Archive for September 2013

Target 5000

One of my dream is to manage lots and lots of sites. The sites can range from informational sites like the one about wheat germ to celebrity fan sites like claudia romani (work in progress) to niche product sites like jumpsuits and rompers. Apart from it, I would also like to manage gaming sites like rage of bahamut.

 

So here is another target I am making for myself. To have around 5000 sites under my control in next 5 years. The sites will be divided broadly under the following 5 categories each having 1000 sites. I am expecting each site to generate around $50 of yearly revenue on an average so the total earnings should be around $2,50,000.

 

The broad categories are (The numbers in brackets are the current number of sites)

 

1) Gaming Sites (34)

2) Niche / Product Sites (121)

3) Celebrity Sites (21)

4) Information/Directory Sites (42)

5) Client Sites (15)

 

To reach this target, I would need to build around 1000 sites each year, which means around 20 sites each week. Assuming it will take 1 person to build a site in a week, I would need to have a team of around 20 people. The domain cost will be around 1000 x $11 = $11,000 yearly (plus the ones already built renewed each year) which will become 5000 x $11 = $55,000 by the time all the sites are built. Assuming 100 sites can be hosted in a hostgator reseller account, it will cost around $25 x 50 = $1250 per month which is $15,000 yearly. So the domain and hosting cost will be around $70,000 yearly.  To build the sites, I would need to hire around 20 persons for the content and 5 person team to manage the sites. Assuming it will cost around $400 as monthly salary for each person, it will cost around $400 x 25 = $10,000 monthly which translates to an yearly outflow of $1,20,000 as salaries. The total direct cost of this setup comes to around $70,000 + $1,20,000 = $1,90,000. Assuming $10,000 as other misc costs, it will be around $2,00,000 yearly. If the income projection as mentioned earlier holds, then I will get a profit of $2,50,000 – $2,00,000 = $50,000 yearly, which means around $4000 monthly.

 

Now if I work alone for around 200 hours in a month and charge clients around $20 per hour rate, I will earn the same amount as the expected amount from the site building. The question in my mind is which way should I pursue. There doesn’t seem to be large payoff for the large risk with building out the sites unless the site’s average earnings are north of $100 per year. Maybe I should just see how the current set of around 200 sites do in the coming year and then plan accordingly.