How Much Can A Home Based Business Earn?

How Much Can A Home Based Business Earn?

Posted by on Apr 18, 2010 in Home Based Business Ideas

How Much Can A Home Based Business Earn?

Some of you who are starting up a home based business are more goal oriented than others.

While some people start a home business with their passion in the first place, others want to know what they can expect to earn at some point with their websites.

There are many different niches with many different ways of monetizing so it’s almost impossible to predict what will happen with your home based business idea but we can find some averages that will help us assess the monetization potential of a new site.

These averages can also help webmasters with existing online business to better assess whether their site is reaching its potential or not.

How Much Will 100 Daily Unique Visitors Earn Me Per Month?

If we know how much we earn per day (per month) from 100 daily unique visitors, then we can better estimate how many visitors we need to reach our goals.

As I mentioned before some people want to know how much effort it will take to reach their goal. You can get a good feel for that if your start your home based business, put some good effort into building quality content and links and then see what the results are.

If for example your goal is to earn $1000 per month with your site and you now earn $100 per month with 100 daily visitors, then you know that you’ll need around 1000 daily visitors to earn $1000 per month.

And since you know how much effort you put into your site to get to 100 daily visitors, you can now gauge the amount of content and link building to reach your goal.

Two quick notes here before we start calculating some averages: you actually don’t need to put in 10 times more content and links to get from 100 to 1000 daily visitors. Your site’s traffic will increase faster than linear for a certain period of time.

For example: if you have 50 content pages and some good links and that results in 100 daily visitors, then if you double the content and the amount of links, you will get MORE than 200 daily visitors.

This traffic growth doesn’t continue forever but there is a time period of faster growth.

Also: you will earn more per 100 daily visitors per month with high traffic than with low traffic! A site that gets 1000 daily visitors will earn more than double of that same site when it had only 500 daily visitors.

(That’s what I see from my experience but “why” that happens is another topic. And it doesn’t really matter – what matters is what really happens.)

In order to calculate the income per 100 daily visitors per month, we need to divide the income per month with the factor that is a result of actual daily unique visitors divided by 100.

Example: One of my sites had on average 1466 daily unique visitors in March 2010.

That same website earned $2172 in the same time period.

1466 / 100 = 14,66
$2172 / 14,66 = $148,15

This result – $148,15 – is the amount of money that this website would earn if it would have been receiving only 100 daily unique visitors.

Of course this is just mathematical result and reality may be different for many reasons but that’s the best assessment we can come up with with simple and quick calculations.

Here are the earnings per 100 daily unique visitors per month for 3 more sites that I own:

1.$387
2.$457
3.$152

As you can see some sites are more profitable than others. Some are more heavily monetized and some can have a much higher Adsense Cost Per Click.

What these numbers tell us is this: if my site earns around $450 per 100 daily visitors, then if I get twice the amount of traffic (200 daily visitors), I’ll earn $900 per month.

But if my site earns only $150 per 100 visitors, I’ll need 5 times more traffic (100 + 5 x 100 = 600) to earn $900 per month!

I also want to mention a domain that I bought and developed it into a blog which was about pollution. I added lots of content to it and that blog now receives over 1200 daily unique visitors.

But the topic is purely informational and most visitors to that site are students looking for information that will help them complete their school projects regarding pollution.

I’ve tested various ways of monetizing that blog and the CTR is just unbelievably low. I now don’t monetize at all and just keep the info there but based on the numbers I saw that blog could have earned at most around $5 per day.

It would actually earn $150 per month on 1200 daily visitors which is 150 / 12 = 12,5. 😉

So your income per 100 daily visitors per month can plummet even into such low numbers as $12,5 (per 100 daily visitors per month) if your topic brings visitors to your site who are not interested in buying anything and are not interested in any kind of ads.

I hope these numbers shed some light and help you better assess what you’ll get for the effort you’ll put it.

