I tend to see people asking these questions all the time :
- What’s the easiest way to make money online?
- How can I make money in my spare time outside of my day job?
- How can I get some extra income online?
- Which is the best method to make money online?
To tell you the truth, there is no single way to make money that’s the best out there. All the different methods have their own pros and cons.
Also, it isn’t possible to go into every single method in detail in one post.
So instead I’m going to give you a very simple formula to understand the process of making money online. After reading this posts you’ll be able to get a general idea of how others make money online and possibly brainstorm your own money making system.
This 3 step formula can apply to all money making systems out there, which is why it’s so powerful.
Before we start though, I want to know why you’re motivated to make money online.
Are you looking to :
- quit your job?
- get more freedom and flexibility?
- find more time to spend with your friends and family?
- make a living doing something you love?
The reason I’m asking this is because motivation and dedication is important.
I’m part of a community that teaches people how to make money online and I see new members coming in everyday. I’d say that more than half of these guys quit after a week or so.
They realized that they had to work for it. This is something that I want you to understand. I’m here to help you make money online but you need to have the patience to see it through to the end to make it worth your time.
If you understand what I’m saying, read on.
The 3 Steps to Building Your Own Online Money Making System
These are the 3 Steps :
- Set up your money maker
- Set up your traffic stream
- Analyze your performance and optimize
Step 1 – What’s actually going to make you your money?
If we look at how other people are making their money, it always boils down to a certain action that you want others to complete.
- A YouTuber makes his/her money when their viewers watch an ad placed on their video.
- Someone who was their own online store makes money when a customer buys something from their store.
- An affiliate marketer makes money when someone clicks on their affiliate link and buys something.
Needless to say, if you’re going to set up an online business, you’d need something that makes you money as well.
Imagine if the YouTuber just posted videos without any ads, he wouldn’t be making any money no matter how many views he/she gets.
So the first step of your money making system is to decide how you want to make your money. What is the exact action that you want others to take to earn you that cha-ching.
The most popular money makers are definitely affiliate links or just selling products.
Step 2 – How are you going to get people to complete this action?
Now that you have an idea of how you want to make your money, you’re going to need a plan to make it work.
More often than not, this involves getting traffic ( visitors ).
Just think about it.
- Want to sell a product? Need customers.
- Want to promote an affiliate link? Need customers.
- Want to make money off Adsense? Need views.
So, step 2 is mainly about getting your offer out there and there are 2 ways to do this – free traffic or paid traffic.
- Social Media Traffic
- Google Search Traffic
- Traffic from forums
Although you can get leads and customers for free, there is a downside. Free traffic methods in general will take a long time to implement because most of the time it requires you to have a certain authority or following.
What do I mean by this?
Imagine you want to get traffic from Facebook to your online e-commerce store that sells cooking utensils. This is only realistic if you have a huge following of people who are actually interested in cooking in the first place.
If you don’t, you’d have to start gaining relevant followers and this will definitely take time.
Pay attention, the keyword here is relevant. If you’re selling cooking utensils you want people who are interested in cooking to follow you, you don’t want just anyone out there because if they aren’t interested there is no point in promoting anything to them from your store.
- Solo ads
- Social Media ads
- Search Engine ads
These are some general examples but there are a lot more places out there where you can pay to get views and visitors.
Obviously the main benefit of using paid traffic is that you’ll get your traffic almost instantly. Also, you can configure your ads to target only relevant people so that you’ll get the most out of your ad campaign.
What does this mean?
Imagine if that online store of yours is selling the newest frying pan in the market and each time you manage to sell 1 of it you make $10 in net profit.
This means that your aim is to make at least 1 sale for every $10 you spend in ads to break even.
Now what if you’re making 1 sale for every $9 you spend on your ads?
That’s a $1 profit overall right?
This means that you can constantly pump money in your ad campaign because you know you’ll make more money out in the long run.
This however is easier said than done. Chances are you’ll need to tweak your targeting several times before you can hit a home run.
Which also means that you’ll be wasting money on your initial failed campaigns, the campaigns that end up losing money.
The potential is definitely there though and paid traffic is one of the fastest ways to make money online.
Step 3 – Don’t stop once you’re making money !
One very important metric that people look at is conversion rate, which basically means the percentage of people who convert or complete the action you want them to.
You see, if you’ve set up a system that’s already making you money, it might be tempted to just leave it as it is.
The problem though is that your system won’t be optimized.
If you tweak your system a little, you might see higher conversion rates, which means more money for you.
This is why it is so important to analyze your stats.
- How many people are converting?
- How many people are leaving and why?
- How long do they spend browsing your offers?
There is no reason to be lazy and skip the analysis because there are just so many tools available online that makes the process really simple.
After you’ve studied the data you’ll have a better idea of how to optimize your system to make more money.