This is the story of how I went from being a bored financial advisor to owning a financial comparison website that lets me travel the world on the profits.
I’m usually not comfortable telling people how to make money online but I wanted to share my story because if I can do it then you can do it. I’ll also give you some tips on what NOT to do when starting a niche site like this. If you avoid the mistakes I’ve made then you’ll save yourself a lot of wasted time and energy, and you’ll probably start making money a lot more quickly too.
My story
I am a qualified independent financial advisor, and although I had a decent job in the UK financial services industry, like many other people I found myself dreaming of making money online and living by the beach. I tried a bunch of things and nothing seemed to work until I started Compare Logbook Loans, a financial comparison site in the obscure niche of logbook loans that I’d never even heard of before.
It wasn’t an easy ride, and I’ve made lots of mistakes along the way, but it now earns me and my business partner a basic living each month, and since it really took off I spent most of 2011 in Thailand and Vietnam living by the beach. The site won’t make me rich – it now makes around $8,500 net profit per month between two of us – but because I get paid in UK pounds it allows me to live an excellent lifestyle in exotic places where I benefit from the great exchange rate.
There are many different online business models but the one I have managed to get working is a cross between affiliate marketing and lead generation. Put simply, this means that I get paid a commission by loans companies every time my website sends them a new visitor who goes on to become a customer. Everything is tracked automatically by online software and the lenders simply transfer money into my bank account at the end of the each month – it’s great!
Obviously there is a large amount of work of be done on the website each month – it’s not one of these automated cash machines that you hear about – but in relation to the income the amount of hours worked is pretty good and I can’t complain.
What NOT to do
Rather than just give you give you a chronological account of what I did, it might be more useful for you if I break it down into mistakes I made and how you can avoid them. I have always found negative advice more useful, simply because it is much easier to know when something does NOT work than when it does, because there are so many variables involved, including blind luck and random chance (which most of the so-called “gurus” never seem to mention.)
Here are a few of the mistakes I’ve made and what I learned from them – I hope this helps you to shave at least a year off your learning curve!
1. Don’t choose a niche you absolutely no interest in (unless you have a budget set aside for hiring writers.)
If you choose to create a niche website in an area you have no interest in then you will get bored of it before your site has a chance to start making money (this is especially true if you are relying on SEO traffic, which takes time.) The reason I chose the finance niche was because my background is in financial services, but obviously I don’t have a genuine passion for bad credit loans! This made writing content for the site extremely difficult as I was writing about things I had no interest in, and for long periods I didn’t add new articles to the site because it was boring. It also makes link building very difficult because many personal finance sites won’t link to sites that deal with bad credit at all.
The reason I chose the logbook loans niche in particular was because I had used it as one of my test campaigns for learning how to use Google Adwords. This was over 3 years ago and in those days this niche was quite unknown so I found myself making an easy profit at the time. At this point I thought it would be a good idea to promote the site using SEO techniques as well.
2. Don’t write spammy low-quality articles just for SEO purposes.
This came back to haunt me last year at the Google Panda update. Websites could get away with this in the past and still climb to the top of the rankings but the Panda update has made this much harder, and we can expect more of the same as Google keeps trying to filter out low quality content in favour of useful and interesting stuff. During the update my site dropped from number 1 for its top keyword down to number 4, which in financial terms meant a loss of 75% income.
What I did to remedy this was a gamble but it seems to be starting to pay off. I deleted over 120 pages of low-quality repetitive content and added some genuinely useful and informative articles in their place. There is no way of knowing for sure but I think this is what stopped my site going disappearing entirely (which is precisely what happened to so many other people during the last update.)
Another problem related to this is that because I thought I just needed articles for SEO purposes (i.e. lots of keywords endlessly repeated in every possible formation) it prevented me from discovering the power of guest posting, both as the best SEO technique for link building, and as a way of getting excellent free content that my visitors would enjoy. For example, look at the articles on Grad Money Matters and the other top personal finance blogs – they are all useful, informative and entertaining, written in order to help other people get what they want and need.
3. Don’t think about “making money” instead of “creating value for other people.”
This mindset is the underlying cause behind the above two mistakes. If all you think about is making money then you won’t create useful content for other people, you’ll use pushy sales techniques that frighten visitors away, and in many cases you’ll pick the wrong niche in the first place. Once I changed my mindset to creating value I immediately came up with dozens of article ideas and possible partnerships with other personal finance websites. If I had known this 3 years ago my site would probably be earning at least 3x what it is today.
