Income Report: I’m A Million Dollar Blogger
Back during the early days of this blog I used to write income reports on a semi-regular basis. John Chow made the idea of reporting your blogging income popular, and before him guys like Darren Rowse and Shoemoney would show pictures of checks they had received from advertising programs like Google AdSense or affiliate programs. Today guys like Pat from Smart Passive Income keep the trend going, though most of the other guys have stopped reporting now.
There’s no doubt people are inspired by seeing how much money others make (I certainly was before I started earning much online), and for the person sharing their details, it’s great for the ego to talk about how well you are doing. It’s also beneficial as a practice to report income to monitor your trend growth rates and also see if you can sustain a level of income significant enough to live off long term.
I’ve often had people, especially those who work “normal” jobs, question the practice of revealing your income online. How much money you earn is considered one of the most private things you don’t tell even your friends or family, let alone the entire planet through the Internet. I personally don’t think income levels should be hidden, it could be a force for better wages if the knowledge was public, so I’ve never had a problem talking about how much money I generate. Plus it’s fun to report back your successes when you have them, even if it does seem a lot like bragging, which I think it is, but it’s great for social proof too.
How I Made A Million Dollars
It’s amazing for me to write this, but during the last two years I’ve generated over a million dollars in revenue online. What’s even more amazing is I did this without any full time staff and only one regular contractor.
In Australia the tax year runs from July to June, and in the 2008-2009 tax year I made over half a million dollars in revenue doing what I do online. I was expecting the next year to be less because I wasn’t launching as many new things, but it turned out that I actually surpassed the previous year (just), though the profit was less (I bought a new BMW – that tends to hurt your profit a bit!).
Obviously profit is different from revenue, so I didn’t keep the million dollars I made over the last two years. For my business, tax compliance (the cost of setting up a new tax structure), outsourcing to contractors and affiliate commissions are the largest “expenses” I incur. In general I make about 70% profit (and tax comes out of that), which is incredibly high compared to most offline businesses. That’s what is so good about online business – the low cost structure.
Before the last two half-million dollar years I was making a solid six figures a year, so I actually surpassed a million dollars earlier. I feel comfortable saying now that I’ve made more than a million in sales and kept more than a million in profit in the last five years running my current online business.
How You Can Make A Million Dollars
Obviously it’s nice for me to be in this situation and I’m incredibly grateful I can live the life I do, working on a few hours a day, make what I make and do it by helping others through sharing words, but I know what you really care about is how can you replicate my result.
There’s no simple answer to that question, however I’ve met enough millionaires to notice what they do differently, not to mention had my own experience becoming a seven figure blogger.
Here’s some key points as I see it to help you reach your own million dollar result –
7 Tips To Help You Make A Million Dollars
1. Although I don’t have staff, I couldn’t get this result without some kind of leverage generated by other people. The best two examples I can give you from my experience is my partnership with Gideon Shalwick, who co-created the Become A Blogger program with me, which is responsible for a fairly hefty junk of my income in the last two years, and my affiliates, who have helped me reach a much larger audience than I could alone.
2. Repetition of what works. Although I’ve done many different things over the last ten years, when I found something that worked and I enjoyed doing it, I stuck to it long enough to get a result much higher than the average.
3. Choose a business model that has the potential to make you rich. This might seem obvious, but many entrepreneurs are smart enough to know that working a job won’t make them rich, but then make the mistake of choosing a business model that won’t do it either. If you can’t see how your business could make you a million dollars, then you might want to think about changing your model.
4. Isolate your core strengths and then build on them. I mentioned it’s important to find something you enjoy, and what you enjoy is always a strength, so if you can find a business that allows you to express your strength, develop it through repetition and reap financial rewards from it, you’ve hit the holy grail.
5. Tap significant sources of traffic/audience/customers. Most people I meet who are millionaires have access to large amounts of people. Yes you can make a million dollars without needing distribution (like through property or shares), but for those who do it with a business, they generally have a means to access lots of people. It might be having lots of physical stores in retail, or a large email list or popular website online, or affiliates/joint venture partners, or money to spend on advertising, or some kind of media like a television or radio show, or magazine or newspaper. Whatever the case, you need thousands of customers to make millions of dollars, unless you operate in a high profit-margin market (see below).
6. Pick an industry with significant profit margins and high demand. Profit is a function of how many sales you make and the money you keep from each sale after the cost of providing the goods or service. Obviously the greater your margin, the fewer sales you require to make a million. While you might have trouble starting a business where selling just one or two items can make you millions (for example, selling jumbo jets), it is possible to be calculating when you choose what you are going to sell, so your path to millions is quicker and more likely.
7. When something is not working or won’t take you where you want to go, quit. This is probably the biggest reason most people will never make a million dollars – they are too afraid to change. If today as you read this you have no potential to make a million doing what you do – and you want to make a million – then start making changes so you can.
