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How many of you think starting a business online is too hard or unrealistic, or maybe you think the numbers aren’t worth it.

A lot of people have this misconception of the economics behind an online business, and like every misconception, it’s because of a lack of knowledge.

There’s a lot of stories of people failing, or more commonly, people giving up and this has a ripple effect on everyone else. From the person having seconds thoughts of even starting to the person somewhere along the journey thinking of giving up.

I’m here to dispel all that negative loser talk, and shed some honest light on the real situation of making money online.

Is it all happy days and sunshine? No, not at all. It can be frustrating, tedious with many long hours. But it’s not a waste of time, effort or money IF you’re committed and know what you’re doing.

I’m not going to talk about the business knowledge of whatever business model you want to take on, nor am I going to talk about the entrepreneurial spirit needed to succeed.

I’m just going be talking about the facts and figures that are pretty much relevant for every form of online business.

First off, how much does an online business need to make for it to be worth it for mostpeople?

If it’s passive, not a lot, I’m sure most people would be happy and willing to put upfront effort if they can get $10,000 USD per month. But if it’s active income then all those long nights and endless worrying needs a bigger monetary reward.

Let’s say $20,000 USD per month, double the passive income amount.

So what does it take to make $20,000 USD per month?

Not a lot. Let me give you a few examples using industry averages. (this article will not use an optimistic approach, just realistic averages I found around the web as well as my own personal experience)

How difficult it is for you to make $20,000 per month comes down to how much the product or service you’re selling. A couple cents per view on a Youtube channel is going to seem impossible unless you have a million subscribers.

But if you’re selling a product for $1000, then you suddenly only need 20 customers per month. And before you start thinking it’s unrealistic to sell such an expensive product, then I’m going to tell you right now, that it’s the secret to gauranteedonline business success.

Of course, not everyone can sell expensive products, it depends on what niche you’re in and what business model you plan to use. But here are a few examples.

Vanessa Lau – Youtuber/ Instagram coach

Vanessa Lau is a Instagram coach that uses Youtube as her main source of marketing. She had one big hit video and since then created an empire of her coaching programs and online courses.

Her 3 months coaching program goes for $5000 USD, and you know what, she has clients. Many clients. How do I know? Because her clients all give great reviews.

Her 6 week course goes for a few hundred and has a waiting list. The launch of her course saw revenues up to $60,000+ within one week.

Her Youtube channel has (the numbers are true at the time of writing) 81,000 subscribers. Not a lot compared to the heavy weights on Youtube, but if you’re making $60,000+ in one week from 81,000 subscribers. Well, that’s very impressive.

Johnny FD – Drop shipper/ Entrepreneur

Johnny FD is one of the first guys to make drop shipping known to the masses. He dabbles in a whole array of passive income streams but is most famous for his success as a drop shipper.

His usual monthly income averages around $5 – 10k per month but almost every year he gets a windfall of cash from selling a drop shipping store he created from scratch. Giving him around $50 – 80k each time.

I’ve been following Johnny FD for a while and gained a lot of insight from how he builds up his stores. The quick answer is, he only sells highly niche products with a pretty price tag attached to them.

His stored make a few thousand each month from single digit sales numbers. Which lets me know his products are at least $700+ USD. And he does this by using only paid advertising.

Meaning his online stores don’t get a lot of traffic, they just get highly targeted traffic.

Chris – Affiliate marketer/ SEO

Chris owns the site, Rank XL, well actually not anymore, he sold the site now but Chris specializes in SEO and ranking niche sites for affiliate marketing purposes. His site RankXL is where he teaches and blogs about it.

I’ve learnt a lot from him, such as 100,000 page views per month is enough to make $100,000 USD if you sell the right product and know how to direct traffic.

I wrote a post before saying 100,000 page views per month is guaranteed to earn you a full time income ($5k), no matter how many mistakes you make or how inefficient your site is.

Because a $50 – $100 affiliate commision with a 5% conversion rate at 100,000 page views, equals $250 – 500K!!!

But I know what you’re going to say, reaching 100,000 page views is hard, well how about a mere 10,000 page views instead? That’s still $25 – 50k!

Even if I drop the conversion rate to a modest 2.5%, I still get $12.5 – 25k!

So how do you make $20,000 per month online without giving up before you succeed?

Sell or promote a product that gives you a $50+ profit for each transaction and you’ll make $20k easily!

So you might be wondering what my numbers are after giving you all the above details of other people’s success. (I don’t do monthly income reports, because I think it’s a bit awkward to let all your friends and family know such details)

Well, I have many streams but two that stand out are the Siteground affiliate that gives me $100 per conversion and my Kindle course I sell for $70.

As I write this, this site gets just under 30,000 page views per month and for the conversion rate, around 1%. I’ll let you do the math…

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