November 30, 2010, 5:00 am

From $18,403 to $124,514 In A Single Year!

by: The Financial Blogger    Category: Make Money Online
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For the very first time in my life, I am happy to pay taxes. I mean REALLY happy! Because when you pay taxes, it means something; it means that you are making money. So the more you have to pay, the more you made (and at one point, you tire of paying taxes and optimize your taxation structure to keep more money and pay less taxes ;-) ).

I just got my financial statements for the year 2010 (our company’s fiscal year ends on June 30th). When I got the envelope from my accountant, I was all excited. I pulled out the report and jumped to the revenue line. And this year, we made the big total of $124,514 in income. This is a huge step since during our previous year (our first full year of activity) we made a *small* $18,403. This shows how profitable the web can be.

The tricky part

We have tons of projects. But the trick is that we now have the manpower and the money to start several of them. I’d say that it is a tricky part since it would be tempting to spend our money blindly thinking that we will simply make more. In fact, after the sale of Gather Little By Little last February, we waited a while before making any significant moves. We wanted to make sure that we were on the right track… this led us to buy The Dividend Guy Blog back in July 2010.

The strength of our financial network brings more than 100,000 unique visitors per month and generates a steady $7,000 monthly income stream. (I know, 7K/month doesn’t add up to $124K in income but we had several spikes during the past 12 months and I prefer working with what I consider to be a “recurring” income stream.) Our range of possibilities has been opened wide. We now discuss weekly which project we want to start next as our money is sleeping in a bank account. However, this situation won’t stay as is for a long time..

The next step

We have had several unsuccessful experiences in hiring virtual assistants that live very far away from us. I guess that it was due in part caused by our ignorance of how to manage them properly and the fact that we are evolving in a niche market that requires a high level of knowledge.

We recently moved toward North America manpower and found 2 great VAs. We already have MD posting once a week on The Financial Blogger (and doing a humongous amount of work  behind the scenes) and we are hiring our first full time employee this week. Since we have several projects on ice right now and we are not ready to quit our jobs (yet), we thought of having someone full time that I can train to become my brain extension ;-). I’ll talk more about my first employee in the upcoming weeks as this topic deserves a series of post by itself.

Among our projects we want to put in place this year, we have:

#1 Buy another website

We have enough money (and funding) to buy another significant website. So we are currently asking a few people around what are their thoughts about selling their blog. Since blogs could quickly become a pain for someone who loses their passion for it, we think we may find some people interested in selling.

#2 Create 1 or 2 ebooks

The next step in making money online is obviously creating your own product. But I don’t want to create a product just for the sake of it. I want to do something that will be helpful. Right now, I am thinking of my fellow blogger Mike Holman who wrote the RESP Book. He is surely making money with it, and it is because he helps people by providing very helpful information on  RESPs. This is what I want to do. I want to offer you stuff that you want, that you need and that you will be able to use.

#3 Grow DoNotWait! into a well known blog

We are still working on the calculators and other resources for this website. The launch was a success and we already have a good reader base. We just want to promote the site so it becomes as big as our other finance blogs.

#4 Create a niche website

This idea is taking more and more space in my mind lately. This has something to do with the reading of Affiliate Marketing for Beginners by Corbett Barr (part of the 23 online business guide for $97 promo) and I have been listening to a Pod Cast from Smart Passive Income author Pat Flynn and I seriously think that I am up for the challenge. This won’t affect my blogging business and it would create a diversification in my income stream. Most importantly, after investing the right amount of work, it will create truely passive income. Since I drive 2 hours a day back and forth for work, I have a lot of time to listen to the Pod Cast and think about this project ;-).

This is not an overnight success story

For those who read this and think it’s easy; making money online is very hard. The thing is that you need to keep the faith and be able to push the wheel until it starts spinning. Now you see how much I make and it seems very cool. But I have to tell you that we made less than $5,000 in 2008, only $18,000 in 2009 and this was while working even more hours than we are now.

As I say at my day job: “THERE ARE NO FREE LUNCHES IN LIFE”, if you want something, you will have to work pretty hard for it. Good luck in all your projects!

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Comments

Wow – $18k to $124k in one year!

If you keep up that growth, next year’s revenue will be 14 billion dollars! :)

Congratulations on the great year :) This really shows the value of investing in yourself; there are far more opportunities than in stocks!

by: The Financial Blogger | November 30th, 2010 (8:24 am)

@Money Smarts Blog,
lol! I don’t think I will be able to keep the pace ;-) However, 2010-2011 seems to be on the roll for another 6 figures revenues!

@Value Indexer,
it’s funny you mention this as we have been investing the bulk of our resources in our company instead of considering investing in the market for the past 2 years.

Your brain extension… lol ;-) Very impressive and inspiring. It’s nice to have such good news while celebrating your 4th anniversary! I would also like to read Affiliate Marketing for Beginners.

That’s a good way to do it when you find something that’s proven to work for you. After you increase your income substantially you have more to invest and you also have the business which will keep generating profits in the future :)

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Wow, that headline is very catchy, and the numbers are unbelievable. Great job. I am curious, did your expense greatly also, or was most of it profit?

