Truth About Making Money Online
There is a recession. Some marketers are simply telling us to ignore it and it will go away. Sorry, but that won’t work. I’ve been examining sales not just in my business, but in the businesses of my clients and can tell you the recession IS affecting internet businesses.
While the sales of some products are down, other products are selling better (covered this in more detail in the last issue of the Monthly Mentor Club). So there is an effect taking place whether you acknowledge it or not.
Ignore it at your own peril.
At the same time, we have hundreds of thousands of people looking for information about making money online. They need a little extra part-time income…or they’re looking to replace their job.
While you can’t do very many searches in this field without finding promises about making a million dollars without work, those simply aren’t true. The truth is you’re going to work hard (especially at first) and the income will slowly start coming in. Eventually if you stay consistent and committed to the task, you can build a very successful business. Just don’t believe the HYPE!
I’ve seen it happen too many times. People get started in their online business. They see very little results (maybe a sale of an affiliate product or two). When things don’t happen as quickly as they’ve been told (they didn’t make ten grand this month), they think they’re doing something wrong. So they give up on that project and jump into another subject. They never give their business consistent enough work to make it profitable because they’re looking for the holy grail of online income.
It’s easy to get taken by work at home scams. They sound so enticing. Just do this and watch money pour in. They prey on your hope. You tell yourself, “Maybe, just this once, it will work for me.” Sadly one disappointment after another follows.
Here is the first rule about making money online.
#1 – It always requires hard work to get it started. While we talk about the dream of outsourced business and vacations where income continues to come in, you have to realize there was WORK to get to that point. You have to get the systems and team in place to make it happen. And that doesn’t happen overnight.
#2 – It takes time. YES, I’ve seen people making a full-time income their very first month online, but that is NOT the norm in this market. It’s rare even for those who have the right system and personal help. For example, I don’t take on coaching clients who tell me they have to have a full-time income their first month. The likelihood is low for this. Instead we shoot for a year of consistent effort for a very nice part-time or full-time income online.
So what ways really work in making money online?
1. Information Products
If you’ve read this blog for very long, I’m sure you’ve realized this is one of my favorite methods of making money online. You write an ebook, record an interview, or produce a video. You then package it up (such as a DVD or a digital download). Create sales copy and start selling it.
Your work this week can produce an income for months or even YEARS to come. Work once and get paid on it forever. That ebook might sell for $29.95 or more…and cost you 0 to deliver (talk about nice margins).
This is my primary business and the one I’m most passionate about.
2. Professional Services
This includes such services as coaching, consulting, copywriting, web design, or virtual assistance. Because they aren’t fully automated they sometimes get a bad rap as trading hours for dollars in some circles. Yet, what is you ENJOY doing those activities?
I enjoy the coaching. It’s fun. So even though I would make more money working on more of my own projects (#1 above), I still want to do it. In addition the coaching puts me with my customers so I see the questions they’re asking and where they have the strongest desires for more information. So it becomes a research element as well.
And that’s not counting the fact that for many people starting out it takes time to build that large volume of sales you’re looking for. If you’re good at web design, do some web design projects for others. Or even barter your web design skills to get your other projects in front of people with large lists (you design for them in exchange for a mailing about your product). Or take your web design skills and work for local businesses to produce the income you need WHILE working on your own projects.
Not to mention you can also put together a team of people to do the work for you. For example, my friend Glenn Livingstone recently put together a team to offer his own PPC management service (if you’re spending thousands of dollars on PPC – you owe it to yourself to see what he can do for you).
3. Affiliate Marketing
Others online will pay you to promote their products and services. Check out the Clickbank.com/marketplace or join Commission Junction. You focus on advertising and promoting other people’s products for a share of the profits.
In my own business, I do this one as well although it is more of a secondary income source. I sell my products and services. In addition I refer other tools and services when I find a good choice. My principle which you should steal is find the best solution for your customers and clients. Then contact them to see if you can get a commission for promoting it. Don’t go promote simply because you earn a good commission! Would you recommend them even if there wasn’t a commission involved is the question? If the answer is yes, then go to town to your promotion.
For example, do you have an audience who needs PPC services? If so, you can team up with Glenn. Let him handle all the hard work of managing the PPC campaigns and the staff required to do so. You share in the profits by being an affiliate with him.
This is NOT one of my primary income streams although I find it good for generating leads at times. Yet, there are hundreds of thousands of people who earn a good part-time and full-time income with eBay as their primary promotional tool.
There are even two eBay services in the little town I live in. You bring items you want to sell and they’ll list them for you online. They earn their money as a percentage of the selling price for everything they offer. You could setup a similar service or you could simply become an expert in a specific subject…reselling items through eBay.
Again not my subject of expertise…but an incredible way to make money online. You can even start off by selling some of the items you don’t need around your house to get some experience and feedback in your account.
5. Selling Advertising
You’ll hear people talk about Adsense sites quite a bit, but I wouldn’t develop a site just for Adsense. Instead I would consider it a site where you sell advertising. For example, many of the most popular blogs have advertising as one of their primary income streams.
While they post Adsense, they find it more profitable to sell banner ads, buttons, and blog reviews. At this moment I don’t have a single personal site where I’m selling advertising because I find it more profitable to run my own offers or affiliate promotions on my site (I concentrate on traffic that converts instead of just generating a lot of visitors).
This doesn’t mean that advertising can’t be a primary source of your income though. If you love creating content, running blogs, etc. You can focus on generating traffic to these sites, and then sell the advertising to others. Or another form is to sell “LEADS” to other companies. You generate high quality leads at your site and sell them to others (this is more profitable when you have very targeted visitors interested in a specific subjects such as mortgages, construction, lawyers, etc.).
Sell physical products from your site. This is another one I don’t do personally (everyone focuses on specific subjects). While you could potentially ship these through a dropshipping company, the times I’ve worked with extremely successful clients they had negotiated their own deals on the items they wanted to sell (having the items produced overseas and then shipped to a fulfillment company here).
The advantage here is you can setup a complete ecommerce store selling these products and services. And potentially you could even use eBay as a lead generation model (or set your store up on eBay itself).
7. Domain Real Estate
Domain speculation is another “easy” business you can do. You find great sounding domain names and then sell those to people looking for a name for their company. You spend $10 for a domain name. In exchange you sell an average one for $500. Really good ones can go for MUCH higher!
Or you put together complete businesses for people. You’ll find some of the sellers at http://marketplace.sitepoint.com are selling these types of turnkey businesses while others are selling complete businesses they’ve run for years. You could even make it a practice of buying good online businesses, fixing them up, and then reselling them (just like a quick turn real estate investor).
Which One For You?
Which opportunity is right for you? I don’t know. I’m sure I didn’t even cover all the ways you could make money online. Obviously I’m most partial to the first 3 since those are the ways I make money in my business. I simply wanted to open your mind up a little to find the right source for you to make money online. I know people who make money simply using method #2. Then they expand into information by teaching how they do it.
Others I work with make money simply through affiliate programs. Eventually we try to expand them into information as well (for more ownership of their business). But which one is the right one for you, I don’t know. That’s your choice.Related Entries:
- 7 Ways to Make Money Online
- 10 Ways to Really Make Money Online
- Two Blogging Profit Models
- 5 Reasons to Create Your Own Products
- 5 Ways to Find a Million Dollar Niche