How to earn money from your website
Ok so with this post maybe I’m skipping the complex stuff like how to pick the right market and getting traffic in the first place, but I wanted to show a few different monetisation methods that can be used for almost any type of site. It’s also important to show the end result of all the research and promotion and that there is a path to cash down the line, after all the goal as my site implies is to create an income online that’s both legitimate and passive. So before I list the different “schemes” I have to point out that how much you can earn will greatly depend on the topic of your website and the amount of traffic you’re getting. Often people will understand amount of traffic concept but completely forget the topic part and wonder why their 1000 visitors aren’t generating any profits. With that being said here they are:
Google adsense
Probably the biggest advertising platform online and the one most people have heard of. Adsense is mostly suited to sites with big traffic and also a wide range of topics as it seems to adapt really well to different visitors and content. Essentially Google tries to show the most relevant advertisement to that visitor so in theory they are more likely to click on it if it’s what they are looking for.
Advantages: No problems with getting paid (its Google after all) and easy setup, it’s just one piece of code. As mentioned it can be really good for large sites with lots of different types of content.
Disadvantages: Google take a pretty big percentage cut of your earnings, around 40%. Prices per click can vary wildly, everywhere between 5p and £5 that I have seen, so it can be hard to judge how much you’re going to make.
Company affiliate programs
Essentially these are just affiliate programs setup by online retailers and businesses to provide you with a commission on whatever sales you generate. For example if you had a weightlifting site you might sign up to a fitness stores affiliate program and integrate their banners and links onto your site. Nearly all will be on a pay per sale basis, i.e. you won’t get paid per clicks but it will always be free to sign up and try them out. You can either find them in a network link commission junction, tradedoubler or just go to their site and see if they have a program.
Advantages: Commissions can be pretty high depending on the store and if you do generate good sales most likely they will give you a bump in your commission. If you can find a company that provides exactly the product/service your visitors are looking for then conversion rates and sales can be really high.
Disadvantages: Payments can on occasion be a problem since you may be dealing with a small company. The most important thing is to build up a relationship with them over time so you know what to expect from them and vice versa. Also it can be pretty time consuming finding the ideal company to work with, a lot depends on their site and how well it converts customers into sales, if there’s a flaw here then it won’t matter what traffic you send them.
Sell advertising on your site
This method of making money from your blog can take many forms but mostly it’s about advertisers coming to you because you have a popular site and they know you have the traffic, I’ve never seen it work when you go out hunting for advertisers. It can range from selling banners on your site to ordinary links but the main principle is that they pay for the advert on a fix cost basis, i.e. you don’t get less or more money depending on how much business you deliver for them.
Advantages: You’re not required to deliver a certain amount of clicks or sales to the advertisers so it’s pretty worry free. Also as mentioned in most cases the advertisers are going to come to you (if you have a big site) so there’s not much work in that respect either, it’s as close to easy money as it gets with internet marketing.
Disadvantages: Who wants to wait around for people to make offers on your site? I’d rather be out there making my own deals. Prices for adverts vary greatly and you’re going to have to negotiate for the best deal. Also bear in mind Google has a policy against selling links for seo purposes on your site so you have to take that into consideration.
Sell your site
This is the only one I haven’t done I have to admit because I see it as a bit of a catch 22. IE if a sites making money every month why would you want to sell it? Similarly if your site doesn’t earn money why would anyone want to buy it? I do know people who have sold their sites for good money though, and often it’s to a company who can monetise the traffic much better, i.e. they can now sell their products directly on the site instead of just banner ads/links. You will need to use some kind of broker to negotiate the transfer of both the money and the domain name and they are going to take a cut. Sites like Flippa will allow you to list your site for sale and they also help negotiate the transfer (I think)
Advantages: Can be big money if you get the right company who really wants the site. Leaves you free to work on new sites after you sell.
Disadvantages: Working out a price can be difficult, some people use 15 – 18 months of revenue as a marker for final value but there’s no definite rule. You lose your monthly pay check. Broker is going to take a cut. Also by listing your site on places like flippa or eBay you’re going to get a lot of fake bidders, much easier if the seller comes to you first and you work from there.
