First Income Report
This covers from day 0 until August 31.
I’m not sure if this qualifies as an income report. It really is more about laying the foundation for how the case study will be developed and how it ties PapiDaddy.com I will be releasing income reports. At least at the beginning and for the first 12 months. After attending Affiliate Summit East and talking with a couple of people I decided to give it a go.
I’ve also promised my mastermind group that I would let them see my next project being built from the ground up so this project has many facets to it. Fun project for me, learning experience for you and me, additional income for me and my family, and this is a live case study. What else could you possibly ask for?
As a matter of practice I’ve not done income reports before on any of my projects so it should be interesting. One of the benefits of publishing the report is that hopefully it will help me stay on top of things a little more. The income report will be exclusively about income/expenses related to papidaddy.com and not any other project.
It may also be a challenge to keep some of the revenue separate from other projects because not all affiliate programs or revenue streams allow for that kind of tracking, but I’ll do my best.
The last thing I’ll tell you before getting into it is how I’m going to approach the income reports. I intend to have a format like you see below with different sections for each type of activity or noteworthy event related to the site. I believe that when you keep track of more data, you’ll be able to adjust your work much more accurately and quickly.
I don’t know if I know how I’ll use this data, but I know that when you look at all the different factors affecting an outcome, you’ll be able to understand everything about that whole system a lot better. This is what the Freakonomics guys taught me and I’m sticking to it.
So here we go…
Case Study Setup & Rules
The setup for the case study is simple and hopefully remains simple. When I need to update it or change it, I will post about it and notify the email list (be sure to subscribe).
The premise is to run a blog that is profitable within the first 12 months of operation and shows steady growth, sustainability and scalability in a positive trend beyond the 12 month projection.
The audience for this would be entrepreneurs wanting to explore new revenue streams. Work at home parents that want to start their own business. Parents (mom and dad) bloggers that are struggling to make their blogs profitable. Anybody that wants to start and develop a profitable blog from scratch.
- Case study to last 12 months.
- I’ll try to make it realistic.
- Will share as much as possible without breaking law, contracts or my ethics.
- Track time spent.
- $500.00 to launch
- $500.00 to use at my discretion over 12 months, approximately $40.00/month.
- May pay bills 100% with earnings
- May use up to 50% of earnings to re-invest into project beyond initial & monthly budgets.
Ask whatever you want to know about anything related to the income or status reports.
Income Report Thoughts & Commentary
I haven’t spent any time on customization design, other than the layout of the front page using the Genesis widgets available on the theme. I can’t quite decide on a logo just yet but I intend to have it done by the next income report. All other design choices will flow from that.
I spent a few hours configuring the front page layout and re-arranging it a couple times. I’m launching with it as is now see Usage guide for more info on that. I also spent some time developing some of the widget areas, menu items and user experience so that counts as design customization I guess. So far time spent on this is about 9 hours.
Moving forward I will try to use Time Doctor to give you better reports on time.
As far as income generating channels on this site, we’ll be working through two main channels. Advertising and Affiliate revenue. You should also know that if we get picky, initially the only source of revenue will be affiliate income since the advertisments in rotation throughout the site are (as of this writing) all in-house ads for affiliate products.
Which leads me to a quick question for you. Do you want to buy some ads on Papidaddy.com? Check it out, buy one, get three free!
The first income report covers from the day of the first post, July 23 to August 31 2014. In a few instances it was too complicated to cut off the statistics at the end of August (I compiled this on 9/3). So I just ran from day 0 to 9/3 for those statistics and I indicated it as such.
As I mentioned earlier, we’re starting with $1000.00 as our 12 month budget. That means that our monthly expenses cannot exceed $83.33, unless we offset that by generating revenue.
You’ll notice that we made money prior to launch, that’s an anomaly and I don’t expect it to happen to you or for this to continue. I think it was luck that I generated sales already. Technically that would put me at a starting point of Budget + Earnings, but we’ll put those earnings to use on the first month and that income report will reflect the updated budget.
- $500 for launch
- $500 to use over 12 months
- $0.00 Additional funds to start.
- Email marketing Aweber, $20.00 ($1 trial + $19 month)
- Siteground Hosting, $3.95*
- Optinmonster, $29.00*
- Rafflecopter, $60.00
- Domain purchase, $1.99
- Backup Buddy, $10.00 (year)
- Announcement Bar, $19.00 (one time)
- OIO Publisher, $47.00
- Gravity Forms, $16.00 (199/12)
* This is listed to make the case study realistic. I am paying significantly less than you would as a beginner because I am in this business and get industry pricing, sponsorship or just happen to have these tools available to me. In cases like this, I will be using the prices anybody can expect to pay and take that into account.
Some of the amounts have been split into a 12 month period, or broken down per site even if I was required to purchase the service or product up front. This is usually the best way to get the best price.
