August Earnings Report
Wednesday, September 1, 2010 10:47This has been another record month for me in terms of earnings. For the month of August I earned a total of $1,159.38, just about $40 shy of my goal of earning $1200 for the month.
Here is the overall breakdown of my earnings this month:
AdSense: $332.40
Clickbank: $782.47
Amazon: $27.24
Other Affiliate Programs: $17.27
Total Earned: $1,159.38
In May (when I started this blog) I earned just a little over $17 a day from my passive income streams and now, three months later, that amount has grown to almost $40 a day. I still have a lot of work ahead of me, however, if I’m going to reach the $100/day mark by the end of the year.
However, I have to say that earning over $1000 a month for the second month in a row is a huge emotional milestone for me. First, it means that last month was not just a “fluke”. But more importantly, earning over $1000 month provides some sense of financial security for me. It feels like a “real” income to me now, and it’s at the minimum I would probably need to support my son and myself if for some reason I had to move out of my mother’s home and cover all my living expenses alone (which is very unlikely). It would, of course, still be below the poverty index so I certainly wouldn’t be living large, but it still feels good.
However, right now I have the ability to invest much of that back into my business to allow it to continue growing – which is a real luxury I know that a lot of people starting out don’t have. A recent rant by Carrie is a reminder that making money online takes time and effort and it can take years to see real results. It really does take most people at least a year to earn any decent income, and often quite longer, from this business and I suggest you read Carrie’s post for a dash of cold, hard reality about the IM business.
One of the useful points Carrie makes is that many people do not include their expenses when they include their monthly totals, which can mislead many new to the business about the earnings possible through IM. I certainly am guilty of this myself and I am going to start talking about my expenses in my monthly reports as well – so that people have a more accurate picture of what is involved.
My monthly expenses have actually fluctuated quite widely. During the first year or so, they were quite minimal and my monthly income net earnings (after expenses) was often nearly the same as the gross ones I’ve reported. This is because I relied on free tools for backlinking and did not outsource any of my work during my first year. My only expenses during my first year were the domains I was purchasing, my monthly hosting fees, and one software tool (MicroNicheFinder). Of course, this doesn’t include my time in the equation – so that must be kept in mind as well. I’m not going to put a price tag on the time I have invested in my business, but on average I put in about twenty to twenty-five hours of work a week.
By the end of my first year doing internet marketing I was averaging around $300-$400 a month. However, I found that I was pretty much stuck at this earnings level using the methods and the time I had available. In order to increase my earnings, I decided I had to take a risk and start learning about new programs to automate much of my work and also invest in outsourcing. I called this my B-O-A-T plan: Build more sites; Outsource more work; Automate what I could; and Track the results.
I would say the plan has worked so far, but it certainly involves me investing much of my earnings back into my business.
- Outsourcing Expenses. Right now, I have two full-time employees working for me (both based in the Philippines). One of my employees is building sites for me and writing the content for those sites (just starting this month) and one is building backlinks to my sites. Total cost of outsourcing work: $700 a month.
- Monthly Subscriptions. I’ve pretty much decided on which monthly services are worth while to me to help automate my backlinking. These are Blog Blueprint – for high PR blog backlinks; Unique Article Wizard – for massive automated article and directory submissions that I can slowly drip feed over a month or two, TheLinkJuicer – for a nice, diverse mix of links I use on new sites primarily, also slowly dripping out at a rate of a couple a day; and SickSubmitter – for building profile links. I’ll also probably include a Web 2.0 automated site builder in this mix in the next month or so (I just finished a trial of SENuke, I’m a beta tester for SEOLinkRobot, and I’ll probably try out Magic Submitter soon as well – and from those experiences I’ll eventually decide which one to use). On top of this, I also have monthly hosting fees and an Aweber subscription. My total monthly subscriptions right now runs around $200.
- Other Expenses. The main other expenses I incur are domain purchases and the occasional piece of software or (even more rarely now) WSO or other ebook purchase. These fees vary quite a bit from month to month – for example, last month I purchased Backlink Indexer Express to help index my backlinks. This month I plan on purchasing Scrapebox and maybe a guide to learn how to use it most effectively. How much I spend on domains varies depending on what kind of domains I’m purchasing and how many. In general, however, I keep this under $200. For August, my “other” purchases totaled $163.40.
So, for the Month of August I earned $1159.38 but I also had expenses of $1063.40. This means my net income was under $100 for the month!
Now, I might add that if push came to shove, I could fire my workers, cancel all my subscriptions (except hosting and Aweber) and I would still be earning over $1000 a month for a long time to come. That’s the beauty of passive income sources like these – once you have the site built and it’s ranking and bringing in money each month, that income is unlikely to disappear any time soon (unless you get deindexed by Google).
