Category Archives for Resources for Entrepreneurs

Best Business Podcasts for Entrepreneurs

I’ve been listening to business podcasts for a number of years. The consistent and long-time incumbents have gained a huge following. It reminds me yet again that the last one to quit is the last one still in the game, raking in all the profits. In addition to the veteran business podcasters, there have been a number of new entrepreneur-targeted podcasts. I admit, I myself at one point in time recorded some episodes to start my own podcast. One day I might start again when I have the time to produce an episode consistently.

From short 20 minute episodes to hour-long interviews, there are some podcasts that I’ve devoured every episode of and can’t wait for the next one and there are some that I listened 5 minutes of before unsubscribing for good. For me, business podcasts have to have these qualitative factors in order to have staying power:

  • A smart and engaging interviewer who asks great questions and are respectful to their guests.
  • Diverse guests from all backgrounds.
  • Practical advice that can be applied to your own business.
  • ~30 – 40 min in length and frequent (at least twice a week)

I’ve learned a lot and continue to glean lessons from podcasts for entrepreneurs. From years of listening to business podcasts, the list below are my favorite and in my opinion the best business podcasts for both current and aspiring entrepreneurs:

Best Business Podcasts for Entrepreneurs

  1. Side Hustle School

    • Host: Chris Gillebeau
    • Average episode length: 8 min
    • Frequency: Everyday
    • Why I love it: Chris is stoically sarcastic and once you get past the robotic sound of his voice, you’ll pick up on his sarcastic humor and find him funny. Each episode features an entrepreneur’s success with his/her side hustle. Each side hustle came from the entrepreneur identifying an opportunity from something he/she is already good at, so it inspires you to constantly look for opportunities in your life. Many of the stories also grew to success from non-scalable, do-it-yourself tenacity. Again, this gives you the inspiration to be persistent and consistent. Although each episode is only 7 – 12 minutes, Chris is really good at extracting the key takeaway lesson for the audience’s brain juice to start flowing.
  2. EntreLeadership

    • Host: Ken Coleman
    • Average episode length: 1 hour
    • Frequency: Once a week
    • Why I love itEntreleadership podcast is one of the best at featuring a plethora of diverse guests – from big names to smaller business owners. Ken, with his Tennessee twang, is one of the best business interviewers. He’s a great listener and picks key points from the guest’s answers to hone in on or pivot to an adjacent topic. He navigates the interview with such ease as though he’s the creator of a maze and is walking through it already knowing exactly where to go. He’s also very respectful to all his guests, no matter how small or big the entrepreneur’s business is. For some episodes where the guest is a bit bland, the length of the episode gets a bit long. One of my all-time favorite episodes is Zoro the Drummer and his resilience to fame and success. Amazingly inspiring.

  1. Masters of Scale

    • Host: Reid Hoffman
    • Average episode length: 35 min
    • Frequency: Once a week
    • Why I love it: Here’s why I don’t love it. Reid Hoffman is one of the co-founders of LinkedIn, so he will always namedrop and say “my friend, Elon Musk” or “my friend Mark Zuckerberg” and it becomes very hard to relate to the big shot guests. But every big shot has an origin story, which involves most likely a normal day-to-day like you and me, so I look past dear Reid’s hubristic undertone. My favorite part about this podcast is, as I just alluded to, the fact that these big star guests got to where they are because of persistence and/or luck. And luck came to them because they were great at what they did. This podcast is different from Side Hustle School in that the guests have already made it big. So it’s kind of like a shoot-for-the-stars goal to dangle in front of you to keep honing your craft. My favorite episode is Google/Alphabet’s Eric Schmidt.
  2. How I Built This

    • Host: Guy Roz
    • Average episode length: 45 min
    • Frequency: Once a week
    • Why I love it: Guy Roz. He’s got one of the most recognizable voices that sounds genial, genuine, and curious. It’s the use of inflection and pauses in opportune moments that just makes him sound like a naturally curious person. And I have a huge respect for people who are intelligent and naturally curious. So, I love this podcast because of Guy Roz. One of NPR’s greatest hosts. Getting past my superfan moment, other reasons why I love this show is similar to Masters of Scale in that guests are those that have already made it big and their origin story often goes something like this: They had an idea, so they quit their job because they wanted to start their own business. But they had no money. And they kept getting their doors closed in their faces – whether from vendors, investors, or customers. But they had resilience and believed in their product whole-heartedly, so they kept going. They also (and this is *key*, in my opinion) listened to their critics (the ones who said no) and tweaked and refined their products/services until they found the niche audience who clicked with their offerings. They then grew the company by adding limbs as opposed to transforming their existing limbs. I have a number of favorite episodes, so I can’t just link to one, but I’d say my top 3 are: Sara Blakely’s Spanx, Jim Koch’s Samuel Adams, and Beto Perez & Alverto Perlman’s Zumba. I’d listen to all of them (except for a few that were meh but I won’t be a Debbie downer here).
  3. EOFire

    • Host: John Lee Dumas (aka JLD)
    • Average episode length: 25 min
    • Frequency: Everyday
    • Why I love it: This is the longest business podcast I’ve listened to. In fact, I did an analysis on how to value a podcast based on EOFire’s income reports. I used to listen religiously to EOFire. What I appreciate the most about EOFire is that there is an episode awaiting every morning for me to listen to as I get ready for the day. And unlike many podcasts produced in association with or by podcast/radio production companies, EOFire doesn’t have a concept of “seasons,” so they don’t have a period of downtime as they prepare for the next season. Most guests are entrepreneurs who run small businesses. My favorite guests are those who saw an opportunity or jumped in first to entrepreneurship and then found an opportunity and they persisted to make it work. I’ve gotten many tips here and there that got the ball rolling in my head. You’ll learn a lot of smart tricks up the sleeves of the guests. It is a lot of pressure to produce quality episodes on a daily basis and maybe it is for that reason that many guests featured on the show starting its 3rd/4th year were life or career coaches who were running their own business. Unfortunately, I didn’t really like those episodes because there wasn’t much innovation in the business they were running. Maybe the first 10 coaches you listen to can teach you something about running a business but the patterns became all too familiar. I noticed that this has changed in the last little while, so I’m listening to it again.

  1. The Pitch

    • Host: Josh Muccio
    • Average episode length: 35 min
    • Frequency: Once a week
    • Why I love it: It’s basically Shark Tank with less drama that you can listen to while you’re doing chores or jogging. Because you’re listening in on a live pitch and question/answer grilling sesh by the investors, you learn about what you should consider that maybe you haven’t considered before for your business. In other words, you learn how you should think about things and the process to critique your own business product or idea, and what questions to ask yourself. This process of thinking is crucial for honing in on your target audience, addressing that audience, and refining your product to meet their need.

That concludes my list of business podcasts that I listen to religiously.

Other business podcasts that I would recommend to entrepreneurs or aspiring entrepreneurs but haven’t quite made the top favorites list are:

I’ll listen to the above when a guest or topic catches my interest, but otherwise, there are reasons that push them down to my second-tier business podcast list.

Green Joe Coffee Truck – How to Earn Over $100,000 Working Part-Time Hours

The food truck market reached $1.2 billion in sales in 2015. There are over 4,000 food trucks across the United States with no signs of decline as the annual growth rate reached 12.4%.

But the success of food trucks requires ingenuity on the part of creating a unique menu. On top of that, the food truck business requires a lot of devoted hours.

On the other hand, coffee trucks remove the variability of success from a unique food menu, thus simplifying the steps needed to succeed.

Vincent, the founder of Green Joe Coffee Truck, successfully built a coffee truck business on the side while working a demanding 70-80 hour week corporate job. Now, he makes over $100,000 from the coffee truck while only working part-time hours.

He shares his insight below on how you can start a coffee truck business, profitability and lifestyle. For details on starting a coffee truck, I highly encourage you to pick up his ebook to learn the detailed and proven approach based on his experience.

coffee truck | food truck | business idea | how to start a business | residual income

What is the best thing about running a coffee truck business?

  1. Morning hours only
  2. Get to work on my online passive income business
  3. Experimenting with drinks
  4. Traveling
  5. Being my own boss
  6. Expandable business
  7. Non-expiring product
  8. Little start-up cost

How much can you make from a coffee truck?

  1. How much are you making now per year compared to in your employment?

Now we are getting down to the meat! Last year we grossed just over 100k between all businesses. Now, with an employee and a few investments, it probably left me with about 60k. Not bad for part time hours!

  1. How much does it cost to start a coffee truck?

You can start a coffee truck with different budgets:

– $5,000 – $10,000

-$10,000 – $20,000

-$20,000 and above

More over at Green Joe website!

