Sometimes You Have to Spend Money to Make Money

Have you ever heard the saying, “It takes money to make money” or “the rich keep getting richer”? While I wholeheartedly believe that money can be made from practically nothing (believe me, I started my blog with only $40, and today I earn more than $1,000 each month), these statements do hold some truth.

My Blogging Experience

I started my blog in August of 2010 (man that sounds like a long time ago!!). In the early months, there was absolutely no income, and I had all the time in the world to write my posts. As my website started getting some notoriety, the advertising dollars started to come in as well. Soon, instead of making a few pennies a month, I was earning about $100. Then, after a few more months I was consistently making $500 a month. And then, after just a couple more months, I was consistently earning over $1,000 a month (and sometimes I would ramp up beyond $3,000)!

Naturally, my thought process went toward expansion. After all, if one blog can consistently earn $1,000 a month, what if I ran 10 blogs? I’d be earning $10,000 per month, right? Well, yes, in theory. There’s just one problem with that: time. We all have a finite amount of time that we can spend blogging, and for most us, our spare time can’t handle 10 different blogs.

So What Can We Do?

Well, I never created an empire of 10 blogs. Currently, I own and operate 4 and it is incredibly time consuming. Now, I suddenly thought of an amazing app idea as well as another online business idea, but I have absolutely no time!

I realized that in order to create more time for myself, I’ll need to hire some staff writers for my blogs. Initially, I figured that this would start to put me in the hole financially, but in actuality, this move is going to have the opposite effect.

My main blog brings in an average of $1,000 per month. If I hire 4 staff writers (at $20 per article) to provide a total of 8 articles per month (2 articles from each), that’s $160 out of my pocket each month. I just freed up 8 hours per month for side projects and I’m still making $840 a month with my main blog! Now I can focus on my app AND my online business idea.

Based on the nature of these ideas, I’m estimating that they could easily bring in another $20,000 over the course of a year. It’s well worth the $1,920 that I’ll be paying my staff writers during the same time-frame don’t you think?

Don’t Be Afraid to Spend a Little Money to Make More Money

I could be content with $1,000 a month for the next 10 years, but more than likely, my blog income with dry up. It’s just inevitable. It’s best if I use my time to continually innovate and try new income sources. Eventually, I’m going to hit that big pay day and then I can focus on my online income full time!

If you have an idea that could yield you some extra cash, don’t be afraid to shell out a little money for you projects now in order to spend some more time on your new venture. If you truly believe in it, I bet it will turn into a huge success!

Do you plan on changing your strategy in the near future? How do you think it will impact your income?

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11 Responses to Sometimes You Have to Spend Money to Make Money

  1. My blogging income is nowhere near $1,000 a month for one blog! I really need to work on it. I do make money from other blogging related things- but if I could get my adsense dollars up and things like that I’d be set. I have no idea what to implement next- I run three sites and am pretty strapped for time, so doing all the SEO, etc is not an option (or even fun for me).

    When I first started blogging I did everything myself in order to be frugal- as a grad student with very little income, I was living paycheck to paycheck and working my tush off. This year, I finally invested in hiring designers for the sites and have seen it pay off very quickly- not only is my engagement up, ad revenue is up and I get better responses from companies when I write them to collaborate…it has paid off!

    I used to be so scared to spend money on the blog- but investing just a bit in quality designers, tailored advertising, etc. has really not only made my life easier, but I now work smarter- not harder. The work I’m able to do yields better results than me slaving away in obscurity like I used to!

    • Derek says:

      I’m glad that you found it worthwhile to invest in your site! Frugality is not a bad thing, but sometimes it can limit you from truly becoming great!

  2. I hired staff writers for the main reason of wanting to expand my content by having 5 posts a week, but I didn’t want to devote the time to it.

    However, as a result of more articles, I’m getting more traffic and more advertising revenue, so it has easily paid for itself.

    • Derek says:

      That’s awesome Robert. I’m ready to take on some other projects, so I think it’s time for me to pull the trigger on this one. I know the results will pay for themselves.

  3. Anthony says:

    Great post, I’m thinking about hiring some writers to put out 2 articles per week just to build a bit of notoriety. We’ll see what happens.

    • Derek says:

      I think that’s a great idea! As long as you’re making the money to cover the expense, I don’t think you can lose.

  4. Noel Jigeum says:

    The title explains everything. And its really true.You should have your income before gaining profit.

  5. It’s easy to understand this in theory, but if other bloggers are anything like me, it is tough to release control to other people. But, just like in business, delegation brings freedom and wealth.

    • Derek says:

      You’ve got it Josh. Sometimes you just have to trust others in order to grow your business. The owner can only spin so many plates before everything comes crashing down…

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