You will also help if you share your income per 100 daily unique visitors per month in the comment section below which will give us better insight into what we can expect to earn from our home based businesses.

Thanks!

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    34 Comments

  1. Hey Tomaz,a bit of maths to wake us up on a Sunday morning?! Thanks for sharing.

    My juicer site works out at $80 per 100.
    This is from adsense with a negligible amount from chitika.
    Visitor number are poor at the moment due to my own inactivity.

    My travel site (www.obanargyll.com) works out at $45 per 100 – that is mainly annual paid ads with a little bit of adsense. It will earn more if I placed the adsense properly.

    Be interesting to see what similar niches are earning.

    John

    [Reply]

  2. Thanks for this article Tomaz. Just makes me realize that I am seriously under monetizing. My niche is about cake decorating, I have 66 pages right now and my earnings per 100 visitors is only $30. I only have Adsense for now. Last month I had 770 visitors. I have to admit I am a bit lazy, I only add about 2 pages a month. I know my site has potential and can earn more if I work more.

    [Reply]

  3. My thank you notes site makes about $50 per 100 unique visitors.

    My humor site does not do nearly as well earning only about .50 cents per 100 daily unique visitors. But the site is set up more for promoting my live show and publicity than an advertising income. Now that I finally have my own product to sell I think it will be more profitable. 🙂

    [Reply]

  4. My family history Web site works out to $114 per 100 visitors

    Mike

    [Reply]

  5. Right now at less than one year in existence, my site is earning $0 per 100 visitors. I need help monetizing better. Adsense has earned a total of about $60 total since I’ve had it up in November 2009. Maybe I’ll reach the $100 threshold after 6 months?!? I want to have better earnings than that!

    My site is 10 1/2 months old and I have nearly 300 unique visitors per day and have 190 pages of content, including C2 pages. I’m now at a PR2 and my Value Exchange rank is 46.8.

    I started building affiliate shopping pages a month ago, so perhaps I’m expecting sales too early in the game? I built my monetizing pages off keywords that are in demand, too.

    I’m going to ask for a site review in the SBI forums to see what sort of feedback I get. I may also pay for an hour of coaching to see where I can improve.

    Or my site may be as Tomaz mentioned earlier: The Leaping Lamp may not be the sort of site people go to with a shopping mindset (unless they’re looking for Disney Cars Toys, for example).

    This is my first SBI site and so I built it because it’s a topic that’s in demand and I enjoy it immensely, for the same reasons you built your Tennis Mind Game site. I never researched Google adwords values or any of that, but now I look into that before building a new site.

    Am I expecting too much for a site that’s less than a year old?

    [Reply]

    Tomaz Reply:

    Amy,

    Yes, when people come to your site they are not in the buying mode – they just want to learn more about the movie they’ve already seen.

    You might get some sales of those movies but even that will be low commissions. If they give you 10% of a $30 DVD, you get $3. Compare that to getting 8% of a $299 vacuum…

    Also, besides the top Adsense ad I don’t see many other ways with which you monetize.

    [Reply]

  6. My website on photography gets around 400-500 visitors per month and is monitised with adsense and clickbank.

    My revenue per 100 visitors is around $25. The adsense is pretty contistant each month and the clickbank sales vary.

    Anyone who is making more money than this, please have a look at my site and tell me if there is anything else I could add.

    http://www.digital-photography-tricks.com

    Thanks

    [Reply]

    Tomaz Reply:

    Mark,

    First, your Adsense links are brown and that’s a very unusual color for links. I don’t think that gets high CTR. Try blue variations (#0000FF, #000099, …).

    You’ll of course need to change your headline’s colors to match the Adsense ads.

    Also, your site is about useful information for photographers and people are not looking to buy or to click – they are looking to learn something for free.