  1. What is the blended margin on a cup of coffee?

Anywhere from 65%-75%. I buy locally so it affects my margins, but I’m happy knowing I help the community. Cheap isn’t always better. It’s been a year and a half since we’ve stepped foot in Walmart. We’ve manage to keep the vast majority of our business local. Coffee = Community. We choose to keep people over profits.

  1. How many coffees do you sell a month and how much income does that equal to per month?  

Each month is different. An okay month is 6k. A great month is 15k!

  1. How much did you spend on advertising initially? How much do you spend on advertising now?

We spend maybe $100 a month on advertising. We do a lot of social media. We also do grassroots advertising. Good old cold calls and flyers. I use Google pay per click for the ebook.

coffee truck | food truck | business idea | residual income | entrepreneur | how to start a business

Isn’t there a lot of competition in the coffee space nowadays?

There is! Which means it’s a thriving business!!! Competition is not always a bad thing. There is very little competition in disposable lighter repair services because it’s a service that no one needs. But everyone drinks coffee!

Do you need any relevant experience?

Experience always helps. But is it needed? I didn’t have any and here I am. I always say that as long as you know what a bad cup of coffee taste like, and you don’t serve it, you’ll be good to go.

The greatest asset I think a person can have is self assessment. Let the ego go. Look at yourself and see where you’re going wrong and learn. It’s not just about coffee. Its about customer service, treating your employees right, having a good tax strategy, closing catering deals. There’s a lot to learn, which means there will be a lot of mistakes. Try to take each one as an educational experience.  Observe, Test, Re-observe. Like anything else in life, knowing is half the battle.

Does this business work in any city?

You have to go where the people are. I like to go to places where there is no parking, because no parking equates to foot traffic. So think about your city, where you have difficult time finding parking and I bet you’ll find a coffee shop thriving there. Coffee trucks are no different.

Sudden Coffee General Mobile 300x50

I do well at festivals, but they often have fees and I often have to hire for them. So, my overhead is higher. I workout at a crossfit gym and we have little fitness competitions. I’ve found I can do equal if not sometimes better at these competitions than at big festivals. The reason why: Low to no overhead, multiple drinks in one day per person and no coffee competition. So it really depends on the situation. You get the swing of it after a few months, how to make good decisions. Sometimes gigs are great. Sometimes they fall flat. That’s the nature of the business.

Can you share an excerpt from your ebook?

The greatest piece of advice I can give a Future Coffee Truck Owner is to get your mind right. Many times I see people self-defeat. They say to themselves, “I can’t because….”. There’s usually an array of excuse that come after; because I don’t have the time, I don’t have the money, I don’t have the experience…What ever your excuse may be, you have to remember, it is just that: An Excuse. The old saying holds true: If there is a will, then there is a way. For example, before my grand opening, I had no barista experience other than my home french press (which I still argue is the best experience you can have). I had my trailer stolen. The original truck I bought to pull the trailer seized its engine. I literally melted my first generator. Challenge after challenge, hurdle after hurdle I had to overcome each of these obstacles. The only thing that held me together was the belief that I could eventually walk on my own entrepreneur two feet. Fall after fall, crawl after crawl, I kept getting up. So, I say unto you Future Coffee Truck Owner, get your mind right. You can. 

Go over to Green Joe Coffee Truck to read more about his experience! (And the link to his ebook if you’re interested:)

Flipping Houses: How to Flip a House Successfully Your First Time (Download Profit Calculator)

The question isn’t whether you can make money flipping houses. If done right, flipping houses can make you serious money. For example, if you flip one house every 3 months and make $30,000 in profit, you can make $120,000 a year, with just 4 house flips.

But flipping houses can go very wrong, costing you more than how much you can sell it for, and sometimes never even ever completing the renovations before you put your hands up and sell it for a loss.

If you’ve been entertaining the thought of flipping houses but have never taken the step to researching more about how much you can make and if it’s even viable, then this is a good place to start.

Treat this as a big-picture primer of how much you can potentially make from flipping houses and what you should consider before you take the leap.

At the end of the article, DOWNLOAD the step-by-step house flip profit calculator where based on market comps in the neighborhood you’re interested in flipping houses, you can calculate the target price you should look for in the house you want to flip to make a profit.

flipping houses


In order to make a profit on a house flip, you have to buy the house at a discount, but how do you know if the house is discounted enough?

First, know the selling price of similar properties in the neighborhood. This is achieved by looking up comparables (or “market comps”). Go to and look up the address of the neighborhood you want to flip your first house. Use the market comp worksheet to estimate the average value of similar properties (scroll down to the bottom of the post to download this spreadsheet for free).

market comp | flipping houses | free download

On average, the rule of thumb is for all-in costs (cost of the house, cost to repair, cost to sell) to be less than 70% of how much you can sell it for after all the repair (aka After Repair Value or “ARV”.


You want to sell as quickly as you can after you’ve finished the repair (aka rehab) since that was the purpose of flipping the house. How quickly your house sells will depend on whether the neighborhood is already a typically hot market. So, you want to pick a neighborhood where houses sell quickly. Every neighborhood varies in terms of how long a house sits on the market for. But the rule of thumb is to look for neighborhoods where houses sold within 10 days of listing. Look for these neighborhoods to flip a house in.

real estate | flipping houses | sold


Unless you have hundreds of thousands of dollars in your bank account (in which case, what are you even doing here?!), you’ll need to take out a mortgage to buy a house to flip. Lenders won’t lend more than 80% of the value of the house if you won’t be living in it, so consider that the cash you’ll need is at least 20% of the purchase price of the house.

Also, closing costs are 2-5% of your purchase price (which u can calculate in detail here if you want to know more.) So, factor this into how much cash you need to start your first house flip.


Needless to say, rehab cost depends on the shape that the house is in when you purchase it. If you purchase the house at a 10% discount to market value and all it needs is an outside paint job and landscaping, then all-in cost might only be $3,000. On the other hand, if you buy basically just the skeletal foundation of the house, renovation rehab cost can be $150,000.

Two professional house flippers provide the following useful data (which I’ve summarized the analysis as below):

  • Average rehab cost ranged between $25,000 – $40,000 per house out of a dataset of 50 house flips. Of that, 25% was materials cost and 75% was contractor/labor cost.
  • A typical cost estimate of each “job” that needs to be done to the house can range from $20,000 – $100,000. You can download the detailed cost estimator here.

flipping houses | profitably | contractors

In order to stay within your budget, it’s critical to hire a reputable contractor. A good free resource is to start attending a real estate investors club on Meetup – you can get some very helpful advice from people with experience who can recommend reputable contractors. Reach out to at least 3 contractors and obtain written bids from each (and give your rose to the one).


From the data set of 50 house flips, the average profit was $20,000 – $50,000 per house.

Was there a correlation between the amount of work that went into repairing the house vs how much profit was made? Interestingly, no.

flipping houses | rehab cost | repair cost | cost to flip houses

A run-down house that needed $70,000 in rehab cost made a profit as much as a house that needed $20,000 in rehab cost.

Another interesting finding was that the Return on Investment (“ROI”) was higher for houses that had lower all-in rehab costs (contractor/labor and materials).

rehab cost | flipping houses | cost to flip houses | roi for flipping houses

Key takeaway from this: a cheaper, more run-down house doesn’t equate to higher profit. Renovating a more run-down house will cost more relatively and erode your profits.

A sweet spot is a house in a state that requires about $15,000 – $25,000 of all-in renovation costs. From the dataset, that window resulted in $15,000 – $45,000 in profit.


Again, don’t forget that there are additional costs associated with buying the house (such as closing costs of 2-5% of the purchase price) and with selling the house (e.g. real estate agent commission of 5-6% of the sale price, a portion of the buyer’s closing cost, taxes which vary by state 0.01% – 2%, and other costs).

Taking all of these costs into account, I’ve created a spreadsheet you can download for free at the end of this article to calculate the maximum price you should pay for your first venture into flipping houses.

flipping houses profit calculator

Thank you for reading and hope you found this article helpful. After researching and writing this article,

How to Become a Freelancer and Earn Over $100,000

It’s Monday yet again. A blink and your weekend is gone. Your alarm screams at you to get up because your cubicle awaits. Each drag of your foot feels heavy and unnatural. Why can’t you wake up at 10am, make yourself a nice big breakfast, and power up your laptop to work on your own time? Believe it or not, you can live this life.

This is the luxurious life of freelancers. What makes it luxurious? They have what we all crave more of – freedom.

If you’ve ever dreamed of this life of a freelancer, you’re not alone. But you don’t have any technical skills to offer? This is not a get-rich-quick scheme by any means. It will take months, maybe years (depending on your level of commitment) to achieve this success. First you have to learn the skill, then you have to find clients on online freelance sites like Upwork or Fiverr.

