Trying to Understand the ways in which people make money

woah... I am a bit overwhelmed and don't quite know how to answer this... There are hundreds of strategies used by millions of online marketers.. so a vague question like this is a bit difficult.

The ads that you saw on the health site are generally only paid per click or per 1000 impressions and YES you definitely need a good bit of traffic to make these worth while.

So the moral of the story is to get traffic.... to provide quality content on your site that people want to read, then once you have the traffic, you can monetize in a few different ways.

Aren't we all?


I promote ClickBank, Amazon and other products and services as an affiliate. I write articles, publish them on my niche sites, and attract targeted traffic by having them as widely re-published as possible in places where the targeted traffic I want to attract is already looking. Then they click a link to come to my content-rich sites, opt in (some of them) and receive email series from me in which I establish trust and credibility and eventually they "buy stuff" on my recommendation (some of them) and I earn commissions. Mostly, I'm selling ClickBank products and getting my traffic through article marketing, and by list-building.


Quite a few. But all internet marketing is ultimately marketing.


Different ones are "best" for different people.


Possibly, but not necessarily.

It depends what sort of banners they are.

Sometimes they're being paid "per click" by the advertiser. Sometimes they're being paid only when their visitors buy something from the site to which the link leads them.

Sometimes they've sold the ads on their site themselves.

Sometimes they've booked them through an "agency" (like AdSense, or more simple/user-friendly variants of it).


Yes, the AdSense model is a high traffic model, for sure.


Yes. Some of those are people with hundreds of sites, and others are people like Perez Hilton with millions of visitors.

Agreed. To me also, sometimes.

I chose my "model", about three and half years ago, by trying to find something that fitted these seven main criteria ...

• suited my existing skill-set (writing)
• not too tecnical and difficult to do (I'm technophobic and incompetent)
• didn't need any/much outsourcing (I don't trust people easily)
• could be set up for well under $100 (I was a student and needed the money I had)
• didn't depend on Google for traffic (that was "the big one", right from the start)
• had enough flexibility not to be dependent on the continued availability and success of any specific, individual product (I can switch products fairly quickly and easily)
• would build a real, asset-based business which I could sell in future if I wanted to (my assets are my lists, my websites and my reputation with potential customers)

Jamie Lewis (imwithjamie) offers a coaching system at low cost. In practice three webinars a week and explains the models of business he uses to make money.

This is the SMARTEST question I've seen asked on the forum in a good, long while.

So many people charge off into a business (offline as well as online) without a real understanding of monetization methods.

At a high level, there are 4 models around how money is made online:

1. Selling your own products...these can be information products (ebooks, reports, books, training courses, membership sites, seminars, webinars, etc...) OR tangible goods where you are either the creator/inventor or you have licensed rights to sell those products

2. Selling other people's products. Most often this is done through an affiliate program where you get a commission each time someone buys a product (information or tangible product) when they buy through your unique affiliate URL. Clickbank, Amazon, Commission Junction, Linkshare, etc... would all fall into this category

3. Advertising. The objective here is to develop high traffic volume based largely on content that you monetize by selling ad space...that can be through networks like Adsense, paid product reviews, paid article syndication, banner ad space, Youtube ads, etc...Sometimes this can be a good adjunct to making money, I wouldn't use this as my primary method

4. Selling a service. Similar to #1 above in that you own and market the rights to your own product, just in this case it is a service instead such as website development, virtual assistant, freelance writing, consulting, coaching, graphics development, resume writing....

You should find every business out there falls into one of these 4 categories.

Now work each one backward and you will get a pretty good idea of what you want to tackle.

Once again...congrats for asking such a heads-up question!

Jeff

If you want to make money fast, and really build a business where all you have to do is drive down to the post office everyday... sell on Ebay.

"little grey":

In my opinion, you are are very smart to identify a business model that YOU find attractive. There are 101 ways to make money online and if you are to create a substantial stream of income, you must put in the time. If you find working a certain business model dreadful, you will not put in the time. It will become "work" for you and eventually you'll give up.

That said, here are 3 business "models" you can think about:

1. AdSense:
PROS: -passive income
-no selling
-no customers
-long term/steadier cash flow

CONS: -time (putting up a lot of pages to become a content rich site / become and "authority" site
-small compensation (per click)

2. Local Marketing:
PROS: -easier to rank for (less competition)
-predictable monthly income (if you sell advertising space for a set amount to a local business)

CONS: -you'll have to speak/ or meet with potential clients to discuss the terms of your deal (this may not be a bad thing if you like to meet and be personal with people)
-constantly updating your clients on rankings, traffic stats, etc. (if you structure your business this way)

3. Affiliate Marketing:
PROS: -no customers
-no products
-larger compensation per sale
-never ending supply of products to promote
-faster to rank new producs (hint hint)
-passive income

CONS:-unpredictable earnings (unless you promote programs that pay recurring commissions).
-must research product and market so you can match the right product with the right market

Hope that gets you thinking and off in the right direction. I wish you much success.

Charlie
GainFinancialFreedom.org

I mean this with all sincerity, thank you for these excellent, in-depth answers. I appreciate you taking the time to share your knowledge.

I think for new marketers, affiliate marketing is the way to go. As others have addressed, there are hundreds of potential methods that you could use to make money online, but at the end of the day the most effective way to earn is to simply pick a method you like & stick with it.

I promote affiliate products...and do quite well with it. I love affiliate marketing, because in my opinion it has several key advantages:

1. Don't have to deal with pain in the rear-end customers

2. Often times, the sales funnels are largely done for you (although you'll likely want to modify)

3. You don't have to create products

4. You can remain anonymous

5. Gives you the option for passive, residual income (when done correctly).

#5 might be the biggest selling point for me. To make residual income via affiliate marketing, you need to promote products that bill customers monthly. There are many products online that you could promote like this, with some of my personal favorites being internet marketing membership websites.

You really have the ability to scale your income MUCH quicker if you promote recurring income products or services. With the program I promote, I can make more money with just 4-5 sales a week than most affiliates will make selling 4-5 products a day.

If you want to make money by selling something online, you have to find buyers and give them what they want, but you also have to get traffic and convert this traffic into regular customers. You should study internet marketing before spending money and building your website.

Everything is complicated, expensive and time-consuming. You have to beat a fierce competition and manage to be trusted.

You have to discover the answers for all your questions yourself, by reading many posts.

You also have to try free money-making methods to see how everything works into practice.

Don’t do anything without having a clear business plan in mind. If you don’t know what you are doing you won't make money by chance. The truth is that even trying hard and doing the right things, you won't make money if you won't choose the right niche.

Nothing is as simple as presented by most internet marketers.

Join amazin assosiates

Create an e-store around a popular niche, add some unique content for SEO then send targeted traffic to your store and watch your commission grow!

That is just one way - there are literally millions

To make it as simple as possible, you need to sell something...whether it be your own products, services or offers, or others products services or offers.

Well, in our case, our company earns money by offering our writing services.

With regard to your question as to which model is the best, it's always dependent on the processes you've acquired, learned, and tested over the years. I think all of us do implement a business model that we've seen or proven to have been working for others if not to our own selves.

Now, you don't have to spend too many years trying to test things out just for you come up with tried-and-tested business models. By merely posting this question in this Main Internet Marketing forum is a stepping stone for you already. It's always good to ask others.