Everyone always says that they want to get to $100/day, $1000/day or maybe even $1/day depending on which point you’re at in the online marketing journey.
Whatever number that may be for you, there’s one thing that almost everybody seems to forget: Actually doing the math to calculate what that’s going to mean in terms of traffic.
When I first started online, my only goal/dream was to get to $100/day.
That was it.
That was my magic number.
That’s the figure I felt would allow me to quit my day job and start working at this full time.
It’s the goal I was obsessed about achieving, and the #1 motivating factor that allowed me to sit at the computer for hours on end building websites, reading blog posts, listening to podcasts, watching interviews on YouTube, and just soaking in information.
What took me 4 years to achieve
$100/day was my personal biggest milestone in my entire career working online.
Getting to $100/day, and then making that much consistently for 5 months straight finally allowed me to quit my job.
It’s the accomplishment I’m most proud of achieving it. It’s really what changed my life, since it’s what’s allowed me to live the lifestyle I’ve always wanted: working from home and being my own boss.
Last year, I crossed 2 more huge milestones: My first $10,000 month and then my first $20,000 month.
Still, none of those gave me the joy, pride, and satisfaction of what I felt when I finally hit my goal of $100/day.
But it took me 4 years to cross $100/day.
Since the time I first discovered online marketing, and built my first niche site… it took 4 years to hit $100/day – consistently – I did hit $100/day a few times but they were just one hit wonders and not reliable income models.
Why did it take so long?
It was because of a lot of factors, actually.
- I was entering the wrong niches and targeting keywords poorly.
- The links I was building were weak, spammy, and unsustainable for a long-term business.
- But most importantly, I didn’t have a clue what getting to $100/day actually meant in terms of traffic numbers……… I didn’t even bother to think about it.
As a result, I was targeting tiny niches, building micro sites, and targeting keywords where, even if I became the top site in the niche and ranked #1 for ALL MY KEYWORDS, the most I would make is less than $5/day.
The traffic just wasn’t there.
And if you remember from Lesson #2, traffic is the most important factor when choosing a niche for a website that’s going to be monetized with Adsense.
For me, although I don’t remember the exact numbers, I hit my goal of $100/day when I was getting around 150,000 visitors per month to my niche sites.
Am I saying 150,000 visitors/month will always equal $100/day? Of course not. It could be much lower, or much higher than that. There are so many factors in play that it’s going to be different for everybody. But, it’s a close estimation.
So let’s do some calculations:
The biggest metric you need to calculate Adsense income for a website is RPM.
What is RPM? Basically it’s the calculation of how much money you make per 1000 page views. It’s calculated based on your traffic, CTR (click-through-rate), and CPC (cost per click).
The average RPM I’ve experienced with Adsense is about $5 to $10 for broad niches and up to $100 for more competitive niches with high CPC.
If you’re able to know your RPM, you can accurately estimate earnings potentials for higher traffic numbers, as well as the amount of traffic you’ll need to make a full-time income.
For instance, if you’re making an average $10 RPM from one of your websites, that’s $10 for every 1000 visitors on your site.
So you can easily calculate that if you increased your traffic to 100,000 visitors, you would make $1000. If you grew it it 1,000,000 you would make $10,000. Again, not perfectly accurate, but a good estimation.
Traffic Required to Make $100/Day
Let’s break down the numbers even further with some example metrics.
We’ll try to use numbers as close to averages as possible.
For this example, we’ll use a $1 CPC and a 5% CTR.
So how much traffic do we need to make $100 per day with those figures?
First, we need to figure out how many clicks equates to $100.
100 / 1 = 100 clicks.
If we need 100 clicks at 5% CTR, the total traffic must be…
100 / 0.05 = 2,000.
We need 2,000 visitors a day. Per month, that is…
2,000 x 30 = 60,000.
60,000 visitors every month to make $100/day with Adsense. Of course, this is just an estimation using very ideal metric figures. It’s not easy to maintain an average CPC of $1 depending on your niche, and CPC is a giant factor in how much traffic you’ll require to reach this figure.
Some of my blogs consistently get over 10% CTR, while others get under 2%. Some of my sites get CPC of $3-$5, while others never get higher than a quarter.
Can you guess what the RPM is on the example site above?
If you answered $50, you’re correct. Remember, RPM is how much you would make for 1000 visitors on your website. If you got 1000 visitors at $1 CPC and a 5% CTR, that’s 50 clicks (5% of 1000) at $1 earned per click.
A $50 RPM is really great. If I were getting $50 RPM on a site, I would really start building it out with more posts and meaty content to boost those traffic figures.
You can then calculate estimated income based on your future traffic goals.
If you were to increase traffic on the site to 500,000 visitors a month, that is $25,000 a month!
So what does all this mean? How can this help you?
Like I said before, one of the reasons it took me so long to reach a full-time income online is because I never paid attention to these details.
I was targeting niches/keywords where the maximum traffic I would get IN THE BEST CASE SCENARIO was less than 5,000 visitors per month.
That didn’t mean the competition was any weaker, either. I was just terrible at niche and keyword research.
Which meant that I would put in months of work, pouring in the hours to build content for it, design the site, and build backlinks…
…and when the site finally became a success… it meant nothing.
The work wasn’t worth the reward. I did all that work for nothing.
All because I didn’t understand Adsense calculations, nor did I care to even think about them.
I was just excited to build a new site with the hope that that one would be the game changer that allowed me to quit my job.
When you’re doing niche analysis, when you doing keyword research, and when you’re thinking about creating your new site, always think about the potential payout.
Think about the traffic cap of the niche and keywords you’re targeting – Imagine the best case scenario – where you’re ranking #1 for every single major keyword you target… what’s the traffic potential? What’s the income potential?
Obviously, they will just be estimations.
You can’t accurately estimate traffic caps. The number you calculate of ranking #1 for every major keyword is going to be a LOT LOWER than the traffic you’ll actually get in real-life due to long-tail traffic.
But it’s better to calculate on the low end to be safe, rather than over-estimate your potential and be disappointed later.
These are the calculations that I run for any new niche I enter today. Although they’re just rough estimations, they give me the confidence to know that the effort I put into this site WILL BE WORTH IT.
The payout will be worth the hard work I put in.
Trust me, it gives you a ton more motivation when you know this ahead of time rather than just go in blindly.
If you already went through the Niche Book, you already have a massive head start and you simply need to go through it to find your profitable niche and keywords.