$13,000 down the drain? BUDGET & BREAKEVEN Point - Amazon Affiliate - Aged Site Case Study #ASCS #6 Best Education Page #Online Earning

we're doing the Aged site case study and

today we were going to talk about the

break-even point and some of the

expenses that I've spent money on so far

now I'm going to go outside I think

we're gonna change the scenery here but

before we do I'm gonna burn like a

lobster out there I'm going to turn red

so I need to put on some sunscreen if

you're new to the channel I'm Doug

Huntington and talked a lot about Amazon

affiliate marketing and in this specific

video it's like part like six of a

series so if you're unfamiliar with the

Aged site case study you should check

out the other videos there's a link in

the description where I like record some

raw notes and stuff like that and

basically the premise here is I bought a

site that was aged already so we're

skipping the sandbox I'm outsourcing

almost all the activities and today in

this video I'll be talking about the

expenses and the potential break-even

point plus I am going to I'm gonna pitch

a little bit of funny accounting at you

here and we're gonna look at the

valuation of the site to consider the

break-even point so if that sounds

interesting to you you're going to want

to watch till the end here so let's get

into this and as a quick aside whenever

I try and record outside a couple things

usually happen the wind kicks up someone

comes by with a leaf blower

maybe they try and cut the lawn or

something like that so fingers crossed

that we're gonna be able to record this

without incident we may change locations

because I'm actually sitting like in the

direct Sun and my fair-skinned you know

it just doesn't do that well with it so

it may change locations before I bake

out here now let's get to it

the budget is one of the most important

pieces of this case study and the goal

for me overall was to number one do

something interesting and hopefully

number two have an asset at the end of

the day now I hear from folks all the

time just like you and maybe you have

more money than

time a lot of times it's of folks that

have like a high-paying job maybe you're

like an IT director or vice president or

a project manager like I was and some

other folks maybe you're like closer to

retirement and you just generally like

to have a little bit more cash flow you

want to explore like online income so

there's a lot of you out there and for a

long time I didn't really know like what

you were interested in but it turns out

this age cite case study is like perfect

for you now by the way I will mention

all the products and stuff coming up

that I'm going to mention I'm an

affiliate so I get a commission if you

purchase through my link and I

appreciate it very much I will probably

buy a beer with that Commission and

click note human proof designs that's

the company that I purchased the site

from I do have a discount code so check

that in the show notes you could say 5%

on any other products over there

I appreciate it if you do so basically

I'm going to skip to the punchline here

the budget for this project is around 12

to 15,000 for the first six months or so

and I'm lucky to have a flexible budget

and if you happen to have a flexible

budget as well you you may be thinking

hey I actually have more to spend

especially some of the folks that are

closer to retirement you may have 35 or

40,000 to spend and you're like let's do

it I can I can go even faster

I could publish more content and all

that stuff that's great but I encourage

you to you know have some restraint and

work within the constraints that you

have I think tend to or what did I say

15,000 is like pretty good to get

started and I'm gonna explain that I've

already spent the lion's share of this

because I had a lot of work done while I

was on vacation which is super cool and

it kind of like I guess it proves that

you don't have to babysit this thing

several people ask questions like how

much time are you spending on it Doug or

you really doing all the work here like

what's the situation

fact is I was like off the grid and not

doing anything related to the site for

probably about a month it was like 30

days so I was out of town for like 25

days at least at least ten days to two

weeks I was like off the grid like not

not really with connectivity so anyway

let's get back on topic here before I

ramble on so one thing I want to point

out with that budget obviously it's

pretty flexible I said twelve to fifteen

thousand three thousand dollars is a lot

of money and you may be thinking can't

you tighten it down a little bit more

sure we can like say hey we're not

spending more than twelve or put the cap

on fifteen but the fact is I don't know

what's gonna happen after a few weeks or

a few months and we're talking about the

budget for the first six months or so so

I have some flexibility again I'm

fortunate to be in the position where

I'm like alright I can play around the

budget and you know just make sure that

I'm within the range that I expect to be

in so that's kind of why I picked a

range there you have to be flexible

that's the main thing you got to be

flexible here so let's talk about the

cost for some of these core activities

and products and services that I've

spent already so number one the

done-for-you site purchased from human

proof designs they have a range of age

sites by the way and they also have

sites that are already earning money so

you have a few things to choose from

there but for me I spent $5,500 on the

site that I picked so that had a few

more keywords that it ranked for

potentially like more traffic and I knew

that that was one of the main criteria

by the way leave a comment if you want

to hear how I picked by a specific site

alright so be sure to leave a comment if

you want to hear more about that so I

know so they have sites starting at

eighteen hundred dollars but potentially

