog where you have some significant expertise, but make sure it’s a big enough niche that you can build significant traffic. My wife runs a popular vegan web site. She does pretty well within her niche, but it’s just not a very big niche. On the other hand, my topic of personal development has much broader appeal. Potentially anyone can be interested in improving themselves, and I have the flexibility to write about topics like productivity, self-discipline, relationships, spirituality, health, and more. It’s all relevant to personal development.

Pick a niche that you’re passionate about. I’ve written 400+ articles so far, and I still feel like I’m just getting started. I’m not feeling burnt out at all. I chose to build a personal development site because I’m very knowledgeable, experienced, and passionate about this subject. I couldn’t imagine a better topic for me to write about.

Don’t pick a niche just because you think it will make you money. I see many bloggers try to do that, and it’s almost invariably a recipe for failure. Think about what you love most, and then find a way to make your topic appealing to a massive global audience. Consider what will provide genuine value to your visitors. It’s all about what you can give.

A broad enough topic creates more potential advertising partners. If I keep writing on the same subtopic over and over, I may exhaust the supply of advertisers and hit an income ceiling. But by writing on many different topics under the same umbrella, I widen the field of potential advertisers. And I expand the appeal of my site at the same time.

Make it clear to your visitors what your blog/site is about. Often I visit a blog with a clever title and tagline that reveals nothing about the site’s contents. In that case I generally assume it’s just a personal journal and move on. I love to be clever too, but I’ve found that clarity yields better results than cleverness.

Posting frequency and length

Bloggers have different opinions about the right posting length and frequency. Some bloggers say it’s best to write short (250-750 word) entries and post 20x per week or more. I’ve seen that strategy work for some, but I decided to do pretty much the opposite. I usually aim for about 3-5 posts per week, but my posts are much longer (typically 1000-2000 words, sometimes longer than 5000 words, including the monster you’re reading right now). That’s because rather than throwing out lots of short tips, I prefer to write more exhaustive, in-depth articles. I find that deeper articles are better at generating links and referrals and building traffic. It’s true that fewer people will take the time to read them, but those that do will enjoy some serious take-away value. I don’t believe in creating disposable content just to increase page views and ad impressions. If I’m not truly helping my visitors, I’m wasting their time.

Expenses

Blogging is dirt cheap.

I don’t spend money on advertising or promotion, so my marketing expenses are nil. Essentially my content is my marketing. If you like this article, you’ll probably find many more gems in the archives.

My only real expenses for this site are the hosting (I currently pay $149/month for the web server and bandwidth) and the domain name renewal ($9/year). Nearly all of the income this site generates is profit. This trickles down to my personal income, so of course it’s subject to income tax. But the actual business expenses are minimal.

The reason I pay so much for hosting is simply due to my traffic. If my traffic were much lower, I could run this site on a cheap shared hosting account. A database-driven blog can be a real resource hog at high traffic levels. The same goes for online forums. As traffic continues to increase, my hosting bill will go up too, but it will still be a tiny fraction of total income.

Perks

Depending on the nature of your blog, you may be able to enjoy some nice perks as your traffic grows. Almost every week I get free personal development books in the mail (for potential review on this site). Sometimes the author will send it directly; other times the publisher will ship me a batch of books. I also receive CDs, DVDs, and other personal development products. It’s hard to keep up sometimes (I have a queue of about two dozen books right now), but I am a voracious consumer of such products, so I do plow through them as fast as I can. When something strikes me as worthy of mention, I do indeed write up a review to share it with my visitors. I have very high standards though, so I review less than 10% of what I receive. I’ve read over 700 books in this field and listened to dozens of audio programs, so I’m pretty good at filtering out the fluff. As I’m sure you can imagine, there’s a great deal of self-help fluff out there.

My criteria for reviewing a product on this site is that it has to be original, compelling, and profound. If it doesn’t meet these criteria, I don’t review it, even if there’s a generous affiliate program. I’m not going to risk abusing my relationship with my visitors just to make a quick buck. Making money is not my main motivation for running this site. My main motivation is to grow and to help others grow, so that always comes first.

Your blog can also gain you access to certain events. A high-traffic blog becomes a potential media outlet, so you can actually think of yourself as a member of the press, which indeed you are. In a few days, my wife and I will be attending a three-day seminar via a free press pass. The regular price for these tickets is $500 per person. I’ll be posting a full review of the seminar next week. I’ve been to this particular seminar in 2004, so I already have high expectations for it. Dr. Wayne Dyer will be the keynote speaker.

I’m also using the popularity of this blog to set up interviews with people I’ve always wanted to learn more about. This is beautifully win-win because it creates value for me, my audience, and the person being interviewed. Recently I posted an exclusive interview with multi-millionaire Marc Allen as well as a review of his latest book, and I’m lining up other interviews as well. It isn’t hard to convince someone to do an interview in exchange for so much free exposure.

Motivation

I don’t think you’ll get very far if money is your #1 motivation for blogging. You have to be driven by something much deeper. Money is just frosting. It’s the cake underneath that matters. My cake is that I absolutely love personal development – not the phony “fast and easy” junk you see on infomercials, but real growth that makes us better human beings. That’s my passion. Pouring money on top of it just adds more fuel to the fire, but the fire is still there with or without the money.

What’s your passion? What would you blog about if you were already set for life?

Blogging lifestyle

Perhaps the best part of generating income from blogging is the freedom it brings. I work from home and set my own hours. I write whenever I’m inspired to write (which for me is quite often). Plus I get to spend my time doing what I love most – working on personal growth and helping others do the same. There’s nothing I’d rather do than this.

Perhaps it’s true that 99 out of 100 people can’t make a decent living from blogging yet. But maybe you’re among the 1 in 100 who can.

On the other hand, I can offer you a good alternative to recommend if you don’t have the technical skills to build a high-traffic, income-generating blog. Check out Build Your Own Successful Online Business for details.