How Much Money I Made From Side Projects In 2008

Posted by Matt on Sun, Jan 04 2009

Over the past few years I've been cranking out random side projects whenever I get a decent idea and enough Red Bull in my system. At the moment I have 10 or so sites up and running. Two of the sites make a little money - don't worry I'll get to exact numbers in a bit.

We look for places where the math is right. Meaning what? Meaning that pop[ulation]. is about to explode---we can predict that just by looking at age histogram---and per capita income is about to take off the way it did in Nippon, Taiwan, Singapore. Multiply those two things together and you get the kind of exponential growth that should get us all into fuck-you money before we turn forty. - Neal Stephenson, "Cryptonomicon"

The Losers

This is the part where I list all the wasted hours and failed projects. If I can still see through the tears, I'll get to the winners later on.

StadiumTraveler - I let this one die and moved it to a subdomain of my personal site. I keep it around to fill out my portfolio and to remind myself to never do a user generated content site again.

FantasyLife.net - I still love this idea and think it would be a huge winner as a Facebook App. I spent like 5 hours a night for 3 months working on it. Did you know you can fit 7 Zoloft pills in a shot glass? Excuse me while I down that and follow it up with three shots of Jameson.

camXip.com - A site aggregating IP cameras from around the world. Kind of like EarthCam, but with more Web 2.0 and less shitty design. The name is short for cam[era] X[across] ip, and is pronounced "camzip", like how the X in "Xerox" sounds like a "Z." I, of course, thought this was genius. I thought this less and less every time I'd have to explain it.

InStalker.com - The most successful of the losers. I think this site actually made like $20. I can use that money to get a sturdy rope and a noose tying book at Home Depot.

There you go. 4 sites, something like 200 hours of time spent, all for $20. I console myself by thinking how much my development skills improved. That makes me feel exactly 1% better. This box of wine, on the other hand, will make me feel 47% better.

Too Early To Tell

Now we get to the mildly uplifting part of the post. The part that makes me want to put my extensive emo MP3 collection on shuffle and spend the day in bed, rather then seeing how far I can launch myself by driving my car into a low wall.

music.rsstalker.com - Not much to say here, other than if you like music you should check it out. And if you don't like music...what's wrong with you? Go find another blog, weirdo.

later.rsstalker.com - I'm pretty sure I'm the only one who uses this. I could verify that, but sometimes you're just better off not knowing. Like in a horror movie anytime someone investigates a weird sound or movement. I'm 99.999999% sure I could just walk away from that situation and be perfectly happy never knowing the source. I call this my "get the fuck out" principle.

The Winners

First off, both of these sites pretty much run themselves, which is as awesome as it sounds. They are both version 2, where the original version was plain PHP and the new versions are CakePHP apps. They both make almost the exact same amount of money, but are completely different in terms of function and monetization.

PlanbookEdu.com - This is a site for school teachers, designed to make their lesson planning easier. It originally launched in January of 2003 and the new version was re-launched this past July. There are currently over 3000 registered users, with 171 paying $20/year for premium features. That works out to $3420 for 2008. In 2007 there were 84 paying users ($1680). The only marketing I did this past year was sending an email to the registered users announcing the new version.

RSStalker.com - This site gets approximately 50 hits a day from actual users...and over 50k hits a day from various RSS aggregators. Once a user has setup their feed there is no reason to go back to the site. If they buy a product using a link in the feed I get a commission from Amazon. In 2007 RSStalker sold 1049 items, generating $68,368.62 in revenue for Amazon and $3,358.20 in commission for me. The 2008 numbers are very similar: 1070 items, $76,875.06 revenue, $3,675.17 commission. Not much growth, but considering the economy that's not too bad. Plus in 2007, two orders of 30 iPods each accounted for almost $700 in commission.

In the last year I hit two major issues with this site that needed code fixes. The first was the result of a change in CakePHP RC2 that caused an issue with the legacy DB schema I was still using. I filed a ticket, but it was clear the fix wasn't going to be applied, at least not anytime soon. That left me with two choices. Make the change in my local CakePHP core (approximately 30 seconds) or fix the DB schema, adjust all the code and migrate the old data. Obviously I took the more difficult path. Making the 30 second core change, then repeatedly pounding my head into a wall for two days would have been less painful. I have no idea why I do these things.