So those are the main ways to make money from your site that I know of. Again as I said at the start so much depends on the site you have and the market you’re in. However I have to say that if you have a site that ranks and gets targeted traffic then you’re going to earn money with it some way or another, i.e. even if you do nothing people are going to mail you offering deals. I suppose this is why I spend most of my time building up my sites in the first place and worrying about the money aspect of it later.
Are you gambling or making money?
You might not be aware but as I write this the US government is seizing some of the top online poker domains because they were illegally trading in the US. I think you’re not allowed to gamble in America unless it’s in Vegas (probably because they can’t tax it online). The reason I’m mentioning this is that for a long time many people saw playing poker on the internet as a realistic way to earn money online. I never did I have to mention, and not just because I’m terrible at poker but because 99% of people will never be good enough to make a living from it. The problem was that many people were selling poker playing as a legit way to make money from home, almost like it was a job lol. Again I’m not saying it doesn’t work for some people but if it does its because:
- Often these players have to play 100s of games to carve out a profit, even if you’re a great poker player you still only have a slight advantage. You have to maximise that advantage over 1000s of hands.
- They practice for years to actually get good at the game. All those eBooks that say you can beat the pros with 2 weeks training are lying.
You see to me given the above a much better investment of my time would be to create something worthwhile that attracts visitors and customers. Also I don’t want a living that can be wiped out by some government at the drop of a hat, what would you do if your main income source disappeared overnight?
But how do you create something that has value, especially on the internet where everything seems to have been done before? As I’ve mentioned a few times the online world has never been about being completely original as some of the best businesses just made better versions of existing ideas. What I’m talking about most though in terms of value is content, because ultimately content is what decides how successful a website is (and how rich you get). I forget how many times I’ve arrived at some ecommerce site that has technical stats on their products but no opinions/reviews/insights on why I should buy their product, its lazy marketing and it makes my head hurt.
So what content does actually “sell” online? Well for a start people really love product videos because they illustrate what you’re selling in a dynamic way. If a picture tells a thousand words then a video is probably a million. But what if your selling a service instead, I.e. yourself? Ok so if you’re trying to explain some business process then put it into an info-graphic with lots of nice colours/arrows/cartoon characters to explain what it is you do. The attention span of people online is about half of other types of media, get to the point of what you do and give them a chance to buy it. Webmasters seem to get stuck in this rut of overselling things, people just want the basics of what it does and trust that you’re going to get it to them.
As you can tell I’m still on the creating websites bandwagon because I think it’s one of the easiest ways for someone new to create an income online. But not only that, to me owning a website is like owning a property, it’s an actual assent and not some scheme like filling out surveys or trying to learn poker. The problem occurs when you ask people to make an investment of time and money into something like building a site, trying to win against a casino is more appealing! Still I know a lot of people who are getting into internet marketing these days with various rates of success, I’ve never said that it was easy.
So back to my original point about creating content that sells, there are 4 points that you want to stick too:
- All content on your site must be original and created by yourself, don’t outsource unless you really know what you’re doing.
- Different markets need different types of information, for instance my blog is mostly about information so it makes sense I have a lot of text. But if you’re selling RC helicopters then you need some videos up there.
- Find the right tone for your content, yes if you’re a solicitor then you can’t be too jokey but for most other general sites a casual tone is better.
- Give people some way to talk about your content and even make content for you. Allowing comments and reviews is great for involving people or take it a step further and create a forum. It does need managing as you have to delete any spam that gets though (which is inevitable) but the value you get in interaction with your customers is invaluable.
Ok so this post is getting a little long, I know some of you are just thinking when is this guy going to shut up and tell me an easy way to create and income fast! I suppose I could make something up and sell you some concept that’s never going to work, but what’s the point in that? There’s enough junk online already without me adding to it, then again did I mention I’ve just worked out a way to beat the roulette wheel?