4. Don’t be impatient and quit too soon.
You have to be smart enough to know when you’re getting lucky. So if something works just a little in the early days then it is most likely that a bit of work and focus will get it to be successful in the future. After my initial success using Pay Per Click I hired an SEO company with the profits and they totally failed to deliver. As the PPC earnings dropped over the next few months I found myself losing money rather than making money, so I got disillusioned and quit working on the logbook loans comparison site altogether.
This was followed a year of flip-flopping from one project to another with no real success, and lots of self-loathing in the process! Then came one of those beautiful coincidences that happen every so often. Two years ago Yahoo accidentally charged my credit card for some ads that I had cancelled several months previously. On a whim I decided just to use the credits to buy Yahoo PPC ads and use them on promoting the loans site. I really lucked out here and it started turning a profit on the very first day!
It’s a tiny niche and there is not enough traffic to earn a living just doing PPC alone, but this time I was smart enough to know that I was getting lucky and that of all my current projects this was the one with the most potential. So I decided to start developing the site in order to attract organic search engine traffic rather than have to rely on paying for ads all the time. If it hadn’t been for Yahoo’s mistake I never would have gone back to the site at that time and would have missed the opportunity.
Conclusion
I really hope a few people reading this take inspiration from it and go out there and build their own money-making website so that they can quit their job like I did. I feel grateful every day and don’t take anything for granted, it took a long time coming.
If I had to give one piece of advice to beginners I’d say: be smart enough to try lots of things until you find something that works, then be smart enough to know you’re getting “lucky” when something eventually does….
Hey, Sam! You wrote a new article! Yay! It’s not easy to let go a job that you know it brings money monthly and start something that doesn’t guarantee you a monthly revenue.
Marian recently posted..What To Look For When Buying Leather Furniture
I would have to agree here, it’s the same with any side business. I’ve been looking to get cut ties with my employer for a while now in order to pursue my dream 100% but it’s a lot easier said than done.
Nothing is certain, and if you still have doubts it is probably for good reason!
Keep working on it and when the time is right, it will make more sense to give up your day job than persavere with a job you hate (at least it was for me)
Building and monetizing your own website can be profitbale. A number of people I know make a full time living from their websites. It requires patience and perseverance and hard work but once it is established you can start another site and another and ….
Thanks so much for sharing your story, its always great to hear what other people are doing.It helps
to motivate us and inspired from you successful story. great job!
This is really a very inspiring story that can give a big help to inspire people. Quitting your job does not mean that you will just end up doing nothing because as you’ve mentioned there are things that you can do to make your own money. For sure as people will read this story that you have they can find ways on how to work on their own and be successful like you.
Patience, patience and then some more patience. And things will work out eventually!
Thank you for the post. It’s a real testimonial of what the most of us went through.
Lily Rose recently posted..Brain Supplements – Remember Better, Think Clearer, and Focus Faster
Very inspiring story. It just shows that niche marketing is still alive and working.
Gus Miles recently posted..Use HijackThis to Identify Corrupted System Files and Malware
This was a great article. I belive you hit the points exactly. For me it was number 4. I thought I gonna make money fast when I got into this. But I was way wrong there! But I did not gave up and now I making money online and it is the best feeling in the world. i don´t make so much that I can quit my dayjob but I know I will some day. Now It is a good extra income for me and my family.
Sandra recently posted..Vinröda converse
Self-introspection is a great start to achieve financial freedom. And it feels really good to earn money while liberating others from their financial inadequacy/ problem.
very inspiring article, i really think that if you`re doing something you love (your passion) for work then when the pennies come rolling in its an added bonus, all your time, patience and commitment will be worth it
One way to follow your dreams is to write goals and learn about them; that’s how I get my dream realised. I don’t know about quitting one’s job yet.
Thanks so much for sharing your story, its always great to hear what other people are doing. This is very inspiring and anyone would wish to have the same experience with you.
I quit my full time job a year ago, I have been working in much the same way as you did. Even though I am just getting started out and haven’t “made it” yet. It still feels better than working for the man! Awesome post.
Zac recently posted..Top 5 Best Values Gilbert Waterfront Homes
Zac,
Trust me you will never feel like you have “made it” as so much can go wrong in this game that you just have to hope you can always stay one step ahead…it can all come crashing down!
Never rest!
If you quit, you will be be eligible to collect unemployment benefit. Lay-off you will. Do not quit until you have another job line-up.
