DEVTOME.COM HOSTING COSTS HAVE BEGUN TO EXCEED 115$ MONTHLY. THE ADMINISTRATION IS NO LONGER ABLE TO HANDLE THE COST WITHOUT ASSISTANCE DUE TO THE RISING COST. THIS HAS BEEN OCCURRING FOR ALMOST A YEAR, BUT WE HAVE BEEN HANDLING IT FROM OUR OWN POCKETS. HOWEVER, WITH LITERALLY NO DONATIONS FOR THE PAST 2+ YEARS IT HAS DEPLETED THE BUDGET IN SHORT ORDER WITH THE INCREASE IN ACTIVITY ON THE SITE IN THE PAST 6 MONTHS. OUR CPU USAGE HAS BECOME TOO HIGH TO REMAIN ON A REASONABLE COSTING PLAN THAT WE COULD MAINTAIN. IF YOU WOULD LIKE TO SUPPORT THE DEVTOME PROJECT AND KEEP THE SITE UP/ALIVE PLEASE DONATE (EVEN IF ITS A SATOSHI) TO OUR DEVCOIN 1M4PCuMXvpWX6LHPkBEf3LJ2z1boZv4EQa OR OUR BTC WALLET 16eqEcqfw4zHUh2znvMcmRzGVwCn7CJLxR TO ALLOW US TO AFFORD THE HOSTING.

THE DEVCOIN AND DEVTOME PROJECTS ARE BOTH VERY IMPORTANT TO THE COMMUNITY. PLEASE CONTRIBUTE TO ITS FURTHER SUCCESS FOR ANOTHER 5 OR MORE YEARS!

Personal Business Model and Income Expectations

The following is a detailed plan I’ve drafted to evaluate my personal earnings potential weighted against my anticipated living costs for the next few months. I drafted this personal business model for my own reference but believe that it could be useful to entrepreneurs like myself as a template of sorts. At the very least I hope this model proves to be a valuable example of how to plan future business endeavors and expenses.

If you like this model, would like to offer feedback, or would like to view similar resources you can visit my entrepreneurship blog at: [entrepreneurshipfirsthand.com]

  • Three sources of income for expenses, savings, and seed money. One of which will grow in to a passive source of income in the long-term.
  • Three separate Business Model drafts tailored specifically to each source of income
  • A consistent schedule and plan of attack for executing said business models simultaneously and efficiently.
  • A budget outlining living expenses and the cost of doing business in all areas.
  • The ultimate planning of, and foundation stages of a Digital Currency Consulting Services Business.

The three sources of income I intend to build are extensively planned out and will be executed in the following ways:

Devtome Writing Platform

Devtome is a writing platform that I was invited to contribute to on January 31st of 2014. As a result of my current contribution to the platform and two additional projects delegated to me by one of the core developers behind Devcoin, I have successfully been able to generate a relatively predictable amount of income.

Income from Devtome has been generated in two separate ways:

Writing Business and Entrepreneurship Articles

These are articles submitted as original content, by me to the public domain through my pseudonymous user page.

Articles are paid out based on several factors including content rating, popularity, and words submitted. Each article is submitted during a specified round, at the end of each round the content submitted is reviewed by administrators, raters, and a scrypt protocol which counts words, links, and images.

When all variables have been accounted for the Devcoin wallet address associated with the user page of the content generator is paid out in what are called round shares. Each share value is dependent on the amount of content generated in said round, calculated by taking the round allocated 180,000,000 DVC/total platform content submitted.

Each share is paid in Devcoin which can then been converted in to Bitcoin, and again to USD. I have been credited thus far with earnings from two closed rounds and am submitting content in the current round in order to continue the flow of income from this stream of revenue.

My personal earnings generated solely from content creation in closed rounds are as follows:

Round Number Devcoin Bitcoin USD
Round 33 279,532 0.0419298 $24.27
Round 34 321,945 0.04829175 $27.95
Round 35 2,336,261 0.35043915 $202.82

Bounty Income

After reaching out to several Administrators on the platform (those in charge of article review and payment distribution) I was lucky enough to have one of my messages offering help towards development in research areas forwarded to unthinkingbit. He then reached out to me personally and I was lucky enough to be delegated a “bounty” task. After reviewing my first three articles and ratings, I was delegated a research task in which I was given the opportunity to perform an analysis of the publicly traded companies featured in the “Fortune 100 Best Companies To Work For 2013” list.

