Catching up on my email. A reader sent me an interesting question, asking me how many sites would be required to generate $5000 a month. Well, it's almost impossible to come up with a specific number because it depends entirely on how much traffic each site gets, but let's crunch some numbers just for fun.
Let's assume you want to make $5000/month in profit, before taxes. What are you costs? Domain name registration and hosting. For domain name registration, you can get a .com domain from 1 & 1 for $5.99 a year. Pro-rate it on a monthly basis and that's $0.50 a month for the domain name. Now the web hosting. I can host 50 sites for $4.95 a month from ResellerZoom, which comes out to $0.10 a month per site. So the per-site costs come out to $0.60 a month. Round that up to $1 just for ease of calculation.
So $1 a month is pretty easy to recover with AdSense earnings. In fact, I'd say it should be possible to get $1/day in earnings within two or three months if you've got good content that's attracting traffic. Let's say a month has 30 days. At $1 per month in fixed costs, that leaves $29/month in pure profit from AdSense. So one site makes us $29/month.
So to make $5000/month you just divide 5000 by 29 to get (approximately) 172. So you need 172 sites, each earning $1/day, to make $5000 in AdSense profit.
That's a lot of sites. Of course, if you can get your average per-site earnings up, the numbers go down quite quickly. Average earnings of $2/day requires only 85 sites to reach $5000/month. Get $5/day and you need only 33 sites.
I explain more about these mathematics in a free e-book I wrote at the beginning of the year. It's definitely easier to get small amounts of traffic going to a large number of small sites than it is to get large amounts of traffic going to a small number of large sites.
Think about it. This is why all those pre-built AdSense sites packages sell well. People understand the mathematics and think that deploying 100 or more sites is the way to make money. And it is. But these pre-built sites only get you part of the way there. You still need to get traffic to them, and that takes more than just recycled content.
Eric Giguere is the contextual advertising expert who wrote Make Easy Money with Google and Uncommon AdSense. If you like this posting, why not link to his blog or bookmark it as one of your favorites?
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