Even though it may seem like a faraway dream, it is closer than you think. Let me show you how.

freelancer | entrepreneur | business idea | passive income

How much can you make as a freelancer?

First, you may be thinking, “but all the freelancers I’ve met are struggling to pay the bills.” Do freelancers even make enough money to live a comfortable life?

The answer is: YES. Of course, as with any job, how much you make depends on: your skills, your reputation, and how you sell yourself. The beauty of freelance work is that you remove the bureaucracy of navigating up a corporate ladder, so your efforts can directly result in success. That means, if you continue to hone your skills and do great work, your clients will recommend you, you will build your reputation, and you can attract the work.

I gathered data on the top paid freelancers on Upwork. There were a number of developers who made well over $120,000. I also found a user interface graphic designer who made $260,000 in 2016! The result of my research showed that it is certainly possible to make enough money to sustain a comfortable lifestyle.

However, as you would expect, how much you can make as a freelancer varies by skillset. Let’s now look at a breakdown of income earned by skill.

Which skill should you learn to become a high-paid freelancer?

I collected data on 50+ freelancers with skills in high demand and analyzed how much income they generated in 2016.

As expected, web developers had the highest average income earned in 2016 with over $120,000.

App developers (for iOS and Android) made close to $100,000.

User Interface (UI) / User Experience (UX) designers came in 3rd place with an average of $70,000.

App software testers for quality assurance (QA) made an average of $60,000.

Top paid graphic designers made a little over $50,000.

how much can you make as a freelance developer | how much does a graphic designer make

One thing in common with these top paid freelancers across all the skillsets is that they had comparably less number of jobs (aka orders) but made more money than the rest in their category. And the reason for that is because they were hired by companies or organizations that required the freelancer’s help with overseeing an entire project as opposed to a one-off logo or website building.

For example, one developer was hired to create the website and e-commerce platform for a retail company. Another example is a graphic designer was hired by a non-profit organization to oversee an entire branding campaign. And I also saw an app developer get hired by a real estate company to create a dynamic app for them and was retained even after the roll-out of the app to continuously make upgrades.

learn to code | learn photoshop | adobe illustrator course | user experience course

Where can you learn the skills to become a freelance entrepreneur?

It’s no surprise that developers made the most money as a freelancer. But as mentioned, the primary driver was because it is more likely that their jobs come in the form of big projects that take a long time to complete.

If you’ve decided which skill you want to learn (maybe an hour a day while you’re working full-time at your corporate job until you are proficient enough in the skill to become a full-time freelancer), these are great intro courses on Udemy that can start you off for literally a fraction of the price as if you were to take a class in-person.

Web Developer

1. Web Design for Beginners: Real World Coding in HTML & CSS – 9 hours (4.7 stars, 1,300+ students)

Click on the image to check out the course

2. The Complete Web Developer Bootcamp – Beginner to Expert – 21.5 hours (4.4 stars, 1,300+ students)

Click on the image to check out the course

App Developer

1. iOS 10 & Swift 3: From Beginner to Paid Professional – 71.5 hours (4.5 stars, 6,700+ students)

Click on the image to check out the course

2. Android N: From Beginner to Paid Professional – 25.5 hours (4.4 stars, 1,100+ students)

Click on the image to check out the course

UI/UX Designer

1. UI Design in Photoshop – Start Designing Web & Mobile Apps – 11 hours (4.6 stars)

Click on the image to check out the course

Graphic Designer

1. Beginners Adobe Photoshop CS5 Tutorial – 13.5 hours (4.9 stars)

Click on the image to check out the course

2. Beginners Adobe Illustrator CS5 Tutorial – 10 hours (4.7 stars)

Click on the image to check out the course

I will be taking some of the courses above in the future. Would love to hear from those who begin this journey and the progress you’ve made!

What are the secrets to making over $100,000 and standing out from the crowd?  

One last thing to leave you with. I want to reiterate a point I made earlier. The data I showed above is the average income earned by the top-earning freelancers on Upwork. If you are serious about becoming a freelancer and you want to start today by learning a skill that’s high in demand, you should leave this article equipped with the knowledge of what makes the top-paid freelancers stand out.

What I’ve observed is that it goes without saying, but your skills should speak for itself. As you hone your skills, follow these tips  when you are selling yourself on Fiverr or Upwork:

  1. Target companies as clients and offer to provide work for an entire program as opposed to one gig. At first, you will need to do small gigs to get favorable reviews. So, offer small gigs for what you know you are an expert at for cheap. Then, market yourself as a controller or project manager who can oversee the completion and implementation of an entire project or campaign.
  1. Another tip from what I’ve observed among the highest paid freelancers on Upwork and Fiverr is that they offer to connect the clients with competitors that they know are excellent in the field if they can’t offer what the client is looking for. Basically, on an automated platform, you are providing an extra level of customer service, and that seems to go a long way.
  1. Lastly, make sure to post your portfolio of completed work, especially for big projects.

I hope you found this article useful. Please subscribe for more articles like this and would greatly appreciate you sharing it with friends!

How Much Can You Make as a Travel Blogger?

It seems like a far-fetched dream – getting paid for traveling? Watching travel shows on TV I often wondered how the heck those people got so lucky that they don’t have to sit under fluorescent light all day, 5 days a week. But thanks to the popularity of blogs, getting paid for traveling actually is an attainable dream.

Travel blogs started taking off years ago. Many veterans of travel blogging started in 2006-2008. So one might wonder if it’s too late to become a travel blogger since it’s a saturated space. But what I’ve found from my research is that there are plenty of travel bloggers who started in the last year or two. And in fact, thanks to varied social marketing platforms such as Pinterest, travel bloggers who are savvy with their social media strategies are able to herd visitors to their site no matter how late in the game they entered. The audience is ever-evolving, which means there will always be an audience.

Now, the question is: How much can you make as a travel blogger? Is travel blogging actually profitable enough to sustain a lifestyle? It’s a crazy thought to quit your job and rely on the cloud to bring in income while you are relaxing on the beach in Chile or wading through a forest in Cambodia. But to answer this question, I collected data from 7 travel bloggers who currently publish or have published income reports recently, and went to work analyzing the data.

It’s worth mentioning that the first thing I noticed while looking through multiple travel blogs is that there are 2 distinct types of travel bloggers: ones who live abroad (i.e. travel long-term) and ones who take trips (be it a week at a time or 2-3 weeks). This gives me great hope that anyone can start travel blogging part-time while they have a full-time day job and eventually can turn travel blogging into full-time if they wish.

Here’s what I found on how much you can make from travel blogging. First, let me lay out the foundation.


I went a little crazy and combed through each income report and then further categorized them to be able to compare the data set across all the travel bloggers. This is a snippet example of the research & analysis phase I conducted (just to show that there is substance behind the numbers I present in this article):

This is data and analysis for just ONE of the travel blogs. See below for source.

A little tidbit about each of the travel bloggers whose income reports I analyzed:

  1. (Denoted as “TBBT” wherever mentioned below) – A former management consultant who has an engineering background, originally from Toronto, Canada. Thought of the idea to quit and travel back in Dec 2011. After half a year of planning, concept turned into reality in May 2012.
  2. (“TWG”) – A stay-at-home dad who started the travel blog part-time in 2009 and finally quit his day job to dedicate to the blog full-time in 2014. His unique niche is craft beer and food blogging while on travel.
  3. (“WLST”) – A family of 5 from Australia. Family-friendly travel blogging. They are relatively new – started travel blogging part-time in June 2015 and turned it into full-time in February 2016. In a year and a half, they’ve built a loyal base of viewership to 14k – 25k unique visitors per month. Their strategy is Pinterest and Instagram, with more than 12k followers on Instagram.
  4. (“LTD”) – A couple who started travel blogging back in 2010. They now have a team of 4 including themselves. They’ve leveraged their blog into selling trip planning services.
  5. (“WS”) – Perhaps one of my favorites. It’s a one-woman show on her blog (actually, a portfolio of blogs), but travels include her husband and kids. Started full-time travel blogging in October 2013. She is incredible – systematically grew her visitors to the website with a healthy growth month over month since October 2013, and her income is solely focused on truly passive income – affiliates and commission.
  6. (“FOG”) – Also a pretty new travel blog – started in August 2015. This couple carved out a very niche segment of travel blogging. They do road trips and camping in the US. They blog about camping food and do collaborations on camping food recipes.
  7. (“NN”) – A long-time travel blogger. Not too much data on income reports, but wanted to point this blog out because of her unique product that’s done very well in sales – a physical customized map of the city she traveled extensively.


The risk with making travel blogging your livelihood is not at the start of the new lifestyle/business venture but in the midst of it. That is, the upfront cost is very minimal, as basically, you can have a website running for $100 and you’re off to the races.