    [Reply]

  7. Hi Tomaz,

    Great article. I came away with a very important point. The key to increasing traffic is more pages and more links. While I know this (as you have hammered this point into our heads 🙂 ), it seems like this is true no matter what the niche (as long as there is enough demand). This gives me confidence in my current strategy and if I keep adding more pages and links it should be possible to have 1000+ daily visitors. But only time will tell.

    There is one flaw in the monetization calculation you have outlined here, at least for me to use with my site. While I have more than 100 daily visitors, I currently am ignoring most monetization activity (except Amazon affiliate links and some sub optimal adsense) and saving it for when I reach 500 daily visitors. As a result my site is severly under-monetized for now, on purpose.

    I guess if someone has implemented all monetization options for their site at an early stage than this calculation will work for them.

    Anyways, thanks for sharing. This is highly motivational for those of us who are a long way from our income goals.

    Thanks!

    [Reply]

  8. Hello. My site makes about $75 per 100. It is a site about running (obviously) and it is something I am very interested in. Soon I will release my own ebook and I hope that boosts the revenue. Start with your passion first!

    Tomaz – How much $ per 100 visitors do you get with your Tennis Mind Game Site?

    [Reply]

    Tomaz Reply:

    TennisMindGame is one of the four sites mentioned above… If I wanted to name the sites, I would have done that already.

    [Reply]

  9. I can say that sport niches are pretty poor when it comes to Adsense. However, creating your own products and selling them through ClickBank can be profitable. Currently my sport site is earning about $10 per 100 visitors which is pretty poor.

    [Reply]

  10. Using last month’s figures, I’m making $245 per 100 daily visitors per month.

    [Reply]

  11. I think if you want to monetize by adsense, chitika etc, a product niche is most suitable.

    However, if you are doing a tutorial based niche such as learning photography, the best way to monetize is to create your own products.

    I think that’s what Tomaz is doing with his Tennis site. He sells dvd videos, ebooks etc instead of relying on adsense.

    However, it’s a lot more work and you may need to outsource more work such as graphic designs, do list building and have a proper sales funnel, not to mention doing split test and other optimization etc.

    Well, there are so many ways to make money online but I really like what Tomaz method of monetizing through adsense, amazon etc..basically you’ll just concentrate on building content (I outsource) and getting that damn link!

    [Reply]

  12. I’ll be honest: After I finished reading this article and the comments, I was a little discouraged.

    Seems to me that in order to have a profitable website, you must fit into one of these categories:

    1. You own a product based niche (like reviewing vacuum cleaners), and monetize through affiliate sales.

    2. You own a purely informational site (like teaching the mental side of tennis), and monetize through creating and selling your own products (like e-books and instructional videos).

    Since I fit into the latter category, this is going to be a longer slog than I thought….

    [Reply]

    Tomaz Reply:

    Adam,

    There are also high paying “informational” niches like financial ones (stocks, money advice, etc…), legal (legal documents, lawyers, etc.) and many others. These are purely informational sites that can earn a lot through Adsense clicks.

    Then there are niches with services (and not products) which also pay well – and you don’t review anything. (you can too) Carpet cleaning services, conferencing services, pool cleaning and stuff like that.

    [Reply]

  13. Hi Adam,

    You can sell high ticket items such as coaching services too which may suits your niche.

    Looking at your site, you seem to be an expert in helping a niche demographics of people to ace their auditions.

    How about a consultation session with you over skype etc and charge accordingly?

    You just need to run some leads and the margin is definitely high enough to motivate you! But then again, you must really over deliver in this case.

    Just some foods for thoughts…

    [Reply]

  14. Nice article Thomas. You mention the CTR is terrible on the pollution site, but has it been helpful giving your other sites a high PR, dofollow link from that site?

    [Reply]

  15. Yes, that’s why I keep it. 😉

    [Reply]

  16. Hi Tomaz

    I must say I’m impressed with your numbers, your earnings per 100 visitors. I wonder how ‘average’ they are. From my own site, I have to somewhat shamefully say that my site’s earnings per 100 visitors is more like $10 to $15 right now, but I haven’t properly monetized my site as of yet.

