How to Become Your Own Boss by Creating Your Own Wealth Online

The following is a guest post by Patrick Meninga of Make Money With No Work.

Become Your Own Boss

How do you become your own boss in the world of internet marketing?

The key is that you have to generate consistent monthly income, enough to cover your living expenses. If you can achieve this income consistently then you can walk away from your regular day job and effectively become your own boss.

So the question becomes: How do you do that? How do you generate a consistent monthly income online?

Let me show you how I was able to become my own boss.

Online Business Models

There are undoubtedly a million and one ways to generate income from the internet. I have expertise in exactly one of these business models, and that is in building an authority website.

I know that other types of online businesses do exist. For example, someone might create an ecommerce store that sells products directly. Or, they might create dozens of tiny niche websites that make money from advertising.

And so on.

The method that I used was to create a large authority website, and I put all of my time and energy into that one web property. Because the topic was lucrative and had real profit potential, I was able to sell the website for a very large sum of money after my traffic reached a certain point. My earnings per month were $2,250 with only about $100 in business expenses at the time of the sale.

There are some huge advantages of generating income with an authority website, and only a few disadvantages that can be easily overcome.

Advantages:

  • Relatively stable income compared to some business models, such as niche websites.
  • Flexibility in monetization – you can run ads, sell affiliate products, add on a membership site, sell a product, etc.
  • High sale price – if you choose to liquidate (like I did) then you will command a high asking price for your web property (I sold mine for $200,000 after putting in roughly 300 hours of work into it).

Disadvantages:

  • Takes a long time to reach profitability and steady income. I would estimate at least 2 years for most people.
  • Takes a high volume of high quality articles. This either requires significant time or money investment, or both.
  • Requires some level of promotion and marketing. This is an additional expense that must be paid with either time, money, or both.

To be fair though, many other online business models also require a fair amount of promotion, and many of them will also require plenty of content generation as well.

I am biased because I made my success with the authority website model. Certainly you could do worse–for example, I have friends online who have lost all of their income after all of their niche websites were penalized by the search engines. There is risk with any business, of course.

Creating Value with an Authority website

In order to mitigate the risk from loss of income and further stimulate organic growth of your business, you should focus on creating real value with your website and delivering an outstanding user experience to your site visitors.

How do you do that?

You create value with your website by:

  • Offering genuine insight and unique ideas with each article that you publish. Do not just rehash information that can be found elsewhere on the web. Be original, and useful.
  • Create resource articles that offer timeless value. One way to do this is to go into extreme detail when explaining how to do something.
  • Break down complex ideas (such as how to become your own boss with an online business) into step by step instructions that give a clear idea of what success would entail.
  • Form a community that brings interested people together and gives them a platform to help each other progress in some way.

If your website is merely generic information for the search engines to munch on, you have missed the point and any income you generate is living on borrowed time.

Instead, create a real destination; a website that is genuinely useful and worthy of recommendation.

Focusing on Income Growth

If you really want to become your own boss then you need to be able to pay yourself.

This means that you need to be able to pay your monthly expenses using the income that you generate from your online business.

To meet such a goal, I have two recommendations for you:

1) Focus your business activities on increasing search engine traffic to your website. This is best accomplished by adding lots of quality content to your website every single day. Volume matters, but quality must remain high. A tough balance to strike.

2) Start promoting your website by building strong links. Do this with guest posting and real world networking. Get to know other webmasters in your niche. This takes time, effort, and patience. Invest in it heavily. The time will pass anyway, and your site needs time to age as well. You cannot succeed without forming some alliances and healthy connections on the web in this manner.

When you own and operate an authority website, it is easy to become distracted. Some people spend all day updating social media services instead of focusing on activities that lead to future income: More quality content on-site, and more quality links from guest posting and networking efforts.

Become Your Own Boss

If you follow the ideas in this article and build an authority website, you are halfway there to becoming your own boss.

The second half is to grow your income to the point that it exceeds your monthly living expenses, and then simply quit your job.

That might sound like a fantasy to you at this point, but I can assure you that the opportunity really exists. The web is still quite young.

I worked on my authority website for about 300 hours total over a four year period. If I had known how successful it was going to be I probably would have done the 300 hours of work in six months instead of four years.

After earning a solid income for four years straight I eventually sold the website for $200,000. My effective pay for creating the website turned out to be about $900/hour. Not bad at all for something that was effectively a labor of love.

