November 30, 2010, 5:00 am

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

by: The Financial Blogger    Category: Make Money Online
email this postEmail This Post Print This PostPrint This Post Post a CommentPost a Comment


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!

image credit

Similar Posts:

You Want More? Sign-up! ->
TFB VIP Newsletter


If you liked this articles, you might want to sign for my FULL RSS FEEDS. If you prefer to receive the posts in your email, subscribe CLICK HERE


Comments

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?

[…] a week ago, I wrote about how my online company went from $18K to $124K in revenue in a single year.  Back 2008, I invested a lot of my time and remortgaged my house in order to create an online […]

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,

[…] to generate 125K with my blogs  without burning myself out (curious about it? Go read how I went from 18K to 125K in 12 months). I actually had the idea of sharing this part of my business model with you as I am taking part in […]

[…] From $18,403 to $124,514 In A Single Year! (Year) – In the span of 12 months, we increased our blogging income from $18K to 124K. Find out how we did it and what we are looking for next steps. […]

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

[…] From $18,403 to $124,514 In A Single Year! (Year) – In the span of 12 months, we increased our blogging income from $18K to 124K. Find out how we did it and what we are looking for next steps. […]

[…] From $18,403 to $124,514 In A Single Year! (Year) – In the span of 12 months, we increased our blogging income from $18K to 124K. Find out how we did it and what we are looking for next steps. […]

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.

[…] and a few posts? I was crazy enough to do it. A year later, our gross online income went from $18,403 to $124,514. We sold some websites, made some great money and I reimbursed my […]

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!