    Anyway, it’s great that you share these numbers. I shall use them to motivate myself to raise my earnings per 100 visitor from now on.

    Cheers,
    Steve

    PS I can also testify, from a non-SBI! site, that doubling your traffic more than doubles your earnings. Life really is easier as a home based business owner with a BIG-traffic site lol

    [Reply]

    Tomaz Reply:

    Hey Steve,

    One of the reasons why I wrote this post was to motivate people and to show them what’s is possible.

    Another is to do this calculation for all the sites you own (if you have more than one of course) and see which ones give you the best results for the effort invested.

    If I get 100 more daily visitors for a $400 site (earnings per 100 visitors per month), I’ll earn $400 extra per month, but if I get 100 more daily visitors to a $150 site, I’ll earn $150 more per month.

    That gives me a very clear picture about which site is more important to work on…

    [Reply]

  17. Thank you very much Tomaz for this very helpful information! Based on last month, one of my sites receives $87.16 per 100 visitors, the other receives $83.42. The lower site used to be higher but the main affiliate program on that site went through a sudden and drastic change recently and I had to drop them, and I”ve not yet found a replacement.

    This brings to mind a question Tomaz, which has to do with how to create sites that can provide more income? You’ve already offered some excellent advice here, such as choosing a theme that is more likely that a person will want to buy something when they arrive to the site, also studying successful sites and creating your site based on what you learned (without copying). Also to look at the Adsense figures to see what advertisers are willing to pay for keywords. Is there anything else that may be helpful? Thanks again, I appreciate your generosity in sharing with us!

    [Reply]

  18. I have had a rough 2 years, but I am currently coming in at $22.50 per 100 visitors a day. I currently only get 107 visitors a day as of May 2010. I have been using Amazon for a while and that is about 90% of my income. I just started using google adsense on my Tier 2 pages and my Tier 3 low hanging fruit pages, but they are not producing over $2.00 a day. They are not getting that many clicks either despite their location.

    One thing I have found wrong is most of my traffic goes to Tier 2 pages and my very specific computer part reviews. I don’t want CPC on my product review pages because I want them to buy the product there. Unfortunately, my low hanging fruit pages are not even getting indexed and ranked 95% of the time. I am unsure of the problem with them.

    [Reply]

  19. Thanks Tomaz, the info here is great. i have followed your tips and advive from SBI since I started Nov 2010 and really appreciate the excellent support you give people.

    Anyway, numbers; I thought I was doing well until I could see the amount others get for 100 uniques. I earn approx 50p – £1 from adsense and approx £18 affiliates a month from 3000 uniques.

    This site is my first that i started November which has a daily average of 174 unique visitors. I know many of the pages have been low paying clicks for adsense, although Im now going for the money pages.

    Im sure by the end of this year I can get this site not far from 1000 uniques a day, although doing the maths the income will not be great.

    I must be doing something wrong? Traffic is not it. If i knew i could get anywhere near $100 a day from 100 uniques I would be writing content like a maniac.

    Sorry for the ramble, and thanks once again.

    [Reply]

    Tomaz Reply:

    Hey Jason,

    Your low income is combination of low traffic (more traffic somehow earns you more per visitor / day), most likely low CPC and low CTR (not too many people click).

    The only thing you can test is the CTR. Test some different colors and see if you can improve that.

    Also, try other monetization options – aff. programs and so on.

    [Reply]

  20. Thanks Tomaz, for the advice.

    It is more about CPC than CTR. CTR is OK, not as good as some sites but Im happy with the clicks for now. CPC is low for many of my KW’s, although I have now started to work on creating pages that pay well from Adsense.

    At the moment I am kind of just focusing on building pages (content), and back links, whilst adding aff links and Adsense. Once I get to about 500 uniques a day, and see what kind of income this produces then I will look at making adjustments.