What I’m paying out right now in expenses is an investment in future sites – and my future income. But it’s taken me a long time (well over a year) to get to the point that I can invest $1000+ in my business each month. My business expenses have always been dependent on my earnings each month. That is why I had to rely on free methods when I first started out.
I do think that those who are just starting out can build their business well using only a few (if any) paid services. (For example, check out my budget backlinking post for some ideas). You will build your business much more slowly using primarily free methods, but it can work if you have the patience to stick with it.
Earnings Goal for September: $1500
Related posts:
Carrie says:
September 1st, 2010 at 11:23 am
Thanks for the shout out! I’m glad I’m not alone in some of my thoughts.
And thanks for sharing your expenses, that really helps put things into perspective. I don’t post my expenses but I am also not earning enough to drool over (and I’m too lazy to track my ADD outsourcing methods). You are getting to the drool point though – way to go!
I agree. If you stop all outsourcing/subscriptions your earnings would likely be steady so that is definitely something to be excited about. But it’s good for everyone to understand the costs, work and time involved to get where you are.
Congrats on a great month!
Carrie recently posted..August Update – Getting Ready
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Michelle Reply:
September 1st, 2010 at 10:26 pm
Thanks Carrie, and thanks for a great post too!
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Julie @ Residual Writer says:
September 1st, 2010 at 11:28 am
Congratulations on such a fantastic milestone. And good point on the expenses. I’ve never talked about my expenses, but that’s because I really don’t have any. I guess I shouldn’t leave it up to readers to assume that, however, and I should probably point that out in future reports. Great job and here’s to a successful September!
Julie @ Residual Writer recently posted..Residual Income Earnings Update for August
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Michelle Reply:
September 1st, 2010 at 10:30 pm
That’s great you can keep them down! Relying on sites like hubpages certainly helps keep those costs down, as you well know. I certainly didn’t have many expenses during my first year and it’s only the past few months that they have skyrocketed – but I look at them as more “investment” than expenses, I guess.
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Ruth - Web Career Girl says:
September 1st, 2010 at 12:31 pm
This is a great post Michelle, and congrats on such a successful month! excellent posts by both you and Carrie today. My expenses aren’t that high at the moment but now I’m thinking I may need to invest more. I’m hiring people to write a few articles but there is still masses of work to do myself. I believe it is possible to do it all yourself, it will just take a LOT longer. Thanks for such an excellent picture of your earnings/ expenses.
Ruth – Web Career Girl recently posted..August Earnings- My Passive Income Progression and Update
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Michelle Reply:
September 1st, 2010 at 10:32 pm
Thanks, Ruth. Yeah, it’s kind of funny how it works. Although I now have two people working for me, I’m still overwhelmed with work I need to do at the moment. There’s always something to do…!
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JamestheJust Elance says:
September 1st, 2010 at 1:27 pm
Great post – and will need to check out Carrie’s rant. =)
Good totals, too – and wise use of your income.
JamestheJust Elance recently posted..Make Money Online And Don’t Pay A Dime – Newbie Orientation
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Michelle Reply:
September 1st, 2010 at 10:33 pm
Thanks James.
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Klaus @ TechPatio says:
September 1st, 2010 at 3:17 pm
What a great income report, both the actual income (despite your expenses (investment)), but also how you gave a little inside information as to how your blogging business works.
I hope that you’ll reach at least $1500 in September
Klaus @ TechPatio recently posted..August 2010- Blog Summary & Income Report
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Michelle Reply:
September 1st, 2010 at 10:35 pm
Thanks Klaus. Your blog is really an inspiration too – it looks like you are getting some great traffic!
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Tiffany says:
September 1st, 2010 at 3:46 pm
Congrats on another great month! I’m still aiming for that $25 a day (almost halfway there) and really think you will be hitting that $100 a day average soon.
I do post my earnings every month but I don’t do my expenses as I really don’t have that much at this point. The only thing I pay for every month is $33 for Keyword Academy membership and then the normal domain and hosting fees.
Tiffany recently posted..Keyword Academy Case Study 5 Month Update
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Michelle Reply:
September 1st, 2010 at 10:36 pm
Hi Tiffany – It looks like you are really doing well with minimal expenses! I’ve never used the keyword academy, but it seems a lot of people get a lot of value out of it.
