May 18, 2011, 7:27 am

In 5 years From Now, My Online Company Will…

by: The Financial Blogger    Category: Business
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futureWhen I was a teenager, I remember that I was pretty close to one of my uncles (my aunt’s boyfriend and now husband). To be honest, I was close to this guy since I was 8 and still am. But back when I was 16, he started something very interesting with me. Each time I saw him, he asked me the very same question over and over again: In 5 years from now, where will you be?

He wasn’t looking for a specific answer; I could tell him about school, job, family, travels, etc. In fact, the purpose of this question was simply to make me think. He wanted me to think about my future, how I want to shape it. This way, I could realize how I can create a path towards my goals.

While discussing with my partner, he asked me a similar question. He wanted to know where I imagined our company in the future. Instead of answering him, I thought of putting all my ideas in one article. So  you are about to discover my vision of the company (at the same time as my partner ;-) )….

In One Year From Now…

Our main VA will go on maternity leave at the end of this summer so in one year from now, she should be back almost full time. Since she has come on board, we have made several great accomplishments and are now able to manage several projects at the same time while managing our current blogs. While the development of our company should slow down during the next 12 months (due to her maternity leave), we expect several projects to be on the roll.

According to our plan, in 1 year, M-35 should have its 10 niche websites up and running along with 2 “bigger” websites. Our 2 “big” projects are 2 financially  related websites. One is regarding insurance (since we have nothing on this topic in our website portfolio!) and the second one will be an investing website. However, it won’t be a blog and it won’t be a niche website or educational site either… I’ll develop more on this idea later on ;-).

Therefore, I expect M-35 to make over 10k per month and the income distribution should look like this:

- 70 to 80% from our main blog network

- 10 to 15% from our niche websites

- 10 to 15% from our 2 other website projects

Among our revenue sources, we should have 4 (yup, you read it right: FOUR) E-books for sale (along with our first FREE E-Book which will be launched at the end of this month). Hopefully this will generate a few hundred monthly.

In Three Years From Now…

This is where the real fun begins. Thinking about what my company will become in 12 months is pretty easy since we are already following our annual plan and added a few more projects from our last annual meeting.

In 3 years from now, I imagine my company generating substantial income (hopefully over 20K per month). During these 3 years, we will pay off our company loans and probably leverage again to buy another major site. I see a possible investment of 50k to 150K in one or 2 websites that already generate a lot of income. Since we have been building our company through acquisitions, I don’t see any reason why we should slow down on this strategy.

We actually monitor a few blogs that we would like to buy one day. But in order to make it happen we need 2 things:

A)     a blogger who doesn’t want to take care of his blog anymore

B)      us with a lot of cash flow ;-)

If all things go well, I also picture myself with several products (mostly E-books) and I would like to be working on a “service” or “tool” provided through one of our sites with a membership area (either a forum or a “private room”).

Five Years From Now…

In 5 years from now, I’ll be 35 and so will my partner. The whole idea behind the name of M-35 is to become millionaire by the age of 35. For the record, my friend wanted to call it M-30 at first… and he is the one saying I’m hyper, lol! So in order to achieve it, we should be able to value our company at roughly 1,5M$ so we can both claim 750K worth of shares in our net worth statement.

With a well diversified portfolio along with a long income tracking history, we should be able to use a multiplier of 5 times the annual income at that time. So to make it worth 1,5M$, we would need a steady monthly income of $25,000. Since we are getting close to 10K/month right now, I guess that reaching 25K per month with our blogs will be a challenge but not impossible at the same time. After all, a guy like Pat Flynn made more than 40K last month!

In order to reach this level, we will need to leverage on our current network and offer paid membership services or webinars. Such activities are very lucrative and we should be able to make our monthly income jump through these services.

Technically, this should be the very first time when I’m really wondering if I should quit my job or not. I don’t know if the answer will be yes in 5 years but let’s just say that I’ll be pretty independent from my day job at that time ;-). On the other hand, if I still like what I’m doing, why not keep both?

Ten Years From Now…

In 10 years, I should be retired ;-). At the age of 40, I expect the passive income generated from my blogs to be more than enough for my partner and I to relax and travel around the world. I will still be working but I will do it with way less hours per week and definitely won’t be working for a bank. If all goes well, I won’t have to worry about keeping my job anymore ;-0. The fact of not working for a financial institution would open a lot of doors that we are not allowed to open at the moment due to potential conflict of interest and compliance. But once we are “free” we will be able to work on many other projects!

