There’s something that most people don’t realize.
Let’s say that you work ONE year to build your affiliate income and you’ll earn $3,000/month.
Now some people feel like it’s “only $3,000/month” and they think that going to a 9-5 job they might be earning more.
What they don’t realize is that affiliate income is passive income.
It simply means that you’ll keep on earning money AUTOMATICALLY even after you have stopped working.
Meanwhile, with a 9-5 job your income flow stops the moment that you stop working.
That’s why it’s not “only $3,000/month salary”… It’s $3,000/month PASSIVE INCOME.
40x Your Income
When you are building your affiliate business, you’re not working for a job, you’re building assets = Automatic money-making machines.
Your affiliate assets can be, for example:
One of the most popular platforms for buying and selling online businesses is called Empire Flippers.
I took a screenshot below to show you some examples.
First Red Column shows online business/website value that it’s selling.
Second Red Column shows the monthly income that each online business/website generates.
Third Red Column shows the multiplier between monthly income and the value.
These are real numbers from a real marketplace. You can also see all the past sales on Empire Flippers. At the time of writing this, there’s been sold over $314 MILLION worth of online businesses on Empire Flippers.
Your multiplier depends on a few different factors but we can say that a 40x multiplier is quite typical for established affiliate sites.
For example, if your site is generating $3,000/month the value of your site is $120,000.
If you have a site that generates $25,000/month, the value of your site is $1,000,000 = You are a MILLIONAIRE.
Of course, the exact value of your site depends on the niche and other things but I hope this gives you an idea of what you can expect.
$100 Affiliate Income Is not “Just $100”
Let’s say that you spend 10 hours creating a YouTube video.
It makes you $100 during the first month.
You calculate that you only made $10/hour.
If the video generates you another $100 automatically in the second month, you’ve now made $200 => $20/hour.
Let’s say that it keeps on earning you $100/month passive income.
Using the 40x multiplier it means that you have just made $4,000 expected revenue.
=> You didn’t make “just $100”, you made $4,000!
Let’s divide that by 10 hours and we’ve come to a conclusion that you’ve made $400/hour.
Now you’ll start to realize why most people underestimate what they can achieve in the long run if they would keep on moving forward.
Does the 40x Multiplier Always Work?
There are many variable so it’s impossible to give an universal answer.
However, if your expected multiplier is 40x it means that sometimes you can make much more than that, much less than that or the same. It’s just a certain benchmark to compare.
How to Apply This 40x Principle?
There are several applications.
1) When you compare which income method to use: Sponsorships/one-time affiliate income vs recurring affiliate commissions.
Oftentimes sponsorships/one-time affiliate income may seem bigger at first but if you calculate the long-term game recurring commissions may become bigger.
2) When you evaluate your hourly income. As mentioned in the beginning, a certain income from a 9-5 job is way worse compared to the passive income from affiliate marketing.
You can come up with more applications in the comments below 🙂
When you make money with affiliate marketing, you have almost always a better purchasing power and other benefits than a person who makes the same amount of money from a 9-5 job or a brick-and-mortar business.
- Live ANYWHERE you want
This means that you can have a higher quality of life for a much less price than most people who work in “regular jobs”.
- Work ANYTIME you want
Spend time with the people you love. Wake up whenever you want. Be your own boss.
- Make money in ANY WAY you want
As an affiliate, you can always find affiliate program that aligns with your values and interests. Nowadays you can even start an affiliate marketing business without a website which further reduces your costs.
It’s Your Time!
PS. I’d love to hear from your thoughts.
Have you realized this “40x multiplier” before?
How do you apply this with your own business?
Let us know in the comments below!
Originally posted on Wealthy Affiliate