How to Make Money on the Internet

Posted by teraikachung | cellphone treasure-02-z | Thursday 11 March 2010 8:58 pm

Effective promotion of affiliate programs can undoubtedly produce great financial returns, but most people never see these kinds of returns because they never figure out how to effectively promote their affiliate programs. In order to start earning regular affiliate commissions you must have a system that works and be willing to consistently apply it. Though not exhaustive,this article will give you a guide as to how you may effectively promote your business and ultimately gain more sales.

Article writing is a great cost-effective way of reaching your targeted market. By writing quality articles and submitting them to the various article directories, you can gain enormous exposure for your offers. People will come across your article in the article directories themselves, but it's when website owners and ezine publishers pick up your article that you can really reach a massive target audience as they may publish it to their list. Their readers may inturn put your articles on their websites. This is powerful free advertising for you.You need to make sure however that the articles contain your resource box where you may link to your affiliate products. Article writing and syndication may be one of your most powerful tools. If you don't like to write you may hire someone to do it for you but you must find a way to do it.

Press releases are also extremely effective but probably under used. They are similar to articles in that they provide a quick and easy way of reaching a large target audience. They can best be used when you have something newsworthy to say about either your own site or the actual products you are promoting. All you do is write the press release in a journalistic style and submit it to online or offline press agencies. There are also companies that will actually write articles and press releases for you and submit them if you don't know how. You have no excuse not to use this method.

Pay Per Click Advertising is is a highly effective way of promoting your affiliate programs, either directly, or by using your own website to pre-sell the visitor. It gives you the ability to advertise on the first few pages of results of the search engines for the exact keywords that you choose. You have to keep testing as much as possible and try to maximize your advertising dollars. If not done correctly you may end up losing a lot of money. Try not to bid too high and target the words and phrases that have less competition. You should also use keyword research tools like those at overture.com.

Search Engine Optimization is thought by many to be the holy grail of online advertising, but it is extremely time-consuming, and it can take many months before you start to see any results. Nevertheless, if you can take time to optimize your website, and gain a lot of backlinks to your site using relevant keywords you can receive a lot of traffic to your website when you start to obtain high search engine rankings.

Forums are one the most effective ways of marketing your affiliate programs if done correctly. By posting in relevant forums that allow sig files (where you can link to your own affiliate site, or directly to the product you are promoting if this is allowed) you can reach a targeted audience quickly and easily. As long as you post constructive comments, then you should see plenty of people clicking on your sig files to learn more about you, and the products you are promoting. Don't openly advertise as this will be seen as spam and your membership will be terminated.

You can buy advertising space or text links from numerous websites in all types of niches, so there's plenty of opportunity to advertise your offers on other websites. The only downside is that it can be tricky finding websites that will give you a positive return on your investment, but if you can do this then there's definitely good profits to be made.

Writing viral free reports and ebooks provide an excellent opportunity to reach a large target audience. All you do is write your own content based around the product you are promoting, and include your affiliate links within this content. If your information is of a high quality, you can get massive exposure for your affiliate links as people pass it on to other people, and share it with their list of subscribers if they have one. This is a complete no brainer and the results are rewarding if you have a quality product. You may also give away software which have a viral component to it. Furthermore always use these free gifts as a way to increase the size of your opt-in list.

Promotional blogs are an extremely effective way of promoting your affiliate programs. Blogs often contain fresh content on an ongoing basis and as such they are loved by the major search engines, and can therefore attract high levels of traffic. Post regularly and this will drive traffic to your site at no cost to you.

Email Marketing is a form of advertising that has become more difficult due to problems with spamming. Solo ads and classified ads sent out to a large targeted ezine membership may however be effective. For best results, however, you should aim to build your own list of subscribers so you can send out your emails whenever you want, and can actually build a relationship with your list, which will increase your affiliate sales.

One of the newest forms of advertising that is still in its infancy is the use of videos on sites such as Google Video, You Tube, My Space and also the use of Squido. There is a lot of potential here and the competition is not as great. This is the time to utilize this method.

Many online marketers ignore offline advertising completely. Business cards, flyers, magazine and newspaper advertising are some of the ways you can effectively promote products offline. This method is still effective and may sometimes outperform online advertising. It is however important to test all your campaigns to get the best return on investment.

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How Can I Make Money Online

Posted by teraikachung | cellphone treasure-02-z | Thursday 11 March 2010 8:58 pm

Do you want to know how to make money from affiliate marketing? What do you need to make money selling other people's stuff? How can I achieve success as an affiliate marketer within the shortest possible time?

All affiliate marketers have played around with these thoughts, if they want to earn big money. Affiliate marketing has been branded as one of the easiest ways to make money on line however, it is not as easy as it sounds.

Strategy and planning are essential, followed by action. Tools are available to enable the wise affiliate to make a lot of money.

The top three essential tools, each successful affiliate should have are listed below:

1. A website of your own
2. Motivation
3. Link popularity

Tool 1: A website

Owning a website is a must. All affiliate marketers must have one. Build a good and professional looking website. A site that inspires trust and confidence. This is the take-off point to all your marketing strategies.

The website must be user-friendly – make it easy to follow. This in itself will attract more customers and encourage more clicks on your links and hopefully more purchases. Concentrate all your efforts into making a website that will satisfy all or almost all the requirements of your intended customers. Remember that most people surf the web in order to garner information before purchasing anything.

Your website must be crammed with useful, informative and original material. Everybody enjoys articles that are attractive and full of information. The value of content in the internet world has top priority and good quality articles help to build your credibility and achieve higher page ranking. The high quality of your articles will quickly establish you as an authority in the field and your prospective clients will have more trust in whatever you are promoting. You can only build a loyal consumer base by first building a good reputation for yourself.

Tool 2: Motivation

There are many rivals in the Internet and competition is fierce. Try to be one step ahead of your competitors if you want a good share of the market. Use every possible means to encourage people to visit your site and to proceed to your affiliate websites. Having an email address list of possible customers is essential. Try to build one through an opt-in box on your home page. Offering a free report, newsletter or product will encourage visitors to part with their email address. Convincing prospective customers to subscribe to your newsletter is best. Remember that any incentive you offer to your prospects must be relevant to your field and helpful to them.

