Win $1 Million Or Build An Online Business?
This sounds really silly. But if someone asks you – do you want $1 Million in your account or a profitable online business? What would you say?
I guess many people would probably choose to have $1 Million in their bank account. Human in nature is afraid of risk but want something incredible. So, more or less, without thinking deeper, a whopping $1million will instantly be chosen when people asked spontaneously.
However, a wiser man would probably choose a profitable online business despite the risk and hard work behind it, as long as he knows its potential and profitability.
Now let’s talk about what all the world why you should choose an online business over an instant one million dollar!
The truth is, not everybody would agree. We all have our own opinion.
Why Online Business Is Better Than Winning $1 Million
- 1 The Power Of One Million Dollars
- 2 The Power Of Online Business
- 2.1 What If You Invest Time In Your Online Business?
- 2.2 But How Long Does It Take Before You See Results?
- 2.3 The Importance Of Traffic To Your Website
- 2.4 How Much Can I Earn With Affiliate Marketing?
- 2.5 Is Earning Money Online Too Good To Be True?
- 3 Reality Check
The Power Of One Million Dollars
How Long Can One Million Dollars Last?
If you have read my posts the other day on whether a $1million is enough to retire, then you already know how long does a one million dollar last in the state where you live in. In that post, it shows that if you live in Hawaii, then a one-million-dollar will only last for 13 years and a month. While if you live in Mississipi, then your $1 million can last much longer for up to 25 years and 6 months.
Of course, $1 million is one million dollars that many people are even willing to die for. But what can a one million dollar do to you in case you instantly won/get a million dollar in your account?
Why Do Lottery Winners Go Broke?
What would you do if you won a lottery and bagged a sizzling $1 million?
Chances are – you’ll going to pay debts, buy a house, give back to your community, travel, buy something to your loved ones, help other people, and then you’ll be going to save the rest. This is what most of the people answered according to CNBC’s survey when people asked what they would do if they won $1 million.
The point here is that, if you instantly get rich – without knowing how to really earn that money properly, then you really don’t know the real value of it – not only as the money value itself but the value of time you invested in it and the person you’d become by achieving a success and earn a million-dollar.
That’s why lotto winners go broke. They don’t know how to make the prizes grow. They will just spend it right away or just save a little part of it and sooner or later, the money is gone.
What If You Invest Your $1 Million?
I’ll definitely congratulate you if you’ll going to invest all of your $1 million (without taking even a cent) in order to let them grow and get a monthly profit from it.
However, investing involves risks. Stock Market can crash anytime and you can lose money if you don’t know how to manage your risk and how to do it right – then you’ll probably fail and lose money.
If you want to start investing without any knowledge, then try to consider starting with the mutual fund as these investments are being managed by professionals. Talk to your bank adviser for recommendations.
However, there’s still a risk of losing money because even professionals can not predict the future swing, whether the market will be bearish or bullish- there’s no certainty.
The average return on investment with mutual funds is around 4% per year. So, you can get around $40,000 per year before taxes and inflation.
Now, if you want the most secure type of investment, or I prefer to call it savings type, then it’s the CDs. A CD (Certificate of Deposit) can give you a fixed interest rate for a given period of time. Let’s say 2.4% per year, which is currently (March 2019) the rate to date.
And another more secured investments are the government bonds. These investments can generate you also around 2.5% per year if you live in the US using the Central Bank Rate.
So, your $1 million can generate around $25,000 per year or a little over $2000 per month before taxes. That’s fine provided that you can live a lifestyle below that $2,000 before taxes per month. Take note that inflation is not even calculated with this.
But how many people who can invest a whole one million dollar once they won that a lottery? I doubt there’s even one. Why? Chances are, you would want to treat yourself or your family or pay credit cards which normally have high-interest rates and so on…
The bottom line is, a million-dollar will lose it’s power if you don’t know how to take care of it until you’ll lose everything.
The Math Of Passive Income With Your Own Money
First and foremost, the most proven way to achieve financial business is through investments and business. However, let’s admit that it is also possible to achieve financial freedom through savings (if not investment). BUT how much money do you really need in your account in order to earn passive income using the “safest” method at 2.5%?:
- ($240,000 x 2.5 %) / 12 = $500/month
You need to have $240,000 in your account in order to earn $6,000/year or $500/month at 2.5% rate.
- ($960,000 x 2.5 %) / 12 = $2,000/month
You need to have $960,000 in your account in order to earn $24,000/year or $2,000/month at 2.5% rate.
- ($2,400,000 x 2.5%) / 12 = $5,000/month
You need to have $2,400,000 in your account in order to earn $60,000/year or $5,000/month at 2.5% rate.
- ($4,800,000 x 2.5 %) / 12 = $10,000/month
You need to have $4,800,000 in your account in order to earn $120,000/year or $10,000/month at 2.5% rate.
- and so on…
Now, who would keep that $4.8 million in his account for “just” $10,000 a month? That’s ridiculous, you can earn much much more than that if you just learn how to invest your money properly.
Okay, fine. That’s almost overwhelming. But what if you don’t have money… that leads me to give you the best option ever.
The Power Of Online Business
A Profitable Online Business
You probably already noticed that online businesses are just everywhere and anywhere around the web. Then why not start to build yours as well?
There are different kinds of online business you can choose from – affiliate marketing, blogging, e-commerce, etc. However, earning money online with affiliate marketing and blogging are my personal favorites because it’s the easiest way to leverage the online market and this exactly what I’m doing and I love it.
Affiliate marketing and blogging have created a lot of rich people, while others are earning “just” around $5000-$10,000. I say “just” because I know a lot of online marketers who are earning much more than $10,000 a month.
However, in order to build a profitable online business, you need to be willing to invest time with it. Just like any other business, your business will grow depending on your own effort.
Why Do New Bloggers Fail?
Affiliate marketing and blogging often go together. Because affiliate marketing is the best way to monetize a blog – in any chosen niche.
Affiliate marketing business is the easiest way to earn passive income online. However, it not that TOO easy as many people think it is.
When I started blogging in 2009, I never knew what exactly I was doing because I was on a solo – I tried to do everything by myself. I thought I’ll just have to build a blog and write contents and then earn money with Google Ads and that’s it. A few months later, I didn’t have any satisfying result and I got disappointed.
To make the story short, I tried to blog anything and everything under the sun – what’s wrong with that? I didn’t have any particular niche. Nobody told me I have to.
I also built 2 more sites and the same bad circle runs around: I built a site – write contents – no income.
I thought I was just wasting my time because I couldn’t see any result at all after a few months.
So, I quit! That was the biggest mistake!
New bloggers fail because they expect big results in a short period of time and because nobody guides them at all.
The bottom line is – to build a profitable online business, you need to be willing to invest a lot of time. You need to be willing to learn everything from scratch and continuously learning every day about your own business and online marketing itself.
Yes, affiliate marketing is the easiest way to earn passive income online and anybody with great determination can do it.
What new bloggers tend to focus in that line is the word “easiest” and realizing sooner or later that it is NOT THAT TOO EASY at all because it requires real hard work.
The deadline: new bloggers quit too soon and too quick that’s why they fail.
What If You Invest Time In Your Online Business?
If you noticed, having one million dollars will require you to invest money right away so see profits right away.
On the contrary, an online business needs quite a long time before it can produce real results.
This means you need to invest your time and efforts. You nee