Building a $1,000,000 Website in 12 Months
Written by Glen, this post has 71 Comments
I recently stopped working on a number of large projects because I was not totally passionate about them. I’ve always lived my life around what interests me the most, but I’ve always still worked on things I don’t care about that much. That all changes now as I have sold a number of affiliate websites that make me money, but I don’t care about anymore.
This has given me not only a nice lump-sum of cash, but also a lot of spare time. I have decided that instead of starting multiple sites in fairly uncompetitive niches, I’m going to go for a ‘biggie’. I’m going to go for a niche that is highly profitable, but also ultra competitive.
What Is a $1,000,000 Website?
Sites that make less than $10,000 a month tend to be sold for around 12 – 18 months revenue. So, if you have a site that is making $8,000 per month, you could expect to sell it in the region of $96,000 or even more. When the monthly income gets higher though, the purchase price climbs as well. If you have a site making $25,000-$40,000 per month, you can expect to sell it for up to 36 or even 48 months revenue.
This is typical in the business world, and I have witnessed hundreds of website sales that match this theory. There are other factors apart from revenue that determine the price of a website, of course, but that’s what I’m focusing on here.
To build a $1,000,000 website in 12 months, I need at least one of the months to make me $30,000. A site generating $30,000 at 36 months revenue would be worth $1,080,000. This does not actually mean that I will sell the website if I hit my target (a rival is making $300,000 per month in the same niche) but reaching that income level is my goal.
How I Will Do It
There are literally thousands of ways to build a website that makes a lot of money. I could become a news / content site that makes money through advertising. I could set-up discussion forums that charge a monthly fee or even some type of games website that charges members to play. Alternatively, I could set-up a membership site based around my knowledge of making money online and charge people for access.
I could do all of those things, but I won’t. Instead, I’m going to go back to my favourite type of marketing: affiliate marketing. My plan is to build a site around a popular niche and initially sell a product that I know is doing well on Clickbank. To maximise profits and the traffic I receive, I will probably build my own product in the same niche after a few months.
Choosing the Niche
I have already taken a few steps to start this project, but I’ll let you know the ones I went through. First of all, I headed over to Clickbank (not an affiliate link) and browsed their Marketplace. (If you don’t know what Clickbank is, go here). Because I’m going for a big fish I simply decided to look at the most popular products.
To tell which products are selling well, you look at their grav. There are around 10-20 products on the site which get a grav of over 250. Therefore, I decided to write all of them down and then head on over to the Google Keywords Tool. When using the tool, I decided to think of phrases that people who could possibly want these products would use in Google. Not necessarily the name of the product, but buying phrases that would likely result in a sale if this person landed on my website.
On the third product I tested, I found an absolute beauty. The search term I entered received 79,000 exact searches in Google every month. Including Yahoo and Bing, that’s around 100,000 people per month searching for this term. Checking the search results for this phrase was actually quite surprising. Not one of the results for this very lucrative phrase were homepages. They were either Youtube videos or articles on websites.
Of course, many of them had hundreds of links, but no more than I think I can build myself.
Instead of going through the entire list of 20 products and their respective keyphrases, I decided to focus on the first one I found that I was:
- Interested in
- Sure it had potential to make $30,000+ per month
I had found my niche. After you’ve decided on a product you want to promote and the keyphrase to go with that, it’s time to buy a domain. I’ll be covering this in the next section of the case study and share how I ended up forking out $550 for mine.
Do I Think I Can Do It?
Building a million dollar website in 12 months might sound crazy to people, but I’m the guy who made the best part of $100,000 in 2009 through my websites that I built from scratch. I have just sold a few websites that were making around $5,000 each per month so none were as lucrative as the site I plan to build, but the process for making money with them is essentially the same.
After researching my market, I found a competitor in the exact same niche I have chosen who made around $3,000,000 (that’s 3 million dollars) last year with a very basic but product orientated website. I have never built anything this big before, but I believe I can. All of my time and attention over the next year is going to be focused on just my blogs and this niche site. I will literally give it as much of my attention as possible.
Every few weeks I’ll give an update to the steps involved in this case study and how I plan to rank in Google for the keyphrase and get enough traffic to my site to make money. I’m also going to be doing some cool things like hiring a model from Craigslist to come to my apartment and shoot some relevant videos which should be fun.
I’m here to show you what is possible.
I know that if I don’t reach my $30,000 per month goal, I’m going to come very, very close.
If you’re sick of all the slimy marketers out there and want to get updates from someone who is actually going to show – for free – how they make money, then make sure you subscribe to the RSS feed.
Can’t wait to read more. You’re articles really are inspiring.
Thank you DI!
This is rock’n'roll
Have I mentioned before that this is my most favorite blog?
Glen, if your company went public I’d buy all the shares!