Tool 3: Link Popularity

Web traffic is the most important consideration of high-ranking entities in affiliate marketing. Implementing ways to attract traffic to your site should be your foremost consideration. Try to achieve a high PR (page ranking) with the most important search engines, like Google and Yahoo. Search engines use link popularity as one of the leading factors to determine the page rankings

A reciprocal link campaign will increase your link popularity. A free way to do this is by submitting articles to free article directories. Each of your articles must carry a link to your website in the author's resource box at the end of the article.

A Google search for article directories will bring up hundreds of them. In this way you gain exposure for free and drive organic traffic to your site. Strive to submit your articles to as many directories as possible as this will have a direct effect on your link popularity. If your articles have original and useful content, more websites and blogs will pick it up and post it.

The tools mentioned here are but a few of the many that an affiliate marketer can use. Most of them are free so you can make money without money. By all means explore other ways and adapt any strategies that you find useful. Forums are a very good resource and newsletters and blogs will prove to be a hive of free information and tactics.

There are many possibilities – none are easy to accomplish – all need commitment and determination. Your only limit is your imagination and resourcefulness.

Article by Mario R. Schembri. If you liked this article, you'll love the free content at http://homebusinessaire.com/blog

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Earn Money Online Forum

Posted by teraikachung | cellphone treasure-02-z | Thursday 11 March 2010 8:58 pm

I recently tried out Steven Wagenheim's Honest Income Program, a multi-ebook package and step-by-step guide to making money online. I've been in the business of writing content for AC and elsewhere for some time, but had, at the time, been looking into affiliate marketing and learning the best practices, so I took a chance with his book. Was it worthwhile?

Yes and no. The Honest Income Program is a collection of three inter-related programs that do, on their own, work quite well. If you have no idea about making money on the internet, this is a good, albeit expensive, way to begin. For anyone with any experience, however, this book is redundant and probably not worth your time.

He starts out by giving the reader information on programs that do not work, including a large number of scams and programs that promise big earnings, but never pay out. He follows that up with a bit of information that seems quite irrelevant to the rest of the book, including a guide to the kinds of things that a business owner must have. Why a person who receives payment only through Clickbank and Paypal, and has no actual products being shipped from their home needs a P.O. Box escapes me.

The guide then goes on to mention the first money-making opportunity he recommends: writing articles. While I'll agree that this is one of the number one ways to make money online these days, the cat is out of the bag on this method. Millions of people are already involved with producing content all around the world, although I have to admit, the author does a good job of covering a large number of sites that I had never heard of before. He recommends one program over all the others, but in my experience, this is one of the lower paying sites to write for, and provides higher minimum requirements before articles are accepted. It should also be noted that in order to make the amount of money that he claims is possible with this method, you need to be writing about 17 articles a week, or nearly 3 per day.

Related to business opportunity number one is a book that explains how to write a paint-by-numbers article for people who feel that writing is beyond them. I'm not so sure that people who are unexcited about writing in general are going to be interested in formulating their articles in this method, and it also doesn't help people for whom English is a second language, the number one reason I can see people being uninterested in taking advantage of his program.

His second business opportunity deals with the field of affiliate marketing, and again, Wagenheim does a fine job of explaining how to start with this process, and even includes a few good side books about maximizing the amount of money that you can make with pay-per-click advertising. This is the meat of his main volume, and probably the most helpful of all of the sections, although because of the mass of sales that he has made off of his book, there are hundreds of people using the exact same affiliate program, and therefore, selling the same products as you will be. Because he mentions only one major program, you'll need to do some more research and find a different program before you can really get started. There was also very little mention of promotional methods other than the PPC programs. Overall, though, the bulk of this information was new to me, and very well presented, although I can't say that it is good for everyone. You need significant writing and web design skills before you can make any real money with this business.

The third business is almost an extension of the second. It promotes the use (and sale) of a program that is already so well known that even I, who had done only minimal research into online sales and money-making opportunities, had been a member. While Wagenheim, again, is providing excellent information, in an easy-to-follow manner, and is even offering a small bit of free promotion to go along with it, this program that he is using has been promoted to death already.

As for the ebooks that Wagenheim is including on the side, most of them are simply reiterations of the information presented in the basic book. The ones that are not, like the book about how to write articles, don't seem particularly useful, as those who are going to use his business ideas are going to do things on their own, if at all.

All in all, this is a fine book if you have no idea of how to get started on making money online. If you have an idea of a business idea that you want to try out, this book will be of little help, as the programs and businesses that are recommended are very set-in-stone. It's a nice guide because it gives you the step-by-step process, but with the number of sales that this book has had, you need to be incredibly good or incredibly lucky to make money with it.

Merits of the book aside, there is also the mention of the cost. The program costs $29.95 for all of these books, far more than comparable guides like that of the $7 Secret (http://www.7dollarsecrets.com/), the Green-Machine Guide to Higher Earnings (www.green-machine.info) at $10, with most of it offered for free, or Bum Marketing Guide (www.bummarketingmethod.com) which is totally free. All of these programs are slightly different, but are more open and flexible, which gives you a better chance to make money. Using Wagenheim's methods only, which is the only way to use his books, you're stuck competing with all of the other buyers on two of the three businesses. While the information on article writing is nice, it's not for everyone, and the majority of people are already aware of how to do that.

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Affiliate Money Online Businesses

Posted by teraikachung | cellphone treasure-02-z | Thursday 11 March 2010 8:58 pm

Introduction

Introduction

I remember as a young teenager watching in awe, as seemingly everyone was becoming a millionaire online. During the Internet boom of the late 1990's almost every day another 13-year-old kid would be featured on the evening news for creating a multimillion-dollar company out of his bedroom. This was the Wild West of the Internet. This great revolutionary time in Internet history gave rise to such names as Yahoo, Google, eBay, Amazon, and a whole host of other big names on the Internet. However, along with these Internet giants, which survive today, there were an even larger number of startup companies, which quickly filled during the dot com collapse at the turn of the century. You had Internet savvy teenagers with little or no business skills starting up Wall Street companies out of their bedrooms.

