If you were to count the ways to make money online, you’d be at a loss. I don’t think four limbs would suffice. Lame jokes aside, there are, seriously, countless ways to make a living – even a fortune – on the Internet. The rules and principles that govern money-making in the real world apply just as much online as they do offline.
Some money-making tactics take money to make money. Of course, the trick is to create an extra dollar or more for every dollar you invest in any money-making activity. And you’d want to squeeze out as many profits as you can out of that dollar you’re going to invest. This is just business common sense.
However, this assumes that you need to begin with money if you hope to make any money. But there are several free ways to make money online as well.
As A Freelancer
Perhaps the easiest, fastest, and most straightforward way to begin making money online is to offer your services to other webmasters, online business owners, and internet marketers. If you have a particularly strong skill set – such as writing, designing webpages, copy writing, producing videos, editing audios, creating graphics, etc. – then you can find people who will be more than happy to pay for your services.
You can go to the freelancing networks that would charge you to bid on projects (such as Guru, eLance, or ScriptLance), but you can save your money. You’ll probably be better off going to specific webmaster forums and advertising your services in your signature file. To get started, you could even offer to do your first projects dirt cheap or for free to get a couple of references.
One important tip to take note of if you choose to take this path is that when you are starting on your virgin projects, even if you get very little (or no) money (at all), make sure you get the testimonials of your clients. Store your clients’ rave reviews so that this can serve as your portfolio of customer satisfaction and would give social proof that your work is of a high standard of quality.
Endorsing Other People’s Products For A Commission As An Affiliate
There are dozens of affiliate networks you can sign up with to become an affiliate for potentially thousands upon thousands of products sold online; it’s almost as if the Internet is conspiring to make you rich.
Clickbank is a popular choice and probably one of the easiest to sign up with. Your earnings are paid out by cheque twice a month, provided you have fulfilled some criteria (no worries, you don’t have to jump through hoops of fire to get your first payday). PayDotCom is ideal if you prefer to be paid via PayPal instead of waiting for the bank to clear your commission cheques (it could take weeks, especially if you live outside America). Both Clickbank and PayDotCom also offer affiliates the opportunity to earn some passive income from the monthly recurring billing products they list in their marketplaces.
If you’re looking to broaden your product line beyond merely selling information products, Commission Junction is the No. 1 network to be signed up with. Not only can you sign up with programs that pay you for referring sales, but you can also make some quick bucks out of the numerous CPA (Cost Per Action) programs available. CPA means you don’t need to make people buy products for you to get paid. All you need to do is to persuade people to sign up for some free offers, subscribe to a newsletter, or download software for free in order for you to earn a commission.
There are two sub-paths you can take within the affiliate marketing path – the Anonymous route, and what I call the “Oprah Winfrey” route.
For the Anonymous option, you can employ any number of tactics to promote your affiliate products – pay per clicks, article marketing, search engine optimization, email marketing, etc. This route may be able to allow you to make money faster if you do the tactics right but may not last in the long term unless you consistently maintain your marketing momentum. Taking this option allows you to explore as many niche markets as you want.
The “Oprah Winfrey” option involves building an authoritative reputation amongst your target market, branding yourself, and building trust with your potential customers. This obviously takes time to build but pays off handsomely in the long run. Taking this option might prove difficult for you if you wish to explore different niches as general affiliates who market with authority usually focus on products that serve only one target market.
Create Your Own Product
Create your own masterpiece and sell it to the world. Most people would say that it is the hardest amongst the three ways, but I beg to differ. I made my first dollar online (US$17.00 to be exact, back in those days when US$1.00 equaled $1.70 in Singaporean dollars and Paypal was not that popular amongst internet marketers) selling my own information product.
Where there is a demand, there is money to be made. P T Barnum reportedly said there’s a customer born every minute, but how do you know what these customers want to buy? The secret to untold wealth and riches selling your own products online (even offline) is to know exactly what your potential customers are going through in terms of pain, frustration, problems, challenges, etc.
What is the one thing that is hindering them from achieving their goals? What is the stumbling block that they are encountering? How can you simplify their lives?
Before you go on to create products that would solve these people’s problems and sell a million copies, you must be able to answer the above questions and more. In brief, creating great products simply means being able to solve people’s problems quickly and easily.
Of course, there are many types of products you can sell online, just as there are many solutions to anyone’s problem. But let me simplify it for you further and categorize the kinds of products you can create into 2 :
- Teaching people how to fish
- Giving them the fish
Most information products would fall into the 1st category. Information products can be of many kinds as well – ebooks, audios, videos, tutorials, even live seminars and workshops. Depending upon the amount and value of the content you put into these information products, you can charge anywhere from dirt cheap to exorbitant prices for your information products.
Software, tools, systems, and services fall into the 2nd category. Here, you go beyond teaching people how to do whatever it is that they want to learn to accomplish and actually go do it for them. In this category, you can charge either a recurring monthly fee or a handsome one-time amount for the tool or service you’re offering that is going to solve their problems for them.
You have to understand that business is about making money – yes – but beyond that, it is about exchanging value. Ideally, for every $1 a person gives you, you give him $1 worth of value in return (be it via information, a service or a tool). But this is not a zero-sum game because the value you create and exchange for money is something intangible and cannot really be absolutely quantified in dollars.
Ironically, it is when you give just a little more than what you are paid for, that is when you start to make even more money than if you were to just trade a dollar for a dollar’s worth of value.