I was curiously running some numbers this morning and I’ve decided to share the results.

If you don’t know already, I’ve sold my web application development business and I’m now in investment mode.

My next simple plan is to start acquiring sites to build a different – diverse portfolio of investments and new revenue streams. My thought was to throw $10k at 4 sites to simply start making $4k a month – a livable income, but I have a livable income already and some, so instead I might acquire smaller sites and more of them to achieve the same effect, $4k per month revenue.

However, I’m going to do it in such a way that almost anyone who has a fulltime income can do – if they can find some disposable income every month to set aside to invest that is.

Why? Well finding sites that are in the $10k range isn’t easy, there’s not as many around as there are $1k sites, so it’s slow going and slim pickings. Other reason is that I’d like to acquire a wider range of sites and see if we can’t network a few together, do some link building campaigns and build the traffic and revenue on them. If we can we might sell (flip) a few of them along the way down the track to speed up some revenue growth.

Ok, so here it is - the plan from $0 a month to $4k a month in 14 months.

What you will need: An endless stream of money, some internet skills and a server.

When I say an endless stream of money, you need to at least be able to set aside $250 a week - $1k a month, that’s like $35 a day, every day.

If you can’t do that, then you’re going to take a whole bunch longer to get there, also, a starting bank of $5k – which isn’t all that much cash, borrow it, steal it, sell something to get it, I don’t care… ok well don’t steal it, but just get it.

So the idea is simple, take your $5k, spend the whole $5k on a site that’s making $500 a month – shouldn’t be too hard, most sites sell for 10x profit. Or buy 2 sites at $2,500 each, either way, spend your $5k to make $500 a month.

Next month, take your $1k you’ve saved, and acquire another site making around the $100 a month mark.

The next month, do the same again, take your $1k and buy a site making $100, BUT, you should have in the bank $1100 from the last 2 months of revenue from your existing investments.

Take that cash and buy another site, so on your 3^rd month you’re spending $2k on sites, not the monthly $1k.

Next month, same again, buy a site with your $1k. By this month you should be making $900 a month from your investments, and the end of this month you should have had $800 from last month, so next month you will have $1,700 in the bank to spend.

So next month pony up some more dough and drop your $1k + your investment revenue, with some luck you should have some growth by now in the sites if you’re working on them (which you should be), so this month – month 5, drop $3k on new sites.

This will leave you now making $1,200 a month in revenue. I think you get the picture now.

So in a little over a year, you should be sitting on $4k a month. With some luck, if you are working on the sites during the time you should be able to build more revenue by increasing the traffic, try and acquire sites that complement each other so your overall traffic can grow.

By the end of all this you might have over 15 sites easy, but, along the way there’s always the option to sell some of them or consolidate them down to less, just as long as the revenue isn’t effected.

A good strategy might be to pick 2-3 niches, pick up a forum for each that has users and traffic already, and work on picking up sites that would be relevant to those forums so you can leverage the sites to drive more traffic to the forums – thus building more members and more returning visitors, and in turn hopefully more revenue along the way.

Now that I’m back in acquisition mode, I’ll probably be blogging about lots of dot coms that are for sale! Since most of my free time will be devoted to finding some that I like and would be interested in buying…

As far as a sustainable site goes, things that I’m not interested in are proxies, image hosts, free hosts, clickbank affiliate sites, PTC sites, and directories. Sure they all can make money, some do quite well, but when buying one not building it from scratch, you really need to be careful about where the traffic is coming from, how sustainable is it, and will it be switched or turned off after the purchase, the traffic could easily be fed from their other sties they are running.

The other thing is, proxies, free hosts and what not often get banned from ad networks, so revenue options can be limited – as can be growth.

OK, so unless you’ve not read my last post, I’ve sold my last fulltime business, and now I’m starting the planning of my next ventures.

Since I’m debt free, have been for 10 years, the cash isn’t going to pay loans, it’s just cash to invest, so with this extra cash I’m going to do some things that I enjoy.

The internet is my life almost, so I’m going to get away from it more but I’m also going to get back into web properties and web business, I think I’ll start by buying some dot coms that have profits of the $1k a month and up mark, and delegate the operations and management of them to a new staff person I’ll take on.

