The DNA of My Online Home Based Business

growth-analysis

I was looking back at my company’s past performance a few weeks back, and I learned a lot of things. Mind if I share them with you?

The graph you see above is a simplified version, so you don’t see the detailed information but trust me you can learn a lot from my successes and mistakes. Notice that this graph starts in November 2005, my first month as a full-time writer and entrepreneur. The first few months were tough for me, and in February 2006 I even lost some money after my paid autosurf disaster. It took me one month to recover and from April 2006 till now my income has only been increasing.

But the real lesson is in the overall pattern I discovered by looking at my financial stats. It took me some time to learn exactly why in some moths my income grew and it other months it fell back temporarily. I also learned why in some periods my business grew by over 200% and in other months it grew very little.

The Real Measure of Online Income

If you notice the graph above I have 2 types of overall income:

  1. Active Income – The income I get when I launch a new product, or actively market my products or other people’s products as an affiliate.
  2. Passive Income – The income I get when I just let things run by itself and make no attempt at running a new marketing campaign

A lot of people in Internet marketing (and even MLM for that matter) hype up the idea of making money passively, when your previous efforts will continue to pay you for months or even years to come. But passive income is not all it’s cracked up to be. In fact if you stopped working on your Internet business today, you cannot expect the income level to be the same as when you’re actively working your business.

There’s a gap between these two types of income, and passive income is always lower.

In May 2006 I launched Chapter-M which was my first successful product online. That raised my active income for the particular month (period 1), but soon after the active income level dropped as most people will tend to buy your product on the launch day itself, or within the first 30 days. However, if you do things right your product will continue to sell at a lower rate for a long time afterwards, which means that you’ve now raised your passive income level.

Same thing in August 2006 when I launched WordPress Adsense System and had my first thousand dollar day. The income rose again in August but the next month it fell to the residual income level. But this is a good product, so it continued to sell and added to my passive income as I didn’t really actively market the product beyond the first month.

Slowly, both my active income and passive income started to rise, as my WordPress tutorials blog and blogging forum started getting more traffic and my mailing list started to grow. With a bigger mailing list, I could promote affiliate products and make more money. Throughout September 2006 till March 2007 (period 2) however, I created no new product of my own, barring a few simple stuff here and there, which was more of a list-building exercise than money-making quests.

But now the machine was running smoothly, so without big campaigns my income grew and I believer will continue to grow a the residual level for months to come.

In April and May 2007 (period 3) I launched Easy Blog Traffic and Internet Millionaires Club, which pushed my active income level up again to the USD10,000 mark.

How To Grow Exponentially

There’s a few lessons I learned from this:

  1. Focus on creating new products – If you want to increase your income fast, you must continue to introduce new products and create new sites. If you don’t your residual income will grow slowly, but if you do you can raise the bar quickly and be earning at a different level altogether!
  2. Residual income isn’t 100% hands-free – Residual income still takes some of your time. Sometimes you’ll need to update a website or product, fix bugs in your software or boost your SEO to keep up with the times. If you completely abandon them your residual stream will eventually dry up
  3. Take your time to plan and create – You can decided to just write an ebook one day and hope that people will buy it, but if you want to make money from that ebook for a long time, you need to make sure you do it right. Alexis Dawes has an excellent guide at DesperateBuyersGuide.com that teaches you exactly how to create products with high value. If you take the time to plan, you always end up with a winning formula.
  4. Don’t get distracted – During period 3 I got distracted with trying a lot of different things, and I started a couple of new blogs that sucked up a lot of my energy. Instead, I should have focused on creating more information products on related topics / niche markets so I can capitalize on the resources that I already have
  5. Focus on constant traffic – Tie up your email list with your blog, your forum, and any other site or service you have. Make sure you get constant traffic from search engines (both free and paid) so that you’ll always have new people looking at your product or offer.
    • Doing JV promotions is great but when they hype dies out its really up to you to make a product successful by getting your own traffic..
    • If you only depend on other people to help you market your stuff, your income level will be extremely volatile, with a bigger difference between active income and passive income.
    • You don’t want to spend every month coming up with a product du jour and hoping others will promote them for you…
    • The reason I managed to increase my income during Period 3 when I had no active marketing is because I have managed to get about 30,000 visitors per month to my blog and products using many different traffic generation methods by myself..

Well, that’s about it for now although I can share a lot more from just the one graph above.

If you cannot draw a graph like that for your own business, I suggest you set aside a few days to get your financial information on track. It’s no use investing more time and money into your business if you don’t really understand the DNA and driving force behind it.

Post Level Monetization For Better Blogging Income

Most bloggers today fix one or two monetization methods for their blogs, and expect to maximize their income from blogging. But the truth is, it’s better to monetize each blog individually if you don’t mind the extra work.