This research assignment required that I list, analyze, and compute past performance ratios for all publicly traded companies associated with the list mentioned above. The research assignment was completed, paid for according to prior agreements, and subsequently spun off in to a second research assignment with a second round of payment. These assignments paid as follows (numbers have been adjusted to reflect the Devcoin value as of this posting on May 28th 2014)

Research Task Devcoin Bitcoin USD
Ratio Calculation Assignment 1,500,000 0.225 130.056
Rank/Performance Change Calculation 1,500,00 0.225 130.06

I was credited for my work, in full based on the agreement unthinkingbit and I had set requiring that he pay me 1.5 million Devcoin per my required professionally calculated and formatted spreadsheet. I have since liquidated some Devcoin to Bitcoin and kept a equal percentages of earnings in Bitcoin and Devcoin denomination as savings/investment while converting a much smaller percentage in to USD for recent travel costs.

Each round consists of 30 days of submission time, with each article being paid out largely based on volume of content. Each round I am allowed as a writer to submit content up to 60 shares worth, any amount exceeding that share worth gets carried over in to subsequent rounds.

Estimated Earning Potential in Devcoin

  • Rounds typically pay 1 share per thousand words
  • On average a share is worth 146,725 Devcoin
  • Devcoin Price currently averages approximately 0.00000015/1 DVC/BTC
  • My articles average 2,500 words each, with each article being completed in no longer than one business day, and more often than not in only a few short hours based on my existing topic knowledge and passion for the topic I’m writing about.

Estimated earnings potential on the Devtome platform then should reflect the following production schedule:

— 60 share maximum per month = 60 — Average earning per share = 146,725 DVC — (60 x 146,725) = 8,803,500 DVC

— Average DVC/BTC = 0.00000015 BTC — DVC potential monthly earnings = 8,803,500 DVC — (0.00000015 x 8,803,500) = 1.320525 BTC

— Monthly Earning Potential in BTC = 1.320525 BTC — BTC/USD current average rate = $578.77 USD — (1.320525 x $587.77) = $764.28 USD

In order to receive the approximate $764.28 estimated earnings per round I would need to write 24 articles. At one article per day I can achieve this amount in 24 days, allowing 6 days of leeway for breaks or time off to concentrate on a separate project. As I will mention later, my other projects work in harmony with this one at times, making 24 articles in a month absolutely possible, and even productive.

Additionally, as a writer on the Devtome platform I am allowed to participate in any “bounties” available (Bounties being projects that the Devcoin project funds with the allocated R&D capital from the Devcoin scrypt). The bounties available at this point in time are not necessarily my choice of work, but they are doable and pay similar to the spreadsheet bounties I completed which are listed above.

Painting

As you already know I enjoy painting from time to time. I would like to transform this hobby that I enjoy and capitalize on it to create a revenue generating business. I have sold two paintings in the past, both of which varied in size and price sold.

Painting Size Cost Revenue Profit
Fight Club 24×30 $19.19 $120.00 $101
Audrey Hepburn 16×20 $11.50 $75.00 $63.50

I currently have a painting I have been commissioned for, in which price has not yet been discussed. The painting will be a custom made portrait on a 16×20 Canvas. Though price has not yet been talked about I plan to charge $75.00 again based on size and effort put forth. Profit should be approximately the same for this painting as the Audrey Hepburn Painting.

Because I don’t like the inevitable price talk with commissioned paintings I will no longer be agreeing to such exchanges without setting a price up front, and I will be charging a premium due to my lack of interest in painting something that I did not personally think of.

Presumably, the larger the painting the higher the cost garnered. That being said, I intend on scaling up my paintings and with mom’s recent encouragement and support I was able to purchase a better projector capable of expanding images to a far greater size than the projector I currently work with.

This will allow me to paint massive canvas most likely in 36×48 size range. As size, complexity, and detail scale up so will my price points. I believe that at my current skill I can sell a large painting at a price of $500, and no less than $300.