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Jennifer says:
September 1st, 2010 at 8:10 pm
Hey Michelle, nice earnings again for this month. Very proud of you.. It is good to know that you have good strategies to keep building towards passive income. The expenses are a little bit expensive!! I am cheap, lol.. So, I know that will be too much for me, but I give it to you. You are doing the best you can now to make sure you will reap the rewards in the future.
Jennifer recently posted..What Is The Best Way To Achieve Passive Income
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Michelle Reply:
September 1st, 2010 at 10:38 pm
Sure, I understand completely. I was very “cheap” when I was first starting out and I still love finding and using free IM tools! I’m sure after you have been at this a while longer and you are seeing a steady stream of income you will feel more comfortable investing in products or services you feel worthwhile, but at this point you need to be careful. There are just too many ways to spend money with little real returns on it in this business!
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Jennifer Reply:
September 2nd, 2010 at 7:07 pm
You are absolutely right about spending money and investing in products. I am so scared because I think I will get ripped off and then it would be a waste of time. I will research some products in the near future though, but I know where to find some products. Right here!!
Jennifer recently posted..What Is The Best Way To Achieve Passive Income
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kidgas says:
September 2nd, 2010 at 5:15 am
Congratulations on the $1000 monthly milestone for the second month in a row. My best to you for September.
You make a great point about building a business and reinvesting in that business. People need to understand that it is precisely that. Of course including your expenses helps drive that point home. Many new business owners don’t take a salary in the early years and work long hours to achieve success. Many only see the end result but fail to understand what it takes to achieve that level.
kidgas recently posted..August Is Best AdSense Month for 2010
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JamestheJust Elance Reply:
September 2nd, 2010 at 10:38 am
I agree with the observation that investing = smart biz, but –
There are other exigencies which preclude many (me) from reinvesting to such a degree. It’s unfortunately not always possible to reinvest 80% or more of your income – for obvious reasons.
…I’m about to ask Michelle if her mom’s house has room for the kids. I have 8 BUT only 7 at home…my wife can cook REALLY well (my 4 oldest cook very well actually)…
JamestheJust Elance recently posted..Make Money Online And Don’t Pay A Dime – Newbie Orientation
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Michelle Reply:
September 2nd, 2010 at 11:29 am
Sorry James, but the inn if full at my house. Sure, I understand that not everyone has the luxury of being able to reinvest nearly all of what they earn in their business. Of course, that “luxury” comes with a high price tag for me – moving back in with family (which I’m sure isn’t easy for most adults!).
Another IM’er I greatly respect, Clayton, actually has a new ebook that you might be interested in James: How to earn hundreds of dollars a month with internet marketing so that you too can eventually get to the point where you can move back in with your parents. It’s on sale for $99 right now, but you better hurry – I heard quantities are limited! You can find the offer here!
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Cathy says:
September 2nd, 2010 at 1:04 pm
Good for you! Seeing your progress gives the rest of us hope!
I do some outsourcing (articles and backlinking) but not that much. I’d love to get a fulltimer to do those tasks, specially the backlinks. Sigh…maybe someday.
Cathy recently posted..August Earnings
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Michelle Reply:
September 4th, 2010 at 10:35 am
Thanks Cathy – Yeah, outsourcing backlinks was the first thing I did once I could afford it!
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Bo says:
September 2nd, 2010 at 9:47 pm
Hi Michelle, congrats on your successful month!
I noticed you have employees in Philippines and I was wondering what is the best way to pay them.
Another question is if I were to hire a person to work for me hourly basis (content creation), what would be the most appropriate hourly wage for a person with about 5 years of corporate work experience?
I’m at a hiring stage and I’d like to get some advice from you. Thanks!
Bo recently posted..XFactor’s Forum is Permanently Closed
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Michelle Reply:
September 4th, 2010 at 10:45 am
Hi Bo,
I pay one of my VA’s using Xoom’s service and the other via Paypal. I think Xoom is better, but they have to have an account setup with all their bank details in order for you to use it – but the fees are less and it’s super easy to use.
Gosh, I have no idea how to answer your question about hourly wages. It depends on so much (how well they write, what country they live in and more) and I have also never hired someone hourly before. I do have an excellent writer in India that I use from time to time, and I pay her per article at $3.50 for a 500 word article, which is a really good deal considering the quality of her writing. I’d normally expect to pay anywhere between $5-10 per 500 word article written in excellent English, possibly more. I hope that helps!
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Bo Reply:
September 7th, 2010 at 12:15 am
Thanks Michelle for your reply. I checked both Paypal and Xoom and I actually found Paypal’s fee lesser than Xoom’s for some reason. If my VA has a Paypal account I guess I can try Paypal first and see if I can make a smooth international transaction. Thanks for recommending Xoom. I would’ve never thought of it.
