How My Websites Make Me Money

I use the term “Selling Advertising Online” all the time.  It is essentially how the business generates revenue.

For my demonstration on how my websites manage to make me money, I’ll use one of my sites, MotoredBikes.com, as an example.  I own several more websites similar to this one, and the methods may be a little different, but the underlying principle is still the same.

Creating the Site

I started MotoredBikes.com after I built my first motorized bicycle.  The site is a community of motorized bicycle builders and riders.  The site is a message board, where people have public discussions about various aspects of motorized bicycles.  Individuals can sign up to the site for free and start making posts.

As more and more people posted questions and answers about motorized bicycles, the site became an excellent resource for others looking for information about these bikes.

Getting the Visitors

Due to all the unique quality content, Google recognized that people looking for information about motorized bicycles would benefit from visiting my site.  Therefore, Google ranks my site highly for thousands of keywords related to “motorized bicycles”.  This gets my site thousands of free visitors every day.

Furthermore, my site has a community following with thousands of members.  Many of these members visit the site on a regular basis, giving the site even more free traffic.

Turning Traffic Into Money

Getting traffic is the hard part, and selling it is a piece of cake.

There are three ways that I make money from the MotoredBikes.com traffic:

  1. Direct Ad Sales – This is where I have a direct relationship with a motorized bicycle retailer, that says “I’ll display your banner to x number of users for $y”.  This means that I’ll make a fraction of a cent every time someone loads a page on my site.
  2. Pay Per Click – I have a “Google Adsense” account.  They are free and anyone can get one as long as you have a website.  Google gives me a piece of code that I stick on my website to run ads.
    This code automatically gathers all the keywords in my content and places ads on my site, according to those keywords. Hundreds of thousands of businesses advertise through Google, so they have plenty of ads to instantly choose from.  When someone clicks one of these ads, Google automatically charges the advertiser a few cents, and pays me abot 65% of whatever they charge.
  3. Pay Per Action/Commission – I have some relationships with advertisers in which they give me a commission from every order that is generated by a visitor from my site.  This means that if you go to MotoredBikes.com, click an advertisement and place on order on that site, I’ll receive a commission from your order.

As you can see, pretty much everything is set up to run on auto-pilot.  This is what enables me to work fewer hours but still make the same amount of income.

By visiting MotoredBikes.com, you can clearly see the ads in action.  Also visit SupplementReviews.com and look out for any “Supplement Prices”.  Clicking one of these links and then placing an order will often result in me getting a commission.

How Much Do I Make?

Many people wonder how much I make.  Some are surprised to hear that I can actually make a living off these sites.  Others are surprised to hear that I am not a millionaire yet.  (90% are the former, 10% are the latter).

While I don’t want to disclose any figures, I will say that I would be comfortable raising a small family of mice on this income in Cambodia.

Also, I noticed that in my first year of working full time on my business, I was seeing 10%+ monthly growth, every single month.  I remember thinking I would be happy with a 6% yearly raise as an employee.

Healthcare Benefits?

I pay about $100 a month for decent medical and dental coverage.  My dental isn’t bad, but my medical insurance is a high deductible plan.  The medical isn’t great because it doesn’t really reduce the price of seeing a doctor; it is only good for limiting my hospital bill to $4,000 (the yearly deductible) in case of some disaster (surgery, stay at the hospital, ambulance ride, cancer, other major health problems).

Retirement?

For the first several months of my business, I wasn’t putting anything towards retirement.  I would always say “I’m going to check the retirement account”, and then jingle my change cup.

My retirement plan is to continue to build my assets by investing in more residual income business opportunities.  I have already been purchasing websites to add to my portfolio.  I’d like to transition more into purchasing real estate and other business so that I can further diversify my assets.

Traditional retirement planning is pretty bleak.  You start by estimating when you will die, and then calculate the years you will live after retirement.  The idea is that you want to have just enough money saved up so that your funds run dry the day you die.

My goal is the opposite.  I’d like my assets to be growing until the day I day.  I don’t see any reason that this can’t happen.

 

4 Responses to “How My Websites Make Me Money”

  1. [...] How My Websites Make Me Money [...]

  2. Jordan says:

    Wow awesome stuff. I am also creating websites and trying to make some $$ from google ads. Its taken alot of time and effort yet still not making much. I will keep it up and not give in then maybe one day I’ll see a return :)

    -Jordan

  3. [...] I do a pretty good job explaining this in further detail in this post: How My Websites Make Me Money. [...]

  4. AN Web Services says:

    This is great post. Really made me thinking again about my strategies, but also encouraging to look and see further. Thank you for sharing your thoughts and good luck with your projects :)

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