Sunday, October 02, 2005

How To Make Money From The Internet

How To Make Money From The Internet
A guide to the easiest ways of how to make money from the internet armed with a computer and a bank account.
For starter's you can enter a free competition to win money Enter here for free - Opens in new window

Ways to Get Money from the Internet
The basic way to get money from the Internet is to promote products via ads. These ads are placed on your own website or on someone elses such as a search engine in the form of sponsored ads.
The product might be your own product or someone elses where you participate as an affiliate and receive commissions on sales.
Another way is where you harness the advertizing power of the internet to promote offline businesses, see the bottom of the page for more on this.

How Much Money Could You Make from the Internet ?
With your own product you would make a profit on each sale based on your sale price minus the cost of materials, shipping and other expenses.
Own Product Example
You market an eBook priced at $49 for download from your website and use a 3rd party payment provider such as ClickBank.
Each month you have 10,000 visitors to your website and a sales conversion rate of 5% so your revenue is $24,500 per month.
Now consider expenses like web hosting at $10 per month and credit-card processing fees of 8% giving costs of $1,970 per month.
So, in this example your profits are $22,530 monthly.
Affiliate Marketing Example
You have a website about fishing where you review equipment and have product links carrying your affiliate tracking code.
Your website gets 10,000 visitors a month and 1% click on a product link. 10% of these people purchase an average of $100 of merchandise. You get paid 5% commission.
So 100 people click and 10 buy a product and you are paid 10% of $1,000 in commission.
You only have web hosting costs of $10 per month to deduct.
This nets you $40 per month profit.

Own Product or Affiliate Marketing ?
From the above examples it is clear which is the most profitable approach to take. However, you may struggle to develop your own product, yet you can immediately access 1000's of other people's products via the affiliate marketing route.

How to Make as Much Money as Possible
Which ever route is taken you need to balance the following factors for maximum profits:
Maximise Visitors
The more people that see your ads, the more will click and buy. Some ways to maximise visitors are:
Add more content and pages to your website
Optimise your website for search engines
Get more links to your website
Advertise your URL in Google adwords and pay per click search engines
Advertise your URL offline in classified ads

Maximise Click-throughs
Pre-sell products with reviews, articles and related information then provide links in easy to find places.
Maximise Profit
Adjust the selling price to balance sales volumes at the point where maximum profit is produced.
Minimise costs by reducing shipping costs and administration costs. One of the best ways to do this is to market digital products such as software and eBooks that don't require physical shipping.
Maximise commission. Look for large commission percentages and high conversion rates in affiliate partnerships.

Online Marketing of Offline Business
The internet is a great way to find customers and business associates from the internet without making sales calls, dropping leaflets and spending lots of money running ads. Unfortunately, many people do it the wrong way because it's easy and they fail. The right way to do it is to do what's known as pre-sell an opportunity or product. The idea is to tell people your story and why you like a product or service and then suggest to your visitor a link to sales page if they want to buy or learn more.
The sales page will normally be very well designed to get sales and will have been finely tuned to achieve orders but if people land directly on a page when they were initially searching for information, they will be less receptive to the sales message, hence the need for the pre-sell page. It took me ages to understand this concept, so I hope my brief explanation makes sense to you.

Internet Money Making eBooks
Here are some useful eBooks that show you how to make money from the internet:How to earn $435,000+ per year online selling other people's stuff! Click hereHow to make money from Google. The new updated 2005 manual Google Cash.

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Search Engine Submission & Optimization