This is due to a few key reasons:

  • The most profitable area in any blog is within the content itself
  • Any click-based income generation method placed away from the content area into the navigation area becomes less effective
  • Any impression-based monetization method placed in content areas are a waste of resources

Here are some ways I monetize this blog:

  • By driving traffic to my own products
  • By driving traffic to affiliate products
  • By maximizing clicks on Google Adsense
  • By selling text link ads

Therefore, if I put Google Adsense (click-based) into areas not within or near the content, you will not get as many clicks as possible. If I put Google Adsense and affiliate links in the same content area, some of my visitors will click away at Google Adsense and the others on the affiliate link, and I might be missing out of better affiliate commissions by just removing Adsense from that particular post itself.

The point is, there are many ways to make money from blogging but you should not use all at once, as this will reduce the maximum potential of each post or article on your site.

Here’s how I do post-level monetization:

  1. Decide before you write – Before you write, decide what you want to do with the post. Are you pre-selling others on an affiliate product? Are you building buzz for your next product? Are you just writing content to benefit your readers? If you just decided to cover a topic because it’s beneficial to your readers but can’t find a good affiliate program for it, by all means put in one or two Adsense blocks into your content. If you’re trying to sell an affiliate product, do away with Adsense or other stuff that may distract your visitors from clicking on your affiliates links as much as possible.
  2. Use Adsense Deluxe – Adsense Deluxe allows you to place Google Adsense codes individually into your blog content area, and you can place different ad formats manually anywhere in the post. Of course this is more work that just hard coding the ads into your WP files, but it tends to get a better click-through especially if you place it near images, videos or other eye-catching items in your content.
  3. Use good tracking systems- Use an affiliate tracker like WP Cash Links to manage your affiliate links from a central location. If you don’t do this early on, when your blog gets bigger it’s going to be such a hassle scanning your content to change or remove affiliate links. For tracking Google Adsense, you may want to use XXX
  4. Plan your navigation areas – A lot of money can be made by just putting impression based ads on your navigation are, but not all type of ads are going to make you good money. Text Link Ads is a great way to make money by placing other people’s links on your blog’s sidebar etc. Either way, make sure you remove all impression-based or link-based monetization codes from within or around the content area and place them somewhere else, because these are not dependent on people actually clicking on something.
  5. Review and make changes – The catch about post-level monetization is that you must review and improve on your performance constantly. From your tracking, you can see how each post or content in performing. If you’re getting a lot of clicks on an affiliate product (at least 100 to be accurate) but not making any sales, you may want to cut down on the number of links in that post and insert Adsense instead. If your Adsense CTR is low, maybe you could try a different format or add in some images and videos above or below the ads themselves to make them stand out more. A lot of these strategies are already covered in my ebook, WordPress Adsense System

However, not all bloggers like post-level monetization as it means you’ll need to spend at least some time deciding how you’re going to make money from your post. Bloggers who write a lot of content day in and day out sometimes just prefer to focus on writing, and there’s absolutely nothing with that.

It’s definitely not for everyone, but if you can’t write as regularly as other bloggers in your industry, you may as well figure out how to squeeze the most amount of money from every post you write.

The Power of Mastermind Groups

This is a podcast I did with Lasse Rouhiainen on the power of creating your own mastermind group.

If you want to succeed in your online business, you should create your own mastermind group as soon as possible. From my experience, I will not be earning as much as I am today if I didn’t know some important people in Internet marketing who helped me a lot throughout last year and this year as well.

There’s a difference between networking and masterminding, listen to the podcast to understand this, as well as how to reap the most amount of benefit from a mastermind group.

Using Aweber Instead of Feedburner on Your Blog

Most bloggers use some kind of RSS subscription service like Feedburner to manage reader subscriptions. Using Feedburner allows a reader to subscribe directly using “feed readers” like Google Reader and Feedblitz, or users can also choose to receive blog updates via email.

Feedburner is great for:

  • Providing an easy way to subscribe to / unsubscribe from your blog
  • Providing basic reports on your web traffic demographics
  • Providing extra RSS tools via “Feed Flares” that build interactivity and embeds several important functions of social bookmarking

However, Feedburner email subscriptions have several limitations:

  • You can only email your blog’s content to users, exactly as it appears on your blog
  • You cannot send other commercial email to your email list
  • You cannot segregate / manage / transfer your email list

For my ProfitBlogger blog, I have been using Aweber’s “Blog Broadcast” feature from the very beginning. This is because I prefer to create an ezine format for my broadcast, where I group together several posts and also add in other related content from the forum and put in some links to my products.

