Income sources

It’s one thing to know how much money a website is making, but it’s an entirely different thing to know how a website is making all of its money! You want to know what different sources a website has that are bringing in money, and how much money each source is bringing in. This knowledge is important for two main reasons.

First of all, a website with several different income sources is typically a lot more stable in terms of its earnings. If a website has one income source, and that source becomes ineffective, then it’s going to be making very little money, if anything.

I will say that this is a weird aspect, because it goes both ways. On one hand, it would be good to buy a website with many income sources because it’s very stable. On the other hand, it would also be good to buy a website with only one or two income sources because it’s got a lot more potential for growth.

I will add in here that the distribution of earnings between sources should be noted. If one revenue source has been decreasing over time, for example, you’ll need to find out why that is. Does it just need a refresh, or is it an early sign of a failing website?

The second reason it’s important is actually why you want to find a website with few income sources — adding an extra revenue source or two is an insanely effective way to make quick wins on your website and increase the value almost instantly!

If there’s a website making money from affiliate marketing but isn’t using ads, adding ads to the website is a process that takes 10 minutes but could double the value of the website! These are what we’re keeping our eyes open for.

There are many different income sources that a website can have. Some of the most common ones that you should look out for are: Display ads, video ads, sponsored posts, affiliate sales, digital product sales, and physical product sales.

You’ll typically see websites that have effectively used display ads and affiliate sales, but leave a lot on the table when it comes to product sales, video ads, and sponsored posts.