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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.
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.
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.
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:
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.
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.