What the “gurus” aren’t telling you about making money
So I feel a rant coming on. I only have myself to blame though as for some reason I can’t stop reading 100s of different SEO blogs, it comes with the territory of being interested in something I suppose. Don’t get me wrong there’s lots of “interesting” content out there when it comes to internet marketing but there’s so much fluff too that you gotta wade through html for days before you find that nugget of useful info.
So anyway I was reading this post today at seo-theory.com where Michael essentially says people are way too hyped up about link-building. I don’t necessarily disagree with this to a point especially when it comes to some of the useless link-building techniques I see around the net today. However he then drops the bomb that he only spends around 10% – 15% of his time link building at also that uber googlar Matt Cuts says links are only 1% of the algorithm. I mean seriously, go spend 10-15% of your time building links for “car insurance” with the rest on your “site architecture” and get back to me. I probably won’t see you in the top 1000.
This is by no means the first time I’ve seen a post like this on a SEO blog but it’s still weird every time I read this stuff. The only explanation I can come up with is people are trying to setup pre-made excuses for clients about the more difficult aspects of SEO.
“Link building is very 2005”
Still as I’ve said before there can only be one guy at No1 making money on every search and for the rest there’s a million excuses. When it comes down to it there’s really only one thing that matters and that’s if you’re making money from your site or not, everything else is just technical nonsense. Part of the problem of course is the inherent nature of internet marketing when it comes to making a living as few people really get the concept of earning money online and how much work it actually takes to get off the ground. Indeed the delay search engines impose on new sites is probably one of the most off putting things for new people that most don’t make it past the first month.
People often ask me what the keys to a successful website are and it’s really one of those impossible questions to answer just because every site and more importantly every market is different. For instance if you are an online store selling physical goods your margins are very different than someone setting up a blog and selling advertising to make money. The problem is that even though people are developing wildly different sites “Gurus” are handing out this universal advice as a one size fits all solution. I’m hoping not to get into any of that rubbish here on the blog and will try to be as specific as possible (even when I don’t have a clue what I’m talking about sometimes!).
This brings me on to another point with the Internet marketing Gurus, all the terrible products and books they sell. Don’t get me wrong not all the money making ideas they “sell” are scams but I’d say about 95% are. They are quite easy to spot though, if they promise the world within 24hours of purchase then you know what to expect and only have yourself to blame. With that being said though I have bought 2 very good IM products this year which have saved/made me quite a bit of money, however I did have to waste a lot of cash on other useless stuff before I found them. Now I’m not actually going to say what they are here, first because I don’t promote other peoples products here (yet) and second because unless you understand the basic principles website promotion they really aren’t going to work for you anyway. It’s probably one of the biggest problems with the make money on the web industry, they are selling these advanced programs to newbie’s because all the advanced people have already bought it (there’s not that many advanced people). I will say though its v exciting when you finally find a program/system that allows you to save days or even weeks of work. Notice how I define the value as saved time and not direct money because at the heart of this thing is work and the time to do it. The work will always be required but the processes can be streamlined, improved and sometimes even outsourced.
So the question remains, how do you know if the latest money making scheme you are reading about actually works? Well you don’t but for a start it should never be a scheme and it should always be founded on principles that you do understand. For instance if you do understand how article marketing works in relation to your website promotion then a tool that helps you speed that up a few hundred percent is obviously going to in-directly increase your income. However if the “system” is another mysterious promise and only talks about the money you can make how likely is it to be legit?
So anyway this post started out as a rant about one guys “seo theory” and ended up in the more general area of internet gurus, are they the same people? The thing is being able to sort the good information from the bad is the fundamental principle of learning in general and not just this internet business stuff. If I had to give advice to someone just starting out in the online world I would say start small with different techniques and see what works. Also you need to understand the general principles of what’s happening in any marketing situation in order to suss out whether a new opportunity is the real deal or not. Blind faith is only going to get you so far my friends.
So that rant lasted a bit longer than I expected but still it’s nice to let of some steam in html form. Until next time…
