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Hey guys! Ellyssa here with Limelight Websites at LimelightWebsites.com
Today is all about the 4 realistic and proven ways to make money online as well as the jaw-droppingly easy money-making formulas for each one.
How established businesses can use this article
If you own a brick and mortar business, I suggest that you read this article and then read The 5-Step Process To Move Your Brick And Mortar Business Online.
If you’re a creative (photographer, cinematographer, artist, etc.), I suggest that you read this article and then read The 4-Step Process For Creatives To Establish An Online Platform.
How beginners can use this article
There are no pre-requisites for implementing the knowledge of this article.
Not only is this a breakdown of the only proven and realistic ways to make money online, but this is also a breakdown of how to turbocharge your monthly online income by using a proven formula that works with any online business model.
The 4 realistic ways to make money online
If you’re asking yourself, “What is the fastest way to make $1000?” this is NOT the article for you.
That question can be answered in a different article. This article gives you a good foundation for what you need BEFORE you ask yourself that question.
So, here are the cold, hard facts:
- There are only 4 realistic ways to make money online
- There is only 1 formula that you need for a master money-making plan
- Apply that 1 formula to one of the 4 realistic ways to make money online…and you are ready to plan out the rest of your roadmap.
What are the 4 realistic ways to make money online?
I’ll list them here for quick reference. But we’ll dive deep into how to apply each method to the formula that’s coming up soon.
- A content-based business that’s monetized through advertising (affiliate marketing, Cost Per Click, Cost Per Action, etc.) – we’ll talk about this more soon!
- A service-based business (writing, SEO, coaching, etc.)
- An eCommerce business with physical products
- Selling your own digital products (digital courses, online memberships, etc.)
Read that list again.
You probably already have a rough idea of which path you want to start out with.
Maybe you already imagined yourself extending your local business online…
Maybe you’ve daydreamed about starting an addictive online membership program like Netflix but for your own niche…
Maybe you’re a family therapist or photographer who wants to reach a wider audience and allowing your clients to book time with you through a website…
Get a rough idea of which path you can imagine yourself starting on (I repeat: STARTING on) and then continue onto the next section.
Tape this fool-proof formula to your bathroom mirror
Ready for the formula? Here it is…
If you want to make $AMOUNT per month, you need (___customers) x ($AMOUNT per sale)
Too simple? Too confusing? No worries.
We’ll dive into some examples very soon. But for now…
DO THIS RIGHT NOW: Tape this fool-proof formula to your bathroom mirror so that you see it every day.
Go on…I’ll wait. (It takes 90 seconds to write down! Don’t be shy.)
Did you at least write it down on a
Look at it in the morning.
Look at it in the evening.
And yeah, look at it whenever you poop during the day.
Make sure to tape it high enough so your cat doesn’t scratch it up.
The big takeaway from this formula is that every single internet business can be broken down into “reverse math”.
Ready for some examples of what this formula looks like for each of the 4 online business models that we just talked about?
Content-based online businesses
What is a content-based online business?
Put simply, you would make high-quality, search engine optimized videos, articles, or other engaging media. This is called “content marketing”.
In each piece of content, you can…
- promote advertisements that MANY people need to view for you to earn money
- promote advertisements or offers that people need to interact with for you to earn money
- promote another business’s products or services as an affiliate for you to earn a commission of the sales
How to make money with content marketing
Do you want to make $10,000 per month by filming videos, recording podcasts, or writing articles? Let’s do the math…
Example: You find an advertising offer that allows you to make $1 PER CLICK. This is a “Pay Per Click” advertisement offer. (Nice!)
That means that you need 10,000 clicks per month to make $10,000 per month.
Here’s the part that no one tells you about: you’re going to need 1,000,000 visitors per month
WHAT?!?! Let me explain…
Most people who view your advertisements will NOT click on it. (Remember, you are being paid PER CLICK.)
In fact, expect less than 2% of people to click on your advertisement (this is called the “Click Through Rate”).
So, let’s go with a safe number. If you have 1% of your website visitors clicking on the advertisement, you will need 1,000,000 visitors per month to make $10,000.
%1 of 1,000,000 visitors is 10,000 visitors who click the advertisement. Since you would get paid $1 per click, you would get $10,000 if you can get 10,000 to physically click the ad.
Does that make sense? If 1,000,000 website visitors sounds way too daunting to you right now. Hold on. You’re going to love this…
Here’s another example: You find an advertising offer that allows you to make $10 for each person who signs up for a free trial giveaway. This is a “Pay Per Action” advertisement offer. (Sweet!)
This means that you need 1,000 people to sign up for that free trial giveaway to earn $10,000.
Not bad, right? But remember…
If only 1% (1,000) of your visitors actually sign up for that free trial giveaway, you’ll need 100,000 website visitors. That’s way less than 1,000,000!
If content marketing plus advertising is the method that you are considering, know that it’s very possible to attract 100,000 visitors per month!
Use this formula when you are looking for good advertisement offers. You want to make sure that you strategically place advertisements that…
- offer a fair Pay Per Click or Pay Per Action amount
- don’t look ugly (you want people to actually click on them!)
- offer something that your website audience would genuinely be interested in (again, you actually want people to interact with the ads!)
Alright, but what about a content-based online business that uses affiliate marketing?