If you want to become your own boss then you need to create your own wealth. Do this by creating real value.

Yes, it takes real work. But, what else are you going to do with your precious time and energy?

Go build something amazing!

Image Credit: MemeBase

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Comments

  1. says

    Yes this is true every one wants to run their own business but this is not possible. Beside that you describe so well how we can do this and achieve nice heights but one more thing in that we shouldn’t ignore disadvantages in that.
    India carnival just posted Goa Carnival 2012

  2. says

    One of the biggest disadvantage about building a business on the internet is its instability. For example after the Panda update, many bloggers gave up, as their sites disappeared. Another problem is the times it takes. But once the initial hurdle is over, it can bring good income with the comfort of your own home.
    Shalu Sharma just posted 1. Why are Biharis so arrogant and selfish?

  3. says

    @ Adi – the website that I sold was spiritualRiver dot com.

    @ Shamelle – I agree, it takes time to build up to this level of freedom! Totally worth it though!

    @ Jamie – Yes, I am trying to duplicate my efforts with a new site. If you click on my name you can see my effort on that with an MMO site. I am realistic about it though and I do not expect big things for at least another year or two.
    Patrick just posted Value Free Time and Amazing Experiences Over Buying New Stuff or Having Monthly Subscriptions to Things

  4. says

    @ Paul – You are right, it is not gonna happen overnight, even if you put in the 300 hours of work that it requires. It takes time for link authority to kick in, takes time to build a readership, etc. But I still think you there is a formula for working smart and getting a good return on your online efforts. But I agree, it is not a 6 to 10 month deal. More like 2 to 3 years….

    @ Ryan – LOL….good observation! This guest post is definitely more “carrot” than “stick,” but I can offer at least a few real strategies that I used to get my site up to six figure territory:

    1) Sought out the hard to get guest posts, then started link building campaigns for those guest posts. In other words, create a relevant link via a guest post, then boost that page by building links to it. Over time, this is VERY powerful indeed for building serious authority.

    2) Built a community by installing a forum, then redirecting comment threads to that forum. A thriving community was a big part of what created six figure value, even though it was mostly indirect (forum traffic is not great for monetizing).

    3) Created resources for the website that exceeded the quality of what my competitors offered. I blew them all away with 12 free eBooks of outstanding quality, blanketing my topic, all of them for free…..

    So those are just 3 ideas that I think were critical for my success.

    • says

      Patrick, congrats on the sale of the site. It’s an inspiring story, but as the previous commenter mentioned, there weren’t a lot of tactical examples of how to get to the stage where you can sell a site for six figures in this particular post.

      I love the 3 tips you offered above though. Those are solid, ready to grasp and reproducible. Looks like you have topics for your next three guest posts ready to go. ;)

  5. says

    There are so many people looking to make money online these days and this is a good overview because you share that it doesn’t happen overnight. One important element that you mentioned is focusing on what brings the income. It’s too easy to become distracted by non-money making activities.
    Stacy just posted 7 Reasons You Aren’t Making Money Online

  6. says

    @ Stacy – Yeah it took me a long time before I figured out “wait a second! I should focus on income as my most important metric!” Crazy how we could miss that amid all the stats, social stuff, etc.

    @ Christie – Awesome, so glad it helped you. I hope you can take one of your websites to the next level and earn some serious income. I am excited for you!

  7. says

    Patrick, thanks for sharing your story. You definitely have a similar strategy to me, but I do want to know where/how you sold your blog. I only really know about Flippa, and I mostly see less expensive blogs selling there.

    What are your thoughts on the best ways/places to sell?
    Kyle Judkins just posted How to Add Email Reminders to Gmail

  8. says

    Thanks Patrick for the article. For me, its fairly easy to make or create business or income online, the hard part is, making CONSISTENT and RELIABLE (high paying) business/service online. Hope this year, I can make one. =)
    RonLeyba just posted 5 Tips for Fashionable Moms

  9. says

    @ Pritam – Yup that is the same strategy I use, only instead of multiple sites, I pour all of my effort into just one. You can get great results either way!

    @ Ronleyba – I think the key to consistent and reliable income is correlated to value. The more value you provide with your website, the more durable and sustainable the income will be. Thanks for your comment!