The hype and speculation for these startup companies were so large that stock market investors in venture capitalists alike could not resist investing in these companies. I still remember an evening news report questioning whether profits were a thing of the past. Most of these companies were taking in large sums of money in venture capital and investments, yet making no profit. Naïve economists spoke of a change in the rules of economics that made profits of thing of the past. Then, just as quickly as it started the party came to a crashing end with the tech heavy NASDAQ taking a tough beating.

I believe that everybody is shaped by the environment and circumstances that they witnessed and dealt with during the teen years of their lives. This volatile speculative environment is what I grew up in. I was already as a teen very interested in current events and politics. I also had a huge interest in economics. I would join stock market clubs in middle and high school to learn all I could about the stock market. While most teens my age were paying attention to the Backstreet Boys and Britney Spears, my attentions focused on what I recognized as a momentous era in human history. I quickly started to understand the significance of what was transpiring. While many older people in my life including my parents saw this Internet revolution as some temporary thing that would not have lasting effects, I knew that in a few years my life would never be the same. Not only did I see the dreams of web designers and developers become multimillion-dollar realities, but I saw the harsh reality of blind speculation. I saw my mother who got into the stock market in hopes of riding the wave; have her entire portfolio wiped out.

Even with all the heartache and loss that I witnessed, I still understood the opportunity that the Internet offered. In this article, I will be revealing knowledge that I have learned over the past seven years on how to start from scratch and build an Internet empire. This is a one of those get-rich-quick books that you buy for $29.99 that simply teaches you how to scam others into buying the same book. What I offer in this article is not some secret that only I know, but knowledge that I have learned over the years either with research or with my own failures. I offer this article free of charge so that anyone can pick it up and start on the road to building his or her own business. I will not be asking you to join some marketing system or other scheme; rather I would like to provide you the tools and resources to get your business off the ground. You should not be under any illusion that starting your online business will not cost you any money. At the end of the day your business is a business. However, this realization does not mean that you should be spending money on marketing schemes.

In this article, I will go through every aspect from concept to implementation, of starting an Internet marketing business. I will also have a chapter devoted to uncovering and exposing scams and schemes that are prevalent throughout the Internet. As an Internet marketer myself, I have no shortage of e-mails and phone calls from people claiming that they have some kind of marketing system or strategy that could net me thousands of dollars a week in just a few days.

I hope that this article will be a resource to help you on your journey to becoming a successful Internet marketer. I am writing this article partially because of the current economic crisis. The current economic crisis has caused people to become desperate. Desperate people are willing to do anything for extra money including throwing away their common sense in the pursuit of riches. If this article could stop even one more person from being scammed, then I have done my job. Even if you are not interested in becoming an Internet marketer, I recommend that you scroll down to the chapter exposing Internet scams so that you can protect yourself with knowledge.

Internet Economics

Many people mistakenly believe that the Internet operates under different economic rules. Even some economies refer to the information age as an age where the normal economic principles no longer apply. Based on my experience I do not believe that this is a case. However, it is this belief that gets some people into hot water when starting an Internet marketing business. The truth is that the same rules apply on the Internet as they do in real world economics. The only difference is that the Internet is faster pace and harder to regulate. The same rules of supply and demand apply along with the same marketing rules. You can perform three business related activities online. You can sell a product or service, advertise somebody else's product or service, or create content. Although these three elements are separate and distinct, they are also undeniably related. And this is true whether or on the Internet or in real world economics.

Economics 101

The entire reason for an economy to exist is to provide products and services to society. Everybody has a certain skill set that makes them better at some things and less effective at doing other things. It is for this reason that we have an economy. Everybody needs food, water, and a roof over their heads. However not everyone knows how to farm, purify water, and build a house. There is also a matter of time. The time that it would take to learn just those three skills would take up most of a person's early life. It is for this reason that we as individuals choose particular skills to learn and master. It becomes a matter of trade. I could focus my studies on learning how to build a home. My neighbor across the street could hone in his skills as a farmer. My uncle down the road could spend his time boiling and purifying the water from the local stream. In exchange for water and food, I am willing to build my uncle's and neighbor's home and barn. In exchange for a home, barn, and water, my neighbor provides food to my uncle and me. My uncle would then provide water in exchange for a home in food.

This being an Internet marketing article, you are probably wondering why I am pointing out such primitive economic principles. The reason I'm pointing this out is because it is very important to understand that these principles have not changed in over 10,000 years. The economic systems at hand may have changed, but the goals themselves stay the same. And I believe that this is essential to understand if you're starting any business. You must understand that you are not in business to make money; rather you are in business to fill a need in society. It is when you understand this that you will be successful at business. Do not get me wrong, I have no problem with making money and am probably the greediest person you will ever meet. However, my greed does not matter if I do not have something to offer. Every person who enters into business must have something to offer society. This may be a product, service, advertisement, or other thing that will benefit others. Without this, nothing else matters.

When applying these principles to Internet marketing you must understand the way the Internet works. Although I mentioned above the three business practices conducted on the Internet, you are not confined to only one of them. You can sell a product while advertising other products. You can also create content, which attracts advertisers to do business with you.

Selling a product

Whenever I speak about selling products or services, I hardly ever speak of them separately. What I mean by this is that I really do not differentiate between a tangible product and a non-tangible service. In the end the product itself does not matter, what matters is the time that is put into it. Whether you're selling a blanket or a cleaning service, you're providing the same thing. The reason you're being hired to clean a person's house is because they do not have the time or do not want to spend the time cleaning their house. The reason someone is buying your quilt is that they do not want to spend the time knitting a blanket themselves. Even if you did not make the blanket yourself, you are still trading in human effort. The reason anyone buys a product or service is to save themselves time and effort. When you go to the local fast food restaurant, you are saving the time that it would take to prepare a home-cooked meal. Every product and service provided in some way represents the time and talents of all who were involved in producing the product or providing the service.

