Building a Business at Wealthy Affiliate
To approach Wealthy Affiliate as an Entrepreneur rather than a student, it is possible to leverage the system quite easily in your favour. Commissions are fat and the reality is that if you can promote as part of an already established business, it will be very easy to add another income stream as a WA affiliate.
What is Return on Investment?
Return on investment (ROI) is a financial ratio used to calculate the benefit an investor will receive in relation to their investment cost. It is most commonly measured as net income divided by the original capital cost of the investment. The higher the ratio, the greater the benefit earned. This page will break down the ROI formula, and provide an ROI calculation for Wealthy Affiliate, based on several worked examples.
The investment needed for a new, full year membership in Wealthy Affiliate, presuming the member takes advantage of the first month discount is $19 + (11 x $49) = $558
That can be cheapened a little bit by taking an annual membership after the first month to $499.
That is the value of a customer to Wealthy Affiliate and the amount you’ll need to pay for a membership to get the highest rate of commissions.
Based on referring only 1 person to Wealthy Affiliate, who then take out a full membership, the annual return would be
Paying as a monthly member $8 + (11 x $23.50) = $266.50
Paying annually, a member is worth $235
For referring only one member, your ROI is going to be
Monthly membership 266.50 / 558 = 47.8%
And for an annual membership 235 /499 = 47.1%
As you can see, simply maths will reveal that referring only two people will virtually completely cover your investment. Normally, an investor would be looking to earn back an investment in 2 years to make it worthwhile. Introducing 5 Premium members in the first year would return 266.50 x 5 = $1,332.50 per year. That’s a 238% return on your investment!
Here’s a quick summary table of ROI for a business promoting Wealthy Affiliate.
|Investment||No of Premium Signups||Return||ROI|
Other Benefits of Membership
Each website hosted comes with a Free SSL certificate. These are normally $60 per year, per website, so a positive value of $600 if you host 10 websites.
Charging for Hosting
It’s permitted to charge clients for hosting in your WA webspace, so another way of generating a good ROI income is to build websites for people and host them at Wealthy Affiliate.
You can register the domain for the client, host and charge either a monthly fee or an annual one for managing the site for them.
10 websites hosted and managed at $50 per month would yield $6,000 per year, which would further increase your ROI and make your Wealthy Affiliate investment into a healthy business.
The WA site management software makes it very simple to administer.
You get space for 10 websites hosted at Wealthy Affiliate as part of the membership. If you bought 10 domains for them, they’d cost you $139.90 if you used them yourself. Absorbing that cost would then be easy. Also, each of these sites could then be generating earnings for you.
If you hosted the sites for clients, those domain registrations would be part of their costs and you’d factor them in to their hosting package.
With a bit of forethought, it’s easy to build a business using the Wealthy Affiliate structure. Once you approach the system as an Entrepreneur rather than a student, you can see how easy it is to leverage and take advantage of.
You can operate as a Website Hosting Manager, whilst also making the traditional WA Student Training benefits available to those who want to go down that route. As can be seen, you can cover your costs entirely by just introducing two people. After this, that income feeds the hosting services.
If you were lucky enough to be a member of Wealthy Affiliate before the changes of spring 2020, you’ll have space to host 25 websites, so the $6,000 mentioned above for hosting services could easily be $15,000 per annum for you.
When you are super successful at Wealthy Affiliate, you get invited to Vegas!
Sign up for Wealthy Affiliate Now.
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