For example, I have the 10-site license for Backupbuddy so I’m “charging” Papidaddy $10 for the year because the full price is $100.00 for one year for 10 sites. This applies to Optinmonster and Gravity Forms as well.
Aweber is tricky because I use it for all my email marketing for all of my sites and projects, I have over 15 lists there. Maybe in future reports I can split this based on percentages per subscriber. Not sure how I’ll do that, but you can expect to pay $19/month or you can get it down to like $16/month if you buy the plan yearly.
- Hosting Affiliate Commissions: $300.00
- Youtube monetization program: $00.06
- Ad sales: $0.00
- Consulting: $0.00
- Other affiliate sales: $0.00
- Expenses = $206.94
- Revenue = $300.06
- Difference = +$93.12
Most people would not be excited about making $93.12 dollars for about six weeks worth of work. On and off, I have spent about 30 – 40 hours of work prior to launching the site. Let’s take a much higher estimate and say it took 60 hours. That comes out to a whooping $1.55 per hour! People in Malaysia make more than that!
But just hang in there, you’ll be in for a surprise later on. It doesn’t seem like much, but we’re going to try to turn that $93.12 into $3,000 each month. If I can get the website to make $36,000/year I think that’s a pretty good deal.
I’m going to try to do that spending about 14 hours per week working on the site. That’s a little less than a part-time job and averages about 2 hours per day. If this works out as planned, we’ll be turning that $1.55 per hour into over $50.00 per hour ($3000.00 for 56 hours of work).
Please keep in mind, these are estimates and very basic projections. They may be way off, but they are essential for this whole plan to work. These projections give me a baseline to work from and a target to aim for. We’ll adjust as we go.
Website Traffic Stats
These are the basic numbers we are starting out with. In month 2 or so, we’ll get more into the nitty gritty of analytics. Also, I tend to keep track of two or more analytics systems. I like to use Google Analytics and WordPress stats. They are always very different from each other, but if you keep that in mind and don’t compare them to one another, they both give you really good info within their own capabilities.
These are for August only and I installed them August 14 so they’re pretty incomplete compared to GA.
- Total views: 500
- Visitors: 166
- Views per/visitor: 3.01
I have not setup any custom channels and I have not paid much attention to Google Analytics. It’s setup and I made sure there are no errors, we’ll get more into Google Analytics on Income Report #001.
- Sessions: 405
- Users: 149
- Pageviews: 1619
- Avg Session duration: 08:18
- Bounce Rate: 45.68%
Google Webmaster Tools
I think of Google Analytics and Google Webmaster Tools as a pair of brothers. One is the suave, slick and popular jock in highschool, while Google Analytics is the nerdy brother. Together they can make your website run with the best.
Social Media Stats
These are some of the figures at the time of this report. So start date up to 9/3.
Haven’t turned on any automatic or aggressive growth strategies for Twitter. We’ll tackle that in an upcoming week, maybe 3 – 4 weeks. Using it like a normal user and building some followers. I’m spending about 10 – 15 minutes per day on Twitter.
- Followers: 74
- Following: 70
- Listed: 1
- Tweets: 292
This is the trickiest of the social media channels so far because interacting with Instagram is very limited. You have to use your mobile device to upload pictures so I have to keep switching between @ThePapiDaddy and @Notagrouch. This might get tiresome overtime.
- Followers: 38
- Followowing: 59
- Posts: 37
Youtube ( up to 8/31)
Aside from the website itself, I have spent a lot of time on Youtube. I spent time developing base infrastructure like playlists and developing my descriptions. I also tried to get all the “dots” in the settings page to green, so I got the following activated:
- external annotations
- long videos
One of the key strategies with Youtube is to build engaged fans, people that want to see every video I post. I want Youtubers to follow me and engage with me on Youtube. From there, I welcome any spillover into papidaddy.com
I’m doing this with different techniques, the main one right now is to focus each video in one person, or one topic. I’ve done this with the NFL picks & Halloween Costumes Vlog as well as Vlog #4 A day in the life. — When you focus on one person, the viewer finds it easier to relate than when you split the story amongst many people.
- Subscribers: 6
- Total Views: 194
- Total videos: 7 Videos
- Minutes watched: 272
- Shares: 1
- Likes: 9
- Earnings: $00.06
- Lifetime views 279
For those of you keeping track, that comes out to: $0.00021 per video view. If that doesn’t improve, I’ll need almost FIVE million views to make $1000 with Youtube. Yikes! But don’t be discouraged, monetizing youtube videos is like icing on the cake. The main goal for the youtube channel is to generate mindshare.
What I would like to see here is increased Likes, Shares, Subscribers and Minutes watched.
I think I pretty much covered everything I wanted to tell you or show you for now. Over the next 30 days or so, I’ll be creating new content, answering your questions and tuning this project. Please let me know your thoughts on the income report.
Think I could do it better? Think I need to explain anything else? Let me know in the comments so I can take your feedback into account for the next Income report.