IDG TechNetwork Earnings Surprise Even Me

In practicing what I preach about always trying/testing new earnings opportunities I put IDG TechNetwork into my ad-rotation a month or so ago. I started with two TechNetwork CPM units in locations that using Adsense never earned more than $3/day, figuring that I didn’t have much to lose. I was pleasantly surprised when these new TechNetwork units were earning $7-$10 the very first day, and after just over one-month are now earning upwards $30 per day – that is over 10-times what those same locations were earning with Adsense units. If you have a relatively high-traffic website, I highly recommend that you at least test IDG TechNetwork’s CPM ads.

I’m also pleased that over the last few months, even though traffic was trending downward, earnings have been trending upward. Just a few days ago we had an all-time-high single day earnings record for Adsense, and even though Kontera has been absolute krap with all-time record low’s over the last several months, even it is beginning to get back to normal. Based on history, this upward trend seems seasonal, but this year it seems better than ever. Maybe this is a sign that the recession is coming to an end and advertisers aren’t as gun-shy as they have been for the last year or two.

How are your earnings? Post a comment and let us know if you are seeing upward or downward earnings, or no change at all.

Measuring The Success Of Your Community or Website

The other day I had a discussion with one of my webmaster friends about how “successful” his, mine and other websites or communities are.  This led into another argument discussion about how “successful” or “popular” is, or should be defined.  It was funny how strongly we disagreed on what should be one of the most fundamental and common ideas amongst all webmasters.

His argument is that you measure a community’s success by:

  • total number of members
  • total earnings

My argument is that one should measure the success of a community (or, website) by:

  • daily posts/member involvement
  • daily traffic
  • total earnings

We both agree that earnings is an important metric, but in my opinion, total number of members is meaningless – and of course, then I had to draw a picture as to why the member count is totally irrelevant and usually meaningless… Which I will now share with you.

If you run a Drupal community (probably the same with other systems, but i dunno), and you look at your membership data very closely, you will no doubt realize that a very, VERY high percentage of your so-called members are nothing more than spam-bots.  They may not actually leave any spam, but they are nothing more than a waste of your bits.   Don’t believe me?  Use the TROLL module and check the IP’s that they use – are they all from India, Korea, or Linux servers?   If you don’t require email validation, do they even have valid email addresses?  If you do use email validation, how many of them have actually validated their account?  How many of these accounts have ever made a post, or even been back to the site?

Since the beginning, I have always taken a hard-stance against these useless/fake accounts.  Of course we block many servers and proxies and use other tools like Bad Behavior and TROLL to block many of these bots.  We also use the Inactive User module to send warnings to inactive users which will hopefully bring them back to the site, but then deletes the accounts if they ignore the pleas to return to the site.  Another trick we use is to add an additional required-field to the basic Drupal user-profile – this will stop many bots cold for months.  After a while (6-12 months) the bots will figure out what to type in to that field, so I just change the field-name every few months and the bots get all confused again.  You can also use a CAPTCHA in the membership signup page but I have found that most bots laugh at captchas and dont even slow down.

So if the total number of members is meaningless on it’s own, what is important to determine how “popular” or successful your website or community is?  The answer to that depends on what is most important to you:

To many webmasters/community owners (myself included) the most critical metric is how active the community is: How many posts/comments are made per day.  For a website like GrownUpGeek.com, this is difficult because it attracts people that are new to computers and to the internet, and they often are not comfortable making posts.  It is important how active the community is not only because it clearly demonstrates that the community is alive and thriving, but also because it is that activity that is generating content which will in turn (hopefully) generate traffic and/or earnings – other important metrics.

Other webmasters or community owners may use traffic (unique visitors or page views) as ‘the’ measure of success or popularity.   This is a good measure, but (to me) should not be the most important metric.  Although more traffic usually translates into more members (which we now know does not matter), more earnings (yet, not always), and hopefully more activity, traffic alone should not be considered the most important metric.

Of course, if your website generates income, then total earnings may be what is most important to you regardless of how much traffic, members, or activity you have.  This is fine, except without activity or traffic, over time your earnings will surely suffer – meaning that even if earnings are a high priority to you, activity and traffic should be more important to ensure your earnings over the long-run.

In the end, I won the argument.  Either because I’m right, or louder.

What is your most important metric for determining the success of your website or when comparing to other sites?

More Traffic Does Not Always = More Earnings

From almost day-1 of my webmastering career I have been lead to believe that more traffic = more earnings. It was beaten into my head over and over in every eBook I read, every forum I browsed through, every “expert” blog I read, and by every other webmaster I’ve ever spoke with. For the most part of the last 5 or so years this has been true and I never questioned this law of nature – all was right with the world.

But recently I started to notice a slide in daily traffic. I was getting a bit panicky and waiting for the corresponding drop in earnings – but, it never happened. Traffic was falling, earnings were steady or even increasing. Have the experts been wrong all this time? Is it the beginning of the end of days? Could this be due to global-warming? Is this another sign that Dec 21, 2012 is not really just bullshit!?
I put my Mythbusters hat on, and decided to examine my earnings history with regards to traffic for the last few years and see if I could bust this myth. I also put on my six-sigma shoes (which are really, really old and dusty and hardly even fit now) and invested a good 5 or 6 minutes hastily throwing together a graph of my traffic overlayed on my earnings.

(click the graph to view full size)

The graph shows traffic, in blue and earnings in green – from February 1, 2009 through September 10, 2010. Earnings are a combination of one PPC network (Adsense, Yahoo Publisher Network (may it rest in peace), or Microsoft Pubcenter) and one inline-text provider, either Kontera, InfoLinks or Chitika.