When deciding on a product or service that you will offer there is a lot that you must take into account. The most important aspect of choosing a product or service to offer is yourself. You must understand your talents and abilities thoroughly. Even if it were legal, opening up a doctor's office without going through the proper medical training would not be a good idea. You must understand your abilities and limitations. If it is a product are offering, you must determine whether the product can be provided to your potential customers better than your competition. This is not just about having a lower price. Many people are willing to pay a higher price for a product in exchange for better service. When choosing your product you must look at all aspects of providing that product to market.

I have found that many people starting an Internet marketing business have little or no business experience. This in and of itself is not a big deal. However many who get into Internet marketing; do so without seeking advice or counsel. By advice or counsel, I do not necessarily mean lawyers or other professionals. Rather I mean seeking out information. Whether it is a lawyer providing you that information or some kind of self-help video or book, learning how to be a businessperson is more important than the product you are actually offering. Many people who are new to Internet marketing naïvely believe that all they have to do is set up a website, put up some products, and the customers will come. However, in the real world this is not the case. In the real world, you cannot set up a store and just expect the customers to show up. The same is true when it comes to Internet marketing. You must understand your target audience and understand your competition. If you decide today to start an Internet marketing business, you should not expect to be underway in less than three months. I put out this number as an arbitrary number that is not set in stone. This number is simply a way to make you realize that starting your Internet marketing business should be a process full of planning and preparation. However, I will touch on the planning aspects of starting a business later.

One of the best sites you can use to launch your Internet based business is eBay. EBay has just got in a lot easier and cost-effective for smaller sellers to get started. EBay allows you to list up to five items for free every 30 days. One of the complaints that people have had about eBay in the past is that smaller sellers that were just starting out were having trouble selling their items. Not only could they not sell their items, but also they still were hit with expensive listing fees. EBay has changed their policy to allow small time sellers to place their products for free. Although eBay is best known for people trying to get rid of unused items around the house, many users have turned their eBay stores into highly profitable businesses. One of the ways you can take advantage of a site like eBay is by using drop shipping. Drop shipping allows you to sell a product directly from a warehouse to your customer. All you have to do is provide the shipping information to the warehouse or wholesaler and they ship the product for you. All you have to do is collect payment from the customer and for the cost of the product to the wholesaler. Some eBay users have even taken it to the next level. Some eBay users have partnered directly with manufacturers to be a distributor of their products. EBay offers a unique opportunity regardless of the product you sell. To learn more about in parking on eBay-based business you can check out my article titled “eBay marketing.” In this article I go in depth into what you need to know before starting an eBay-based business.

Advertising

Whether you are selling a product or providing a service, it is almost impossible to succeed without marketing your business. This is through whether you are an Internet marketer or a brick-and-mortar business. Advertising is the key to success. I will touch on network marketing later on in this article. For right now, I would like to explain paid marketing and advertising. There is a wide variety of paid advertising strategies on the Internet. Either you could purchase advertising space directly from a website, or you could use third-party advertising programs such as Google Adwords.

As an advertiser, you can make a good profit off promoting other companies products and services. There is a wide range of strategies and techniques that an advertiser can use to profit off the promotion of products and services. I will go into affiliate programs later on in this article. Right now, I would just like to highlight regular advertising. Depending on the size of your website and daily traffic, their wide range of strategies that you can consider. Although you can sell advertising space directly to companies and websites, when you're first starting out in Internet marketing you will probably not have the traffic necessary to truly profit from such an endeavor. The time and effort involved in seeking direct advertising if you do not have the visitor performance necessary, can be daunting at best. Businesses are propositioned on a daily basis to buy advertising space on a whole host of information mediums. You must understand that you're not just competing with other websites, but that you are also competing with real-world advertising such as newspapers, radio, billboards, and television. There is no shortage of advertising space either on the Internet or in the real world. It is for this reason that expecting to depend on direct sell advertising profits as soon as you start your business is not a good idea.

You must understand that the day that your website goes online will not be like a grand opening at a store. There will not be lines of potential customers and visitors flocking to your store unless you have a marketing budget of a few million dollars. The reality is that for the first few months you will rarely get more than a handful of hits a day. Nobody wants to place ads on your site and pay you money just so that a few people might see their advertising. It is for this precise reason that pay per click advertising is extremely popular with both advertisers and publishers. Companies are attracted to pay per click advertising because it allows a company to pay only for advertising that generates genuine traffic to their sites. These pay per click programs also present an opportunity for publishers who are just starting out. Google Adwords is one half of Google's advertising network. Google has an advertising program called Google Adsense. Google Adsense allows websites to partner with Google and provide pay per click advertising on their site. In exchange for featuring Google advertising on your site, Google will share revenues with you. The best part of this program is that as a fledgling Internet company you are not burdened with the time-consuming task of seeking out sponsors. Google Adwords does the work for you. All you have to do is feature the code that they provide you on your site, and Google will place relevant ads based on your content.

Google Adsense compensation varies based on the type of product being advertised. Companies bid on advertising keywords in an auction style setting. The company that is the highest bidder for keyword will have their ad appear. If your website has to do with insurance, then companies who bid on insurance related keywords will have their ad displayed on your site. Keywords that are more popular will generate the most revenue. Every time somebody shows up to your site and clicks your Google ad, you will earn a commission. The compensation can be anything from one cent to even a few dollars in some cases.

I must point out that the Google Adsense program monitors for fraudulent clicks. Some dubious Internet marketers will try to set up automated click programs or incentive clicks to drive revenues to their website. Google is very strict and has algorithms and programs designed to detect fraudulent activity. Crawlers are sent to monitor websites to insure that the content does not entice people to click their advertising. Also Google monitors with the use of cookies, multiple clicks from the same IP address. If you intend to generate revenue from fraudulent clicks, I have two things to say to you. First, I must tell you that having a mindset like that will get you nowhere in the end. If you believe that you are starting a business with this kind of mindset, you are sorely mistaken. Rather than starting a business, you are scheming to defraud honest businesses were paying for advertising clicks from fake visitors. Second, I like to tell you that no matter how smart you think you are, Google is a multibillion-dollar company with the resources to come up with a countermeasure for any fraudulent scheme you come up with. Do not kid yourself into thinking that you are scheming is a legitimate business. Doing this is no different from sending out fraudulent e-mails and participating in other scams.

