Running Multiple Arcades ... does it yield big bucks?

Discussion in 'General Marketing' started by scottatmu, Mar 27, 2006.

  1. #1
    After having this thread active on one of my support forums, I thought this community might like to hear about my progress.

    Can running multiple arcades earn you more money?

    In theory, YES!

    (please note, this is me rambling, but there is a point)

    About two months ago I finally opened up an arcade using phpAS (you'd think, being the creator/owner of phpAS I'd have more arcades, but nope ... just one!) ... MainEventGames.com.

    In the beginning traffic was about 2 to 3 uniques per day which translated into about 3 to 5 cents per day Adsense revenue ... but then after doing lots of link exchanges and promoting with different websites (note: don't limit your promoting to link exchanges with arcade websites!) and I've brought the site up to over 500 uniques per day (actually averaging over 700 per day). And this increase also increased my Adsense earnings to over $3.00 per day!

    So there is the first part of my rambling ... I now have an arcade website generating $3.00 per day on average ($3.00 x 365 days = $1,095.00 per year avg earnings) and spending about and hour or two a week adding new games and taking care of little updates.

    Initial Investment: $8.45 for the domain name
    Advertising: $5.00 in Adwords
    Hosting: Unknown because I can host unlimited domains on my hosting plan. But for the sake of this, lets say I started fresh and purchased a plan from DreamHost.com for $119/year that gives 40GB space and 1TB bandwidth.
    Script License: $30.00
    Total Investment: $162.45 for the first year

    If the $3.00/day average holds true, the first year I could possibly profit $932.55 from that one arcade.

    So what if I opened up another arcade and got the same results?

    Initial Investment: $8.45 for the domain name
    Advertising: $5.00 in Adwords (just to keep it consistent)
    Hosting: None since you can host unlimited domains..
    Script License: $20.00 since you are already a phpAS owner.
    Total Investment for 2nd arcade: $33.45 for the first year

    And for the sake of this post, let's say this second arcade also makes $3.00/day via Adsense, meaning, after expenses, your second arcade could profit $1,061.55.

    Combined profit between both arcades for the first year = $1,994.10.
    Combined profit between both arcades for the second year = $2,054.10 (since you already have the phpAS license and no need for the Adwords campaign)

    Now here's the question people have been asking me over and over again ... If I setup lets say 100 arcades, could I make over $100k per year? And my answer is always ... It is possible!

    $1,061.55 x 99 arcades + $932.55 = $106,026.00 per year.

    But then you have to factor in hosting costs for going over the 1TB bandwidth ... MainEventGames.com uses about 1GB bandwidth per day, so after 30 arcades, you'd have to upgrade your bandwidth/hosting.

    Has anyone put this theory to test? Not that I know of ... I do know that many of you are running multiple arcades and would love to hear your results ... Hopefully that wasn't too much of a ramble, but I wanted to let people in on my thinking since, as I said before, I've been asked multiple times about the 100 arcades = $100k question.
     
    scottatmu, Mar 27, 2006 IP
  2. korzon

    korzon Peon

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    #2
    The real question is why spend your time creating a new arcade site instead of promoting your existing one?

    If you spend the same amount of time and money it takes to create a new arcade site at promoting your existing one, wouldn't you increase your overall traffic and revenue more? You'll be able to get SERP traffic that you otherwise cannot achieve since you'll eventually get monster PR and a lot of backlinks.
     
    korzon, Mar 27, 2006 IP
  3. mystikmedia

    mystikmedia Jedi Master

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    #3
    That's my thought too... I try to concentrate more on fewer sites than to have tons of sites with less focus.
     
    mystikmedia, Mar 27, 2006 IP
  4. Fahd

    Fahd Well-Known Member

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    #4
    Unless you have some self-promotional motive behind getting people to start more arcades! ;)
     
    Fahd, Mar 27, 2006 IP