How To Make Money Online
It doesn’t seem that long ago that I was sitting at my desk, staring at my computer, wondering “How in the heck am I going to make money online?”. I had just closed up shop to my indoor flea market (Flea Mart), and I was now trying to start something with low overhead. Trust me. Having to pay $36,000 a month before you make dollar one is not fun.
But the problem is I needed something that would pay the bills and fast, and I was still licking my wounds from my spectacular business failure.
Now this wasn’t the beginning of my failures… no sir. This was one among many.
Maybe you can relate to this story. So here it goes..
I was about 14 years old and I see Carlton Sheets for the first time on TV. He starts the whole pitch about how you can make millions of dollars with creative real estate. After watching this infomercial probably a hundred times throughout high school, I finally bought the course, reviewed it another hundred times, and convince myself that I was going to be a…
Creative Real Estate Mogul
Fast forward 9 years later. I am just getting out of the U.S. Navy, and I decide to start my first company (Illinois Home Solutions, Inc.). My path to real estate fortunes was “lease options”, which basically is a strategy that allows you to buy property with no money down, and then resell it for a quick profit and have a monthly residual income. Looks real good on paper, but didn’t workout to well in 2003 when the real estate market was booming (but works like a champ right now).
To make a long story short after four months of cold calling all the for sale properties in the weekly paper, and meeting with over 100 potential sellers. I threw in the towel.
Around this time I read a great book called… “Multiple Streams of Income by Robert Allen“. In this book Robert talks about a great business opportunity, known as…
…and references a company called USANA.
I immediately went out and sign up under Robert Allen’s USANA downline. Not only did I max out my credit cards to join the uber-platinum, super-duper USANA Associate package, but I proceeded to waste every evening for the next six months cold calling people to join USANA.
Plus strain the relationships of any family member, friend, or neighbor who joins under me.
Again… I threw in the towel. Multi-level marketing was not for me.
But I wasn’t through just yet. Maybe I just needed to start something local. Something that is easy to understand.
I know… “I’ll start an Indoor Flea Market!”… wait not just one but a whole chain of indoor flea market’s known as Flea Mart.
You don’t have to tell me how brilliant of an idea it was. I was there
So that brings us back to my…
Most Spectacular Business Failure
While I was riding my flea market to the ground. I was reading everything I could on marketing to try and save my business.
Time after time I kept coming back to the internet.
In 2004, things weren’t nearly as developed as they are now. But the opportunity was apparent.
By the time I really understood the full power of the internet, it was already too late to save my business.
But today, I want to give you the shortcut I never had.
Even after deciding my next business would be online… it took a very long time for me to finally wrap my tiny little brain around what it really takes to make money online.
There are so many “gurus”, so many “tactics” floating around the web that it can make you go mad at times.
That’s Until I Discovered The Formula
The one formula that no matter what business you are in, if you focus on this one formula you will make money. Period.
In fact, it’s so simple I don’t want you to be fooled by it’s simplicity. Because if you forget everything else, and just do this, you are going to see dramatic things happen to your bank account.
I know it’s easy to get distracted by all the glitz and glam that come with the latest marketing tactics, or traffic trick, but trust me.
All that stuff changes overtime. What I am about to teach you…
WILL NEVER CHANGE
Here it is. (Write this down.)
TRAFFIC + LEADS + OFFERS = MONEY
And if you want to make it even simpler… Here is the formula ANY business in the world uses to make money.
LEADS + OFFERS = MONEY
Now I know I will get tons of push back saying there is more to it. But I promise you. THIS IS IT!
Here’s a better way to think about this.
I want you to imagine that you are looking in the hood of a 1969 Chevrolet Camaro. This is my favorite car in the world, but let’s not get distracted. Take a look at the engine.
You see all that chrome, special covers, fancy hoses, etc…
None of this makes the car run faster.
It’s the big a** engine block with large pistons that have the impact on if the car drives fast or not. Not the shinny stuff.