those are maybe not going to be aged as

long or maybe they don't have as much

content or maybe something else there's

a lot of criteria involved there and you

can have a look and see you know what's

available out there whenever you're

ready to pull

the trigger so I spent I spent more

because I was like hey I want to shorten

the sandbox as much as possible and I

think that is one of the reasons why you

know we're not even three months in and

the site's probably gonna hit a hundred

dollars this month that I'm recording

this which is August 20 19

okay moving on I also purchased 50

keywords from human proof designs they

have a service at least at the time that

I'm recording this it cost I think about

a hundred bucks for 25 keywords i 150 a

pack of two so I spent about $200 on

that as well

next I hired content development pros to

write those 50 posts so that cost about

four thousand four hundred dollars and

if I remember right all 50 of the posts

were written while I was gone so in

about one month I had all that written

the posts are about 1200 words of peace

or so and content development pros

drafted it in my wordpress installation

I created a I think an author editor

account forum and they uploaded it they

drafted they put an image in there they

put the links that we need so we know

what products are mentioned and then I

had one of my VA s go in and just kind

of review and make sure it look good

usually that's a pretty quick activity

they also look at it for grammar light

editing so you could hire a Content

Manager

for me I already had that person sort of

working with me and it was a good way to

train that BA on that specific activity

so quick quick note just recap on the

site and the content so human proof

designs 5500 for the site keywords

I hired human proof designs $200 for 50

keywords and 50 articles 1200 words

apiece content development pros 4400

let's move on to links oh actually

content refined a hired content refined

to improve five posts that cost $800 so

results are still out for that I just

got the content updated but content

refined they will take a look at the

existing content on the site they'll

make an assessment on like what posts

may benefit from having some content

like improvements made they use a tool

called market Muse and I've tested this

before I'll put a link in the

description for like the case study that

it did but it seemed to work really

really well on the other case study so I

feel like over time this is really gonna

pay off but I don't have any results yet

they just updated it and they I told

them hey those look fine whatever your

recommendation is looks good to me

I gave them some credentials as well

created a I believe in editor account

they went in made the changes so

monitoring the results okay moving on to

guest posting which is a pretty big

component basically I've gotten four

guest posts I use two services in this

case one of them is the hawk and the

other one is called log annex I was

mispronouncing the name of the company

before but I interviewed the founder and

owner Adam Steele recently so I was able

to confirm the actual pronunciation of

the company so Logue annex Logue annex

is the name of it and actually all for

the links that I have gotten their

outstanding their on sites with plenty

of organic traffic

I've spent seventeen hundred dollars on

those link placements and outreach

associated with it so obviously this is

a decent chunk of change but I believe

the results show for it because traffic

is going up quite a bit on the site or

at least it's moving in the right

direction and sometimes link and links

and adding content takes a little time

for it to

to work so click recap or in about

$12,800 at this point so like I said

I've already spent the lion's share of

it and let's change locations so that I

don't get too sunburned in this exact

location so I'll be right and it always

gets windy out here it's like clockwork

but let's try and plow through this so

what did I say like twelve thousand

eight hundred and basically if you're

nervous about laying out that kind of

cash I totally understand there's a lot

of money I mean when I bought my truck I

think it costs about that much so

basically in future videos if you want

to see it I can explain how to reduce

the costs a little bit and you know

maybe give you some other options I'm

using premium services because I'm

trying to outsource everything and I

want to babysit the whole process so

leave a comment if you're interested and

I'll see what I can do for you so

basically we're about close to thirteen

thousand dollars in and basically on my

loose budget I don't have a ton left

before we hit that fifteen thousand but

basically we got a lot of content so I'm

gonna look at backlinks mostly now

probably get a few links per month until

we hit that fifteen thousand or if we

start seeing even more good results I

may actually you know put the pedal to

the metal

and add more links so we'll see how it

goes and that's part of the reason we

want to have a flexible budget here so

we have you know if things are going

good I don't want to artificially set

the like budget too low all right and

then like stop stop with that momentum

so let's talk about these guest posts a

little bit my arms getting tired so I'm

gonna have to pause here all right we

end up under a bridge here it seems to

hit all the checkboxes not in the Sun

I'm outside unfortunately you don't get

to see the beautiful area around here

but the lighting is pretty good coming

in from under the bridge

and it's relatively quiet so we'll see

what we can do

all right we're talking about guest

posting and you may be wondering why am

I getting the links from two other

companies and not human proof designs so

number one if I got the links from human

proof designs it would be pretty boring

for the case study a few people asked me

