Last month, I made $4,795.76 as a direct result of blogging here at erica.biz. Today, I break it down, so you can see where every penny I made came from, which promotions were most successful, and what you can do right away to boost your blog’s income.
At the end of every month, I tally up all my various income sources. I noticed a hugely interesting pattern when I looked at the difference between January, February, and March:
In March, I made more than 7x the income I had just two months prior. Wow. What the heck happened?
It Wasn’t That My Blog Had More Traffic…
I can tell you the secret wasn’t more traffic or more subscribers. In January, I had 22,615 unique visitors to erica.biz. In March, I had 25,703 visits–not a substantially higher number. Same with subscribers–I had a few hundred more in March than in January, but it wasn’t substantially higher.
What was the big difference, then?
Let’s look carefully at the breakdown. I officially launched Guest Post Secrets on February 1, but 3 people found it early and bought it in January. Subtracting that out, without me launching a product, my blog made $537.19 in January.
And that’s with a good amount of traffic–over 40,000 pageviews. No wonder you hear so many bloggers complain that their blogs don’t make any money. Relying on advertising alone would have left me destitute.
Tip #1: Launch a Product
In February, I launched Guest Post Secrets. That launch brought in a significant amount of money, netting me $1801.00. Not bad for a product I can sell over and over again as new people show up on my blog.
So, for February, my blog made $2601.13–a 4x jump from January. That’s tangible proof that surveying your customers and then creating a product that helps them get something they desire is the key to making a full-time income. This is especially true if you have a blog that’s not getting millions of visitors a month.
Ah…but then what happened in March?
Tip #2: Launch a High-Ticket Product!
I didn’t sell a whole lot of Guest Post Secrets in March. I didn’t go after affiliates, and I didn’t advertise it anywhere else. (I’m working on both of those this month.) Predictably, the sales died down a bit.
Instead, I launched a high-ticket product. I promoted it via a free webinar, which I called my first “Wednesday workshop.” As a test, I sent it out only to my email list subscribers, and didn’t even post about it here.
Of my ~4,100 email list subscribers at the time, 137 signed up for the workshop, and 78 attended. I delivered a straight hour of great content, going into detail about my past and answering tons of questions from the audience. (There were over 100 questions…I couldn’t even keep up with them all!)
At the end of the hour, I delivered a pitch for my first in-person workshop–held here in San Diego in June, where I work with just five small business owners on growing their businesses.
How I Decided What to Offer
The in-person workshop came together this way for a few reasons. The biggest reason was that I receive a lot of emails asking for 1-on-1 consulting. I am not particularly interested in 1-on-1 consulting at this point in time–I prefer to work on my blog or on information products. But I thought this would be fun, and heck, if no one signed up, I’d just move on and continue working on products.
After asking for some feedback from others as to how I should set the pricing, I settled on $997.00 per person for the day–and emphasized that each person could bring a business partner for free. The $997.00 price point is realistically about half of where I want to be, but I figured this first group could give me testimonials. I plan to raise the price for the next workshop, and also take it on the road in the future.
I set up a quick sales page for the workshop. (Seriously quick…I started working on it about an hour before the webinar, and finished just in the nick of time!)
Keep in mind, I had no idea if anyone would sign up. This was scary, but I figured it was better than not trying at all. To get over my fear, I kept myself busy–I worked on the sales letter and tested my webcam setup.
A happy surprise occurred when, at the end of the webinar, 4 people signed up!
The Big “Duh” Moment: Are You Making This Mistake?
It was then that I realized what the missing piece of the puzzle was when it came to making money with my blog: I hadn’t made an offer.
Looking back, it seems almost like a “duh!” moment. Sure, I had Guest Post Secrets, and that sold a lot. But some folks who read erica.biz don’t have a blog, and others have a blog and are already guest posting to great effect.
Those who wanted consulting wanted something else: personalized advice about how to break through their own barriers. By setting my price far higher on that, I didn’t devalue my own time, and I also managed to make just under $4,000 in one 90-minute webinar.
Of course, there is another day I’ll need to spend with these folks. But that’s enjoyable time for me. I love helping people, especially in person, and the workshop will be a blast.
The Big Takeaway for All Bloggers
Here’s the takeaway from all this: If you have a reasonably popular blog, you probably have audience members who want more from you. Definitely offer a product–but realize that not everyone will buy it. But also have a high-ticket item or two out there. Whether it’s personal coaching (which, I realize, not everyone wants to offer) or something–like artwork or an “everything package” of all your products–that is more unique and higher value, you need to have that bigger product.
