Ever wonder how much money a website with 1 million visitors per month makes? The topic of 1 million visitors per month revenue is on many entrepreneurs' minds.
Does your website already get 1 million monthly visitors and you want to know if your revenue is on target?
Or are you trying to work out the right niche or business model to get into?
These are all good questions when starting an online business.
In this post, I’ll tell you exactly how to work out what 1 million visitors per month revenue looks like.
Let’s dive in.
- Use This Simple Formula to Calculate Website Revenue
- How Much Revenue Does a Website with 1 Million Visitors a Month Make?
- How to Calculate Affiliate Site Revenue
- How to Calculate E-commerce Site Revenue
- How to Calculate Revenue for a Website Displaying Ads
- Niche Site Income Case Study
- This Website Receives 1.3 Million Visitors and $80,000+ Per Month
Use This Simple Formula to Calculate Website Revenue
If you're starting an online business, it's difficult to know how much traffic you need to turn a profit. Or, maybe you're confident you can reach a certain traffic level and want to know how much money it'll generate.
I had the same questions and concerns a few months ago, so I searched high and low for a formula to work it out for me.
I even created these affiliate and ad revenue calculators on my blog to calculate website revenue or traffic based on specific goals.
The formulas I share in this article are how those calculators work in the background.
Let’s look at one of those formulas for calculating e-commerce revenue, then I’ll break it down:
Traffic * (Avg. product price * product landing page % * sale conversion rate %) = Revenue
Now, let's break down each part of the equation so you can understand what it means and why we need to include each part.
The traffic is the obvious part and we already know this number: 1 million visitors. But we need to know what that traffic is worth.
Average product price
If you are selling products, you’ll need to know your average product price. If you sell some products at $20 and others at $300, out of all the products sold over a month, you’ll end up with an average.
Product landing page ratio
Then, you need to know the number of people who land on a product page.
If half of your traffic lands on the home page, About page, or any other page that isn’t a product page and they leave immediately, then only 50% of your traffic might buy something.
Knowing your product landing page ratio will help you optimize your traffic in the future.
Sales conversion rate
Then there’s your sales conversion rate. This is the number of people who land on a product page vs. the number of them who make a purchase.
So, if 500,000 people land on a product page and 250,000 people buy, your conversion rate is 50%, which, by the way, is extremely high.
Let’s put in some figures to see the formula in action.
1,000,000 * (60 * 40% * 10%) = 2,400,000
So, if your average product price is $60 and 40% of your traffic lands on a product page, and you convert 10% of those people into a purchase, your monthly revenue will be $2.4 million.
As this example is for an e-commerce site, you’ll have to account for the cost of products, product storage and distribution, transaction fees, ad spend, etc.
How Much Revenue Does a Website with 1 Million Visitors a Month Make?
There’s a big difference between the accuracy of the formula and real-world results.
Meaning, the formula is exact and precise, but the actual results you get rely heavily on many variables.
We can factor in some of these variables to calculate an estimate of revenue from 1 million visitors. However, we can’t predict the exact amount.
Here are some key factors to consider:
The business model
Quality of traffic
Your marketing strategy
The numbers in your business
As you saw in the example above, an e-commerce website can generate a lot of revenue from 1 million visitors, but there are a lot more overheads.
A service-based business can also generate a large sum of revenue if you have a good sales team or productized service. This business model will require more time to fulfill the service, so you’ll need to account for staff salaries or VA costs.
A content site monetized with Google ads or affiliate marketing will generate much less revenue than other business models. However, the overheads will be considerably less, as your only costs would be to maintain the website and hire writers.
Quality of traffic
Having 1 million visitors sounds great, but if your business is based in the U.S. and 80% of your traffic is coming from India, it will not convert well, no matter what the business model is.
Your marketing strategy
Sending 1 million visitors from social media will require a well-thought-out marketing strategy because you have to rely on impulse buys or get them in the right mood to click over to your site.
If, however, most of your traffic is coming from organic search for queries like “best product for moms”, then you’ll convert more because they’re almost ready to buy.
The numbers in your business
When you account for factors like average product price and conversion rate, you can see huge differences in revenue, even with a 1 percent increase.
That’s why it’s important to know your numbers, because then you can change things like calls to action, page design, your marketing strategy, and even your business model.
Now, let’s look at an affiliate website example to see how much money a million visitors could generate.
How to Calculate Affiliate Site Revenue
To work out the revenue with an affiliate site, you’ll need to account for additional variables than you would for an e-commerce site.
Let’s look at the formula first and then break it down:
Traffic * (Ave. product price * ave. commission rate % * CTR % * sales conversion rate %) = Revenue
With an affiliate site, you’ll need to know the average product price and conversion rate like before, but there are also a couple of other factors involved.
Average commission rate
Let’s say your affiliate niche is headphones and other audio equipment and you use Amazon Associates. Your commission rate would be 3%.
That means, on a product sale of $100, you’ll make $3.
CTR stands for Click-Through Rate, which means the number of people who click through to the affiliate product sales page vs. the number of people who visit your website.
For example, if 250,000 people click through to Amazon, your CTR would be 25% out of 1 million visitors to your website.
Side note: You could also account for the product review page ratio to get a more accurate CTR to the affiliate site. This would be more important if half of your content was purely informational and only a portion of your traffic landed on a product review page.
Now, let’s look at a theoretical example of an affiliate site promoting headphones.
