Wednesday, July 16, 2008

How To Make Money From The Internet

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A guide to the easiest ways of how to make money from the internet armed with a computer and a bank account.

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
and receive commissions on sales.

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 1,000 visitors to your website and a sales conversion rate of 5% so your revenue is $2,450 per month.

Now consider expenses like web hosting at $10 per month and credit-card processing fees of 8% giving costs of $206 per month.

So, in this example your profits are $2,234 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 10% click on a product link. 10% of these people purchase an average of $100 of merchandise. You get paid 5% commission.

So 1000 people click and 100 buy a product and you are paid 5% of $10,000 in commission.

You only have web hosting costs of $10 per month to deduct.

This nets you $490 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.

The affiliate commission on eBooks is generally far higher than physical goods so you can make good money marketing other people's eBook products rather than developing your own.

For physical products, successful affiliate marketers generally create sites that recommend the products such as sport's equipment. If the price of the products is high, you can make good money.

How to Make as Much Money as Possible
Which ever route is taken you need to balance the following factors for maximum profits:

Maximize Visitors

The more people that see your ads, the more will click and buy. Some ways to maximize visitors are:

Add more content and pages to your website
Optimize your website for search engines
Get more links to your website
your URL in Google adwords and pay per click search engines
Advertise your URL offline in classified ads
Maximize Click-throughs
Pre-sell products with reviews, articles and related information then provide links in easy to find places.

Maximize Profit
Adjust the selling price to balance sales volumes at the point where maximum profit is produced.

Minimize 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 e-Books that don't require physical shipping.


. Look for large commission percentages and high conversion rates in affiliate partnerships.

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