And you need to have that product even if no one buys it…because it can help set a mental anchor that your products are more valuable.
Why Selling Cheap Products Could Threaten Your Blog’s Livelihood
I see far too many bloggers offering ebooks for as little as $2 or $5, and then offering consulting for a “special deal!” of $50/hour or $70/hour. With those prices, you’re doing yourself and your readers a disservice.
Think about how many hours of coaching you’re going to have to sell to make $4,000. You’re going to spend 80 hours of your time to make that much. And since most of those same blogs have the primary option being just 1 hour of consulting, you’re going to have to sell 80 people on the idea of consulting with you.
Since you’re selling yourself so cheaply, that $10,000/month–or whatever your blog income target is–is going to start looking an awful lot like a full-time job. But that’s only because you’ve made it that way. Start valuing yourself more and start charging more. (Hint: You attract more interesting people when you value yourself more, too.)
How to Overcome Your Big “Buts”
One of the most common reactions I get when I write a blog post like this is “But Erica, I didn’t sell a business for $1 million, so I can’t possibly charge what you charge!” First of all, (forgive the rant) but I am so tired of people using that as an excuse!
I started Internet marketing in February 2008 as a complete newbie. At Frank Kern’s Mass Control seminar in April 2008, I turned to the person next to me and asked “What’s a continuity program?” (Turns out, a continuity program is a product that is billed monthly–much like the web hosting company I created previously!)
I started this blog in December 2007. My goal for 2008 was to earn $10,000/month from it. It didn’t happen. In 2009, I was sick for 9 months and offered a coaching program that didn’t work out–mostly because I was too sick to really keep up with it. I still wasn’t making $10,000/month.
Now, it’s 2010, and the $10,000/month goal is in sight. But it has practically nothing to do with me selling my business for $1 million! Very little of my business experience from my web hosting company translates into Internet marketing wealth–otherwise, I would have been making $10,000/month two years ago! Internet marketing is a new world for me. That’s why I’m blogging about it as I go and sharing my honest truths with you.
I can happily sell consulting for $500/hour all day for two reasons:
- I believe that what I offer is worth that much.
- I have testimonials that show that an hour of my time is worth 20 times that (or more) to a motivated entrepreneur who is ready to take action.
That’s it. Nothing to do with my past. Stop using your past as an excuse. It’s what you do for others that matters, not how much money you’ve made in your lifetime.
(end rant!)
How to Do What I Did
I got here because I persisted. I doggedly refused to give up when my blog refused to “grant me my wish” of making me $10,000/month. In the meantime, I kept learning. I built an email list. I grew my traffic via SEO and guest posting. I surveyed my readers to find out what you wanted. I wrote great post after great post after great post. And finally, I made an offer…and then, another, bigger offer.
The “make an offer” part was the part I was missing. And, if you have reasonably good traffic and a decent-sized list (500-800 people), you, too, should start thinking about what offer to make. Even if you’re just getting started, start sketching out ideas for paid products, and focus on that as well as writing good content. You can start out with a smaller offer, but don’t forget to have a big offer visible on your site as well.
If you want to make real money blogging, get a product out there and start selling it. And start considering what higher-ticket item your readers will want to buy from you. Then offer it. That’s the fastest way I know of to make more money with your blog.
Recommended Reading:
- You Are Worth More Than You Think. If you’ve ever said “I just don’t have enough time to…”, this post is for you…
- 20 Ways to Make Money Online Fast. Still one of my most popular posts; these 20 ways to make money online fast are legitimate, scam-free, and can get money in your pocket quickly. Check it out!
- Blog Success Manifesto. My Blog Success Manifesto is a 62-page free ebook with 30 tactical tips to help you grow your blog faster than you ever have before. Check it out now!
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29. April 2010 at 12:13 am
Awesome to see figures, Erica! Brave, and hopefully will inspire others. (And well done on your successes! Certainly your results are nothing to sneeze at.)
29. April 2010 at 12:15 am
Dear Erica,
I love your transparent, honest approach is sharing this information with us. Thank you!
Each week I really value the wisdom in your blog and can’t wait to feature you on http://InspireMeToday.com. Thank you for your kindness in sharing this with us.
Hugs,
Gail
29. April 2010 at 12:27 am
Hey Erica,
Great post – full of excellent ideas that I will be applying to my blog once it is launched in June! I’m so excited!
I must say your blog is one of the most informative I have encountered so far … keep it coming !
Razwana
29. April 2010 at 12:36 am
Love this post! It gave me a lot to think about, as you always do. Thank you for the inspiration!