Although Google Adsense is not a get-rich-quick program, in the long run you stand to profit a good amount if your website generates enough traffic. I have calculated my Google Adsense revenue to average about $.35 per click. If you are new to Internet marketing and received 500 hits a month with a 5% click through rate, you could expect to receive $8.75 a month in profits. Although this sounds like a mere pittance, by the end of this article you will understand that it is not about the high dollar amounts in one program, but to have multiple streams of income. However, with enough marketing planning you could eventually work up to 500 hits on your website a day. This could easily have you over $250 a month. If you run multiple websites, you could easily draw a paycheck from Google of over $1000 a month.

Although I will go more in-depth into Google marketing system scams, I would like to warn you that there is no magic system to start making $1000 a month with Google Adsense tomorrow. One thing that I will emphasize throughout this article is that nothing can be achieved without hard work. Do not expect it to website and quit your job the next day. I have been working in Internet marketing for the past seven years and still have a regular job. As of yet I still do not feel comparable enough to quit my real-world job. This is not to say that it will take you more than seven years, as everyone's situation is different. A year from now you could be making enough money to quit your job, or you could be working at this for years and never make it. Just like any business, there is no guarantee of success. Anyone that can guarantee you success is fooling you. Moreover, if you do not like hearing that then maybe Internet marketing and starting a business is not for you. As I said before this article is not one of those get-rich-quick articles that you body for X amount of dollars and are told that you could make millions overnight. All I offer here is the cold hard truth about starting your home based business. Many of the recommendations I give in this article can translate to any business.

Content creation

Content is the driving mechanism of the Internet. A large portion of an Internet user's time is spent reading and viewing content that is not directly related to the purchase of the product or service. Some examples are new sites, video sharing sites, and social networks. The Internet has become one of the largest repositories of information in history. In order to be successful on the Internet you must either have a marketing budget to drive customers to your website or create content that will attract viewers or readers. Content creation is undeniably connected with advertisement. A website could never generate income from advertisement without for traffic. Unless you are spending money on advertising yourself, the only way to generate foot traffic is with attractive content. Although some sites and businesses generate an income by creating Web content for their own use and then selling advertising space or pay per click ads, some generate revenue strictly on content creation. However, I must advise you that content creation is not just about throwing up a few articles on your website and waiting for visitors. You must understand the basics of search engine optimization. For more information about creating search engine friendly content you can read my article titled “Search Engine Optimization.”

Content creation as a strategy to make money online can be a challenging proposition. There are several ways you can make money online creating content. The strategy that you use and starting your career as a content creator will depend on what you are looking for in a career. If you're a great writer but not well versed in creating websites you may want to look into working for a freelance writing site. Websites like Elance will out you to perform a wide range of tasks including content creation. Elance matches online employer's with freelance workers to complete tasks. Companies prefer sites like Elance because it can be more cost-effective than hiring permanent employees. Many of these tasks are tasks that can be performed at home. Many websites use Elance to higher individuals to create content for their websites.

If you are a talented writer and write about informative topics, you might want to try Associated Content. Associated Content is a unique opportunity for freelance writers to strike out on their own while still having the support of a large website. Associated Content allows writers to make money up front if their content qualifies. I have been writing for Associated Content for a while now, and usually average $50-$100 a month. As I say with anything this is not a get-rich-quick scheme. You must be a talented writer to have any lasting success on Associated Content. Associated Content compensates their writers to ways. First, you can be compensated up front for an article of 350 words for greater depending on the quality, topic, and relevance of your article. Articles on well covered topics are likely to not receive any upfront payment. Associated Content will not offer an upfront payment for any opinion or editorial piece, fictional work, or other creative works. Although Associated Content allows you to upload video, audio, and pictures, you will not receive any upfront payment for those submissions.

Any content that you submit to Associated Content will also be eligible for what is called performance payments. Associated Content offers its content creators $1.50 per thousand page views for all content submitted. Although the upfront payments offered to help provide immediate income, in the long run your goal should be to create enough of a following for your content so that you can receive a generous passive income from your page views. As your total page views increase, Associated Content will increase your per thousand page view accordingly. The system used by Associated Content is referred to as the content creator's clout. The system is a 1 to 10 rating system. Every content producer starts off with a clout level of one. From clout one through six the page view compensation stays the same. However, once you exceed 50,000 page views for all your content combined your clout level will be seven. At clout level seven you will receive $1.55 per thousand page views. Once you exceed 100,000 page views you will receive $1.60 per thousand page views at clout level eight. At 500,000 page views you will receive a clout level nine payment of $1.75 per thousand page views. The highest level you can achieve is clout level ten. At this level which starts at 1 million page views, you will receive two dollars per thousand page views. Theoretically, if you have achieved a clout level ten you would have been compensated at least $1600 not counting upfront payments.

When Associated Content there a few things you must take into consideration before submitting your content. First Associated Content is extremely strict when it comes to copyright infringement. Make sure that the content you are submitting is your original content that you have full rights to distribute. Copyright infringement is the fastest way for you to get your account suspended permanently. Also, you must determine what your goal will be while submitting content. Will you be looking to achieve consistent upfront payments, or do you plan to produce a large number of content pieces with the aim of generating a large amount of performance payments? I personally prefer to focus on both sides of the compensation plan. Although I do aim at creating a large amount of content, I do also create well-researched content here towards receiving an upfront payment.

Associated Content will pay upfront payments on content that they believe will attract page views. The key to making your article eligible for upfront payment is to balance popularity with uniqueness. Your article's topic must be a popular topic that is likely to draw viewers and readers. However, either the topic that you choose to write about must be a topic that is not well covered, or the perspective you offer on the topic must be unique. Associated Content frowns upon article rewrites. If you intend to submit articles for upfront payment, I would advise you not to simply find an article somewhere else and reworded. This will get you nowhere, and could border on copyright infringement. Being a licensed insurance agent, I chose to use my unique perspective and experience to write insurance related articles. The average payment I receive per article up front was about $3.55. If you received a $3.55 upfront payment, and 5000 page views, you can easily make over $11 for 400 to 1000–page article. Do this every day for one month, and you could have easily made $330 in one month. I will warn you however, that the page views do not just come. It is up to you to promote your articles by linking them to websites that you operate, social networking sites, and by acquiring followers. I do warn you not to spam, as the idea is to build a following of readers. Spamming may get you random readers, but your tactics could turn off potential readers.