Here’s an example: You find a product or service that gives you $100 per sale. (Amazing!)
This means that you only need to find 100 people who will buy that product or service. Then, you will earn $10,000 (100 sales * $100 commission = $10,000).
If only 1% of your website visitors actually purchase the product or service, then you only need 10,000 visitors to make 100 sales and $10,000 from that offer.
The BEST part about using advertisements and affiliate marketing is that NONE of the products are your own. You don’t have to worry about shipping, customer service, or any of that other stuff.
Here are my tips for content-based businesses:
- Find offers that give you a fair payout
- Find offers that your website visitors will actually be interested in so that they actually interact with the advertisement or affiliate offer
- Find offers that actually work. If you promote products that are scams, your fan base will fizzle out and your website will not get the visitors it needs to make you money.
- Make your own landing pages for Pay Per Action advertisements and affiliate offers so that you don’t have to rely on the pre-made ugly ones that turn your visitors away.
- Find affiliate offers with longer tracking cookies – this is the amount of time that it gives your website visitors to purchase the affiliate product or service (30 days or longer is ideal)
So, what if you don’t want a content-based online business?
Service-based online businesses
Are you a writer? An SEO (search engine optimization) expert? A licensed therapist? A cinematographer who loves to teach?
There are many services that you can offer to people all around the world. Let’s go over some service-based ideas to make money plus an earnings breakdown.
So, you want to make $10,000 offering services to people on the internet.
If you’re a freelance writer and you make a $2 profit for each article that you write, then you would need 5,000 articles.
This means that you could have 500 customers ordering a 10 article package per month. Or, you could have 100 customers ordering a 50 article package per month.
That’s how the math works, but know that you should take time to figure out a pricing model that works for you and your business.
Maybe you’re a small SEO agency that wants to earn $10,000 per month. If you charge each client $1,000 per month for a 6-month SEO contract, then you would only need 10 customers to earn $10,000 each month for 6 months. (Yep, SEO is a very competitive but profitable industry!)
Are you getting the hang of the math now?
Something that’s noteworthy of service-based business models is that most of the time, your profits are residual income. By that, I mean that you have to take away all of the labor costs, time costs, and tool costs to make a profit.
That being said, don’t undervalue your expertise!
Your time is valuable. Your industry expertise is valuable. Your knowledge and organization around the industry tools are valuable.
You are a package deal in your service-based online business. Don’t undercharge for your services.
Again, take this formula and play with the numbers to figure out a suitable pricing model that works for you. Because you have to remember…
Service-based businesses are centered around YOU and YOUR service. It’s all about you, baby.
So take the numbers seriously! They’ll influence how much Nutella you can eat next month!
eCommerce and digital product online businesses
Ecommerce of physical and digital products are broken down in the same way. That’s why I’m going to smoosh them both in this section here.
(Shh…That’s not laziness…)
So, here we are. You want to sell products – physical, digital, or both – and you want to make $10,000 per month.
You could sell 10,000 products at $1 profit per sale. If you are getting a 1% click-through rate, that means you’ll need to get 1,000,000 website visitors in order for 1% (10,000 people) to purchase that product.
You could also sell 1,000 products at $10 profit per sale. If you are getting a 1% click-through rate, that means you’ll need to get 100,000 website visitors in order for 1% (1,000 people) to purchase that product.
Or, you could raise the bar for pricing and sell 100 products at $100 profit per sale. If you are getting a 1% click-through rate, that means you’ll only need to get 10,000 website visitors in order for 1% (100 people) to purchase that product.
If you sell a product that gets you $1,000 profit per sale, then you only need to make 10 sales to earn $10,000. That means that you’ll need to get 1,000 website visitors if only 1% (10 people) will purchase that product.
Is this starting to make sense?
Let’s pull it all together. Keep scrolling to learn about the 3 core competencies that you need to get started with any chosen online business model.
Bringing it all together
First and foremost…TAKE A DEEP BREATH. You just absorbed tons of information. So let’s tie it all together…
This industry can be really overwhelming.
You might feel like the avalanche of new updates, software, tools, and search engine algorithms will drown you and pull you down…
When you get overwhelmed, take a breath (a DEEP one…) and remember:
You don’t have to learn everything. You can learn bits and pieces, organize them, make something valuable out of them, and still deliver something of immense value to your audience.
You only need ONE core competency + traffic to become tremendously profitable. That means that…
For content-based and digital product businesses: you need to get the most money for your traffic AND you need website traffic.
For service-based businesses: you need to get high-quality labor for a low price AND you need website traffic.
For eCommerce/physical product businesses: you need to get high-quality products for a low price AND you need website traffic.
Here’s a little graphic to visualize it better…
Today’s To-Do List
- Choose one of the 4 proven online business models that we talked about today.
- Play with the numbers using the fool-proof formula so that you can make an educated plan on how to move forward.
- Read about How to Create a Money-Making Website From Scratch.
If you own a brick and mortar business, read The 5-Step Process To Move Your Brick And Mortar Business Online.
If you’re a creative (photographer, cinematographer, artist, etc.), read The 4-Step Process For Creatives To Establish An Online Platform.
And that’s all I have for you guys today! Let me know what tasks from the to-do list you were able to complete today. I’m very excited to follow your progress in the online business world.
Talk to you guys soon! 🙂