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How I Built a $1 Million Passive Income Business

The climb up was hard. The fall was even harder. I think, in a lot of ways I just got lucky!

This is my affiliate marketing journey.

In hindsight, I would have done many things differently, but I am very grateful for this bittersweet experience in the making for over a decade.

This is the story of how I built a passive income “empire” with affiliate marketing.

Chapter 1: The Unsatisfied Employee

It was the second half of 2012, and I was 30 years old. After living abroad for a while, I was back in Johannesburg (the City of Gold). Job hunting wasn’t going too well, and I was pretty close to packing up and leaving… again.

I landed an offer as a website manager for an e-commerce company that sold alternative health products. The office was cozy, and the atmosphere was relaxed—a nice mix of health-conscious people working together with one motto, “prevention is better than cure!”.

I hurled myself into the role and quickly learned what it takes to run an online store. I handled everything from server setup, website design, product import, member migration, payment gateway integration, and, and… and. It was all-hands-on-deck, and I can definitely say, I picked up a lot of know-how about the world of e-commerce.

The remuneration was good—it was above average—and yet I was left very unsatisfied.
Greedy me!

young alexander balanoff ready for the side hustle
Looking fresh, and ready to rock and roll with passive income!

My First Encounter with Passive Income: Google AdSense

I often caught myself wondering:

  • Is this amount of money all that I will ever be worth?
  • Is there a way to make money without “trading” my time for it?
  • How do I break-through the salary ceiling?

That’s when I stumbled across the idea of passive income. I started looking for ways to make money “in the background”, while I was at the gym, while I watched TV, while I slept…
Drum-roll, enter Google AdSense.

AdSense lets you monitize by showing ads on your website, blog, or YouTube channel. After a bit of research, I discovered a list of the highest paid keywords in industries like insurance, loans, and law. That’s when the lightbulb turned On!

Building the Pilot Website & Testing the Waters

By the end of 2012, I’d built a few simple 20–30 page websites focused on loans and insurance. I used SilverStripe CMS to set them up, worked with some affordable freelance content writers, and had the websites deployed to a cheap web hosting provider.

Once the sites were live, I applied for a Google AdSense account, copy/pasted their code into my web pages, and waited for approval. Within a few days, ads were running on my sites.

I remember obsessively checking the monetization dashboard to see how much I’d earned (every minute, of every hour). Free-money, in my pocket!

Blueprint for Success: Let’s Replicate

Throughout 2013, the goal was to go bigger, and bolder. “Greedy me”. I replicated my process in other countries, and I set up websites for New Zealand, Australia, and the UK. As these were first-world countries, these markets had a much higher cost-per-click (CPC) rate for loans and insurance adverts, which meant a higher earning potential.

I kept working after-hours and on weekends, and wherever else I could slot in an extra hour or two. By the end of 2013, my network of five (or so) websites was bringing in an extra salary. Not life-changing, yet quite notable.

I formally registered the business with South Africa’s CIPC.

The Turning Point: From Hobby to Real Business

Between the years of 2014 and 2015, I pushed further (down the rabbit hole):

  • I grew each site to around 300–400 pages of content, I’d like to believe this content was insightful and useful information to the public.
  • I focused heavily on improving technical SEO, user experience (UX), and the overall look and feel (UI) of the websites.
  • I also started capturing visitor email addresses using a simple form-to-email, which quickly grew my database to over 50,000 active leads.

In August 2015, I started using email marketing to drive traffic back to the websites. This was by far a game-changer. More traffic meant more clicks, and more clicks meant more revenue. By the end of the year, I was earning a consistent “extra salary” month-after-month.

September 2015 was a milestone—the month my AdSense revenue matched my full-time salary. By December of that year, I made almost double my full-time salary.
I am in Business!

enjoying the spoils of achieving success
Enjoying the spoils of my affiliate marketing successes!

Quitting My Full-time Job to Run The Side Hustle

It became clear to me that I could afford to leave my full-time job in order to focus on my established side-hustle. The feeling of this achievement is incredible and indescribable—what started as an on-the-side gig had turned into my primary source of income, and more.

Catapulted into New Levels

From 2017 to 2019, I hired people, and eventually ended up with a small remote team to scale my operations; content writers, developers, data administrators, and a team lead to be my right hand, and to help me run all of this. Each website was carefully designed to find loans online, with a focus on quality UI and UX design.

You will end up remembering notable months, like December of 2017—with little overheads—I made an excess of +US$20k per month.

Surviving the Pandemic: A Lesson in Resilience

Then came 2020, and like many businesses, mine took a massive dump during the COVID-19 pandemic. Revenue plummeted, and I had to pause operations. For a good few months, I thought it was the end.

By late 2020, things were slowly recovering. Email marketing resumed, and revenue jumped back up. A year later, I was operating better than ever!

The Fall of an Empire

By late 2022, the AdSense revenue started to decline from a series of Google Algorithm Core and Spam updates. Finally, Google HCU (Helpful Content Update) drove a stake through the heart of it all. It was now dying a slow and painful death. Fewer rankings meant a substantially lower CPC, which meant very-little-to-no revenue. In fact, the revenue bottomed to an approx. 98% loss.

I had read many, MANY stories from affiliate marketers that lost their business models overnight. I had become part of this statistic.

By end of 2023, I had to dismantle my team.

It was a super tough pill to swallow, but I remain eternally optimistic that things may take a turn.

The Conclusion

Despite the many challenges, endless failures (and lessons), the late nights and early mornings, the bridges burnt, the countless Cease and desist lawyers letters (haha)—I don’t regret a thing.

This journey taught me resilience, consistency, discipline, what it means to lead a team, and exactly what it takes to earn money without trading your time for it!

At the end of this journey, I can say that most of it was quite unpredictable, and it was extremely challenging to make any business, financial, or personal plans further than a month in advance. There was always a lot of stress—when exactly the next Google algorithm update would hit, and would I be a victim to that.

For a little more than 10 years, I lived month-to-month and tried to grab as much as I could, with two handfuls. This allowed me many, MANY spoils in life!

alexander balanoff affiliate marketing side hustle
It’s not as glamorous as you’d think. This is what most of the work looked like (at 3.45am)

A huge Thanks to the people that made this journey possible for me.
I leave you with a quote that stuck with me through the years.

“You’re only as strong as the team that supports you!”