We can be really conservative and say the average product price is $50, even though some headphones sell in the $300-$500 range.
We know the commission rate is 3 percent and we can keep the CTR and sales conversion rate at a low 10% and 5%, respectively.
Here’s what the equation would look like:
1,000,000 * (50 * 3% * 10% * 5%) = $7,500
So, if these were your exact numbers, your monthly revenue for 1 million monthly visitors would be $7,500.
If you wanted to increase your revenue, here’s what you could do:
Add more affiliate reviews with more expensive products – this could increase your average product price.
Sign up for a better affiliate program with higher commissions – this will improve the commissions you make.
Write more compelling copy to increase your click-through rate – this could also improve the sales conversion rate because your copy helps the reader make a buying decision.
Update the products you promote, making sure there are no broken links and the products are in stock – this will ensure you get the best sales conversion rate.
- Click the button below for more strategies to increase your Amazon affiliate earnings.
If you track everything in Google Analytics well and do the work to improve them, your revenue could look more like this:
1,000,000 * (75 * 5% * 10% * 6%) = $22,500
Don’t forget that some affiliate programs like Amazon pay commission on all products sold within 24 hours of someone clicking your affiliate link, not just the products you promote.
This means that your revenue could be much higher with 1 million quality visitors and good copywriting on your website.
How to Calculate E-commerce Site Revenue
Let’s have a look at another e-commerce example, this time, with some products in mind.
In this example, let’s imagine you want to sell smartwatches, ranging around $150 each.
Let’s also imagine you’ve been running the business for 2 years and have optimized your internet marketing strategy and conversion rate.
Here’s what your formula could look like:
1,000,000 traffic * (150 avg. product price * 80% landing page ratio * 3% conversion rate) = 3,600,000
So, in this scenario, 1,000,000 visitors will generate $3,600,000. Just keep in mind that this is highly theoretical and I’m grabbing these figures out of thin air.
You will want to take other things into consideration, like refunds, increasing your average order value, or where your traffic is coming from.
How to Calculate Revenue for a Website Displaying Ads
Do you want to start a content site monetized with display ads and want to know how much income you can make with 1 million monthly visitors?
As I’ve already mentioned, these equations are just a guide. You can use them to get a rough idea of how much money you can make with a website.
Here’s the formula for an ad revenue-generated site:
Monthly traffic / 1000 * RPM = Revenue
So, in this example, all you need is the RPM. This stands for Revenue Per Mille, which means 1 thousand impressions.
A reasonable RPM would be around $15 per 1000 impressions, but this also depends on the niche your website is in.
Some niches like insurance and real estate will have a higher RPM, closer to $100 or more.
The difficulty with calculating revenue per visitor is that 1 visitor might see more than 1 ad impression. Then again, 20% of your traffic might use ad blockers, which will skew the overall results.
For the sake of this example, let’s imagine that each unique visitor on average accounts for 1 ad impression.
Here’s what your numbers would look like:
1,000,000 / 1000 * 15 = $15,000
So, an RPM of $15 would generate $15,000 per month with that much traffic. If your site was in the insurance niche and you had an RPM of $100, your revenue would be closer to $100,000 per month.
Niche Site Income Case Study
To give you an idea of how much a website can make from ad revenue and affiliate marking combined, let’s look at a real-life case study from Niche Site Project 4.
In the report, we can see that his ad revenue for the month of April 2021 was $2,911.78:
He also made $2,298.50 in affiliate revenue promoting products on Amazon:
And his overall traffic for the month of these earnings was 172,123 pageviews:
This brings a total revenue of $5,210.28 from 132,614 visitors. That means this website made 0.0392891 cents per visitor in April 2021.
Now, using these numbers, we can work out how much revenue Spencer's niche site would have made with 1 million visitors.
0.0392891 * 1,000,000 = $39,289.10
It's likely these numbers would change when the traffic reaches these kinds of numbers, but it doesn't stop us from theorizing.
Let's go one step further and calculate how many articles this site would need to generate 1 million visitors per month.
In Spencer's income report, he mentions the site had a little over 600 articles. That gives us an average of 221 visitors per article, which equates to 4,524 articles needed to reach 1,000,000 visitors.
This Website Receives 1.3 Million Visitors and $80,000+ Per Month
Here's one last example of an actual website getting over 1 million visitors per month.
We can compare it to Spencer’s example to see if the numbers are close.
Jon Dykstra of FatStacksBlog.com is a popular blogger who I mentioned in a previous blog post.
He shares income reports of his digital publishing portfolio, where his main site receives over 1 million visitors per month. In his August 2021 update, his revenue hit $80,530.
Here are his overall stats for that site:
- Revenue = $80,530
- Visitors = 1,382,142
- Revenue per visitor = 0.0582646 cents
- No. of Articles = 6,780
- Average visits per article = 204
On average, Jon is getting slightly less traffic per article than Spencer’s site, but earning more per visitor. That means Spencer’s old niche site has the potential to get close to these numbers by adding an extra 5,654 articles.
Again, it’s not an exact science as these sites are relying on organic traffic from Google, so actual results could vary. However, these two examples are fairly close in numbers.
So, there you have it. I hope this has helped you learn how much revenue a website with 1 million visitors per month can make.
As I mentioned throughout the article, calculating your revenue based on these variables can give you a rough idea, but in real-world results, nothing beats the actual numbers in your business.
With that said, learn how to start a blog now and work your way up to 1 million monthly visitors.