Making Money Online, Realistically

Written: December 17, 2009

Just How Easy Is It To Get Rich Online?

You’ve seen the ads. Free and easy websites. Set up your own website tonight in 5 minutes for free!

Is anyone listening? You bet! In fact, if you’re planning to grab your nugget in the online gold rush, that’s part of your problem.

If you have stumbled on this article while looking for a couple of quick secrets to getting rich on the Internet, you’d best jump to the next website.

Keep reading if you are serious about making some money online and are prepared to be realistic. Warning: No quick secrets in here!

Successful Businesses: Fact One

If you’ve ever run a successful business of any kind, one thing you know is this: Successful businesses require real investments of real planning, real work, real time and real money.

Internet Businesses: Fact One

When I was in business school, my professors often discussed the concept of Supply And Demand, and for good reason. In a free and open marketplace, when supply outpaces demand, the marketplace adjusts. Prices go down. Weaker businesses struggle and close.

What does this have to do with making money online? Quite a bit. The Internet is a free and open marketplace.

Barriers To Entry… Or Not

Another popular business school discussion is Barriers To Entry. Here’s the idea: When it costs almost nothing to open a business (think cheap websites), competition can get thick quick… okay, thick quickly. My point? If anybody can launch a website, they will. That’s a lot of competition. Making money gets increasingly harder as competition increases. Once your business is established, low to non-existent Barriers To Entry are no longer your friend.

A Viable Business Model

Every successful business has a viable business model — a plan for how the business is going to make money. There are countless effective business models. But all share a common thread: They were not an accident. Rather, a good business model requires thought, research, analysis and strategy. This is not a five minute exercise.

Tough To Sell What Others Give Away

Let’s look at one business model that is often seen online: selling information. Purchase this e-book or buy this online course. You’ve seen the offers. In addition to the Supply And Demand issue and the Barriers To Entry problem, another thorny obstacle on your path to riches awaits when you choose this business model : It is tough to sell what others are giving away. To succeed, you must establish yourself as an expert in your field. You’ll also need skillfully crafted, persuasive copy to sell what others are giving away. Can you make money this way? Perhaps. But it won’t be a five minute exercise.

Competition, Competition, Competition

Do you have any idea how many new websites are launched daily? I don’t. But I’m sure it is a big number. How about blogging? Can you make money writing a blog? Maybe. But be sure to check out the number of well written blogs you’ll be competing against. And don’t forget the business model. Even if you attract a loyal following, how will you convert that to a revenue stream? Don’t expect to get rich selling advertising on your blog. Affiliate marketing may offer some promise, but finding the right products to endorse will require research. Writing great blog posts and acquiring faithful readers will require skill, effort, plenty of time and a commitment to post regularly. Can you make money blogging? Perhaps. But it won’t be a five minute exercise.

The Fundamental Things Apply

As Sam (Dooley Wilson) reminds me each time I watch Casablanca…

You must remember this,
A kiss is just a kiss, a sigh is just a sigh,
The fundamental things apply
As time goes by.

Perhaps in 1995 you could have created and launched a website tonight and made some fast cash tomorrow. Making money online in the 21rst century requires many of the fundamentals that drive all successful businesses.

The Secret To Making Money Online: Revisited

I didn’t write this article to discourage you from launching a website. I earn my living designing, developing and optimizing websites. But I thought you might want to know that making money online requires a good business model, plenty of thought, time and energy, as well as hard work. And unless you’re a skilled marketer, web designer, web developer AND copywriter, your chances of success will rise exponentially if you’re willing to purchase high quality services to cover these online essentials.

You CAN make money online if you approach your business realistically and take the time to think and research before you develop and implement a plan. Be honest with yourself. What are your strengths? What are your weaknesses? How will you capitalize on your strengths? How will you compensate for your weaknesses? If these questions are new to you, research “SWOT” — (strengths, weaknesses, opportunities, threats).

One more thing: Be flexible and keep your eyes and ears open. The most successful businesses never stop observing and adapting. Good luck!

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