Why I Made the Switch from Passive Income Chaser to Service Provider

When I put up my very first blog in 2008, my intention was to make money with it. I didn’t quite know how that was supposed to work, though I had some vague ideas about lots of content, some ads in the sidebar, and cash rolling in.

It didn’t quite work out that way, but I did learn a lot about how the Internet works, blogging, affiliate marketing, information marketing, and most importantly, making money online. I also learned that it’s a whole lot easier to earn money – good money – as a service provider than it is to chase that passive income dream.

Today I’m happy to say that providing services keeps a roof over my head, food in the dog’s bowl, and gas in the car’s tank. In September of 2011, I was able to finally quit my day and work at home full time, and I could not be happier with my decision.

But even though I love the work I do and my clients are awesome, it isn’t all sunshine and roses. Remember:

• If you’re not working, you’re not earning money. Want to take an afternoon off to go to the movies? Go right ahead. There’s no boss to tell you no. But chances are good you’ll be working this evening to make up for it if you want to keep your income consistent.
• Planning ahead is a must. If you have an emergency and you need to take a couple of days off, not only will you not get paid, but you will fall behind on work. You need to make sure you have a plan in place not only to replace your lost income, but to get the work done in your absence.
• You might just find you work more hours now than you ever did. When there’s no steady paycheck coming in, it’s hard to turn down extra work, which means you will often commit to deadlines you wouldn’t have when your finances were more certain.
• Distractions are everywhere. When you spend 8 hours in an office, you don’t have to worry about the lure of the television, the siren call of an afternoon nap, or the nagging piles of unfinished laundry. When you work at home, all those things and more conspire to keep you away from your desk.
• Benefits. As in, you have none. No company-sponsored health insurance. No paid vacations. No pension plan. And let’s not talk about the hit you’re going to take on your taxes.

Even with all the downsides, I wouldn’t trade my work-at-home lifestyle for anything. It’s only been a few short weeks since I began this journey in earnest, and already I can’t imagine having to wake up to an alarm clock and drag myself into an office every day. I’m thrilled I was able to make the switch, and I want to help others do the same, so please leave me a comment and let me know what questions you have about becoming self-employed. I’ll do my best to answer them.