You don’t necessarily have to quit your job or close your business, but you will need to tap on some kind of potential million dollar system to what you are doing. For example, investing in property with your business profits, or starting a business on the side if you’re still working a job, or finding someone to partner with to start a business so it doesn’t require all your time. If you can’t see how it will happen then how on earth will it ever happen?
And one last tip –
Bonus Tip: Many millionaires are created when one significant event occurs - you sell your business.
You might spend the entire life of your business making a low and steady income, but if you can turn your business into a machine that keeps that income coming without much input from the owner, then you’ve got a sellable asset.
Create a business that makes a few hundred thousand a year using a smart, hands-off business model, and you’ve got yourself a million dollar asset. If that’s daunting, consider starting by creating a five figure business and then selling it for six figures. Do that a few times over a few years and you’ve made your million.
The options are there for you to take any time you decide to go after them. Just spend a little time reading the archives of this blog for a blueprint of a million dollar blogging business, if you’re willing and able to do the work. If blogging is not your thing, then keep researching and testing until you find what works for you.
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Yaro Starak
Million Dollar Blogger
Beautiful insight and brilliant points from that school we all know and love … the one we call “hard knocks.”
I especially like the fine point you put on checking the glass ceiling of your business model before diving in. That’s like checking the upper salary ranges of the job you go for so you know what’s possible.
One of my millionaire friends says the most important thing is to create an information product that is extremely high value that you can sell for a much higher price point (basically, like selling expertise in a box) … high-end knowledge for specialized fields versus low-price point products and know-how for the masses. Another millionaire friend echoed that same idea. They both agreed that I would not succeed by selling a book with a low price point. I argued that I was writing a timeless guide that would be relevant to everybody in the world, especially Underdogs (it’s a personal results sytem for work and life) so what I lack in price, I’ll make up in numbers. They both seemed to agree that I should instead be creating a hard-core information product on driving projects (I’ve lead distributed teams around the world since 2001 at Microsoft.)
I can definitely see their point. My book is a passion play so I’ll do it regardless of the economic impact. But that said, is it really not possible for a low-priced, “evergreen” book to make the numbers, if it can appeal to the masses? (I have success stories from folks in the trenches, to CXOs, to Moms, to teachers, etc.)
In other words, is the business model itself limited and I’ll find myself in a glass ceiling or is it simply the unlikely path?
JD supermarkets (Walmart where you are and Aldi in Australia where I am) are doing well by selling low price-point. High end restaurants often do badly – some do quite well of course.
It depends a lot on what you enjoy of course but there are lots of successes at a low price point.
The one thing I love about this blog is how open Yaro is. And like he said, if you take the time to go through the archives, make notes, and work for it, you have the blueprint for a million dollar blog. But there is the key word – work. As I said to a co-worker the other day, people could be rich if they worked at it, but people want it given to them via lottery ticket or scratchcard, not working for it.
Your MessageYaro, You’re a great, steady voice, and have built a standard
of delivery that we can really rely on. (Probably worth a million right there). You could be better, but probably not too
much:) We love ya’ man. -Dale-
Hi Yaro,
I am a newbie blogger. One of the resources I got involved with even before I decided to have my own site is your Become a Blogger videos with Gideon. After reading this post, I got a lot of ideas but for me a little bit advanced from a beginners standpoint. I’ll follow your advise to Richars…. to check the archives. I am pretty sure I will learn a lot there too. Right now, I am still blogging about news about my country but I will divert it to more profitable areas in the future.
Thanks.
Hey Yaro,
Great points and I especially loved the #7, which I too believe is the most biggest obstacle of all. Fear to change. I believe most of the people go head first into blogging and then later “decide” they want to make a business around it. If there’s no plan for a business model in the first place, it’s most definitely a tough (and sometimes impossible) thing to create later.
Creating multiple sources of income is another thing. Don’t just sell products and services through your blog. Diversify and create joint ventures and go after whole new markets. Having a mastermind group of like minded individual is a fantastic way to create collaborative projects and reach venues that would have otherwise left untouched. Probably the best thing I’ve personally done online yet to push my business goals forward.
Cheers!
Ps: Maybe you should change the Suzuki from your blog mastermind sales letter to the spankin’ new BMW now! ;-D
very inspiring article Yaro……..I liked your 7 tips. I think the most lucrative way to make money online is by selling your own information products or membership sites, just like you have done to make your million+ dollars. There’s very little set up costs and deliverability is usually a download of pdfs/videos. I plan to start making my own info products/membership sites by joining your membership mastermind next year…that’s the goal for 2011:)
Hey Yaro !
Wanted to congratulate you on the million dollar mark !
And thank you for the inspiration of showing that it can be done.