Gracie recently posted..Get Money that you need Now with Fast Cash Loans
Great story! I would stress the importance of the last item in your list: don’t “quit too soon.” Persistence is what often is the difference between making it and not making it. It will not make a difference if people are not interested in what you have to offer, but if you do, it is indispensable.
I can’t agree enough with this article. I’ve been going back and forth about starting a blog and just seeing where it goes. I just want to be able to share my advice and insight into my passions with the rest of the world and this article serves as a great guideline for me. Thanks for sharing your story.
So true! One must be passionate about their niche. If not, you could end up hating your online job as much as your day job. And, since we have the choice to go to work or not in our online job, that can lead to procrastination, which will lead to online failure.
The other salient point I took from your article is that we need to think of “creating value.” Making money will follow. Well said
David Sneen recently posted..How to Get a Lifetime’s Worth of Raises in 4 Years
I know lots of people who wanted to quit their day jobs just to earn money in an instant. In that way, they could find themselves in trouble because they don’t even know what’s the challenge behind being a freelancer. So before they actually quit from their jobs, they must be so sure whether or not they are totally ready of any consequences of their decision.
Beth recently posted..Business College Grants
Congratulations!!! Every person wants to be success but it is important to face many challenges and get knowledge about market demand. People always think about success but they have not confidence. I know it is hard to go ahead in market but not impossible. I have decided to start business and I am hardly working on it. At this time, I have not any story of success but one day I will give my success story. Thanks for some inspiration.
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“Don’t think about “making money” instead of “creating value for other people.”” Agree! Succeed is to give and to get. Don’t even think about getting when you’re not giving. You give benefits to other people and they’ll help you to achieve succeed. That is how life’s supposed to be.
You need to be very patient if you ever hope to make money online. Some people have gotten lucky and made money in the first few months, but this is more of an exception then the norm. Internet Marketing has a huge entry level learning curve that is constantly changing and those who can’t stay current are left behind. I’m lucky enough that I have real job that I can do online where I’m not at the mercy of Google, so I don’t suffer as much from unforeseen Google updates. Thanks for all the good points.
Mike recently posted..Identifying Fake Silver Coins
Great article and it mirrors some of my own experiences good and bad with making money online. I also use the money I make now to travel and use favorable exchange rates to live a better life in various countries. Really enjoyed reading this, best of luck to you in the future.
Matt Kinsella recently posted..How To Start A New Life
Thanks for sharing your story, Sam. I didnot know about financial comparison site before reading this post and it’s quite interesting for me to know about Logbook Loans because I also want to make money online. I really like your suggestions and tips.
Syeda Mehwish recently posted..Moosejaw Coupon Code and Review
Making money online is not an easy task, you have to put alot of effort in right direction.Your story is very inspirational and it encourages many newbies to try lots of things until they find something that works.
Pete Goumas recently posted..Ultimate Digestive Health Coupon & Review
Really very inspiring story.Effort and patience are the most important things in any job whether it is on-line or off-line.
Asma Khan recently posted..Hardware Keylogger
The best tips here is not to quit soon. there is no over not success,everything needs workhard, time
and lots of effort to achieve success.
Your story is very inspiring. You had the courage to take life into your own hands. Congrats. It feels great to be your own boss and to succeed.
Debbie recently posted..Reasons for Being Certified for CPR
Hi
While i was reading your experience i was feeling that you are telling my story . I also have quit my job and working at home and trying to make online money. Its my start and i am not as successful as you are. But i wish to be successful like you. Your advises and your experience is great help for me. Thanks.
very good article…
i left my last job to move to a very nice area, and have been living off my savings
very lucky though because i have been selected for a great job around when my savings almost depleted, so im haveing a great long holiday and some risks are good, but there should always be a plan B
very important to have your options
thanks
Financial and accounting industry is a grooming industry. I will never think to leave this industry. But it is also true that this is not for you if you are not interested in finance and accounting. That is the thing I liked the most in this post, never go for a business in which you are not interested.
It’s all in knowing how to go about it. One of the oft-neglected of launching a side business, with the gosals of making it a full tme business in the future, is a real business plan. More often, sidef businesses are run as a hobby, which hamstrings the growth potential.
It doesn;t matter if you’re a part time consultant, real estate agent, or website owner (possibly all three!), you need a solid plan to get from point A to point B, and many beginning business owners have no real business background or formal business education. This leads them to omit many important steps along the way.
Have a formal business plan and two well thought out exit strategies, one for your “real” job, and one for the business you’re starting. While it may not seem so now, the second wil become important in the future.
