How Much Money Can a Website Make you?

How Much Money a Website Can Make?

by Roman on December 14, 2008

Congratulations everybody – as of today Financial Jesus is exactly 6 months old!

Running this blog has been one of my favorite hobbies during this time but  I have never began to think that it could be something more.

Some time ago I got an email from an advertising company asking about how much money Financial Jesus charges for putting ads on our blog.

This got me thinking.

What is the maximum amount of money this website could make with my current amount of visitors?

In order to find the answer I had to calculate how much money an average visitor of Financial Jesus makes me :lol:

In November 2008 FinancialJesus.com had 13 147 visitors and my Google Adsense revenue was 28.2 dollars. (The only ads we have are on the menu and on 3 posts that are ranking high in Google  – compared to established websites this is about the same as not having ads :D )

Calculating the average income per visitor

To find how much each visitor makes you on average you have to do the fallowing calculation:

Average income per visitor = total website revenue / total number of visitors

In our example the average income per visitor is $28.2/13 147 = about 0.00214 dollars.

This means that whenever someone visits my website I will always make $0.00214- even if the visitor never clicks on an ad. It also means that in order to make 1 dollar Financial Jesus needs 468 visitors.

How much is someone else making in your niche?

Estimating competitor’s monthly traffic

This is the tricky part – you need to find an established website that has a similar topic to yours and that gives out details about their traffic and income. This data is often unavailable but it is possible to get some educated guesses from traffic estimation services like TrafficEstimate or Alexa.

Estimating competitor’s monthly income

Albeit more difficult – it is also possible to guess a website’s revenue. This is easier with larger websites that generally sell their ads directly to advertisers and who usually have their ad rates up on a special page. If there are no Google Adsense ads then you are in luck – simply count how many ads does a website serve and multiply them with the ad prices. This should give you a pretty good ballpark figure on how much a website makes. If a website runs ads from Google or other contextual advertising programs then I’m afraid you’re out of luck – it is very difficult to estimate how much money they make.

Example Calculation

For my calculations I used JohnChow.com. Our topics are only about 25%-30% the same, but thanks to John’s monthly income reports I know for sure that in October 2008  he made $34,350.93 and from his advertising page I learned that his website has over 200 000 visitors per month. Everyone knows that John’s blog is one of the biggest money making machine’s in the blogosphere, so I use his website as an estimate on how much Financial Jesus could make in a month.

By doing the above calculation with John’s numbers I find that on average he makes 0.172 dollars from every visitor.

$34,350.93/200.000= 0,172 dollars per visitor

Compared to the 0.00214 dollars per visitor that Financial Jesus makes, JohnChow.com is over 80 times more effective in turning visitors into money. (You get this number when dividing your competitors income per visitor with your own – in my case 0.172/0.00214 = 80.4).

If Financial Jesus would be as effective as JohnChow.com in turning visitors into money it would have made 2267.28 dollars in November 2008. (You get this number by multiplying your real income with the number your competitor is more effective than you – in our case $28.2 x 80.4 = 2267.28 dollars )

Conclusion – You can make decent money without a lot of traffic

By adding more revenue sources and ads it is possible for a website to dramatically increase its income. If FinancialJesus.com would do exactly what it has been doing but would also try to monetize itself then it would be possible to make over 80 times more money in a month than it has currently made – while 28 dollars a month doesn’t seem like much, 2267 dollars looks a lot better!

Its natural that getting the kind of efficiency that the big players have is going to be a difficult goal to achieve, but it is also true that any rise in a website’s efficiency is a great thing – while making over 2000 dollars a month could seem impossible, I am certain that increasing FinancialJesus.com’s efficiency 40 times and making 1000 dollars a month is something I can achieve in a few months.

Think about it!

How much money are you leaving on the table? How much money are you practically throwing away by not making your website more efficient?

By doing the same calculation I did, it is possible for you to estimate how much money a website can make.

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{ 8 comments }

MoneyEnergy February 6, 2009 at 12:32 am

Good stuff, congrats. I know it took me about 4 months to make it up to the first minimum Google payment…

do good February 6, 2009 at 5:00 am

There is one flaw in your logic that is highly important — high paying advertisers won’t pay to advertise until you become a “go to” site in the niche. You can never make as much as JC because you can’t attract the advertisers willing to pay big money due to the lack of traffic. That is why building traffic is so important.

I’m not saying that you can’t make $1000 a month – that is actually pretty easy to do if you put in the time and effort. I’m just saying that optimising makes a lot more sense when you have a lot of traffic – when you don’t, your focus should be 100% on getting more traffic.

Roman February 6, 2009 at 5:34 am

I am totally agreeing with you – currently I am trying to grow my RSS numbers and hopefully it will have an effect on the overall traffic as well. To date I have not had great success on selling direct ads – while I haven’t made an effort to sell them not a lot of people have been interested in buying them as well. I guess the reason is a mix of my lack of initiative and the small size of my blog.

I am currently concentrating on writing at least 1 article per day in February – article writing consistency has been something that I have struggled in the past but thanks to changing my daily routine I am starting to get the hang of it – instead of writing the new article as the last thing during the day it is now my number 1 priority in the morning. It seems that this small change is having a great effect on my blogging habits.
I am also taking your advice on starting a number of websites – my second site should be up and running by the beginning of next week.
Thank you so much for your insights – hearing the thoughts of someone who has gone through this already is priceless!

Roman-J February 9, 2009 at 5:11 pm

13 147 visitors a month. That great! I wish I could get those kind of visitors. You must be doing something really right.

I got to keep looking around on this site to see whether you reveal how you are getting all those visitors.

BTW, I like the way you put your numbers on the table for all to see.

Roman February 9, 2009 at 11:55 pm

For me the problem is turning visitors into ad clicks. They hardly convert…

Manoj Kumar February 28, 2009 at 6:57 am

Thanks this nice info about the adsense earning, really great, thank again

Satya Prakash October 22, 2009 at 10:01 am

I could not get how to calculate the amt of money I can make ?
I think you just compared with similar sites and guessing I could make that much. right?

Roman October 22, 2009 at 11:34 am

First, you need to calculate how much an average visitor makes you money.
To do that, take the total amount of money you make on your blog during 1 month and divide it with the total number of visitors to your website during the same time.
For instance in September I made 89 dollars and had 25 000 visitors. This means that on average I made 89/25 000=0,00356 dollars from every visitor.
I also know that a famous blogger John Chow makes 0,172 dollars per visitor. This means that if I will make my blog as effective as his blog, I would make about 0,172 x 25 000=4300 dollars every month.
So just take your monthly number of visitors and multiply it with 0,172 and you will get what is pretty much the maximum that anyone makes.

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