If you plan to be writing a lot online, you generally should consider opening up a blogging account. Although there are whole host of blogging websites out there, I highly recommend Blogger. Blogger is a free program provided by Google, which allows you to start up a blog from scratch with little or no programming experience. In mere minutes, you can have your blog up and running. You also have the option of using your own domain name. For more experienced web designers, you can also use HTML files for your blog. Blogger allows you to use your Google Adsense account to monetize your blog. In addition, by allowing you to embed HTML codes into your blog, you can also promote affiliate links and sell advertising space. I do recommend that you purchase your own domain name to attach to your Blogger account, as it will add to your credibility online. If you write for Associated Content, you can also publish your articles on Blogger. On the Associated Content article, all you have to do is provide your username and password for your Blogger account and it will automatically be posted on your blog.

Although written articles make up a vast percentage of online content, you can also be a content creator of video, audio, and interactive Web features. If your passion is making videos, then I suggest that you open up a YouTube account. Associated Content also allows you to post videos, however they're a lot more restrictive than YouTube. YouTube allows select individuals to partner with them and share advertising revenue on the videos they create. I do not advise that you sign-up for the partnership program after uploading a few videos. They will not accept your application unless you're routinely and consistently drawing a few thousand viewers per video. When creating your YouTube account you must determine what your goals are with the account. Is your sole intention to achieve partnership with YouTube, or is your goal to use YouTube to promote other online ventures of yours? This question is very important and will determine how you plan your YouTube channel. If your goal is to achieve partnership status you must create good content that not only will attract viewers, but also compel them to share your video with others. Although this principle also applies if you're using your YouTube account simply as promotion and advertising, it isn't as important. If your goal is simply to promote other online endeavors, then your content should be created in such a way as to keep your audience wanting more. This will compel your viewers to click any links you leave in the sidebar. However, if it is partnership status you are seeking; your goal must be consistent traffic and devoted subscribers. Just as with Associated Content, YouTube is very strict about copyright infringement. If your plans are to achieve partnership status then you must make sure not to use copyright material in your videos.

The marketing triangle

I would like to start by pointing out that the marketing triangle is not some business concept learned in a college course, but an economic theory I have put together myself. Others may illustrate this concept in other ways; this is simply how I illustrate it. The Internet operates under a concept I call the marketing triangle. The diagram below will better illustrate what I am about to explain. An economy, whether web-based or real world, operates by providing a product or service to the masses. Internet surfers are not always searching for specific item to buy, and must be informed about products that could interest them through advertising. Passive Internet users will visit sites rich in Web content. Product or service providers advertise with Web content providers in order to drive customers to their products. Web content allows businesses to target specific audiences, which in turn increase sales. The three parts of the marketing triangle are e-commerce, commercial advertising, and content providers. Each part of the triangle feeds the other, and without all three segments, the Internet as an economy will surely fail. I do not mean to give you a lesson in economics, but to be successful online you must understand this.

Starting Your Business

When starting any small business many entrepreneurs make the mistake of trying to run their business out of their bank account. Just because your business is a home-based business does not mean you should mix your business dealings with personal finances. Before starting your small business, you must do extensive planning and understand what kind of business you will be starting. I do not mean whether it is going to be a cosmetic business or health foods. What I mean is what level of legal regulation to fall under. Are you able to operate as a sole proprietorship, or should you be filing your business as a corporation. There also many legal benefits of being a corporation or limited liability company, depending on the situation and circumstances.

Proper planning

Before you start applying for tax ID numbers and business licenses, you must first create a business plan. Don't make the mistake of either are throwing together a quick business plan, or creating an elaborate business plan that does not work in practice. A business plan must take into account all aspects of your business from your grand opening to your marketing strategies. You must understand your target audience and how you're going to reach them. You must be able to accurately estimate your marketing expenses, supplier costs, and expected revenue. Multilevel marketers and Internet or other affiliate marketers usually make the mistake of not planning their business properly or not understanding that their operations are considered a business. Even if you are an affiliate marketer or Avon salesperson, you should understand that without proper planning and execution your business can easily fail within a few months. Even affiliate marketers should create a business plan, which takes into account income and expenses. Although you may not have a product to sell or keep in stock, your product is the content that you use to attract readers. Your expenditures are Web hosting fees, possible pay per click ads, and even the amount of electricity used by your computer when you're running your business. You must take into account every expense.

Is my business viable?

One of the most common expenses that a small business overlooks is utility expenses. I would like to disclose that the information that I'm up to provide is based on experience, and that I am not a certified accountant. However, the federal government allows you to deduct a portion of your living expenses and utilities if you run a business out of your home. Although you may not think that your business uses a lot of energy, your home-based business may be a large portion of your utility expenses. If you constantly need your a computer on to keep abreast of your businesses situation, your business could be costing you an extra 25 or $50 a month in utilities.

Although you may have a home-based business, there are also travel and other transportation related expenses that you may incur while doing business. Any business seminars, trips to the bank, trips to post flyers on community boards, and any other mileage related to the promotion or execution of your business can be deducted from your taxes, and must be taken into account when creating a business plan. Although you may think of gasoline when speaking of mileage, but the truth is that the cost to drive per mile is more than just how much gas is used. You must also take into account the extra wear and tear on your vehicle. I used to have a business delivering newspapers for a local publisher. The newspaper would pay us as independent contractors. This made me a contractor not an employee. I had to use my own vehicle to deliver the newspapers to the stores. At first glance, the job seemed great. I was paid $300 a week and the profits from any coin based newspaper. After receiving my paycheck and collecting all the money, I usually grossed around $350 a week. I usually spent about $50 a week in gasoline, bought something from the local store that I delivered for to keep myself wake, and used hand warmers on days that were frigid. However, those were not the only expenses.

