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Starting Out - Gonna Make a Fortune
Background
This is the first in a series of articles that look at Making Money from the Internet. The articles have been written as a result of my own personal experiences and struggles in trying to build an income based entirely on the internet. I don’t believe that I am any different from the average person and so I hope that my first hand experiences may inspire or at least provide some comfort to those who are starting out or struggling to establish themselves.
The Dream
Like you I had read about all of the internet millionaires, you know the headlines – College Kid Makes Millions. I looked at these guys and couldn’t help thinking that if they can make millions, then I should be able to at least make a decent living from this. You have probably had the same thoughts as I did, it couldn’t be that difficult.
So what was stopping me? Probably the same things that are stopping you! Lack of time, lack of money, lack of knowledge, lack of skill, and so the list goes on. In reality these were just excuses. What I really didn’t have was a good understanding of what I needed to do, and a set of guidelines to follow in order to make the dream come true. Of course time and money help, what I intend to show you, is that you really can have a part time business and that you really can earn a decent living from it, you may even become one of those millionaires that I read about, I hope you do.
Introduction to the Web Business
So what is it all about, where and how can you make money from the Internet? Well, there are many avenues that you can follow and some of the main one will be addressed separately in their own articles. The bottom line is that you earn money from the sale of a product or service. It could be your own product or service, it could be someone else’s or you may be promoting the product or service on behalf of someone else. The scenario can be as simple or complex as you make it and in future articles I will introduce some of the more complex ideas. Let’s start by looking at the simple version to begin with.
You probably don’t want to get involved with the manufacturing of products as this is time consuming and requires raw materials and processes. You probably don’t want to get involved with keeping stock and managing packaging, deliveries and returns, all of which can be a time consuming distraction. So that leaves the advertising and selling part, which is just what the internet does best.
The Simple Business Model
The aim at this early stage is to get a business up and running as fast as possible, with the minimal cost. You can then spend your part time hours adding, building and generally improving the business model in your part-time. There is nothing better than your own genuine operational web business to focus attention. It will also provide a platform on which you can experiment and learn the lessons first hand.
Patience
Don't worry if your first attempt is a bit slow to take off. In fact I would be surprised if it was an instant success. One of the first lessons that I learnt was that the world does not rush to your new site just because you make it visible. I was rather disappointed with my very first effort, which only attracted 2 visits a day for the first week. I was even more disappointed when I realised that these 2 visits were actually me, checking up on the site to see if it was still working!!
Let me stress at this point how important it is to be able to quantify the actions on your site. Without the ability to count visitors I wouldn’t have known how many or how few visitors I was getting and I wouldn’t know whether to happy or sad. Counts are not a luxury they are essential for any degree of success. Over time may different counts of varying sophistication will be added to your site, and the results should monitored carefully.
Evolve and Improve
Then I discovered something that drove me forward and out of the gloom. There is a direct relationship between the actions you take and the number of visits to your site. This means that you have an instant feedback method that is very visible. If your website is green and you paint it red, then you can see if it was good move or not. If the number of visits falls, then paint it green again, and quickly! This gave me a motivation. I wanted to see the number of visits rise. When it moved from 2 to 25 overnight and I was delirious. I went out and celebrated!
Making a Profit
Then I realised the next major lesson, visits don’t equal money! If I had actually calculated how much it had cost to get those 25 visitors to come to my site I would have given up there and then. Luckily there is such a thing as economy of scale and this will play an important part in the growth of your website. In other words, when you start out your overheads are divided over those visitors who generate income for you. So if my 25 visitors had generated a total of $100, then each visitor is generating an average of $4. But if my costs are $250 then I am actually losing $6 per visitor. This is calculated by taking the $4 earning per visitor and deducting it from the $10 costs per visitor ($250/25).
However if I can get to 75 visitors to come to my site and they maintain their average of $4 earnings per customer, then I will earn a total of $300, with the same costs, I am now making $2 profit from every visitor. It is important to know what your costs and earnings are, as this will allow you optimise your profits and earn the most you can.
Getting the Show on the Road
It is remarkably easy to put a web page up on the internet, just follow these steps:
Step 1) Register a Domain Name
Find a web site name, your domain. This is like your shop name so take some time and care in choosing it.- If you can find a .com name that you like then this is still the best choice, but other endings are now just as accepted. In fact some like .info may actually be a better choice, depending on what you intend to use the site for. For help in choosing and registering your domain name click here.
Step 2) Design Your Web Page
I am assuming that you now have a domain name registered and a place to host it. Now you need to think about content. You need to have loaded some software onto your pc that will allow you to change the content of your web page and then to publish it onto your server. Your server is where your domain name is registered, and it is here that visitors will come to see your page, so every time you change it on your pc, you must publish it back to your server so it can be seen. I say your server but is highly probable tht you are paying some profession organisation a small monthly sum to look after your server for you.
The software that have selected should allow you to edit your page with the minimum of programming skill. If you need some help with the selection of the software then click here.
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