A while back I wrote a little article called “My Vision of Multiple Streams of Income”. After receiving several emails asking for a sequel and sharing more real life experience I decided to give an update on my journey with SFI and Stone Evans’ PIPS system.

As I mentioned in my last article I went off a good start with this system and I honestly can attest it really works. The only negative thing is, if you want to call it this way, that I put a lot of effort into this project. The system is designed to run on autopilot, that’s great. But until you’ve reached a certain level of visibility, you need run your promotions around clock. I’m almost there.

As an example: I run several Google AdWords campaigns to promote my website and SFI. The reason for this is simple. This is a highly competitive market and achieving high rankings with major search engines takes a long time and due to rough competition you won’t be able to reach top without a few backdoor tricks.

So I took route of actually spending some advertising money and in return I have a wide spread exposure. Remember baseball movie with Kevin Kostner “Field of Dreams” with famous remark “If you build it they will come”? Unfortunately this is no longer true for internet.

Back to topic of controlling advertising cost with Google AdWords. I closely track my expenses and I keep a lit on it if it gets too high.

Each of them requires that you provide a Social Security Number or EIN number when you apply with them. These numbers are used to report your earnings. At end of year, you'll receive a 1099 form which is IRS earnings document given to Independent Contractors.

Since you have to pay taxes on your income, you should take care to make sure that your income is properly calculate. Remember, gross adjusted income is going to be total amount that you earned - your expenses. For this reason, you really need to keep track of all of your affiliate marketing expenses.

Keep receipts and track all following:

* Web Hosting Costs

* Affiliate marketing tools (such as your WordTracker membership fees, cost of products like Adwords Analyzer, etc.)

* Any PPC advertising that you purchase.

Don't do as I have been prone to do and wait til end of year before you start putting these numbers together. You'll forget many and you won't be able to gain access to others.