On a large scale I estimated the costs to be approximately $57.19 and the time taken will most likely be in the 5-7 hour range. The numbers should look something like this:

  • Cost of paint, canvas, stencil materials - $57.19
  • Etsy Listing Fee $0.20 with a 3.5% transaction fee on purchase total
  • Time taken – between 5-7 hours
  • Price Garnered:

High end, High quality $500 price for 7 hours of work

  • ($500 - $57.39) = $442.61
  • (- 3.5% = $427.12
  • Approximately ‘’’$61 per hour’’’ after 7 hours

Low end, Lower quality $300 price for 5 hours of work

  • ($300 - $57.39) = $242.61
  • (- 3.5%) = $234.12
  • Approximately ‘’’$46.82 per hour’’’ after 5 hours

My model for selling these paintings uses Etsy exclusively as my platform for display online. The account costs me nothing aside from 20 cents to list an item and the 3.5% transaction fee from the sale. Shipping and Handling is covered by the buyer and all costs have been accounted for already excluding income taxes (considering I don’t know what bracket I’ll be in at the end of the year)

I intend on marketing my paintings by using SEO techniques I have learned over the years to garner large volumes of page views in addition to utilizing social media platforms like instagram where I have built a following already of approximately 1,300 followers that consciously decided to follow my accounts to keep updated on my work.

Blogging/YouTube AdSense Platform

Blogging

I have been maintaining an entrepreneurship blog where I log lessons, videos, and thoughts about my progress towards creating a business and sources of income.

This is easily monetized but requires a significant amount of effort for upkeep and consistent user involvement when bloggers use focus explicitly to generate content. However with only about 5 sporadic posts and no effort as of yet towards marketing and SEO I have been able to build up several hundred page views in a couple short weeks which makes me confident that through the following steps I can grow a passive income which ultimately can be sold off for a large sum or subcontracted to freelance writers.

My Business Model for the blogging platform includes the following criteria:

  1. Daily posts about progress, current events, and updates to maintain relevancy
  2. User interaction through calculated comments and subscriptions to other finance and business blogs.
  3. Collaboration with other entrepreneurship/business/finance blogs to increase backlinks and improve my blog’s notoriety in addition to adding third party perspective for blog visitors
  4. SEO techniques including article backlinks on social media platforms, ad platform trial period utilization, and blog URL submission to various directories and search engines

Earnings from the blog come in the form of ad impressions and click-throughs. Every time a visitor spends time on my page and side ads run, I get paid a couple of cents. Every time a visitor visits my blog, and then clicks on an ad to be directed to the advertisers page or product, I get paid anywhere between a $0.25 - $0.75

These earnings accumulate in my AdSense Dashboard and can be claimed when the threshold reaches $100 USD. These funds are then direct deposited in to my account once the threshold is reached. At the point where my blog generates enough ad impressions and click-throughs to garner $100 in earnings minimum, I will have successfully added a third source of income for myself.

YouTube

YouTube earnings work in much the same way but add a bit more consistency to the flow of earnings, this is because as the video plays the viewer is often forced to view an ad. In contrast, with the blog the visitor can navigate away from the page or choose not to click through any ad at all so the content I create and post needs to add enough value to facilitate impressions.

With YouTube, I don’t necessarily have to concentrate so specifically on the content I post, as I won’t be posting any original content produced on my own. I have a couple of YouTube channels where I have posted news clips and stories found on the internet that are free to distribute and share on YouTube.

This means that when I write a blog based on a news story, company, theory or concept, I can associate a YouTube video that I post on my own YouTube channel. When people view the video, I get paid and earnings get added to my AdSense Dashboard just like the ad impressions, making the $100 minimum threshold for payout that much more attainable.

