Ebiznes, marketing internetowy, e-biznes
Marketing and management of Internet projects

Is E-business is reserved only for the largest?

Published on Monday, 30 March 2009 by Luke Jarzembowski

Big projects such websites or e-mail-Klasa.pl We were at one time a windfall for investors. The funds, which invested reached after several years of profits of several hundred percent. Of course, in similar studies rarely take into account the projects that have fallen, but I will not write about them. With every investment involves some risk, but whether to invest in e-business you need to risk millions?

Not necessarily. There is a simple way to create "their piece of the network", at a cost that will be profitable. With this provision could benefit everyone, even with capital of less than 10 000 zł.

Costs.

We are talking about a simple theme site, blog or website with a specific service. To start us list the costs of such investments.

  • a simple site for freelance (with graphics): about 2 500 zł
  • write 100 articles by freelancer - about 1 000 - 2 500 zł (depending on subject matter and unique content)
  • positioning for a very popular phrase for a year: about 1 800 zł (taken from the price list of a professional marketing agency, freelancer probably would have done it cheaper)

So goes over 5 000 zł investments, provided that they do not execute any work. However, we can reduce these costs, such as writing articles yourself or your site promoting yourself (saving for positioning).

Suppose, however, that the only job I want to do is find the right niche and the right people to achieve your vision. With 5 000 zł capital can be limited to commission work for you and generate thereby a passive income. Let's see what income you can achieve this.

Revenues.

I will give here an example of my simple site with diagrams sudoku http://Sudoku.BetterWeb.pl/ . In its creation lay great emphasis on automation, resulting in my work with him is limited now to generate some of the time several or a dozen editions, which will appear every week or / and to add new advertisers by the administration panel. In total, all the work I could spend one day a year or max. 50zł for someone who would do it for me.

In the above chart are shown the cumulative earnings of this site with Google AdSense. As can be seen for some time they were little, then grew rapidly, then slowed a little. However, you can say for some time maintained at a constant level in the future will be about 150 $ / year, let's - 300 zł.

Another way to monetize this site was an affiliate program sudoku gadget shop. During the year earned in this manner about 100 zł.

An important element of the website is also able to be downloaded once more diagrams without ads, for which the fee is charged by SMS. Annual revenues from this source is about 60.

ROI, or return on investment.

460 zł / year may not be a large sum, but compared to the effort (in this case, only the execution of + positioning = approx 4300), gives more than 10% a year - it's still better than the place and much better than equity funds ;) .

In this simplification did not take into account several factors that can work for or against this business:

  • the amounts are gross, that you need them to deduct 18% income tax (usually about 15%, because 20% of revenue can be a cost) and ZUSu (so in partnership programs to better capture the student or student)
  • still did not use all the opportunities to earn through this site, including the principal - advertising in printed versions of sudoku (there only publish my ad or allied services). Fails to understand the advertising links on the homepage, and other revenues from ads on the site, because their emissions started relatively recently. So far results are promising (ROI may be more than twice), but it is too early to sum up these channels of revenue.
  • amount of performance (investment) may differ from those listed above, but mostly "down", ie you can realize your idea is cheaper than presented in the above calculation, and thus achieve a greater return on investment
  • we established a lasting effect of positioning (we pay for a year, then use only a high position)
  • some amounts shown in the example above does not exceed the thresholds for payment of affiliate programs from the data, so the money tend to be "frozen" on account of creditors
  • in the above analysis does not allow for one domain and hosting costs, because with such a small scale, you can use a free subdomain hosting sponsor.

The risk.

As with any investment, the earning through affiliate programs involves some risks. The most important item is a drop in search engines, which will result in less traffic and lower earnings. You can defend against this by diversifying sources of traffic, such as buying AdWords ads and create your own newsletter, which attaches new users to the site.

Another element is to select a non-profit or not enough income subject site. I dare say that sudoku is just such a little commercial theme. Industry parties, with good quality content should generate more traffic and higher earnings. You must also pay attention to the diversity of ways of earning on such site. If I were in the above example was limited to Google Adsense I would have lost the opportunity to earn 35% of income.

The output of the investment.

With investment in the thematic website is not so that you can not "leave". When "you get tired" of her conduct, or you will see clearly that the idea of ​​"not burned", you can recover at least some of their money selling the service to competition or exposing the Allegro.pl.

Summary.

You can make money on the Internet is not for you. Do not have time to do it, you do not know on that, etc.. You can, however, treated as an investment and have someone do all the work for a certain sum, and then your income will be some kind of dividend. The key questions that must be answered when considering taking such an investment are:

  • if I have a specific topic, which this of interest relatively large number of readers?
  • how this subject is "commercial"? in many partnership programs I participate and what the commission can expect from them?
  • if I knew the right people, which could for me to write about this, create an effective web site and to position it in the search engines?

If you are not in e-business, you will probably not be able to answer at least two of these questions. Then with the help may come your project manager, who will examine the market, you will develop a strategy and use personal contacts to start your e-business.

To sum up: e-business can be an investment as stocks, commodities or investments. However, requires different skills and knowledge than such as technical analysis - useful for traditional forms of investing. This is not an investment reserved just for the richest, or for large funds with huge capital. By investing about 5 000 zł you can get service that gives 10-20% profit per year, but you have to reckon with a relatively high risk. So I do not recommend investing any savings in e-business, and the only interest in this subject as part of its investment portfolio.

Atylkuł appeared in the journal CashFlow & You, February 24, 2009.

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Luke Jarzembowski Jarzembowski Luke, author of the blog - since 2006 under the illusion that it will be rich ... ;-) But still working hard on this. It programs , blogging , and positions , creating and promoting their e-businesses . kontakt

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3 Responses to "Is E-business is reserved only for the largest?"

  1. Sales of Contents | Making Money on the blog he wrote:

    [...] My article dealt with the e-business, and was published in the magazine for businessmen and investors CashFlow & You. And here you can read it on my blog: Is E-business is reserved only for the largest? [...]

  2. Ola wrote:

    Hm ... Polemizowałabym :)
    First, if you suggest a free domain and hosting, why you count 2500 zł for producing the website? After all, you can use any free blogging system: blogger.com, wordpress.com, blox.pl, bloog.pl and others, in which the max. time the page is ready.

    Besides, it seems to me that overestimate AdSense. Personally, I am trying for 2 years on this system to earn anything, and at 3 sites, which lead me to have accumulated less than $ 100. I wait until the whole earns, pays and resign. The fact that a particularly heavy traffic I have on these pages (including about 120 hits per day), but as I see, "earnings" of 0.02 $ for 3 clicks it is discouraging.

  3. Jarzembowski Luke wrote:

    The original CMS, search engine optimized, and additional options (like Sudoku to Print - generator diagrams) as a freelancer would take just 2500 zł. The fact that they are free CMSes, but not everyone is suitable for all applications. A free blogging systems do not have even the possibility of installing their own plug-ins and layouts. Therefore, I recommend min. free hosting, where you can put towards a more tailored to the needs than the ready-made solutions.

    AdSense is not overestimating the contrary - is also not earning him "coconuts" and search for other forms of monetization. Unfortunately, in this niche (entertainment> Sudoku), it was hard for a better source of income and their service is "packed", so you have a pretty good click-through rate. CPC is not a knock, but (what surprised me, personally) better than you. Probably you put bad advertising and / or poorly they fit the theme page (it also can be improved).

    As far as attendance is my service has indeed increased, but if you are pressed a little to the positioning and AdSense optimized, certainly more than I zarobiłabyś :)

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