Would you believe a few crappy websites making $1000 a month are worth $200,000 ?
When I tell my friends how much time I spend working on my websites and how much income my efforts generate they generally tell me I’m wasting my time. I’m happy to let them think that but I look at it a different way.
I’ve got a full time job, I don’t need the money from my sites but it’s a nice bonus. If I looked at my hourly rate for the time I spend online then it wouldn’t be 20% of what I get for my day job.
But let’s look at it another way. I’ll use fictitious figures just to make the maths easier.
Monthly Internet Income : $1000
Annual Internet Income : $12,000
Bank balance required to earn annual internet income in interest : $200,000
(based on high interest account @ 6%)
Now I’ll admit that spending a chunk of my time on the net each weak isn’t as easy as having $200k in the bank but there is no way I could save that amount of money on my current wage. Even if I took on a second job I’d be looking at working 20 hours a week at $20 an hour for almost 10 years to have that much extra cash to invest.
And I have chosen to go down the path where my sites don’t need constant attention. I could cut back my online time to a couple of hours a week and I wouldn’t see my income shrink.
KingJacob | 24-Aug-07 at 6:56 am | Permalink
Its also extra useful for college students who dont have the time to work a job that makes that kind of cash.
Kirsty | 10-Sep-07 at 7:26 am | Permalink
That’s an interesting way to look at things, I’ve never even thought of that! I’d love to have a huge bank balance chucking me interest payments each month but it won’t happen for me either anyime soon. I know it’s not money for nothing (given all the time invested in the past) but once things are all set up it sort of feels like that. Can’t beat making m oney in your sleep!