Now think of LEADS as your fuel and OFFERS as your pistons.
Now you can have really big pistons (lots of offers), but if you have no leads, you go nowhere.
Also, you can have a full tank of gas (lots of leads), but without offers, you go nowhere.
But the moment you combine the right LEADS with the right OFFERS, you hear the engine fire up and roar as the profits come rolling in.
Want to go faster? Just pour in more leads.
Let’s take this a step further.
The engine block itself is your business model. Which means not every part in the world is going to bolt onto your engine.
Now the next time you hear about the latest shinny marketing tactics, ask yourself this. “Does this fit on my profit engine?”
The truth is, not every business needs to be on twitter, not every business needs even a sales letter.
It depends on the business model. But what every business needs is LEADS and OFFERS. Tattoo this to your forehead backwards.
Here’s How To Make Money Online
1. Traffic – We need to get as many eyeballs as we can to our various web properties. Online this is called traffic. The goal is to create as many paths as possible to get people to land on our pages. Traffic is mistaken as the life blood of an internet business, but they are wrong. It’s…
2. Leads – The name of the game is getting more leads into the funnel. How much traffic you are getting is irrelevant if you aren’t capturing the leads you aren’t building a business. How do we “capture” leads?
Simple. You give people a reason to give you their contact information. This can come in a number of flavors, but we’ll get to that in a moment. The final part of the formula is…
3. Offers – This is the final component, and dare I say the most critical to you making lot’s of moohla. Now an offer is not a product or service. An offer is the deal. It’s how you structure the way you sell a product or service. Once you have leads coming in, your job as a business owner is to create more offers to give your prospect more opportunities to buy. I will break this down in a moment but first let’s look at the…
The 5 Ways To Make Money Online
1. Contextual Advertising – This is probably the simplest way to make money online. How it works is you basically get paid for displaying ads beside content you have on your website. Typically you are paid per click, which is very attractive since it’s a lot easier to get a click than a sale. But this is also the lowest ROI you will get on your traffic. I call this the bottom of the barrel. Typically you are a traffic broker and not using the magic formula to build a business. If you are interested in this method check out Google AdSense.
2. Subscriptions – Subscription based services are the holy grail of making money online, and for good reason. They provide the closest thing you will find to residual income. A subscription based product or service can be either a piece of software, a membership site, or a service provided on a monthly basis. Typically much harder to sell than anything else, but also the most lucrative when everything is dialed in.
3. Affiliate Marketing – A brilliant way to make money online because you don’t need a product, you don’t have to deal with customer service, product fulfillment, or have any experience setting up the sales process. This is what draws a big majority of people online. It appears easy and lucrative. I personally only use affiliate marketing as a supplement to my main businesses, and not the business itself.
4. Advertising – Selling advertising space is probably how most people envision making money online. It’s easy to understand and very similar to the old school advertising mediums like TV and Radio. You have an audience of web visitors and you simple sell ad space based on the number of eyeballs viewing the ads. Typically done on a CPM or Cost Per Thousand basis.
5. Products & Services – The final way to make money online is, in my opinion, the best way, but it’s not for everyone. Creating and selling your own products and services at the end of the day is going to be the most lucrative and long term way to make a living via the internet. It simply eliminates so much of the uncertainty from the other methods and allows you to maximize the formula I shared. Although I know it’s intimidating when you first get started, the sooner you dip your toe in the water, the sooner you will get used to the idea.
But let’s talk about the two components to any business. First we have…
A lead is nothing more than the contact information of someone that has raised their hand saying “Hey, I’m interested in this stuff.”. That’s a lead.
But how do we get them?
There are several ways, and some ways work better than others. But for the most part we are giving them something of value that they want in return for their contact info. This could be a free report, access to a membership section on a website, free video, etc.
