Fat Stacks quote from Breaking Bad by Jesse Pinkman

Income Report December 2014: $30,669 Net Income (2 Niche Sites)

This post may contain links to products, software and services. Please assume all such links are affiliate links which may result in my earning commissions and fees.

Income-Report-December-2014

Overall, I’m pleased with December’s results for 2 of my niche sites.  In fact, I’m pleased because until I actually put this income report together, I thought my net income was quite a bit less (I’m pretty bad at keeping a running tally in my head throughout the month).

Nevertheless, net profit, as expected, is down compared to the previous 3 months.  While ad revenue did increase on a RPM basis, it did not increase sufficiently to offset the increase in traffic costs.  As you can imagine, buying traffic in December is very, very expensive.

Nevertheless, my 2 niche sites on which I report incomes remained decently profitable.

Please Note:

Please note this income report pertains to 2 niche sites of mine.  It does NOT include net income from Fat Stacks or my local offline marketing clients.

Niche Site #1 (Large Global Online Magazine Style Website):

Revenue:

Display Ad Revenue:  $96,736.90

Affiliate Commission Revenue:  $4,378.91

Total revenue for site 1:  $101,015.80

I explain how I generate this revenue from these types of sites in my guide here.

Niche Site #2 (Targeted Niche Site):

Affiliate commission revenue:  $6,638.39

What really excites me about niche site #2 is that I did not have to do anything in December (or pretty much all of 2014) to generate this growing monthly net income.  I explain this model here.

TOTAL REVENUE BOTH SITES:  $107,654.20

Expenses (Both Sites):

Total Expenses in December 2014 (both sites):  $76,984.21

Net Profit for Both Niche Sites:  $30,669.99

Comments

1.  Giveaway:  In December I ran a giveway for one niche site.  I used Viral Sweep software and offered two $100 Amazon gift cards.  The goal of the giveaway was to attract more email subscribers.  The giveaway was not nearly as successful as I’d hoped.  It was not a success for 3 reasons.

First, the prize I chose wasn’t that great (two $100 Amazon gift cards).

Second, I didn’t promote it as much as I should have.

Third, Facebook no longer permitted forcing shares in order to participate in giveaways which resulted in much less viral action.

I learned a lot doing the giveaway and concluded it wasn’t worth doing again, at least for the time being.

2.  Paid Traffic Costs:  Facebook ad and Outbrain ad costs increased substantially in December while ad revenue and affiliate commissions did not increase sufficiently.  The result was lower profit margins.

3.  New Software:  I’m always trying new software.  In December I upgraded to a paid Drop box subscription. I also signed up for SEM Rush for keyword research.

Main Screenshots

Adsense Revenue

Adsense Revenue December 2014

 

Media.net Revenue

Media.net Revenue December 2014

Facebook Ads Expense

Facebook Ad Expenses December 2014

Outbrain Ads Expense:

Outbrain Ad Expense December 2014

Conclusion:

The biggest issue I must address and hope to solve for December 2015 is how to minimize lost net income in a high-traffic cost environment.  I believe the only solution will be to continue improving affiliate commissions, which continue to generate a very small percentage of profits.  However, I’m investing significantly in affiliate-oriented content in 2015 which I hope will grow throughout the year.

 Learn How I Do This:

If you’re interested in the step-by-step details on how I publish these 2 types of niche sites, check out my guides.

1.  Authority blogging guide:  This guide sets out how I launch and publish my global magazine style authority niche sites.

2.  Passive income niche site guide:  This guide explains exactly how I set up micro-niche sites designed to generate passive income.

 


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