The other issue I had was with my hosting. All the sites listed above are run off one shared hosting account (DreamHost). They would occasionally complain about my CPU usage. Even though I was using Cake's view caching, the number of requests was taxing their Pentium 2, 256MB ram web servers. I looked into switching providers and will probably have to do that this year, but in the meantime I solved the issue with my HTML Cache Helper.

The Future

It makes sense to use the earnings, less what I spend on those spinny rims for my SUV, and re-invest it trying to grow the sites. With PlanbookEdu I was holding off until the new version was release and stable. Most of the signups occur August to October, so I'll wait until then and target blogs/sites educators would visit.

RSStalker is so niche it's hard to find worthwhile advertising opportunities. What sites do people who shop at Amazon, know about RSS, and want to save money hang out at? The most money comes from LCD, GPS and camera sales, so maybe use that some how? We actually sell a lot of $1K+ camera lenses, which always makes me think someone was Googling "good camera lenses for stalking people" and hit my site because of the name. Does anyone know any good stalking forums I could advertise on?

35 Comments

Jonah said on Jan 04, 2009
Great post! Very interesting, and bonus for giving us numbers. I only have one personal live site that is meant to give revenue, I built it shortly after discovering PHP (loong time ago). Does not even use a framework. $0.52/day in adsense.
Justin Noel said on Jan 05, 2009
I'm sort of in the same boat. I've started 3 different web sites. The first 2 were BIG mistakes. They were going to be the next big thing. There was no way I couldn't make money, etc. I even quit my day job and blew through a lot of savings while working on them. Oops. Thank goodness for a supportive and wonderful wife that hasn't to this day said, "I told you so."

My current project is going much differently. I'm actually making money! LOL. Notice I said "money" as in revenue and not profit? I'm not ready to admit numbers - too embarrassing. However, I hope I will see the kind of incomes you have.

I know you've spent tons of hours on this stuff and received relatively little in return. However, I'm sure you feel it's worth it. You're more marketable in the job market and can always look back and say you did something on your own. Congratulations.
Lachy G said on Jan 05, 2009
Hey man,

Nice post. I don't want you to take this as bashing or anything, but why do people pay for the Education site? Just seems a bit like google calendar!

Cheers
Matt said on Jan 05, 2009
@Lachy G
Great question. In fact when Google Calendar launched I figured PlanbookEdu was done. I think, for teachers, there is value in having a calendar site designed specifically for their needs. They could probably make Google Calendar work, but for $20/year it's just not worth it.
David Rivers said on Jan 05, 2009
Great post! Also, thanks for the numbers. I just started using later.rsstalker.com--cool shit! Now TWO peopler are using it!! Haha. Might use your rsstalker.com if I can think of some products I actually want (matter of time...).

It's interesting to see someone else deploy multiple sites with DreamHost shared hosting. I'm doing the same with http://www.davidrivers.name/ and http://www.jazzrecord.org/, and a slew of side projects I hope to deploy soon. I've ended up installing my OWN Git, my OWN versions of Rails and RubyGems, and the list goes on. I'm finding shared hosting to be rather inadequate. While I'm getting the hang of compiling and installing packages from source code, it's really a bitch to not be able to use apt-get as a non-root user, for hunting down dependencies. I also would like to deploy with a more optimized server configuration than DH offers. I've decided that soon I will migrate my sites to RootBSD (http://rootbsd.net). They have VPS plans with pretty decent resources starting at $20/mo (only a little over twice what I pay already for shared with DH--which has been oh-so-slow lately!), and Google searches so far have revealed a pretty satisfied customer base. I don't know how versed you are in UNIX admin. (something I'm still learning myself!), but it's worth a look.
Ivan said on Jan 05, 2009
great post, thanks for sharing your experience and sharing the numbers.
Ryan said on Jan 07, 2009
Nice job on RSSTalker. Interesting way to use affiliate links with a useful purpose.
JayJayECL said on Jan 07, 2009
great post !!!
How does it happen that I'm so lazy I can't work on a personal task at home ??!

Maybe because of those shitty videogames I like.

Congrats from France !
Matt said on Jan 07, 2009
@JayJayECL
Xbox is my #1 distraction. I hear it calling to me now...
Andrew Pennebaker said on Jan 07, 2009
Funny post. I've been releasing open source software and a handful of tiny web apps for free, until I find something to work on that can be monetized / is worth selling.