Typically, depending on the size of the blog (i.e. how many visitors the site gets), the average monthly income generated by travel blogs is between $1,000 – $4,000. Once the blog has a sizeable visitor traffic, the travel bloggers can also receive sponsored trips whereby they can travel for free, which can typically be valued between $2,000 – $4,000. Hypothetically, if you hustle and are able to get a sponsored trip every month, you can be traveling for free and generate $2,000 a month from the blog.

Because business expense is so low, travel blogging can definitely be a profitable business venture or a way to live.

HOWEVER, travel blogging is NOT as passive as you might think. If you think “set it and forget it” mentality is going to work, then you can forget it altogether. From my research and analysis, I found that the passive portion of the income is quite low.

So then, which income stream does pays the most for a travel blog?


I categorized the income data collected on the aforementioned travel blogs into the following:

  1. Affiliate Income – hugely dependent on # of visitors
  2. Advertising Income – hugely dependent on # of visitors
  3. Freelance Income – not dependent on # of visitors
  4. Product Income – so-so dependent on # of visitors
  5. Sponsored Income – so-so dependent on # of visitors

More on each income source as follows:

1. Affiliate Income

Interestingly, what I found was that income earned through passive means is unfortunately not very high in most cases.

Affiliate income averaged around 9-10% of total income, earning on average $10 for every 1,000 visitors. Which means that if you were consistently getting 50,000 visitors every month, affiliate income would draw in $500 a month.

One exception is wheressharon. Affiliate income made up ~60% of total income and for every 1,000 visitors, she earned 6.0x the amount compared to other travel blogs. Her biggest source of affiliate income came in the form of commissions. What she does well is she has commission/affiliate based sources that focus on bigger ticket items when traveling. For example, her commissions are from,,, and

2. Advertising Income

Advertising is also not very high for most travel blogs. The standard run-of-the-mill advertising sources of income that overlap across most of the travel blogs are:

  • Google Adsense
  • Monumetric (Formerly The Blogger Network)
  • Spoutable
  • Sovrn

3. Freelance Income

Freelance is interesting but tricky because of the hustling involved but also the limitless amount of money you can make from it. The typical freelance work I’ve seen employed by travel bloggers are:

  • Writing for other travel sites, drawing from their travel experiences à
  • Photography
  • Web/graphic design services

In certain months, you can make as little as ~$300 and then jump to $2,300 the next month when you get a bunch of work (as in the case of FOG).

4. Product Income

Income from products can have a double benefit – you not only leverage your travel blog’s audience to sell your products, you can also use it as a lead magnet to attract visitors to your website. It is the most interesting source of income to me, because you can be as creative as you want in creating a product that aligns with your travel blog. Ebooks are the most prominent for travel blogs. Online courses can be found as well. Trip planning services are also hugely popular as a product offered on travel blogs.

One of the most unique products I’ve seen is NN’s customized physical map of Kigali, Rwanda. It has illustrations and tips, and one of the more successful months brought in $5,337 just from sales of the map!

Another product where it pays off being in a niche space is FOG’s recipe collaborations. Their travel blog niche is camping. So, they often engage with other sites or magazines to come up with camping food recipes, which I think is so creative and effective in leveraging your skillset.

5. Sponsored Income

If you’re lucky or if you’re an authority in your field, companies will approach you to be a sponsor of your travel blog. But most often than not, you have to be the one hustling to get sponsorship. You do need to have built a sizeable web traffic to your travel blog to secure sponsorships. But, I was pleased to see that you don’t need that much traffic to start rolling in the dough.

How many visitors do you need to get sponsors’ attention? Here’s a snapshot (explanation below):

Key takeaways (each corresponding letter in the snapshot explained as follows):

A. TWG has less than 7,000 monthly unique visitors and still secured sponsorship of an average $260 a month. WLST had 14,500 monthly unique visitors and secured $660 on average.

B. Although FOG doesn’t report the number of visitors to their site, they’ve only been around for a year and a half, they started around the same time as WLST, so more likely than not, their unique visitors are between 7,000 – 15,000, and they were able to secure ~$300 on average in sponsorship income.

C. With 14,500 unique visitors, WLST got $1,000 – $2,500 worth of free sponsored trips.

D. WS got $4,000 worth of free sponsored trips when they had 35,000 visitors.

So, we could summarize that by saying sponsors will partner with travel blogs that have as low as 7,000 monthly unique visitors. And you could potentially make $4,000 in value from sponsors when you have 30,000 monthly unique visitors.

Oh, and a worthy mention is that for the travel blogs that reported both unique visitors and pageviews, the relationship between these two site statistics were very similar. It was 1.5x pageview for ever 1.0 unique visitor.


Thank you for staying with me up to now. Hope it was worth it. (And if it was, then please subscribe for more posts like this breaking down how much you can make as an entrepreneur!)

You’ve seen from real examples of travel blogs that you can make a living as a travel blogger. It is possible to quit your day job that you feel stuck in and get paid to travel. It takes work as with anything else, but as illustrated above, there are many ways to get creative in earning income and to me, that’s the appeal of becoming a full-time travel blogger – there is no limit as to how much you can make. It really depends on how much traffic you get on your website and how much you hustle to get sponsored income or make products to sell to your audience.

We’ve seen that you can make a sizeable income just from 7,000 monthly visitors to your website.

Now, the realistic picture. How long does it take to get 7,000 visitors, 15k, 60k,…

As in our example travel blogs, WLST and FOG are making $2,000 – $4,000 a month (including non-cash value) in just a year and a half since launch.

But it must be noted that WLST spent an average of almost 50% of income in advertising/marketing expense to promote the blog. On one hand, this might come as a shock. That is a huge chunk of the income that you won’t see. On the flip side, it is evidence that advertising/social marketing is an effective tool to grow your audience to the level where you can make a significant amount of money on your travel blog.

Now that you’ve read how much you can make from travel blogging, are you ready to take the plunge? Or do you feel that it is not enough money for you?

Well, if you’re more convinced than ever that you want to finally quit and live a nomadic life as a travel blogger, these are strategies that you can employ to grow your travel blog as fast as possible once you have it up and running.


These are strategies that successful travel bloggers (i.e. where the data came from) use everyday to grow their web traffic. Most of them are not secret. But it is good to mention even the obvious, simple tips that are adopted by the incumbent travel bloggers. These strategies are:

  1. Consistent, frequent posting (3 posts a week)
  2. Promote an old post one day a week (e.g. Throwback Thursdays)
  3. SEO – use keywords in the file name of images; make Google Images as a referred source
  4. Advertising on Alex in Wanderland, Facebook
  5. Engage on other website forums
  6. Become a featured writer on Trip 101
  7. Create lead magnets that draw people to your website to download for free – advertise catchy and beautiful graphics for lead magnets on Pinterest and Instagram
  8. Active social media marketing on Pinterest and Instagram – Tailwind for Pinterest
  9. Write social media influencer posts on Tribe, Vamp, or Pay Per Post
  10. Have a unique position – e.g. outdoor camping travel, healthy eating while on travel, Mexican restaurants across the US travel, etc.

Thank you for getting this far! It was a long post but I hope it was worth it. If you are already a travel blogger, I would love to hear your thoughts about how the above applies to you. And if you aren’t a travel blogger but are a 9-5 employee feeling stuck, I hope you found this analysis helpful in making a decision in one way or another in regards to travel blogging. Would love to hear your thoughts as well.


Is It Profitable To Make An App?

How much it costs to build an app depends obviously on the type of app you want to build. If it’s a complex enterprise app where you want your customers to have customized login profiles and have the ability to do dynamic functions, then this will involve a backend server. These kinds of apps cost at least $150,000 to over a million dollars.

As a bootstrapping entrepreneur who wants to invest my time and money into building a passive income business, I simply want to know what the very minimal cost is to have a mobile app that can generate revenue. And what the potential typical revenue I can generate from it looks like. I don’t have an idea for an app right now, because it depends on how much it will cost me. If I find out that I can build a complex app for $1,000, then I’ll have all sorts of ideas flowing but if for $1,000, all I can get is an app that basically displays images, then my idea would be very different. So, putting the idea on pause, this is what we are uncovering today:

  1. COST: How much does it cost to build a simple app (i.e. what is the minimum amount required to build an app and to maintain it?
  2. REVENUE & PROFIT: How much can one generate from such an app? What is the ROI? Are there other costs associated once the app is built?

(Note: Since many articles online tell me that Android can be 3-4x more expensive, I am only addressing iOS here. Since basically want to get down to the skeletal costs and profits to be gained associated with building an app as a budding entrepreneur looking to start a passive income business.)

Let’s get started.



