Before I found it, I investigated a couple of other avenues, but what I found was that a lot of the companies out there were masters at internet marketing and I was their prime customer–so I felt like I was being “sold” something and that turned me off. I also found it difficult to assess who was really successful using their system. With SBI, I saw a LOT of really positive reviews–granted, SBI offered a high paying promotion for SBI testimonials, so you have to factor that in. I also saw some positive reviews that appeared to be unsolicited AND I was really impressed that SBI is offered at colleges (even ones whose names I recognize!) They also have a monthly payment option and I figured it was worth a shot to try it out.

I’ve been with them since the beginning of the week and here’s what I think so far: It’s not easy. You have to do a LOT of research and some if it is frustrating trying to understand it all. But it is definitely do-able and it seems to be the real deal. I also like that they don’t try to sell you a bunch of other stuff when you join. And..they walk you through all the steps. It’s a very methodical approach to building a website. I’m really using it as a way to learn how to market my blog (while building a niche blog). I’d say if you’re willing to persevere and ask questions when you get stuck..and you realize it’s going to take you awhile to make money from a passive income site…then I’d recommend it. You are locking yourself in because the website is affiliated with the site and you CAN find out the same information through other sources…BUT I think it would take much, much longer to figure it out how it all works on your own. If you’re like me and not too savvy at setting up and marketing a site, I think it’s a great option!

You’ll want to research the business side yourself as I am not a tax accountant (though I am an accountant). However, here’s my understanding: There is a threshold per year–under that amount and your business is considered a hobby–over that amount it is considered a business. I believe the threshold is $600–but don’t quote me on that. If you were to file taxes, you would also have expenses (yarn and needles, plus milage-drive time to photograph my models, etc–all are examples of expenses). Those expenses would reduce your income. I also prefer to set up my businesses as sole proprietorships–that way it is much easier at tax time. If I were you I would look at your state’s rules for business licensing. What is the criteria for considering it a business? Are there different rules for internet based businesses vs brick and mortar businesses?

I’ve thought about developing my online pattern business further, but have gotten busy with other things in life. If I were to sell more patterns and make more money than I do now, I would definitely have to research the things I’ve mentioned above.

Good luck with your patterns!

My biggest concern is busines licesnsing. Our state has a $200 a year business license fee. Plus, I then have to file taxes on the income as well. How do you work these things out when you are not making that much?