I don't have the money to invest in faster CPUs and more memory, so I won't be able to setup a site that could handle thousands of users. How does a web developer begin generating revenue in this situation?

Currently, I'm using the lowest virtual server plan available. My hosting provider is Gandi.net. They're relatively cheap and very responsive, so it's easy to forgive their many outages (beta stage and all that).
Matt said on Jan 07, 2009
@Andrew Pennebaker
Everyone of my websites (including this blog) are hosted on DreamHost shared hosting. There pretty good for under $10 a month. Minimal downtime. I am probably getting to the point where I need to move off of shared hosting, but they've served me well for over 6 years now.
Alain Raynaud said on Jan 07, 2009
Great post. It shows how diverse web applications are. And how difficult (but exciting) it is to make money from them.

From your post, it looks like you did all 7 apps by yourself. Any thought on whether you'd been better off with partners/co-founders to maybe grow and improve the sites?

Alain - fairsoftware.net
Matt said on Jan 07, 2009
@Alain Raynaud
I did most of the coding and design myself, not including any open source stuff.

I have a friend who does some marketing, mostly for RSStalker. We split the money on that one.

Finding the right partner would be hard. The person who would best compliment my skills is someone who really knows how to promote with a minimal investment (around $1k).

I found this thread revealing, mostly for how there was no real consensus on a decent approach.
Spencer Alexander said on Jan 10, 2009
I found that thread quite interesting; it was nice to experience a brainstorming on advertising small side projects.

I'm just getting into the web game, and as expected, side projects have netted me $0 for life, but hopefully that'll change soon! Thanks for the post, and the numbers to go along with it; now I have an idea of what is probable for small side projects.
Allan Cass said on Apr 13, 2009
Most of the side projects end that way. I have a lot of them too :)
Mike said on Jan 07, 2009
"What sites do people who shop at Amazon, know about RSS, and want to save money hang out at?"

Off the top of my head, that would be http://consumerist.com/ or http://slickdeals.net/ or maybe http://lifehacker.com/
Matt said on Jan 07, 2009
@Mike
I'm not familiar with consumerist, but I'll check it out.

I don't think I can afford lifehacker, but I submitted the site as a tip way back. Nothing every came of it.

I use slickdeals all the time, but I'm not sure they'd allow rsstalker to be advertised there, since it would cut into their affiliate earnings.

Thanks for the suggestions.

I really wanted to advertise @ thesimpledollar.com, since their audience knows/uses RSS (45K subscribers) and is interested in saving money, but they never responded to my emails. Oh well.
rickd said on Jan 07, 2009
Really great post! Especially thanks for sharing your actual info. I'm always interested to see small and minimal-time activities that make a bit of cash. I think planbook probably has the potential to make much more as well.

As for hosting- I use moved off of shared hosting to SliceHost "virtual private server" a while back and LOVE it (full disclosure: I'm just a customer who loves them a LOT). You have to be a bit more inclined to setup and run the server yourself, but for about twice the cost (20$) a month, you get dedicated ram and much more cpu/bandwidth than dreamhost or other shared hosts. Plus, slicehost has excellent forums and setup walkthroughs/etc.

There are a couple other companies like slicehost out there that have similar deals around that price. If you outgrow dreamhost I'd say go for it- the server admin stuff maybe takes a half hour every few months at most.
Matt said on Jan 07, 2009
@rickd
SliceHost is probably the one I'd go with. I wasn't really sure which level, although I'd probably just start w/ the lowest since it seems easy enough to upgrade. How would you compare the $20 SliceHost w/ shared hosting in terms of performance?
rickd said on Jan 08, 2009
If you're switching from shared hosting- something like slicehost is night and day. You aren't sharing anymore- you have dedicated resources! Definitely worth 10 bucks more a month.

256 is fine if you're frugal with what you run- but if you want to run tons of heavyweight processes it is easy to bump against your ram limit (I'm looking at you mysql!). You can always go cutting edge in terms of distro and server to save ram (say like CentOs and ngnix), but for a small site or two 256 has been fine for me (even running ubuntu+apache+mysql).

good luck!
Mike said on Jan 07, 2009
I laughed at your theory about the search terms that brought your lens customers to RSStalker. Maybe you should install some analytics and know for sure?