The cost of building an app is determined by the complexity of what it can do, and who makes the app (i.e. learn to code and do it yourself, use a freelancer, or go full-blown and use a big app agency). Below is a snapshot of a typical price range varied by those factors:


As someone with no coding experience but wants to build a passive income business with sweat equity and minimal dollars invested, the two obvious choices are learning to code yourself or using an app maker software. There are online courses you can take for as little as $15 for the introductory class, eventually taking several more to be able to code. Or, there are in-person bootcamp classes you can take. They are offered in metro cities all over the world. They usually run for 12 weeks and cost ~$5,000 on average. Some of them also help you get a job after. Personally, I would love to one day learn to code, but right now, my aim is to publish an app as soon as possible, so for the remainder of the profitability analysis, I will focus on building an app via (1) app maker software and (2) offshore freelancer.


Unless your app is Craigslist style, you’ll end up having to make your graphics through a freelancer. This will cost $500-$1,000. App maker software has templates and stock photos you can select. Assuming this is the minimalist route, we will assume you forego the extra graphic design cost for this option.


Once you publish your app, you will have to make upgrades every year. The average cost to upgrade and maintain for 2 years was found to be twice that of the cost to build (i.e. cost to build was 35% of total costs for 2 years). This would affect the app maker software as publishing it multiple times means you need to upgrade to a more costly membership.

In addition, publishing your app on the App Store costs $99/year.


Unfortunately, building the app alone is not enough. In order to have the potential of generating revenue, you need people to download the app. This Cost Per Install (CPI) is basically a measure of how much marketing dollars you spend divided by how many users you acquire. The average Cost Per Install for an iOS app in 2015-2016 was $1.64 in the US and $1.24 globally. Non-game CPI is lower at $0.58 for an iOS app globally.


So far, assuming your app is simple, the annual cost of your app in the launch year is:


The business model you choose for your app is sensitive to the type of app it is and how users have typically engaged with similar apps. If, for example, your app is a social photo-sharing app like Instagram, you would not have any luck charging a premium to download (unless your app has something special that Instagram doesn’t). If your app is a specialized post-grad educational tool that currently does not exist in the App Store, then you’ll have better for this type of app in charging a premium like $19.99 to download. The most popular business model is the freemium model, whereby it is free to download and play, and users can make in-app purchases. Top games that generate millions of dollars have seen the most success with this type of business model.

The most common business models to consider are:

  • Freemium: Free to download and initially play. Revenue is generated via in-app purchases. (e.g. Games)
  • Pay to Download: Charge a free to download.
  • Subscription: Your credit card is charged every month or annually for using it. (e.g. Workout apps for monthly, productivity apps for yearly premium subscription)
  • In-App Advertising: Free to download and use but advertisements show on the screen outside of the control of the user.

Below we look at each of these models and the potential revenue it could generate based on further assumptions.


  • ~5% of app users spend money on in-app purchases (Source: AppsFlyer)
  • On average, these users spend $1.08 on iOS on in-app purchases (Source: AppsFlyer)

Using these assumptions, potential revenue generated from in-app purchases for 100,000 installs is over $5,000.

Pay to Download

This is obviously the ideal situation where you have a fixed price and the user pays to download it. You make bank right there and then upfront. $0.99 is the minimum you can charge for a premium app in the App Store. In addition, $0.99 is the most common price beyond moving away from the free-to-download model. 1 million downloads charged at $0.99 brings in a million bucks. Seems like the obvious choice. However, users are 5 times less likely to pay to download an app than downloading a free app. In addition, the availability of paid apps (including paid apps that offer in-app purchases) are assumed to be 30% of the number of free apps. For simplicity and consistency in comparing the models, these were treated as probabilities. The potential revenue model for a paid-app is:


Depending on the type of app, a subscription price can range from $5/mo to $30/mo to $30/year. The average retention of a customer after a month is 30%. By month three, 93% of the users who installed the app are gone-zo. Subscription-based model is also relatively new. As such, the availability of subscription-based apps is much lower than even pay-to-download apps. Applying a similar assumption as paid apps above in comparison to the freemium model, the revenue potential for a subscription model is:

In-App Advertising

For the user, it’s free to use the app but at the expense of watching forced advertising videos or banner ads flashing at the bottom or top of the app. The effective Cost Per Million (eCPM) is how much the advertisers will pay you for every 1,000 impressions, i.e. for every 1,000 times the advertisement is displayed to the user while using the app. In 2015-2016, the average eCPM was $4 for iOS apps. The revenue is the lowest compared to the other models. You need a lot more users in the app, especially with the downward trend in CPM that advertisers will pay.


Putting it altogether (the costs and revenue by business model), below is the total annual profit in the year it launches and in year 2. Note: Cost Per Install was assumed to be an intermittent cost as marketing campaigns were launched in successions.

The takeaway is that unless you’re confident that your brand will promote the app on its own and thereby not requiring the cost per install, CPI will be a huge component of your cost. With CPI, your app will start becoming profitable after it reaches close to 100,000 downloads. Of course, if it’s subscription based, you will start being profitable with much less downloads. And on the other end of the extreme, in-app advertising will require you to have a lot more downloads and users for you to break even.

If you want to go down the subscription path, you need to think of an app for a niche, targeted audience who will see great value in paying $10/month for your app.



How Much Can You Make on Airbnb?

You pay hundreds of dollars to stay in an Airbnb when you travel. Why can’t you also list on Airbnb and make passive income while you work full-time?

Well, if you already have a spare bedroom, there’s really no risk in listing it on Airbnb. And if you are thinking of buying an income property, at the end of the day, you will end up with equity in the property, so there isn’t really a risk in listing on Airbnb either.

But what if you have neither a spare bedroom nor the money to buy an income property, yet you still want to make passive income from short term rentals on Airbnb?

There is one way to make money on Airbnb without a spare room or income property.

You can lease an apartment, pay monthly rent to the landlord, and instead of living in it, you list the apartment on Airbnb.

But is it worth it? Does the income you earn from listing the apartment on Airbnb outweigh the monthly rent you pay to the landlord?

You’ll be surprised at the result of my research and analysis.

Airbnb | Short term rentals | Income property | Apartment rental | Air b&b

Cost of Setup – Don’t Ignore!

The first thing you should know is that even though you are not buying a property to start Airbnb, there is still a considerable upfront cost.

First, when you lease an apartment for the purpose of listing on Airbnb, there is security deposit (even if you get all of it back at the end of the lease, you need it upfront) and moving costs. Together, that’ll be around $1,500 for a 1-bedroom apartment in a metropolitan city.

Then, you have to factor in losing the first 2 weeks of rent, because you have to set up the apartment first after your lease starts before you can list it on Airbnb. Let’s say the rent is $2,000 for a 1-bedroom apartment in Los Angeles. That’s another $1,000 in upfront cost.

Finally, the cost of setup: furniture, kitchen tools, decoration, cleaning supplies, etc. will cost between $4,000 – $5,000. For example, a typical list (if you buy at Ikea rather than Pottery Barn) is:

Airbnb | Short term rentals | Income property | Apartment rental | Air b&b

All in, the total upfront cost will be ~$8,000.

Good News: Airbnb Price Per Night is Twice the Monthly Rent

The cost of setup may deter you from starting an Airbnb. But the good news is that the price per night can be three times the monthly rent. That means there is potential to make 100% return on your monthly investment?

My analysis of ~250 data points (by varying cities/neighborhoods in Greater LA) shows that on average, the Airbnb price per night is twice that of the monthly rent per day (i.e. monthly rent / 30 days):

Airbnb | Short term rentals | Income property | Apartment rental | Air b&b

*Notice that West Hollywood has an Airbnb price that is almost three times the daily cost of renting the apartment. We will come back to this later.

Twice is good but not good enough. It doesn’t mean you could make twice your investment from listing on Airbnb. The biggest factor is Airbnb occupancy rate.

Airbnb | Short term rentals | Income property | Apartment rental | Air b&b

Airbnb Occupancy Rate – Bad for Business!

As expected, the occupancy rate affects the income you can earn on Airbnb. Especially in the 10 neighborhoods within Greater Los Angeles that I analyzed, there is a lot of competition.

And even though neighborhoods like West Hollywood has a long-term apartment rental vacancy rate of 2%-3% (i.e. occupancy rate of 97%-98%), the Airbnb occupancy rate is only 65%, which is comparably lower. Or in Santa Monica where tourists flock to for vacation, the Airbnb occupancy rate is only 61%.

On average, the neighborhoods had an occupancy rate of 55%.

You can look up the occupancy rate of your neighborhood on

airbnb occupancy rate in los angeles california

Putting It All Together: Airbnb is NOT Worth It

Putting together the ~250 data points in 10 neighborhoods in LA, the result is that the income earned on Airbnb is only marginally higher than the cost of monthly rent if you were to lease the apartment to start an Airbnb business.