While I don’t expect my online income to grow as fast as it is currently, I believe we can both make over 100K each in our pockets once all expenses are paid. This would be more than enough for me to slow down and enjoy life as it should be enjoyed!

M-35 Updates

I’m trying to get in touch with you with this blog but I will also publish more updates from my free newsletter. Last week, I’ve given more info on my first E-book. If you want to be among the first people to receive it for free, you just have to sign-up for my newsletter:

What about you, Have you ever thought where WILL YOU BE in….1 year, 3 years, 5 years, 10 years?

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Comments

Millionaire within five years should be very very doable for you, maybe even four. Kudos for trying, and in five years it’ll be kudos for achieving.

Here’s how I would project your cash flows if I were buying stock in your company:

$10K/mo now.
$30K/mo in a year.
$60K/mo in two years.
$100K/mo in four years.

After that, you’ll be at a totally different level and into different business models I’m sure.

by: The Financial Blogger | May 18th, 2011 (8:52 am)

wow, that’s a lot of pressure ;-)

mind you, a year ago, I never though I would be at 10K/month right now! hahaha!

“I never though I would be at 10K/month right now! hahaha!”

Ok, now you’re starting to sound like a rich madman :)

by: The Financial Blogger | May 18th, 2011 (10:55 am)

I’m just mad ;-) hehehe!

That’s an inspiring vision. I have no doubt you will achieve what you set out to. I think a lot of people fail to set goals because they don’t want to measure their failure. But, what is life without a challenge. Shoot for the stars.

by: The Financial Blogger | May 18th, 2011 (5:43 pm)

@Hunter,

yeah, well if I get only half of what I have written, I’ll be pretty happy ;-)

And what if it becomes reality? you never know !

by: james t. smith | May 19th, 2011 (4:46 am)

I hope you excluded Adsense from your plans?

by: The Financial Blogger | May 19th, 2011 (10:41 am)

@James,

why would I exclude Adsense?
While it’s not our main source of income, this is still a great part of our plan.

I am curious to hear you about your thoughts on Adsense.

cheers,

Mike.

[...] other day we took a look at where M-35 will be in five years. It’s always important to plan for the future and to look towards where you plan on heading. [...]

James – are you concerned about the continuity / sustainability prospects of Adsense? agreed that it is a concern – and I’d be interested in your thoughts as well

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[...] at The Financial Blogger presents In 5 years From Now, My Online Company Will…, saying “How we see the growth of our [...]

That’s quite an aggressive but doable plan.

by: james t. smith | May 23rd, 2011 (12:22 pm)

I’ve been in the Internet business even before Google was online, right now a lot of publishers are making plans ignoring the fact Google has plans of its own. Google is constantly evolving along with adsense. As long as your depending on Google for traffic and income from adsense any plans you make will at their mercy.

I have nothing against Google but If I didn’t put up safety measures I would have ended up in the streets with the recent algo changes or to the recent Panda updates.

Any investment you make to get constant traffic with out Google is going to be expensive but will be worth it. Investing on generic domains with type in traffic is just one example of making your plans solid.

Great goals guys! I believe you will make it there.

Question… do you just revalue the company up once a year in terms of the value of your shares? Is it as easy as that, based on a multiple of earnings? Are there any tax implications involved?

Thx!

by: The Financial Blogger | May 24th, 2011 (7:17 am)

We do revalue our company shares about once a year. We revisit our valuation model to keep it current. For example, we have increased our multiplier this year since our income is far more stable and well diversified among several income sources and different websites.

There are no tax implication as it is just a personal indication for us. In fact, we do it just in case one of us pass away: the amount to be paid to buy back the deceased partner shares is determined by this valuation model. Therefore, if I would die today, my partner would have to pay $98K to my wife to buy back my shares. We do have a life insurance for that ;-)

by: The Financial Blogger | May 24th, 2011 (11:05 am)

@James,

Yeah, Google has taken a very important place on the internet market. My plans include the big G for both traffic and revenues. However, I don’t count solely on them in order to reach them.

On the other side, it’s quite hard to ignore it as well!

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