Congrats!

You guys had a great year! I’m excited to be doing some of the same things you guys are doing relatively soon, especially since I started those 23 courses last night as well as the Empire Building Kit. Like you said, it doesn’t happen overnight, and requires a lot of attention to detail, but I’m hoping by this time next year, I, too, will be looking into hiring a full time employee :)

by: The Financial Blogger | November 30th, 2010 (4:22 pm)

Hey Kris,

I’d say that it is a pretty profitable business. However since we are hiring a VA and a full time employee, we will cut in our profit margin (temporary). at least we won’d be paying too much taxes next year ;-) hahaha!

wow truly amazing.
Congratulations for your accomplishments.

I was curious, after all expenses what is the net income?

by: The Financial Blogger | November 30th, 2010 (6:36 pm)

@Jae,

well you know if you are a Canadian that there is expenses and company expenses. So our net income is good but it could be even higher ;-)

after we paid the computer and a few writers, there is not much to deduct…and we are paying taxes this year already ;-(

Really inspiring post, and shows that persistence is the key to success in the pf blogging niche. Cheers and congrats!

Wow 100K Page impressions per month…That is fantastic. I love hearing about the inner workings of your empire. So you bought and sold GLBL?

Wow! I had no idea you could make this much money on blogs.. this is all just from people clicking ads?

124k? That’s impressive. Also remember that it’s 124K without launching any products yet. These are the kind of posts that new bloggers should read. It’s really easy to get discouraged when you first start your blog. It always feels like nobody will ever read your blog and that you won’t make a dime. There is a light at the end of the tunnel.

Perhaps a post on re-investing in your business is due ;)

Wow! That is amazing!! Congrats on the very much earned success. I’m still at what I would call the early stages and I’m almost a year in with Financially Digital – and this is definitely a mentor type post if I’ve ever read one :) Great to see that you guys have stuck it out and that you still produce great content while making a bit extra for yourselves. I hope this snowball keeps growing for you guys!

Wonderful job on your hard work; I look forward to seeing how the next year goes!

Awesome work! You’re building quite the little empire there.

What would you say is your best money generator?

Congrats TFB!

@Evan,
that’s 100K visitors, we have almost 200,000 pages viewed ;-)

@Craig,
We are trying to reach a balance between private sponsor, adsense and affiliate. this year, we will put more emphasis on affiliate marketing in order to bring it back to 30% of our total revenue.

@Jae,
we made 40K net profit after all our expenses and paying 10K in taxes ;-(

Congratulations on your success. An inspring post for us neophyte bloggers who are trying to figure out what their next steps/objectives are.

Very inspiring! Best of luck in the coming year!

Financial BLogger,

Awesome job. This is where I want Grocery Alerts to be one day.

What is your #1 tip for getting and keeping that traffic?

Wow that’s great! Definitely an inspiration to all PF bloggers. If you do things the right way and you keep at it you can make more money than you ever would with a day job.

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It’s always good to hear these stories. Sometimes it seems like folks make it sound so easy to make money online, but I like how you emphasize the hard work and patience.

Great work!!

Congratulations on the gross earnings.

Your statement “it means that you are making money. So the more you have to pay, the more you made ” is dangerous. Using how much you pay in taxes as a directional indicator endorses the least effective/efficient way of creating wealth. You can earn more money and not pay as much in taxes based on the type of money stream you are pulling in.

Whoa! Those are pretty awesome numbers! Thanks for the inspiration!! Maybe I’ll even be able to quit my day job one day. :-)

All the best,

Len
Len Penzo dot Com

by: The Financial Blogger | December 1st, 2010 (10:20 am)

@Steve,
thx for your kind word. My #1 tip would be to keep working no matter if you see results or not. do the right things and “have the faith”. I have worked in the darkness for a good 6 months before I saw any sign that I was doing something right!

@Almost,
it is simply a way for me to say that I’m glad to pay taxes because I am making money. On the other side, we paid only 10K out of 124K.. so our official tax rate is pretty low ;-)

sounds like you guys had a great year, it’s inspiring to hear about! I’m right there with you, trying to build my own little empire of money making blogs that one day can be a full time thing. Right now I’m just happy that I’ve been able to build my sites to the point where my blog income has more than doubled my wife’s day job salary – now that she has become a stay at home mom. Your story just goes to show -that making an income online can be done – it isn’t impossible!

Very impressive work chaps. Keep it up! :0

Awesome to see! It’s awesome to see such success for some people, and definitely motivating for others (like me) who hope to derive a significant amount of their money from online businesses. I work a full time job right now, but am working on websites and developing an online business on the side during pretty much my entire free time. Can’t wait to see how next year turns out!

Wow, that is awesome!

I’m sure you put in the hours though! Just guessing I bet over 60+?

It’s definitely paying off for you :)

That is great! You have turned blogging into a 6 figure annual income. Well done.

by: The Financial Blogger | December 2nd, 2010 (8:20 am)

@Money Reasons,

this is the best part of it; I work about 15 to 20 hours and my friend 10 to 15hours per week. so we don’t even work 40hours/week put together!