One thing that tripped me up:
“Very little of my business experience from my web hosting company translates into Internet marketing wealth.”
I agree with that logic, but you pointed it out yourself – that statement is an anchor point of value to anyone that knows you and is interested in working with you. It is an important fact, and one that you’ve closely tied to your personal brand – here, on your twitter page, etc. So it may have very little to do with internet marketing, but it has everything to do with who you are. Your business experience as a hosting provider is a part of you, and it does matter.
That said, I agree – it isn’t a good excuse. Having met you personally, you just inspire. You can’t help it really, it is who you are. Thanks so much for sharing it! *grin*
2. May 2010 at 4:01 pm
Hi Christine,
It’s true that I use that experience, and it’s probably helped my blog grow faster than it would have otherwise. I guess I just wish it translated more on the business side! But it is really pretty different, running an info product business vs. running a web hosting company.
-Erica
29. April 2010 at 12:49 am
Hey Erica,
Let me know when you develop the affiliate program. There’s some overlap in our readership. I’ll get the message out in the newsletter etc.
Off to Japan for the next two weeks. Will follow up when I get back.
Sales site looks good & 1SH are very reliable for the credit card transactions.
Ivan
2. May 2010 at 4:02 pm
Hi Ivan,
Here’s the link to sign up as an affiliate for Guest Post Secrets. Anyone can sign up; it’s free:
https://www.mcssl.com/SYS/?m=158511&c=s
The program pays $30 per sale.
Thanks!
-Erica
29. April 2010 at 1:31 am
Thank you for this post erica! This will help me achieve my long term goal to be an indie online publisher.
29. April 2010 at 2:13 am
Hey, Erica!
Losts of value on this post.
You know? I read your post and tought about my blog and where am I.
I’ve found maybe I’m trying to release my first non-free product (20€) too early, because my email list is to short (100 people)…
So, the next step was a simple question to myself: How can I boost my list? I’m giving away lots o freebies!
Just a look to this web and the biggest shiniest item I found was your Blog success manifesto + email input form.
Now I know which is my next step: make my freebies more visible!
What I am recently discovering is that simple and basic strategies and tactics are the most effective ones!
2. May 2010 at 4:04 pm
Good idea. An awesome freebie really helps boost your subscriber list. For a short but good one, try “10 …” 10 mistakes, 10 best practices, 10 things you can do to [achieve desired outcome], etc. And make sure it has a good design. Freebies that look like a Word document don’t get read or valued as highly.
-Erica
29. April 2010 at 3:48 am
An insightful post. Particularly like the idea of operating with the presumption that some of your readers will always want more from you.
And of course, *thank you* for bursting the bubble on blog advertising. Disclaimer: I run ads on my blog too, have been for nearly 4 years, but I think it’s important for beginning bloggers to have a realistic assessment of how much money they will make this way. Answer? Not much.
Dan
Casual Kitchen
29. April 2010 at 3:50 am
It’s a lesson I learned last year myself. When we launched Beyond Blogging, we added on a blog consultancy as an optional extra. I didn’t believe anyone would take (it was much more expensive than the book) and was surprised when so many did, and they continue to do so. Adding a higher value product has really worked for us to turn a decent income into a very good one.
29. April 2010 at 4:01 am
Congrats! nice to see the numbers in there—that makes a big difference when a blogger writes about this. How did you collect that money emails? By offering the Manifesto or is it a combination of things?
2. May 2010 at 4:04 pm
Mostly via guest posting and pointing people to http://www.erica.biz/manifesto — that page is highly effective.
29. April 2010 at 4:11 am
Thank you Erica for cutting through all the bull out there about what makes money blogging by showing us what is working for you. I wish we would see more bloggers be this honest.
Also, I absolutely love your Blog Success Manifesto and I refer to it whenever I make revisions to my blog.
Thanks,
Tyler
29. April 2010 at 4:22 am
Hi Erica,
As always, this is a great post. Just one thing – “4 people signed up! 4/78 is a nearly 20% close rate.” No, 4/78 is nearly 1/20 or a 5% close rate. Still respectable, but not quite as remarkable.
Keep doing great things and sharing them.
Tammi
29. April 2010 at 8:38 am
Okay. Math is not my strong point. I’ve removed that sentence.
-Erica
29. April 2010 at 4:46 am
Thanks for being so honest and revealing all that.
The lesson is never give up or stop searching for ways to be successful.
Perseverance definitely pays off!
29. April 2010 at 5:12 am
Erica, you’ve left me speechless. This kind of openness is so rare it feels wrong…but oh, so fascinating.
