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Discussion in 'AdSense' started by Shoemoney, May 4, 2005.

  1. #1
    ________________________________________
    So im going to try to give back something to a place I have learned so much in this adsense forum over the last year.

    I have never on this site disclosed what I make and I never will. I can tell you the first day I started at 1$ just like the rest of you. It was only six months ago also.

    I have some good advice for people making good money off adsense. This is from my experience take it or leave it. All figures mentioned are made up.

    This applies to people with multiple sites doing a good bit of revenue off of adsense.

    Don’t let one adsense account make too much money. Setup separate corporate entities and get different bank accounts/ein for each. It’s much safer to have 10 corporate entities bringing in 10k each/month then 1 bringing in 100k.

    I have never had a 100k check from Google but I can’t imagine what kind of flags it would raise. I have had significantly less and I can tell you its fricking hard just to get it cashed with out a 3 week hold on it.

    Pretty much what I do is setup new sites with the parent company then once they are doing > 5k/month in adsense move them to there own incorporation. It will take a few weeks to get setup and get your tax numbers but with the volatility in this market that 5k could be 20k by the time your setup. That is really important because having separate entities keeps 1 website/bank from killing your whole empire. All someone has to do is complain about copyright or whatever or any of the other horror stories we have heard about getting shutoff from adsense and boom your whole business is out. Setup multiple corporate entities and you will have safteynets.

    Costs per entity are anywhere from 300-600$ to incorporate (this should be at least a daily income per entity) and standard checking account fees (or not).

    Also - When you make tons of money expect it but be humble. Don’t tell everyone you know how much you are making. Many will hate you for your success.

    Never settle for X amount of dollars. I have had people come up to me and say Hey would you sell this website for 1 MILLION DOLLARS and I say NO. People get so caught up in big numbers like 1 million dollars. Of course this has exceptions. Do a standard eval on your company. Take current profits from last month and multiply by 40. That should give you a good estimate of what a company is worth. If its worth it sell it. Hopeful you have setup a separate entity for this company and it will be an easy transition to the buyer (except for the adsense account which is non transferable)

    Set goals and keep them. When I first started with adsense my goal was to make 273.98 per day. I had it taped all over my house. It drove my wife and friends nuts. I had that number in my head and wouldn’t stop until I started making at least that. Once I was averaging that per day for 60 days I doubled it and so on and so fourth. Never settle. I know allot of webmasters who made there goal and just idled. They would call me from Vegas and tell me how much there site was making while they were playing in swoop tournaments. Then one day they get back into marketing there sites and they have fallen off serps. The point of this paragraph is basically set your goals and once you achieve them make new ones. NEVER LOOSE momentums I cant stress that enough.

    Everyone is targeting high paying ads and building a site around it. My business model has been to target high SEARCHED for phrases and then try to make the pay as much as possible with adsense. It’s a very interesting game trying to balance keyword density for traffic and keyword density for profit.

    Stay on course and ride out the volatility. Be patient. There will be massive spikes with adsense but unless you have drastically changed your web page don’t worry about it too much. This is an extremely volatile market we are making money in.

    Don’t try to sell a domain that just got a pr7 out of no where. I did this in the buy/sell/trade forum and got TOTALLY HAMMERED with red rep =(. I too am still learning.

    Well that’s all I can think of for now. It’s just my tips on things I have learned. I am a horrid writer so I hope some of it made sense.
     
    Shoemoney, May 4, 2005 IP
  2. SpeedyDomainRegistration

    SpeedyDomainRegistration Peon

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    #2
    Very interesting.
    Very good tips on creating multiple corporation to handle large sums of adsense payments.
     
  3. topdog

    topdog Peon

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    #3
    Thanks for the excellent advice Shoemoney.

    You just laid out the best advice / plan - and I'm gonna run with it.

    Peace and continued success Brother .........
     
    topdog, May 4, 2005 IP
  4. nevetS

    nevetS Evolving Dragon

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    #4
    LOL... When I started it was 3 cents a day. And that was on a good day!!! :D

    This is great advice.

