Showing posts with label Personal Finance. Show all posts
Showing posts with label Personal Finance. Show all posts

Friday, May 16, 2008

The Secret To Internet Success

How many times have you seen the sales pitch that someone has unlocked the secret to internet success? Probably more than once. Now for a fee, they want to share the secret with you. Why? To get your money, of course and in order to get your money back, you can share the same secret with others. Consider how many people now have that secret and you can begin to wonder how many people are left in the dark.


In reality, there is no secret to achieving internet success. It takes hard work and a complete understanding of how making money on the internet works. It begins by having a product or service that people want or need and ware willing to pay for it and continues with how you get the word out that you have it for sale. Prior to the explosion of internet use, it was called advertising and for all intents and purposes, the same methods used then are used today to make sales.


The internet however has made it possible for people to sell things without actually delivering what you have paid for and too many people fall into the trap. No person of reasonable intelligence will send someone money expecting nothing in return, but there are some folks who will send out money hoping they get something back. When it does not happen, they chalk it up to experience and look for something else. If you are that type of person, there are a lot of people in the world who would be willing to sell you a bridge or two. Don't worry. You can get your money back be reselling the bridge to someone else.


If that sounds far fetched, consider some of the offers you have received in your in box. You can spend a lot of time reading the email and then click on to their website and read some more, never really knowing exactly what you will receive when you send in your money. After you pay the fee, you may receive an instant download explaining how you too, can convince others to send you money. You then send out the same email selling others the exact same information.


Very similar to sending a self-address stamped envelope and a couple of dollars to learn how to make money stuffing envelopes. You receive instructions on how to place the same advertisement inviting others to send you a couple of buck in a self-addressed stamped envelope so you can send them the same information. And the offers continue to be advertised, but few complain because after all it was only a couple of bucks.


The real secret to making money on the internet is there is no secret. It is done the same way as it has been done for centuries. Delivering on promises of goods or services and treating your customers with the respect they deserve will provide an income whether online or off line. Goods and services sell far better than promises.

Tuesday, May 6, 2008

Turn Income Streams into a Raging River

Illustration of the concept of affiliate marketingImage via Wikipedia

One of the key catch phrases of internet income is income stream. The term describes the origination of income for an online company or an individual working numerous online jobs, none of which will probably pay all of their bills. Unlike traditional jobs where the employee works in one place for several years, and has only one income stream, their paycheck, a person working multiple part-time positions on line may have as many as 100 different income streams flowing into their bank account.


Consider that many online companies use affiliate marketing as an income, with perhaps a dozen or more online companies having advertisements on their website. When one of these companies makes a sale to a customer referred by the site, the site owner receives a sales commission. Each affiliated company on the website is capable of generating an income stream for that website. If the site owner has a highly popular site that is attractive to advertisers, they may add another income stream in the form of advertising revenue.


The problem with affiliate marketing income is that it is seldom consistent. Different companies offer different types of merchandise and services for sale and if the offerings do not meet the needs or wants of the site's visitors, there is little chance of sales being made. The site owners will need to monitor the production of every affiliated ad on their site and only include the most revenue-producing companies in the mix.


The types of ads used on the website can also affect the customer response. While some customers may respond well to bright, colorful flashy advertisements others may prefer simple text based ads. Depending on the product being promoted the visitor demographic to the site, the ads need to focus on their interests in order to be effective at producing an income stream.


A business that has several income streams is often a new budgeting nightmare for the new home business owner. They may have spent years knowing which day of the week their paycheck was going to arrive and how much it was going to be worth. With several different streams of money arriving at different times of the week or month, many of these owners have a tough time budgeting their income. Their income level may be the same as their prior job, or even higher through their online business, but instead of having a lump sum arriving on Friday, it may be split into four unequal payments arriving on four different days of the week. If they do properly plan for this shift in income, they will have no trouble budgeting their income streams to last until the next stream flows by.


It is also important not to count on only one or two income streams to meet the financial needs of the online business. If there are only two streams feeding to business account and one of those streams begins to run slower or dries up, the owner will be scrambling to find replacement cash. However, having as many income streams as can be efficiently managed flowing in; the owner can easily survive one or more streams being dammed on their way to their income river.