Residual Income from Websites
When thinking of residual income, a main guiding principle when it comes to Websites is to start small. So, if it works grow. That plan is flawed and, in truth if clients were willing to spend £500,000 on a website. Something pretty exciting could be done.
However, that not being the case, the costs can add up… if you budget £100 a month on Adwords – that’s £1200 a year, ten times that if you spend £1000… and many agencies these days seem to be recommending £1500 or more as the minimum. It will all add up.
Background – Why I am talking about Residual Income?
Some background to this Post. We’ve been approached twice recently, once to create an ‘Au Pair’ matching service and one to create a Jewelry/Diamond website. Both brilliant in concept and both filling a very real gap in the marketplace. The problem is that unless the end product is highly polished, all singing and dancing then it is seriously hard to break into these markets.
Put another way, the days of building a simple eCommerce website where we list a few products under a few categories and create a checkout system with all those complications are over. These days it’s about information, personal and detailed. Au Pair websites work best at an extremely granular level, smoking, health, pet, kid requirements, video, text, Apps – every part has to be considered.
And all that costs an arm and leg. An old colleague, Daniele, is now working for a new Property website trying to take on Rightmove and Zoopla… what are these websites doing so wrong that others think they can do better.
What’s happening is called change. Simple as that. Blogs and simple websites take minutes to set up; visit www.wordpress.com, sign up, pick a theme and you can be writing about Landrovers in next to no time. eCommerce – sign up to Shopify and get selling.
That puts web designers into a quandary – making small, manageable websites often for small clients just wanting a presence on the Internet. A page or two and some photos.
Solution – Residual Income
One answer to this problem is called Residual income… small income streams from a variety of sources. Instead of relying on creating a £1000 website for someone. Making £5 a month for the next few years. And this process is starting to work. Hosting, Shopify, Domain Names, Tea, Amazon all contribute to the NCompass coffers.
And the same has to be said of the potential of clients. Working on a WIX website recently and it’s easy to hook into eBay. And it’s a no brainer – why wouldn’t you multiple your potential buyers by a fact of thousands. Shopify connects to Google Shopping, Amazon and a variety of services, some free, some for a small monthly sum. It makes sense, if you can deliver the product then why not sell it to everyone you can Facebook Shops, Instagram Shops, anywhere.
So – establishing that Residual Income is fast becoming a real income in today’s economy and moving beyond the Gig Economy and as our own clients move increasingly towards the cheaper end low-cost websites. The opportunities for selling in wider markets are increasing. We’re mad not to take advantage of it.
Conclusion
Returning to the opening sentences of this Post and the key appears to remain, Start Small and grow. If you give up your day job and invest your life savings into a website that takes on potentially some of the biggest and longest-serving names within your target market. You could be in big trouble.
Instead, make a start, keep it small, make it relevant and show your target market you care. Be happy with a smaller income, at least, to begin with. If it takes off; a) the business will change direction to better meet your customer needs and b) it will occupy more of your time and at that point, you can consider giving up the day job.
No need to take months or years to grow. You can work fast, but the key is in remaining flexibility. And if within that growth plan you spend a lot less money – it will be easier.