    Do you have anything to offer in terms of increasing the $$ you are getting on keyphrases? Do you research for higher paying keywords and adjust your pages, or do you ban the low paying keywords, or is there another strategy I'm missing?
     
    nevetS, May 4, 2005 IP
  5. paymentapprovaltooslow

    paymentapprovaltooslow Banned

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    #5
    I am planning to make 15,000 this month and let me tell you it can be done

    You have to start from the bottom and build yourself up.

    Thats what I did. I only had a single page a year ago.

    Then I built 5 more pages that week withom some basic SEO.

    After a few weeks I was making about $5 day.

    Then I stepped up efforts and soon as making $20/day.
     
    paymentapprovaltooslow, May 4, 2005 IP
  6. Shoemoney

    Shoemoney $

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    #6
    First let me say I have never ever banned sites on my page using the compeititon filter from google. If I feel they are not pulling good ads then I change the keyword density to pull better ones. I *think* that google will ALWAYS try to display the highest paying ads for your site for your keyword density. This is purely my theory and its just based on common sense.


    I check overture inventory alot and see what being searched for.

    Let me give you an example of how my mind works. Ill just pick something randomly.

    this is purely an example and isnt violating any TOS that I know if. If im wrong someone please let me know.

    Yarn - stuff people use to make stuff with.

    Searches done in March 2005
    Count Search Term

    54002 yarn
    26077 lion brand yarn
    15236 red heart yarn
    10409 knitting yarn
    7269 bernat yarn
    6352 lion yarn
    5898 discount yarn

    So ok its searched for alot...

    on google it looks like there is about 4,000,000 results. just by typing yarn in google I can see there is ads coming and I can see that making a site about yarn would not pull non profit ads as there is enough inventory.


    Now lets compare that with what I see in about everyones signature. SEO

    Searches done in March 2005
    Count Search Term
    76859 seo
    14878 seo company
    11542 seo services
    7353 seo firm
    5603 seo service

    seo in google comes back with over 12,000,000 results... ALOT OF COMPETITION

    I think yarn would be a good site to make =). that is IF you were just targeting adsense $$ (which of course is against the tos - making sites purely for ads)

    Again this yarn thing just poped into my head. its just how my brain works.

    The main point is I see the competition is sooo much greater for seo then yarn yet yarn could be more profitable... but who knows... doesnt hurt to try.
     
    Shoemoney, May 4, 2005 IP
  7. weblaunch

    weblaunch Peon

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    #7
    Wow...you must be doing well! I must congratulate you on your success. I wish my earnings would reach $5K a month in the forseeable future so that I can follow your advice. Thanks for sharing!
     
    weblaunch, May 4, 2005 IP
  8. cgo85

    cgo85 Peon

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    #8
    yeah, but aren't you going to have to pay much more taxes on that money because of the seperate entities?
     
    cgo85, May 5, 2005 IP
  9. City2

    City2 Peon

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    #9
    Thanks for the good read.
     
    City2, May 5, 2005 IP
  10. Shoemoney

    Shoemoney $

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    #10
    That is a good question.

    The quick answer: no its going to be the same or cheaper then being self employed.

    The long answer:
    Since these are all subchapters of your parent S Class election incorporation they pass through at your standard tax rate. If they were C corporations then they would be subject to double taxation + other crap.

    Since I am the only employee S class works perfect. Also works perfect for us. Since your an employee of your own incorporation your subject to max tax of 42% (standard cieling income tax) and not the 50% self employment tax.

    Your attourney/accountant can guide you at whats best for you. Im good at my thing and not tax law =).
     
    Shoemoney, May 5, 2005 IP
  11. cgo85

    cgo85 Peon

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    #11
    but doesn't your company pay tax on any profit? Or are you basically saying that you are operating at a loss. I think that would work for a while but sooner or later I would think the IRS might audit you. Also, can't adsense tell that one IP is logging in for multiple accounts? Or have you found a way around this?