Ha, cute Lucy
Glad you are enjoying the content here!
Wow, that sounds really interesting. I hope we’ll see more articles about this project soon.
There should hopefully be one on Monday
This should be very interesting! Will definitely be following along the way. Sounds like you have a solid plan and a great history of this to build on. Best of luck!
Thank you Joe, I’m confident this project can become a success.
Just let me know your backup ideas and I’ll get started! haha
This is going to be cool, yes I have subscribed to the RSS. I can wait to see how this plays out.
Hey Glen!
I honestly believe that you can do this! You are really good at what you do. I’m going to use you as inspiration and motivation to do exactly the same, find and attack a big niche and work solidly on a project for 12 months
Peace!
Very, very cool.
A really good challenge to set yourself and after seeing what you have done with your blogs in the past, I don’t doubt that you can make this happen.
Really looking forward to updates on this one!
Cheers,
Shane
Hi Glen,
I love it when someone decides to go for the next big step … and to declare that publicly is awesome. You already know how to build profit making sites. The jump is significant. As they say, if you think you can then you can. Kudos to you. I shall be watching in anticipation and cheering you on the sidelines.
best………….valentina
If anyone can put their mind to building a million dollar website, and make it happen… I think it’s you
This is an ambitious plan, but totally attainable with your work ethic, and drive and knowledge. I look forward to watching you make it happen! 
Karen
The hard part is deciding on a niche. Very ambitious, I like your style. I am keeping up with the RSS Feed. I would be happy with a $10,000 site.
Honestly? I love your post. It helps me alot… I really wanted to start affiliate marketing and I think this is a very good start. Do you think putting games from “Your Kids Club site” will help my site establish traffic? because first my plan is to drive visitors to my site before entering into affiliate marketing.
I am excited to see your progress in achieving $1M website.
If you’re running a games site, affiliate marketing is probably not the way to go to make money.
I have no doubt you can do so. Looking forward to watching you do it.
This case study is going to be interesting and I can’t wait for the updates about it. Thanks Greg Ellison
I can’t wait to read more of this process throughout the future. I hope you really make it happen and inspire us all to go out and reach our goals.
BTW, it is nice to get another story on here, I love your bog and it’s content.
And this is why I subscribe to this blog. Great to see ambitious goals and the ongoing process.
Building great site to sell is definitely new to me, eager to see the result and hope you achieve your goal soon.
Looking forward to watching you make this happen. I really appreciate your willingness to share the results as you put your plan into place.
I subscribed. I’m looking forward to hearing about your journey.
came across your blog thru a tweet from problogger. you have an interesting idea, i’ll keep following.
In most occassions I do not post on blogs, but I would like to say that this post really forced me to do so. Really nice post!
Thanks for sharing another good piece of information. Take care, Isaiah Kid @ Flyttst
Very interesting challenge.
Good luck on your project and let us know every week how it’s going.
Sounds great. I’d love to see how you face this great challenge.
See you Glen.
Nice challenge. I really follow your progress, good luck
That’s awesome, I hope you make it happen! Most people start these types of projects and poop out. Dont be that guy!
Best of luck!
Denny
I guess it will all come down to what you have to pay for the keywords, and how long you can keep buying the keywords at a low enough price to give you the margins that you need. Unless you are planning to do it all via organic search traffic?
As I have gained more experience in internet marketing, so I have come to put more and more weight on an exact-match domain name, and it sounds like you have acquired one which is an excellent start. Look forward to the updates.
Yes, as revealed tomorrow, I have an exact match domain.
This is also going to be done through organic search.
I guess you would need some budget for that right? I am still struggling with my blogs to get top 3 positions, but I have finally achieved Google page 1 after many wanderings and mistakes, wasting money on nothing etc.
Good luck, I think I will follow this conquest of yours, because if you can make 1 000 000 site then I can at least make a 10 000 site, right?
Sweet, can’t wait to see how this progresses! Thinking big is a sure sign of success, besides, a competitive niche will keep you on your toes, and should make for even more interesting content for us.
[...] was blown away with your response to my new $1m website project (read about that here) so I have decided to kick things off with the next installment. Now that I had my niche, it was [...]
I wish you all the best with this venture. I always do enjoy your articles when they come to my inbox.
Great post Glen, and definitely looking forward to this. Although I love owning tons of sites that make money (staying diverse), I’m always looking for the next giant project such as this.
This should definitely be an interesting case study!
Off to read part 2.
Glen you have me wondering whether I can do it and I don’t even know how to tie my shoe laces!
Looking forward to every chapter of this exciting adventure! You make riding a bike seem more challenging than this! If nothing else it and inspiring and entertaining read
Good work Glen. I am getting ready to launch a site chronicling my endeavor to be a work from home Dad. For too long I’ve worked 8+hr days with a 2+hr commute each day – it’s time to live now and raise my family. I am looking at affiliate marketing and other things. If you’ve got advice I am all ears. Good luck.
