How-To Cash In on the Internet Bandwagon
Every now and again, a big deal will go through, and people
who have never seriously considered an internet business,
start thinking about their own online business.
The Google – YouTube deal is just one such deal.
Chad Hurley and Steve Chen started YouTube “in their
garage” – likely in their living room office
– but a “garage start-up” sounds so cool.
Hurley and Chen started their website only 20 months before
Google bought it for $1.65 billion. That is $825 million
each for 20 months work, or $41.25 million dollars each for
every month they were in operation!
All of us dream the big dream, but then reality sets in.
Few of us can look forward to earning $40 million per
month. While you can probably count the people who have on
two hands, there are still thousands more people who have
managed to turn their online business into a million dollar
a year business.
Most people who start an online business might dream of
making one million per year, but most would be happy just
to earn enough to leave their day job behind them. Some
would even be happy to earn just enough to pay their car
payment or to save for their kid’s college tuition
fees. All are worthy goals, and the good news is that all
are within the reach of most people who strive to reach
them.
Learning How To Play The Game
As with any great endeavor in life, there is a process one
must follow in order to be successful.
The first step is learning how to play the game.
The beauty of starting an online business is that the
internet is driven by information. If you have a desire to
learn about something, then you will find someone on the
internet who is willing to teach you about the topic you
wish to learn. You can literally find information available
on any topic, some of it free and some of it available for
a small fee.
Online Business Structures
There are four primary business structures on the internet:
1. Product Sales
2. Service Sales
3. Membership Websites
4. Advertising Platforms
Product sales include both hard goods and digital items.
Examples of hard goods include food, clothing, car parts,
books and music. Examples of digital items include
electronic books and software.
Within these four primary platforms, there are several ways
to accomplish each business process. For example, with a
Product Sales driven website, you can opt to use: a direct
sales website, an online auction system, or an affiliate
sales format. With Service sales, you can use the direct
sales website or the affiliate sales format.
Affiliate sales systems are akin to Reseller sales systems.
There really is one difference between an affiliate sales
system and a reseller program.
With an affiliate program, you will direct the buyer to the
seller’s real website – through a special
tracking URL that is only available to you – to make
their actual purchase, and you as the affiliate will be
paid on a monthly schedule for the sales that you have
generated.
With the reseller program, the source company will remain
hidden in the background. You will make the sale, collect
the money from the buyer, and then you will process the
sale through a private access point on the seller’s
website.
The concept behind the membership program is that people
will rent access to a private area of your website.
The most well known advertising platform of course is the
search engine. They make their money when someone else buys
advertising. Other such sites include news or general
information websites.
While the big boys make up the immediately recognizable
websites based on the advertising platform, many small
publishers are making a good living by providing
advertising driven websites.
Low-Cost Entry Point
Forget going out and renting an office for $900 per month.
Forget about having to set up utilities in your home and at
your office. This is another one of the beauties of an
online business. You really do not need to have a costly
storefront in order to go into business for yourself.
If you go the online auction route, you will not need to
have a website at all. But you may need the extra room in
your house or in your garage to handle storage of the
product you will be selling, unless you go the
drop-shipping route.
The idea behind a drop-shipper is that you can register
with a wholesaler. Then you can sell single-piece items to
your customers, and process the order through the
wholesaler in the same way you would through a reseller
program. When you buy the product from the wholesaler, you
will give them the direct shipping address of your
customer, and the wholesaler will put your shipping label
on the package. When your customer receives the product, by
all appearances, that product will have come from your
warehouse. To find drop-shippers who serve your choice
product lines, you should sign up for a lifetime membership
at World Wide Brands for their drop-shipper locator
service: http://www.worldwidebrands.com/
In any other business model, you should seriously consider
registering your own domain name, even if you intend to
utilize the affiliate sales systems. The costs of pursuing
this route are minimal. You can expect to spend $20-30
buying ownership of your own domain name for one year, and
you can generally get a web hosting account (where you
actually manage and store your domain) for anywhere from
$30-50 per month.
Low Knowledge Threshold
Many web-hosting companies offer a HTML editing tool within
their domain management interface that lets you build and
design your website’s pages.
The beauty of these HTML editing tools is that you do not
have to know how to build actual webpages. You simply type
what you want into the editing interface, highlight what
you want to put in bold print, and then click a little
button that converts your highlighted text to bold print.
The same processes apply for links to other webpages, and a
wide variety of text formatting options. It is so easy,
even a caveman could do it.
Mix-and-Match For Best Results
The lowest-cost systems for your first website is between
the advertising platform, and product and service sales
through affiliate programs. The best benefit for each of
these three options is that you will not need to build your
own online payment systems. That is a real advantage when
you are just starting to get your feet wet.
For advertising systems, many people today utilize the
Google Adsense system to put paid advertising on their
website. To get involved using Google Adsense, you simply
need to get your website approved by the Google staff, and
then you copy a piece of code they give you and put that
code into your webpages. You can generally get
Google’s approval in three to five days. And then,
once you apply Google’s code to your webpage, you
will be able to get paid for advertising on your website
immediately.
Affiliate programs work in the same way. You get registered
with the affiliate’s website, and then they will give
you a small piece of code that you can copy-and-paste and
put directly into your website. Once again, you could be
earning money from your visitors beginning the same day you
put the affiliate code on your website.
My best advice is to not rely on only one system for making
money.
Google Adsense pays you every time someone clicks an
advertisement on your website (don’t do this
yourself, or Google will terminate your account with them).
Because Google is paying you for traffic that you send to
their advertisers, you will only get paid based on a
percentage of what Google collects from their client for
that visitor. In some cases, we are talking about pennies
per visitor.
With affiliate programs, you could literally make $2 or
$200 for one sale.
I believe that if you are getting into an internet business
on the advertising platform, you should not rely only on
Google Adsense, nor should you rely only on your affiliate
programs. But together, both systems on your website could
provide a significant income for you.
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