I read about half the comments and came to the conclusion that continued effort,
persistence, and knowing just when to throw the towel in are key points to No. 7.
Yes I have just started fallowing your map and am looking for the inspirational information
given by you.
Forming a number of sites online for business and growing them to each make a modest income without much effort seems one of the common goals..So far mine is writing and gardening, so I am looking for a few more.
This site is so full of great information, taking it all in is my niche past time.
Thanks again Yaro !!
Love the post, especially the 7 points. My favorite is #3 – Choose a business model that has the potential to make you rich – sounds simple, but it is not. I’m not sure that I have actually chosen a million dollar business model, and I’m really not sure that I care about making a million dollars, time will tell. Very interesting and thought provoking.
I think people like John Chow stopped showing their income reports because they are not earning as much as they used to and don’t want their readers and fans to realise this.
I always show my income reports as a way to prove I’m earning online and to try and motivate other people to get involved in making money online.
Congrats, Yaro! Seeing you report an income of this staggering amount surely does give us marketers solid proof that there really is a pot of gold out there on the internet! I particularly like your 7 tips, especially the 7th. I think a lot of us are not succeeding because we are too happy in our comfort zone and are unwilling to change.
Your Message
Thank you for all of your valuable advice and suggestions, Yaro! In reading through the comments, I noticed that one person said he was more interesting in developing the content (writing) than in monetizing. I am interested in both. However, I find the content development (writing and journalistic acitivity, reading and research) to be more familiar and readily at hand. Spreading the word about the writing and communicating about it is a separate type of activity which takes a different kind of leap. In addition to your 7 tips, I like your examples. I have learned most from your interviews with people, such as the car advice person and the woman focusing on skin care.
All of the things you mention is right. The things that is kept in my mind is the word repetition. Repeating the same good process over and over again with a touch of improvement will surely help you a lot. Repetition is next to perfection. When you are used to it and always doing the same process. You will eventually master this process and then eventually improving it through years that we all call experience. The key here is that Never GIve Up.
=D..
I am newbie blogger and wanting to be like you who earn money online for a living. Will please help me achieve my goal?.. Thank you in advance. =)
Pat Flynn is my blogging idol! No offense Yaro.
Great Post Yaro,
To think of a blogger making a million dollars sounds very exciting indeed. Gives one a reason to keep the dream alive and to continue learning what it takes to make this kind of income a reality.
Persistence pays off. Find what your are Passionate about, and go after it. Everyone has something that they can teach others. Like you said, if you are willing to do the work, go for it!
Blessings,
Ron
Great Post Yaro..
May I translate your post with indonesian language in to my blog..?
may thousands blogger in my country will be know & interest with you..
hey yaro,
Great down to earth advice on building a million dollar business and brand. Made me rethink a few things on my own end to make sure to get on track.
If you had to start from scratch and build your business from the ground up and you only had two years to reach a million. What would be your business model then? I’m curious to what your answer would be. Thanks.
Congrats Yaro.
You have inspired many people over the years and deserve your success.
It’s a difficult call between persistence and giving up too soon. Is one a dead seam or are you within touching distance of the gold? Often you can’t see in your own business – cant’ see the wood for the trees – so outside, impartial help is needed. I guess that’s one reason why the coaching industry has grown.
Best
Andrew
Hi,
Thanks for these incredible tips. But i need to disagree a bit at the 7th step because quitting isn’t the answer although finding an alternative should be and i think that’s what you are trying to suggest here.
Thanks.
Though by no means do I make alot of money online but I am definitely more of a private person which is why I shyed away from personal blogging or personal branding online. I think the BMW you invested in this year is great! I’m sure you’ve read my other comments in your blog posts, but I myself am looking to get an Audi, one day I’ll get there! In regards to your 7th tip, there is definitely a right way and a wrong way to “quit”. Quitting because you are giving up is definitely the wrong approach, but quitting because you see a brighter path is the winning move and not a backwards one for sure! Think about all the successful College dropouts like Bill Gates.
Till then,
Jean
You are absolutely right! Leveraging the power of others is really very important and it is one great key to get more results from your efforts.
Yaro, I think these tips are rally handy. I like the last one because I know many people dont want to leave the business because they are in their comfort zone.
Great tips. Finding the right niche can really be the toughest part of the equation for most, it seems. The last point really needs to sink in for a lot of people, who are very afraid of taking a risk. While the reasons behind it are understandable, many fail to capitalize on really good opportunities for the same reasons.
Awesome. I must say that I was stuck when I’ve seen my first $60,000.00 online. The truth is that it takes consistent work and a solid plan to make six figures, and then the million. I think my next step will be to sell my business. Not easy to separate yourself for your online business though.
All the best,
Franck
your right on point with this post. Especially find a way that works and repeat it. If you can you can sell it or market it.