Many people overlook the cost associated with driving. You may think of the gas used without understanding that there's more to it than that. The weights of the Sunday newspapers were enough to eventually ruin my shocks in the van. Just recently I replaced my water pump. Not to mention my braking system isn't what it used to be. All these little expenses add up after awhile. If driving is not a large part of your business you might not have to consider these expenses, however if you do a lot of driving you may want to consider estimating your driving costs. I'm not necessarily talking about a business dealing with delivery, but any business where you have to drive to meet clients can incur a large amount of driving related expenses. I usually use the number put out by the federal government when it comes to tax-deductible mileage. The federal government recognizes $.45 per mile for business driving expenses. For example, my paper route was about 50 miles round trip. Assuming a $.45 per mile cost, my business had an upfront cost of about $22.50 per day. I delivered seven days a week, so my final driving expenses were about $157.50 per week. You must understand that although this expense does not come out immediately, you will eventually pay for it. Although I paid $50 per week for gasoline, the $107.50 are related to oil changes, possible repairs, and other expenses having to do with the maintenance and upkeep of your vehicle. It is actually a good idea, based on your estimated driving expenses, to put away this amount in savings to pay for any unexpected issues that may arise having to do with your vehicle.

The most important reason for this type of planning is to calculate your viability as a business. For example, if the primary use of your vehicle is to support your business, you must take into account insurance and any payments you may have on the vehicle. You must add up all these expenses along with the driving expenses, to understand whether or not your business is even worth conducting. It is not enough to simply have a business; it will never be viable there is no point in starting. You may either scrap the idea can come up with a new business, or rework your business plan to make it profitable. It is true that many small businesses do not turn a profit in the first year, however you must understand that to be a viable business you must be able to turn a profit at some point in the near future. You must learn not to fall in love with your business. This is not to say that you must not love your business and what you do, but the business itself must not turn into something you're willing to risk your entire financial future for. There are times where you must give up your current business model in pursuit of more efficient and viable model. I'm not telling you to give up. You must simply learn to recognize when it's time to pull back, regroup, and go back on the attack.

Another issue that is usually overlooked by entrepreneurs starting a new business is taxes. There is a wide range of taxes out there that will cut into your profits. Perhaps the largest is income tax. However, I also put licensing fees, registration, and permits on the list of taxes. Any expense that is mandated by the government I consider taxes. Income tax is a tax that I estimate after understanding my profitability. However, motor vehicle registration, use taxes, property taxes, and “doing business as” licensing fees can be accounted as part of your viability plan. It is at this point that you should be researching whether you qualify for tax credits, grants, and other programs, which I call windfall profits. Usually the phrase windfall profit is used negatively. In the case of grants and tax credits, I consider windfall profits to be anything, which lowers your expenses without limiting the actual output of your business. In my case, I experienced a windfall profit during the 2009 recession. It used to cost me about $70 a week for gasoline; however, the plummeting fuel costs brought my gas expenses to around $45. This drop in price gave me a windfall profit of $25 a week. It is a windfall profit because I did not have to do anything or limit the productivity or output of my company in any way.

Business viability is the most important thing to consider when starting a business, and the leading cause of failure within the first 12 months. Many entrepreneurs make the mistake of believing that their status as a small business will attract sympathizers. It is true that there are people who make sure to frequent small businesses and support them, but the reality is that if your company is not viable as a business entity nothing else matters. Your business is not meant to be a charity. People should not have to feel as if they should be supporting you. A truly viable business will attract customers who will gladly spend their money with you not out of an act of charity, but as an active choice because of the product or service you provide them. The business genre that experiences sympathetic customer patronage the most is multilevel marketing. Examples of multilevel marketing are Avon, Mary Kay, Amway, and all of our direct selling business opportunities. Everybody has experience with a relative who comes around once in while pushing their product and begging you to buy. The catalogs pile up, and you don't have the heart to tell them that you're not interested. Finally, after months of begging you place an order simply as a charity. If this is how you expect to run your business, you're doomed to fail before you even started. I'm not telling you that multilevel marketing businesses and network marketing businesses are not viable. However, if you're going to get into a business like Amway or Avon, you must understand that you will never have a long-term viable business if you do not have a solid strategy for attracting customers. Just as with any other business, you cannot simply rely on repeat customers. Repeat customers are important for any business, however if they are not given a chance to recover from their previous purchases they will eventually grow tired of spending money with you. You must always have a fresh flow of new customers to replenish drop-offs and to ease the burden on current customers.

When determining viability of your business you must understand whether you would be able to attract sufficient customers to be able to turn a profit. This is true whether your business has a tangible product or service, or if your business provides some kind of content to your customers. Although blogging website does not have an actual product to sell, the content provided on the blog is your product. The only difference is that your customers do not have to pay for your service. Your service is paid for through advertising. This is not to say that you can't create a blog that charges a membership fee. However, your blog had better have extremely good content if you expect people to pay for something that they could get free somewhere else.

Barely legal

Some may chuckle when reading the title of this section. This is what I call a business that operates without organization. Many sole proprietors operate in this manner. Rather than separating personal and business finances, a sole proprietor will account their income under their Social Security number for tax purposes. Although this is all right if your business borders on being a hobby, even if you just draw $5000-$10,000 annually, it is a good idea for you to turn your business into a legal entity. There are many types of legal entities that your business can fall under. Most small businesses operate as either sole proprietorships, partnerships, or some type of Limited Liability Company or LLC. There are rare occasions where a small business can be a Corporation. The type of business you decide to start will depend on your situation. If you're working alone with a home-based business, a sole proprietorship may be a great option. Obviously if you're in business with somebody else he would most likely create a partnership. If your business provides a product or service without high-level of liability, you may consider creating a limited liability company or LLC. By high level of liability, I mean a business that could possibly face financial liability. For example, if you're creating some kind of food service business it would be a great idea to form an LLC. Limited Liability Companies allow their owners to experience partial immunity during lawsuits, creditor issues, or other liabilities. If you plan to incur large debts during the creation of your business, it may be a good idea to create an LLC. While the personal funds of a sole proprietor may be confiscated to pay off debts, the personal assets of the owner of an LLC experiences greater protection. If you feel that you cannot afford the attorney fees associated with creating an LLC, there is a great website called Legal Zoom, which can repair and submit the necessary legal documents at your specific direction. Legal Zoom costs a fraction of what it would cost to hire an attorney. However, if it's a sole partnership you need, you could easily go from nothing to an up and running business in under $100.

