The Real Deal When It Comes To Making Money Online

Posted by David Thackeray 17 October, 2009

Millions of people worldwide are haunted by the idea of having some website which makes money off the Internet automatically. However, most people don’t realize that a cash generating website must be treated like a business. As such, there are a myriad of factors which ultimately affect your success.

First and foremost, you need a product to sell. It would be very difficult to start a business of any kind with no products to offer. Imagine for a moment that you are starting a restaurant and you bought the tables, the oven, a brand new refrigerator, spent thousands of dollars decorating the place and on opening day you realize that you forgot to create a menu! In other words, you have everything in place, except the product.

On the Internet, you can sometimes get away with your website’s content as a product. Of course, this really depends on how much and how good your content is. Profiting from content alone is a totally different story. Most scam make money online opportunities will sell systems promising to deliver huge rewards via advertising or affiliate commission revenues.

Let’s assume your content site renders 15K page views per day. This is actually a huge number in terms of traffic. Your ad network will generally report about 5-10% of your logged traffic. This means that your 15K page views are now only around 1K according to your ad provider. At $2 CPM (Cost per thousand impressions), your website is only making between $0.50 and $5.00 per day. Ask any webmaster to verify.

The math changes slightly if your site depends on affiliate commissions. A generous 1.0% CTR click ratio from your site could be sending around 200 people over to your affiliate websites. These affiliate programs will usually inflate their conversion ratios, but in reality 1 in 200 or worse are most likely. So, your super high traffic website is only producing about ONE affiliate commission per day.

You’re just not going to make money by relying on advertising or affiliate commissions unless you find a way to get millions of visitors per day.

Every money making website that states:

* Newly discovered, never revealed marketing secrets

* You don’t have to sell anything

* Nothing to do

* Fully automated

Is most definitely a scam!

How can you really make money from the web?

I’m not going to recommend that you start up a blog site or put together a $99 PDF e-book. Don’t get me wrong, I have nothing against blog sites or e-books, so let me explain. If you start a stand alone blog or put up a single web page promoting some e-book, it will take an enormous amount of effort to make the website profitable.

On the other hand, let’s say you create a special widget and a website to promote this product. Now, a blog to supplement your website and promote your product would be in order and fully recommended. Additionally, you could also sell an e-book on how to maximize your widget’s full potential. See the difference?

To make money online you need to invent something, and then promote it!

David Thackeray is the President and CEO of Software V2 Corporation. Give your income and instant boost at CrazyDinero.com or go to HotAnnals.com to find this and many other interesting articles. Both are Software V2 Corporation websites. Please visit SoftwareV2.com for more information.

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