[...] very happy about the $1m case study I have started and really appreciate the awesome response from you guys. I admit that I’m [...]
Glen,
That is a an awesome goal! I have read that the big the goal the higher the motivation is for it. I will look forward to following you and your progress.
Vince
I just found your site…I can’t wait to get started
Just subscribed to your blog so you’ll be hearing from me a lot.
Steve Crooks on the WarriorForum had a looooong thread proving that he could make $100/day using AdSense. He revealed his niche and the steps he took. He only got to like $40/day, but still, it was one of the most popular threads there so I’m sure this one will be well received too.
I like the way you think… I thought you were going to shoot for $1million in revenue right off the bat.
Anyway, seems to me that you can create an ebook once you’re done with this process and make some more money.
Keep up the good work.
Raza
Oh man Glen. This is an awesome project. Good luck. As you can see (if you’ve enabled gravatar), I took your advice from PluginID and made an avatar.
It looks great!
I’m glad you are liking the case study
and thanks for your comment!
[...] Building a $1,000,000 Website in 12 Months: Glen from Viperchill is one of the most hard-working and inspiring bloggers I know. I’m very fortunate to be good friends with him, and totally recommend following his progress on this little big case study of his. [...]
[...] a website worth owning has created it in months or years. Not weeks. Only focus on things like my $1m case study if you’re actually trying your own methods to make money. Otherwise, you’re just a [...]
Where can I find information about sites which make money and are for sale for 12-24 months worth of revenues?
Flippa.com is a good place to start
Hahaha!!! Is your 1M$ website about how to make a 1M$ website by any chance???
Nope
It is in the fitness niche.
[...] I’m confident that his business will skyrocket in 2010 – especially with his $1 million case study. [...]
Nice article. I’ll definitely be paying attention to this as it’s something I’d be interested in learning about and trying when I get back from travelling after I finally jack my pointless job in in a couple of months.
After a quick bit of research, it wouldn’t be about getting a pack of more than one thing would it? Slightly cryptic there, but not very…
Glen,
We are all paying attention.
Any updates? Would love to see how’s your progress after declaring two months
Hi Daniel,
There has already been one update (see base in the header for all posts).
There will be another one tomorrow
Let the challenge begin! I love your confidence and can’t wait to see how all this plays out. Very educational for me, I must say, so blog even the smallest of detail. I’ll be absorbing it all.
Inspiring post Glen. You put your intentions out there and it will manifest.
It will be fun to follow this project as it’s created
I’ve been following you on Twitter for a littel while and I have to say “Wow are you for real!” Please do yourself and everyone who watches your progress a big favor; document, record, do whatever you need to do…..but make your methods known. Sell it, give it away, whatever you like, but please continue to communicate.
I appreciate your value to this community.
Hi Mark,
I have done a live case study in the past that is now making a few hundred dollars a week (where I shared everything) so I will continue to do the same here.
There is another post tomorrow.
Thanks for the comment!
Of all the people I know, you are by far the best in building up excitement and expectation! I’m looking forward to an update of this project.
Hey Bart,
There will be one tomorrow! Thanks for the comment
[...] has been a while since I wrote about my million dollar case study. To be honest with you all, a lot has been happening in my life and not much has been happening on [...]
Wow, I am really looking forward to this! I’m sure I’ll learn quite a bit as I am a newbie to internet/affiliate marketing. Newbie or not, I’m also positive that people with much more knowledge than myself will pick up a thing or do. Go get ‘em, Glen! …and keep the posts coming.
Cliff
First, best of luck with your new site! I can across your article at a crucial period in my online process. So, I’ll definitely be taking a few pointers from here. Thanks
http://avgibby.posterous.com
Wow this is great & super encouraging to me! I totally believe you can do it as well and I think I can learn a lot from following this blog. Cheers!
I wish you goodluck. Just be focused, you would get there. Get links from anywhere and everywhere. I would be waiting for the result this year december hopefully
Looking forward to hearing more from you Glenn. Thanks for the education!
[...] new sites these days (I buy profitable ones, instead) but my most recent was in December, with my $1m case study. Even if I find a niche with a large audience or a keyphrase with a large search volume, I [...]
this sounds to good to be true…but everything is possible if u have the will……………
well i am 41….with no job……no money….no health……broken marriage…….depressed/suicidal……lonely…………….givenup…………….
i think money is the root cause of all………………….this opportunity can change many peoples life…………..that includes me too but i m broke and not internet savvy
“$1,000,000 in 12 Months” how old is this post?
I can wait to see the update here.
Please keep us posted…Great Motivation. Will follow up on that one!