40x Your Income
There's something that most people don't realize.
Let's say that you work ONE year to build your affiliate income and you'll earn $3,000/month.
Now some people feel like it's "only $3,000/month" and they think that going to a 9-5 job they might be earning more.
What they don't realize is that affiliate income is passive income.
It simply means that you'll keep on earning money AUTOMATICALLY even after you have stopped working.
Meanwhile, with a 9-5 job your income flow stops the moment that you stop working.
That's why it's not "only $3,000/month salary"... It's $3,000/month PASSIVE INCOME.
HUGE difference.
40x Your Income
When you are building your affiliate business, you're not working for a job, you're building assets = Automatic money-making machines.
Your affiliate assets can be, for example:
- Website/Blog
- YouTube Channel
- Email List
- Social Media Profiles
- Ad Accounts
- Etc.
One of the most popular platforms for buying and selling online businesses is called Empire Flippers.
I took a screenshot below to show you some examples.
First Red Column shows online business/website value that it's selling.
Second Red Column shows the monthly income that each online business/website generates.
Third Red Column shows the multiplier between monthly income and the value.
These are real numbers from a real marketplace. You can also see all the past sales on Empire Flippers. At the time of writing this, there's been sold over $314 MILLION worth of online businesses on Empire Flippers.
Your multiplier depends on a few different factors but we can say that a 40x multiplier is quite typical for established affiliate sites.
For example, if your site is generating $3,000/month the value of your site is $120,000.
If you have a site that generates $25,000/month, the value of your site is $1,000,000 = You are a MILLIONAIRE.
Of course, the exact value of your site depends on the niche and other things but I hope this gives you an idea of what you can expect.
$100 Affiliate Income Is not "Just $100"
Let's say that you spend 10 hours creating a YouTube video.
It makes you $100 during the first month.
You calculate that you only made $10/hour.
Correct?
Not.
If the video generates you another $100 automatically in the second month, you've now made $200 => $20/hour.
Let's say that it keeps on earning you $100/month passive income.
Using the 40x multiplier it means that you have just made $4,000 expected revenue.
=> You didn't make "just $100", you made $4,000!
Let's divide that by 10 hours and we've come to a conclusion that you've made $400/hour.
Now you'll start to realize why most people underestimate what they can achieve in the long run if they would keep on moving forward.
Does the 40x Multiplier Always Work?
There are many variable so it's impossible to give an universal answer.
However, if your expected multiplier is 40x it means that sometimes you can make much more than that, much less than that or the same. It's just a certain benchmark to compare.
How to Apply This 40x Principle?
There are several applications.
1) When you compare which income method to use: Sponsorships/one-time affiliate income vs recurring affiliate commissions.
Oftentimes sponsorships/one-time affiliate income may seem bigger at first but if you calculate the long-term game recurring commissions may become bigger.
2) When you evaluate your hourly income. As mentioned in the beginning, a certain income from a 9-5 job is way worse compared to the passive income from affiliate marketing.
You can come up with more applications in the comments below :)
Additional Benefits
When you make money with affiliate marketing, you have almost always a better purchasing power and other benefits than a person who makes the same amount of money from a 9-5 job or a brick-and-mortar business.
- Live ANYWHERE you want
This means that you can have a higher quality of life for a much less price than most people who work in "regular jobs".
- Work ANYTIME you want
Spend time with the people you love. Wake up whenever you want. Be your own boss.
- Make money in ANY WAY you want
As an affiliate, you can always find affiliate program that aligns with your values and interests.
It's Your Time!
- Roope "Revealing eye-opening affiliate secrets" Kiuttu
PS. I'd love to hear from your thoughts.
Have you realized this "40x multiplier" before?
How do you apply this with your own business?
Let us know in the comments below!
Recent Comments
36
I just checked for fun and you are right.
My website is worth approximately 40X what I make in a month according to Empire Flippers. And Flippa says it's worth a little less but still at least a 30X factor. Makes a guy wonder "what if..." LOL
I know was can't take these figures literally and think we're going to sell for that price but it's very encouraging! 🙂
Let's keep pushing forward! 🙂
Great post as usual Roope!
Thanks for sharing Denis.
Oftentimes you can sell for those figures literally. Depends on your site's monetization model and other factors though.
The difference between being rich and being wealthy is that anyone can become arbitrarily rich and make a couple of million dollars over alike of JOBs, just start a 401K in by age 35 and it's possible to retire with more than that in the bank at Age 65 so getting rich is not that hard.
Being wealthy comes when you can have that security blanket and have an income coming in that doesn't touch the nest egg and doesn't require more effort. It wraps you in the things you desire in life without threatening your estate.
You have summed that up in your passive income discussion really well.
Hello Roope,
Thank you for another inspiring and interesting blog post, it's appreciated.
This is where we really see the power of the Internet, it never fails to amaze me what can be achieved online and really quite quickly. I know for a fact that I have some quite old blog posts that are still making money. I wouldn't be able to see these results with a 9-to-5 job!
With any business whether it's online or offline, we start building gradually as a business grows. An online business can quickly produce passive income. I like your one hundred dollar example, Roope.
Have a great day and thank you for the inspiration.
Roy
Great information you are sharing! I hadn't looked at the business part quite like this, and it makes me feel extremely fortunate to be investing this way.
Thanks so much!
Happy Weekend!
Erlene
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I agree with you that if one continuously invest resources, efforts, knowledge and time in building a successful profitable website, it will eventually become a gold mine for reoccurring and passive income for the owner. Since it is not an instantaneous outcome but a process, you must keep searching for the knowledge and implementing it, until the desired result is in view/ achieved.