Economics

Revenues From Running A Web Site
Bottom Line & Profits

We have to be a bit careful here. Google, who we love, has a very strict rule that no one can discuss or reveal the amount of money they make using their ads.

So we will speak about possible scenarios, which are all examples, not a reflection of actual results.

You have visited several web sites looking at examples of different types of ads. If not, visit some of the sites listed at the bottom of the page - they are all making money.

Example: If one of those sites has more then 2,000 visitors per month, that is more than 65 people a day. If we said the average Google ad is worth 10 cents when clicked, for example, then you need one visitor out of 65 to be interested in the ad.

If you are getting a click-thru rate of 2% that is considered a good rate. Click-thru is a Google statistic that tells you how many visitors to a page click on an ad.

2% of 65 is 1.3, or more then enough to be above break-even.

However, what if you got $1 per referral, just for someone clicking on a link and providing their email address for free inor? Or even more.

Just today we were invited to join a referral program that is new to Commission Junction which has a payout of $3 per lead. They are looking for business owners to sign up for a free business service.

At $3 a lead, with a 9cent per day break-even point you will only need one completed referral every month. That is one click per 2,000 visitors.

Now think about the partner products you can find on ClickBank. The average commisions paid seem to be about $22. You have to look at the products that will be of interest to people visiting your site. Since some products can generate revenues as high as $75 per sale, you only need one of those every six months. You can see some examples on Wild Web Wealth.com

As you can see, the longer your site is on line, the more people will be able to find it. With more visitors you will make more manye.

lightThe goal you should have for each page of your web site is to mix Google ads and ads from other sources that have a higher return. The Google ads will attract the majority of the visitors since they are based on the page content.

The additional ads will help you make real profits, since you need few clicks tomake lots of money. That way you have something for everyone, and you are more likely to find people interested.

9 centsNine cents a day is a very low target. Especially if one or two clicks will cover your costs. From that point on your are making a profit.

And your site will be working for you 24 hours a day, seven days a week.

You really have little to lose and so much to gain. Your main expense is $10 per month which you can cancel at any time.

Take your first step, set up a site today and start making money tonight.

Ready for your own site? Click below.

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Costs For Running A Web Site
The Expenses Side

All of the cost numbers used here are real.

They are based on the partherships this site has and the links in place.

Ok, now lets look at the numbers, and why this business is so interesting.

Domain name will cost about $7 per year. That is the registration fee. That is th elow price on the internet, available from Build Your Own Site Now*. You can pay for multiple years in advance, which can reduce your annual cost.

For now we will just use the $7 per domain name per year in our cost calculations.

Next is a hosting company. For about $10 per month you can use a company that will basically make your web site available to the world.

There are cheaper options, but they have limitations that will impact your ability to make money.

warningOne thing you want to avoid is a limited number of domains. You want a hosting plan that will let you host an unlimited number of domains.

The other consideration is the use of free hosting. But as they say, there is no such thing as a free lunch, which in this case, turns out to be true.

Free sites will host your web page content, but they also will run ads. If you want a site that makes money for you and pays for itself, then a free site is not the way to go. You lack control and there are a lot of competing ads.

If your site pays for itself, it's really free, right? Plus you are in total control.

noteOne last note. You can sign up for a hosting plan that is billed monthly, with no contract. If you want to move to another hosting company, the you can. Everything is in your control.

So we have our hosting costs of $10 per month.

 

Your up front costs to get started are $17. Which is about 57 cents a day, for the first month.

The second month you only will need to pay $10 hosting fee. which is drops your costs to 33 cents per day.

If you have a single site, your annual costs will be about 35 cents per day.

That's almost nothing. You probably have that much change in your pocket at the end of each day.

If you add a few more web sites on different topics, you can expand your revenue generating possibilities with very limited additional costs.

Any new sites can be hosted with the original site, at no extra cost, so your overall costs per site per day drop dramatically.

9 centsWith five sites, your annual break-even cost is only 9 cents a day.

That means each site only needs to generate 9 cents a day for it to be free and cover the costs. Anything over the 9cents is pure profit.

Now you see why this is such an exciting business.

 

Here are all the calculations so you can build your own cost analysis.

Domain Name: $7 per year.

Hosting: $10 per month

1 Site for 1 year =
1x $7 = $7 +
12x $10 = 120
$127 per site for one year.

$127 / 365 (the internet is always on) = $0.35/day

Add four more sites for a total of 5 sites.

5x $7 = $35
12x $10 = $120
$155 for 5 sites for 1 year

$155 / 365 days = 43cents / day
0.43 / 5 sites = 9cents / day / site

To break-even you only need to make 9cents per days on each of your sites.

Head over to the next column and see how that is possible to cover the 9cents and make a whole lot more.

 

Ready for your own site? Click below.

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