    I don't mean to be a downer, I just found it very interesting and something I might try out myself so I want as much insight as possible from someone who is already doing it.
     
    cgo85, May 5, 2005 IP
  12. Shoemoney

    Shoemoney $

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    #12
    The first part of your quesiton on taxes... well duh im paying taxes.. thats all I have to say about it.

    Per your adsense account question- I am guessing your saying the ip I check the accounts from? it doesnt matter. There is no law about not running different corporations from the same network. Hell the checks even come to the same physical address. The point your missing is they are seperate entities. Seperate bank accounts, seperate p&l statements. They each have a ein.

    Its basically like 4 people live in 1 house and each has there own adsense account with there own social security number. or something.
     
    Shoemoney, May 5, 2005 IP
  13. cgo85

    cgo85 Peon

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    #13
    Seems to make sense... I've thought about consulting with an accountant to figure something like this out but I just haven't had time yet. I always love to hear stories of people doing 10k - 20k+ monthly on adsense alone cause it gives me, and probably all of us, something to strive to achieve. Thanks for the input Shoemoney.
     
    cgo85, May 5, 2005 IP
  14. Nate

    Nate Peon

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    #14
    Wait... don't you pay taxes on your adsense income? I sure hope so...
     
    Nate, May 5, 2005 IP
  15. e10

    e10 Well-Known Member

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    #15
    Shoemoney,

    Thank you for your post. It´s is most helpful and encouraging. There´s a few points you raised that I am not clear on...



    I thought you were only allowed one adsense account? Are you opening new AS accounts for each corporation?


    But if you are setting them up first under the original AS account, then moving the site to a new AS account under the corporation name, won´t that eventually raise red flags at Goo, if each person is only allowed one AS acount?

    I understand and appreciate the advice not to put all your eggs in one basket, I just don´t see how you can get around the one AS account rule.

    What do you mean the AS account is non-transferable? I just bought a site which has a small PR, content and is running AS. My intention was to change the site some, add my own content and changeover the AS to my own account. Please don´t tell me that if I now own a domain that previously run on someone else AS account, that I can´t change it over to mine???

    No, you are not a horrid writer and your post is very clear and full of good advice. The bits I don´t understand are because of a lack of knowledge on my part, not because you haven´t made your points clearly.
     
    e10, May 5, 2005 IP
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  16. nevetS

    nevetS Evolving Dragon

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    #16
    No, he just means you can't transfer the existing account. You can change the code to reflect your account ID without a problem. If you are buying a business, and that business has an account under their EIN, then you should make sure to get the adsense login info so you can change the payment address.
     
    nevetS, May 5, 2005 IP
  17. e10

    e10 Well-Known Member

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    #17
    No, I didn´t buy a business. I just bought a domain with website. I thought that all I´d have to do would be to take out the previous AS code and then insert new code using my current AS account :confused:
     
    e10, May 5, 2005 IP
  18. nevetS

    nevetS Evolving Dragon

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    #18
    that's exactly what you need to do.
     
    nevetS, May 5, 2005 IP
  19. cgo85

    cgo85 Peon

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    #19
    Yeah i do... but if you have multiple businesses then it is more likely at least one of those companies will turn a profit and Corp taxes are higher i believe than Sole proprieter. The IRS has really locked down on people creating multiple businesses and operating them at a loss in order to get tax breaks this past year.

    Basically i was just wondering if he lists himself as the only employee on all of companies and makes his salary virtually the entire revenue of each.
     
    cgo85, May 5, 2005 IP
  20. Nate

    Nate Peon

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    #20
    Yeah he's not creating new businesses so he can claim a loss on them. He is creating multiple corps so he will get a new EIN number. You're allowed to create multiple accounts as long as you have different valid EINs.

    You said: "Corp taxes are higher i believe than Sole proprieter". I don't think that's true with S Corps...
     
    Nate, May 5, 2005 IP