This is invaluable insight for a beginner. You’ve done a great service to the online community by creating some realistic expectaions for people just starting out.
This may encourage some, discourage others, maybe make some adjust their site offerings. But the bottom line; everyone is better off knowing what the real potential is.
Thank you for being transparent, we need more people like you.
2. May 2010 at 4:06 pm
Thanks! I’m pretty confident that the income side of things will take off over the next year or so. I’ll share more here as I have it!
-Erica
29. April 2010 at 5:55 am
Erica,
I strive to be as open as I can be on my blog and also in how I’m conducting my real estate investing business. I don’t like hiding things as it causes to much stress. If you are open and transparent everyone knows what your end goal is and either appreciates that and comes aboard or says no thankyou and leaves. In the end this is how you form a relationship with your readers/customers. Relationships are about trust and if your readers know why you are blogging and agree with your views a bond will form.
I just started reading a book called “Start With Why” and it’s formula for success is similar to how you are setting up your business. You start with Why you are doing what you are doing, then you tell them How you are doing it and only then you show them What (the product) you can offer.
Well done Erica!
29. April 2010 at 6:10 am
Great stuff as usual, Erica! The wealth of comments you receive shows how listening to your audience and giving them what they want is key, too!
I look forward to reading more about your success!
My best, Donna
29. April 2010 at 6:16 am
Erica,
I really enjoyed reading your blogs. You provide good and truthful insight on your struggles and lessons learned with your new business venture.
I actually look forward to reading your blogs.
Thank You for your honest approach!
Regards
Diane Griffin
29. April 2010 at 7:51 am
Thanks Erica! The transparency is refreshing and the information that you share cuts right through the bull and gets to the real nuts and bolts of what it REALLY takes to create success…lots of giving, valuing what you offer and having the GUTS to take action.
You’re awesome!
David
29. April 2010 at 8:08 am
You are one of the few bloggers that is worth subscribing to.I like bloggers who are living proof,always ready to give facts and figures,and helping to cut out all the bullshit on the internet.
29. April 2010 at 8:08 am
Actually, 4/78 is a 5% close rate. A 20% close rate would be 15-16/78. 5% isn’t bad, but 5%!=20%.
(and as an FYI Google AdSense isn’t always happy if you disclose full earnings. I’m not 100% clear on it, but I know someone who got their AdSense suspended…it’s not a big part of your earnings plan but it’s worth preserving.)
29. April 2010 at 9:19 am
Hi Mrs. Micah,
Thanks for letting me know. Here’s what Google says on the matter:
“Confidentiality. You agree not to disclose Google Confidential Information without Google’s prior written consent. “Google Confidential Information” includes without limitation: (a) all Google software, technology, programming, specifications, materials, guidelines and documentation relating to the Program; (b) click-through rates or other statistics relating to Property performance in the Program provided to You by Google; and (c) any other information designated in writing by Google as “Confidential” or an equivalent designation. However, You may accurately disclose the amount of Google’s gross payments to You pursuant to the Program.”
So, you can disclose how much you make in total, but not click-through ratios or performance metrics.
Good to know, as we are both bloggers.
Here’s the link where I found that:
https://www.google.com/adsense/localized-terms
-Erica
29. April 2010 at 8:25 am
Thank- you for such an informative post. It definitely inspires for companies like mine which is a start-up and is on the verge of building it up..
29. April 2010 at 8:42 am
Erica, It’s rare that a blog can be such a valuable learning tool. Whatever you did in the past, as you say, is not necessarily what you do now. And what you do now is give your readers honest, in the trenches strategies for them to do exactly what you’re doing. Each of your blogs is like a mini-seminar. You’re a great example to follow.
Thanks! Andrea
29. April 2010 at 10:32 am
Hey great part about no excuses, just because you’ve made money off a previous business doesn’t mean that you didn’t have a learning curve in internet marketing like everyone else. So many people look for some excuse as to why they aren’t successful. When it just comes down to the simply fact you have to work hard and be persistent.
29. April 2010 at 2:42 pm
Hi Erica – When you show the stats for the 20 ways to make $100 a day is that a separate product?
Claire
2. May 2010 at 4:07 pm
Hi Claire,
Yep, it’s a $27 product made by Willie Crawford. It pays 100% commission–Willie created the product to build a huge list of people. The $27 per sale is directly deposited into my Paypal account.
-Erica
29. April 2010 at 8:58 pm
Hey Erica I love your transparency and persistence! It leaves no room for excuses and procrastination. I realized I made the same mistake as well. Of course my list isn’t as big as yours, but I didn’t make any offer or put up any advertising (the latter was done on purpose). That’s why I didn’t make any money. I started making offers, even though they didn’t make much, but at least I know I’m on the right track.