Though I can’t confidently project future earnings as of now from AdSense revenues, I can put things in to perspective with what my past effort has solicited. Refer to the following:

At approximately this time last year (summer semester) while beginning summer classes I decided to try generating revenue from YouTube and blogging. Though I could not put nearly as much effort in to it as I had wanted to, I was able to publish the following:

  1. One investment blog consisting of only 4 articles posted sporadically. There was no emphasis on SEO or community involvement because at the time I was taking 3 classes and simply did not have the time to put effort in.
  2. Two YouTube channels
    1. One consisting of 4 Bitcoin videos
    2. One consisting of about 10 investment news clips or definition animations

All postings were sporadic and done in my free time with minimal conscious thought. Despite the significant lack of effort the content published after one year’s time has accumulated earnings in the amount of $40.64

By publishing content that took me no longer than a couple of hours, over the past year I have mindlessly created $40.64 in earnings, which I find to be remarkable. I intend on working diligently towards building an online presence with my blog and YouTube channels so that I can raise the $59.36 required to reach the $100 minimum and cash out, while building an infrastructure for consistent, passive income generation in future.

Digital Currency Adoption Service

This is one of the more exciting goals I have set for myself. I plan to gain notoriety in the digital currency space as one of the biggest names in facilitating wide adoption for all crypto currencies with an emphasis on Bitcoin/Devcoin. I plan on doing this in the following way:

  • Move to a place where Bitcoin is generally seen in a positive light and the population is receptive to it’s adoption
  • Gain expert knowledge on the tax laws and accounting for Digital Currencies
  • Create investment portfolio models for clients to participate in the explosive growth of Digital Currency economies
  • Earn credibility by receiving Digital Currency Consultant Designation if research proves it’s validity and quantifies profitability
  • Creating as many contacts as possible in the Bitcoin community through meetups and conventions where I can prove that I am indispensible as a resource for growth and adoption.

That being said, I recently visited Austin Texas to speak with and introduce myself to some Bitcoin entrepreneurs. I was able to speak with many people around Austin about Bitcoin and found that the population there is incredibly receptive to the idea of adopting Bitcoin as a payment method for their business.

In addition Austin Texas currently houses two of the only Bitcoin ATM machines in the nation and recently hosted one of the largest Bitcoin Conferences in the world only months ago.

In my opinion the environment for this type of business is ideal in Austin and I intend to move there in order to achieve my goals. I have also mapped out the prospects with the highest potential and plan to begin contacting and meeting with each of them as soon as I am in Austin. The contacts I plan to reach out to and or visit:

  • CloudHashing (Digital Mining Company)
  • Central Texas Gunworks (Bitcoin ATM owner)
  • Handlebar (Bitcoin ATM housing business)
  • Austin Bitcoin (Consulting firm)

I intend on differentiating myself from the competition by not only having superior knowledge and possibly a designation in Digital Currency Consulting, but also by creating an online platform for my services where I provide access to training videos, Point of Sale device information and order forms, and Merchant account setup entirely free of charge to anyone looking to get setup accepting.

Additionally I intend on offering my services as a digital currency accountant and investment advisor to those who pay to gain access to my services. Through a referral infrastructure (merchant account providers pay me to sign others up) and the subscription fees paid to me by clients, I have no doubt that I can create a successful consulting business that has massive earnings potential and a global reach.

In order to efficiently execute this plan I intend on living in Austin Texas for the time being and have planned the move thoroughly. The plan is not complicated but will require a significant amount of work ethic and perseverance on my end.

My plan is to:

First, Move all belongings out of my current living situation and minimize my possessions as much as possible through sale or giveaway for tax deduction.

Secondly, Move in with a roommate in Austin Texas where we will share the cost of living exactly equally. At this point the roommate’s cost of living almost exactly mirrors that of mine but is noticeably cheaper in some areas. That being said, splitting these costs will provide the opportunity for me to do exactly what I want to do at a fraction of the living cost that are currently being paid to support me in my college journey. The expenses associated with this living situation are as follows (all numbers have been adjusted to reflect half of what my roommate pays currently):

  • Rent – $495.50
  • Electricity – Approximately $50.00
  • Water – Approximately $15.00
  • Wi-Fi – Approximately $20.00

My personal expenses would include the following estimated approximations based on averages:

  • Food – $250.00 (Estimated based on average consumption and price of normally consumed goods, with a margin of safety factored in to cover any unexpected variables.)
  • Gas – $109.38 (Based on following averages)

15,000 Miles per year 400 Miles per tank $35.00 per tank (15,000/12) = 1,250 a month (1,250/400) = 3.125 Tanks (3.125*$35) = $109.38