  10. says

    I think another strong component on the time to reach profitability is your pre-existing web presence. As s brand new entity, the first several months/few years or so is spend gathering that audience and recognition, but if you can establish yourself within the community of people that you are looking to reach with your online business, you can kick start your business with a bit of a following. A prime example of this would be Sean “Day9″ Plott, who spent a few years becoming a notable member of the online video game community before launching his own brand (clothing, wed show subscriptions, events, etc) online with a rabid fan base that brought immediate profitability.

  11. says

    ” $200,000 after putting in roughly 300 hours of work into it” that is great achievement that not many people can get. Congratulations for that.

    “Be your own boss” is absolutely interesting for general people to read. Thanks for the easy to follow tips you provide in your post
    Okto just posted How to Get Easy Traffic: Aid for Online Marketer

  12. says

    @ Clint – Yeah I am hoping some of my established presence in an MMO community will help to launch my current project in this exact manner…..good tip!

    @ Okto – Thanks for the kudos and good luck to you on your journey!

  13. says

    I agree with you that building up a larger authority website has better potential for steady income than a small niche website. Though it takes a long time, it may be worth the effort to try and create a large authority site as opposed to a small niche site.
    Richard just posted eToro Forex Trading with Copy Trader

  14. says

    @ Richard – Yup….I never had much luck with smaller niche sites. Just my experience. I know some have done well with them but not me. Good luck to you!

  15. says

    Loved this post. I figured it was going to take a lot of content to ever begin making some income. I just don’t post the content I need to post. I’ve got interesting and helpful things to say but I also have a few different sites that I try to work on at the same time.

    One site is a stock photo site which ranks well for many images and I just started adding articles to it. My first article has received about 1400 hits in three days thanks to StumbleUpon, not sure if that is quality hits or not or just instant bounces. I also work on a social media/blogging site. I rank well for some terms like “purpose of twitter” (page 1) and then I have my pizza site which I’ve listed as my website in the website field here.

    If only I could stay focused on one thing or better yet, if only I had never started other websites which may or may not account for anything.

    Your post is inspiring. I need to create interesting and helpful articles every day for my site(s). If I can’t do it for all of them, I should do it for the best one.
    Brian just posted Top Ten Pizza Jokes and Stories

  16. says

    @ Kyle – What happened is that I contacted almost all of the advertisers who appeared on my website via AdSense, and attempted to negotiate a direct ad deal with them. A few of them took me up on it, and those who did got access to my analytics data. One of them liked what they saw and they told me to make them an offer on selling my site. I gave them a fairly high-ball offer and they negotitated down slightly (from 250,000 to 200,000). So I took the deal.

    So really, they approached me. I was not even looking to sell at the time.
    Patrick just posted Free Book – Ninjanomics: This Changes Everything

  17. says

    @ Brent – It took me about 4 years before I sold out for six figures. At the three year mark I had exceeded $1,000/month in income, quickly followed by $2,000/month in income.

    As for investing in the site, it was mostly my time. I wrote about a million words total across 1,500 articles and 10 free eBooks. I also spent some on manufactured links, usually about $100/month. I only did this after I was earning $600/month though.

    Later I stopped spending money on manufactured links as their effectiveness decreased. These days I focus on guest posting for promotion and link building.

    I bootstrapped the project and got it up to $600/month without any outsourcing or major expenses. After that I simply reinvested maybe $100 to $200 per month of the profits into marketing and promotion. I wrote all of my own on-site content. I think outsourced writing is a mistake, especially if you are trying to build a long term business.
    Patrick just posted How to Market Your Website by Getting a Few Premium Links

  18. says

    Hi Patrck,

    That’s great to hear actually. I love the fact that you actually spent the time and built the site from the ground up. There is a lot more to be said about the site then if you had simply outsourced everything. I’ve made a few sites that have made $600-800 a month but that has always been the cap. I’m trying to get a site into the $1k/month range and then keep pushing it to potentially hit $5k+/month.

    -Brent

  19. says

    Great Article Patrick!

    To say “become your own boss” is very easy but actually it takes a lot of time and hard work to generate a handsome income and improve your livings.

    While, I am doing this in the following two ways;

    1. I make a note of my work priorities on a paper.

    2. Whatever I do I make a checklist of that work for future reference’s.

    Secondly, to create an authority over website you really have to provide useful content & that takes lot of research and with lot of work.

    So, I advice to those people who want to be their own boss, they should have do that with clear idea of what they are going to reach & have patience & continuously provide great content. This will not pay of over night but eventually, it will.
    Ayaz just posted Kristi Hines Shared Her Best Formula to Build High PR Backlinks