Minisites earning with PPC need volume to really make money

December 3, 2009

Developing minisites is still a good business to go into, but like every business we need to really think of the profits (after all we’re not doing it for the sake of doing it, we all got to live or earn of it). But one thing I learned from making money from minisites is the fact that you’d really need volume to really profit from it…

… Profit is something that a lot of people tend to forget when developing minisites, they usually see the revenues but not the profits. Like any other business the way to calculate the most basic profit is by using the formula “Revenues – Expense = Profit”. So lets see how that applies to profiting from minisites (conservatively):

making money minisite revenue minus expense profit – Revenues – Expense = Profit –

One of my minisites has earned me around $4 after 2 months that it was launched, that’s no marketing or link expenses (If there were then it could get more traffic faster and earn more revenues). My hosting then costs me around $10 / month for an unlimited and is shared between many minisites (I know its not good practice SEO-wise, but it does save a lot of money initially). So here’s how it looks so far:

$24 for 1 year revenue ($4 every 2 months)

$20 for Domain Renewal Fee ($8 / year) / Share on hosting ($1 / month)

$4 in Profit / year

So this minisite leaves me with $4 of profit each year, but that won’t be enough to even pay for the internet or the bills. But say you have a group of even just 50 minisites…

$1200 for 1 year revenue ($24 each minisite)

$520 for 1 year Domain Renewal and Share on Hosting ($120 per year)

$680 in Profit / year

Then you’re left with $680 in profits for the year and this calculation is very conservative as it is based on the 1st year earnings of a minisite. As it gets higher ranking and domain ages well it gets more traffic and revenues. Getting $10 revenues for each minisite each month isn’t impossible, so imagine if you increase that to 100 minisites?

The main thing is to really make money with minisites there has to be volume to really get the big bucks coming. What’s also great with this method is that you’ll be able to sell your domains much faster as you can justify your earnings and traffic for the domain and even command a way higher value than just being a domain. Try this method, I’ve had much success in this strategy.

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