  • Car Payments – $223.00 per month
  • Cell Phone Minutes and Data on Family plan - approximately $50.00
  • Car Insurance – $1,800 a year divided by 12 months $150 per month

Total Monthly Cost of Living = ‘’’$1,362.38’’’ Annual Cost of Living = ‘’’$16,348.56’’’

Income Source Total Earning Potential Estimates

Devtome Articles

At an allowed rate of 60 shares per round, and 1 share being awarded generally per each 1,000 words written I can generate the article revenue maximum by executing the following:

  • 60,000 words needed to garner credit for 60 Shares per month
  • My article average = 2,500 words per article
  • Time taken to write professional article = 4 hours conservatively
  • 60,000 word total/2,500 word article = 24 articles
  • 24 articles x 4 hours = 96 hours
  • 96 hours/(8 hour work day – 1 hour lunch) = just under 14 days of work
  • 14 Days of work = as calculated earlier ‘’’$764.28’’’ monthly
  • ($764.28 x 12 months) = ‘’’$9,171.36’’’ annually

Painting

Assuming that 14 Days of work will be consumed writing articles, and me choosing not to do any work on any income source over the weekends (highly unlikely considering I deeply enjoy working on each income source) then in any given 30 day month I will have 8 work days to dedicate entirely to painting. My production schedule then would follow the pattern calculated earlier reflecting:

Large Paintings 36×48

  • High end, High quality $500 price for 7 hours of work
    • ($500 price - $57.39 cost) = $442.61
    • - 3.5% = $427.12
    • Approximately $61 per hour after 7 hours
  • Low end, Lower quality $300 price for 5 hours of work
    • ($300 price - $57.39 cost) = $242.61
    • - 3.5% = $234.12
    • Approximately $46.82 per hour after 5 hours

Medium Sized Paintings 24×30 and 16×20

  • High end, High quality, size 24×30 $120 for 4 hours of work
    • ($120.00 price - $19.19 cost) = $101.00
    • - 3.5% = $97.47
    • Approximately $24.37 per hour after 4 hours
  • Low end, Low Quality, Size 16×20 $75.00 for 3 hours of work
    • ($75.00 price – $11.50 cost) = $63.50
    • - 3.5% = $61.27
    • Approximately $20.42 per hour after 3 hours

Assuming the same 7-hour business day as my writing income I can complete a variety of combinations of production. For the sake of illustration assume the following:

  • 8 Business days x 7 production hours = 56 production hours
  • 4 high end, large paintings = 28 production hours
  • 4 low end, large paintings = 20 production hours
  • 2 high end, small paintings = 8 production hours
  • 28 + 20 + 8 = 56 production hours
  • 56 production hours = 10 paintings consisting of
    • 4 high end, large paintings
    • 4 low end, large paintings
    • 2 high end, small paintings
      • Sale of 1 painting in each of the 3 production categories results in
      • $472.12 + $242.61 + $97.47 = $812.12 monthly
      • $812.12 x 12 = $9,746.40 annually

Devtome Bounties

If I accepted 8 Bounties a year (number based on current accept/offer ratio of 2 Bounties in 3 months) and assume a minimum of 1,500,000 DVC per bounty, annual income estimate will reflect

  • 8 Bounties x 1,500,000 DVC = 12,000,000 DVC
  • 12,000,000 DVC/BTC = 1.80 BTC
  • 1.8 BTC/USD = $1,038.60 annually
  • $915.96/12 = $86.55 Monthly

Blog/YouTube AdSense Income

Considering I have never been able to concentrate my efforts on AdSense revenue I don’t have any clear picture on my earnings potential. The following calculations are based on the content that has passively generated the $40.64 in the past year. Both YouTube and my blog generated revenue disproportionately accounting for about 30% from articles and 70% from YouTube.

  • $40.64 x 70% = $28.45
  • $40.64 x 30% = $12.19
  • $28.45/14 YouTube videos = $2.03 per video per year
  • $12.19/4 blog articles = $3.05 per article per year

All 24 articles published on devtome will be ported to my blog requiring no extra work on my part for content creation. Of the 24 articles it’s very likely that 50% will either be based on, or associated with, a YouTube video that I can post. That being said in any given year it’s likely that I will have published 288 articles and 144 YouTube videos.

