Income Considerations and Examples
Bill’s Internet Business
Bill has been in Internet Marketing for two years and wants to retire. He has 17 websites that average $100 each month. Some months they may average $70 and other months $120. But month in and month out they average $100.
Bill has analysed his income from each site. Ninety (90) percent of his income comes from six (6) sites. Four (4) sites have income that is increasing each month. Three (3) sites have decreasing income each month. Bill figures that his income will increase about three (3) percent each month or thirty (30) percent each year.
Bill is a free marketing buff. He is a member of WAU so he has no site hosting cost. His cost are: WA Membership which he pays annually to save cost, Internet Service (ISP) and the cost of maintaining his computer and printer. He also uses JAAXY and Aweber services. His total annual cost are under $1000.
In his day job, the earns $17 an hour and he has $10.00 (60%) in benefits or $55,300 a year. He is also earning about $20,000 from his Internet business. So his total income is about $75,300 each year.
Solution: Bill decides to work both jobs rather than to lose significant income. He will reevaluate his situation in a years as he continues to improve his Internet business. Bill thinks that there would have to be a significant increase in his Internet business to dump his day job. Even if he increased his Internet income to $100,000 a year, he would still lose $55,300 if he quit his day job. Bill likes his day job. He is not under stress and he likes what he is doing. And while he is doing it, he is stuffing money into investments that will assure him future income for retirement or buying that cabin in the hills he has always wanted.
Mary’s Internet Business
Mary is a PPC marketer. She has over 100 websites and 200 Squidoo lenses where she tests products and programs and markets. Her return after paying for clicks and all other expenses is sixty (60) percent of her income. Her income is now at $165,000 / year and is increasing thirty (30) percent each year. She is making about $100,000 / year which will increase to at least $130,000 / year next year.
Mary earns $65,000 / year as an attorney. She is continually under stress and she hates the firm she works for. But there are long term benefits and she could become a partner. Mary has two children. They are in day care and every morning there is a rush to get her husband fed and the kids fed and ready to go to school. Her husband is an airline pilot so he has an irregular schedule and is not always there to support her.
Her work schedule and her Internet marketing have strained her marriage. She is always tired even though she jogs with her husband three times a week to stay in shape. They have an expensive home in a high tax area. After talking things over with her husband they decide to sell the house and move into the country. Mary resigns from her attorney job. Takes care of her kids with the help of a nanny and works in blue jeans. She has a lovely garden that she has always wanted and the kids have a few pets to play with including a donkey named Oscar. Sometimes when the kids are playing, she sneaks off to the bedroom with her husband. The new baby will arrive in December.
Next Page: Conclusions
Bill’s Internet Business
Bill has been in Internet Marketing for two years and wants to retire. He has 17 websites that average $100 each month. Some months they may average $70 and other months $120. But month in and month out they average $100.
Bill has analysed his income from each site. Ninety (90) percent of his income comes from six (6) sites. Four (4) sites have income that is increasing each month. Three (3) sites have decreasing income each month. Bill figures that his income will increase about three (3) percent each month or thirty (30) percent each year.
Bill is a free marketing buff. He is a member of WAU so he has no site hosting cost. His cost are: WA Membership which he pays annually to save cost, Internet Service (ISP) and the cost of maintaining his computer and printer. He also uses JAAXY and Aweber services. His total annual cost are under $1000.
In his day job, the earns $17 an hour and he has $10.00 (60%) in benefits or $55,300 a year. He is also earning about $20,000 from his Internet business. So his total income is about $75,300 each year.
Solution: Bill decides to work both jobs rather than to lose significant income. He will reevaluate his situation in a years as he continues to improve his Internet business. Bill thinks that there would have to be a significant increase in his Internet business to dump his day job. Even if he increased his Internet income to $100,000 a year, he would still lose $55,300 if he quit his day job. Bill likes his day job. He is not under stress and he likes what he is doing. And while he is doing it, he is stuffing money into investments that will assure him future income for retirement or buying that cabin in the hills he has always wanted.
Mary’s Internet Business
Mary is a PPC marketer. She has over 100 websites and 200 Squidoo lenses where she tests products and programs and markets. Her return after paying for clicks and all other expenses is sixty (60) percent of her income. Her income is now at $165,000 / year and is increasing thirty (30) percent each year. She is making about $100,000 / year which will increase to at least $130,000 / year next year.
Mary earns $65,000 / year as an attorney. She is continually under stress and she hates the firm she works for. But there are long term benefits and she could become a partner. Mary has two children. They are in day care and every morning there is a rush to get her husband fed and the kids fed and ready to go to school. Her husband is an airline pilot so he has an irregular schedule and is not always there to support her.
Her work schedule and her Internet marketing have strained her marriage. She is always tired even though she jogs with her husband three times a week to stay in shape. They have an expensive home in a high tax area. After talking things over with her husband they decide to sell the house and move into the country. Mary resigns from her attorney job. Takes care of her kids with the help of a nanny and works in blue jeans. She has a lovely garden that she has always wanted and the kids have a few pets to play with including a donkey named Oscar. Sometimes when the kids are playing, she sneaks off to the bedroom with her husband. The new baby will arrive in December.
Next Page: Conclusions
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