I wonder if you could run an AdWords campaign targeting Stalking Equipment keywords.
Dan Mayer said on Jan 07, 2009
Great post man. I ran a hobby site for a long time and kept working on it and it eventually was making a few thousand every year which was nice. It covered all my server costs for a bunch of other interesting side project sites that I ran. I have been pretty happy with all the stuff I currently run on dreamhost, but obviously if you run a bunch of stuff with more users you are consuming a lot more than I.
gene said on Jan 07, 2009
I second the recommendation for slicehost -- never had a problem with them, and I've learned a ton having to admin my own server. Go for the 512. 256 is easy to max out.
tony said on Jan 08, 2009
On Marketing and squeezing RSStalker:

Marketing:
1) Adwords would be the best bet but might be expensive, but with some nice campaigns you can make every click count.

2) There are lots of forums where people hang out looking for discount coupons etc. You may try "Hiring someone from forums.digitalpoint.com" to spam those forums.

3) Do you have a tell your friends feature? Ask your users to spread the word.
Send them emails asking to spread the word.

4) You can mail every blogger who writes about tips, web 2.0 et all...
Some would surely love to write about the service.. And everybody now shops at Amazon, and most blog readers know RSS..

Target all the web 2.0 type blogs


Sqeezing the users:
You have a lot of emails there who actually shops and you know what they shop.
You can hire someone to write a newsletter to your users, and if you can rotate offers based on their needs (Apparel, books, camera), that would be awesome.
Matt said on Jan 08, 2009
@tony

Thanks for the ideas.
1) My fear with adwords is that a conversion isn't an actual sale, but rather, someone signing up for a feed and maybe buying stuff somewhere down the line. I feel like I could end up throwing a lot of money away and not really getting much in return.

2) Spamming is not my style. If it makes sense to post a link to my app I'll do it, but if I hired someone they would probably just end up making the site look bad.

3) Good idea

4) Done this a lot when the site was first launched. Probably makes sense to do another round.

There is a promise that the user's email will just be used to look up there wishlist, so I wouldn't go against that and start sending out marketing emails.

Thanks for the comment!
Ryan said on Apr 16, 2009
4) Sending mails has not worked very well for me, and people hate mail spam. Mails were related to products that user already bought - updates etc.
Björn said on Jan 08, 2009
Stating the obvious: why not let RSSTalker talk to Twitter, too?

Love the domain name (pseudocoder) btw.!!!
Matt said on Jan 08, 2009
@Björn

Great idea. I did that with InStalker.com. Makes sense to do it with RSStalker as well.
Chris said on Jan 08, 2009
here's to a $20 box of wine!
good times.

but great work all around, I admire your creativity and persistence.
Will Stevenson said on Jan 08, 2009
Matt,

What a refreshingly informative and sincere post.
I got here via oursignal.com
I have subscribed to your RSS feed and hope you continue to share nuggets like this.

I think as a community we don't do enough of this type of communication and it has inspired me to think about how to do this with my work.

Do you have a twitter to follow?

I'm working here in Beijing China on a project and hope that when you get a moment perhaps we can discuss some things off-line.
Doug said on Jan 13, 2009
I think the Coding Horror blog had a good article recently about popularity on the web and what the reality of the situation is.

Overnight Success: It Takes Years [codinghorror.com]
Allan Cass said on Apr 13, 2009
10x Doug for sharing that. Really nice article!
Kristian said on Jan 26, 2009
Thank you very much for this post. I find it interesting when people share real numbers.

I am impressed by your ability to turn your ideas to reality. If you keep it up I am sure that you will stumble upon a real moneymaker idea some day.
Allan Cass said on Apr 13, 2009
Nice article man. RssTalker seems a nice tool, but it is really surprising that the teachers calendar web site does so well without marketing. I am really surprised.
About hosting, I have not used dreamhost, but I have used 1and1 for years and I am satisfied with them though I do not load the servers too much (I think so.). 1and1 is a bit expensive, but I prefer to pay a bit more and stay away from troubles. Uptime is near 99.99% I guess.
Les said on Apr 17, 2009
> Does anyone know any good stalking forums I could advertise on?

:lol:

If you ever feel like making more money then refactor your school teachers application by making it more accessible and restructure your pricing; I'm sure you should be asking $49/year easy.

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