I can also use custom HTML for my broadcasts, and here’s how a ProfitBlogger Ezine edition looks like:

aweber-blog2

You’ll notice that I can manage and divide my content in a more presentable way, while also adding some custom messages anywhere in the email itself.

aweber-blogHere’s some characteristics and advantages of using Aweber’s broadcast service:

  • You have 100% control over your email list and you can send them any message / email you want independent of the content on your blog
  • You can broadcast individual posts, or manually group several posts at a time.
  • You can also choose to send out a summary of the posts, or just the headers and link to your blog for the complete content
  • You can automate the broadcast, or you can send it out manually. Sending out manually gives you the opportunity to review the content and also add in other stuff like ads and promotional messages.
  • You can choose to broadcast only certain categories in your blog, by using the category feeds
  • You can archive your email broadcasts, and obtain an RSS feed for the archive, provided by Aweber themselves

The only issue here is that Feedburner is free, while you’ll need to pay $17.00 / month for Aweber. However, Aweber is a complete mailing list management tool, not just a blog syndication tool like Feedburner.

If you’re just writing and building a blog, and you want to monetize your blog with Google Adsense, Kontera or other ads, you should go with Feedburner as it’s more universally accepted as a reliable indicator of a blog’s reach and popularity. A lot of bloggers advertise the amount of RSS readers they have using Feedburner’s additional tools right at the top of their blog to attract advertisers.

If on the other hand you’re not blogging for advertising bucks, choose Aweber. For example, if you’re an author or trainer and your money is made when someone buys your products or attends your events, create an Aweber opt-in form like the on you see on the right hand column of this blog and offer something of value to encourage people to sign-up.

You can then insert autoresponder messages into Aweber to follow-up with your subscribers, while driving traffic to your blog at the same time. You won’t need to show off your opt-in list, because you’re not interested in advertisers or Google Adsense.

By using Aweber, you will receive much more flexibility in terms of sending out promotional messages and special offers for your products and events to your subscribers.

Sign-up for Aweber here

2 Days in "Sin City" Las Vegas

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At the Venetian Hotel, a replica of Venice complete with replicated Roman architecture  and projected blue skies. It’s amazing how one guy decided to create his own Venice in the middle of a desert, and actually made it into a million-dollar tourist spot.

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Stretch limousines are everywhere in Las Vegas. If you’re a “high roller” in any of the casinos, you get the limos, the private jets, the sexiest waitresses, the best rooms and the best service. If you’re like us, you can still look…

In Las Vegas, everything is planned to make sure you spent the most amount of time and money in the casinos. In fact, most of the revenue here is from gambling, so it’s not surprising that the hotel owners want to maximize their revenue. You cannot get to a restroom, buffet hall or other attraction spots without passing the casino. Exit points are also reduced to make sure you don’t leave the casinos too early..

DSCN1065 Street art like the picture of Spiderman’s eye made from spray paint, is extremely interesting to me. We actually watched the artists along the strip make these from scratch, and the experience itself was amazing. It was too bad that these painting are quite fragile, otherwise I would have bought a couple of them. Each one was selling for only $39.00.

I didn’t gamble much in Las Vegas, I just played a couple of quarter / dime slot machines and I even lost about $15 at those. I just wanted the experience of doing something in the casinos.

This is truly a place to be if you have millions of dollars, and want to spend it in a hurry. Believe it or not, there really are many people like that. No one wins except the house, and people know that. But the thrill and possibility of actually winning a fortune is enough for most millionaires.

Yosemite National Park

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The Yosemite National Park is one of the largest parks in the US. The beauty of Yosemite is carved from centuries of glaciers that split the landscape into two and made these steep cliffs. Eventually the glaciers melted, and today there’s a huge U-shaped valley where it used to be. Some of the famous rocks here is the “Al-Capitan” and the “Half-Dome”.

 

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Yosemite park has about 40 forest fires a year, cause mostly by lightning strikes and other natural causes. In spring, the ice melts and you get streams and waterfalls. While we’re there however, it’s late summer and most of the water has dried up.

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Yosemite was breathtakingly beautiful, and I have never seen landscape like this before. We wished that instead of sitting in a bus, we could have rented a Harley and just ride all the way there and back.

World Internet Main Event Day 4

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Michael Ambrosio is a really nice guy, and he’s genuinely friendly. Michael’s got 2 kids who want to be rockstars – I can relate to that since I wanted to be a rockstar myself.

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Dr Claude Windenberger, (www.AskDrClaude.com) who was a part of Stuart’s charity teleseminar. Dr Claude focuses on personal development, particularly in positivity, positive energy and positive thinking, with a twist. We chatted quite a while about all these concepts, and I discovered that Dr Claude has been in the industry for over 10 years.

And guess who else decided to drop by?

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John Reese himself, less than 24 hours after launching his new blog traffic service called BlogRush. It was great to finally see John Reese in person though he seemed a little exhausted.