Thanks Sam For This Great inspiring story I myself never ever want to do a job I am thinking to do Freelancing or a business, I will do anything but not a job I think its just like being a servant.
Rajnish recently posted..Your Own Social Network
Great post! Thanks so much for sharing. I think many people give up TOO soon. People getting into this business, or any business for that matter, need to realize that success doesn’t happen overnight, it takes a lot of work, persistence, and dedication.
4000 quid/month in Thailand will lead to a pretty nice lifestyle, indeed, it sounds like you have created quite a niche for yourself! Thanks for the tips. I think that they will provide a bit of insurance so that other people will avoid some of the pitfalls that might prevent their own similar success stories. Well done!
Jerry
Sam,
Great work! very inspiring story.
I completely agree that finding something that you have an interest in will make working much more enjoyable.
Wow, thanks for the informative post and all the best with the independent lifestyle. The longer I build my niche web sites the more #2 resonates, it is hard to build successful sites with low quality material.
Tom recently posted..Managing High Risk Auto Insurance
After retirement the first thing that comes into your mind is to apply for an unemployed assistance. Applying for unemployed assistance is somehow helpful, for the government will provide you bucks for your daily needs. On the contrary, it is not a healthy practice for it makes that person dependent that he might loose interest in finding a work. Plus the fact that the money allotted to that unemployed citizen can be use in other matter that is much worth spending for.
It wasn’t an easy ride, and I’ve made lots of mistakes along the way, but it now earns me and my business partner a basic living each month, and since it really took off I spent most of 2011 in Thailand and Vietnam living by the beach. The site won’t make me rich – it now makes around $8,500 net profit per month between two of us – but because I get paid in UK pounds
Easy to say but hard to do.
Your story proves that sometimes success comes from failure, or trial and error. Be consistent and keep improving on what works!!
Suzanne recently posted..Advisors, 4 Surprising Things Prospects Want to Learn When They Visit your Website
Inspiration is what I certainly took from that post but I was also glad to hear you mention that making money online wasn’t an easy ride. Far too many people who spruik their online money making success stories make it sound like a fantastic, hidden pot of gold that need only look for in order to find.
I’ve been writing a blog – more for fun than anything – but I do dream of leaving my job in the future. Not even because I dislike what I do, but life, naturally, is shorter than we’d like and if I have kids soon as I hope to do I’d like to earn enough money working at home to watch them grow up and not miss anything.
I don’t want a gold-plated house and I think your advice above has encouraged me even further to a) stick with it but more importantly to b) set my goals in a realistic manner!
Very true, it’s not easy making money and you really have to work hard for it that is why patience definitely is a virtue. And if you want to make real money, you have to deserve it quality over quantity is a must. Thanks for the great tips you have here, it actually helps a lot! Maybe I can be like you one day, living by the beach mostly and earning a decent amount of cash.
Keith Harper recently posted..The best ACLS class in Nashville
It’s great to read a success story like this, and to hear about someone who’s really trying to make a difference. Writing articles and posting meaningful content is the only way to go. It’s disappointing to read so much content out there that is irrelevant or just posted for the sake of the SEO process. Thankfully, with time more meaningful content will appear and eventually those not posting meaningful content will get the change or disappear altogether.
Larysa recently posted..Texas Land and Ranches for Sale
Apparently, you should not choose a niche that you are not familiar with because you cannot really write articles about a topic you do not really know.
Mei Mayore recently posted..COMPARE LIFE INSURANCE QUOTES
I really agree with this. It’s just like grabbing opportunities all along your way, then start dropping out those that won’t work much with you. This post is really providing new ideas and opportunities to people. It is important to choose a niche that you’re interest will work with. Thanks!
I share your dream and it’s great to see someone who has made this a reality. My latest business venture is fairly new and reading your blog has given me a greater motivation to keep going and to build the business into a profitable enterprise. Maybe one day I will make it to the beach too.
These are great tips. I know exactly where you are coming from because just a few years ago I was in the same situation. I was in debt up to my eyeballs and living just paycheck to paycheck as many of us do. However, I was able to save close to $100,000 over the course of a few years by doing every day things differently. I read a small little book (it’s more like a list) called ‘Quick Tips For Saving Money and Building Wealth’ and it opened my eyes to how i was doing things wrong. I created a site to help others and pay it forward.
great idea as ever thanks for this awesome share keep going
impressive thanks for sharing this informative article and this is a cool idea