I’ve developed several websites for fun…have not put ads up but one of my sites has a large fanpage associated with it and I’ve been working on driving traffic to it and its getting well known locally. Its starting to run itself and I know I need to set up and sell ads on the site. I have several businesses that are interested once I put this together. I also have several other websites that are not making money now, but I"m realizing its really stupid not to do something with them.
So…my question is how to organize this best. If only one is ready right now to monetize, do I go ahead and get the business license for that website, open checking account in that website/company name and then do each website individually? or is it better to have sort of an umbrella company name…say Xena Company and set up my first website with that company name…then run all future websites through that company name as well? I’m just not sure if each each individual website should be its own company…it seems like a tax return nightmare.
But…if I ever go to sell one of the websites, how does it unravel from the umbrella company?
For those of you with multiple websites, what is your structure and what is best practice?
How do you know it’s ready to monetize? How many page views do you have per month? My rule of thumb for this is that I don’t even think about monetization until the page views reach 10,000 per month. My other rule of thumb is that I need 25k+ page views to make money, and at 350K page views per month the site has “made it”.
Check webworth.info and other such sites for an analysis of your site.
You don’t need to have separate business entities for each site. Create separate divisions. Make sure your income and expenses records indicate which division it is for so you can do financial statements for each site.
Thanks…that is kind of what I thought, but then wasn’t sure …
If you have a ‘fan base’ I suggest you think a bit more out of the box when it comes to monetizing it. Fans will want to spend money directly with you, so think about products you could sell on the site itself, stuff your fans would be interested in. That’s probably going to pull in significantly more money than ads.
The website is an asset of the company, not the company itself. The purpose of creating a separate legal entity is to insulate assets from liability, usually those assets are personal assets.
I would keep all of the website properties in one company at first. If one of them becomes very successful, it might be a good idea to transfer it to an entity by itself to protect it from the liabilities of the other ones.