The summary of the analysis below takes into account the pricing and the occupancy rate above as well as a 10% operating cost for Airbnb, which factors in a high turnover (cleaning fees and supplies, utilities, internet, etc).

how much can you make on airbnb

The income you can earn from Airbnb is only 1.1x higher than the cost of monthly rent. If you take into account the cost of setup, you will just break even. That means your return on investment will most likely be 0% – 5% per year. And that is only if your occupancy rate keeps up with the average in your neighborhood.

If you consider the risk of getting busted by your landlord for subletting your apartment on Airbnb when you’re not allowed to, I’d say, it’s not worth it. (If any of the readers have had success with this approach, please comment! I would love to hear your side of the story on how to make it successful.)

There is Hope: Where You CAN Be Profitable with Airbnb Business

As you can see in the result of my analysis above, West Hollywood beat the odds compared to the other 9 neighborhoods in LA. What is unique about WeHo that you can earn 1.6x income on Airbnb compared to the cost of renting the apartment?

If the neighborhood you are considering has these unique features that West Hollywood has, then you could potentially have a very profitable Airbnb business (i.e. short term rentals):

  1. Near a convention center or a hotel that holds a lot of big conferences
  2. Hotel vacancy rate in that neighborhood is very low at around 2-3%
  3. Central neighborhood that connects to several popular neighborhoods on the periphery
  4. Average Airbnb occupancy rate is relatively high (at least 60%) – you can look this up on
  5. Average nightly price on Airbnb is at least three times higher than the daily rent cost

If the neighborhood you are thinking of launching an Airbnb business doesn’t have the unique features above, it may be difficult to be profitable if you lease an apartment to do it.


How to Value a Mining Company – Part II (Download Valuation Model)

Now that you know how to value a gold mine from the previous post, valuing a base metal mine should be easy because the steps are essentially the same.

What makes valuing a base metal mine – that is, copper, lead, nickel or zinc – more complicated than a gold mine or a silver mine is incorporating co-products and by-products. There are combinations of metals that are found in ore together. For example, common metals found together are: copper-gold or lead-silver-zinc. Often times, there will be one metal that is the primary product and the other is a by-product. Sometimes when both metals derive similar economic value (50/50), they are termed co-products. So, the valuation model becomes more complex with base metals because there are more metals to deal with. (Note that just like the gold mine model provided in the previous post, a free base metal mine model is downloadable here too – just  scroll to the bottom. You will find that in this model, gold/silver/copper/lead/nickel/zinc are all listed. Depending on the mine you are valuing, input 0 for metals that are not found in the technical report. Note also that all the numbers found in this model are hypothetical. That is the end of this particularly long note.)

The set of steps in extracting the necessary information from the technical report for a base metal mine is very similar. I won’t repeat them in detail here, so if you haven’t already, then I encourage you to read the previous post on how to value a gold mine (i.e. mine start year, reserves & resources, operating costs, capex, etc). Once you’ve mastered that, all you need to know to value a base metal mine are:

Waste Ore & Strip Ratio

Waste ore applies to a gold mine as well, but where in a gold mine, the operating cash cost is expressed often in gold ounces produced such that you don’t need to break out waste ore and mined ore, this is not the case for a copper mine or a lead mine. Waste ore mined is a separate cost and is expressed as a cost per tonne of waste ore. Waste ore is calculated by multiplying mined ore by the strip ratio, as seen in the snapshot of the valuation model below:

Grade – %

The most noticeable difference between a precious metal mine and a base metal mine valuation is that the grade of copper, lead, nickel, and zinc are in %, not g/t. Typically, a grade above 1% for a primary product is considered average. If the primary product has a grade of <0.50%, then it is an expensive mine that can run into many hiccups.

Pounds (lbs)

Where gold is expressed in ounces, base metals are expressed in pounds (lbs). To calculate contained copper from mined ore, you multiply the mined ore (million tonnes) x grade (%) x 2204.62 (tonne-to-pound conversion). For example, 1.5million tonnes of ore mined x 0.64% copper grade x 2204.62 = 21.2 million pounds of copper.

Concentrate Tonnes & Grade

The primary base metal product will have a concentrate grade. This one is tricky to understand but basically, you reverse engineer from recovered pounds of the primary metal (e.g. copper) to tonnage of the concentrate. For example, copper concentrate produced of 0.1 million tonnes is derived by starting with:

17.9 million pounds of copper/ 2204.62 (pound-to-tonne conversion) / 10.0% copper concentrate grade (given in the technical report).

You need to find the concentrate produced because of smelting costs (more on this topic later).

Recovery rate is applied the same here as a gold mine valuation. Payability is treated the same as a recovery rate – multiply the percentage to the recovered metal(s).

Smelting & Refining Costs

One extra step in a base metal mine is calculating the smelting and refining costs – these costs are given in the technical report. Smelting cost is expressed as $ per tonne and you multiple this to the concentrate tonnes calculated just above. Refining cost is calculated by multiplying the payable metals by the refining cost per pound.

Operating Cost & Capex

These items are the same as a gold mine valuation. Note that operating cost items are expressed as per tonne of mined ore here, not as per ounce of gold produced.

Royalty (%) – NSR/NPI

NSR Royalty – I’ve also included hypothetical royalties in this model. Net Smelter Returns (NSR) royalty is the most common type of royalty on a mine. It is usually not more than 3% and is calculated by multiplying the NSR royalty percentage to the net smelter revenue (revenue minus the smelting & refining cost as defined above).

NPI Royalty – Net Profit Interest (NPI) royalty is less common. It is calculated as NPI royalty percentage multiplied by operating cash flow (revenue – smelting & refining cost – operating cost). It’s never a good sign when there is a high NPI like 10% as it puts a huge burden on the profitability of the mine.

Valuation Model

As you can see, valuing a base metal mine is not that much different than valuing a gold mine except for the above differences. You can download the model below. Only input in blue font-colored cells. Start by choosing the primary metal at the top of the model first. This will flow through the rest of the model. And input 0 for metals that don’t apply in the mine you are valuing.

**Edited** Hey guys, thanks for visiting my site. If you found this article and the model helpful and would like to see more by every industry, I would be grateful if you could share this on your social media. Thanks very much.

How to Value a Gold Mining Company (Download Valuation Model)

The mining industry is a fascinating space – not only for the fact that almost everything around us comes from mining but also because of the possibility of striking gold with penny stocks that have the potential to turn into a multi-million dollar mine-producing company. But just as much as there is the possibility of blue sky upside, risk is around every bend even after the mining company has started production, which is why it is crucial to know how to value a mine instead of blindly investing in them.

Many investors and economic enthusiasts are obsessed with gold, but it is hard to break into understanding how one would go about valuing a mine because of a lot of technical jargon. But here's something outsiders don't know – every mining company starts out as a cookie cutter of another. For example, how you value a mine is essentially the same, mining executives bounce around companies such that they are all familiar names, and even corporate presentations follow a certain template. Knowing this already is a huge advantage when learning how to value a mining company. In other words, mining is seemingly a mysterious industry, but once you are equipped with the minimal essential knowledge of how to value a mine, you pretty much know 80% of what you need to know.

We are going over everyone's favorite: GOLD. Keep reading and you'll find that it's pretty simple, and once you learn these step-by-step guide, you might just become addicted to valuing more. Let's get started.

(Presumably, you already have a company in mind that you want to value, but if you don't, the best free resource for finding one amongst a sea of mining companies is 24hgold but you have to pay to view more than 3 searches. Another tool that's free is simply googling 'gold mining feasibility study' and limit search results to the last 6 months.)

Here's what you need:

  1. Technical Report
  2. Valuation Model – (Scroll to the bottom to download gold mine valuation model for free.)
  3. Company Website

1. Technical Report

Mine Status

Every mine that goes into production has a technical report written by geologists and engineers. This report is called 'NI 43-101'. They can be found on the company's website or in the SEDAR database for a Canadian mining company or on SEC EDGAR for a US mining company. The first page of the technical report will tell you the type of report, which basically means the stage of the mine. These stages are:

  1. PEA (Preliminary Economic Assessment)
  2. Pre-Feasibility Study
  3. Feasibility Study

A PEA is a very early stage report that defines the resources but that is pretty much it. The probability of a mine with a PEA eventually going into production is very low (i.e. just because a mine has a PEA, it does not mean it's sure to become a mine). The next progression after a PEA is a pre-feasibility study, which has a 10%-30% chance of the mine going into production down the road. It defines the resources with more confidence and discusses the possible economics of the mine (i.e. how much capital costs might go into developing the mine, which is determined by the annual production capacity that makes sense for this particular mine, etc.). The next step after a pre-feasibility study is a feasibility study, which is the most advanced stage of the mine before construction and development begins. It is a more detailed report than the pre-feasibility study with a higher certainty of its assumptions being met. Aside from the majority of the report being a technical assessment, it is essentially a detailed business plan.