Getting started

There is a prevailing myth that starting and running a business can be a daunting task that many people are just not able to do. I would suspect that this is the main reason why people put off starting a business. However, there are a lot of resources out there on the Internet that can help you start your own business. It doesn't matter whether you have a home-based business selling products, or an Internet-based business; her simple steps you must take in order to ensure that your business is operating legally. Before anything else, you must have an employer identification number. An employer identification number is similar to a Social Security number for your business. An employer identification number is used for tax and permitting purposes. We are all used to using our Social Security number when filling out forms. An employer identification number would be used in its place. You can receive your federal employer identification number by visiting the IRS website. I have also created a video tutorial on how to apply for a federal employer identification number. The federal employee identification number is probably the most important step in starting your business.

What's in a name

After you receive your federal employee identification number, you must go to your local county clerk's office to obtain what is called a “doing business as” license. Regulations vary from state to state, and it is important that you go to your states taxation and finance department website to learn what needs to be done to start a business in your state. Government websites are surprisingly user-friendly and informative. The fees for filing a “doing business as” license also vary from state to state. In New York State a “doing business as” license may cost you $25. It is at this point that you must come up with a name for your business. This is perhaps the hardest part of starting any business. The business name should be unique and tell the customer enough about what your company does so that your company name advertise itself. The name they choose for your company will make or break your business. It is very important to understand the demographics that you are targeting with your business. If you are an Internet based business, then your name should be whatever name you choose for your website. However, with Internet based businesses and many home based businesses, your business name may not be as important. If you plan to run multiple websites, then obviously would not have to register every single website name as a new business. It is a good idea however, to list your business name at the bottom of each website.

Keep it separate

As I said earlier, it is very important to separate your business and personal finances. Doing this will save you a lot of heartache in the long run. One of the first steps in separating your business and personal finances is to open up a business checking account. A bank will not allow you to open up a business checking account without already having an employer identification number and a “doing business as” license. This is why it is very important to first obtain your federal employee identification number and “doing business as” license. I would advise you not to simply run to the nearest bank and opened up a checking account. It is important to shop around from bank to bank in order to find the best account that fits your business. Not all business accounts are the same. Some business accounts will charge a monthly fee of as much as $15. This is all right if you are planning to bring in thousands of dollars a month within the first few months of opening up your business. However, most businesses should not open up a checking account which charges a monthly fee. Matter what you have convinced yourself of, chances are your business will not turn a single dime in profits in your first 12 months. This is a fact that cannot be ignored. It is for this reason that you must learn to minimize the amount of mandated expenses. Some more local banks and credit unions offer completely free business checking. Also, make sure that your business checking account does not have a minimum balance. In my first six months of opening shop, my business checking account at less than $10 in it.

Many people attempt to run their business out of a shoebox or their own personal account. This can be messy and come tax time hard to keep track of profits and losses. With a business account, accounting is as easy as printing out your online statement for the year. Many banks will also help you with accounting and other business aspects. It is also very important not to misuse your company funds. If you plan to draw money from your profits, they should be in the form of scheduled withdrawals similar to income. For example, I draw $200 a week in income for my company. It is important that it's regular rather than sporadic. Any withdrawal should be accounted as an expense and not counted as part of the company's profits. You should not be using your company debit card to go out to eat. If you do find yourself in financial trouble and need to dip into company funds, it is a good idea to count your withdrawal as a loan that could be paid back by withholding your periodic payments until it's paid off. Little steps like this will save you heartache later on when the tax man comes knocking.

Other things to consider

Every state has different requirements for reporting and tax collection. If you're selling a product you may need to file with the state you reside in order to get a license to collect sales tax. Not every state collects sales tax, and every state has different procedures on how taxes are collected and reported. Many network marketing and multilevel marketing companies such as Avon, collects and reports sales tax for you. All you have to do is collect the sales tax and forward it to your sponsor company. Depending on the type of product or service you offer, there may be specialized permits or use taxes involved. It is a good idea to seek professional accounting and legal advice in order to determine what forms your business needs to file. You must also find out whether your home-based business needs any licensing or site inspection. Many home businesses do not need an actual inspection of the home itself, however businesses that take care of children, prepare food, or have any other operations which can affect public health may need some kind of certification. Do not make the mistake of thinking that just because your business make sales exclusively over Internet, that health inspectors might not come around. If you're selling home-baked cookies over the Internet it could be considered a food service business in need of regulation. This is why it is extremely important to consult a lawyer before you start business.

Taking your business online

Now that you understand how the Internet works and have created your business, now it's time to take your business online. Although many small businesses and Internet marketers go the free hosting route, it is my experience that buying a web hosting service will pay dividends in the long run. The reason for this is because with most free web hosting services your domain name must contain the host domain name in it. For example your website would have to be “yourname.hostname.com”. Reputation is everything when it comes to Internet marketing or any other business for that matter. Readers and customers would rather deal with a professionally sounding domain name website than a nonprofessional subdomain. You also have the option with web hosts to register e-mail addresses. So when you're corresponding with prospective clients your e-mail would be you@yoursite.com rather than you@yahoo.com. There are many web hosting services out there, however I do recommend Ipage. Ipage cost roughly $3.50 a month, which works out to about $42 per year. I have used many different web hosts in my time on the Internet, and when it comes to value and service, Ipage has been the best. Ipage allows its customers to pay via PayPal, which is a great feature as a great deal of my business is done through PayPal. Ipage also gives you $50 in free pay per click advertising with both Google and Yahoo. There are also wide range of add-ons and features that Ipage provides its customers including a search engine submission service that will submit your website to a large number of search engines.

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