How Money Is Being Made On the Internet
You are most welcome to this wonderful blog that teaches ways to make money in an undiluted methods.
You see, in this article, I want to expose you to how money changes from a particular person to the other on the internet and the cause of this wonderful phenomenon.
Let me make you understand this fact that, for you to get paid, someone needs to purchase, fill form or click, something at the other end. You don’t really need to make the purchase happen on your website but some how a transaction need to take place somewhere to complete the funnel.
You have to place yourself in the traffic funnel so as to make money online. Then, how are you going to do that?
The first thing you must understand is that, What makes people buy things on the internet and what is causing them to make that buying decision.
If you have purchase something online before, come to think of it, what made you to make that buying decision to purchase that thing you bought? You will see that majority of people buying online are purchasing such goods because they thought the value of the stuff delivered in their estimation is greater than the amount of money they actually paid for.
You will deduce that the most important thing here is “Value”. What does this really mean?
Online Shoppers can be divided into so many groups. They buy for many different reasons but at the end they all need that feeling of satisfaction.
Buyers are usually people who:
– Are desperate and need a solution to their problem
– Look for “how to” information
– Need services (hosting, autoresponder services, advertising etc)
– Need tools to save time so they can focus on running their business
– Buy stuff they just really want to have (physical products)
The quickest way to start making sales online is to focus on desperate buyers. They usually buy instantly because they need a solution right there and then.
For example, folks who want to lose weight are desperate most of them time. That’s why the weight loss industry is a multi-billion dollar market. Why do you think weight loss supplements, workout tools, video courses, and ebooks sell so well in this market? It’s because the people searching for them are desperate to lose weight as quickly as possible.
Another good example is the “make money” niche.
Who doesn’t need more money these days? People are desperate to make more money. Most of them just want something that can make them $100-$200 per day that’s why they fall for online money making scams and false promises.
But the market is there and it keeps getting bigger. As long as there are people who need to make money fast there will be marketers who sell the dream to them. That doesn’t mean that there no legitimate products online. If you browse through this website, you will see proven and tested products display at left side of the site. There are also legitimate courses too with real useful information on how to make money but those systems usually require little effort that people are not willing to put in. They need the solution right now, I mean instantly, highly impatience, you see my point?
Creating Value In the Marketplace
In today’s economy it usually takes a lot of work to create something of value. Most people who get into internet marketing fail because they are not willing to put in the time and effort required to become a success story.
Also, it costs money to create things. Content is not cheap unless you got the time to write it yourself. If you want to sell a software product you need to hire a coder. If you want to sell anything you need a website and a way to process payments and that usually costs some money too.
You need to realize that to make real money online you need to treat it like a real business and dedicate some time to it, energy, and money to make it happen.
But do you really need to create value to make a living online? The real answer is…No. You just need to place yourself somewhere in the sales funnel by adding a bit more value to an existing sales process.
Don’t Reinvent The Wheel
A very vital mistakes I see people make online is that, majority start by inventing something new which they believe nobody has ever done before or which nobody has ever sold before or thought of, this will only bring a big barrier or an obstacle to your route to making money online. The truth is that the successful marketers online use a concept that they already knew was working for others and just implement it.
That’s exactly what you should be doing when just starting out on a limited budget. Listen to this, you should observe what’s working for others and model it so you can grab your piece of the pie.
Let me give you an example. If you browse around and see a lot of similar ads or even the same ads showing up constantly over a long period of time it usually means that whoever is paying for that advertising is making money, right? They wouldn’t be just throwing money out the window and pay for traffic that is not generating revenue.
If you spot ads like that you should follow them and check out their sales funnel, landing page, product being sold, how it’s sold etc.
When you start paying attention to online advertising you can easily spot interesting business models that you have never noticed before.
The Power Of Arbitrage
The entire economy is based on arbitrage. If you want to sell something you got to make sure that the cost of the product is lower than the cost of acquiring a customer. That’s basically it in the nutshell.
A lot of eBay sellers do exactly that. They buy stuff cheaper on Craigslist or from yard sales then turn around and sell it on Ebay at higher prices.
Let me give you another example. If you can outsource content writing for less money than what your customers are paying you to write it you got a hands-free income source. It’s a lot easier said than done but that’s how it works.
There are a lot of outsourcing companies that focus on nothing else but content writing.
Or let’s just say that you want to promote an affiliate offer that pays $50 per sale. If you can get traffic to your site and make at least 2 sales before spending $50 on ads you can simply sit back and watch money roll in into your bank account 24/7 on complete autopilot.
It used to be a lot easier 5-6 years ago but people still make it work through Google Adwords program, so look into that if you got a decent budget to invest.
Anywhere you look you see arbitrage in action. It’s all about lower costs and good ROI (Return On Investment).
Some companies do nothing but traffic arbitrage. For example, company A places ads on a website that belongs to company B. Company B then drives paid traffic to their website but at lower cost than what company A is paying for their ads to show.
As you can see there are tons of ways to generate income online if you know how money changes hands and why.
You just need to open your eyes and start asking yourself questions like: Why is this ad showing here? How are they making money? Why are they giving away this for free? Etc.
Remember, nothing is free out there especially if it’s advertised as “free”. Someone somewhere is getting paid if you clicked on an ad, downloaded something, filled out a form, or even if you just loaded a page (some advertisers pay for impressions).
I hope you have a better idea now of how money flows on the web. In the next article I am going to go over another very important component of the money making puzzle, so stick around this website.
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