make money online Do you know that 95% of the people starting out in their internet businesses fail? That number may be as high as 97%.

In the middle of all the noise and hype on the internet today, not many people realize that all the ideas and techniques you can find are useless if you don’t first understand what your business model is or how are you going to make money on the internet. Even the most remarkable internet marketing technique will not work if you don’t understand how to apply it to your business.

I’ve been making money on the Internet for many years. and now live what some call a Dot Com Lifestyle. As I write this post I am sitting at my home office in California, overlooking the ocean.  The local temperature is 67 degrees with clear skies and bright sunlight. The forecast for my east coast hometown is snow and 27 degrees.

Internet Cafe I work when I want and from where I want. All I need is an Internet connection. My wife and I travel far and wide…whenever we want. Here’s a photo of an Internet cafe in Egypt I used doing some business while travelling in that wonderful country.

You, too, can enjoy the benefit of making money online. Whether you want to travel or just enjoy where you live with more money in your pocket at the end of every month an online business is life changing.

There are many ways to make money online. Here are three common starting business models:

1) Affiliate Marketing

Perhaps the most popular one out there, affiliate marketing provides a good start for newbies. Almost anyone can sign-up for an affiliate program for free and start promoting the chosen product or service.

Commissions start coming in if someone will buy or participate in the programs promoted. Affiliate marketers don’t carry any risk, since they do not pay for the creation of the product, they do not handle customer service, they need not know the innards of internet transactions, like merchant accounts, autoresponder like AWeber,  reciprocal linking, etc. It’s also possible to be an affiliate even without a website.

Some affiliate marketing programs you may participate in require little up-front investment. Some are free. It’s no surprise therefore that almost everyone and their neighbor promotes an affiliate program or another. In fact, if there is a single reason why the Internet today is so proliferated with ads and banners, it’s because of affiliate programs.

With the millions out there involve in affiliate marketing, only 3% to 5% ever make any money and only 1% makes really big money. The “Super Affiliates,” so they are called, do it very differently from the rest, therefore they earn the big checks.

2) Writing an eBook or other type of information product, recording an information CD.

This is a great strategy because there are thousands of possibilities for the type of product that you can create.

There are so many niche markets that you can write about. It could be a course on Japanese gardens, how to start your own babysitting business, how to sell your artwork, taking care of your dog’s ears … there are endless topics and still many that have not yet been explored by online marketers.

You don’t even have to write the information yourself, you can get a ghost writer or hire someone to produce the CD.

EBook authors need to invest more than affiliates do. While affiliates can get something for nothing, the same is not true for the eBook type of business. EBook authors need to learn a lot more than affiliates are required to. They need to spend some amount of money-getting the business up and running. However, when done right, the payoff in this online business model is much more rewarding.

These marketers make more money because they have very, very low production and maintenance costs. Once the product is produced, it doesn’t cost a cent to reproduce thousands of copies. Start-up costs can be covered by selling just a few copies of very high-margin eBooks. You can even recruit hordes of affiliates to do the selling for you.

You can write an eBook and sell it on Amazon. Amazon provides formatting software free because the company needs the product for its Kindle line of products. There are several tactics for selling an eBook on Amazon. One is to offer your book at no cost for two weeks or so, trying to get people to download it and write brief reviews.

When you have a couple of favorable reviews you can then price  your book to begin making some money. A popular method is pricing the book at $2.99. With every sale Amazon retains $0.99 and you get $2.00 for as long as the book is offered. The downside is it takes a lot of work to write an eBook and to make a modest living you need to sell a lot of books.

3) Adsense

This has taken the internet by storm. There are tons of testimonials from people making outrageous income from Adsense.

Adsense is Google’s advertising program wherein webmasters display ads from Google’s extensive list of advertisers. Unobtrusive text-based ads are served in member sites, who then earn a commission every time someone clicks on the advertisers’ links.

Google Adsense uses a technology to deliver ads that are highly relevant to the content of a page. Google’s engine will scan through the content of the page to determine its topic, and will then serve ads that are relevant to the page’s content. Running Google Adsense is quite simple. First build a website full of content of your desired niche or topic, and then register in Google’s Adsense program. Once approved, you then paste a code in your page, and the ads start appearing immediately after you upload the changes to your server.

Google is silent on how it shares the revenue per click with their partners, but how much you will earn per click depends on the topic and the product being advertised.

Products with profit margins of $10 for the advertiser will most likely give you a smaller pay-per-click (PPC) than a product with a $100 margin. Similarly, ads with high conversion rates will normally give you higher payouts than less effective ads, since they can afford to pay more dollars per click, with a portion of that money going to you.

Unfortunately,  you will not make much money via Adsense. Yes, you can make money, but not a lot, in my experience.

Click here and download a free eBook describing in detail methods for making money online I wrote the intro to this excellent reference model written  by online top money earner John Chow.

The bottom line for starting  your online business is this —you are starting a business. To earn money online you must run your business like a business. There is no other way, no silver bullet to making money online.

Do not be taken in by buying ‘secrets’, silver lining software programs that generate money while you sleep, easy methods requiring no skill or knowledge, or any other promise of quick wealth with no effort.

You always have to work at your business to make money online. Some people are not ready to run a business, but anyone who follows simple guidelines and employs proven methods can.

No matter which model you choose, make sure you understand the basics. Stop buying courses or information not applicable to your business. Information overload can stop you before you even get started.



Filed under: Business

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