But once we have their contact information, and this could be their physical mailing address, phone number, or email address. We need to create a dialogue about the stuff they are interested in (now this is an art all on it’s own that we will have to visit later). But once we have this dialogue, it’s time to make…
“Strong copy will not overcome a weak offer… but… in many cases, a strong offer will succeed in spite of weak copy written by marketing morons! Also, what you have to say is enormously more important that how you say it.” ~ Sir Gary Halbert
This quote is one of favorites from Gary, and let me tell you it’s completely true. Your focus needs to shift from a copywriting focus to an offer focus. If the offer sucks, it is going to take an amazing amount of salesmanship to overcome it.
But if the offer is irresistible, then it almost sells itself.
So what the heck is an offer exactly?
The simplest way to put it. It’s the structure of the deal.
Don’t mistake an offer for a product. One product can have many offers.
Have you ever driven by a furniture store that was going bankrupt? Then next week they are still there in business.
What they are doing is using a bankruptcy as a hook for a new offer.
Offers come in many shapes and sizes. Here are a few:
- Retail – Now this is probably the most basic offer. This is just the price you sell your product or services for typically. Nothing fancy, just the asking price.
- Sales – Of course you know what a sale is, but maybe until now you didn’t know that this is just another offer. The reason businesses all over the world hold sales, is because they work plain and simple.
- Coupons – Similar to a sale, but it has a physical aspect that must be redeemed. A very, very effective offer strategy is coupons. Probably the most underrated offer strategy, but my personal favorite.
- Payment Plans – Payment plans are a great way to get your product and services to another segment of the marketplace. If you are offering something over $200, payment plans can really open the doors to new business. Split the retail into two or three payments, and you just made yourself another offer… see how easy this is
- Bonuses – Because everyone loves free stuff. If you don’t want to sacrifice on the retail price, then you can add more and more value with bonuses to get the offer to the irresistable point.
- Limited Time Offers – One of the most powerful mechanisms to a successful offer is scarcity. We all want what others can’t have. It’s wired into us to value something that is scarce. By limiting your products and service by either quantity or time available you will ultimately double or even quadruple the results.
- One Time Offers – Just as they say. This is an offer presented “One-Time”. Meaning they have to sh** or get off the pot. With these offers you can give a really amazing deal, but they have to take it or leave it. That’s what makes it “One-Time”.
Of course you can combine any of the above into a new offer. Get creative, there are lots of possibilities.
Now I am sure I missed something, but what I want you to focus on is that it’s the deal. Not the product.
When I say you need more offers, you need to make more deals. Give your leads a reason to give you money. Got it? Good
So now you have what it takes to make money online, but before I close I want to show you how to make more money online.
Here is the formula.
More Content + More Offers = More $$
Once you have mastered the basics. Here is how you can grow your business.
I believe it’s all about focus, and if you want to make more money. Here is the two things you need to focus on.
1. Create More Epic Content – Now, I am not saying any old content. The days of crappy garbage content getting results is over. You now need to be worthy of the traffic, leads, and sales. Meaning you have to put a little heart into your business. You can’t just throw mud up against the wall and hope it sticks.
Create EPIC content, more often. Period.
If you do this, then you will get more traffic, more leads, and build better relationships.
2. Create More Irresistable Offers – Dust off your old products that have been selling at retail for months or years, and create some new offers. There are so many ways you can sell your goods without ticking off previous customers while opening the doors to new customers. A big chunk of your time should be spent on crafting new offers. This is what makes you money, remember that.
I know this was a long one, but I hope this really clears up what it takes to make money online. Focus on this formula, and you will see results. We’ve built our engine, now we can supercharge it with other pieces that bolt on. Maybe it’s a better converting optin pages, or a better sales presentation.
But the basic formula remains. Leads + Offers = Money. Now go get some!
By the way, I am working on a book right now that I think you’re going to love. It’s been in the making for sometime, but it will show you a business model that doesn’t take a ton of leads, but can make a lot of profits. Be on the look out.