    Im sure I will learn how to get better at turning visitors into money and the point is it does make money however small and traffic grows monthly.

    I will come back to this post as soon as i get 500 uniques a day.

    Keep up your good work Tomaz, many including myself really appreciate what you share to help others.

    [Reply]

  21. Hi Tomaz,
    Thanks for the constant inspiration. My site earns almost exactly $100 per 100 visitors. Like clockwork, for every 100 visitors I add, my income goes up by $100 per month. Income is mostly from Adsense.

    I need to continue building traffic and work on other ways to monetize (daughter is going to college – yikes!). Adsense is great, but with so many new people coming to my site every day, the potential must be much higher.

    Hoping to meet you some day.
    Thanks!
    Pat

    [Reply]

  22. Tomaz,

    A huge thanks for your fantastic insight, I can not wait to implement a lot of your ideas.

    [Reply]

  23. Hi Tomaz – came back to this thread after your reminder on the Feb conference.

    Just want to say that when I read this post and comments last summer – it really got me targeting a much higher income/100 visitors/day.

    During july – income/100 visitors = approx 30 dollars/month

    Now? Following lots of testing and tuning = 98 dollars/month

    Now I’m really ready to grow the traffic on the back of those numbers – great motivator for link building. Thanks and see you in Feb.
    Mike.

    [Reply]

  24. Tomaz,

    I hope you’ll release the DVD asap after the conference. It looks exactly what I need.

    My toy site which was online since 2004 (even before the forum exists) gives me $230 per 100 visitors/day during normal season. During Holiday season (nov thru jan), it gives me $350 per 100 visitor/day in average.

    I used to only get $100 per 100 daily visitors, back when I only used adsense to monetize. Then I added chitika, and it increased a bit. But then adsense took a tank (probably around 2006 ??). Somehow, the CTR becomes lower and so does the pay per click.

    So I started playing with various affiliate programs from SAS, CJ, linkshare and the ones from individual stores. It gave me enough confidence so that one day, I tried Amazon. I didn’t want to include amazon at first, because of all of the negative reviews in the SBI forum.

    Turns out, it’s my money maker …:). In average, I get 3x money from amazon than from adsense (right now my adsense has 4-5% CTR from 15-20% in 2005, but the pay out is better than before) and amazon gives me 8% commission month after month – so the pay out is average of hard products. Other affiliate programs, on average give me 1.5x money than from adsense.

    So I used to seriously undermonetize my site. After tweaking, etc, I’m now happy with my way of combining adsense and various affiliate programs in my site and how I laid out my pages – talking about milking the cow to the max …:).

    [Reply]

  25. Thanks for sharing, Dian!

    Amazon works for me really well too, especially in the holiday season. People buy all sorts of stuff and we get commission for every purchase they make in that session.

    [Reply]

  26. Site 1: $391 per 100 visitors/month
    Site 2: $420-$780 per 100 v/m

    Tomaz: Thanks so much for this really thoughtful info. Have had this article bookmarked for a while but never actually ran my numbers. It is nice to see for Site 1, conversion is growing faster than traffic (Jan-Apr $294-$391 per 100 v/m). Means lots to forward to as traffic continues to grow, which (knock on wood), it continually does.

    Hope to see you in NYC this year!!!

    [Reply]

    Tomaz Reply:

    Thanks for sharing, Melissa! Those are some big numbers! 😉

    [Reply]

  27. Tomaz, based on your formula, I’m doing $225 per 100 visitors. Thanks!

    [Reply]

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  1. How To Create High Income Websites | Financial Freedom Ideas - [...] I showed how much an online business can earn per 100 visitors per month, most of you realized that…
  2. What’s The Average Income Of Your Site After 1 Year? | Financial Freedom Ideas - [...] shared more detailed calculations of how much can a home based business earn in my previous article [...]

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