I have the advantage of being in Thailand, so a fulltime ‘web guy’ will set me back about $380US a month, I’ll track him using things like rescuetime.com, and I’ll check the sites and what not to make sure things are running smooth still from time to time. I’ll try to pick up a few sites that interest me, all with revenue and hopefully revenue of about $1k a month and up, usually sites like this sell for 10x profits, so $10k for 1, and I’ll try to pick up 3-4 of them, it’ll take some time because I’d prefer some quality sites, not random proxy sites or short term duds.

I’ll probably spend some time working on the sites and working on a plan to build them up more, some marketing plans and future development plans, see if we can grow the traffic and revenue, and then in 6-12 months maybe sell them? Maybe keep them, who knows, just have some fun trying to grow them and see where it goes from there, it all really depends on what sites I can pick up.

And for offline business… well that’s a whole post on its own…

I think the reason entrecard is as popular as it is right now is because of the ‘dropping’ that goes on.

People run around dropping cards to A, boost their credits, and B to gain some clicks back from having their card left in other people’s ‘drop list’.

People don’t mind so much having people drop and run, because it boosts their traffic a little, but is also does give exposure to people who otherwise have no reason to visit.

Being able to earn credits for dropping and being able to drop to your heart’s content stimulates an economy of credits.

On the flip side of that your blog is ranked based on the number of drops on average over a week x2. So having lots of drops gives you a higher ranking on their site.

Having lots of drops on your blog isn’t a bad thing either, it gives you a higher rank, some other blogs that DO have more traffic but less people that use or drop entrecard don’t rank as high as your blog may because you might have more people coming to drop cards.

Which again isn’t bad, the rankings are skewed, but that’s the point, to give the lesser blogs more exposure and to try and share the traffic around a bit more. It’s also an incentive to the blog owner who does have more traffic to promote entrecard more to boost their rank inside entrecard, again, this is a win for entrecard, more exposure for them.

Now, what they have done is changed the calculation of credits to advertise on a blog.

Before to advertise on here for example it was 150 or so a day, I don’t get a lot of entrecard traffic, but I do get around 200 unique visits a day, and I have gained new readers from having people visit from entrecard.

Right now it’s 2 credits to advertise on my blog. So they have totally killed what my blog was worth simply because there’s no big queue of people waiting to advertise, there’s no big queue because I decline ads to try and keep some quality and relevance, so right now I have to forgo quality and relevance in order to get my rank back up.

Is this better or worse?

Well I know why they have changed it, they want to stop the ‘spam‘ of people dropping everywhere to gain credits, they have forgotten however the fact is that’s why they are popular, you can visit 1,000 blogs, get 1,000 credits and 1,000 blogs now have 1 extra visitor, everyone wins.

Now there’s no real value in visiting other blogs, or dropping cards, there’s no value for me to have an entrecard widget up high in my site anymore – or at all. Having it up high meant people dropped, putting it down lower means they didn’t, so I can put it down lower now and not worry about drops.

So entrecard loses, they are going to get dropped below other widgets, they are going to lose visitors, other sites are going to lose traffic and people will stop using them unless they change their weighting to something better.

Personally I think it should go back to how it was, rank sites based on the number of drops, BUT moderate the people dropping, weight the drops so the first 50 or so are 1:1.5, the next 50 are 1:1, the next 50 are 1:0.75, next 50 are 1:0.5 and so on, so your encouraged to drop 50 or so, then the next 50 are 1 to 1, then after that your classified as a heavy dropper or a spammer, so the credits for dropping diminish.

This way the people who visit a legit number of sites a day under 100, get rewarded, and it limits net worth of spamming.

I’d like to hear your thoughts on this because I think dropping was a large part of the entrecard economy and it’s going to really kill them, pricing a site based on ads waiting is stupid personally, no longer is a site based on quality, just the number of people in a waiting list, a quality site that moderates what types of ads being shown will lose out and the shit sites that take everything and swap ads will benefit.

My plan this year is to do away with clients totally by the end of the year. Be 100% self reliant income wise.

How am I going to achieve this? The same way anyone else can. By investing my time and energies into my own business ventures, building web based applications based on subscription models and by investing my excess revenue into offline businesses.