Hi Yaro
For me, there is enough advice out there to help anyone develop a profitable business that is right for them (you just need the right mentor or coach). The secret is to find a profitable niche – after that it is often a question of just ensuring that you have the right business model and processes in place. As you say, once you find something that works you can then repeat the model in another niche.
Congratulations, keep the quality advice coming!
Yaro,
I loved the 7 tips, as I am still learning the ropes. Hardest part about internet business is it is lonely and competition is fierce. There is also steep learning curve and as soon you learn, things changes.
Hardest part about it all is to keep going when we do not see any results in the beginning. I am so happy for your success and hope to mimic it with passion and hard work.
Hi Yaro,
Those income reporting posts were really inspiring, especially for those who had just started blogging and were looking to some kind of proven way to monetize their blogs…
Now, it’s really great to hear from you that you made that amount of money in just two years. Hope some day I could reach there too…
Thanks for the tip Yaro! I got some ideas on a new business but don’t know how to start. frankly speaking, I’ve been blogging for more than a year in hoping that I could find something that suites me. Now That I found one, i don’t know how to do it
Got to learn more from you Yaro !
Congrats on such good earnings for the year. These are great tips to follow and stick with. Number 7 is really hard to do but because sometimes you never know when an idea won’t work because if you give up too soon, it might have worked at some point.
Yaro – I think this is a great list, but the ones that stand out to me the most are the last two. A lot of people look past these and never pay much attention to them, all the while not even realizing that these two things could be costing them their business!
For people starting out, I always recommend they sit down and pick niche markets that interest them. It’s best to try to come up with a few options, rather than one. What most find out is that one of their favorite things may not be a huge income generator, which is why having a list of your interests to conduct profitability research is best.
And lastly – knowing when to quit. That’s probably the hardest thing for anyone to do (especially those who never want to give up). While you shouldn’t apply that technique to everything in life, knowing when to quit when something just doesn’t work can open up more doors than you imagined. Never be afraid to try new things.
Anyway, this is good stuff. A lot of newbies out there can learn a thing or two by following these 7 things.
Amazing!
Congratulations to your success. The internet is definitely the right place to build a business and it is always true to take that which suits best for you. I think one can’t really fail here (even though you can hold yourself apart from success for a long time). Looking forward to here more and expand my knowing. Thanks to you.
This was a very insightful blog post. Very honest and upfront on how to become a millionaire which it is all basic concepts but most people do not understand on how they could get there. I really liked this.
That’s awesome Yaro!
I always enjoy reading your posts as they are both inspirational and motivational – this post was no exception.
I’m glad that you have had such great success and are in a position to motivate us towards the same goal. You’re a great example of what hard work and perseverance can achieve.
Thanks again Yaro for the inspiration.
Keith
Yaro,
Just dropping a quick note to say Congratulations on achieving this milestone of becoming a million dollar blogger!
I’ve started following you only recently, and I was thinking you would have achieved this milestone way back. Well, I’m glad I was not loo late at least to miss the moment of this achievement
Well, I guess I have a lot to catch up on from your archives. And it sure would need a lot of time. But going by your latest post, I think I’d first get something out the door instead of keeping on building my knowledge and not taking any significant action!
So I’m off for today to get something done for real.
Cheers!
Mark
Congratulations on your success. Great Post. Online business is the business of this generation to be involved in.
yaro i run a club for the poor and the less privileged. right now we are in a financial mess, hope you can send me more tips to enable me run my club. i’ve a mission for them but i can’t do it all alone, nee to know more about making money online so i can do that at my spare time. ncucdirector@gmail.com
I doubt whether I will be on the same course as you, Yaro, making so much money in a year – but thanks for highligting the fact that it’s quite possibly earning that much with your blog!
Thanks.
Yaro, Thanks, you are the best coach that I could find. I got an idea, would you let me translate your tips to spanish? I´m starting a blog for newbies in spanish. Maybe it could made a new market for you.
XoXo.
Yaro, Congratulations, Thanks for sharing with us your experience, with these tips will hep many of us to advance our on line business and success.
nice article just wanna know what is your starting capital in earning a million and how long did it take you to get a good reputation from the internet
Sounds cool but I just can’t understand why people when they reach a certain level of achievement buy a BMW! I would have thought that being an original and creative thinker that your choice of car would be something better than an icon of coporate success, just complete conformity. When I can afford to spend some money on an expensive car I’d prefer a Maserati, something with style, elegance and that also looks and sounds good too!
Who works fairly well and is entitled to win! Great post. Congratulations on your success, Yaro!
Congratulations on your success Yaro. I only discovered your blog a couple of weeks ago,but it has become one of my favourite resources. I love going through your archives to find out what I have been missing all this time. I have learnt so much in this short time from you, and lets not forget the great team you and Gideon make on Become A Blogger.
Thanks, you are an inspiration.
Joy