By the way, each stage takes years. After a PEA is issued, most likely it will take 2-3 years before a pre-feasibility study and then another 1.5-2 years for a feasibility study. Then anywhere from 1year-never for the permitting process. And finally once you have all the ducks in a row, another 2-3 years for construction and development. In other words, it takes anywhere from 6-10 years before a mine starts producing from the time a PEA is issued. (Note that there is a variance to this time frame depending on many factors. Most notably, a smaller mine in an already mining prolific town where it is easy to get permitting may shave off a couple of years or a big, complicated mine in a politically unstable environment or where there are indigenous protests, may take north of 10 years.)

So, let's say we settle on a mine that has a feasibility study. As an example, we'll look at Avnel Gold and its Kalana Gold Project.

What to Extract from a Technical Report

As I said before, there is a lot of technical jargon to understand in mining. And a technical report can be hundreds of pages long. But from my many years of valuing mining companies, you just need to extract the necessary info to value a mine. (Of course, the more of a technical expert you are, the more you can understand the viability of the mine, but most of us aren't going back to school to get a geology or engineering degree, I don't think.) So, what to extract from a technical report:

  1. Mine Start Year

A feasibility is usually optimistic about the permitting process, the length of time for construction and development phase and the pre-production phase. So, I would add 1-2 years to the mine start year that the feasibility study lays out. If the company has already made significant plans to develop the mine after the feasibility study has been issued, you can often find in their annual or quarterly reports or press releases when they expect production to start. *Note that before full capacity production, the company tests the processing and optimizes the plant. This phase is pre-production and the very first gold produced is called a 'gold pour'. We are looking for the year in which 'commercial production' starts.

In the Kalana Mine feasibility study, the anticipated commercial production start year is July 2018.

It is highly unlikely for a mine to start producing on time. So, I am going to tack on 1.5 years and say that full capacity commercial production starts in January 2020.

2. Reserves & Resources

By the time a feasibility study is written on a mine, the resources are reported with a high degree of certainty. These are called Proven & Probable Reserves. Each category of reserves or resources tells you the degree of certainty that the stated minerals are indeed there and mineable. If you're trying to value a mine that only has a PEA, you may only see Inferred Resources. This is kind of a stick your finger in the air and guess how much mineral might be contained in the ore. Well, maybe a little more certain than that. The general rule-of-thumb in converting each category of stated reserves & resources into mineable minerals is:

What this means is, looking at Avnel Gold's Kalana Mine example, its feasibility study has proven & probable reserves of 1.96 million ounces (or 'oz'):

In my valuation model, I'm going to cap the number of ounces produced by the mine at 90% of 1.96 million ounces or 90% of 21.7 million tonnes which is 19.5Mt. Note the grade of 2.8g/t of gold ('Au') in the table. We're going to use this number below.

Note that 'Tonnes' is the ore (or the actual raw rock) that is mined and processed, 'Grade' is how much gold is contained in the ore, and the 'Ounces' is the resulting number of gold in ounces. The formula is very simple. It helps us figure out the production rate (discussed in the next section):

*Note: tonnes, not tons. And Troy ounces, not imperial ounces.

3. Annual Production Run Rate

Under the Economic Analysis section, the feasibility study will lay out the plant throughput. The plant throughput is how much ore (the raw rock) is mined and processed to extract the gold. This is where the 'grade' calculation from above is used. In the Kalana Mine feasibility study, the plant throughput rate is 1.5 million tonnes per annum:

Putting together the reserves estimate from above and the annual throughput rate, we model in our valuation 1.5Mtpa per year until we reach a cap of 19.5Mt. That is for 13 years (19.5 / 1.5).

And to convert the 1.5Mt of ore processed each year, using the formula stated above, we multiply it by the grade of 2.8g/t from the reserves table above. That will give us 4.2 million grams. Gold is expressed in troy ounces, so 4.2 million grams is then divided by 31.1035 to result in 135k ounces.

Plopping this into our valuation model with the start year of 2020, this is what it looks like so far:

4. Gold Recovery

Once gold is extracted through the plant at the gold grade, the gold gets further processed to become refined. The Kalana Mine feasibility study states that the Life of Mine (LOM) gold recovery rate is 92.7%, which is extremely optimistic. But for the purpose of this valuation, we will use this number (and because we can always change this assumption later). We simply multiply this to the gold produced to get the refined, recovered gold of 125.2k ounces per year.

5. Operating Costs

The main categories of operating costs are (1) mining, (2) processing, and (3) G&A.

(1) Mining cost consists of all costs associated with excavating the ore (e.g. mine equipment operator cost, fuel cost, maintenance cost, explosives cost, etc.). Expressed as US$ per ounce of gold produced.

(2) Processing cost includes costs associated with the plant, where the ore is processed into gold (e.g. equipment maintenance, plant labor including plant engineers, water treatment, lease, power and utilities, etc.). Expressed as US$ per tonne processed.

(3) G&A cost is comprised of salaries in corporate office, HR, security, environmental costs, land patent tax, etc. Expressed as US$ per ounce of gold produced.

The feasibility study details out the operating costs and also group them which is convenient for the valuation model.

Important to note is that in mining, operating costs are stated as cost per ounce of gold produced. This is for 2 primary reasons: (1) to be able to compare among other gold companies in the industry, and (2) since the gold price is an important economic indicator for the economy in general and for mining specifically, one can easily assess the viability of a mine by netting the gold price by the operating cost, which are both stated in per ounce.

In the Kalana feasibility study, these costs are estimated to be:

– Mining cost: US$380.3/oz

– Processing cost*: $17.68/tonne

– G&A cost: US$74/oz

*Watch out for processing cost expressed as tonne thus calculation is a bit different than the other. See valuation model.

Sometimes, mines have a royalty obligation, which is common when a land owner sells the property to a mining company. The most common type of royalty is Net Smelter Royalty ('NSR'), which is a percentage of recovered gold. At this mine, there is a 3.0% NSR royalty. So we have to account for that.

The government could also collect a royalty – in this case, there is a 0.6% stamp duty on gold sales.

6. Capital Costs (aka Capex)

Are you still with me? We don't have much to go. Stay with me. It'll be so worth it. You'll know how to value any gold mine!

Capital costs are categorized into (1) initial capex and (2) sustaining capex. They are what they sound like. Initial capex consists of construction and development of the mine. All the costs before the plant is producing gold. Sustaining capex is cost associated with maintaining or upgrading all the equipment and assets throughout the life of the mine.

Kalana Mine's total initial capex (aka pre-production capital cost) is $196.3m.

The total sustaining capex is $123m. Of this total, $13.9m is mine closure cost.

Also provided in the feasibility is a schedule of how the costs are allocated throughout the mine period. However, many companies spread out the initial capex for the sake of the economic valuation. For example, mining fleets are expected to be purchased close to the end of the mine period, which makes no sense but helps the mine be valued higher. So, a rule of thumb is to use the total life-of-mine capex estimates and allocate accordingly:

– Initial capex: 35% in Year -2 (i.e. 2 years before production), 50% in Year -1, and 15% in Year 1. So, if the mine start year assumption is 2020, $196.3m is allocated as such: $68.7m in 2018, $98.2m in 2019, and $29.4m in 2020.

– Sustaining capex: $13.9m mine closure cost will be assumed in the last year, so backing this out, the remaining $109.1m sustaining capex will be allocated among the 13 year mine period, which is $8.4m per year.

This way of calculating is obviously a much simplified version. However, when the discounted cash flow goes out 20+ years, the sustaining capex smooths out to be similar and as for initial capex, having the cost be borne upfront is a more conservative approach so any upside beyond the valuation from this approach is a nice present.

You did it. We have finally reached the end of all the info you need from the technical report to value a gold mine. Out of the ~350 page report, you just need the above 6 data. Not so bad, right?

2. Valuation Model

As you read through the above, we've already been going through how to take the info that you extract from the report and put them into the valuation model. So, you should already be somewhat familiar with the flow of the valuation model so far.

A typical microcap mining company (~$100m) has one mine that they are working on (either to bring it to production or they are producing it. But we're not interested in the already-producing ones because there's less upside). In other words, they are a single-asset company. As such, the value of the mine minus any liabilities is equal to the value of the company, otherwise known as Net Asset Value ('NAV').

Because a mine's economics is a set of cash flows in and out during a defined period of time, the best valuation approach to use is the Discounted Cash Flow ('DCF'), which the valuation model in this example uses. Adding up all of the discounted cash flows, we will derive the Net Present Value ('NPV').