like hey why don't you get content from

human proof why don't you get the links

from human proof they have all that

stuff there it could just be a one-stop

shop that is true I know people do that

I talked to Brian the new owner and the

other crew I'm sure they do a great job

but basically if I'm doing a case study

and I'm using all their products it sure

doesn't look like like in bed with human

proof designs and I'm just like trying

to hawk their products well instead I'm

trying to hawk everyone's everyone's

products out there so I'm testing stuff

out seeing how it's working and then if

it's panning out well then I'm working

with the company so basically I'm using

other companies because it's far more

interesting from a case study

perspective and potentially each of the

companies this is a little meta but each

of the companies may be interested in

talking about the case study instead of

just working with one company so I'll

leave it at that I will also mention

this and this is my own observation here

so human proof designs they do sell a

lot of sites and I assume they probably

sell a lot of backlinks as well and I

know that you know human proof Designs

has a blend of like some guest posting

activities and they also do some private

blog networks if you're unfamiliar with

private blog networks

those are like websites that are set up

purely for backlinking so so let's think

about this for a second oh and I'll also

mention these are which we call grey hat

links so grey hat is like the kind of

link that all kinds of activities that

Google doesn't like now sure you could

say if I'm paying for guest post

placements

that that is also against the rules that

these PB NS are I think a little bit

worse and let me explain like some of

the risk there I'm not going to go too

deep into it but if you want to learn

more you could just google you know

private blog networks you could learn

all about it look out people were gonna

be trying to sell you a whole bunch of

stuff so okay basically I think these PB

ends are a little bit more risky than

what I want to get into and obviously

human proof designs they view the PB

ends is low risk and that's okay like

everyone has a different opinion I'm not

personally against them I just don't use

them myself so let's think about this

let's say there's a bunch of PB n links

to a bunch of affiliate sites that kind

of originated from the same source I

would say that's a footprint and kind of

an I would say like an obvious one I

don't know so if I can get links from

different sources through potentially a

slightly less risky format guest posting

versus private blog networks that's what

I'm gonna do again it also makes the

case study more interesting from again a

deeper meta situation guest posts are

going to be more expensive than private

blog network links because there's more

work behind it probably they are going

to be more effective but not always

right so again I know there's tons of

people out there that use PB ends they

love them they've been using them for

years

blah blah blah not my thing and I could

tell you that I've been I've been kicked

in the balls a couple of times by Google

for using private bla blog networks

these PB n links so I kind of learned my

lesson so I'm moving on and you know

pick your poison whatever you want to do

if you like the PB n links you want to

get them from human proof designs you

can use my discount code right you say

5% right there whatever you want to buy

like that's cool with me and you have to

assess your own risk like if you are

able to you know deal with the risk if

you're okay with it then that's cool it

will probably work out fine and

you are penalized then you already knew

the risk and you were like hey you know

what if this thing explodes then it's

okay with me so just not my not my style

anymore before we get to the like

break-even point and some of my I guess

flexible accounting here I want to

mention that if you do use the pbn

lengths or other links which people tell

you are risky I would keep it under 20

to 25 percent of your total links and

the main idea there is like if you have

an issue if your site is penalized you

can disavow those links that are causing

you an issue and you still have the

remaining links that aren't risky so the

main problem that I had when I was

penalized multiple times for like

different sites for using PP ends PP

ends and other links made up like 90% of

the backlink profile so if I disavowed

all of those there would be no rankings

left if you keep your risky links to a

lower amount then your going to be able

to potentially recover because you could

just get rid of the bad ones and you

still have the majority of your links as

good ones and then you can you know do

whatever you want yeah again if you if

you're good with the risk you know you

can you can do that so it's up to you

alright let's talk about this break-even

point so if you're unfamiliar with the

term let's just define what we're

talking about basically this is when the

initial investment that you've made is

paid for so in this case let's call it

$13,000 we'll round up and we'll just

look at it at this point in time

obviously I'm going to be getting more

links in the future and doing some more

promotion so basically I'm gonna talk

about two lines of reasoning here so

number one is like the straight-up

definition and the second one is the

flexible accounting that I've been you

know teasing you with this whole time so

if the site makes let's just make some

assumptions here so if this site makes a

hundred dollars per month which should

be hitting a hundred dollars per month

pretty soon and it just

as static it stays at $100 per month it

will take 100 in 30 months to pay for

the site and for me to be like even at

zero that's 11 years that's a pretty

long time that's not what we're looking

for so if it stays at a hundred that's

not awesome however if it makes five

