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2016 In Review: Amazon Associate Sites and Amazon FBA

~ 9 Minute Read

Being that we are now moving our way through the year 2017, I thought this would be a good opportunity to take a look back at what I’ve accomplished as a micropreneur in 2016.  2016 was a great year for me (and apparently no one else) in business and life in general.  Often I find myself too worried about the future to appreciate what I’ve accomplished in the past.  So, today I’m taking the time to review these breakthroughs in an effort to inspire and to be grateful for the opportunities that life has given.

Business

Going Full-Time

As you might know from reading some of my other posts, 2016 was the year I broke free from the chains of a professional career in school psychology and made my business my primary source of income.  If you’ve ever worked a job that you know isn’t your passion, then you know how great it feels for me to kiss that career goodbye.

To be clear, being a school psychologist wasn’t all bad.  I always enjoyed working with the students and I had a good amount of flexibility for a 9 to 5.  At the same time I will never miss having to listen to an entitled POS parent or uninformed administrator again.  After five years of carrying this burden, I am free.

“Based on this photo smelling freedom is the same as experiencing an intense orgasm.”

Amazon FBA Product Growth

I currently have one product that I sell through Amazon FBA that is in the cannabis accessories niche.  Through most of 2016 (January-August) I was selling around 5 to 6 units of this product per day, which amounted to a net profit that was about $65/day.  Certainly nothing amazing, but enough to make it worth my time.

Then September hit and things started to change.  I quickly went from averaging 5 units per day in August to 10 units per day in September, thanks to better Amazon rankings and the growth of my own affiliate site that reviews the product I sell.

Amazon FBA Product Sales for 2016

I hit another level in October going from the 10/day average of September and increasing it to 14 units per day.  With a profit margin of about $12 per unit, I was now netting around $170 per day!

November held fairly steady at that 14 grinder per day average, but then the Christmas rush happened and apparently a lot of people wanted to get high with Santa this year because my average for December jumped to 28 units per day.

I knew that after the holidays ended there would be a drop off in sales, but the drop off has been minimal showing that I am likely going to see this sales volume stick for the long-term.  In fact, as of January 12th I am averaging 26 unit sales per day, which is a net profit of an estimated $312.

This product was only making me about $70 a day for a year and a half and within a few short months has become a big earner.  The lesson here is if you create a good product with unique branding and over time you will build a fanbase through word of mouth and persistence.

Amazon Associate Sites

I currently have three Amazon Associate sites that make up the vast majority of my affiliate income.  Two of these sites are related to basketball and the other one as I mentioned earlier is related to the cannabis accessory I sell.

Basketball Niche Sites

Earnings

The basketball sites were my first true successes with my business and are going to be four years old in 2017.  In 2016 my basketball sites earned $44,184, compared to $29,662 in 2015.  This represents a growth rate of 49%.  I am quite happy with this number as I feel these sites have about maxed out their scalability as Amazon Associate sites.

Amazon Associate Earnings for Basketball Websites

Traffic

Both of these basketball sites achieved all-time highs in both page views and unique visitors for 2016.  The more popular basketball site had 160,000 page views for 2016 from 97,000 visitors, while the other basketball site had 71,000 page views from 38,000 visitors.  As you can see, you don’t need to have a ton a of web traffic to earn good money from a website.  The price point of the product you review is much more important.

Cannabis Accessory Site

My third decent earning Amazon Associate site is in the cannabis niche.  I actually bought this site a few years ago for $7,000.  Being that it was already earning between $500-$700 I felt that this was a steal.  Now these similar sites go for a monthly multiple between 25-30.

In 2015, this site earned $6318, which is a monthly average of $526.50.  For 2016, the site grew 76% and earned $11,137 for a monthly average of $928.  Based on these numbers this site is now valued in the range of $25,000.

Amazon Associate Earnings for Cannabis Accessory Website

Traffic

I don’t have yearly traffic numbers for this site because I moved the traffic stats from Yandex Metrika to Google Analytics mid-year.  But I am confident that 2016 was the highest numbers for traffic that this site has received.

Total Amazon Associate Earnings

While the majority of my Amazon Associate earnings come from these three sites, I do have a few other sites with less traffic that do earn a penny or two here and there.  Because of this my total Amazon Associates earnings for 2016 was right around $65,000.

Total Amazon Associate Earnings for 2016

Total Earnings for 2016

Now you have a general idea of the breakdown of income that comes from both Amazon FBA and Amazon Associates.  Let’s now take a brief look at my total earnings for 2016.

According to my Quickbooks I grossed $127,396 for 2016 and I had $61,442 in expenses.  This left me with a net profit for 2016 of $65,954.  While my expenses are high it is important to keep in mind that I do a lot of tweaking and testing in attempts to find opportunities to grow my business.  A lot of time these tests and expenditures fail, but you have to try to find out.  In my opinion, reinvesting profits into your business to find ways to grow is one of the most important things you can do if you want to be successful.

I would guess that if you took out these voluntary expenses my net profit would have been in the $75,000 to $80,000 range.

Looking Ahead to 2017

2017 is shaping up to be an exciting year for The Micropreneur.  I believe that my product sales will stay above 20 units per day during 2017, and that my Amazon Associates earnings will increase as well.  I have also started selling my product on the Amazon UK marketplace.  I think with time we will build some momentum in this new market channel.

If all these things work out I could easily see myself with a net profit in the range of $125,000 to $150,000 for 2017 depending on my expenses.  Time will tell if I hit this range, but boy I hope.

From an expansion standpoint I have several things I’m working on.  The first of which is The Micropreneur site.  I think this site has potential to offer a lot of good to those who are interested in what it is really like to own an online business.

Secondly, I have been talking with my family physician about the possibility of partnering to sell a health and wellness curriculum that he’s developed over the course of 10 years.  I feel there is huge upside to this business and having a partner with unique skills allows for a greater likelihood of success.  We can go in a million directions with this partnership including direct online sales, supplements, and even working with corporations to sell the program to help get their employees in shape.  All in all, I hope we are able to move forward on this project.

Your 2017 Goals

Now you have a good idea of what I’ve been up to during 2016 and what 2017 might have in store for me.  How about you?  What life and business goals do you hope to achieve?  Make sure to leave your comment below as sharing these goals can help you feel motivated and accountable.

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