That being said I would like to illustrate the earning potential of this income source as conservatively as possible considering my current lack of data. For a conservative estimate I will use the Pareto Principle which states that 20% of user effort accounts of 80% of user results.

  • 288 articles x 20% = Approximately 58 revenue generating articles
  • 144 videos x 20% = Approximately 29 revenue generating videos
  • Currently published content revenue = $40.64 annually
  • 58 articles x $3.05 in revenue yearly = $176.90 annually
  • 29 videos x $2.03 in revenue yearly = $58.87 annually
  • $40.64 + $176.90 + $58.87 = ‘’’$276.41’’’ per year
  • $276.41/12 = ‘’’$23.03’’’ monthly

Income Source Totals Annually = ‘’’$20,232.77’’’ Monthly = ‘’’$1,686.06’’’

The figures above are the most conservative estimate of what I believe is my definite current minimum earnings potential based on the three sources of income illustrated earlier. This does not include:

Exponential growth multiplier for AdSense revenue earnings. As content volume expands, and popularity increases, the earnings potential for Ad revenue grows exponentially and has global reach as well as infinitely large earnings scale. Assume that rather than 20% efficiency I reach 50% efficiency in content revenue generation as well as 1.5 times earnings power for each published revenue generating content. Earnings would reflect the following:

  • 144 revenue generating articles
  • 72 revenue generating videos
  • 1.5 popularity multiplier x $3.05 = $4.58 per article
  • 1.5 popularity multiplier x $2.03 = $3.05 per video
  • 144 x $4.58 = $659.52
  • 72 x $3.05 = $219.60
  • Or a total of $879.12 in passive income for the first year with

exponential growth in subsequent years.

Acceptance of several other Bounty opportunities and administrative positions within the Devtome Platform. Raters, Admins, and Developers are writers who have grow in popularity and credibility, which according to my ratings, I don’t believe I am far off from achieving. This means I could receive generation shares in the very near future for extra income. Assume I become a within a month from now and earn 10 generation shares for administrative duties and bounties, extra earnings potential would add:

  • (10 x 146,725 DVC) = 1,467,250 DVC annually
  • (1,467,250 x 12 months = 17,607,000 DVC/BTC) = 2.64105 BTC
  • (2.99319 BTC/USD) = $1,523.88 annually

In addition, The sale of 84 paintings totaling a conservative estimate of potential profits in the amount of $26,899.92

That being said, take a bullish stance on my abilities, knowledge, and work ethic then my earnings for the year reflect

  1. Devtome Articles - $9,171.36
    1. Administrative Shares and Bounties Potential - $2,562.48
  2. Painting - $36,646.32
  3. Blog/YouTube – $879.12

Annually – $49,259.28 Monthly - $4,104.94

Considering the cost of living calculation assuming the costs associated with living in Austin Texas and my income in excess of my expenses would reflect:

Annual Income = $49,259.28 Annual Cost of Living = (- $16,348.56) Profit Potential = $32,910.72

Any income in excess of my cost of living will be saved to gradually accumulate one year’s worth of living expenses for emergency purposes. Additionally a percentage of the excess will be invested in to building my Bitcoin Consulting Business.

Furthermore I plan to invest heavily in dividend generating stock holdings that will ultimately either contribute to my passive income or work towards reinvestment to increase my net worth, depending upon my investment position in the publicly traded companies in question.

In my spare time I intend on concentrating heavily on the comprehension and application of coding languages including but not limited to:

  • Apple App Code Language Ruby
  • Android’s App Code Language Ice cream Sandwich
  • HTML 5
  • API

By building that skill set not only will I be able to open up opportunities as a freelancer in code, but I can save a significant amount of money in terms of costs associated with my Bitcoin Consulting Business. Additionally these skills will allow me to build apps associated with the services I provide that will generate passive Ad income as well on both the Android and Apple Platforms.

In conclusion, I have unbreakable confidence in my knowledge, skills, and work ethic. I know exactly where I want to be, what goals I want to achieve, and what steps need to be taken to achieve said goals. By taking the following action steps towards achieving these goals I should not have a problem generating enough income for financial independence in addition to having disposable income which can be used for investing and seed capital in the future.


Business Investing


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