As you can see on the left side of the graph through most of 2009, the old saying was true: More traffic equals more money – although the earnings were low, the spikes and valleys match up for both earnings and traffic.

But, beginning around the end of 2009 things started to change. Traffic increased a bit, but earnings increased more – I attribute this to the recession turning around. But a few months after that it got even stranger, with several totally unexplainable spikes in earnings with little or no corresponding increases in traffic and even some spikes in traffic with only slight increases in earnings.

On the far-right of the graph, in the last few months, you can see a steady downward decrease in traffic, and yet consistently high earnings, and even a few moderately high earning peaks – ALL WITH LESS TRAFFIC.. Has the PPC world gone mad!?

After a little more research I figured out the cause for what seems like a total breakdown of the elementary laws of making money online, and the explanation is actually pretty simple. For quite some time, the website has been receiving high amounts of traffic on a few pages/subjects that just do not earn well – actually, they earn every little now days. Most of these are around the subject of Myspace (does anyone really use Myspace or generate any earnings from it anymore? Myspace is SOO 2006!) So when traffic to these pages began to drop, either due to loss of my Google rankings on the subject, or more likely, the fact that nobody really uses Myspace anymore, it didnt affect earnings at all – and earnings from the rest of the site in fact continue to rise. The same thing in reverse happens when we get a sudden surge in traffic on a subject/pages that advertisers just don’t care about. This explains that large blue traffic peak near the middle of the graph. For several days GrownUpGeek.com was ranking #1 for several searches regarding the wildly popular (flash in the pan) game “MyBrute”. It brought in butt-loads of traffic (and, I choose that word “butt load” appropriately based on the traffic), but the earnings weren’t there due to either mistargeted ads or very low paying targeted ads.

So boys and girls, the old myth “More traffic always equals more earnings” is BUSTED!

Do not try this at home – I am a professional

How Much Would You Sell Your Website For?

I’ve recently been in talks with a media company that has expressed interest in purchasing GrownUpGeek.com.  I made it clear to them up front that I was not really interested in selling, but I would listen to what they had to offer.

What is the real value of a website? The standard way to valuate a website is to take it’s average yearly earnings and multiply that by 1 year, or 3 years, or even 5 years.  This would put the estimated sale value of Grownupgeek.com somewhere in the neighborhood of $300,000.  Of course, if the buyer is more interested in just the domain name because it matched a new product or service, the value to the buyer could be much more, but sadly I have no such luck.

Going into the talks I knew/assumed that the company would already have an idea of the “standard” value of GrownUpGeek.com ($200,000 – $300,000) and I was already prepared to turn down an offer of that amount.  WHY?  Because the website will generate that much money in 4 to 5 years.  If I sell the website today for say, $300,000 then subtract taxes, escrow fees, attorney’s fees, and whatever other fee’s that come up, I would actually be losing money as opposed to holding on to the site for 3-5 years.  This does not even take into account the emotional attachments to “my baby” – I have spent the majority of the last 5 years of my life tending to, feeding, & caring for the website.  It’s my hobby, it’s my LIFE!  What the heck would I do without it?  Sure, I would have a couple of hundred thousand dollars in my pocket – but I will have that anyway over the course of the next few years.

So when asked by the big media company “what kind of number did you have in mind Mr. Brown?“  I responded with something closer to 2.5 times higher than “standard” value.   (I could hear the gasp in the room)..  Some kind of bargaining technique?  NO – It’s just worth more to me than a few hundred thousand dollars that I will most likely see anyway in the next few years.  Unfortunately the media company does not assign the same emotional value to a website that I do, and as expected, they thanked me for my time.

How much is your website worth to you?  Do you assign any sentimental or emotional value to it?  Even if it’s “just a business” to you, could you walk away from it for only 3-5 years worth of your current earnings?  Am I just a sentimental fool?

Holiday Advertiser Gifts

Ahh the holidays.. 2009 Kontera Gift

Yesterday the FedEx man threw a box at the door and to my delight it was the annual holiday gift from Kontera.

Just like every year I eagerly shredded the box and was greeted this time with a nice, porcelain coco-mug, complete with a package of Dutch Hot Cocoa.

But skrew that!  This year, the best gift from Kontera is how it’s been earning.

Kontera is still performing better in the last month or so that it has all year, and still out-earning Adsense on most days – heck, it’s just like the good-old days before the recession.  That peak on December 11 on the graph below was the highest earning day in nearly two years!

kontera-earnings-09

If you aren’t using Kontera then it sucks for you because you’re already missing out.  But it’s not too late to get started.  Go over to Kontera.com and open up and account and give it a try.  If you’ve used Kontera in the past and weren’t happy with the performance, NOW is the time to test it on your site again.  If you already use Adsense on your site to generate income, Kontera is a great way to add more revenue without using any of the valuable space on your pages.

This post contains affiliate links.   If you hate affiliate links you can go directly to www.kontera.com

Kontera Earnings UP For The Holidays

It’s probably just a seasonal high, but for the last few weeks Kontera earnings have been trending up, and for most days in December have exceeded my Adsense earnings.

Kontera Earnings

If you have a Kontera account that you’ve stopped using because because you weren’t happy with it’s performance, NOW might be the time to blow the dust off and throw it back on your site to see how it does.  If you don’t have a Kontera account you can sign up HERE, but it might be too late to cash-in on the seasonal-high.  And don’t forget – you CAN use Kontera with Adsense.

Affiliate Links: This post contains affiliate links.  If you hate affiliate links you can go directly to www.kontera.com the hard way.