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So it’s goodbye to Mariott and the beautiful, chilly weather at Burlingame, CA. We headed to downtown San Francisco to get another hotel room, and the following day we’re starting on our guided tour of California.

Next we’re on to Yosemite, Las Vegas, Grand Canyon and a few other places before we fly back to Taiwan and then back home to Malaysia..

World Internet Main Event Day 3

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Not much pictures of Internet marketers today – instead here are some of the pictures I didn’t upload before.

We rented a Mazda 6 for a day, which comes with GPS. Having the GPS certainly made life easier for us to get around! Unfortunately for me my driving license expired just a few days earlier so Melvin and Vince drove…

Damn I wished I renewed my license BEFORE I got on that plane!

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Yum yum, our own personal chef making some tasty quesidilas…

We had lunch at a Mexican restaurant called “El Amigo” and the food there was excellent. This is the real deal, and I thought I knew what Mexican food was all about after eating in Malaysia. We had some fajitas, enchiladas, and a whole lot of other stuff I can’t really remember..

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And not to forget the margaritas :)

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We also found some time for some shopping, at Gilroy Premium Outlets. This is a massive chain of super-brand stores in one central location. You can get ANY brand name item here, usually at a lower price than anywhere else in San Francisco.

We noticed something about American architecture – they like to build single-storey shops instead of shopping malls like in Malaysia. The stores are usually huge and unique, each store having it’s own exterior and interior design. So the landscape is filled with low-rise buildings scattered over a huge area, with lots of open air parking lots. You don’t have to circle the parking are five times and stalk people to find a spot!

World Internet Main Event Day 2

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Yummy… one of the things I rally loved about San Francisco is the great food. I mean just look at that, awesome roasted pork ribs was so huge I had to share it with Melvin. Food here comes in extra large helpings and although I’m a poor eater in Malaysia, I have no problem finishing my food here.

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Just 5 minutes walk from Mariott is a restaurant called “The Elephant Bar” – and that’s where we went for the past 2 days. There’s so much great food here, we didn’t mind waiting for 15 minutes to be seated.

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Here’s Dan Moses from PageSwirl.com and ProTrackerPlus.com – I’m Dan’s subscriber and past customer. His PageSwirl program is a free tool you can use to rotate ads, links, and even create co-op ads if you’re in the online MLM industry. ProTrackerPlus is a split-testing software that you can use to track ROI, ads ad almost everything else in your online business.

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Jeff Wellman from LayoffYourBoss.com – Jeff is Keith Wellman’s dad and trust me if you didn’t know that you could have mistaken him for Keith’s elder brother. Jeff’s full of energy and he’s really great to have around. I heard that Jeff’s product sold more than 10,000 copies…

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Alejandro Reyes, a friend of a friend, and past of Simon Leung’s Adwords team.

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Odinn Sorensen from ZeroEffortGraphics.com

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The Mulac family, Stephanie and Greg (top), Morgan (four) and Marina (six). Go to 90PercentAttitude.com for more information on this amazing Internet marketing family.

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Former Google employee turned Adwords Optimization guru, Simon Leung from AdwordsOptimization.com shed some light on how to optimize Google Adwords for your business. Adwords is a great way to get traffic to your sites, but if you’re just getting into it today, please do get a book or attend a seminar about it or you may end up losing some money in your trial-and-error process!

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Kristi Sayles (left) from TalkWithExperts.com – Kristi did an interview with us on making money from firesales, and you may see much more of this dynamic woman especially since she’s considering doing Internet marketing full time.

Paulie Sabol (right) is part of the World Internet Main Event team.

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Toki Tover from AffiliateListMagic.com from San Jose, California. See also, TokiTover.com

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Michael Cheney from AdsenseVideos.com who is from the UK by the way. I knew Michael Cheney when I exchanged links with his Senority.co.uk website, which goes to show that every contact you make in your Internet business is extremely valuable!

So ends day 2 of WIME :)

Actually there are a lot more pictures, but I’ll just show you the important ones tomorrow.

World Internet Main Event Day 1

Marina Mulac is probably the youngest Internet marketer in the world, at just 6 this year. Together with her sister Morgan and some help from mom Stephanie, she recently had a “Mommy’s Birthday” firesale that made over USD8,000 and helped her raise money for a new motor home..

Robert Puddy from UK, owner of LaunchFormulaMarketing.com

 

The guys from AdwordsBootcamp.com 

Harris Fellman a.k.a “Sal” from SiteStealer.com

Mike Filsaime and Tom Beal were excited to see the guys from SendUsTo.US – and we were more than excited to see him!

 

Michelle Galvin from MikeFilsaime Inc was there too..

Jason James from AVRiches.com and UntoldMarketingSecrets.com