Bo recently posted..XFactor’s Forum is Permanently Closed
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Michelle Reply:
September 7th, 2010 at 7:13 am
Hi Bo – Glad I could be of help. With Xoom, it really depends on how you are sending the money (and where). Home delivery of the funds (in the Philippines) is much more expensive than Paypal, but I find direct deposit to be a lot cheaper – under $5 for $400. But I imagine there are other factors – such as where you are located, how much you are sending, and what country you are sending to. Also, not all workers have Xoom, so sometimes that isn’t an option…
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Devin Elder says:
September 3rd, 2010 at 7:42 pm
Hey Michelle,
I found your blog through Clayton’s, great job this month! $1k/mo is substantial, and I really think that once you get to that level all the hard learning curve stuff is pretty much out of the way.
Best of luck in the coming months!
Devin Elder recently posted..Website Update – Week 1
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Michelle Reply:
September 4th, 2010 at 10:36 am
Thanks for stopping by Devin. I’m going to enjoy following you as you try to reach your goals!
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Justin From Affiliate Freedom says:
September 3rd, 2010 at 11:03 pm
Hey Michelle,
Just curious how you like Magic Submitter vs SEO Link Robot so far? How did you become able to be a beta tester. I really like web2mayhem but the 120 price tag is a getting to wear on me a bit. Curious about your thoughts. I’m hoping they (web2mayhem) have google alerts set up!
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Michelle Reply:
September 4th, 2010 at 10:39 am
Hi Justin – With SEOLinkRobot, I was on Steve Hawkin’s email list since I’ve used other products he has made (SEO Link Dominator and SEO Fast Indexer) and he just sent out an email request asking for Beta Testers which I responded to. I haven’t tried web2mayhem yet … I guess I should take a look at that. I’m going to write a full review soon of MS vs. SENuke vs. SEOLinkRobot, but some of my initial impressions is that SENuke is the most powerful, MS is the easiest to use (great for newbies) and SEOLink Robot (is going to be) the most affordable. The $4.95 monthly trial for MS seems like a good deal if you have $5 to spend (go to James’ blog to get the trial). I might say that all the services seem to have a dismal success rate when it comes to creating web 2.0 accounts – I’m lucky if I can get half of them through.
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Paul/ Entertainment tonight says:
September 8th, 2010 at 10:14 pm
Congrats on your income.
Does your income come from this blog alone or do you have a network of blog for that?
Paul/ Entertainment tonight recently posted..Demi Moore shows her bikini on Twitter
[Reply]
Michelle Reply:
September 11th, 2010 at 5:28 pm
This blog makes very little money, which is fine because I didn’t start it for that reason. Almost all my earnings come from my other blogs – check my FAQs above to learn more.
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Deneil Merritt says:
September 11th, 2010 at 9:22 am
Wow, your post make me want to work smarter and harder. To grow my business. I will have to check out some of those SEO tools.
Deneil Merritt recently posted..August 2010 Income Report
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Michelle Reply:
September 11th, 2010 at 5:33 pm
Thanks Deneil, and best of luck in your own journey!
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Deneil Merritt Reply:
September 11th, 2010 at 8:22 pm
You welcome. Always nice to see others do well. Thanks
Deneil Merritt recently posted..August 2010 Income Report
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Mary says:
September 19th, 2010 at 4:15 pm
Hi Michelle
I was just browsing the web and found your site, you won’t believe that i have been reading some post here from last 2 hours, its really inspiring. I am kind of newbie in this field but very much interested in making passive money. I have a question for you, you have mentioned that you have 2 VA working for you full time, can you tell me where can we hire these VA? Is there any site which you can recommend me?
Regards.
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Michelle Reply:
September 21st, 2010 at 9:07 am
Hi Mary – thanks for your kind words. I just found your comment in my spam mail folder – which I don’t check nearly as often as I should, so I’m glad it didn’t get by me! In terms of hiring the VA’s, I used bestjobs.ph to find both of them. You can gain access to this website via Tyrone Shum’s website (they recently stopped allowing people from the US and certain European countries to register directly). You can also try Craiglists Manila job postings, or even something like Freelancer.com (I’ve used them successfully to find part time writers), Odesk or a similar service. I hope that helps!
Oh, it seems like you have already read a lot of my posts here, but in case you missed them, these posts may be of interest:
Adventures in Outsourcing, Part I
Adventures in Outsourcing, Part II
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Mary Reply:
September 21st, 2010 at 2:19 pm
Thanks for the reply, the other 2 posts were helpful. I have just sent you email. Please reply it when you get time.
Thanks.
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