Wow–Congratulations! Now that is some growth:).

Dang!! That’s fantastic!!

From 18K to 124K- super great return.

Congratulations!

I actually like it when I see my income high too, even though it means jumping to the next tax bracket!

I’m so glad that I came across this blog, it’s informative and inspirational. I’ve been blogging since March 2010 and I’ve only made about $10… Thank goodness I’m not just doing this for money, but it’s great to see the possibilities of what could happen if I continue to blog.

Thats great. I really enjoy reading your site. Wonder if you can get 700% growth next year?!!

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Very awesome… congrats on all of your success so far, and continue being an inspiration to us all! :)

And stop sending me into the spam sometime :P

Wow, $70/1000 visitors is impressive. Is that mostly affiliates, then? I’ve been struggling to break $60.

by: The Financial Blogger | December 6th, 2010 (11:12 am)

@Canadian Finance Blog,
Thank you for that!

by: The Financial Blogger | December 6th, 2010 (11:13 am)

@Buy like a buffet,
Thank you, very appreciated!

Great stuff! How is $124,000 split? Is that net profit?

Awesome!

Cheers, Sam

Just read the comments and it said “@Jae,
we made 40K net profit after all our expenses and paying 10K in taxes ;-(”

Do you mind clarifying that? How do you go from $124,000 in revenue down to $40,000 in net profit?

As far as I know, it only costs like $15/yr for a domain name, and $500/yr for hosting per site. What am I missing mate?

Thnx

by: The Financial Blogger | December 7th, 2010 (5:52 am)

@Financial Samurai,

You are missing the point of paying 20% taxes on corporation income. this is why we have expenses (computer, internet connection, black berry, amotization of our blog purchase, etc).

20% X 124,000 = $99,200 left over. You are right, I am missing the point as to how you get to only $40,000 net profit, and I’m sure others are as well.

Please clarify! Cheers

Send me your tax report, I’ll send you mine ;-)
50k of expenses, 40k of profit. not much to say about my expense. I just wrote off everything I was entitled too according to tax laws ;-)

Gotcha, still don’t understand how expenses could be 50K, but I’ll take your word for it.

Regardless, $124,000 in revenue is quite an achievement. Are you splitting the 40K with your partner, or is that all you?

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by: The Financial Blogger | December 8th, 2010 (8:19 am)

that’s the total of what we made. in fact, all profit has been reinvested this year in the corporation.

Don’t forget that when we do purchases ,we are allowed to amortize a part of the site each year to drop our income.
ex: you pay 10K for a site, you can deduct 2K per year (for 5 years in a row) from your income as “amortization”. since we are pretty active in buying websites, it plays a great difference in our income structure.

it’s all about financial structure ;-)

Don’t forget that when we do purchases ,we are allowed to amortize a part of the site each year to drop our income.

Are you sure this is correct? Buying a website is not an expense. Seems to me you shouldn’t be amortizing this.

FYI – I’m not an accountant or anything close to it. :)

@Money Smart Blog,

You can consider it as a property. If you buy a building, you are entitle to amortize your expense (but can’t deduct the full 300K the first year for example). Same thing with websites.

@TFB – Interesting. I had assumed that amortization only applied to depreciating assets.

Looking back, I should have amortized my purchase of Mr. Cheap’s half of the blog. Oh well!

That’s really inspiring reading!

Good luck to you!

Enjoyed your post. Inspiring and informational, can’t get better than that. It seems you are a great juggler. When you first started, did you focus on a tent pole project and bring others up slowly or did you start off with a handful of projects at the same time?

by: The Financial Blogger | December 9th, 2010 (2:26 pm)

@Buck,

I actually started with The Financial Blogger with no other project in mind. Overtime, we realized that we were able to scale our business model and buy other blogs. This is how we grew to where we are now.

Before 2009, I didn’t have a clue where we were going with this. I was just “writing about finance” without a defined plan!

[...] From $18,403 to $124,514 In A Single Year! (The Financial Blogger) [...]

Umm… I’m shocked. How awesome for you! Congrats and please do share on the following in posts:
1. What’s a reasonable way to start earning money on a blog without messing it up too much with irrelevant ads?
2. Benefits and tips for various platforms…

Well, that’s a couple for now :)

@Doctor Stocks,

I’ll definitely write about those 2 topics!

cheers,

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Motivating! I would be happy to 18,000 from my blog. Thanks for sharing, I assume your income is dependent on the various blogs?

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glad you mentioned the hard work and time it takes to prosper in the online space. many are simply still in denial and think they can be the exception. making money online is not for the desperate, as i have repeatedly written about on my blog

Making money online is not an easy task. Before you reach the goal you may be faced with different challenged. The biggest thing I have noticed seems to be Direction. Majority of human beings have the ability to be successful online. Unfortunately majority of humans aren’t willing to put in the focus, dedication, and persistence required to succeed. Master one thing at a time and everything else starts becoming much easier.

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Very inspiring. I have a feeling in 2013/2014 it is really going to be an uphill battle in terms of creating a good PF blog from scratch!