hundred dollars per month that's gonna

be paid off in about twenty six months

now let's just keep going with the

hypothetical here work with me

thousand dollars per month paid off in

thirteen months fifteen hundred dollars

per month that is a little under nine

months and if we can get to two thousand

dollars per month which would be

exceptional I think it's possible but it

would be fantastic we're talking six and

a half months now yes you may be

thinking well the first few months it

didn't make anything that's true that's

true so this is like a sliding sort of

scale it like progressively goes up and

you if you wanted to you could map this

out in a spreadsheet like dollar by

dollar penny by penny for the math

people out there you see where this

where calculus comes from you know just

dividing it up over and over again so

you can map this out and see like hey if

you're making this amount it would take

this long to pay off and it's always

shifting right so even if we had $100

this month

it may not be a hundred dollars next

month it may be less it could be fifty

or it could be five hundred or whatever

now obviously I hope it goes up and I

think if we you know I think like it an

average sort of like goal an acceptable

goal for me in this case would be you

know it'd be really cool to hit a

thousand bucks within about six months

or so and at that point we're looking at

you know a little about a year little

over a year to pay off the investment at

thirteen thousand okay so I I would say

it's it's probably likely to hit

thousand bucks under a year you know

hopefully at six months but six months

to a year I think it's totally possible

and at that point

like you know the investment could be

pay back fairly quickly

no flexible accounting let's talk about

that now let's let's redefine the

break-even point just a little bit so

it's flexible accounting but let's

redefine the term so we have that leeway

so let's say the break-even point is the

is the value of this site and when that

equals the cost so again let's make an

assumption and I'll state it clearly so

if you disagree that's cool just let me

know in the comments a site is generally

gonna be valued at about 30 times the

monthly profits so with this sort of

flexible accounting you could sell the

site and pay for all the money that you

spent thus being at the break-even zero

point right there so yeah you know when

you're looking at the profit you may be

you may be saying like what would about

the ongoing cost and blah blah blah I've

just paid and lump sum so there's not

like ongoing content that's being added

I got 50 keywords and then it published

50 articles and that's that's like paid

for already sunk cost and there's no

ongoing cost for that so if I could get

to certain amounts of revenue that would

generally be like ninety ninety five

ninety nine percent profit I mean the

hosting is relatively inexpensive so

with that sort of reasoning the

break-even point is a little bit lower

because we're just talking or just

looking at like the value of the site

and what we potentially could sell it

for so we're redefining the break-even

point to give us a little more leeway so

maybe this won't be as scary all right

so maybe it won't be as scary now we're

gonna assume this $13,000 even though

I'm going to be getting I'm gonna be

spending a little bit more in the coming

months but let's just look at this

instantaneous point in time right now so

if we we've you know do the math here

thirteen thousand dollars and we're

looking at third

times the monthly multiple right all

right stick with me here basically you

take thirteen thousand and you divide it

by thirty and you end up with about four

hundred and thirty three dollars per

month so through this second method here

you can assume that you could sell the

site for thirteen thousand dollars

don't forget you got to pay for some

other things out there like potentially

broker fees or maybe your monthly

multiple won't be as much but we're

looking to me specifically here I'm not

planning on selling it by the way but I

probably wouldn't have to work with a

broker I could probably just email

people that I know and 30 X monthly

multiple I maybe could get more than

that so you know if you're just talking

about me selling it which in this whole

things really about me basically I'd

probably be in good shape if I can get

four hundred and thirty three dollars a

month on average for a few months I

could probably sell it and make all my

money back now if I keep it it may take

a little while for just like locked in

this four hundred thirty three dollar

per month mark but most likely it's

gonna go up doing a lot of work to it

there's more content and all that stuff

so that is the the funny accounting by

the way let me know if you agree with

that sort of accounting where you're

looking at the valuation I think it's a

valid right I mean if you're trying to

justify spending to maybe your family

your friends your spouse this could be

an interesting way to look at it and you

could point them towards this video if

you want so anyway do check out the case

study raw notes page over a niche site

project comm slash ASCs for age site

case study please check out the playlist

that has all the other videos and in

here I talked about many other aspects

and if you have questions leave them in

the comments I may not be able to reply

at all I may not be able to reply right

away but I look at your questions and

comments so that I know what other

videos to make otherwise I'm just

talking about stuff I'm interested in

which you may not be interested in so

thanks a lot for checking it out again

doug cutting Teran the other part of the

if you're uh you know if you like what

you see here if you watch this whole

video you'll probably like the other the

other videos too so subscribe click the

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