First, at the top of the model, enter the valuation date that you want to calculate the NPV on. It could be a future date if you want to know what the valuation will be at a future date.

If you are using the model in 2018 or 2019, then you can change the years by changing where '2017' currently is.

If you've noticed by now, all of the LIGHT BLUE font means you can change the assumptions and input it directly. Black font cells are formulas so if you enter a value, it'll mess up the whole model. Only input in the blue font cells.


We've gone through the inputs and the calculation of gold production above, so we'll skip this part. One important note is that in a DCF model for a mining company, there is no Terminal Value that catches the cash flows of an infinite period of time beyond a defined time period (for example, 5 years of defined time period and a terminal value for infinite period). The reason is that each mine has a maximum number of contained gold, so it won't go forever.


If you have access to professional databases like Capital IQ or Bloomberg, then you can look up analyst consensus of gold price forecast, but if you don't, there are free sites that blog about gold price forecasts. The best place to pull analyst consensus is I approach valuations on the conservative side, so I've assumed a gold price of $1,300 in the mine start year of 2020 then decreasing to $1,100 until the end of the mine life.


Revenue is simply the recovered gold multiplied by the gold price.

We've covered the costs above, both operating costs and capex, so I won't repeat it here.

The corporate tax rate is different for each mine depending on the country the mine is located in. For this mine, 30% was used. You can quickly look up the corporate tax rate like on KPMG's table of country tax rates. (Note that there would be allowable tax deductions but these are not incorporated in the model.)


The higher the risk the mine has in meeting the forecasts, the higher the discount rate. The industry standard is typically in the range of 8% – 12%, with the median being 9%. An example of a 12% discount rate would be for a mine that has political risk, mine development risk, production risk such as uncertainty that the mining method they anticipate will work or if the forecasts in the feasibility study are too ambitious and therefore meeting the forecast is unlikely.

Here, we've settled on the industry median of 9%.


We've now arrived at the valuation of the mine of $147.4 million. That wasn't too bad, was it?

Finally, look at the company's latest balance sheet and add cash and subtract debt to arrive at what the intrinsic value of the market cap is and compare it to the current stock price.

3. Company Website

Now that you know how to value a mine, the next step, which is just as important, is to assess the company qualitatively. This means reading the bios of the Management team and the Board of Directors to see if they have experience in successfully building a mine and using discipline in terms of costs. You can also skim through their press releases to see if they had run into any hiccups in the past related to the mine or any old assets. Or maybe they keep refinancing debt without being able to pay it down. Maybe their accounts payable is growing. Anything fishy or off that catches your eye. Having a keen eye on risk analysis is key.

Interested in valuing copper or lead or nickel or zinc? How to Value a Mining Company, Part II: Base Metals, is posted. Download the base metal valuation model there!

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**Edited** Hey guys, thanks for reading this. I wrote this post and have made the valuation model downloadable for everyone for free. All I ask is that you subscribe and share this site for more industry-specific valuation guides and financial models to download. Thanks very much!

How To Value A Podcast

If Joe Rogan of The Joe Rogan Experience, one of the top 20 podcasters, wanted to one day scale up by bringing on additional producers and podcast personalities to host multiple new shows, how much equity should he give away to investors for their investment? Or perhaps Dan Carlin wanted to turn his Hardcore History podcast into a company that published history textbooks. How much should he value his podcast if he decided to propose this business plan to venture capitalists? Basically the question is, how much is a podcast worth? How do you value a podcast and is it considered a company with a robust enough business model to value it?

While listening to the episode of Startup (the first show produced by Gimlet Media) on valuing their startup company at $10 million during their seed funding, I was curious to find out if podcasts could in fact be valued the same way as ordinary businesses. An investor might need to know the valuation of a potential podcast company. Or a podcast producer might need to know the value of their podcast if they’re looking for funding, exit, or if they want to see how their podcast stacks up against others. Or a prospective podcaster might want to know if it’s worth venturing into the world of podcasting.

In order to answer the question of how much a podcast is worth, I looked at three podcasts that provide enough financial data to work with. First, Gimlet Media, whose show, Startup, discussed some of their numbers and their valuation on their show and in the media. The other two podcasts I used are Smart Passive Income (SPI) and Entrepreneurs on Fire (EOFire) as they have consistently produced monthly income reports since the inception of their respective shows.

The Data

  • At the end of 2015, Gimlet raised $6 million at a $30 million valuation. They forecasted $7 million revenue for 2016.
  • EOFire generated an average of $3 million annual revenue in the last 3 years with an average of ~72% net profit margin. I then used the discounted cash flow method and forecasted a normalized level of revenue and profit similar to historical average levels with slow growth. I assumed a 35% corporate tax rate and a 10% discount rate*.
  • SPI generated an average of $1.4 million annual revenue in the last 3 years with an average of ~74% net profit margin. I also used the discounted cash flow method here and forecasted a normalized level of revenue and profit similar to historical average levels with slow growth. I assumed a 35% corporate tax rate and a 10% discount rate*.

*Discount rate of 10% was derived using the industry standard discount rate for Advertising, Broadcasting and Entertainment as podcasting is not an established enough industry to garner a discount rate yet. Advertising has an industry discount rate of 6.6%, Broadcasting has an industry discount rate of 6.2% and entertainment has 7.9% (Source: Damodoran). An average of 7% discount rate + a company-specific risk factor of 300 bps was added as long-term success of a profitable podcasting company is too early to tell.

The Valuation

The average implied revenue multiple that I got from the valuation was 5.0x.

What does this mean? The multiples are certainly a lot higher than revenue multiples of cash flowing companies in general. The average industry revenue multiple for Advertising is 1.7x, Broadcasting is 2.9x, and Entertainment is 2.9x (Source: Damodoran). I suppose since podcasting is a whole new vertical compared to these traditional industries, it could be comparable to startups. Looking at startup valuations then, the revenue multiples range anywhere from <1.0x to 10.0x. In particular, digital media companies are valued between 1.1x and 5.9x (Source: Fortune).

Could 5.0x become the industry standard valuation multiple for podcasting (for the time being)?

How do Podcasts Make Money?

The value of a podcast depends on the types of income streams the podcast employs and the stability of revenue generated by each income stream. Advertising/sponsorship is the income stream that most podcasts rely on, but selling products and services catered to a niche audience is where a podcast makes the big bucks.

The possibility of coming up with a new income stream is endless. Some income streams require more creativity and don’t necessarily depend on the number of downloads (assuming they have a pretty legitimate level of audience already). And then there are other income streams where once you implement, you don’t need to keep innovating and are more predictable cash flows for the. The most common income streams and their characteristics are:

Income Stream Description Avg  Revenue Predictability Depends on Download #s Creativity


Pre-roll: ~15 seconds at the beginning of the episode

Mid-roll: ~30 – 60 seconds in the middle of the episode

~$20-$40 CPM (Cost per Mille); i.e. fee per 1000 impressions (or downloads) High High Low
Affiliate Income Clickable link on the website that directs to a 3rd party’s website with products and services to purchase Wide range, e.g. $0.25 – $50 per purchase of 3rd party product using the affiliate referral link Low Mid Low
Membership Special privileges beyond free podcast listening ~$5-10/month High Low High
Products & Services Introduce new products (physical or digital) or services (webinars, online courses, in-person courses) catered to the audience Varies depending on product/service

e.g. eBook could be $10 to purchase or an in-person course could be $1000 to attend

Low Low High

Download #s isn’t Everything

The good news is that you can rake in millions of dollars if you have close to or more than a million downloads per month. The bad news is that you have to get to a point where you’re drawing in close to or more than a million downloads per month. But, I won’t leave you with a bad taste. Here’s another good news: it’s that the number of downloads isn’t everything when it comes to generating revenue.

For instance, EOFire’s Revenue/Download was $3.53/download with ~850k downloads in the beginning of 2015. Put another way, every download was worth $3.53. Comparably, Gimlet had almost ten times the download numbers in a given month but was only able to sell $1 per download. Breaking out the income streams makes it clear that EOFire’s profitable success per download is because ~60% of their revenue is generated from additional products and services.  SPI’s revenue per download is pretty healthy as well with $2.33, with ~20% of their income coming from products & services. Gimlet on the other hand isn’t leveraging their audience enough. Of course, it’s a different story because Gimlet’s network of podcast shows is more journalistic and story-telling vs SPI and EOFire, which are geared towards a niche audience of entrepreneurs. But I still think there is a lot of opportunity there for Gimlet to introduce products and services to their audience (i.e. not just to their “customers,” that is, advertisers/sponsors, selling production/editorial services).

Podcasters: How much are you generating in revenue per download? What income streams have you employed and what new income streams can you add in order to scale up?