Great job on hitting 4.7k in March! Keep up the great work. It’s a very inspiring story, thank you.
1. May 2010 at 11:10 am
Awesome! Ericka found the information very inspiring please continue to keep us informed on the ins and outs of blogging success! THANKS
2. May 2010 at 3:51 am
Hi Erica
I check out a lot of blogs but yours is possibly the only one that I read avidly (after I saw you get that round of applause on the Marketers Cruise – remember that?).
Your figures are great and, for a change, real. This honesty will grow your following and I’m forever recommending your blog to anyone that will listen
JON
2. May 2010 at 4:07 pm
Thanks, Jon! Good to see you on here
2. May 2010 at 6:56 am
Hi there! It’s really refreshing reading a blog based on experience, you really learn from it. I’m really looking forward on your next post. Can’t wait to tell my friends about your blogs. thank you for sharing!
2. May 2010 at 7:21 am
Thanks for the snapshot of your various income streams.
Rarely do we find someone as candid as you who will tell their readers exactly which of their streams of income works.
Very insightful.
Best,
-Kevin
2. May 2010 at 2:21 pm
I am really glad that you made money.
Good for you.
6. May 2010 at 10:01 am
Thanks for sharing your different financial streams. This really goes to show that you need more than one place to generate income in any business, in order to be successful. Owning a small business is not like a paycheck and you need money coming in from many places in order to keep growing.
-Joshua Black
The Underdog Millionaire
6. May 2010 at 11:14 am
As a first time visitor to your site, all i can say is that I’m very glad I dropped by.
As somebody who is just getting ready to finish my first IM niche product, I feel bad now that I’m thinking I’m so cheap.
As you said though, I’ll focus on having a funnel and having something larger on the backend.
BrandonBurgh
8. May 2010 at 8:42 am
Wow – What an awesome post. I’m looking into designing and developing a product for my blog, and this came just in time! My trick is getting over music licensing and copyrighting issues. But I know once I pass through a couple of hoops, I’ll have a fun launch!
Thanks for the inspiration here!
10. May 2010 at 12:13 pm
Erica,
It’s uncanny how Pareto’s Observation holds with your quarterly totals.
You had nine products. By Pareto you would infer that ~2 products would produce ~80% of your sales and sure enough…
Workshop = $3.988 (49.77%)
Guest Post = $2,080 (25.96%)
Total = $6,068 (76%)
If you don’t mind me asking (and without giving away specifics) I’m curious if the same rule holds for your actual customers…that is, does ~80% of your revenue come from ~20% of your customers? I ask because I’m currently looking at some data for a client and I’m seeing that very effect.
Best,
10. May 2010 at 6:32 pm
Thanks for being honest with your earnings. I know it takes a lot of hard work to market yourself to sell a product. I commend you on your accomplishments. Your facts and thoughts is why I subscribe to your blog.
21. May 2010 at 12:38 pm
All I can say is “Wow!” I’m glad I found your blog. I’ve already downloaded your free guide (which looks awesome, by the way – not just in terms of content, but the design is gorgeous – something a lot of people don’t put much effort into anymore) and have been perusing your posts. You’ve got a killer site here, and a lot of know-how to back it up.
This post was great, it really kicked my proverbial butt as I tend to low-ball price myself. Hopefully it did the same to your other (thousands) readers.
Also, wanted to give a huge shout out to MOON HUSSAIN from EXPERIMENTS IN PASSIVE INCOME, as she linked to this page in her blog post – wouldn’t have found it without her.
Thanks for the awesome info!
26. May 2010 at 3:04 am
I always love seeing breakdowns of how bloggers are making their money. It’s helps those of us just starting out organize how we want to spend our time. Thanks for this!
6. June 2010 at 4:53 am
Hi Erica
Thanks for your inspiring honesty, dispelling the myth that because you could sell your business for $1m you would automatically be successful at internet marketing. Some business principles are probably still the same, but it just takes consistent and persistent working on the right things. It’s good to see your diverstiy.
I love reading your posts and checking out your excellent suggestions, thanks for them.
29. June 2010 at 2:46 am
This post was nice i am having less unique visitors so i try to increase it any idea
22. August 2010 at 10:17 am
Hi Erica,
Have you shared with your readers what was your net take home pay after the $1.1 million? It would be great if you could respond to my question.
Also, is your blog and the things around it like speeches your main source of income?
Thanks,
Sam