This guest post is by the Blog Tyrant.
$100,000 a year? $500,000 a year? A million? These are figures I bet most of us think about from time to time. But I’m here to tell you a sober truth—something that you probably won’t like the sound of.
Your blog is not going to make you rich. It might not even pay the monthly bills.
But don’t lose hope yet. There is a (very shiny) silver lining to this article: I am going to show you what you need to do to get up to those wonderful figures. In this post I’m going to give you a few important facts and tricks that my multimillionaire uncle passed on to me; facts and tricks that translate to the blogging world very very well.
The millionaire’s advice
Let’s start this post with the advice that my uncle gave me. When I first heard it I think I probably told him to “go away” under my breath. But as I got deeper into my own business I realized how insanely important the advice had become. Especially because I learned the hard way. Let me illustrate.
My first blog was a fitness blog that I ended up selling for $20,000 after just eight months. Before that time, however, the blog paid my bills with a consistent AdSense income. It wasn’t a lot of money but it met my needs at the time. That was until Google banned it from the search results without warning, and without reason. I woke up one day and my excellent rankings for some super-high traffic keywords were gone. And so was my money.
Right at the moment my uncle’s advice came floating back to me:
You must always have a short-term source of income that pays the bills, two medium-term projects that supplement the income, and one long-term project that’s a year away from fruition. Always.
It is powerful advice that every rich person I know pays attention to (consciously or not). I, however, had totally ignored it in my youthful arrogance. I had put all of my eggs in to one basket and as such I had nothing to fall back on, and nothing to look forward to. I was in trouble.
Applying the advice: diversifying my business
So what did I do? Well I went out and cleaned toilets. I worked at a gym as a cleaner for over a year while I built up a new empire. I worked at the gym in the mornings and then came home and, after sleeping for an hour, plugged away at blogs and my other online businesses.
It was different now. Now I was applying the advice. Instead of just building up one blog, I was working on several while building small product websites. I was also working on ideas for the long-term project so that I had something to look forward to.
And this part is important. As the medium-term projects began to fall into the short-term income category, I created new medium-term projects. The trilogy of short-, medium-, and long-term must always be in play. I am trying very hard to remember that.
Why you need to diversify to be rich and safe
Your blog, as it is today, is not going to be enough to make you rich and safe. Okay, you might get lucky and be the next Huffington Post or Mashable and never have to worry about money again. But the chances are good that you’ll be like me; you’ll have to be smart about your future and your income. And to be smart you need to develop projects: one short-term, two medium-term, and one long-term project.
1. The short-term income
The short-term income is the work that pays the bills while you work on your other projects. The important thing to remember is that it doesn’t need to be blogging. It doesn’t even need to be glamorous. Like I said before, I worked as a cleaner at a gym in the mornings. It was one of the smartest business decisions I ever made, because it allowed me to still have a full work day to devote to the other projects, since I worked from 6am to 11am.
It also got me a free gym membership, which, trivial as it might seem, allowed me to work out daily and completely de-stress my system. That is a very important thing to do when you’re worried about money. Lift weights and run. If you just sit at home all day in your own company, you won’t realize how stressed you’re actually becoming.
2. The two medium-term projects
The medium-term projects are those that you’re working on to eventually take over your current short-term income. Remember, it’s a good idea to generate your short-term income from more than one source: the more diverse it is, the better. These medium-term projects should be no more than a year away from turning consistent revenue. They can take the shape of:
- product websites
- affiliate websites
- content creation deals
As they start to make money, you can put them into the short-term category and begin to create new medium-term projects. Perhaps these will come from your long-term category or perhaps you will see new opportunities that you can place directly into the medium-term area.
3. The long-term project
Your long-term project should be ambitious but achievable. It should be one of those ideas where you sit down and think about how much money it would make if only you could get it off the ground. Well, partner, the money coming from your short- and medium-term gigs is what you’ll use to get this idea running.
What I’ve come to discover is that it’s all about these long-term projects. The toilet cleaning, the short-term, the medium-term—all this is a method that gives me the finances and experience to get my big ideas happening.
Blog Tyrant is actually a long term project of mine; it earns me no income at the moment, but I have something absolutely massive planning, which will be launched in a few months’ time. At that point, the blog will fall into my short-term group.
How to make it all happen
Sure, this approach sounds good, but how do you get it to work? How do you divide your time, and how do you manage all of the different problems that arise during the process?
Here are a few of my own suggestions but I would love to hear any advice that you might have — please leave a comment and let us hear your thoughts.
1. Focus on helping others, always.
The very first thing I want to mention is that you have to focus on helping others. This is both a marketing and an ethical concern.
Why is this important? Firstly, the products and websites that do the best are the ones that solve a need in a person’s life. I talked about this a lot in my article on how to make your blog addictive. Today a lot of products are created that don’t solve a need — instead, they create a new one. Forget it. Help people.
The second reason why this is important is because if it all fails you will have no regrets. And if it succeeds, you will spend your life helping people.
2. Take risks.
When you go to invest money in the stock market, the broker will say something like “the biggest returns come from the biggest risks”. At some point you have to decide whether or not you are a risk-taker. If you want to be making $100,000+ a year from the Internet, you’ll need to take some risks. You need to risk your time, maybe some of your savings, and definitely some of your sleep. But these risks should be managed and controlled — and well thought through. This isn’t like buying a lotto ticket: it’s like making an investment in the near future.
3. Stick to a routine.
Make a routine and stick to it. Don’t deviate from it at all — if you do, sooner or later the whole thing will fall in to a heap. Divide up your day or your week into the different categories. For example, I spend the weekends working on long-term projects, the mornings on medium-term projects, and the afternoons working on my short-term stuff. It works well. It works best when I stick to it.
4. Don’t give up early.
One of the biggest mistakes I’m guilty of is giving up before I’ve seen an idea through. For example, a few years ago I bought a whole bunch of domain names with the intention of creating a little group of product sites to dominate one particular niche. It didn’t pay off right away so I put less and less time in to it. Now, when I look back, I realize that these websites would be making a huge amount of consistent money without much work at all. The problem was that I didn’t keep my long-term motivation in check.
5. Use verticals.
A vertical is a product that you launch to compliment another product that you already have. A good example of this is the iPod, which makes Apple more money from iTunes, product cases, headphones, etc. If you can use your existing projects to help launch new products, you can cut out a lot of the hard work.
Your blog is not going to make you rich unless you diversify. Darren does it, Shoemoney does it, and my multimillionaire uncle does it. If you want to have longevity in any business, you need to make sure you’re diversifying your assets so that you’re not left high and dry if one of those income streams suddenly dries up.
If you have any stories about this approach, or advice on starting new businesses, I’d love to hear them in the comments.
The Blog Tyrant has sold several blogs for large sums of money and earns a living by relying solely on the internet. His blog is all about helping you dominate your blog and your blog’s niche and only includes strategies that he has tried on his own websites. Follow him on Twitter and Facebook or subscribe to his feed for all the juice.