I have a whole bunch of targets I need to meet financially, but with the right planning and by putting the right steps in place I should be able to get there.

The same goes for anyone, and anything. Work out what you want to do with your X (X being your website, business, blog, life, whatever). And then sit down and research ways to achieve this.

For example if your goal is to make money from your blog, you really need to work out how that’s going to happen, why would people read your blog, what hooks are in place to get people to register to your mailing list or subscribe to your RSS feed, what value are you delivering to the end reader that they can’t get somewhere else?

In my opinion for a blog it really comes down to content and hooks, if your content delivers value people will read and search engines will index, if your hooks are of value people will take the bait and refer other people to it as well.

If the goal is to build traffic to the site to sell ads or something, then work on small targets, 100 a day, 200 a day, 500 a day, 1,000 a day etc. But don’t just set random targets without ways to achieve them, for every target put in place a set of actions that will make that target achievable.

It’s easy to say I want 5k visits a day and you’ll get that from writing good content. Well you might but you probably won’t, it’s better to say I’ll get 500 a day from writing good content, and search optimising my site, networking with others in my industry, buying ads on related sites and building some link bait.

And then go from there; work on sustaining that traffic and then growing on it to reach that 5k, it’s the same old story on the internet, once the traffic is there the ad revenue will follow.

For me in my position I’m working on building web applications that generate revenue, I’ll be building them with my team of developers in between client projects, and once they are ready for the public we’ll start small with some basic marketing, and no fees for usage, grow the user base, and start working on ways to monetise once the application has a healthy number of active users.

Until there’s a good amount of users on the system, just like high traffic numbers to a site, there’s no point of trying to monetise, you’ll make shit all and you’ll only drive people away.

On top of my server moves, I’ve also gone through the motions of upgrading legacy apps, as well as this blogs wordress and phpbb3 forum.

I don’t know what version of WP I was running before, but this new version is pretty cool, better design and interface, nice and clean, and I’ve upgraded phpbb from 3RC3 to the latest version, 3.0

This re-iterates what I was talking about in my last post, the more apps and sites you have floating around the more sites and systems you have to mange, update and maintain on a monthly basis.

All of my sites are run on some kind of underlying application, be it 3rd party or custom written, and all of them require upgrades and maintenance to keep them running efficiently, and to make sure they aren’t venerable to attacks or hacks.

Spending this time is fine, as long as there’s a benefit, if you have all these sites out there that don’t have any traffic and you’re spending time upgrading them then you’re only taking time away that’s better spent serving other sites – you could be spending an extra hour a day promoting your more profitable sites while your screwing around with un-required maintenance.

Really look at all the sites your running and have a good think about what’s up there of value to you, and what’s just a waste of time and resources, kill them and maximize the time you spend to make your main sites more profitable.

Having everything organised is important to me, and it should be for almost everyone. There’s nothing worse than having a server die, or system crash and not knowing what’s affected, not having a backup and not knowing what has to be restored.

Aside from a system restore point of view, it’s important in case a server becomes hacked or heavily loaded; it’s good to have your heavily loaded sites on servers that can handle the traffic, or at least have a location for them to move to in a short period of time if one of your sites does become busy.

I’ve spend the first 4hrs of this morning moving sites off 2 of my old dedicated servers and into new virtual server environments. My new virtual servers won’t have hardware failures and won’t need hardware upgrades, additional resources are 1 click scalable and the hardware is spread across multiple servers.

Another part of organisation I like to do with my servers is to remove any sites that are unused, or dead, I like to prune old sites off my servers, rather than letting them linger around for no real reason, I either sell or just delete and let the domain drop.

The fewer sites floating around on my servers the more focus I have on the sites that are actually worth spending time on, rather than having to maintain sites that are a waste of time.

I have a few hundred domains, but actual sites that are operational are around 40. I have designs and systems for close to 100 domains, but I don’t have the time to maintain or market the rest of them, the designs are sitting on our local server for the day when some of the current batch that are operational are shut down or sold off.

I talk about this because my friend just had server die with about 40 sites on it, took him over a week to restore all the sites on a new server, mostly because of bad backups and not knowing what was actually on that server. It was all a bit of a mess, but at least now he’s running on a dedicated virtual server that shouldn’t die anytime soon.