- June 8, 2014
- Posted by: alexmaina
- Category: Make Money Online
One of the common questions that I get about online business is how do people make money online?
Usually this has the connotation of saying that making money is an impossibility. The most that people think about online business is joining a website that gives them money for referring others in a downline or such kind of scams. But that is not the case.
One of the best things you can ever do for your online career is own websites that you treat like real estate investments. Because websites are real estate. Lets look at some of the similarities between real estate and websites
1. You have title to your property – This is the same case with websites in which you own a domain name
2. You pay rates for your property – You do the same in websites by paying for your yearly domain name and your hosting
3. Real Estate can appreciate or depreciate in value – Same case with websites. Depending on how you manage them, they too increase or decrease in value
4. You build property on land that gives you an income – When you build a website on your domain name, you are developing your online real estate to earn an income
5. You can resell your property – here is where we start talking about the business of buying and selling websites
Websites Can Make You a Real Income
If you have read a bit of my blog posts, you see I really insist on proper keyword research when setting up your website. This is because doing this will allow you to earn an income from your site. I don’t mean $10 or $20, but a real income that is also tax free.
Let’s have an example shall we using Adsense to Make money online
I’ve got the permission of one of my clients to use his keywords as an example. They will remain hidden
In the figure below we see the keywords, how many exact searches there are a month for the keyword and lastly how much an advertiser would have to pay Google to advertise (CPC)
So lets take this process step by step shall we
Supposing I want to earn ksh. 100000 a month online. This means that I will have to earn ksh. 3333 per day. Which means that I’m earning $40 a day
1000000 divided by 30 = 3333 a day
3333 divided by ksh. dollar rate of 85 = $40 a day
That is my starting target $40 a day. Is that even possible?
For me to make $40 a day from Adsense it means that I have 1 website that makes me $40 a day, 2 websites that make me $20 a day and so on until 40 websites that make me $1 a day.
Another way to look at it is the number of articles you have on your website. Each article we have said before should be earning you money. So if I’m looking at $40 a day, I need 40 articles making me $1 a day, 80 articles making me $o.50 per day, 160 articles making me $0.25 a day per article.
Again is that even possible?
So lets learn a bit about the following terms that you will need to use when doing any online business in Kenya.
Important Internet Marketing Terms CPC, CTR, RPM
CPC is otherwise known as cost per click. In other words, what it costs an advertiser to market his product using adwords. So for each click my website gets from an Adsense advert on my site, the advertiser is paying some money. In the case above for the first keyword, the advertiser is paying $ 7.89 per click.
CTR also known as Click through rate – Lets assume 100 people come to your website and see an advert. Some of them will click on it, others won’t. So if we say that your website has a CTR of 3% it means that for every 100 visitors, 3 of them click on the ads.
RPM also known as Revenue per 1000 Impressions refers to the assumed revenue you will make for 1000 visitors to your website. A good website should have more than 3 as an average. But we shall discuss this in another article.
So lets take what we have now
CPC = $7.89
CTR = 2% (I’m going to use 2% because that’s the average website out there. Less than this means something is wrong with your site)
I’m going to assume that Google will only give me half of the CPC which is about $4 per click.
For me to make $40 a day, I will need about 10 clicks per day on my article
$40 divided by CPC of $4 = 10
If I have a CTR of 2% it means that I will need 500 page views a day.
10 clicks divided by the 2% CTR = 500 Page Views
So for me to make $40 per day from this keyword, I will need to have 500 visitors a day and more to my website.
Is that possible from this keyword?
How Many Visitors Do You Get when You are Ranking?
This is where SEO becomes important and ranking your website becomes essential. According to studies carried out by various companies including chikita, the website that is ranked first gets 30% of the traffic to a keyword.
So for the first keyword, we see that the traffic or Monthly Searches is 4400 per month
I only need 500 of these 4400 which is 11% of the traffic
500 divided by 4400 = 0.11 times 100 making it 11%
From the chart above, I only need to rank in the top 3 to make that 500 unique visitor number.
So there you go. I now have my target goal. I need to rank number 3 and above from the first keyword to make $40 a day.
As you can see, the client is not targeting only 1 keyword, but several. Each page 1 keyword. So from a website of only about 5 pages, its possible to make more than $40 a day.
We shall be discussing how its possible to make your site rank in the top during the Internet Marketing 101 classes. If you haven’t signed up, sign up below.
In case you are wondering, where is this client ranking for this keyword here are the current rankings as at writing this article
The whole purpose of going having a website is to earn something from it. If you can manage it property, there is no reason for you not to make money online using adsense in Kenya. Just get out of the usual Kenyan websites and think outside the box.